Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | ARBOR REALTY TRUST INC | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 111,246,371 | ||
Entity Central Index Key | 0001253986 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 1,060 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 299,687 | $ 160,063 |
Restricted cash | 210,875 | 180,606 |
Loans and investments, net | 4,189,960 | 3,200,145 |
Loans held-for-sale, net | 861,360 | 481,664 |
Capitalized mortgage servicing rights, net | 286,420 | 273,770 |
Securities held-to-maturity, net | 88,699 | 76,363 |
Investments in equity affiliates | 41,800 | 21,580 |
Real estate owned, net | 13,220 | 14,446 |
Due from related party | 10,651 | 1,287 |
Goodwill and other intangible assets | 110,700 | 116,165 |
Other assets | 125,788 | 86,086 |
Total assets | 6,239,160 | 4,612,175 |
Liabilities and Equity: | ||
Credit facilities and repurchase agreements | 1,678,288 | 1,135,627 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt fund | 68,629 | 68,183 |
Senior unsecured notes | 319,799 | 122,484 |
Convertible senior unsecured notes, net | 284,152 | 254,768 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 140,949 | 140,259 |
Due to related party | 13,100 | |
Due to borrowers | 79,148 | 78,662 |
Allowance for loss-sharing obligations | 34,648 | 34,298 |
Other liabilities | 134,299 | 118,780 |
Total liabilities | 4,883,133 | 3,546,609 |
Commitments and contingencies (Note 15) | ||
Arbor Realty Trust, Inc. stockholders' equity: | ||
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized; special voting preferred shares; 20,484,094 and 20,653,584 shares issued and outstanding, respectively; 8.25% Series A, $38,788 aggregate liquidation preference; 1,551,500 shares issued and outstanding; 7.75% Series B, $31,500 aggregate liquidation preference; 1,260,000 shares issued and outstanding; 8.50% Series C, $22,500 aggregate liquidation preference; 900,000 shares issued and outstanding | 89,501 | 89,502 |
Common stock, $0.01 par value: 500,000,000 shares authorized; 109,706,214 and 83,987,707 shares issued and outstanding, respectively | 1,097 | 840 |
Additional paid-in capital | 1,154,932 | 879,029 |
Accumulated deficit | (60,920) | (74,133) |
Total Arbor Realty Trust, Inc. stockholders' equity | 1,184,610 | 895,238 |
Noncontrolling interest | 171,417 | 170,328 |
Total equity | 1,356,027 | 1,065,566 |
Total liabilities and equity | $ 6,239,160 | $ 4,612,175 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 109,706,214 | 83,987,707 |
Common stock, shares outstanding (in shares) | 109,706,214 | 83,987,707 |
Assets | $ 6,239,160 | $ 4,612,175 |
Liabilities | 4,883,133 | 3,546,609 |
Consolidated variable interest entities | ||
Assets | 2,784,756 | 2,198,096 |
Liabilities | $ 2,209,599 | $ 1,665,139 |
Special voting preferred shares | ||
Preferred stock, shares issued (in shares) | 20,484,094 | 20,653,584 |
Preferred stock, shares outstanding (in shares) | 20,484,094 | 20,653,584 |
8.25% Series A preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% |
Preferred stock, aggregate liquidation preference | $ 38,788 | $ 38,788 |
Preferred stock, shares issued (in shares) | 1,551,500 | 1,551,500 |
Preferred stock, shares outstanding (in shares) | 1,551,500 | 1,551,500 |
7.75% Series B preferred stock | ||
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% |
Preferred stock, aggregate liquidation preference | $ 31,500 | $ 31,500 |
Preferred stock, shares issued (in shares) | 1,260,000 | 1,260,000 |
Preferred stock, shares outstanding (in shares) | 1,260,000 | 1,260,000 |
8.50% Series C preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.50% | 8.50% |
Preferred stock, aggregate liquidation preference | $ 22,500 | $ 22,500 |
Preferred stock, shares issued (in shares) | 900,000 | 900,000 |
Preferred stock, shares outstanding (in shares) | 900,000 | 900,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Interest income | $ 315,940 | $ 251,768 | $ 156,177 |
Interest expense | 186,399 | 153,818 | 90,072 |
Net interest income | 129,541 | 97,950 | 66,105 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 65,652 | 70,002 | 72,799 |
Mortgage servicing rights | 90,761 | 98,839 | 76,820 |
Servicing revenue, net | 54,542 | 46,034 | 29,210 |
Property operating income | 9,674 | 10,095 | 10,973 |
Other income, net | (784) | 8,161 | 685 |
Total other revenue | 219,845 | 233,131 | 190,487 |
Other expenses: | |||
Employee compensation and benefits | 122,102 | 110,470 | 92,126 |
Selling and administrative | 40,329 | 37,074 | 30,738 |
Property operating expenses | 10,220 | 10,431 | 10,482 |
Depreciation and amortization | 7,510 | 7,453 | 7,385 |
Impairment loss on real estate owned | 1,000 | 2,000 | 3,200 |
Provision for loss sharing (net of recoveries) | 1,147 | 3,843 | (259) |
Provision for loan losses (net of recoveries) | 8,353 | (456) | |
Litigation settlement gain | (10,170) | ||
Management fee - related party | 6,673 | ||
Total other expenses | 182,308 | 169,454 | 149,889 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 167,078 | 161,627 | 106,703 |
(Loss) gain on extinguishment of debt | (7,439) | (5,041) | 7,116 |
Income (loss) from equity affiliates | 10,635 | 1,196 | (2,951) |
Provision for income taxes | (15,036) | (9,731) | (13,359) |
Net income | 155,238 | 148,051 | 97,509 |
Preferred stock dividends | 7,554 | 7,554 | 7,554 |
Net income attributable to noncontrolling interest | 26,610 | 32,185 | 24,120 |
Net income attributable to common stockholders | $ 121,074 | $ 108,312 | $ 65,835 |
Basic earnings per common share (in dollars per share) | $ 1.30 | $ 1.54 | $ 1.14 |
Diluted earnings per common share (in dollars per share) | $ 1.27 | $ 1.50 | $ 1.12 |
Weighted average shares outstanding: | |||
Basic (in shares) | 92,851,327 | 70,208,165 | 57,890,574 |
Diluted (in shares) | 116,192,951 | 93,642,168 | 80,311,252 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 155,238 | $ 148,051 | $ 97,509 |
Reclassification of net unrealized gains on available-for-sale securities into accumulated deficit | (176) | ||
Unrealized loss on securities available-for-sale, at fair value | (382) | ||
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 237 | ||
Comprehensive income | 155,238 | 147,875 | 97,364 |
Less: | |||
Comprehensive income attributable to noncontrolling interest | 26,610 | 32,142 | 24,091 |
Preferred stock dividends | 7,554 | 7,554 | 7,554 |
Comprehensive income attributable to common stockholders | $ 121,074 | $ 108,179 | $ 65,719 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Preferred Stock | Common StockPreferred stock of private REIT | Common Stock | Additional Paid-in CapitalPreferred stock of private REIT | Additional Paid-in Capital | Accumulated DeficitPreferred stock of private REIT | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Arbor Realty Trust, Inc. Stockholders' EquityPreferred stock of private REIT | Total Arbor Realty Trust, Inc. Stockholders' Equity | Noncontrolling Interest | Preferred stock of private REIT | Total |
Balance at Dec. 31, 2016 | $ 89,508 | $ 514 | $ 621,932 | $ (125,134) | $ 321 | $ 587,141 | $ 159,897 | $ 747,038 | |||||
Balance (in shares) at Dec. 31, 2016 | 24,942,269 | 51,401,295 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Issuance of common stock | $ 95 | 76,130 | 76,225 | 76,225 | |||||||||
Issuance of common stock (in shares) | 9,500,000 | ||||||||||||
Issuance of convertible senior unsecured notes, net | 4,556 | 4,556 | 4,556 | ||||||||||
Stock-based compensation | $ 8 | 4,832 | 4,840 | 4,840 | |||||||||
Stock-based compensation (in shares) | 827,283 | ||||||||||||
Forfeiture of unvested restricted stock (in shares) | (5,191) | ||||||||||||
Distributions - common stock | (42,612) | (42,612) | (42,612) | ||||||||||
Distributions - preferred stock | (7,554) | (7,554) | (7,554) | ||||||||||
Distributions - preferred stock of private REIT | $ (15) | $ (15) | $ (15) | ||||||||||
Distributions - noncontrolling interest | (15,286) | (15,286) | |||||||||||
Unrealized gain (loss) on securities available-for-sale | (382) | ||||||||||||
Unrealized loss on derivative financial instruments, net | (382) | (382) | (382) | ||||||||||
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 237 | 237 | 237 | ||||||||||
Net income | 73,389 | 73,389 | 24,120 | 97,509 | |||||||||
Balance at Dec. 31, 2017 | $ 89,508 | $ 617 | 707,450 | (101,926) | 176 | 695,825 | 168,731 | 864,556 | |||||
Balance (in shares) at Dec. 31, 2017 | 24,942,269 | 61,723,387 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Issuance of common stock | $ 152 | 156,265 | 156,417 | 156,417 | |||||||||
Issuance of common stock (in shares) | 15,152,700 | ||||||||||||
