The Company provides current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Company.

In the normal course of business the Company may also enter into contracts that contain a variety of representations, warranties, and general indemnifications. The Company's maximum exposure under these arrangements, including future claims that may be made against the Company that have not yet occurred, is unknown. The Company has not incurred any costs to defend lawsuits or settle claims related to these indemnification agreements. As of both December 31, 2023 and December 31, 2022, the Company has no liabilities recorded for these agreements.

The Company's maximum risk of loss from credit events on its securities (excluding Agency securities, which are guaranteed by the issuing government agency or government-sponsored enterprise), loans, and investments in unconsolidated entities is limited to the amount paid for such investment.

In connection with certain of the Company's investments in residential mortgage loans, the Company has unfunded commitments in the amount of $288.0 million and $175.7 million as of December 31, 2023 and December 31, 2022, respectively.

As described in Note 16, the Company is party to a flow mortgage loan purchase and sale agreement with a mortgage loan originator. The Company has entered into agreements whereby it guarantees the performance of this mortgage loan originator under master repurchase agreements. The Company's maximum guarantees were capped at $15.0 million as of both December 31, 2023 and December 31, 2022 and there were no such borrowings outstanding as of either date. The Company's obligations under these arrangements are deemed to be guarantees under ASC 460-10. The Company has elected the FVO for

its guarantees, which are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. As of December 31, 2023 and December 31, 2022, the estimated fair value of such guarantee was insignificant.

The Company is party to a flow mortgage loan purchase and sale agreement with a mortgage loan originator in which it holds an equity investment and as well as an investment in the Convertible Note, as discussed in Note 16. In addition, in May 2021, the Company committed to purchase $650.0 million of eligible residential mortgage loans from this originator. As of December 31, 2022, the Company had unfunded commitments related to such investments in the amount of $181.4 million; no unfunded commitments remained as of December 31, 2023.

As described in Note 16, the Company entered into various secured promissory notes with certain loan originators in which it also holds an equity interest. As of December 31, 2023 and December 31, 2022, the Company had unfunded commitments related to such secured promissory notes of $5.5 million and $6.5 million, respectively.

The Company has entered into agreements whereby it guarantees the performance of a securitization-related risk retention vehicle, in which it has an equity investment, under a promissory note. The Company's maximum guarantees were capped at $15.5 million. As of December 31, 2023 and December 31, 2022, the amount of the promissory note outstanding, for which the Company provided a guarantee, was $1.0 million and $10.8 million, respectively.

As discussed in Note 16, under the terms of the RTL Commitment Agreement, the Company committed to purchase at least $500 million of eligible loans originated by the RTL Originator. As of December 31, 2023, the Company has unfunded commitments under the RTL Commitment Agreement of $475.4 million. The Company also guarantees up to $50 million of warehouse financing provided by a third-party lender to the RTL Originator; as of December 31, 2023, the RTL Originator had $9.5 million warehouse financing outstanding.

The Company has investments in certain corporate loans whereby the borrowers can request additional funds under the respective agreements. As of December 31, 2023 and December 31, 2022, the Company had unfunded commitments related to such investments in the amount of $3.0 million and $4.2 million, respectively.

The Company has extended a line of credit whereby the borrower can draw funds up to $1.0 million. As of both December 31, 2023 and December 31, 2022, the Company had unfunded commitments related to such line of credit in the amount of $0.9 million.

The Company enters into loan commitment arrangements with borrowers who have applied for reverse mortgage loans that have not yet closed. As of December 31, 2023 and December 31, 2022, the fair value of such commitments was $2.6 million and $3.1 million, respectively, which is reflected in Loan commitments on the Consolidated Balance Sheet.

The Company is required to fund further borrower advances for loans where the borrower has not fully drawn down all of the HECM loan proceeds available to them. As of December 31, 2023 and December 31, 2022, the Company had unfunded commitments related to such HECM loans of $1.9 billion and $1.7 billion, respectively. Additionally, the Company has the obligation to advance various other HECM loan related amounts such as the borrowers' monthly insurance premiums to FHA and property taxes.

As detailed in Note 13, the Company is required to purchase from HMBS pools any HECM loan that has reached the MCA. For active loans, the Company subsequently assigns such loan to HUD, which then reimburses the Company up to the MCA. For inactive loans, following resolution of the loan, the Company files a claim with HUD for any recoverable remaining principal and advance balances.

Longbridge, a consolidated subsidiary of the Company, leases office space and office equipment, under various operating lease arrangements, which expire on various dates through December 2029. Additionally, as a result of the Arlington Merger, the Company assumed the remaining lease for Arlington's principal office space which expires in October 2024. As discussed in Note 2, the Company makes various assumptions and estimates in recognizing the operating lease ROU assets and corresponding lease liabilities, including the expected lease term, incremental borrowing rate, and identifying lease and non-lease components. Total expense under all operating leases amounted to $1.2 million and $0.2 million for the year ended December 31, 2023 and 2022, respectively, and is included in Other expenses on the Consolidated Statement of Operations.


($ in thousands)	December 31, 2023			December 31, 2022
ROU assets	$	3,279		$	3,838
Lease liabilities	3,524			4,058
Weighted average remaining term (in years)	5.1			5.8
Weighted average discount rate	7.31		%	7.20		%


	Minimum Payments
	(In thousands)
Year ended December 31, 2024	$	957
Year ended December 31, 2025	816
Year ended December 31, 2026	802
Year ended December 31, 2027	695
Year ended December 31, 2028	473
Thereafter	481
Total	4,224
Less: implied interest payments	(700)
Lease Liability	$	3,524