Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 103

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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 Stochastic ModelMonthly Asset Growth,Credit Spread(7.4)% to 14.5% (3.6%)  2.9% to 2.9% (2.9%) June 30, 2025(Dollars in thousands)Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)1Available-for-sale securities: Non-Agency MBS$15,569 Discounted Cash FlowProjected Constant Prepayment Rate,Projected Constant Default Rate,Projected Loss Severity,Discount Rate over SOFR Swaps,Credit Enhancement2.5 to 30.0% (22.4%)1.5 to 11.9% (8.7%)35.0 to 68.9% (43.4%)2.5 to 4.1% (2.7%)0.0 to 99.0% (22.8%)Servicing Rights$27,218 Discounted Cash FlowProjected Constant Prepayment Rate,Life (in years),Discount Rate5.2 to 26.6% (9.7%)2.5 to 12.8 (9.3) 9.5 to 11.2% (9.8%)1 The weighted average for Available-for-sale securities: Non-agency MBS is based on the relative fair value of the securities, for Servicing Rights is based on the relative unpaid principal of the loans being serviced and for Accounts payable and other liabilities—Contingent Consideration.is based on annual projected consideration.For non-agency mortgage-backed securities, a significant increase (decrease) in default rate, loss severity (potentially offset by the level of credit enhancement) or discount rate in isolation would result in a significantly lower (higher) fair value measurement, while a significant increase in the voluntary prepayment rate would result in a significant increase in fair value if the security is valued below par value, or a significant decrease in fair value if the security is valued above par value. Generally, a change in the assumptions used for the default rate is accompanied by a directionally opposite change in the assumption used for the voluntary prepayment rate. For servicing rights, significant increases in the voluntary prepayment rate or discount rate in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the voluntary prepayment rate is accompanied by a directionally opposite change in expected life.For the Contingent Consideration,