Repurchase of common stock | $ (9) | (10,057) | (10,066) | (10,066) | |||||||||
Repurchase of common stock (in shares) | (870,000) | ||||||||||||
Issuance of common stock from convertible debt | $ 73 | 80,118 | 80,191 | 80,191 | |||||||||
Issuance of common stock from convertible debt (in shares) | 7,296,893 | ||||||||||||
Issuance of convertible senior unsecured notes, net | 9,436 | 9,436 | 9,436 | ||||||||||
Extinguishment of convertible senior unsecured notes | (70,271) | (70,271) | (70,271) | ||||||||||
Stock-based compensation | $ 7 | 6,088 | 6,095 | 6,095 | |||||||||
Stock-based compensation (in shares) | 691,015 | ||||||||||||
Forfeiture of unvested restricted stock (in shares) | (6,288) | ||||||||||||
Distributions - common stock | (80,681) | (80,681) | (80,681) | ||||||||||
Distributions - preferred stock | (7,554) | (7,554) | (7,554) | ||||||||||
Distributions - preferred stock of private REIT | (14) | (14) | (14) | ||||||||||
Distributions - noncontrolling interest | (23,749) | (23,749) | |||||||||||
Redemption of operating partnership units | $ (6) | (6) | (6,839) | (6,845) | |||||||||
Redemption of operating partnership units (in shares) | (577,185) | ||||||||||||
Reclassification of net unrealized gains on available-for-sale securities into accumulated deficit | 176 | $ (176) | (176) | ||||||||||
Net income | 115,866 | 115,866 | 32,185 | 148,051 | |||||||||
Balance at Dec. 31, 2018 | $ 89,502 | $ 840 | 879,029 | (74,133) | 895,238 | 170,328 | 1,065,566 | ||||||
Balance (in shares) at Dec. 31, 2018 | 24,365,084 | 83,987,707 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Issuance of common stock | $ 198 | 260,185 | 260,383 | 260,383 | |||||||||
Issuance of common stock (in shares) | 19,837,000 | ||||||||||||
Repurchase of common stock | $ (9) | $ (11,565) | $ (11,574) | $ (11,574) | |||||||||
Repurchase of common stock (in shares) | (920,000) | (920,000) | |||||||||||
Issuance of common stock upon vesting of restricted stock units | $ 2 | (2,904) | (2,902) | (2,902) | |||||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 203,492 | ||||||||||||
Net settlement on vesting of restricted stock | $ (1) | (731) | (732) | (732) | |||||||||
Net settlement on vesting of restricted stock (in shares) | (58,070) | ||||||||||||
Issuance of common stock from convertible debt | $ 47 | 69,232 | 69,279 | 69,279 | |||||||||
Issuance of common stock from convertible debt (in shares) | 4,695,653 | ||||||||||||
Issuance of convertible senior unsecured notes, net | 8,684 | 8,684 | 8,684 | ||||||||||
Extinguishment of convertible senior unsecured notes | (69,510) | (69,510) | (69,510) | ||||||||||
Stock-based compensation | $ 8 | 9,506 | 9,514 | 9,514 | |||||||||
Stock-based compensation (in shares) | 818,443 | ||||||||||||
Forfeiture of unvested restricted stock (in shares) | (18,120) | ||||||||||||
Issuance of common stock from special dividend | $ 9 | 10,070 | 10,079 | 10,079 | |||||||||
Issuance of common stock from special dividend (in shares) | 901,432 | ||||||||||||
Issuance of operating partnership units and special voting preferred stock from special dividend | $ 2 | 2 | 2,476 | 2,478 | |||||||||
Issuance of operating partnership units and special voting preferred stock from special dividend (in shares) | 221,666 | ||||||||||||
Distributions - common stock | (107,846) | (107,846) | (107,846) | ||||||||||
Distributions - preferred stock | (7,554) | (7,554) | (7,554) | ||||||||||
Distributions - preferred stock of private REIT | (15) | (15) | (15) | ||||||||||
Distributions - noncontrolling interest | (23,387) | (23,387) | |||||||||||
Redemption of operating partnership units | $ (3) | $ 3 | 2,936 | 2,936 | (4,610) | (1,674) | |||||||
Redemption of operating partnership units (in shares) | (391,156) | 258,677 | |||||||||||
Net income | 128,628 | 128,628 | 26,610 | 155,238 | |||||||||
Balance at Dec. 31, 2019 | $ 89,501 | $ 1,097 | $ 1,154,932 | $ (60,920) | $ 1,184,610 | $ 171,417 | $ 1,356,027 | ||||||
Balance (in shares) at Dec. 31, 2019 | 24,195,594 | 109,706,214 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 155,238 | $ 148,051 | $ 97,509 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,510 | 7,453 | 7,385 |
Stock-based compensation | 9,514 | 6,095 | 4,840 |
Amortization and accretion of interest and fees, net | 5,045 | 9,291 | 4,682 |
Amortization of capitalized mortgage servicing rights | 48,681 | 48,124 | 47,202 |
Impairment loss on real estate owned | 1,000 | 2,000 | 3,200 |
Originations of loans held-for-sale | (4,564,032) | (5,074,662) | (4,444,939) |
Proceeds from sales of loans held-for-sale, net of gain on sale | 4,189,787 | 4,893,886 | 4,814,906 |
Mortgage servicing rights | (90,761) | (98,839) | (76,820) |
Write-off of capitalized mortgage servicing rights from payoffs | 22,425 | 25,058 | 15,832 |
Provision for loan losses (net of recoveries) | 8,353 | (456) | |
Provision for loss sharing (net of recoveries) | 1,147 | 3,843 | (259) |
Net charge-offs for loss sharing obligations | (797) | (56) | (1,638) |
Deferred tax provision (benefit) | 150 | (12,033) | (7,399) |
(Income) loss from equity affiliates | (10,635) | (1,196) | 2,951 |
Loss (gain) on extinguishment of debt | 7,439 | 5,041 | (7,116) |
Payoffs and paydowns of loans held-for-sale | 84 | 61 | 132 |
Changes in operating assets and liabilities | (8,332) | (8,205) | (308) |
Net cash (used in) provided by operating activities. | (226,537) | (37,735) | 459,704 |
Investing Activities: | |||
Loans and investments funded, originated and purchased, net | (2,712,354) | (1,545,499) | (1,867,393) |
Payoffs and paydowns of loans and investments | 1,753,691 | 960,769 | 959,696 |
Internalization of management team | (25,000) | ||
Deferred fees | 22,340 | 13,114 | 10,982 |
Investments in real estate, net | (475) | (367) | (672) |
Contributions to equity affiliates | (13,522) | (2,493) | (693) |
Distributions from equity affiliates | 213 | 3,122 | 4,671 |
Due to borrowers and reserves | (37,121) | (65,213) | 38,372 |
Purchases of securities held-to-maturity, net | (20,000) | (47,499) | (27,173) |
Payoffs and paydowns of securities held-to-maturity | 12,488 | 2,269 | 460 |
Purchases of capitalized mortgage servicing rights | (1,199) | ||
(Distributions of) proceeds from insurance settlements, net | (78) | 1,104 | |
Net cash used in investing activities | (994,740) | (681,875) | (906,845) |
Financing activities: | |||
Proceeds from repurchase agreements and credit facilities | 8,986,286 | 9,166,255 | 8,215,669 |
Paydowns and payoffs of repurchase agreements and credit facilities | (8,443,275) | (8,559,057) | (8,593,411) |
Proceeds from issuance of collateralized loan obligations | 1,067,193 | 441,000 | 918,274 |
Payoffs and paydowns of collateralized loan obligations | (529,250) | (267,750) | (219,000) |
Proceeds from issuance of convertible senior unsecured notes | 264,000 | 264,500 | 157,500 |
Extinguishment of convertible senior unsecured notes | (231,940) | (228,287) | |
Proceeds from issuance of senior unsecured notes | 200,000 | 125,000 | |
Payoffs of senior unsecured notes | (97,860) | ||
Payments of withholding taxes on net settlement of vested stock | (3,634) | ||
Proceeds from issuance of common stock | 260,383 | 156,417 | 76,225 |
Distribution for repurchase of common stock | (11,574) | (10,066) | |
Redemption of operating partnership units | (1,674) | (6,845) | |
Distributions paid on common stock | (107,846) | (68,083) | (42,612) |
Distributions paid on noncontrolling interest | (23,387) | (20,650) | (15,286) |
Distributions paid on preferred stock | (7,554) | (7,554) | (7,554) |
Distributions paid on preferred stock of private REIT | (15) | (14) | (15) |
Payoffs of related party financing | (50,000) | ||
Payment of deferred financing costs | (26,543) | (20,499) | (24,576) |
Proceeds from debt fund | 70,000 | ||
Payoffs of junior subordinated notes to subsidiary trust issuing preferred securities | (12,691) | ||
Receipts on swaps and returns of margin calls from counterparties | 430 | ||
Net cash provided by financing activities | 1,391,170 | 816,507 | 522,953 |
Net increase in cash, cash equivalents and restricted cash | 169,893 | 96,897 | 75,812 |
Cash, cash equivalents and restricted cash at beginning of period | 340,669 | 243,772 | 167,960 |
Cash, cash equivalents and restricted cash at end of period | 510,562 | 340,669 | 243,772 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents at beginning of period | 160,063 | 104,374 | 138,645 |
Restricted cash at beginning of period | 180,606 | 139,398 | 29,315 |
Cash, cash equivalents and restricted cash at beginning of period | 340,669 | 243,772 | 167,960 |
