Impac Mortgage (IMPM) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,220,357
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001000298
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 24,115	$ 23,200
Restricted cash	13,057	6,989
Mortgage loans held-for-sale	1,038,942	353,601
Mortgage servicing rights	40,827	64,728
Securitized mortgage trust assets	2,795,117	3,165,590
Other assets	63,954	33,835
Total assets	3,976,012	3,647,943
LIABILITIES
Warehouse borrowings	971,595	284,137
Convertible notes, net	24,993	24,985
Long-term debt	43,577	44,856
Securitized mortgage trust liabilities	2,777,872	3,148,215
Other liabilities	53,680	35,575
Total liabilities	3,871,717	3,537,768
Commitments and contingencies (See Note 12)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 21,220,357 and 21,117,006 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	212	211
Additional paid-in capital	1,235,971	1,235,108
Accumulated other comprehensive earnings	24,433	23,877
Net accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Retained deficit	(333,822)	(326,522)
Net accumulated deficit	(1,156,342)	(1,149,042)
Total stockholders’ equity	104,295	110,175
Total liabilities and stockholders’ equity	3,976,012	3,647,943
Series A-1 junior participating preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock
Series B 9.375% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	7	7
Series C 9.125% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	$ 14	$ 14

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	21,220,357	21,117,006
Common stock, shares outstanding	21,220,357	21,117,006
Series A-1 junior participating preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B 9.375% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.375%	9.375%
Preferred stock, liquidation value (in dollars)	$ 32,240	$ 32,240
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	665,592	665,592
Preferred stock, shares outstanding	665,592	665,592
Series C 9.125% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.125%	9.125%
Preferred stock, liquidation value (in dollars)	$ 35,127	$ 35,127
Preferred stock, shares authorized	5,500,000	5,500,000
Preferred stock, shares issued	1,405,086	1,405,086
Preferred stock, shares outstanding	1,405,086	1,405,086

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Gain on sale of loans, net	$ 31,073	$ 13,673	$ 72,759	$ 53,896
Servicing fees, net	3,465	10,124	9,970	29,445
(Loss) gain on mortgage servicing rights, net	(9,755)	(5,192)	(25,264)	2,682
Real estate services fees, net	921	711	2,534	3,134
Other	71	71	258	278
Total revenues	25,775	19,387	60,257	89,435
Expenses:
Personnel expense	18,725	16,061	47,186	50,481
Business promotion	1,292	4,351	6,228	23,082
General, administrative and other	5,619	7,897	16,126	27,018
Intangible asset impairment		4,897		18,347
Goodwill impairment		29,925		104,587
Total expenses	25,636	63,131	69,540	223,515
Operating income (loss)	139	(43,744)	(9,283)	(134,080)
Other income (expense):
Interest income	39,492	45,888	127,807	145,103
Interest expense	(37,002)	(45,477)	(120,978)	(143,126)
Change in fair value of long-term debt	304	(785)	958	697
Change in fair value of net trust assets, including trust REO losses	(1,724)	(1,315)	(5,866)	(3,236)
Total other income (loss), net	1,070	(1,689)	1,921	(562)
Earnings (loss) before income taxes	1,209	(45,433)	(7,362)	(134,642)
Income tax (benefit) expense	(230)	12	(62)	4,328
Net earnings (loss)	1,439	(45,445)	(7,300)	(138,970)
Other comprehensive earnings (loss):
Change in fair value of mortgage-backed securities	107		120
Change in fair value of instrument specific credit risk of long-term debt	72	25	436	(1,940)
Total comprehensive earnings (loss)	$ 1,618	$ (45,420)	$ (6,744)	$ (140,910)
Net earnings (loss) per common share:
Basic (in dollars per share)	$ 0.07	$ (2.16)	$ (0.34)	$ (6.62)
Diluted (in dollars per share)	$ 0.07	$ (2.16)	$ (0.34)	$ (6.62)
Real Estate
Revenues:
Real estate services fees, net	$ 921	$ 711	$ 2,534	$ 3,134

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends Declared	Retained Deficit	Accumulated Other Comprehensive Earnings, net of tax	Total
Balance at Dec. 31, 2017	$ 21	$ 209	$ 1,233,704	$ (822,520)	$ (146,267)		$ 265,147
Balance (in shares) at Dec. 31, 2017	2,070,678	20,949,679
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	15				16
Proceeds and tax benefit from exercise of stock options (in shares)		3,000
Stock based compensation			430				430
Other comprehensive earnings (loss)						$ (1,440)	(1,440)
Net earnings (loss)					3,873		3,873
Balance at Mar. 31, 2018	$ 21	$ 210	1,234,149	(822,520)	(177,239)	25,578	260,199
Balance (in shares) at Mar. 31, 2018	2,070,678	20,952,679
Balance at Dec. 31, 2017	$ 21	$ 209	1,233,704	(822,520)	(146,267)		265,147
Balance (in shares) at Dec. 31, 2017	2,070,678	20,949,679
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)							(138,970)
Balance at Sep. 30, 2018	$ 21	$ 211	1,234,946	(822,520)	(320,082)	25,078	117,654
Balance (in shares) at Sep. 30, 2018	2,070,678	21,110,506
Increase (Decrease) in Stockholders' Equity
Reclassification and adjustment related to adoption of new standard | ASU 2016-01					(27,018)	27,018
Reclassification and adjustment related to adoption of new standard | ASU 2016-16					(7,827)		(7,827)
Balance at Mar. 31, 2018	$ 21	$ 210	1,234,149	(822,520)	(177,239)	25,578	260,199
Balance (in shares) at Mar. 31, 2018	2,070,678	20,952,679
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options			303				303
Proceeds and tax benefit from exercise of stock options (in shares)		73,713
Stock based compensation			170				170
Other comprehensive earnings (loss)						(525)	(525)
Net earnings (loss)					(97,398)		(97,398)
Balance at Jun. 30, 2018	$ 21	$ 210	1,234,622	(822,520)	(274,637)	25,053	162,749
Balance (in shares) at Jun. 30, 2018	2,070,678	21,026,392
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options			113				113
Proceeds and tax benefit from exercise of stock options (in shares)		21,197
Issuance of deferred stock		$ 1					1
Issuance of deferred stock (in shares)		62,917
Stock based compensation			211				211
Other comprehensive earnings (loss)						25	25
Net earnings (loss)					(45,445)		(45,445)
Balance at Sep. 30, 2018	$ 21	$ 211	1,234,946	(822,520)	(320,082)	25,078	117,654
Balance (in shares) at Sep. 30, 2018	2,070,678	21,110,506
Balance at Dec. 31, 2018	$ 21	$ 211	1,235,108	(822,520)	(326,522)	23,877	110,175
Balance (in shares) at Dec. 31, 2018	2,070,678	21,117,006
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	162				163
Proceeds and tax benefit from exercise of stock options (in shares)		64,351
Stock based compensation			107				107
Other comprehensive earnings (loss)						117	117
Net earnings (loss)					(12,612)		(12,612)
Balance at Mar. 31, 2019	$ 21	$ 212	1,235,377	(822,520)	(339,134)	23,994	97,950
Balance (in shares) at Mar. 31, 2019	2,070,678	21,181,357
Balance at Dec. 31, 2018	$ 21	$ 211	1,235,108	(822,520)	(326,522)	23,877	110,175
Balance (in shares) at Dec. 31, 2018	2,070,678	21,117,006
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)							(7,300)
Balance at Sep. 30, 2019	$ 21	$ 212	1,235,971	(822,520)	(333,822)	24,433	104,295
Balance (in shares) at Sep. 30, 2019	2,070,678	21,220,357
Balance at Mar. 31, 2019	$ 21	$ 212	1,235,377	(822,520)	(339,134)	23,994	97,950
Balance (in shares) at Mar. 31, 2019	2,070,678	21,181,357
Increase (Decrease) in Stockholders' Equity
Stock based compensation			206				206
Other comprehensive earnings (loss)						260	260
Net earnings (loss)					3,873		3,873
Balance at Jun. 30, 2019	$ 21	$ 212	1,235,583	(822,520)	(335,261)	24,254	102,289
Balance (in shares) at Jun. 30, 2019	2,070,678	21,181,357
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options			182				182
Proceeds and tax benefit from exercise of stock options (in shares)		39,000
Stock based compensation			206				206
Other comprehensive earnings (loss)						179	179
Net earnings (loss)					1,439		1,439
Balance at Sep. 30, 2019	$ 21	$ 212	$ 1,235,971	$ (822,520)	$ (333,822)	$ 24,433	$ 104,295
Balance (in shares) at Sep. 30, 2019	2,070,678	21,220,357

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,300)	$ (138,970)
Gain on sale of mortgage servicing rights	(864)
Change in fair value of mortgage servicing rights	26,128	(4,127)
Gain on sale of mortgage loans	(52,000)	(71,854)
Change in fair value of mortgage loans held-for-sale	(17,609)	12,182
Change in fair value of derivatives lending, net	(6,768)	425
Provision for repurchases	3,618	5,435
Origination of mortgage loans held-for-sale	(3,039,185)	(3,207,525)
Sale and principal reduction on mortgage loans held-for-sale	2,421,231	3,468,824
Loss from trust REO	3,848	46
Change in fair value of net trust assets, excluding trust REO	2,018	3,190
Change in fair value of long-term debt	(958)	(697)
Accretion of interest income and expense	18,880	27,126
Amortization of intangible and other assets	429	3,284
Amortization of debt issuance costs and discount on note payable	14	62
Stock-based compensation	519	810
Impairment of goodwill		104,587
Impairment of intangible assets		18,347
Change in deferred tax assets, net		4,315
Net change in other assets	6,256	(5,558)
Net change in other liabilities	(5,776)	(3,352)
Net cash (used in) provided by operating activities	(647,519)	216,550
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	432,969	406,456
Finance receivable advances to customers		(401,357)
Repayments of finance receivables		442,403
Purchase of premises and equipment	(654)	(670)
Purchase of investment securities available-for-sale		(500)
Purchase of mortgage-backed securities	(10,346)
Proceeds from the sale of mortgage-backed securities	1,021
Proceeds from the sale of trust REO	15,285	15,992
Net cash provided by investing activities	438,275	462,324
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of MSR financing	(3,000)	(50,133)
Borrowings under MSR financing	3,000	77,000
Repayment of warehouse borrowings	(2,192,940)	(3,296,280)
Borrowings under warehouse agreements	2,880,398	3,036,069
Payment of acquisition related contingent consideration		(554)
Repayment of securitized mortgage borrowings	(471,436)	(450,555)
Principal payments on capital lease	(81)
Principal payments on capital lease		(154)
Tax payments on stock based compensation awards	(59)	(143)
Issuance of deferred stock units		1
Proceeds from exercise of stock options	345	433
Net cash provided by (used in) financing activities	216,227	(684,316)
Net change in cash, cash equivalents and restricted cash	6,983	(5,442)
Cash, cash equivalents and restricted cash at beginning of period	30,189	39,099
Cash, cash equivalents and restricted cash at end of period	37,172	33,657
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral to trust REO	21,379	17,089
Mortgage servicing rights retained from issuance of mortgage backed securities and loan sales	2,222	22,473
Initial recognition of operating lease right of use assets (net of $3.8 million of deferred rent)	19,694
Initial recognition of operating lease liabilities	$ 23,447
Common stock issued upon issuance of deferred stock units		$ 606

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019
CONSOLIDATED STATEMENTS OF CASH FLOWS
Deferred rent liability	$ 3.8	$ 3.8

Summary of Business and Financi

Summary of Business and Financial Statement Presentation	9 Months Ended
	Sep. 30, 2019
Summary of Business and Financial Statement Presentation
Summary of Business and Financial Statement Presentation	IMPAC MORTGAGE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, except share and per share data or as otherwise indicated) Note 1.—Summary of Business and Financial Statement Presentation Business Summary Impac Mortgage Holdings, Inc. (the Company or IMH) is a financial services company incorporated in Maryland with the following direct and indirect wholly-owned subsidiaries: Integrated Real Estate Service Corporation (IRES), Impac Mortgage Corp. (IMC), IMH Assets Corp. (IMH Assets) and Impac Funding Corporation (IFC). The Company’s operations include the mortgage lending operations and real estate services conducted by IRES and IMC and the long-term mortgage portfolio (residual interests in securitizations reflected as net trust assets and liabilities in the consolidated balance sheets) conducted by IMH. IMC’s mortgage lending operations include the activities of its division, CashCall Mortgage (CCM). Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the United States Securities and Exchange Commission (SEC). All significant intercompany balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage-backed securities, mortgage servicing rights, mortgage loans held-for-sale and derivative instruments, including interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions. Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “ Leases (Topic 842) ”, and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and In February 2018, the FASB issued ASU 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive earnings (AOCE) to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act) which was signed into law in the fourth quarter of 2017 . The ASU is effective in years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) .” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “ Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging , and Topic 825, Financial Instruments (ASU 2019-04) , which provided certain improvements to ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) and ASU 2016-13. As the Company adopted ASU 2016-01 on January 1, 2018, the improvements in ASU 2019-04 are effective in the first quarter of 2020. Early adoption is permitted. The Company expects to adopt ASU 2016-13 in the first quarter of 2023, as described above, and the improvements in ASU 2019-04 will be adopted concurrently. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Mortgage Loans Held-for-Sale

Mortgage Loans Held-for-Sale	9 Months Ended
	Sep. 30, 2019
Mortgage Loans Held-for-Sale
Mortgage Loans Held-for-Sale	Note 2.—Mortgage Loans Held-for-Sale A summary of the unpaid principal balance (UPB) of mortgage loans held-for-sale by type is presented below: September 30, December 31, 2019 2018 Government (1) $ 50,157 $ 39,522 Conventional (2) 779,174 53,148 Non-qualified mortgages (NonQM) 187,562 256,491 Fair value adjustment (3) 22,049 4,440 Total mortgage loans held-for-sale $ 1,038,942 $ 353,601 (1) Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA). (2) Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC). (3) Changes in fair value are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive earnings (loss). At September 30, 2019 and December 31, 2018, the Company had $3.4 million and $2.3 million, respectively, in UPB of mortgage loans held-for-sale that were in nonaccrual status as the loans were 90 days or more delinquent. The carrying value of these nonaccrual loans at September 30, 2019 and December 31, 2018 were $3.1 million and $1.8 million, respectively. Gain on mortgage loans held-for-sale (LHFS), included in gain on sale of loans, net in the consolidated statements of operations and comprehensive earnings (loss), is comprised of the following for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Gain on sale of mortgage loans $ 32,003 $ 27,949 $ 73,433 $ 85,928 Premium from servicing retained loan sales 223 5,717 2,222 22,473 Unrealized gains (losses) from derivative financial instruments 2,202 324 6,768 (341) Realized (losses) gains from derivative financial instruments (4,225) (537) (7,579) 11,281 Mark to market gain (loss) on LHFS 9,275 (6,901) 17,609 (12,182) Direct origination expenses, net (7,947) (9,038) (16,076) (47,828) Provision for repurchases (458) (3,841) (3,618) (5,435) Total gain on sale of loans, net $ 31,073 $ 13,673 $ 72,759 $ 53,896

