Company: NLY-PF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036724
Chunk: 105

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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, these activities are carried out by duly licensed subservicers who perform substantially all servicing functions for the loans underlying the MSR. The Company generally intends to hold the MSR as investments and elected to account for all of its investments in MSR at fair value. As such, they are recognized at fair value in the accompanying Consolidated Statements of Financial Condition with changes in the estimated fair value presented as a component of Net gains (losses) on investments and other in the Consolidated Statements of Comprehensive Income (Loss).

The following table presents activity related to MSR for the three and six months ended June 30, 2025 and 2024:   Mortgage Servicing RightsThree Months EndedSix Months EndedJune 30, 2025June 30, 2024June 30, 2025June 30, 2024 (dollars in thousands)Fair value, beginning of period$3,272,902 $2,651,279 $2,909,134 $2,122,196 Purchases (1)39,369 120,896 436,031 636,627 Sales— (1,068)— (1,068)Change in fair value due to:Changes in valuation inputs or assumptions (2)28,464 59,902 41,232 106,038 Other changes, including realization of expected cash flows(59,545)(45,395)(105,207)(78,179)Fair value, end of period$3,281,190 $2,785,614 $3,281,190 $2,785,614 (1) Includes adjustments to original purchase price from early payoffs, defaults, or loans that were delivered but were deemed to not be acceptable.(2) Principally represents changes in discount rates and prepayment speed inputs used in valuation model, primarily due to changes in interest rates.

8. VARIABLE INTEREST ENTITIESThe Company’s exposure to the obligations of its VIEs is generally limited to the Company’s investment in the VIEs of $2.7 billion at June 30, 2025. Assets of the VIEs may only be used to settle obligations of the VIEs. Creditors of the VIEs have no recourse to the general credit of the Company. The Company is not contractually required to provide and has not provided any form of financial support to the VIEs. No gains or losses were recognized upon consolidation