Cash and cash equivalents at end of period | 299,687 | 160,063 | 104,374 |
Restricted cash at end of period | 210,875 | 180,606 | 139,398 |
Cash, cash equivalents and restricted cash at end of period | 510,562 | 340,669 | 243,772 |
Supplemental cash flow information: | |||
Cash used to pay interest | 167,581 | 118,923 | 75,582 |
Cash used to pay taxes | 19,611 | 20,026 | 20,823 |
Supplemental schedule of non-cash investing and financing activities: | |||
Issuance of common stock from convertible debt | 69,232 | 80,118 | |
Extinguishment of convertible senior unsecured notes | (69,510) | (70,271) | |
Fair value of conversion feature of convertible senior unsecured notes | 8,453 | 9,750 | 4,703 |
Special dividend - common stock issued | 10,079 | ||
Special dividend - special voting preferred stock and operating partnership units issued | 2,478 | ||
Redemption of operating partnership units for common stock | 2,939 | ||
Distributions accrued for special dividend declared | 15,696 | ||
8.25% Series A preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 267 | 267 | 267 |
7.75% Series B preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 203 | 203 | 203 |
8.50% Series C preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | $ 159 | $ 159 | $ 159 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
8.25% Series A preferred stock | |||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% | 8.25% |
7.75% Series B preferred stock | |||
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% | 7.75% |
8.50% Series C preferred stock | |||
Preferred stock, dividend rate (as a percent) | 8.50% | 8.50% | 8.50% |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Description of Business | |
Description of Business | Note 1—Description of Business Arbor is a Maryland corporation formed in 2003. We are a nationwide REIT and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. We operate through two business segments: our Structured Business and our Agency Business. Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. We may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through Fannie Mae and Freddie Mac, Ginnie Mae, FHA and HUD. We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae DUS lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer, in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and SBL lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and sell finance products through CMBS programs and during the second half of 2019, we began to originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as "Private Label" loans. We intend to pool and securitize the Private Label loans and sell certain securities in the securitizations to third-party investors, while retaining the highest risk bottom tranche bond referred to as the "B Piece." In July 2016, we acquired the Agency platform of ACM and, in May 2017, we terminated our existing management agreement with ACM and internalized our management team. Substantially all of our operations are conducted through our operating partnership, ARLP, for which we serve as the general partner, and ARLP's subsidiaries. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | Note 2—Basis of Presentation and Significant Accounting Policies Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the retrospective adoption in 2018 of Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows, we reclassified $1.1 million of net proceeds from insurance settlements from net cash provided by operating activities to net cash used in investing activities in the 2017 consolidated cash flow statement. In addition, we adjusted the 2017 consolidated cash flow statement in connection with the retrospective adoption in 2018 of ASU 2016-18, Statement of Cash Flows: Restricted Cash, which requires changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents to be shown in the statement of cash flows. Previous guidance required the change in cash and cash equivalents be shown on the statement of cash flows, with cash used to fund restricted cash and restricted cash equivalents shown as a component of operating, investing, or financing activities. The following table shows the impact of the adoption of ASU 2016-15 and ASU 2016-18: Year Ended (in thousands) December 31, 2017 As previously reported under GAAP applicable at the time Cash and cash equivalents at beginning of period $ 138,645 Net decrease in cash and cash equivalents (34,271) Cash and cash equivalents at end of period 104,374 Net cash provided by (used in) operating activities: changes in operating assets and liabilities 822 Net cash used in investing activities (907,949) Net cash provided by financing activities 412,844 As currently reported under ASU 2016-15 and ASU 2016-18 Cash, cash equivalents and restricted cash at beginning of period $ 167,960 Net increase (decrease) in cash, cash equivalents and restricted cash 75,812 Cash, cash equivalents and restricted cash at end of period 243,772 Net cash provided by (used in) operating activities: changes in operating assets and liabilities (308) Net cash used in investing activities (906,845) Net cash provided by financing activities 522,953 Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. See Note 16 for information about our VIEs. All significant inter-company transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. As future events cannot be determined with precision, actual results could differ from those estimates. Significant Accounting Policies Cash and Cash Equivalents. All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. We place our cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and we believe that this risk is not significant. Loans, Investments and Securities. Loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses when such loan or investment is deemed to be impaired. We invest in preferred equity interests that, in some cases, allow us to participate in a percentage of the underlying property’s cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, we determine whether such investment should be accounted for as a loan, equity interest or as real estate. To date, we have determined that all such investments are properly accounted for and reported as loans. At the time of purchase, we designate a debt security as available-for-sale, held-to-maturity, or trading depending on our ability and intent for the security. Securities available-for-sale, which is included as a component of other assets in the consolidated balance sheets, is reported at fair value with the fluctuations in fair value recognized through earnings. Held-to-maturity securities are carried at cost net of any unamortized premiums or discounts, which are amortized or accreted over the life of the securities. For securities classified as held-to-maturity, an evaluation is performed as to whether a decline in fair value below the amortized cost basis is other-than-temporary. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The process includes, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as our ability and intent to hold the investment to maturity. We closely monitor market conditions on which we base such decisions. Impaired Loans, Allowance for Loan Losses and Charge-offs. We consider a loan impaired when, based upon current information, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. We evaluate each loan in our portfolio on a quarterly basis. Our loans are individually specific and unique as it relates to product type, geographic location, and collateral type, as well as to the rights and remedies and the position in the capital structure our loans have in relation to the underlying collateral. We evaluate this information at both a loan level and general market trends level when determining the appropriate assumptions such as capitalization and market discount rates, as well as the borrower’s operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We utilize internally developed valuation models and techniques primarily consisting of discounted cash flow and direct capitalization models in determining the fair value of the underlying collateral on an individual loan. We may also obtain a third party appraisal, which may value the collateral through an “as-is” or “stabilized value” methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, an allowance is created with a corresponding charge to the provision for loan losses. The allowance for each loan is maintained at a level that we believe to be adequate to absorb probable losses. Loan terms may be modified if we determine that, based on the individual circumstances of a loan and the underlying collateral, a modification would more likely