Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 38

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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500 3.64 %5.01 %Total$53,050 3.61 %5.04 %

Certain of the Company’s derivative contracts are subject to International Swaps and Derivatives Association Master Agreements or other similar agreements which may contain provisions that grant counterparties certain rights with respect to the applicable agreement upon the occurrence of certain events, including a decline in the Company's stockholders’ equity (as defined in the respective agreements) in excess of specified thresholds or dollar amounts over set periods of time, the Company’s failure to maintain its REIT status, the Company’s failure to comply with limits on the amount of leverage and the Company’s stock being delisted from Nasdaq. 

37

11.      Mortgage Servicing RightsThe Company owned MSRs as of March 31, 2025 and December 31, 2024 resulting from distributions of MSRs received from its equity investment in an entity that originates residential loans (see Note 6) and purchases of MSRs.  The Company's MSRs are associated with business purpose loans, are reported at fair value pursuant to the fair value option election (see Note 17) and are included in other assets in the accompanying condensed consolidated balance sheets.  The primary risks associated with the Company's MSRs are changes in interest rates and prepayment speeds.The following table presents activity related to MSRs for the three months ended March 31, 2025 (dollar amounts in thousands).  The Company did not have MSRs during the three months ended March 31, 2024.For the Three Months Ended March 31, 2025Balance at beginning of period$21,003 Changes in fair value due to:Changes in valuation inputs or assumptions used in valuation model(347)Other changes in fair value, including runoff(359)Balance at end of period$20,297 The following table presents the components of servicing fee income recognized during the three months ended March 31, 2025 (dollar amounts in thousands).  Servicing fee income is included in other income (loss) on the accompanying condensed consolidated statements of operations.For the Three Months Ended March 31, 2025Servicing fees$1,249 Prepayment fees680 Ancillary and other fee income (1)50 Servicing fee income$1,979 (1)Includes default interest and late fee collections.The Company recognized subservicing fee expenses in the amount of $0.2 million related to MSRs during