Mortgage Servicing Rights

Mortgage Servicing Rights	9 Months Ended
	Sep. 30, 2019
Mortgage Servicing Rights
Mortgage Servicing Rights	Note 3.—Mortgage Servicing Rights The Company retains mortgage servicing rights (MSRs) from its sales and securitization of certain mortgage loans or as a result of purchase transactions. MSRs are reported at fair value based on the expected income derived from the net projected cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the UPB of the underlying mortgage loans. The servicing fees are collected from the monthly payments made by the mortgagors, or if delinquent, when the underlying real estate is foreclosed upon and liquidated. The Company may receive other remuneration from rights to various mortgagor-contracted fees, such as late charges, collateral reconveyance charges and nonsufficient fund fees, and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments. The following table summarizes the activity of MSRs for the nine months ended September 30, 2019 and year ended December 31, 2018: September 30, December 31, 2019 2018 Balance at beginning of period $ 64,728 $ 154,405 Additions from servicing retained loan sales 2,222 24,879 Reductions from bulk sales — (118,313) Other 5 — Changes in fair value (1) (26,128) 3,757 Fair value of MSRs at end of period $ 40,827 $ 64,728 (1) Changes in fair value are included within (loss) gain on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive earnings (loss). At September 30, 2019 and December 31, 2018, the outstanding principal balance of the mortgage servicing portfolio was comprised of the following: September 30, December 31, 2019 2018 Government insured $ 106,120 $ 51,157 Conventional 5,267,939 6,165,129 NonQM — 1,848 Total loans serviced (1) $ 5,374,059 $ 6,218,134 (1) No collateral was pledged as part of the MSR Financing at September 30, 2019 or December 31, 2018. (See Note 6.) The table below illustrates hypothetical changes in fair values of MSRs caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 8.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs. September 30, December 31, Mortgage Servicing Rights Sensitivity Analysis 2019 2018 Fair value of MSRs $ 40,827 $ 64,728 Prepayment Speed: Decrease in fair value from 10% adverse change (2,170) (1,419) Decrease in fair value from 20% adverse change (4,190) (2,918) Decrease in fair value from 30% adverse change (6,067) (4,475) Discount Rate: Decrease in fair value from 10% adverse change (1,216) (2,345) Decrease in fair value from 20% adverse change (2,362) (4,532) Decrease in fair value from 30% adverse change (3,443) (6,575) Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those displayed above. (Loss) gain on mortgage servicing rights, net is comprised of the following for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Change in fair value of mortgage servicing rights $ (9,755) $ (5,445) $ (26,128) $ 4,127 Gain on sale of mortgage servicing rights — — 864 — Realized and unrealized gains (losses) from hedging instruments — 253 — (1,445) (Loss) gain on mortgage servicing rights, net $ (9,755) $ (5,192) $ (25,264) $ 2,682 Servicing fees, net is comprised of the following for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Contractual servicing fees $ 3,723 $ 11,458 $ 11,803 $ 34,322 Late and ancillary fees 45 182 137 500 Subservicing and other costs (303) (1,516) (1,970) (5,377) Servicing fees, net $ 3,465 $ 10,124 $ 9,970 $ 29,445

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	Note 4.—Leases On January 1, 2019, the Company adopted Topic 842 using the modified retrospective transition approach and elected the practical expedients transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million and are included in other assets and other liabilities, respectively, in the accompanying consolidated balance sheets. The Company has four operating leases for office space and certain office equipment under long‑term leases expiring at various dates through 2024. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. When the Company cannot readily determine the rate implicit in the lease , the Company determines its incremental borrowing rate by using the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term . As a practical expedient permitted under Topic 842, the Company has elected to account for the lease and non-lease components as a single lease component for all leases of which it is the lessee. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. For operating leases existing prior to January 1, 2019, the rate used for the remaining lease term was determined as of the date of adoption. The Company had no financing leases at September 30, 2019. During the three and nine months ended September 30, 2019, cash paid for operating leases was $1.2 million and $3.4 million, respectively, while total operating lease expense was $1.1 million and $3.0 million, respectively. Operating lease expense includes short-term leases and sublease income, both of which are immaterial. The following table presents the operating lease balances within the consolidated balance sheets, weighted average remaining lease term, and weighted average discount rates related to the Company’s operating leases as of September 30, 2019: September 30, Lease Assets and Liabilities Classification 2019 Assets Operating lease ROU assets Other assets $ 18,131 Liabilities Operating lease liabilities Other liabilities $ 21,653 Weighted average remaining lease term Weighted average discount rate % The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2019 : Remainder of 2019 $ 1,325 Year 2020 5,138 Year 2021 4,593 Year 2022 4,721 Year 2023 4,867 Year 2024 3,729 Total lease commitments 24,373 Less: imputed interest (2,720) Total operating lease liability $ 21,653 As of September 30, 2019, the Company had no additional operating or finance leases that had not yet commenced.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets.
Goodwill and Intangible Assets	Note 5.—Goodwill and Intangible Assets In the first quarter of 2015, the Company acquired CCM and recorded $104.6 million of goodwill and intangible assets of $33.1 million. The Company reviewed its goodwill and intangible assets for impairment at least annually as of December 31 or more frequently if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. As previously disclosed in our quarterly and annual reports, in the second and third quarters of 2018, the Company performed impairment tests and determined that the goodwill and intangible assets were impaired. As a result, an impairment charge of $74.7 million related to goodwill and $13.5 million related to intangible assets was recorded during the quarter ended June 30, 2018, and an additional $29.9 million and $4.9 million, respectively, was recorded during the quarter ended September 30, 2018. At December 31, 2018 and September 30, 2019, the Company had no goodwill or intangible assets remaining related to the CCM acquisition. Refer to Note 5.-Goodwill and Intangible Assets of the “Notes to Consolidated Financial Statements” on IMH’s report on Form 10-K for the year ended December 31, 2018 for a full description of the prior impairment.

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt
Debt	Note 6.—Debt Warehouse Borrowings The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are uncommitted facilities used to fund, and are secured by, residential mortgage loans from the time of funding until the time of settlement when sold to the investor. In accordance with the terms of the Master Repurchase Agreements, the Company’s subsidiaries are required to maintain cash balances with the lender as additional collateral for the borrowings, which are included in restricted cash in the accompanying consolidated balance sheets. The following table presents certain information on warehouse borrowings and related accrued interest for the periods indicated: Maximum Balance Outstanding at Borrowing September 30, December 31, Capacity 2019 2018 Maturity Date Short-term borrowings: Repurchase agreement 1 $ 75,000 $ 10,406 $ 84,897 April 1, 2020 Repurchase agreement 2 50,000 48,643 47,108 May 28, 2020 Repurchase agreement 3 425,000 209,955 35,920 January 17, 2020 Repurchase agreement 4 200,000 136,912 80,141 July 30, 2020 Repurchase agreement 5 (1) 175,000 133,238 23,370 March 31, 2020 Repurchase agreement 6 600,000 432,441 12,701 June 25, 2020 Total warehouse borrowings $ 1,525,000 $ 971,595 $ 284,137 (1) In October 2019, the maximum borrowing capacity was increased to $300.0 million. MSR Financings In February 2018, IMC (Borrower) amended the Line of Credit Promissory Note (FHLMC and GNMA Financing) originally entered into in August 2017, increasing the maximum borrowing capacity of the revolving line of credit to $50.0 million and extending the term to January 31, 2019 . In May 2018, the agreement was amended increasing the maximum borrowing capacity of the revolving line of credit to $60.0 million, increasing the borrowing capacity up to 60% of the fair market value of the pledged mortgage servicing rights and reducing the interest rate per annum to one-month LIBOR plus 3.0%. As part of the May 2018 amendment, the obligations under the Line of Credit are secured by FHLMC and GNMA pledged mortgage servicing rights (subject to an acknowledgement agreement) and is guaranteed by IRES. In April 2019, the maturity of the line was extended until January 31, 2020. At September 30, 2019, there were no outstanding borrowings under the FHLMC and GNMA Financing and approximately $24.0 million was available for borrowing. Convertible Notes In May 2015, the Company issued $25.0 million Convertible Promissory Notes (2015 Convertible Notes). The 2015 Convertible Notes mature on or before May 9, 2020 and accrue interest at a rate of 7.5% per annum, to be paid quarterly. Transaction costs of approximately $50 thousand are being deferred and amortized over the life of the 2015 Convertible Notes. Noteholders may convert all or a portion of the outstanding principal amount of the 2015 Convertible Notes into shares of the Company’s common stock (Conversion Shares) at a rate of $21.50 per share, subject to adjustment for stock splits and dividends (Conversion Price). The Company has the right to convert the entire outstanding principal of the 2015 Convertible Notes into Conversion Shares at the Conversion Price if the market price per share of the common stock, as measured by the average volume-weighted closing stock price per share of the common stock on the NYSE AMERICAN (or any other U.S. national securities exchange then serving as the principal such exchange on which the shares of common stock are listed), reaches the level of $30.10 for any twenty (20) trading days in any period of thirty (30) consecutive trading days after the Closing Date. Upon conversion of the 2015 Convertible Notes by the Company, the entire amount of accrued and unpaid interest (and all other amounts owing) under the 2015 Convertible Notes are immediately due and payable. To the extent the Company pays any cash dividends on its shares of common stock prior to conversion of the 2015 Convertible Notes, upon conversion of the 2015 Convertible Notes, the Noteholders will also receive such dividends on an as-converted basis of the 2015 Convertible Notes less the amount of interest paid by the Company prior to such dividend. Long-term Debt Junior Subordinated Notes The Company carries its Junior Subordinated Notes at estimated fair value as more fully described in Note 8.—Fair Value of Financial Instruments. The following table shows the remaining principal balance and fair value of Junior Subordinated Notes issued as of September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Junior Subordinated Notes (1) $ 62,000 $ 62,000 Fair value adjustment (18,423) (17,144) Total Junior Subordinated Notes $ 43,577 $ 44,856 (1) Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3‑month LIBOR plus 3.75% per annum.

Securitized Mortgage Trusts

Securitized Mortgage Trusts	9 Months Ended
	Sep. 30, 2019
Securitized Mortgage Trusts
Securitized Mortgage Trusts	Note 7.—Securitized Mortgage Trusts Securitized Mortgage Trust Assets Securitized mortgage trust assets, which are recorded at their estimated fair value, are comprised of the following at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Securitized mortgage collateral $ 2,783,256 $ 3,157,071 Real estate owned (REO), at net realizable value (NRV) 11,861 8,519 Total securitized mortgage trust assets $ 2,795,117 $ 3,165,590 Securitized Mortgage Trust Liabilities Securitized mortgage trust liabilities, which are recorded at their estimated fair value, are comprised of the following at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Securitized mortgage borrowings $ 2,777,872 $ 3,148,215 Changes in fair value of net trust assets, including trust REO losses, are comprised of the following for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Change in fair value of net trust assets, excluding REO $ 1,025 $ (666) $ (2,018) $ (3,190) Losses from REO (2,749) (649) (3,848) (46) Change in fair value of net trust assets, including trust REO losses $ (1,724) $ (1,315) $ (5,866) $ (3,236)