increase the total recovery of the combined principal and interest from the loan. Any loan modification is predicated upon a goal of maximizing the collection of the loan. Typical triggers for a modification would include situations where the projected cash flow is insufficient to cover required debt service, when asset performance is lagging the initial projections, where there is a requirement for rebalancing, where there is an impending maturity of the loan, and where there is an actual loan default. Loan terms that have been modified have included, but are not limited to, maturity date, interest rate and, in certain cases, principal amount. Length and amounts of each modification have varied based on individual circumstances and are determined on a case by case basis. If the loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. If we receive a benefit, either monetary or strategic, and the above criteria are not met, the modification is not considered to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. Charge-offs to the allowance for loan losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. Loss on restructured loans is recorded when we have granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of income in the period in which the loan was sold. Loans Held-for-Sale, Net. Loans held-for-sale, net represents our Agency Business commercial real estate loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as our Private Label loans, which are generally sold and securitized within 180 days of loan origination. Such loans are reported at the lower of cost or market on an aggregate basis and include the value allocated to the associated future MSRs. During the period prior to its sale, interest income on a loan held-for-sale is calculated in accordance with the terms of the individual loan and the loan origination fees and direct loan origination costs are deferred until the loan is sold. All of our held-for-sale loans are financed with matched borrowings from credit facilities contracted to finance such loans. Interest income and expense are earned or incurred after a loan is closed and before a loan is sold. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated, put presumptively beyond the reach of the entity, even in bankruptcy, (2) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and the entity is constrained from pledging or exchanging the assets it receives, each third-party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (3) we or our agents do not maintain effective control over the transferred financial assets or third-party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. We have determined that all loans sold have met these specific conditions and account for all transfers of mortgage loans as completed sales. Allowance for Loss-Sharing Obligations. When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. Generally, we are responsible for losses equal to the first 5% of the UPB and a portion of any additional losses to an overall maximum of 20% of the original principal balance. Fannie Mae bears any remaining loss. In addition, under the terms of the master loss-sharing agreement with Fannie Mae, we are responsible for funding 100% of mortgage delinquencies (principal and interest) and servicing advances (taxes, insurance and foreclosure costs) until the amounts advanced exceed 5% of the UPB at the date of default. Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25% of such advances until final settlement. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. In determining the fair value of the guaranty obligation, we consider the risk profile of the collateral and the historical loss experience in our portfolio. The guaranty obligation is removed only upon either the expiration or settlement of the guaranty. We evaluate the allowance for loss-sharing obligations by monitoring the performance of each loss-sharing loan for events or conditions that may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated allowance for loss-sharing (a "specific reserve") by transferring the guarantee obligation recorded on the loan to the specific reserve with any adjustments to this reserve amount recorded in provision for loss sharing in the statements of income. The amount of the allowance considers our assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan's risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the specific reserves and update loss estimates as current information is received. Capitalized Mortgage Servicing Rights. We recognize, as separate assets, rights to service mortgage loans for others, including such rights from our origination of mortgage loans sold with the servicing rights retained, as well as rights associated with acquired MSRs. Income from MSRs related to loans we originate are recognized when we record a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value based on the discounted expected net cash flows associated with the servicing of the loan. When a mortgage loan we originate is sold, we retain the right to service the loan and recognize the MSR at the initial capitalized valuation. We amortize our MSRs using the amortization method, which requires the MSRs to be amortized over the period of estimated net servicing income or loss and that the servicing assets or liabilities be assessed for impairment, or increased obligation, based on the fair value at each reporting date. Amortization of MSRs is recorded as a reduction of servicing revenues, net in the consolidated statements of income. The following assumptions were used in calculating the fair value of our MSRs for the periods presented: Key rates: We used discount rates ranging from 8% to 15%, representing a weighted average discount rate of 12%, based on our best estimate of market discount rates to determine the present value of MSRs. The inflation rate used for adequate compensation was 3%. Servicing Cost: A market participant's estimated future cost to service the loan for the estimated life of the MSR is subtracted from the estimated future cash flows. Estimated Life: We estimate the life of our MSRs based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and are reduced using prepayment rates that consider the note rate of the loan and the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MRSs from loans we originate and sell are estimated considering market prices for similar MSRs, when available, and by estimating the present value of the future net cash flows of the capitalized MSRs, net of adequate compensation for servicing. Adequate compensation is based on the market rate of similar servicing contracts. The fair value of MSRs acquired approximate the purchase price paid. We evaluate the MSR portfolio for impairment on a quarterly basis based on the difference between the aggregate carrying amount of the MSRs and their aggregate fair value. We engage an independent third-party valuation expert to assist in determining an estimated fair value of our MSR portfolio on a quarterly basis. For purposes of impairment evaluation, the MSRs are stratified based on predominant risk characteristics of the underlying loans, which we have identified as loan type, note rate and yield maintenance provisions. To the extent that the carrying value of the MSRs exceeds fair value, a valuation allowance is established. We record write-offs of MSRs related to loans that were repaid prior to their expected maturity and loans that have defaulted and determined to be unrecoverable. When this occurs, the write-off is recorded as a direct write-down to the carrying value of MSRs and is included as a component of servicing revenue, net in the consolidated statements of income. