7 unchanged sentences
We also carefully monitor the performance of the loans, as well as external factors that may affect their value.
+Added: As a result of the NewPoint acquisition on July 1, 2025, and the operation of our agency business, we will be subject to additional credit risk as a result of our obligations under the risk sharing requirements applicable to some agency mortgage loans.
Capital Market Risk
13 unchanged sentences
As of December 31, 2025 and 2024, our portfolio included 162 and 149 variable rate investments, respectively, based on LIBOR and SOFR (or “indexing rates”) for various terms.
−Removed: As of June 2023, the Company has fully transitioned all loans formerly on LIBOR indexing rates to SOFR indexing rates.
+Added: As of June 2023, the Company fully transitioned all loans formerly on LIBOR indexing rates to SOFR indexing rates.
The following table quantifies the potential changes in interest income net of interest expense should interest rates increase by 50 basis points or decrease by 50 or 100 basis points, assuming that our current balance sheet was to remain constant and no actions were taken to alter our existing interest rate sensitivity.
6 unchanged sentences
(+) 50 Basis Points 0.24 % 2.38 %
+Added: Our Agency Business originates, sells and services a range of multifamily finance products with Fannie Mae, Freddie Mac, and HUD.
+Added: Our loans held-for-sale to these agencies are not currently exposed to interest rate risk during the loan commitment, closing and delivery process.
+Added: The sale or placement of each loan to an investor is negotiated prior to closing on the loan with the borrower, and the sale or placement is generally effectuated within 60 days of closing.
+Added: The coupon rate for the loan is set after we establish the interest rate with the investor.
+Added: The fair value of our MSRs is subject to market risk since a significant driver of the fair value of these assets will be the discount rates which are influenced by interest rates and conditional prepayment rates ("CPR").
+Added: A 100 basis point increase in the weighted average discount rate would decrease the fair value of our MSRs by $7.4 million at December 31, 2025, while a 100 basis point decrease would increase the fair value by $7.9 million.
Real Estate Risk
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.