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 8.—Fair Value of Financial Instruments The use of fair value to measure the Company’s financial instruments is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value. The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated: September 30, 2019 December 31, 2018 Carrying Estimated Fair Value Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 24,115 $ 24,115 $ — $ — $ 23,200 $ 23,200 $ — $ — Restricted cash 13,057 13,057 — — 6,989 6,989 — — Mortgage loans held-for-sale 1,038,942 — 1,038,942 — 353,601 — 353,601 — Mortgage servicing rights 40,827 — — 40,827 64,728 — — 64,728 Derivative assets, lending, net (1) 9,435 — 512 8,923 3,351 — — 3,351 Mortgage-backed securities (1) 10,482 — 10,482 — 1,000 — 1,000 — Securitized mortgage collateral 2,783,256 — — 2,783,256 3,157,071 — — 3,157,071 Liabilities Warehouse borrowings $ 971,595 $ — $ 971,595 $ — $ 284,137 $ — $ 284,137 $ — Convertible notes 24,993 — — 24,993 24,985 — — 24,985 Long-term debt 43,577 — — 43,577 44,856 — — 44,856 Securitized mortgage borrowings 2,777,872 — — 2,777,872 3,148,215 — — 3,148,215 Derivative liabilities, lending, net (2) — — — — 683 — 683 — (1) Included in other assets in the accompanying consolidated balance sheets. (2) Included in other liabilities in the accompanying consolidated balance sheets. The fair value amounts above have been estimated by management using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates of fair value in both inactive and orderly markets. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For securitized mortgage collateral and securitized mortgage borrowings, the underlying bonds are collateralized by Alt-A (non-conforming) residential and commercial loans and have limited or no market activity. The Company’s methodology to estimate fair value of these assets and liabilities include the use of internal pricing techniques such as the net present value of future expected cash flows (with observable market participant assumptions, where available) discounted at a rate of return based on the Company’s estimates of market participant requirements. The significant assumptions utilized in these internal pricing techniques, which are based on the characteristics of the underlying collateral, include estimated credit losses, estimated prepayment speeds and appropriate discount rates. Refer to Recurring Fair Value Measurements below for a description of the valuation methods used to determine the fair value of mortgage servicing rights, mortgage loans held-for-sale, mortgage-backed securities, securitized mortgage collateral and borrowings, long-term debt and derivative assets and liabilities. The carrying amount of cash, cash equivalents and restricted cash approximates fair value. Warehouse borrowings carrying amounts approximate fair value due to the short-term nature of the liabilities and do not present unanticipated interest rate or credit concerns. Convertible notes are recorded at amortized cost, which approximates fair value due to the short duration to maturity. Fair Value Hierarchy The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value. FASB ASC 820-10-35 specifies a hierarchy of valuation techniques based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: · Level 1—Quoted prices (unadjusted) in active markets for identical instruments or liabilities that an entity has the ability to assess at measurement date. · Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for an asset or liability, including interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, loss severities, credit risks and default rates; and market-corroborated inputs. · Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value. As a result of the lack of observable market data resulting from inactive markets, the Company has classified its mortgage servicing rights, securitized mortgage collateral and borrowings, derivative assets and liabilities (IRLCs), and long-term debt as Level 3 fair value measurements. Level 3 assets and liabilities measured at fair value on a recurring basis were approximately 73% and 99% and 90% and 99%, respectively, of total assets and total liabilities measured at estimated fair value at September 30, 2019 and December 31, 2018. Recurring Fair Value Measurements The Company assesses its financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by ASC Topic 810. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels occur at the beginning of the reporting period. There were no material transfers between Level 1, Level 2 or Level 3 classified instruments during the nine months ended September 30, 2019. The following tables present the Company’s assets and liabilities that are measured at estimated fair value on a recurring basis, including financial instruments for which the Company has elected the fair value option at September 30, 2019 and December 31, 2018, based on the fair value hierarchy: Recurring Fair Value Measurements September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Mortgage loans held-for-sale $ — $ 1,038,942 $ — $ — $ 353,601 $ — Mortgage-backed securities — 10,482 — — 1,000 — Derivative assets, lending, net (1) — 512 8,923 — — 3,351 Mortgage servicing rights — — 40,827 — — 64,728 Securitized mortgage collateral — — 2,783,256 — — 3,157,071 Total assets at fair value $ — $ 1,049,936 $ 2,833,006 $ — $ 354,601 $ 3,225,150 Liabilities Securitized mortgage borrowings $ — $ — $ 2,777,872 $ — $ — $ 3,148,215 Long-term debt — — 43,577 — — 44,856 Derivative liabilities, lending, net (2) — — — — 683 — Total liabilities at fair value $ — $ — $ 2,821,449 $ — $ 683 $ 3,193,071 (1) At September 30, 2019, derivative assets, lending, net included $8.9 million in IRLCs and $512 thousand in hedging instruments, respectively, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2018, derivative assets, lending, net included $3.4 million in IRLCs and is included in other assets in the accompanying consolidated balance sheets. (2) At December 31, 2018, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets. The following tables present reconciliations for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended September 30, 2019 and 2018: Level 3 Recurring Fair Value Measurements For the Three Months Ended September 30, 2019 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, June 30, 2019 $ 2,920,849 $ (2,915,156) $ 50,346 $ 8,449 $ (43,910) Total gains (losses) included in earnings: Interest income (1) 1,751 — — — — Interest expense (1) — (6,748) — — (115) Change in fair value 6,934 (5,909) (9,755) 474 304 Change in instrument specific credit risk — — — — 144 (2) Total gains (losses) included in earnings 8,685 (12,657) (9,755) 474 333 Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 223 — — Settlements (146,278) 149,941 13 — — Fair value, September 30, 2019 $ 2,783,256 $ (2,777,872) $ 40,827 $ 8,923 $ (43,577) Unrealized (losses) gains still held (3) $ (235,050) $ 264,168 $ 40,827 $ 8,923 $ 18,423 (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.6 million for three months ended September 30, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss). (3) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2019. Level 3 Recurring Fair Value Measurements For the Three Months Ended September 30, 2018 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, June 30, 2018 $ 3,401,037 $ (3,393,721) $ 180,733 $ 4,538 $ (45,787) Total gains (losses) included in earnings: Interest income (1) 7,097 — — — — Interest expense (1) — (13,487) — — (191) Change in fair value 59,727 (60,393) (5,445) (720) (785) Change in instrument specific credit risk — — — — 25 (2) Total gains (losses) included in earnings 66,824 (73,880) (5,445) (720) (951) Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 5,717 — — Settlements (165,669) 171,359 — — — Fair value, September 30, 2018 $ 3,302,192 $ (3,296,242) $ 181,005 $ 3,818 $ (46,738) Unrealized (losses) gains still held (3) $ (403,516) $ 402,084 $ 181,005 $ 3,818 $ 15,262 (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $1.9 million for three months ended September 30, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss). (3) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2018 . The following tables present reconciliations for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2019: Level 3 Recurring Fair Value Measurements For the Nine Months Ended September 30, 2019 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, December 31, 2018 $ 3,157,071 $ (3,148,215) $ 64,728 $ 3,351 $ (44,856) Total gains (losses) included in earnings: Interest income (1) 11,957 — — — — Interest expense (1) — (30,499) — — (338) Change in fair value 68,576 (70,594) (26,128) 5,572 958 Change in instrument specific credit risk — — — — 659 (2) Total gains (losses) included in earnings 80,533 (101,093) (26,128) 5,572 1,279 Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 2,222 — — Settlements (454,348) 471,436 5 — — Fair value, September 30, 2019 $ 2,783,256 $ (2,777,872) $ 40,827 $ 8,923 $ (43,577) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $6.7 million for the nine months ended September 30, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive earnings (loss) is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss) as required by the adoption of ASU 2016-01 on January 1, 2018. Level 3 Recurring Fair Value Measurements For the Nine Months Ended September 30, 2018 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term Contingent collateral borrowings rights net debt consideration Fair value, December 31, 2017 $ 3,662,008 $ (3,653,265) $ 154,405 $ 4,357 $ (44,982) $ (554) Total gains (losses) included in earnings: Interest income (1) 24,071 — — — — — Interest expense (1) — (50,684) — — (513) — Change in fair value 39,658 (42,848) 4,127 (539) 697 — Change in instrument specific credit risk — — — — (1,940) (2) — Total gains (losses) included in earnings 63,729 (93,532) 4,127 (539) (1,756) — Transfers in and/or out of Level 3 — — — — — — Purchases, issuances and settlements: Purchases — — — — — — Issuances — — 22,473 — — — Settlements (423,545) 450,555 — — — 554 Fair value, September 30, 2018 $ 3,302,192 $ (3,296,242) $ 181,005 $ 3,818 $ (46,738) $ — (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $5.9 million for the nine months ended September 30, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive earnings (loss) is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss) as required by the adoption of ASU 2016-01 on January 1, 2018. The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and nonrecurring basis at September 30, 2019: Estimated Valuation Unobservable Range of Weighted Financial Instrument Fair Value Technique Input Inputs Average Assets and liabilities backed by real estate Securitized mortgage collateral, and $ 2,783,256 DCF Prepayment rates 3.4 - 29.5 % 7.0 % Securitized mortgage borrowings (2,777,872) Default rates 0.01 - 4.1 % 1.6 % Loss severities 4.4 - 99.9 % 47.3 % Discount rates 2.5 - 25.0 % 3.6 % Other assets and liabilities Mortgage servicing rights $ 40,827 DCF Discount rate 9.0 - 13.0 % 9.2 % Prepayment rates 8.0 - 86.6 % 18.2 % Derivative assets - IRLCs, net 8,923 Market pricing Pull-through rate 9.0 - 99.9 % 79.5 % Long-term debt (43,577) DCF Discount rate 9.0 % 9.0 % DCF = Discounted Cash Flow For assets and liabilities backed by real estate, a significant increase in discount rates, default rates or loss severities would result in a significantly lower estimated fair value. The effect of changes in prepayment speeds would have differing effects depending on the seniority or other characteristics of the instrument. For other assets and liabilities, a significant increase in discount rates would result in a significantly lower estimated fair value. A significant increase in one-month LIBOR would result in a significantly higher estimated fair value for derivative liabilities, net, securitized trusts. The Company believes that the imprecision of an estimate could be significant. The following tables present the changes in recurring fair value measurements included in net earnings (loss) for the three months ended September 30, 2019 and 2018: Recurring Fair Value Measurements Changes in Fair Value Included in Net Earnings (Loss) For the Three Months Ended September 30, 2019 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 1,751 $ — $ 6,934 $ — $ — $ — $ 8,685 Securitized mortgage borrowings — (6,748) (5,909) — — — (12,657) Long-term debt — (115) — 304 — — 189 Mortgage servicing rights (2) — — — — (9,755) — (9,755) Mortgage loans held-for-sale — — — — — 9,275 9,275 Derivative assets — IRLCs — — — — — 474 474 Derivative liabilities — Hedging Instruments — — — — — 1,728 1,728 Total $ 1,751 $ (6,863) $ 1,025 $ 304 $ (9,755) $ 11,477 $ (2,061) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Three Months Ended September 30, 2018 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 7,097 $ — $ 59,727 $ — $ — $ — $ 66,824 Securitized mortgage borrowings — (13,487) (60,393) — — — (73,880) Long-term debt — (191) — (785) — — (976) Mortgage servicing rights (2) — — — — (5,445) — (5,445) Mortgage loans held-for-sale — — — — — (6,901) (6,901) Derivative assets — IRLCs — — — — — (720) (720) Derivative liabilities — Hedging Instruments — — — — (331) 1,044 713 Total $ 7,097 $ (13,678) $ (666) $ (785) $ (5,776) $ (6,577) $ (20,385) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). The following tables present the changes in recurring fair value measurements included in net (loss) earnings for the nine months ended September 30, 2019 and 2018: Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Nine Months Ended September 30, 2019 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 11,957 $ — $ 68,576 $ — $ — $ — $ 80,533 Securitized mortgage borrowings — (30,499) (70,594) — — — (101,093) Long-term debt — (338) — 958 — — 620 Mortgage servicing rights (2) — — — — (26,128) — (26,128) Mortgage loans held-for-sale — — — — — 17,609 17,609 Derivative assets — IRLCs — — — — — 5,572 5,572 Derivative liabilities — Hedging Instruments — — — — — 1,196 1,196 Total $ 11,957 $ (30,837) $ (2,018) (3) $ 958 $ (26,128) $ 24,377 $ (21,691) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). (3) For the nine months ended September 30, 2019, change in the fair value of net trust assets, excluding REO was $2.0 million. Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Nine Months Ended September 30, 2018 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 24,071 $ — $ 39,658 $ — $ — $ — $ 63,729 Securitized mortgage borrowings — (50,684) (42,848) — — — (93,532) Long-term debt — (513) — 697 — — 184 Mortgage servicing rights (2) — — — — 4,127 — 4,127 Mortgage loans held-for-sale — — — — — (12,182) (12,182) Derivative assets — IRLCs — — — — — (539) (539) Derivative liabilities — Hedging Instruments — — — — (85) 198 113 Total $ 24,071 $ (51,197) $ (3,190) (3) $ 697 $ 4,042 $ (12,523) $ (38,100) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). (3) For the nine months ended September 30, 2018, change in the fair value of net trust assets, excluding REO was $3.2 million. The following is a description of the measurement techniques for items recorded at estimated fair value on a recurring basis. Mortgage servicing rights —The Company elected to carry its MSRs arising from its mortgage loan origination operation at estimated fair value. The fair value of MSRs is based upon market prices for similar instruments and a discounted cash flow model. The valuation model incorporates assumptions that market participants would use in estimating the fair value of servicing. These assumptions include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. Mortgage servicing rights are considered a Level 3 measurement at September 30, 2019. Mortgage loans held-for-sale —The Company elected to carry its mortgage loans held-for-sale originated or acquired at estimated fair value. Fair value is based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. Given the meaningful level of secondary market activity for mortgage loans, active pricing is available for similar assets and accordingly, the Company classifies its mortgage loans held-for-sale as a Level 2 measurement at September 30, 2019. Mortgage-backed securities —The Company invested in mortgage-backed securities collateralized by NonQM loans originated by the Company and sold to third party investors. Fair value is based on prices for other traded mortgage-backed securities with similar characteristics and bid information received from market participants. Given the market pricing for other traded mortgage-backed securities, active pricing is available for similar assets and accordingly, the Company classifies its mortgage-backed securities as a Level 2 measurement at September 30, 2019. Securitized mortgage collateral —The Company elected to carry its securitized mortgage collateral at fair value. These assets consist primarily of non-conforming mortgage loans securitized between 2002 and 2007. Fair value measurements are based on the Company’s internal models used to compute the net present value of future expected cash flows with observable market participant assumptions, where available. The Company’s assumptions include its expectations of inputs that other market participants would use in pricing these assets. These assumptions include judgments about the underlying collateral, prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of September 30, 2019, securitized mortgage collateral had UPB of $3.0 billion, compared to an estimated fair value on the Company’s balance sheet of $2.8 billion. The aggregate UPB exceeded the fair value by $0.2 billion at September 30, 2019. As of September 30, 2019, the UPB of loans 90 days or more past due was $0.4 billion compared to an estimated fair value of $0.1 billion. The aggregate UPB of loans 90 days or more past due exceeded the fair value by $0.3 billion at September 30, 2019. Securitized mortgage collateral is considered a Level 3 measurement at September 30, 2019. Securitized mortgage borrowings —The Company elected to carry its securitized mortgage borrowings at fair value. These borrowings consist of individual tranches of bonds issued by securitization trusts and are primarily backed by non-conforming mortgage loans. Fair value measurements include the Company’s judgments about the underlying collateral and assumptions such as prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of September 30, 2019, securitized mortgage borrowings had an outstanding principal balance of $3.0 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $2.8 billion. The aggregate outstanding principal balance exceeded the fair value by $0.2 billion at September 30, 2019. Securitized mortgage borrowings are considered a Level 3 measurement at September 30, 2019. Long-term debt —The Company elected to carry its remaining long-term debt (consisting of junior subordinated notes) at fair value. These securities are measured based upon an analysis prepared by management, which considered the Company’s own credit risk, including previous settlements with trust preferred debt holders and discounted cash flow analysis. As of September 30, 2019, long-term debt had UPB of $62.0. million compared to an estimated fair value of $43.6 million. The aggregate UPB exceeded the fair value by $18.4 million at September 30, 2019. The long-term debt is considered a Level 3 measurement at September 30, 2019. Derivative assets and liabilities, lending —The Company’s derivative assets and liabilities are carried at fair value as required by GAAP and are accounted for as free standing derivatives. The derivatives include IRLCs with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked in that interest rate. These commitments are determined to be derivative instruments in accordance with GAAP. The derivatives also include hedging instruments (typically TBA MBS) used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending originations. The Company hedges the period from the interest rate lock (assuming a fall-out factor) to the date of the loan sale. The estimated fair value of IRLCs are based on underlying loan types with similar characteristics using the TBA MBS market, which is actively quoted and validated through external sources. The data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program and expected sale date of the loan, adjusted for current market conditions. These valuations are adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. For all IRLCs, the base value is then adjusted for the anticipated Pull-through Rate. The anticipated Pull-through Rate is an unobservable input based on historical experience, which results in classification of IRLCs as a Level 3 measurement at September 30, 2019. The fair value of the Hedging Instruments is based on the actively quoted TBA MBS market using observable inputs related to characteristics of the underlying MBS stratified by product, coupon and settlement date. Therefore, the Hedging Instruments are classified as a Level 2 measurement at September 30, 2019. The following table includes information for the derivative assets and liabilities related to lending for the periods presented: Total Gains (Losses) Total Gains (Losses) Notional Amount For the Three Months Ended For the Nine Months Ended September 30, December 31, September 30, September 30, 2019 2018 2019 2018 2019 2018 Derivative – IRLC's (1) $ 502,522 $ 183,595 $ 474 $ (720) $ 5,572 $ (539) Derivative – TBA MBS (2) 616,893 88,018 759 (6,383) 10,034 Derivative – Forward delivery loan commitment 46,486 150,000 — — — — (1) Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive earnings (loss). (2) Amounts included in gain on sale of loans, net and (loss) gain on mortgage servicing rights, net within the accompanying consolidated statements of operations and comprehensive earnings (loss). Nonrecurring Fair Value Measurements The Company is required to measure certain assets and liabilities at estimated fair value from time to time. These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820-10. The following tables present financial and non-financial assets measured using nonrecurring fair value measurements at September 30, 2019 and 2018, respectively: Nonrecurring Fair Value Measurements Total Losses (1) Total Losses (1) September 30, 2019 For the Three Months Ended For the Nine Months Ended Level 1 Level 2 Level 3 September 30, 2019 September 30, 2019 REO (2) $ — $ 12,131 $ — $ (2,749) $ (3,848) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) At September 30, 2019, $11.9 million of REO was within the securitized mortgage trust assets. Balance represents REO at September 30, 2019, which have been impaired subsequent to foreclosure. For the three and nine months ended September 30, 2019, the Company recorded $2.7 million and $3.8 million, respectively, losses related to changes in NRV of properties. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on properties held during the period which resulted in a decrease to NRV. Nonrecurring Fair Value Measurements Total Losses (1) Total Losses (1) September 30, 2018 For the Three Months Ended For the Nine Months Ended Level 1 Level 2 Level 3 September 30, 2018 September 30, 2018 REO (2) $ — $ 9,593 $ — $ (649) $ (46) Intangible assets — — 380 (4,897) (18,347) Goodwill — — — (29,925) (104,587) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at September 30, 2018, which has been impaired subsequent to foreclosure. For the three and nine months ended September 30, 2018, the Company recorded $649 thousand and $46 thousand, respectively, in losses related to changes in NRV of properties. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on properties held during the period which resulted in a decrease to NRV. Real estate owned —REO consists of residential real estate (within securitized mortgage trust assets) acquired in satisfaction of loans. Upon foreclosure, REO is adjusted to the estimated fair value of the residential real estate less estimated selling and holding costs, offset by expected contractual mortgage insurance proceeds to be received, if any. Subsequently, REO is recorded at the lower of carrying value or estimated fair value less costs to sell. REO balance representing REOs which have been impaired subsequent to foreclosure are subject to nonrecurring fair value measurement and are included in the nonrecurring fair value measurements tables. Fair values of REO are generally based on observable market inputs, and are considered Level 2 measurements at September 30, 2019. Intangible assets— The methodology used

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	Note 9.—Income Taxes The Company calculates its quarterly tax provision pursuant to the guidelines in ASC 740 Income Taxes . ASC 740 requires companies to estimate the annual effective tax rate for current year ordinary income. In calculating the effective tax rate, permanent differences between financial reporting and taxable income are factored into the calculation, and temporary differences are not. The estimated annual effective tax rate represents the Company’s estimate of the tax provision in relation to the best estimate of pre-tax ordinary income or loss. The estimated annual effective tax rate is then applied to year-to-date ordinary income or loss to calculate the year-to-date interim tax provision. The Company recorded income tax benefit of $230 thousand and $62 thousand for the three and nine months ended September 30, 2019, respectively. Tax benefit for the three and nine months ended September 30, 2019 is primarily the result of a benefit resulting from the intraperiod allocation rules that are applied when there is a pre-tax loss from continuing operations and pre-tax income from other comprehensive income partially offset by state taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes. The Company recorded income tax expense of $12 thousand and $4.3 million for the three and nine months ended September 30, 2018, respectively. Tax expense for the three months ended September 30, 2018 is primarily the result of state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT. Tax expense for the nine months ended September 30, 2018 is primarily the result of an increase in the valuation allowance eliminating the net deferred tax asset, state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT. At September 30, 2019, the Company had accumulated other comprehensive earnings of $24.4 million, which was net of tax of $11.2 million. As of December 31, 2018, the Company had estimated federal net operating loss (NOL) carryforwards of approximately $564.6 million. Federal NOL carryforwards begin to expire in 2027. As of December 31, 2018, the Company had estimated California NOL carryforwards of approximately $386.0 million, which begin to expire in 2028. The Company may not be able to realize the maximum benefit due to the nature and tax entities that hold the NOL.