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries. For loans that payoff prior to maturity, we may collect a prepayment fee which is included as a component of servicing revenue, net. Real Estate Owned and Held-For-Sale. Real estate acquired is recorded at its estimated fair value at acquisition and is shown net of accumulated depreciation and impairment charges. Costs incurred in connection with the acquisition of a property are expensed as incurred. We allocate the purchase price of our real estate acquisitions to land, building, tenant improvements, origination asset of the in-place leases, intangibles for the value of any above or below market leases at fair value and to any other identified intangible assets or liabilities. We amortize the value allocated to in-place leases over the remaining lease term, which is reported in depreciation and amortization expense on our consolidated statements of income. The value allocated to above or below market leases are amortized over the remaining lease term as an adjustment to rental income. Real estate assets are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. Our properties are reviewed for impairment each quarter, if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. We recognize impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset’s estimated fair value. In evaluating for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business. Impairment charges may be necessary in the event discount rates, capitalization rates, lease-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. Real estate is classified as held-for-sale when we commit to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Real estate assets that are expected to be disposed of are valued at the lower of the asset’s carrying amount or its fair value less costs to sell. We recognize sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. Gain on real estate sold is recognized when the collectability of the sale price is reasonably assured, we are not obligated to perform significant activities after the sale and when control of the asset transfers to the buyer. A gain may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. Investments in Equity Affiliates . We invest in joint ventures that are formed to invest in real estate related assets or businesses. These joint ventures are not majority owned or controlled by us, or are VIEs for which we are the primary beneficiary, and are not consolidated in our financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. We recognize an impairment loss if the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other-than-temporary. We record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income. Goodwill and Other Intangible Assets. Significant judgement is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. For intangible assets related to acquired technology, we use the replacement cost method to determine fair value. Determining the estimated useful lives of intangible assets also requires judgment. Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as broker and borrower relationships, above/below market rent and acquired technology have been deemed to have finite lives. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired product lines, scarcity of available GSE licenses, technology life cycles, retention trends and our operating plans, among other factors. Goodwill and indefinite-lived intangible assets are not amortized, while finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis. Indefinite-lived intangible assets, including goodwill, are tested for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. In addition, with respect to goodwill, an impairment analysis is performed at least annually. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step goodwill impairment test is performed. Based on the impairment analysis performed as of October 1, 2019, there was no indication that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2019. Hedging Activities and Derivatives . We measure derivative instruments at fair value and record them as assets or liabilities. Fair value adjustments will affect either accumulated other comprehensive income until the hedged item is recognized in earnings, or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use derivatives for hedging purposes rather than trading or speculation. Fair values are estimated based on current market data from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. These derivative instruments must be effective in reducing risk exposure in order to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in earnings. In cases where a derivative instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. We may also enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. The ineffective portion of a derivative’s change in fair value is recognized immediately in earnings. In connection with our interest rate risk management, we may hedge a portion of our interest rate risk by entering into derivative instrument contracts to manage differences in the amount, timing, and duration of our expected cash receipts and our expected cash payments principally related to our investments and borrowings. Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we have used, and may again in the future, use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our rate lock and forward sales commitments associated with the Agency Business meet the definition of a derivative and are recorded at fair value. The estimated fair value of rate lock commitments includes the effects of interest rate movements as well as the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Adjustments to the fair value are reflected as a component of other income, net in the consolidated statements of income. Our Swap Futures associated with (1) our Structured Business SFR loans, and (2) our held-for-sale Agency Business Private Label loans do not meet the criteria for hedge accounting and are tied to the five-year and ten-year swap rates. Our Swap Futures are cleared by a central clearing house and variation margin payments (made in cash) are treated as a legal settlement of the derivative itself, as opposed to a pledge of collateral. Realized and unrealized gains and losses related to our Swap Futures are recorded through earnings. Revenue Recognition. Interest income is recognized on the accrual basis as it is earned. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or “interest” method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in our opinion, a full recovery of all contractual principal is not probable. Income recognition is resumed when the loan becomes contractually current and performance is resumed. We record interest income on certain impaired loans to the extent cash is received, as the borrower continues to make interest payments. We record loan loss reserves related to these loans when it is deemed that full recovery of principal and accrued interest is not probable. Several of our loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to our determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If we cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. We will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves. We do not recognize interest income on loans in which the borrower has failed to make the contractual interest payment due or has not replenished the interest reserve account. Income from non-performing loans is generally recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. Additionally, interest income is recorded when earned fr |
Loans and Investments
Loans and Investments | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Investments | |
Loans and Investments | Note 3—Loans and Investments The composition of our Structured Business loan and investment portfolio is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. Wtd. Avg. First Last Remaining Dollar Dollar December 31, Percent of Loan Wtd. Avg. Months to LTV LTV 2019 Total Count Pay Rate (1) Maturity Ratio (2) Ratio (3) Bridge loans (4) $ 3,836,832 90 % 217 5.77 % 18.0 0 % 75 % Mezzanine loans 191,575 4 % 24 9.70 % 36.7 22 % 73 % Preferred equity investments 181,058 4 % 10 7.62 % 68.8 69 % 89 % Other (5) 70,146 2 % 21 2.88 % 84.8 0 % 70 % 4,279,611 100 % 272 5.98 % 22.1 4 % 76 % Allowance for loan losses (71,069) Unearned revenue (18,582) Loans and investments, net $ 4,189,960 Wtd. Avg. Wtd. Avg. Wtd. Avg. First Last Remaining Dollar Dollar December 31, Percent of Loan Wtd. Avg. Months to LTV LTV 2018 Total Count Pay Rate (1) Maturity Ratio (2) Ratio (3) Bridge loans $ 2,992,814 91 % 167 6.84 % 18.5 0 % 74 % Mezzanine loans 108,867 3 % 13 10.57 % 22.1 28 % 72 % Preferred equity investments 181,661 6 % 10 7.97 % 78.0 66 % 89 % 3,283,342 100 % 190 7.02 % 22.0 5 % 75 % Allowance for loan losses (71,069) Unearned revenue (12,128) Loans and investments, net $ 3,200,145 (1) (2) (3) (4) (5) Concentration of Credit Risk We are subject to concentration risk in that, at December 31, 2019, the UPB related to 24 loans with five different borrowers represented 13% of total assets. At December 31, 2018, the UPB related to 45 loans with five different borrowers represented 22% of total assets. During both 2019 and 2018, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 19 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider "high risk" and that possess deteriorating credit quality. Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the loan agreement, and is not considered impaired. A risk rating of substandard indicates we anticipate the loan may require a modification of some kind. A risk rating of doubtful indicates we expect the loan to underperform over its term, and there could be loss of interest and/or principal. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, market strength or asset quality may result in a rating that is higher or lower than might be indicated by any risk rating matrix. As a result of the loan review process, at December 31, 2019 and 2018, we identified eight loans and investments that we consider higher-risk loans that had a carrying value, before loan loss reserves, of $127.6 million and $128.7 million, respectively, and a weighted average last dollar LTV ratio of 98% and 99%, respectively. A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands): December 31, 2019 Wtd. Avg. Wtd. Avg. Wtd. Avg. Percentage Internal First Dollar Last Dollar Asset Class UPB of Portfolio Risk Rating LTV Ratio LTV Ratio Multifamily $ 3,429,278 80 % pass/watch 4 % 76 % Land 221,489 5 % special mention 0 % 87 % Healthcare 203,694 5 % pass/watch 0 % 76 % Hotel 142,300 3 % pass/watch 10 % 60 % Office 134,007 3 % special mention 3 % 67 % Single-Family Rental 71,592 2 % pass 0 % 71 % Retail 49,258 1 % special mention 6 % 62 % Self Storage 26,293 1 % pass/watch 24 % 53 % Other 1,700 <1 % doubtful 63 % 63 % Total $ 4,279,611 100 % pass/watch 4 % 76 % December 31, 2018 Multifamily $ 2,427,920 74 % pass/watch 5 % 75 % Land 151,628 5 % substandard 0 % 90 % Healthcare 122,775 4 % pass/watch 0 % 77 % Hotel 100,075 3 % pass/watch 13 % 66 % Office 132,047 4 % special mention 3 % 68 % Retail 45,367 1 % pass/watch 6 % 65 % Self Storage 301,830 9 % pass/watch 0 % 72 % Other 1,700 <1 % doubtful 63 % 63 % Total $ 3,283,342 100 % pass/watch 5 % 75 % Geographic Concentration Risk As of December 31, 2019, 18% and 12% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. As of December 31, 2018, 23% and 18% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. No other states represented 10% or more of the total loan and investment portfolio. Impaired Loans and Allowance for Loan Losses A summary of the changes in the allowance for loan losses is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Allowance at beginning of period $ 71,069 $ 62,783 $ 83,712 Provision for loan losses — 13,986 2,000 Charge-offs — (3,173) (20,473) Recoveries of reserves — (2,527) (2,456) Allowance at end of period $ 71,069 $ 71,069 $ 62,783 During 2018, we determined that the fair value of the underlying collateral (land development project) securing six loans with a carrying value of $121.4 million was less than the net carrying value of the loans, which resulted in a provision for loan losses of $12.3 million. We also fully reserved a bridge loan and recorded a provision for loan loss of $1.7 million. In addition, during 2018, we received $31.6 million to settle a non-performing preferred equity investment in a hotel property with a UPB of $34.8 million and a net carrying value of $29.1 million, resulting in a charge-off of $3.2 million and a reserve recovery of $2.5 million. We also received payments and recorded recoveries of $3.1 million related to previously written-off loans and investments, which are included as a component of provision for loan losses (net of recoveries) on the consolidated statements of income. During 2017, we incurred a $20.5 million charge-off of a fully reserved junior participation loan and we determined that the fair value of the underlying collateral securing a preferred equity investment with an aggregate carrying value of $34.8 million was less than the net carrying value of the investment, which resulted in a $2.0 million provision for loan losses. In addition, a fully reserved mezzanine loan with a UPB of $1.8 million paid off in full, which resulted in a $1.8 million reserve recovery, and we recorded a reserve recovery of $0.7 million on a multifamily bridge loan. The ratio of net recoveries (charge-offs) to the average loans and investments outstanding was 0.1% and (0.8)% for 2018 and 2017, respectively. There were no loans for which the fair value of the collateral securing the loan was less than the carrying value of the loan for which we had not recorded a provision for loan loss as of December 31, 2019, 2018 and 2017. We have six loans with a carrying value totaling $120.3 million at December 31, 2019 that are collateralized by a land development project. These loans were scheduled to mature in September 2019 and were extended to March 2020, with the expectation to further extend these loans. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $111.0 million entitle us to a weighted average accrual rate of interest of 8.74%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At both December 31, 2019 and 2018, we had cumulative allowances for loan losses of $61.4 million related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development’s outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is in compliance with all of the terms and conditions of the loans. A summary of our impaired loans by asset class is as follows (in thousands): Year Ended December 31, December 31, 2019 2019 Average Interest Carrying Allowance for Recorded Income Asset Class UPB Value (1) Loan Losses Investment (2) Recognized Land $ 134,215 $ 126,800 $ 67,869 $ 134,215 $ 107 Office 2,226 2,226 1,500 2,246 132 Commercial 1,700 1,700 1,700 1,700 — Total $ 138,141 $ 130,726 $ 71,069 $ 138,161 $ 239 Year Ended December 31, December 31, 2018 2018 Land $ 134,215 $ 127,869 $ 67,869 $ 132,651 $ 103 Hotel — — — 17,375 — Office 2,266 2,266 1,500 2,277 127 Commercial 1,700 1,700 1,700 1,700 — Total $ 138,181 $ 131,835 $ 71,069 $ 154,003 $ 230 (1) Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both December 31, 2019 and 2018. (2) Represents an average of the beginning and ending UPB of each asset class. At December 31, 2019, three loans with an aggregate net carrying value of $1.8 million, net of related loan loss reserves of $1.7 million, were classified as non-performing. At December 31, 2018, two loans with an aggregate net carrying value of $0.8 million, net of related loan loss reserves of $1.7 million, were classified as non-performing. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2019 December 31, 2018 Less Than Greater Than Less Than Greater Than Carrying 90 Days 90 Days Carrying 90 Days 90 Days Asset Class Value Past Due Past Due Value Past Due Past Due Commercial $ 1,700 $ — $ 1,700 $ 1,700 $ — $ 1,700 Retail 990 — 990 — — — Office 833 — 833 832 — 832 Total $ 3,523 $ — $ 3,523 $ 2,532 $ — $ 2,532 At both December 31, 2019 and 2018, we had no loans contractually past due 90 days or more that are still accruing interest. There were no loan modifications, refinancing’s and/or extensions during 2019 and 2018 that were considered troubled debt restructurings. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. At December 31, 2019 and 2018, we had total interest reserves of $37.0 million and $48.9 million, respectively, on 131 loans and 110 loans, respectively, with an aggregate UPB of $2.43 billion and $2.22 billion, respectively. |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 12 Months Ended |
Dec. 31, 2019 | |
Loans Held-for-Sale, Net | |
Loans Held-for-Sale, Net | Note 4—Loans Held-for-Sale, Net Loans held-for-sale, net consists of the following (in thousands): December 31, 2019 December 31, 2018 Fannie Mae $ 408,534 $ 358,790 Private Label 401,207 — Freddie Mac 36,303 95,004 FHA 1,082 19,170 847,126 472,964 Fair value of future MSR 16,519 10,253 Unearned discount (2,285) (1,553) Loans held-for-sale, net $ 861,360 $ 481,664 Our GSE loans held-for-sale are typically sold within 60 days of loan origination , while our Private Label loans are expected to be sold and securitized within 180 days of loan origination. During 2019, 2018 and 2017, we sold $4.40 billion, $4.92 billion and $4.81 billion, respectively, of loans held-for-sale and recorded gain on sales of $61.1 million, $65.5 million and $68.3 million, respectively. At December 31, 2019 and 2018, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status. |
Capitalized Mortgage Servicing
Capitalized Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Capitalized Mortgage Servicing Rights | |