Reconciliation of Earnings (Los

Reconciliation of Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Reconciliation of (Loss) Earnings Per Share
Reconciliation of (Loss) Earnings Per Share	Note 10.—Reconciliation of Earnings (Loss) Per Share Basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders (numerator) by the weighted average number of vested common shares outstanding during the period (denominator). Diluted net earnings (loss) per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the if-converted method. Dilutive potential common shares include shares issuable upon conversion of Convertible Notes, dilutive effect of outstanding stock options and deferred stock units (DSUs). For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator for basic earnings (loss) per share: Net earnings (loss) $ 1,439 $ (45,445) $ (7,300) $ (138,970) Numerator for diluted earnings (loss) per share: Net earnings (loss) $ 1,439 $ (45,445) $ (7,300) $ (138,970) Interest expense attributable to convertible notes (1) — — — — Net earnings (loss) plus interest expense attributable to convertible notes $ 1,439 $ (45,445) $ (7,300) $ (138,970) Denominator for basic earnings (loss) per share (2): Basic weighted average common shares outstanding during the period 21,195 21,071 21,179 20,996 Denominator for diluted earnings (loss) per share (2): Basic weighted average common shares outstanding during the period 21,195 21,071 21,179 20,996 Net effect of dilutive convertible notes (1) — — — — Net effect of dilutive stock options and DSU’s 64 — — — Diluted weighted average common shares 21,259 21,071 21,179 20,996 Net earnings (loss) per common share: Basic $ 0.07 $ (2.16) $ (0.34) $ (6.62) Diluted $ 0.07 $ (2.16) $ (0.34) $ (6.62) (1) Adjustments to diluted earnings (loss) per share for the convertible notes for the three and nine months ended September 30, 2019 and 2018 were excluded from the calculation, as they were anti-dilutive. (2) Number of shares presented in thousands. For the three months ended September 30, 2019, there were 1.2 million shares underlying Convertible Notes and 477 thousand stock options outstanding which were anti-dilutive. For the nine months ended September 30, 2019, there were 1.2 million shares underlying Convertible Notes and 1.0 million stock options outstanding which were anti-dilutive. For the three and nine months ended September 30, 2018, there were 1.2 million shares underlying Convertible Notes and 1.2 million stock options outstanding which were anti-dilutive.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2019
Segment Reporting
Segment Reporting	Note 11.—Segment Reporting The Company has three primary reporting segments which include mortgage lending, real estate services and long-term mortgage portfolio. Unallocated corporate and other administrative costs are presented in Corporate and other. Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Three Months Ended September 30, 2019: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 31,073 $ — $ — $ — $ 31,073 Servicing fees, net 3,465 — — — 3,465 Loss on mortgage servicing rights, net (9,755) — — — (9,755) Real estate services fees, net — 921 — — 921 Other revenue — — 68 3 71 Other operating expense (21,782) (341) (131) (3,382) (25,636) Other income (expense) 1,445 — 73 (448) 1,070 Net earnings (loss) before income tax expense $ 4,446 $ 580 $ 10 $ (3,827) 1,209 Income tax benefit (230) Net earnings $ 1,439 Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Three Months Ended September 30, 2018: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 13,673 $ — $ — $ — $ 13,673 Servicing fees, net 10,124 — — — 10,124 Loss on mortgage servicing rights, net (5,192) — — — (5,192) Real estate services fees, net — 711 — — 711 Other revenue — — 195 (124) 71 Intangible asset impairment (4,897) — — — (4,897) Goodwill impairment (29,925) — — — (29,925) Other operating expense (21,452) (372) (146) (6,339) (28,309) Other income (expense) 133 — (1,363) (459) (1,689) Net (loss) earnings before income tax expense $ (37,536) $ 339 $ (1,314) $ (6,922) $ (45,433) Income tax expense 12 Net loss $ (45,445) Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Nine Months Ended September 30, 2019: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 72,759 $ — $ — $ — $ 72,759 Servicing fees, net 9,970 — — — 9,970 Loss on mortgage servicing rights, net (25,264) — — — (25,264) Real estate services fees, net — 2,534 — — 2,534 Other revenue 36 — 166 56 258 Other operating expense (56,738) (1,073) (381) (11,348) (69,540) Other income (expense) 4,765 — (1,487) (1,357) 1,921 Net earnings (loss) before income tax expense $ 5,528 $ 1,461 $ (1,702) $ (12,649) (7,362) Income tax benefit (62) Net loss $ (7,300) Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Nine Months Ended September 30, 2018: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 53,896 $ — $ — $ — $ 53,896 Servicing fees, net 29,445 — — — 29,445 Gain on mortgage servicing rights, net 2,682 — — — 2,682 Real estate services fees, net — 3,134 — — 3,134 Other revenue — — 381 (103) 278 Intangible asset impairment (18,347) — — — (18,347) Goodwill impairment (104,587) — — — (104,587) Other operating expense (81,985) (1,601) (322) (16,673) (100,581) Other income (expense) 771 — 10 (1,343) (562) Net (loss) earnings before income tax expense $ (118,125) $ 1,533 $ 69 $ (18,119) $ (134,642) Income tax expense 4,328 Net loss $ (138,970) Mortgage Real Estate Long-term Corporate Balance Sheet Items as of: Lending Services Portfolio and other Consolidated Total Assets at September 30, 2019 (1) $ 1,156,897 $ 4 $ 2,795,182 $ 23,929 $ 3,976,012 Total Assets at December 31, 2018 (1) $ 475,734 $ 126 $ 3,165,669 $ 6,414 $ 3,647,943 (1) All segment asset balances exclude intercompany balances.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	Note 12.—Commitments and Contingencies Legal Proceedings The Company is a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any. In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and estimable. In any case, there may be an exposure to losses in excess of any such amounts whether accrued or not. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated loss will change from time to time, and actual results may vary significantly from the current estimate. Therefore, an estimate of possible loss represents what the Company believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure. Based on the Company’s current understanding of these pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, in light of the inherent uncertainties involved in these matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. The legal matter updates summarized below are ongoing and may have an effect on the Company’s business and future financial condition and results of operations: On December 7, 2011, a purported class action was filed in the Circuit Court of Baltimore City entitled Timm, v. Impac Mortgage Holdings, Inc., et al. alleging on behalf of holders of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock (Preferred B) and 9.125% Series C Cumulative Redeemable Preferred Stock (Preferred C) who did not tender their stock in connection with the Company’s 2009 completion of its Offer to Purchase and Consent Solicitation that the Company failed to achieve the required consent of the Preferred B and C holders, the consents to amend the Preferred stock were not effective because they were given on unissued stock (after redemption), the Company tied the tender offer with a consent requirement that constituted an improper “vote buying” scheme, and that the tender offer was a breach of a fiduciary duty. The action seeks the payment of two quarterly dividends for the Preferred B and C holders, the unwinding of the consents and reinstatement of the cumulative dividend on the Preferred B and C stock, and the election of two directors by the Preferred B and C holders. The action also seeks punitive damages and legal expenses. On July 16, 2018, the Court entered a Judgement Order whereby it (1) declared and entered judgment in favor of all defendants on all claims related to the Preferred C holders and all claims against all individual defendants thereby affirming the validity of the 2009 amendments to the Series B Articles Supplementary; (2) declared its interpretation of the voting provision language in the Preferred B Articles Supplementary to mean that consent of two-thirds of the Preferred B stockholders was required to approve the 2009 amendments to the Preferred B Articles Supplementary, which consent was not obtained, thus rendering the amendments invalid and leaving the 2004 Preferred B Articles Supplementary in effect; (3) ordered the Company to hold a special election within sixty days for the Preferred B stockholders to elect two directors to the Board of Directors pursuant to the 2004 Preferred B Articles Supplementary (which Directors will remain on the Company’s Board of Directors until such time as all accumulated dividends on the Preferred B have been paid or set aside for payment) and, (4) declared that the Company is required to pay three quarters of dividends on the Preferred B stock under the 2004 Articles Supplementary (approximately, $1.2 million, but did not order the Company to make any payment at this time). The Court declined to certify any class pending the outcome of appeals and certified its Judgment Order for immediate appeal. On October 2, 2019, the appellate court held oral argument for all appeals in the matter. The Company is a party to other litigation and claims which are normal in the course of the Company’s operations. While the results of such other litigation and claims cannot be predicted with certainty, we believe the final outcome of such matters will not have a material adverse effect on our financial condition or results of operations. The Company believes that it has meritorious defenses to the claims and intends to defend these claims vigorously and as such the Company believes the final outcome of such matters will not have a material adverse effect on its financial condition or results of operations. Nevertheless, litigation is uncertain and the Company may not prevail in the lawsuits and can express no opinion as to their ultimate resolution. An adverse judgment in any of these matters could have a material adverse effect on the Company’s financial position and results of operations. Please refer to IMH’s report on Form 10-K for the year ended December 31, 2018 for a full description of litigation and claims. Repurchase Reserve When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company’s whole loan sale agreements generally require it to repurchase loans if the Company breached a representation or warranty given to the loan purchaser as well as refunds of premiums to investors for early payoffs on loans sold. The following table summarizes the repurchase reserve activity, within other liabilities on the consolidated balance sheets, related to previously sold loans for the nine months ended September 30, 2019 and year ended December 31, 2018: September 30, December 31, 2019 2018 Beginning balance $ 7,657 $ 6,020 Provision for repurchases 3,618 5,074 Settlements (2,276) (3,437) Total repurchase reserve $ 8,999 $ 7,657 Commitments to Extend Credit The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. These loan commitments are treated as derivatives and are carried at fair value. See Note 8. — Fair Value of Financial Instruments for more information.

Equity and Share Based Payments

Equity and Share Based Payments	9 Months Ended
	Sep. 30, 2019
Equity and Share Based Payments
Equity and Share Based Payments	Note 13.—Equity and Share Based Payments Redeemable Preferred Stock At September 30, 2019, the Company had outstanding $67.4 million liquidation preference of Series B and Series C Preferred Stock. The holders of each series of Preferred Stock, which are non‑voting and redeemable at the option of the Company, retain the right to a $25.00 per share liquidation preference in the event of a liquidation of the Company and the right to receive dividends on the Preferred Stock if any such dividends are declared. As previously disclosed within Note 11.—Redeemable Preferred Stock, of the 2018 Form 10-K, all rights of the Preferred B holders under the 2004 Articles were deemed reinstated. Subject to an appeal, the Company has cumulative undeclared dividends in arrears of approximately $15.6 million, or approximately $23.44 per outstanding share of Preferred B, increasing the liquidation value to approximately $48.44 per share. Additionally, every quarter the cumulative undeclared dividends in arrears will increase by $0.5859 per share, or approximately $390 thousand. The liquidation preference, inclusive of the cumulative undeclared dividends in arrears, is only payable upon voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs. Share Based Payments The following table summarizes activity, pricing and other information for the Company’s stock options for the nine months ended September 30, 2019: Weighted- Average Number of Exercise Shares Price Options outstanding at December 31, 2018 1,001,469 $ 13.16 Options granted 592,500 3.66 Options exercised (103,351) 3.34 Options forfeited/cancelled (457,448) 12.99 Options outstanding at September 30, 2019 1,033,170 8.78 Options exercisable at September 30, 2019 435,967 $ 14.52 As of September 30, 2019, there was approximately $1.0 million of total unrecognized compensation cost related to stock option compensation arrangements granted under the plan, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 2.1 years. The following table summarizes activity, pricing and other information for the Company’s restricted stock units (RSU’s) for the nine months ended September 30, 2019: Weighted- Average Number of Grant Date Shares Fair Value RSU's outstanding at December 31, 2018 — $ — RSU’s granted 75,000 3.75 RSU’s issued — — RSU’s forfeited/cancelled — — RSU’s outstanding at September 30, 2019 75,000 $ 3.75 As of September 30, 2019, there was approximately $226 thousand of total unrecognized compensation cost related to the RSU compensation arrangements granted under the plan. That cost is expected to be recognized over the remaining weighted average period of 2.4 years. The following table summarizes activity, pricing and other information for the Company’s deferred stock units (DSU’s) for the nine months ended September 30, 2019: Weighted- Average Number of Grant Date Shares Fair Value DSU's outstanding at December 31, 2018 24,500 $ 10.11 DSU’s granted 30,000 3.75 DSU’s issued — — DSU’s forfeited/cancelled — — DSU’s outstanding at September 30, 2019 54,500 $ 6.61 As of September 30, 2019, there was approximately $111 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. That cost is expected to be recognized over the remaining weighted average period of 2.1 years. The following table summarizes activity, pricing and other information for the Company’s restricted stock awards (RSA’s) for the nine months ended September 30, 2019: Weighted- Average Number of Grant Date Shares Fair Value RSA's outstanding at December 31, 2018 — $ — RSA’s granted 35,069 3.57 RSA’s issued — — RSA’s forfeited/cancelled — — RSA’s outstanding at September 30, 2019 35,069 $ 3.57 As of September 30, 2019, there was no unrecognized compensation cost related to the RSA compensation arrangements granted under the plan as the amounts were accrued as part of an executive stay bonus in accordance with the executive’s employment agreement.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events
Subsequent Events	Note 14.—Subsequent Events On October 23, 2019, the Company adopted a Tax Benefits Preservation Rights Agreement (Rights Plan) to help preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, Tax Benefits). In general, the Company may “carry forward” net operating losses in certain circumstances to offset current and future taxable income, which will reduce federal and state income tax liability, subject to certain requirements and restrictions. The Company’s ability to use these Tax Benefits would be substantially limited and impaired if it were to experience an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986, as amended (the Code) and the Treasury Regulations promulgated thereunder. Generally, the Company will experience an “ownership change” if the percentage of the shares of Common Stock owned by one or more “five-percent shareholders” increases by more than 50 percentage points over the lowest percentage of shares of Common Stock owned by such stockholder at any time during the prior three year on a rolling basis. As such, the Rights Plan has a 4.99% “trigger” threshold that is intended to act as a deterrent to any person or entity seeking to acquire 4.99% or more of the outstanding Common Stock without the prior approval of the Board. The Rights Plan also has certain ancillary anti takeover effects. The rights accompany each share of common stock of the Company and are evidenced by ownership of common stock. The rights are not exercisable except upon the occurrence of certain change of control events. Once triggered, the rights would entitle the stockholders, other than a person qualifying as an “Acquiring Person” pursuant to the rights plan, to certain “flip in”, “flip over” and exchange rights. The rights issued under the Rights Plan may be redeemed by the board of directors at a nominal redemption price of $0.001 per right, and the board of directors may amend the rights in any respect until the rights are triggered. The Rights Plan will expire at the Company’s 2020 annual meeting of stockholders if the stockholders do not approve the Rights Plan. Otherwise, the Rights Plan will generally expire on the three-year anniversary of its adoption. Subsequent events have been evaluated through the date of this filing.

Summary of Business and Finan_2

Summary of Business and Financial Statement Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
Summary of Business and Financial Statement Presentation
Financial Statement Presentation	Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the United States Securities and Exchange Commission (SEC). All significant intercompany balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage-backed securities, mortgage servicing rights, mortgage loans held-for-sale and derivative instruments, including interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions.
Recent Accounting Pronouncements	Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “ Leases (Topic 842) ”, and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and In February 2018, the FASB issued ASU 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive earnings (AOCE) to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act) which was signed into law in the fourth quarter of 2017 . The ASU is effective in years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) .” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “ Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging , and Topic 825, Financial Instruments (ASU 2019-04) , which provided certain improvements to ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) and ASU 2016-13. As the Company adopted ASU 2016-01 on January 1, 2018, the improvements in ASU 2019-04 are effective in the first quarter of 2020. Early adoption is permitted. The Company expects to adopt ASU 2016-13 in the first quarter of 2023, as described above, and the improvements in ASU 2019-04 will be adopted concurrently. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Mortgage Loans Held-for-Sale (T

Mortgage Loans Held-for-Sale (Tables)	9 Months Ended
	Sep. 30, 2019
Mortgage Loans Held-for-Sale
Summary of the unpaid principal balance (UPB ) of mortgage loans held-for-sale by type	September 30, December 31, 2019 2018 Government (1) $ 50,157 $ 39,522 Conventional (2) 779,174 53,148 Non-qualified mortgages (NonQM) 187,562 256,491 Fair value adjustment (3) 22,049 4,440 Total mortgage loans held-for-sale $ 1,038,942 $ 353,601 (1) Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA). (2) Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC). (3) Changes in fair value are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive earnings (loss).
Schedule of gain on loans held-for-sale (LHFS)	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Gain on sale of mortgage loans $ 32,003 $ 27,949 $ 73,433 $ 85,928 Premium from servicing retained loan sales 223 5,717 2,222 22,473 Unrealized gains (losses) from derivative financial instruments 2,202 324 6,768 (341) Realized (losses) gains from derivative financial instruments (4,225) (537) (7,579) 11,281 Mark to market gain (loss) on LHFS 9,275 (6,901) 17,609 (12,182) Direct origination expenses, net (7,947) (9,038) (16,076) (47,828) Provision for repurchases (458) (3,841) (3,618) (5,435) Total gain on sale of loans, net $ 31,073 $ 13,673 $ 72,759 $ 53,896

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	9 Months Ended
	Sep. 30, 2019
Mortgage Servicing Rights
Schedule of changes in the fair value of MSRs	September 30, December 31, 2019 2018 Balance at beginning of period $ 64,728 $ 154,405 Additions from servicing retained loan sales 2,222 24,879 Reductions from bulk sales — (118,313) Other 5 — Changes in fair value (1) (26,128) 3,757 Fair value of MSRs at end of period $ 40,827 $ 64,728 (1) Changes in fair value are included within (loss) gain on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive earnings (loss).
Schedule of the outstanding loans serviced by entity	September 30, December 31, 2019 2018 Government insured $ 106,120 $ 51,157 Conventional 5,267,939 6,165,129 NonQM — 1,848 Total loans serviced (1) $ 5,374,059 $ 6,218,134 (1) No collateral was pledged as part of the MSR Financing at September 30, 2019 or December 31, 2018. (See Note 6.)
Schedule of hypothetical changes in the fair values of MSRs	September 30, December 31, Mortgage Servicing Rights Sensitivity Analysis 2019 2018 Fair value of MSRs $ 40,827 $ 64,728 Prepayment Speed: Decrease in fair value from 10% adverse change (2,170) (1,419) Decrease in fair value from 20% adverse change (4,190) (2,918) Decrease in fair value from 30% adverse change (6,067) (4,475) Discount Rate: Decrease in fair value from 10% adverse change (1,216) (2,345) Decrease in fair value from 20% adverse change (2,362) (4,532) Decrease in fair value from 30% adverse change (3,443) (6,575)
Schedule of Gain (loss) on mortgage servicing rights	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Change in fair value of mortgage servicing rights $ (9,755) $ (5,445) $ (26,128) $ 4,127 Gain on sale of mortgage servicing rights — — 864 — Realized and unrealized gains (losses) from hedging instruments — 253 — (1,445) (Loss) gain on mortgage servicing rights, net $ (9,755) $ (5,192) $ (25,264) $ 2,682
Schedule of components of servicing income	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Contractual servicing fees $ 3,723 $ 11,458 $ 11,803 $ 34,322 Late and ancillary fees 45 182 137 500 Subservicing and other costs (303) (1,516) (1,970) (5,377) Servicing fees, net $ 3,465 $ 10,124 $ 9,970 $ 29,445

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Lessee, Lease, Description [Line Items]
Schedule of maturities of operating leases	Remainder of 2019 $ 1,325 Year 2020 5,138 Year 2021 4,593 Year 2022 4,721 Year 2023 4,867 Year 2024 3,729 Total lease commitments 24,373 Less: imputed interest (2,720) Total operating lease liability $ 21,653
ASU 2016-02
Lessee, Lease, Description [Line Items]
Schedule of balance sheets, weighted average remaining lease term and weighted average discount rates	September 30, Lease Assets and Liabilities Classification 2019 Assets Operating lease ROU assets Other assets $ 18,131 Liabilities Operating lease liabilities Other liabilities $ 21,653 Weighted average remaining lease term Weighted average discount rate %

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Instrument [Line Items]
Schedule of information on warehouse borrowings	Maximum Balance Outstanding at Borrowing September 30, December 31, Capacity 2019 2018 Maturity Date Short-term borrowings: Repurchase agreement 1 $ 75,000 $ 10,406 $ 84,897 April 1, 2020 Repurchase agreement 2 50,000 48,643 47,108 May 28, 2020 Repurchase agreement 3 425,000 209,955 35,920 January 17, 2020 Repurchase agreement 4 200,000 136,912 80,141 July 30, 2020 Repurchase agreement 5 (1) 175,000 133,238 23,370 March 31, 2020 Repurchase agreement 6 600,000 432,441 12,701 June 25, 2020 Total warehouse borrowings $ 1,525,000 $ 971,595 $ 284,137 (1) In October 2019, the maximum borrowing capacity was increased to $300.0 million.
Junior Subordinated Notes
Debt Instrument [Line Items]
Schedule of remaining principal balance and fair value	September 30, December 31, 2019 2018 Junior Subordinated Notes (1) $ 62,000 $ 62,000 Fair value adjustment (18,423) (17,144) Total Junior Subordinated Notes $ 43,577 $ 44,856 (1) Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3‑month LIBOR plus 3.75% per annum.

Securitized Mortgage Trusts (Ta

Securitized Mortgage Trusts (Tables)	9 Months Ended
	Sep. 30, 2019
Securitized Mortgage Trusts
Schedule of securitized mortgage trust assets	September 30, December 31, 2019 2018 Securitized mortgage collateral $ 2,783,256 $ 3,157,071 Real estate owned (REO), at net realizable value (NRV) 11,861 8,519 Total securitized mortgage trust assets $ 2,795,117 $ 3,165,590
Schedule of securitized mortgage trust liabilities	September 30, December 31, 2019 2018 Securitized mortgage borrowings $ 2,777,872 $ 3,148,215
Schedule of changes in fair value of net trust assets, including trust REO losses	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Change in fair value of net trust assets, excluding REO $ 1,025 $ (666) $ (2,018) $ (3,190) Losses from REO (2,749) (649) (3,848) (46) Change in fair value of net trust assets, including trust REO losses $ (1,724) $ (1,315) $ (5,866) $ (3,236)

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value of Financial Instruments
Schedule of estimated fair value of financial instruments included in consolidated financial statements	September 30, 2019 December 31, 2018 Carrying Estimated Fair Value Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 24,115 $ 24,115 $ — $ — $ 23,200 $ 23,200 $ — $ — Restricted cash 13,057 13,057 — — 6,989 6,989 — — Mortgage loans held-for-sale 1,038,942 — 1,038,942 — 353,601 — 353,601 — Mortgage servicing rights 40,827 — — 40,827 64,728 — — 64,728 Derivative assets, lending, net (1) 9,435 — 512 8,923 3,351 — — 3,351 Mortgage-backed securities (1) 10,482 — 10,482 — 1,000 — 1,000 — Securitized mortgage collateral 2,783,256 — — 2,783,256 3,157,071 — — 3,157,071 Liabilities Warehouse borrowings $ 971,595 $ — $ 971,595 $ — $ 284,137 $ — $ 284,137 $ — Convertible notes 24,993 — — 24,993 24,985 — — 24,985 Long-term debt 43,577 — — 43,577 44,856 — — 44,856 Securitized mortgage borrowings 2,777,872 — — 2,777,872 3,148,215 — — 3,148,215 Derivative liabilities, lending, net (2) — — — — 683 — 683 — (1) Included in other assets in the accompanying consolidated balance sheets. (2) Included in other liabilities in the accompanying consolidated balance sheets.
Schedule of assets and liabilities that are measured at estimated fair value on recurring basis	Recurring Fair Value Measurements September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Mortgage loans held-for-sale $ — $ 1,038,942 $ — $ — $ 353,601 $ — Mortgage-backed securities — 10,482 — — 1,000 — Derivative assets, lending, net (1) — 512 8,923 — — 3,351 Mortgage servicing rights — — 40,827 — — 64,728 Securitized mortgage collateral — — 2,783,256 — — 3,157,071 Total assets at fair value $ — $ 1,049,936 $ 2,833,006 $ — $ 354,601 $ 3,225,150 Liabilities Securitized mortgage borrowings $ — $ — $ 2,777,872 $ — $ — $ 3,148,215 Long-term debt — — 43,577 — — 44,856 Derivative liabilities, lending, net (2) — — — — 683 — Total liabilities at fair value $ — $ — $ 2,821,449 $ — $ 683 $ 3,193,071 (1) At September 30, 2019, derivative assets, lending, net included $8.9 million in IRLCs and $512 thousand in hedging instruments, respectively, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2018, derivative assets, lending, net included $3.4 million in IRLCs and is included in other assets in the accompanying consolidated balance sheets. (2) At December 31, 2018, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.
Schedule of reconciliation for all assets and liabilities measured at estimated fair value on recurring basis using significant unobservable inputs (Level 3)	Level 3 Recurring Fair Value Measurements For the Three Months Ended September 30, 2019 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, June 30, 2019 $ 2,920,849 $ (2,915,156) $ 50,346 $ 8,449 $ (43,910) Total gains (losses) included in earnings: Interest income (1) 1,751 — — — — Interest expense (1) — (6,748) — — (115) Change in fair value 6,934 (5,909) (9,755) 474 304 Change in instrument specific credit risk — — — — 144 (2) Total gains (losses) included in earnings 8,685 (12,657) (9,755) 474 333 Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 223 — — Settlements (146,278) 149,941 13 — — Fair value, September 30, 2019 $ 2,783,256 $ (2,777,872) $ 40,827 $ 8,923 $ (43,577) Unrealized (losses) gains still held (3) $ (235,050) $ 264,168 $ 40,827 $ 8,923 $ 18,423 (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.6 million for three months ended September 30, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss). (3) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2019. Level 3 Recurring Fair Value Measurements For the Three Months Ended September 30, 2018 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, June 30, 2018 $ 3,401,037 $ (3,393,721) $ 180,733 $ 4,538 $ (45,787) Total gains (losses) included in earnings: Interest income (1) 7,097 — — — — Interest expense (1) — (13,487) — — (191) Change in fair value 59,727 (60,393) (5,445) (720) (785) Change in instrument specific credit risk — — — — 25 (2) Total gains (losses) included in earnings 66,824 (73,880) (5,445) (720) (951) Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 5,717 — — Settlements (165,669) 171,359 — — — Fair value, September 30, 2018 $ 3,302,192 $ (3,296,242) $ 181,005 $ 3,818 $ (46,738) Unrealized (losses) gains still held (3) $ (403,516) $ 402,084 $ 181,005 $ 3,818 $ 15,262 (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $1.9 million for three months ended September 30, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss). (3) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2018 . Level 3 Recurring Fair Value Measurements For the Nine Months Ended September 30, 2019 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term collateral borrowings rights net debt Fair value, December 31, 2018 $ 3,157,071 $ (3,148,215) $ 64,728 $ 3,351 $ (44,856) Total gains (losses) included in earnings: Interest income (1) 11,957 — — — — Interest expense (1) — (30,499) — — (338) Change in fair value 68,576 (70,594) (26,128) 5,572 958 Change in instrument specific credit risk — — — — 659 (2) Total gains (losses) included in earnings 80,533 (101,093) (26,128) 5,572 1,279 Transfers in and/or out of Level 3 — — — — — Purchases, issuances and settlements: Purchases — — — — — Issuances — — 2,222 — — Settlements (454,348) 471,436 5 — — Fair value, September 30, 2019 $ 2,783,256 $ (2,777,872) $ 40,827 $ 8,923 $ (43,577) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $6.7 million for the nine months ended September 30, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive earnings (loss) is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss) as required by the adoption of ASU 2016-01 on January 1, 2018. Level 3 Recurring Fair Value Measurements For the Nine Months Ended September 30, 2018 Interest Securitized Securitized Mortgage rate lock Long- mortgage mortgage servicing commitments, term Contingent collateral borrowings rights net debt consideration Fair value, December 31, 2017 $ 3,662,008 $ (3,653,265) $ 154,405 $ 4,357 $ (44,982) $ (554) Total gains (losses) included in earnings: Interest income (1) 24,071 — — — — — Interest expense (1) — (50,684) — — (513) — Change in fair value 39,658 (42,848) 4,127 (539) 697 — Change in instrument specific credit risk — — — — (1,940) (2) — Total gains (losses) included in earnings 63,729 (93,532) 4,127 (539) (1,756) — Transfers in and/or out of Level 3 — — — — — — Purchases, issuances and settlements: Purchases — — — — — — Issuances — — 22,473 — — — Settlements (423,545) 450,555 — — — 554 Fair value, September 30, 2018 $ 3,302,192 $ (3,296,242) $ 181,005 $ 3,818 $ (46,738) $ — (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $5.9 million for the nine months ended September 30, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive earnings (loss) is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive earnings (loss) as required by the adoption of ASU 2016-01 on January 1, 2018.
Schedule of quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis	Estimated Valuation Unobservable Range of Weighted Financial Instrument Fair Value Technique Input Inputs Average Assets and liabilities backed by real estate Securitized mortgage collateral, and $ 2,783,256 DCF Prepayment rates 3.4 - 29.5 % 7.0 % Securitized mortgage borrowings (2,777,872) Default rates 0.01 - 4.1 % 1.6 % Loss severities 4.4 - 99.9 % 47.3 % Discount rates 2.5 - 25.0 % 3.6 % Other assets and liabilities Mortgage servicing rights $ 40,827 DCF Discount rate 9.0 - 13.0 % 9.2 % Prepayment rates 8.0 - 86.6 % 18.2 % Derivative assets - IRLCs, net 8,923 Market pricing Pull-through rate 9.0 - 99.9 % 79.5 % Long-term debt (43,577) DCF Discount rate 9.0 % 9.0 % DCF = Discounted Cash Flow
Schedule of changes in recurring fair value measurements included in net earnings	Recurring Fair Value Measurements Changes in Fair Value Included in Net Earnings (Loss) For the Three Months Ended September 30, 2019 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 1,751 $ — $ 6,934 $ — $ — $ — $ 8,685 Securitized mortgage borrowings — (6,748) (5,909) — — — (12,657) Long-term debt — (115) — 304 — — 189 Mortgage servicing rights (2) — — — — (9,755) — (9,755) Mortgage loans held-for-sale — — — — — 9,275 9,275 Derivative assets — IRLCs — — — — — 474 474 Derivative liabilities — Hedging Instruments — — — — — 1,728 1,728 Total $ 1,751 $ (6,863) $ 1,025 $ 304 $ (9,755) $ 11,477 $ (2,061) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Three Months Ended September 30, 2018 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 7,097 $ — $ 59,727 $ — $ — $ — $ 66,824 Securitized mortgage borrowings — (13,487) (60,393) — — — (73,880) Long-term debt — (191) — (785) — — (976) Mortgage servicing rights (2) — — — — (5,445) — (5,445) Mortgage loans held-for-sale — — — — — (6,901) (6,901) Derivative assets — IRLCs — — — — — (720) (720) Derivative liabilities — Hedging Instruments — — — — (331) 1,044 713 Total $ 7,097 $ (13,678) $ (666) $ (785) $ (5,776) $ (6,577) $ (20,385) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Nine Months Ended September 30, 2019 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 11,957 $ — $ 68,576 $ — $ — $ — $ 80,533 Securitized mortgage borrowings — (30,499) (70,594) — — — (101,093) Long-term debt — (338) — 958 — — 620 Mortgage servicing rights (2) — — — — (26,128) — (26,128) Mortgage loans held-for-sale — — — — — 17,609 17,609 Derivative assets — IRLCs — — — — — 5,572 5,572 Derivative liabilities — Hedging Instruments — — — — — 1,196 1,196 Total $ 11,957 $ (30,837) $ (2,018) (3) $ 958 $ (26,128) $ 24,377 $ (21,691) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). (3) For the nine months ended September 30, 2019, change in the fair value of net trust assets, excluding REO was $2.0 million. Recurring Fair Value Measurements Changes in Fair Value Included in Net (Loss) Earnings For the Nine Months Ended September 30, 2018 Change in Fair Value of Interest Interest Net Trust Long-term Other Revenue Gain on Sale Income (1) Expense (1) Assets Debt and Expense of Loans, net Total Securitized mortgage collateral $ 24,071 $ — $ 39,658 $ — $ — $ — $ 63,729 Securitized mortgage borrowings — (50,684) (42,848) — — — (93,532) Long-term debt — (513) — 697 — — 184 Mortgage servicing rights (2) — — — — 4,127 — 4,127 Mortgage loans held-for-sale — — — — — (12,182) (12,182) Derivative assets — IRLCs — — — — — (539) (539) Derivative liabilities — Hedging Instruments — — — — (85) 198 113 Total $ 24,071 $ (51,197) $ (3,190) (3) $ 697 $ 4,042 $ (12,523) $ (38,100) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive earnings (loss). (3) For the nine months ended September 30, 2018, change in the fair value of net trust assets, excluding REO was $3.2 million.
Schedule of information for derivative assets and liabilities - lending	Total Gains (Losses) Total Gains (Losses) Notional Amount For the Three Months Ended For the Nine Months Ended September 30, December 31, September 30, September 30, 2019 2018 2019 2018 2019 2018 Derivative – IRLC's (1) $ 502,522 $ 183,595 $ 474 $ (720) $ 5,572 $ (539) Derivative – TBA MBS (2) 616,893 88,018 759 (6,383) 10,034 Derivative – Forward delivery loan commitment 46,486 150,000 — — — — (1) Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive earnings (loss). (2) Amounts included in gain on sale of loans, net and (loss) gain on mortgage servicing rights, net within the accompanying consolidated statements of operations and comprehensive earnings (loss).
Schedule of financial and non-financial assets and liabilities measured using nonrecurring fair value measurements	Nonrecurring Fair Value Measurements Total Losses (1) Total Losses (1) September 30, 2019 For the Three Months Ended For the Nine Months Ended Level 1 Level 2 Level 3 September 30, 2019 September 30, 2019 REO (2) $ — $ 12,131 $ — $ (2,749) $ (3,848) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) At September 30, 2019, $11.9 million of REO was within the securitized mortgage trust assets. Balance represents REO at September 30, 2019, which have been impaired subsequent to foreclosure. For the three and nine months ended September 30, 2019, the Company recorded $2.7 million and $3.8 million, respectively, losses related to changes in NRV of properties. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on properties held during the period which resulted in a decrease to NRV. Nonrecurring Fair Value Measurements Total Losses (1) Total Losses (1) September 30, 2018 For the Three Months Ended For the Nine Months Ended Level 1 Level 2 Level 3 September 30, 2018 September 30, 2018 REO (2) $ — $ 9,593 $ — $ (649) $ (46) Intangible assets — — 380 (4,897) (18,347) Goodwill — — — (29,925) (104,587) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at September 30, 2018, which has been impaired subsequent to foreclosure. For the three and nine months ended September 30, 2018, the Company recorded $649 thousand and $46 thousand, respectively, in losses related to changes in NRV of properties. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on properties held during the period which resulted in a decrease to NRV.