Capitalized Mortgage Servicing Rights | Note 5—Capitalized Mortgage Servicing Rights Our capitalized MSRs reflect commercial real estate MSRs derived from loans sold in our Agency Business, or MSRs acquired as part of the Acquisition or in the open market from third parties. The weighted average estimated life remaining of our MSRs was 8.0 years and 7.6 years at December 31, 2019 and 2018, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Acquired Originated Total Acquired Originated Total Balance at beginning of period $ 97,084 $ 176,686 $ 273,770 $ 143,270 $ 109,338 $ 252,608 Additions — 83,756 83,756 — 94,344 94,344 Amortization (21,042) (27,639) (48,681) (28,958) (19,166) (48,124) Write-downs and payoffs (11,523) (10,902) (22,425) (17,228) (7,830) (25,058) Balance at end of period $ 64,519 $ 221,901 $ 286,420 $ 97,084 $ 176,686 $ 273,770 We collected prepayment fees totaling $18.4 million and $21.9 million during 2019 and 2018, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. As of December 31, 2019 and 2018, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded as of December 31, 2019 is as follows (in thousands): Year Amortization 2020 $ 46,307 2021 42,538 2022 37,596 2023 33,203 2024 28,981 Thereafter 97,795 Total $ 286,420 Actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Servicing | |
Mortgage Servicing | Note 6—Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2019 Product Concentrations Geographic Concentrations Percent of UPB Percent Product UPB (1) Total State of Total Fannie Mae $ 14,832,844 74 % Texas 19 % Freddie Mac 4,534,714 23 % North Carolina 9 % FHA 691,519 3 % New York 9 % Total $ 20,059,077 100 % California 9 % Florida 6 % Georgia 6 % Other(2) 42 % Total 100 % December 31, 2018 Product Concentrations Geographic Concentrations Percent of UPB Percent Product UPB (1) Total State of Total Fannie Mae $ 13,562,667 73 % Texas 20 % Freddie Mac 4,394,287 24 % North Carolina 10 % FHA 644,687 3 % New York 8 % Total $ 18,601,641 100 % California 8 % Georgia 6 % Florida 6 % Other(2) 42 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) No other individual state represented 4% or more of the total. At December 31, 2019 and 2018, our weighted average servicing fee was 43.8 basis points and 45.2 basis points, respectively. At December 31, 2019 and 2018, we held total escrow balances of $947.1 million and $824.1 million, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $562.1 million and $521.2 million at December 31, 2019 and 2018, respectively, related to loans we are servicing within our Agency Business. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, was $17.3 million, $12.8 million and $5.2 million during 2019, 2018 and 2017, respectively, and is a component of servicing revenue, net in the consolidated statements of income. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 12 Months Ended |
Dec. 31, 2019 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 7—Securities Held-to-Maturity Agency B Piece Bonds. Freddie Mac may choose to hold, sell or securitize loans we sell to them under the Freddie Mac SBL program. As part of the securitizations under the SBL program, we have the option to purchase through a bidding process the B Piece bond, that represents the bottom 10%, or highest risk, of the securitization. As of December 31, 2019, we retained 49%, or $106.2 million initial face value, of seven B Piece bonds, which were purchased at a discount for $74.7 million, and sold the remaining 51% to a third-party at par. These securities are collateralized by a pool of multifamily mortgage loans, bear interest at an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 5.8 years. The weighted average effective interest rate was 10.85% and 10.94% at December 31, 2019 and 2018, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $14.2 million is estimated to mature within one year, $40.8 million is estimated to mature after one year through five years, $20.6 million is estimated to mature after five years through ten years and $15.4 million is estimated to mature after ten years. Structured Single-Family Rental Bonds. During 2019, we purchased $20.0 million initial face value of Class A2 securitized SFR bonds at par, which are collateralized by a pool of single-family rental properties. These securities have a three-year maturity, bear interest at a weighted average fixed interest rate of 4.58% and have an estimated weighted average remaining maturity of 0.5 years. Approximately $18.7 million is estimated to mature within one year and $1.3 million is estimated to mature after one year through five years. A summary of our securities held-to-maturity is as follows (in thousands): Carrying Unrealized Estimated Period Face Value Value Gain Fair Value December 31, 2019 $ 111,028 $ 88,699 $ 3,039 $ 91,738 December 31, 2018 $ 103,515 $ 76,363 $ 2,734 $ 79,097 As of December 31, 2019, no impairment was recorded on these held-to-maturity securities. During 2019, 2018 and 2017, we recorded interest income (including the amortization of discount) of $9.9 million, $5.8 million and $1.8 million, respectively, related to these investments. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Equity Affiliates | |
Investments in Equity Affiliates | Note 8—Investments in Equity Affiliates We account for all investments in equity affiliates under the equity method. A summary of our investments in equity affiliates is as follows (in thousands): Investments in Equity Affiliates at UPB of Loans to December 31, December 31, Equity Affiliates at Equity Affiliates 2019 2018 December 31, 2019 Arbor Residential Investor LLC $ 26,520 $ 19,260 $ — AMAC Holdings III LLC 10,520 — 15,600 North Vermont Avenue 2,440 — — Lightstone Value Plus REIT L.P 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,688 Lexford Portfolio — — 30,470 East River Portfolio — — — Total $ 41,800 $ 21,580 $ 47,758 Arbor Residential Investor LLC (“ARI”). In 2015, we invested $9.6 million for 50% of our Former Manager’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in the mortgage banking business, which was subject to dilution upon attaining certain profit hurdles of the business, and at December 31, 2019, our indirect interest was 16.3%. During 2019, 2018 and 2017, we recorded income of $7.2 million, income of $0.7 million and a loss of $7.3 million, respectively, to income (loss) from equity affiliates in the consolidated statements of income related to this investment. The loss in 2017 included a $5.5 million charge for our proportionate share of a litigation settlement that was paid. During 2018, we made a $2.4 million payment for our proportionate share of the litigation settlement, which was distributed back to us by our equity affiliate. In 2015, we invested $1.7 million through ARI for a 50% noncontrolling interest in a joint venture that invests in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform. During 2018 and 2017, we received cash distributions totaling $0.7 million and $3.2 million, respectively, as a result of the joint venture selling most of its mortgage assets, which were classified as returns of capital. The income (loss) associated with this investment for all periods presented was de minimis. At December 31, 2019, our basis in this investment was zero. AMAC Holdings III LLC (“AMAC III”). In the first quarter of 2019, we committed to a $30.0 million investment (of which $10.9 million was funded as of December 31, 2019) for an 18% interest in a multifamily-focused commercial real estate investment fund that is sponsored and managed by our chief executive officer and one of his immediate family members. We received a $0.2 million cash distribution, which was classified as a return of capital, related to this investment. The loss associated with this investment for 2019 was de minimis. North Vermont Avenue. In the fourth quarter of 2019, we invested $2.4 million for an initial 85% noncontrolling interest in a joint venture that acquired three parcels of land, which currently has three residential structures, a commercial structure and a parking lot. The joint venture intends to tear down the existing structures and construct a new 206 unit multifamily complex with ground floor retail. Lightstone Value Plus REIT L.P. / JT Prime. We own a $1.9 million interest in an unconsolidated joint venture that holds common operating partnership units of Lightstone Value Plus REIT L.P. (“Lightstone”). We also own a 50% noncontrolling interest in an unconsolidated joint venture, JT Prime, which holds common operating partnership units of Lightstone at a carrying value of $0.4 million. The income associated with these investments for all periods presented was de minimis. West Shore Café. We own a 50% noncontrolling interest in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California. We provided a $1.7 million first mortgage loan to an affiliated entity to acquire property adjacent to the original property, which is scheduled to mature in March 2020 and bears interest at LIBOR plus 4.0%. During 2018, we determined that this investment exhibited indicators of impairment and, as a result of an impairment analysis performed; we recorded an other-than-temporary impairment of $2.2 million for the full carrying amount of this investment, which was recorded in income (loss) from equity affiliates in the consolidated statements of income. Also during 2018, we recorded a provision for loan loss of $1.7 million, fully reserving the first mortgage loan. Lexford Portfolio. We own a $44,000 noncontrolling equity interest in Lexford, a portfolio of multifamily assets. In 2019, 2018 and 2017, we received distributions from this equity investment and recognized income totaling $3.5 million, $2. 