Reconciliation of Earnings (L_2

Reconciliation of Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Reconciliation of (Loss) Earnings Per Share
Schedule of computation of basic and diluted earnings per common share	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator for basic earnings (loss) per share: Net earnings (loss) $ 1,439 $ (45,445) $ (7,300) $ (138,970) Numerator for diluted earnings (loss) per share: Net earnings (loss) $ 1,439 $ (45,445) $ (7,300) $ (138,970) Interest expense attributable to convertible notes (1) — — — — Net earnings (loss) plus interest expense attributable to convertible notes $ 1,439 $ (45,445) $ (7,300) $ (138,970) Denominator for basic earnings (loss) per share (2): Basic weighted average common shares outstanding during the period 21,195 21,071 21,179 20,996 Denominator for diluted earnings (loss) per share (2): Basic weighted average common shares outstanding during the period 21,195 21,071 21,179 20,996 Net effect of dilutive convertible notes (1) — — — — Net effect of dilutive stock options and DSU’s 64 — — — Diluted weighted average common shares 21,259 21,071 21,179 20,996 Net earnings (loss) per common share: Basic $ 0.07 $ (2.16) $ (0.34) $ (6.62) Diluted $ 0.07 $ (2.16) $ (0.34) $ (6.62) (1) Adjustments to diluted earnings (loss) per share for the convertible notes for the three and nine months ended September 30, 2019 and 2018 were excluded from the calculation, as they were anti-dilutive. (2) Number of shares presented in thousands.

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting
Reconciliation of earnings from segment to consolidated	Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Three Months Ended September 30, 2019: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 31,073 $ — $ — $ — $ 31,073 Servicing fees, net 3,465 — — — 3,465 Loss on mortgage servicing rights, net (9,755) — — — (9,755) Real estate services fees, net — 921 — — 921 Other revenue — — 68 3 71 Other operating expense (21,782) (341) (131) (3,382) (25,636) Other income (expense) 1,445 — 73 (448) 1,070 Net earnings (loss) before income tax expense $ 4,446 $ 580 $ 10 $ (3,827) 1,209 Income tax benefit (230) Net earnings $ 1,439 Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Three Months Ended September 30, 2018: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 13,673 $ — $ — $ — $ 13,673 Servicing fees, net 10,124 — — — 10,124 Loss on mortgage servicing rights, net (5,192) — — — (5,192) Real estate services fees, net — 711 — — 711 Other revenue — — 195 (124) 71 Intangible asset impairment (4,897) — — — (4,897) Goodwill impairment (29,925) — — — (29,925) Other operating expense (21,452) (372) (146) (6,339) (28,309) Other income (expense) 133 — (1,363) (459) (1,689) Net (loss) earnings before income tax expense $ (37,536) $ 339 $ (1,314) $ (6,922) $ (45,433) Income tax expense 12 Net loss $ (45,445) Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Nine Months Ended September 30, 2019: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 72,759 $ — $ — $ — $ 72,759 Servicing fees, net 9,970 — — — 9,970 Loss on mortgage servicing rights, net (25,264) — — — (25,264) Real estate services fees, net — 2,534 — — 2,534 Other revenue 36 — 166 56 258 Other operating expense (56,738) (1,073) (381) (11,348) (69,540) Other income (expense) 4,765 — (1,487) (1,357) 1,921 Net earnings (loss) before income tax expense $ 5,528 $ 1,461 $ (1,702) $ (12,649) (7,362) Income tax benefit (62) Net loss $ (7,300) Statement of Operations Items for the Mortgage Real Estate Long-term Corporate Nine Months Ended September 30, 2018: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ 53,896 $ — $ — $ — $ 53,896 Servicing fees, net 29,445 — — — 29,445 Gain on mortgage servicing rights, net 2,682 — — — 2,682 Real estate services fees, net — 3,134 — — 3,134 Other revenue — — 381 (103) 278 Intangible asset impairment (18,347) — — — (18,347) Goodwill impairment (104,587) — — — (104,587) Other operating expense (81,985) (1,601) (322) (16,673) (100,581) Other income (expense) 771 — 10 (1,343) (562) Net (loss) earnings before income tax expense $ (118,125) $ 1,533 $ 69 $ (18,119) $ (134,642) Income tax expense 4,328 Net loss $ (138,970)
Reconciliation of assets from segment to consolidated	Mortgage Real Estate Long-term Corporate Balance Sheet Items as of: Lending Services Portfolio and other Consolidated Total Assets at September 30, 2019 (1) $ 1,156,897 $ 4 $ 2,795,182 $ 23,929 $ 3,976,012 Total Assets at December 31, 2018 (1) $ 475,734 $ 126 $ 3,165,669 $ 6,414 $ 3,647,943 (1) All segment asset balances exclude intercompany balances.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Schedule of the activity related to the repurchase reserve for previously sold loans	September 30, December 31, 2019 2018 Beginning balance $ 7,657 $ 6,020 Provision for repurchases 3,618 5,074 Settlements (2,276) (3,437) Total repurchase reserve $ 8,999 $ 7,657

Equity and Share Based Paymen_2

Equity and Share Based Payments (Tables)	9 Months Ended
	Sep. 30, 2019
Summary of activity, pricing and other information for the Company's stock options	Weighted- Average Number of Exercise Shares Price Options outstanding at December 31, 2018 1,001,469 $ 13.16 Options granted 592,500 3.66 Options exercised (103,351) 3.34 Options forfeited/cancelled (457,448) 12.99 Options outstanding at September 30, 2019 1,033,170 8.78 Options exercisable at September 30, 2019 435,967 $ 14.52
Restricted stock units
Summary of activity, pricing and other information for the Company's	Weighted- Average Number of Grant Date Shares Fair Value RSU's outstanding at December 31, 2018 — $ — RSU’s granted 75,000 3.75 RSU’s issued — — RSU’s forfeited/cancelled — — RSU’s outstanding at September 30, 2019 75,000 $ 3.75
Deferred stock units
Summary of activity, pricing and other information for the Company's	Weighted- Average Number of Grant Date Shares Fair Value DSU's outstanding at December 31, 2018 24,500 $ 10.11 DSU’s granted 30,000 3.75 DSU’s issued — — DSU’s forfeited/cancelled — — DSU’s outstanding at September 30, 2019 54,500 $ 6.61
Restricted stock awards
Summary of activity, pricing and other information for the Company's	Weighted- Average Number of Grant Date Shares Fair Value RSA's outstanding at December 31, 2018 — $ — RSA’s granted 35,069 3.57 RSA’s issued — — RSA’s forfeited/cancelled — — RSA’s outstanding at September 30, 2019 35,069 $ 3.57

Summary of Business and Finan_3

Summary of Business and Financial Statement Presentation (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Recent Accounting Pronouncements
Right of use asset	$ 18,131
Deferred rent liability	3,800	$ 3,800
Lease liabilities	$ 21,653
ASU 2016-02 | Restatement adjustment
Recent Accounting Pronouncements
Right of use asset		19,700
Deferred rent liability		3,800
Lease liabilities		$ 23,400

Mortgage Loans Held-for-Sale (D

Mortgage Loans Held-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Mortgage loans held-for-Sale
Fair value adjustment	$ 22,049		$ 22,049		$ 4,440
Total mortgage loans held-for-sale	1,038,942		1,038,942		353,601
Gain on LHFS
Provision for repurchases			(3,618)	$ (5,435)
Total gain on sale of loans, net			52,000	71,854
Government
Mortgage loans held-for-Sale
Fair value adjustment	50,157		50,157		39,522
Conventional
Mortgage loans held-for-Sale
Fair value adjustment	779,174		779,174		53,148
Other
Mortgage loans held-for-Sale
Fair value adjustment	187,562		187,562		256,491
LHFS
Mortgage loans held-for-Sale
Carrying value	3,100		3,100		1,800
Gain on LHFS
Gain on sale of mortgage loans	32,003	$ 27,949	73,433	85,928
Premium from servicing retained loan sales	223	5,717	2,222	22,473
Unrealized gains (losses) from derivative financial instruments	2,202	324	6,768	(341)
Realized (losses) gains from derivative financial instruments	(4,225)	(537)	(7,579)	11,281
Mark to market (loss) gain on LHFS	9,275	(6,901)	17,609	(12,182)
Direct origination expenses, net	(7,947)	(9,038)	(16,076)	(47,828)
Provision for repurchases	(458)	(3,841)	(3,618)	(5,435)
Total gain on sale of loans, net	31,073	$ 13,673	72,759	$ 53,896
LHFS | 90 days or more past due
Mortgage loans held-for-Sale
Unpaid principal balance of mortgage loans held for sale	$ 3,400		$ 3,400		$ 2,300

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Changes in the fair value of MSRs
Balance at beginning of period			$ 64,728	$ 154,405	$ 154,405
Additions from servicing retained loan sales			2,222		24,879
Reductions from bulk sales					(118,313)
Other			5
Changes in fair value			(26,128)		3,757
Fair value of MSRs at end of period	$ 40,827		40,827		64,728
Total loans serviced	5,374,059		5,374,059		6,218,134
Amount pledged as collateral as part of the MSR Financing	0		0		0
Mortgage Servicing Rights Sensitivity Analysis
Change in fair value of mortgage servicing rights	(9,755)	$ (5,445)	(26,128)	4,127
Gain on sale of mortgage servicing rights			864
Realized and unrealized gains (losses) from hedging instruments		253		(1,445)
(Loss) gain on mortgage servicing rights, net	(9,755)	(5,192)	(25,264)	2,682
Servicing income, net
Contractual servicing fees	3,723	11,458	11,803	34,322
Late and ancillary fees	45	182	137	500
Subservicing and other costs	(303)	(1,516)	(1,970)	(5,377)
Servicing fees, net	3,465	$ 10,124	9,970	$ 29,445
Government
Changes in the fair value of MSRs
Total loans serviced	106,120		106,120		51,157
Conventional
Changes in the fair value of MSRs
Total loans serviced	5,267,939		5,267,939		6,165,129
NonQM
Changes in the fair value of MSRs
Total loans serviced					1,848
Mortgage servicing rights
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs	40,827		40,827		64,728
Prepayment Speed, Decrease in fair value from 10% adverse change	(2,170)		(2,170)		(1,419)
Prepayment Speed, Decrease in fair value from 20% adverse change	(4,190)		(4,190)		(2,918)
Prepayment Speed, Decrease in fair value from 30% adverse change	(6,067)		(6,067)		(4,475)
Discount Rate, Decrease in fair value from 10% adverse change	(1,216)		(1,216)		(2,345)
Discount Rate, Decrease in fair value from 20% adverse change	(2,362)		(2,362)		(4,532)
Discount Rate, Decrease in fair value from 30% adverse change	$ (3,443)		$ (3,443)		$ (6,575)

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)lease	Jan. 01, 2019USD ($)
Lessee, Lease, Description [Line Items]
Right of use (ROU) assets	$ 18,131	$ 18,131
Deferred rent liability	3,800	3,800	$ 3,800
Lease liabilities	21,653	$ 21,653
Number of operating leases | lease		4
Number of finance leases | lease		0
Cash paid for operating leases	1,200	$ 3,400
Total operating lease expense	$ 1,100	$ 3,000
ASU 2016-02 | Restatement adjustment
Lessee, Lease, Description [Line Items]
Right of use (ROU) assets			19,700
Deferred rent liability			3,800
Lease liabilities			$ 23,400

Leases - Balance sheet and quan

Leases - Balance sheet and quantitative information (Details) $ in Thousands	Sep. 30, 2019USD ($)
Lease Assets and Liabilities
Right of use (ROU) assets	$ 18,131
Balance sheet classification - ROU assets	us-gaap:OtherAssets
Lease liabilities	$ 21,653
Balance sheet classification - Operating lease liabilities	us-gaap:OtherLiabilities
Weighted average remaining lease term	4 years 10 months 6 days
Weighted average discount rate	4.80%

Leases - Maturities (Details)

Leases - Maturities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases
Additional operating leases not yet commenced	$ 0
Additional finance leases not yet commenced	0
Operating lease liabilities:
Remainder of 2019	1,325
Year 2020	5,138
Year 2021	4,593
Year 2022	4,721
Year 2023	4,867
Year 2024	3,729
Total lease commitments	24,373
Less: imputed interest	(2,720)
Total operating lease liability	$ 21,653

Goodwill and Intangible Assets

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2015	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Goodwill and Intangible Assets.
Goodwill			$ 104,600	$ 0	$ 0		$ 0
Intangible assets acquired			$ 33,100		$ 0		$ 0
Impairment of goodwill	$ 29,925	$ 74,700				$ 104,587
Impairment of intangible assets	$ 4,897	$ 13,500		$ 4,900		$ 18,347

Debt - Warehouse Borrowings (De

Debt - Warehouse Borrowings (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Warehouse Borrowings
Maximum Borrowing Capacity		$ 1,525,000
Balance Outstanding		971,595	$ 284,137
Repurchase agreement 1
Warehouse Borrowings
Maximum Borrowing Capacity		75,000
Balance Outstanding		10,406	84,897
Repurchase agreement 2
Warehouse Borrowings
Maximum Borrowing Capacity		50,000
Balance Outstanding		48,643	47,108
Repurchase agreement 3
Warehouse Borrowings
Maximum Borrowing Capacity		425,000
Balance Outstanding		209,955	35,920
Repurchase agreement 4
Warehouse Borrowings
Maximum Borrowing Capacity		200,000
Balance Outstanding		136,912	80,141
Repurchase agreement 5
Warehouse Borrowings
Maximum Borrowing Capacity	$ 300,000	175,000
Balance Outstanding		133,238	23,370
Repurchase agreement 6
Warehouse Borrowings
Maximum Borrowing Capacity		600,000
Balance Outstanding		$ 432,441	$ 12,701

Debt - MSR Financings (Details)

Debt - MSR Financings (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2018	Sep. 30, 2019	Feb. 28, 2018
Long-term Debt
Maximum Borrowing Capacity		$ 1,525,000
Line of credit | FHLMC and GNMA Financing | IMC
Long-term Debt
Maximum Borrowing Capacity	$ 60,000		$ 50,000
Maximum borrowing capacity (in percentage)	60.00%
Amount outstanding		0
Available for borrowing		$ 24,000
Line of credit | FHLMC and GNMA Financing | 1ML | IMC
Long-term Debt
Interest margin over base rate (as a percent)	3.00%

Debt - Convertible Notes (Detai

Debt - Convertible Notes (Details) - 2015 Convertible Notes $ / shares in Units, $ in Thousands	1 Months Ended
	May 31, 2015USD ($)D$ / shares
Convertible Notes
Amount of debt issued | $	$ 25,000
Interest rate of debt (as a percent)	7.50%
Transaction costs | $	$ 50
Conversion price (in dollars per share) | $ / shares	$ 21.50
Conditional conversion price (in dollars per share) | $ / shares	$ 30.10
Number of trading days for which stock price must exceed specified price | D	20
Number of consecutive trading days during which stock price must exceed specified price | D	30

Debt - Long-term Debt (Details)

Debt - Long-term Debt (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Trust Preferred Securities | LIBOR
Long-term Debt
Applicable margin (as a percent)	3.75%
Junior Subordinated Notes
Trust Preferred Securities and Junior Subordinated Notes, Fair Value
Long-term debt	$ 62,000	$ 62,000
Fair value adjustment	(18,423)	(17,144)
Total	$ 43,577	$ 44,856

Securitized Mortgage Trusts - S

Securitized Mortgage Trusts - Securitized Mortgage Trust Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Trust Assets
Total securitized mortgage trust assets	$ 2,795,117	$ 3,165,590
Mortgages secured by residential real estate
Trust Assets
Securitized mortgage collateral	2,783,256	3,157,071
REO inside trusts
Trust Assets
Real estate owned (REO)	$ 11,861	$ 8,519

Securitized Mortgage Trusts -_2

Securitized Mortgage Trusts - Securitized Mortgage Trust Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securitized Mortgage Trust Liabilities
Securitized mortgage borrowings	$ 2,777,872	$ 3,148,215

Securitized Mortgage Trusts - C

Securitized Mortgage Trusts - Change in Fair Value of Net Trust Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Change in fair value of net trust assets, including trust REO losses
Change in fair value of net trust assets, excluding REO	$ 1,025	$ (666)	$ (2,018)	$ (3,190)
Losses from REO	(2,749)	(649)	(3,848)	(46)
Change in fair value of net trust assets, including trust REO losses	$ (1,724)	$ (1,315)	$ (5,866)	$ (3,236)

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Fair value of Financial Instruments Included in the Consolidated Financial Statements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Mortgage servicing rights	$ 40,827	$ 64,728	$ 154,405
Carrying Amount
Assets
Cash and cash equivalents.	24,115	23,200
Restricted cash	13,057	6,989
Mortgage loans held for-for-sale	1,038,942	353,601
Mortgage servicing rights	40,827	64,728
Derivatives assets, lending, net	9,435	3,351
Mortgage-backed securities	10,482	1,000
Securitized mortgage collateral	2,783,256	3,157,071
Liabilities
Warehouse borrowings	971,595	284,137
Convertible notes	24,993	24,985
Long-term debt	43,577	44,856
Securitized mortgage borrowings	2,777,872	3,148,215
Derivative liabilities, lending, net		683
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents.	24,115	23,200
Restricted cash	13,057	6,989
Estimated Fair Value | Level 2
Assets
Mortgage loans held for-for-sale	1,038,942	353,601
Derivatives assets, lending, net	512
Mortgage-backed securities	10,482	1,000
Liabilities
Warehouse borrowings	971,595	284,137
Derivative liabilities, lending, net		683
Estimated Fair Value | Level 3
Assets
Mortgage servicing rights	40,827	64,728
Derivatives assets, lending, net	8,923	3,351
Securitized mortgage collateral	2,783,256	3,157,071
Liabilities
Convertible notes	24,993	24,985
Long-term debt	43,577	44,856
Securitized mortgage borrowings	$ 2,777,872	$ 3,148,215

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Mortgage servicing rights	$ 40,827	$ 64,728	$ 154,405
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	73.00%	90.00%
Percentage of level three liabilities to total liabilities measured at fair value	99.00%	99.00%
Recurring basis | Level 2
Assets
Mortgage-backed securities	$ 10,482	$ 1,000
Mortgage loans held for-for-sale	1,038,942	353,601
Derivatives assets, lending, net	512
Total assets at fair value	1,049,936	354,601
Liabilities
Derivative liabilities, lending, net		683
Total liabilities at fair value		683
Recurring basis | Level 3
Assets
Derivatives assets, lending, net	8,923	3,351
Mortgage servicing rights	40,827	64,728
Securitized mortgage collateral	2,783,256	3,157,071
Total assets at fair value	2,833,006	3,225,150
Liabilities
Securitized mortgage borrowings	2,777,872	3,148,215
Long-term debt	43,577	44,856
Total liabilities at fair value	2,821,449	3,193,071
Recurring basis | Derivative assets, lending, net | Interest rate lock commitments. net (IRLCs) | Level 3
Assets
Total assets at fair value	8,900	$ 3,400
Recurring basis | Derivative assets, lending, net | Hedging Instruments | Level 3
Assets
Total assets at fair value	$ 512

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Reconciliation of All Assets and Liabilities Measured Using Level 3 Input (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in fair value of liabilities during the period
Net interest income including cash received and paid	$ 2,600	$ 1,900	$ 6,700	$ 5,900
Securitized mortgage borrowings
Changes in fair value of assets during the period
Fair value at the beginning of the period	(2,915,156)	(3,393,721)	(3,148,215)	(3,653,265)
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(12,657)	(73,880)	(101,093)	(93,532)
Purchases, issuances and settlements
Settlements	149,941	171,359	471,436	450,555
Fair value at the end of the period	(2,777,872)	(3,296,242)	(2,777,872)	(3,296,242)
Unrealized gains (losses) still held	264,168	402,084
Securitized mortgage borrowings | Interest expense
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(6,748)	(13,487)	(30,499)	(50,684)
Securitized mortgage borrowings | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(5,909)	(60,393)	(70,594)	(42,848)
Long-term debt
Changes in fair value of assets during the period
Fair value at the beginning of the period	(43,910)	(45,787)	(44,856)	(44,982)
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	333	(951)	1,279	(1,756)
Purchases, issuances and settlements
Fair value at the end of the period	(43,577)	(46,738)	(43,577)	(46,738)
Unrealized gains (losses) still held	18,423	15,262
Long-term debt | Interest expense
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(115)	(191)	(338)	(513)
Long-term debt | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	304	(785)	958	697
Long-term debt | Change in instrument specific credit risk
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	144	25	659	(1,940)
Contingent consideration
Changes in fair value of assets during the period
Fair value at the beginning of the period				(554)
Purchases, issuances and settlements
Settlements				554
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	2,920,849	3,401,037	3,157,071	3,662,008
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	8,685	66,824	80,533	63,729
Purchases, issuances and settlements
Settlements	(146,278)	(165,669)	(454,348)	(423,545)
Fair value at the end of the period	2,783,256	3,302,192	2,783,256	3,302,192
Unrealized gains (losses) still held	(235,050)	(403,516)
Securitized mortgage collateral | Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	1,751	7,097	11,957	24,071
Securitized mortgage collateral | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	6,934	59,727	68,576	39,658
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	50,346	180,733	64,728	154,405
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(9,755)	(5,445)	(26,128)	4,127
Purchases, issuances and settlements
Issuances	223	5,717	2,222	22,473
Settlements	13		5
Fair value at the end of the period	40,827	181,005	40,827	181,005
Unrealized gains (losses) still held	40,827	181,005
Mortgage servicing rights | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(9,755)	(5,445)	(26,128)	4,127
Interest rate lock commitments. net (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	8,449	4,538	3,351	4,357
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	474	(720)	5,572	(539)
Purchases, issuances and settlements
Fair value at the end of the period	8,923	3,818	8,923	3,818
Unrealized gains (losses) still held	8,923	3,818
Interest rate lock commitments. net (IRLCs) | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	$ 474	$ (720)	$ 5,572	$ (539)

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Valuation Techniques And Unobservable Inputs Applied (Details) - Level 3	Sep. 30, 2019USD ($)
Securitized mortgage borrowings | DCF
Valuation techniques
Estimated fair value of liabilities	$ (2,777,872,000)
Securitized mortgage borrowings | Measurement Input, Default Rate | DCF | Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	0.01
Securitized mortgage borrowings | Measurement Input, Default Rate | DCF | Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	4.1
Securitized mortgage borrowings | Measurement Input, Default Rate | DCF | Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	1.6
Securitized mortgage borrowings | Measurement Input, Loss Severity | DCF | Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	4.4
Securitized mortgage borrowings | Measurement Input, Loss Severity | DCF | Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	99.9
Securitized mortgage borrowings | Measurement Input, Loss Severity | DCF | Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	47.3
Securitized mortgage borrowings | Measurement Input, Discount Rate | DCF | Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	2.5
Securitized mortgage borrowings | Measurement Input, Discount Rate | DCF | Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	25
Securitized mortgage borrowings | Measurement Input, Discount Rate | DCF | Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	3.6
Long-term debt | DCF
Valuation techniques
Estimated fair value of liabilities	$ (43,577,000)
Long-term debt | Measurement Input, Discount Rate | DCF
Unobservable input
Measurement input, long-term debt	9
Long-term debt | Measurement Input, Discount Rate | DCF | Weighted Average
Unobservable input
Measurement input, long-term debt	9
Securitized mortgage collateral | DCF
Valuation techniques
Estimated fair value of assets	$ 2,783,256,000
Securitized mortgage collateral | Measurement Input, Prepayment Rate | DCF | Minimum
Unobservable input
Measurement input, securitized mortgage collateral	3.4
Securitized mortgage collateral | Measurement Input, Prepayment Rate | DCF | Maximum
Unobservable input
Measurement input, securitized mortgage collateral	29.5
Securitized mortgage collateral | Measurement Input, Prepayment Rate | DCF | Weighted Average
Unobservable input
Measurement input, securitized mortgage collateral	7
Mortgage servicing rights | DCF
Valuation techniques
Estimated fair value of assets	$ 40,827,000
Mortgage servicing rights | Measurement Input, Prepayment Rate | DCF | Minimum
Unobservable input
Measurement input, mortgage servicing rights	8
Mortgage servicing rights | Measurement Input, Prepayment Rate | DCF | Maximum
Unobservable input
Measurement input, mortgage servicing rights	86.6
Mortgage servicing rights | Measurement Input, Prepayment Rate | DCF | Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	18.2
Mortgage servicing rights | Measurement Input, Discount Rate | DCF | Minimum
Unobservable input
Measurement input, mortgage servicing rights	9
Mortgage servicing rights | Measurement Input, Discount Rate | DCF | Maximum
Unobservable input
Measurement input, mortgage servicing rights	13
Mortgage servicing rights | Measurement Input, Discount Rate | DCF | Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	9.2
Interest rate lock commitments. net (IRLCs) | Market pricing
Valuation techniques
Estimated fair value of assets	$ 8,923,000
Interest rate lock commitments. net (IRLCs) | Measurement Input, Pull-through Rate | Market pricing | Minimum
Unobservable input
Measurement input, derivative assets - IRLCs, net	9
Interest rate lock commitments. net (IRLCs) | Measurement Input, Pull-through Rate | Market pricing | Maximum
Unobservable input
Measurement input, derivative assets - IRLCs, net	99.9
Interest rate lock commitments. net (IRLCs) | Measurement Input, Pull-through Rate | Market pricing | Weighted Average
Unobservable input
Measurement input, derivative assets - IRLCs, net	79.5

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Changes in Recurring Fair Value Measurements Included in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Change in Fair Value Included in Net Earnings (Loss)
Total		$ (20,385)
Change in fair value of net trust assets, excluding REO			$ (2,018)	$ (3,190)
Securitized mortgage collateral
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	$ 22,049		22,049		$ 4,440
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	5,374,059		5,374,059		6,218,134
Forward delivery loan commitment
Derivative assets and liabilities
Derivative Liability, Notional Amount	46,486		46,486		150,000
Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of net trust assets, excluding REO			2,000	3,200
Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(73,880)
Derivative liabilities, net, securitized trusts | Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		713
Derivative liabilities, net, securitized trusts | TBA's
Derivative assets and liabilities
Derivative Liability, Notional Amount	616,893		616,893		88,018
Derivative, Gain (Loss) on Derivative, Net	(2,497)	759	(6,383)	10,034
Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(976)
Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		66,824
Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(5,445)
Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(6,901)
Derivative assets - IRLCs
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(720)
Derivative assets - IRLCs | Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities
Derivative Liability, Notional Amount	502,522		502,522		183,595
Derivative, Gain (Loss) on Derivative, Net	474	(720)	5,572	(539)
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Total	(2,061)		(21,691)	(38,100)
Recurring basis | Interest income
Change in Fair Value Included in Net Earnings (Loss)
Total	1,751	7,097	11,957	24,071
Recurring basis | Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(6,863)	(13,678)	(30,837)	(51,197)
Recurring basis | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	1,025	(666)	(2,018)	(3,190)
Recurring basis | Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total	304	(785)	958	697
Recurring basis | Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(9,755)	(5,776)	(26,128)	4,042
Recurring basis | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	11,477	(6,577)	24,377	(12,523)
Recurring basis | Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(12,657)		(101,093)	(93,532)
Recurring basis | Securitized mortgage borrowings | Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(6,748)	(13,487)	(30,499)	(50,684)
Recurring basis | Securitized mortgage borrowings | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(5,909)	(60,393)	(70,594)	(42,848)
Recurring basis | Derivative liabilities, net, securitized trusts | Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	1,728		1,196	113
Recurring basis | Derivative liabilities, net, securitized trusts | Hedging Instruments | Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(331)		(85)
Recurring basis | Derivative liabilities, net, securitized trusts | Hedging Instruments | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	1,728	1,044	1,196	198
Recurring basis | Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	189		620	184
Recurring basis | Long-term debt | Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(115)	(191)	(338)	(513)
Recurring basis | Long-term debt | Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	304	(785)	958	697
Recurring basis | Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	8,685		80,533	63,729
Recurring basis | Securitized mortgage collateral | Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	1,751	7,097	11,957	24,071
Recurring basis | Securitized mortgage collateral | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,934	59,727	68,576	39,658
Recurring basis | Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(9,755)		(26,128)	4,127
Recurring basis | Mortgage servicing rights | Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(9,755)	(5,445)	(26,128)	4,127
Recurring basis | Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	9,275		17,609	(12,182)
Recurring basis | Mortgage loans held-for-sale | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	9,275	(6,901)	17,609	(12,182)
Recurring basis | Derivative assets - IRLCs
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	474		5,572	(539)
Recurring basis | Derivative assets - IRLCs | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	474	$ (720)	5,572	$ (539)
Recurring basis | Level 3
Long-term debt
Estimated fair value of long-term debt	43,577		43,577		$ 44,856
Recurring basis | Level 3 | Long-term debt
Long-term debt
Long-term debt unpaid principal balance	62,000		62,000
Estimated fair value of long-term debt	43,600		43,600
Difference between aggregate unpaid principal balances and fair value of long-term debt	18,400		18,400
Recurring basis | Level 3 | Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	3,000,000		3,000,000
Estimated fair value of securitized mortgage collateral	2,800,000		2,800,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	200		200
Unpaid principal balance of loans 90 days or more past due	400,000		400,000
Estimated fair value of loans 90 days or more past due	100,000		100,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	300,000		300,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	3,000,000		3,000,000
Estimated fair value of securitized mortgage borrowings	2,800,000		2,800,000
Bond losses	2,200,000		2,200,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 200,000		$ 200,000

Fair Value of Financial Instr_8

Fair Value of Financial Instruments - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2015
Fair Value Measurements
Intangible assets	$ 0			$ 0	$ 0
Goodwill	0			0	0		$ 104,600
Retained earnings	(1,156,342)			(1,149,042)	(1,156,342)
Total Losses
Intangible asset impairment		$ (4,897)	$ (13,500)	$ (4,900)		$ (18,347)
Goodwill impairment		(29,925)	$ (74,700)			(104,587)
Securitized Mortgage Trust Assets
Fair Value Measurements
REO	11,900				11,900
Nonrecurring Fair Value Measurements
Total Losses
REO	(2,749)	(649)			(3,848)	(46)
Intangible asset impairment		(4,897)				(18,347)
Goodwill impairment		(29,925)				(104,587)
Nonrecurring Fair Value Measurements | Level 2
Fair Value Measurements
REO	$ 12,131	9,593			$ 12,131	9,593
Nonrecurring Fair Value Measurements | Level 3
Fair Value Measurements
Intangible assets		$ 380				$ 380

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income taxes
Income tax (benefit) expense	$ (230)	$ 12	$ (62)	$ 4,328
Accumulated other comprehensive earnings	24,433		24,433		$ 23,877
Accumulated other comprehensive earnings, tax	$ 11,200		$ 11,200
Federal
Income taxes
Net operating loss carryforwards					564,600
State
Income taxes
Net operating loss carryforwards					$ 386,000

Reconciliation of Earnings (L_3

Reconciliation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator for basic earnings (loss) per share:
Net earnings (loss)	$ 1,439			$ (45,445)			$ (7,300)	$ (138,970)
Numerator for diluted earnings (loss) per share:
Net earnings (loss)	1,439	$ 3,873	$ (12,612)	(45,445)	$ (97,398)	$ 3,873	(7,300)	(138,970)
Net earnings (loss) plus interest expense attributable to convertible notes	$ 1,439			$ (45,445)			$ (7,300)	$ (138,970)
Denominator for basic earnings (loss) per share:
Basic weighted average common shares outstanding during the period	21,195			21,071			21,179	20,996
Denominator for diluted earnings (loss) per share:
Basic weighted average common shares outstanding during the period	21,195			21,071			21,179	20,996
Net effect of dilutive stock options and DSU's	64
Diluted weighted average common shares	21,259			21,071			21,179	20,996
Basic (in dollars per share)	$ 0.07			$ (2.16)			$ (0.34)	$ (6.62)
Diluted (in dollars per share)	$ 0.07			$ (2.16)			$ (0.34)	$ (6.62)
Convertible Debt Notes
Denominator for diluted earnings (loss) per share:
Antidilutive securities excluded from weighted average share calculations (in shares)	1,200			1,200			1,200	1,200
Stock options
Denominator for diluted earnings (loss) per share:
Antidilutive securities excluded from weighted average share calculations (in shares)	477			1,200			1,000	1,200

Segment Reporting - Statement o

Segment Reporting - Statement of Operations Items (Details) $ in Thousands	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)
Segment Reporting
Number of reportable segments | item								3
Gain on sale of loans, net	$ 31,073			$ 13,673				$ 72,759	$ 53,896
Servicing fees, net	3,465			10,124				9,970	29,445
(Loss) gain on mortgage servicing rights, net	(9,755)			(5,192)				(25,264)	2,682
Real estate services fees, net	921			711				2,534	3,134
Other revenue	71			71				258	278
Intangible asset impairment				(4,897)	$ (13,500)		$ (4,900)		(18,347)
Goodwill impairment				(29,925)	(74,700)				(104,587)
Other operating expense	(25,636)			(28,309)				(69,540)	(100,581)
Other income (expense)	1,070			(1,689)				1,921	(562)
Earnings (loss) before income taxes	1,209			(45,433)				(7,362)	(134,642)
Income tax expense (benefit)	(230)			12				(62)	4,328
Net earnings (loss)	1,439	$ 3,873	$ (12,612)	(45,445)	$ (97,398)	$ 3,873		(7,300)	(138,970)
Corporate and other
Segment Reporting
Other revenue	3			(124)				56	(103)
Other operating expense	(3,382)			(6,339)				(11,348)	(16,673)
Other income (expense)	(448)			(459)				(1,357)	(1,343)
Earnings (loss) before income taxes	(3,827)			(6,922)				(12,649)	(18,119)
Mortgage Lending | Operating segments
Segment Reporting
Gain on sale of loans, net	31,073			13,673				72,759	53,896
Servicing fees, net	3,465			10,124				9,970	29,445
(Loss) gain on mortgage servicing rights, net	(9,755)			(5,192)				(25,264)	2,682
Other revenue								36
Intangible asset impairment				(4,897)					(18,347)
Goodwill impairment				(29,925)					(104,587)
Other operating expense	(21,782)			(21,452)				(56,738)	(81,985)
Other income (expense)	1,445			133				4,765	771
Earnings (loss) before income taxes	4,446			(37,536)				5,528	(118,125)
Real Estate Services | Operating segments
Segment Reporting
Real estate services fees, net	921			711				2,534	3,134
Other operating expense	(341)			(372)				(1,073)	(1,601)
Earnings (loss) before income taxes	580			339				1,461	1,533
Long-term Portfolio | Operating segments
Segment Reporting
Other revenue	68			195				166	381
Other operating expense	(131)			(146)				(381)	(322)
Other income (expense)	73			(1,363)				(1,487)	10
Earnings (loss) before income taxes	$ 10			$ (1,314)				$ (1,702)	$ 69

Segment Reporting - Balance She

Segment Reporting - Balance Sheet Items (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Segment Reporting
Total assets	$ 3,976,012	$ 3,647,943
Operating segments
Segment Reporting
Total assets	23,929	6,414
Mortgage Lending | Operating segments
Segment Reporting
Total assets	1,156,897	475,734
Real Estate Services | Operating segments
Segment Reporting
Total assets	4	126
Long-term Portfolio | Operating segments
Segment Reporting
Total assets	$ 2,795,182	$ 3,165,669

Commitments and Contingencies -

Commitments and Contingencies - Legal Proceedings (Details) $ in Millions	Jul. 16, 2018USD ($)item	Sep. 30, 2019	Dec. 31, 2018	Dec. 07, 2011itemdirector
Series B 9.375% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)		9.375%	9.375%
Series C 9.125% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)		9.125%	9.125%
Curtis J. Timm
Repurchase reserve
Number of directors elected by Preferred holders | director				2
Number of days within which special election for election of directors to be held	60 days
Number of quarterly dividend payments sought for Preferred holders				2
Number of quarterly dividends payments granted under judgement for Preferred holders	3
Dividend amount required to be paid by company in three quarterly payment | $	$ 1.2

Commitments and Contingencies_2

Commitments and Contingencies - Repurchase Reserve Activity (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Continuing operations repurchase reserve activity
Beginning balance	$ 7,657	$ 6,020
Provision for repurchases	3,618	5,074
Settlements	(2,276)	(3,437)
Total repurchase reserve	$ 8,999	$ 7,657

Equity and Share Based Paymen_3

Equity and Share Based Payments - Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Series B and C Preferred Stock
Equity and Share Based Payments
Outstanding liquidation preference	$ 67,400
Liquidation preference amount per share (in dollars per share)	$ 25
Series B 9.375% redeemable preferred stock
Equity and Share Based Payments
Outstanding liquidation preference	$ 32,240	$ 32,240
Series C 9.125% redeemable preferred stock
Equity and Share Based Payments
Outstanding liquidation preference	$ 35,127	$ 35,127
Curtis J. Timm | Series B 9.375% redeemable preferred stock
Equity and Share Based Payments
Liquidation preference amount per share (in dollars per share)	$ 48.44
Cumulative undeclared dividends in arrears	$ 15,600
Cumulative undeclared dividends in arrears (per share)	$ 23.44
Cumulative undeclared dividends in arrears, increase in every quarter (per share)	$ 0.5859
Amount of increase in cumulative undeclared dividends in arrears in each quarter	$ 390

Equity and Share Based Paymen_4

Equity and Share Based Payments - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019
Number of Shares
Options outstanding at beginning of period (in shares)	1,001,469
Options granted (in shares)	592,500
Options exercised (in shares)	(103,351)
Options forfeited / cancelled (in shares)	(457,448)
Options outstanding at end of year (in shares)	1,033,170
Options exercisable at end of year (in shares)	435,967
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share)	$ 13.16
Options granted (in dollars per share)	3.66
Options exercised (in dollars per share)	3.34
Options forfeited / cancelled (in dollars per share)	12.99
Options outstanding at end of year (in dollars per share)	8.78
Options exercisable at end of year (in dollars per share)	$ 14.52
Additional disclosure related to options
Unrecognized compensation cost	$ 1
Weighted-average period over which compensation cost is expected to be recognized	2 years 1 month 6 days

Equity and Share Based Paymen_5

Equity and Share Based Payments - Deferred Stock Units (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Restricted stock units
Number of Shares
Granted (in shares) | shares	75,000
Outstanding at end of year (in shares) | shares	75,000
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares	$ 3.75
Outstanding at end of year (in dollars per share) | $ / shares	$ 3.75
Additional information regarding DSUs
Unrecognized compensation cost | $	$ 226
Weighted-average period over which compensation cost is expected to be recognized	2 years 4 months 24 days
Deferred stock units
Number of Shares
Outstanding at beginning of year (in shares) | shares	24,500
Granted (in shares) | shares	30,000
Outstanding at end of year (in shares) | shares	54,500
Weighted-Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) | $ / shares	$ 10.11
Granted (in dollars per share) | $ / shares	3.75
Outstanding at end of year (in dollars per share) | $ / shares	$ 6.61
Additional information regarding DSUs
Unrecognized compensation cost | $	$ 111
Weighted-average period over which compensation cost is expected to be recognized	2 years 1 month 6 days
Restricted stock awards
Number of Shares
Granted (in shares) | shares	35,069
Outstanding at end of year (in shares) | shares	35,069
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares	$ 3.57
Outstanding at end of year (in dollars per share) | $ / shares	$ 3.57
Additional information regarding DSUs
Unrecognized compensation cost | $	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event	Oct. 23, 2019shareholder$ / shares
Subsequent Events
Rolling time period used for measurement of ownership increase of five-percent shareholders	3 years
Threshold percentage of outstanding stock in an unapproved stock purchase that would trigger activation of rights under the Rights Plan	4.99%
Redemption price of rights issued under Rights Plan | $ / shares	$ 0.001
Term of Rights Plan	3 years
Minimum
Subsequent Events
Number of five-percent stockholders which, in the event of an increase in their ownership percentage by more than fifty percent, could result in the entity experiencing an ownership change | shareholder	1
Percentage of ownership increase by five-percent shareholders which could potentially trigger an ownership change	50.00%