5 million and $2.5 million, net of expenses, respectively. East River Portfolio. We invested $0.1 million for a 5% interest in a joint venture that owns two multifamily properties. The joint venture is comprised of a consortium of investors (which includes, among other unaffiliated investors, certain of our officers, our chief executive officer and certain other related parties) who together own an interest of 95%. We originated a $1.7 million bridge loan to the joint venture with an interest rate of 5.5% over LIBOR that was repaid in full during 2017. The losses associated with this investment for all periods presented was de minimis. Equity Participation Interest. During 2017, we received $1.5 million from the redemption of a 25% equity participation interest we held in a multifamily property, which is included in income (loss) from equity affiliates in our consolidated statements of income. Our basis in this investment was zero prior to this transaction. See Note 19 for details of certain investments described above. |
Real Estate Owned
Real Estate Owned | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned | |
Real Estate Owned | Note 9—Real Estate Owned Our real estate assets at both December 31, 2019 and 2018 were comprised of a hotel property and an office building. December 31, 2019 December 31, 2018 Hotel Office Hotel Office (in thousands) Property Building Total Property Building Total Land $ 3,294 $ 4,509 $ 7,803 $ 3,294 $ 4,509 $ 7,803 Building and intangible assets 31,541 2,010 33,551 31,066 2,010 33,076 Less: Impairment loss (14,307) (2,500) (16,807) (13,307) (2,500) (15,807) Less: Accumulated depreciation and amortization (10,320) (1,007) (11,327) (9,778) (848) (10,626) Real estate owned, net $ 10,208 $ 3,012 $ 13,220 $ 11,275 $ 3,171 $ 14,446 During 2019, 2018 and 2017, our hotel property had a weighted average occupancy rate of 51%, 49% and 52%, respectively, a weighted average daily rate of $111, $108 and $108, respectively, and weighted average revenue per available room of $57, $53 and $56, respectively. The operation of a hotel property is seasonal with the majority of revenues earned in the first two quarters of the calendar year. Our office building was fully occupied by a single tenant until April 2017, when the lease expired. The building is currently vacant. Through site visits and discussions with market participants, we determined that our real estate assets exhibited indicators of impairment and, based on our impairment analyses performed, we recorded impairment losses of $1.0 million, $2.0 million and $3.2 million in 2019, 2018 and 2017, respectively. Our real estate assets had restricted cash balances due to escrow requirements totaling $0.5 million at both December 31, 2019 and 2018. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 10—Goodwill and Other Intangible Assets Goodwill. The goodwill balance at both December 31, 2019 and 2018 was $56.6 million. Other Intangible Assets. The following table sets forth the other intangible assets activity (in thousands): December 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Value Amortization Total Value Amortization Total Finite-lived intangible assets: Broker relationships $ 25,000 $ (10,807) $ 14,193 $ 25,000 $ (7,683) $ 17,317 Borrower relationships 14,400 (4,980) 9,420 14,400 (3,540) 10,860 Below market leases 4,010 (2,548) 1,462 4,010 (1,811) 2,199 Acquired technology 900 (900) — 900 (737) 163 Infinite-lived intangible assets: Fannie Mae DUS license 17,100 — 17,100 17,100 — 17,100 Freddie Mac Program Plus license 8,700 — 8,700 8,700 — 8,700 FHA license 3,200 — 3,200 3,200 — 3,200 $ 73,310 $ (19,235) $ 54,075 $ 73,310 $ (13,771) $ 59,539 The amortization expense recorded for these intangible assets were $5.5 million, $5.6 million and $5.6 million during 2019, 2018 and 2017, respectively. At December 31, 2019, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated amortization expense for each of the succeeding five years are as follows ($ in thousands): Wtd. Avg. Estimated Amortization Expense for the Remaining Life Years Ending December 31, (in years) 2020 2021 2022 2023 2024 Finite-lived intangible assets: Broker relationships $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 1,693 Borrower relationships 1,440 1,440 1,440 1,440 1,440 Below market leases 684 126 126 126 126 $ 5,249 $ 4,691 $ 4,691 $ 4,691 $ 3,259 See Note 21 for details of goodwill and other intangible assets by segment. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Obligations | |
Debt Obligations | Note 11—Debt Obligations Credit Facilities and Repurchase Agreements Borrowings under our credit facilities and repurchase agreements are as follows ($ in thousands): December 31, 2019 December 31, 2018 Debt Collateral Debt Collateral Carrying Carrying Wtd. Avg. Carrying Carrying Wtd. Avg. UPB Value (1) Value Note Rate UPB Value (1) Value Note Rate Structured Business $400 million joint repurchase facility $ 225,051 $ 224,658 $ 339,378 4.06 % $ 336,428 $ 334,696 $ 467,680 4.75 % $300 million repurchase facility 218,891 218,418 291,292 3.76 % — — — — $200 million repurchase facility 40,612 40,530 48,086 4.22 % — — — — $128.7 million loan specific credit facilities 128,677 128,274 184,116 4.13 % 85,044 84,701 124,844 4.93 % $100 million repurchase facility 45,962 45,843 63,800 3.56 % 71,017 70,837 98,597 4.31 % $75 million credit facility 4,690 4,570 7,000 3.56 % 10,237 10,237 16,889 4.31 % $75 million credit facility — — — — — — — — $50 million credit facility 14,948 14,933 17,650 3.81 % 14,160 14,159 17,700 4.57 % $50 million credit facility 12,349 12,191 16,499 4.32 % — — — — $50 million credit facility 5,280 5,254 6,600 4.32 % — — — — $25 million credit facility 19,936 19,651 28,572 4.07 % — — — — $25 million working capital facility — — — — — — — — $20 million credit facility — — — — 20,000 19,912 41,650 5.07 % $8 million credit facility — — — — 8,000 7,946 10,000 5.07 % $3.3 million master security agreements 3,267 3,267 — 4.08 % 2,846 2,846 — 4.06 % Repurchase facilities-securities (2) 217,105 217,105 — 3.90 % 118,112 118,112 — 5.07 % Structured Business total $ 936,768 $ 934,694 $ 1,002,993 3.94 % $ 665,844 $ 663,446 $ 777,360 4.78 % Agency Business $750 million ASAP agreement $ 148,725 $ 148,725 $ 148,725 2.81 % $ 104,619 $ 104,619 $ 104,619 3.55 % $500 million repurchase facility 187,742 187,698 187,742 2.91 % 130,917 130,906 130,917 3.78 % $300 million joint repurchase facility 300,446 299,824 300,446 3.26 % — — — — $250 million credit facility — — — — 26,651 26,651 26,651 3.75 % $150 million credit facility 89,673 89,657 89,673 2.91 % 113,685 113,666 113,685 3.80 % $150 million credit facility 17,792 17,690 17,792 2.91 % 96,419 96,339 96,419 3.80 % Agency Business total $ 744,378 $ 743,594 $ 744,378 3.03 % $ 472,291 $ 472,181 $ 472,291 3.74 % Consolidated total $ 1,681,146 $ 1,678,288 $ 1,747,371 3.54 % $ 1,138,135 $ 1,135,627 $ 1,249,651 4.35 % (1) The debt carrying value for the Structured Business at December 31, 2019 and 2018 was net of unamortized deferred finance costs of $2.1 million and $2.4 million, respectively. The debt carrying value for the Agency Business at December 31, 2019 and 2018 was net of unamortized deferred finance costs of $0.2 million and $0.1 million, respectively. (2) Joint Repurchase Facility. We have a $700.0 million joint repurchase facility, which is shared between the Structured Business and the Agency Business, used to finance structured loans as well as Private Label loans. The facility bears interest at a rate of 175 basis points over LIBOR on structured multifamily senior mortgage loans, 200 to 225 basis points over LIBOR on structured non-multifamily senior mortgage loans, 350 basis points over LIBOR on structured junior mortgage loans and 150 basis points over LIBOR on Private Label loans. The facility matures in March 2020, with a one-year extension option, and has a maximum advance rate of 80% on all structured loans and 85% on Private Label loans. If the estimated market value of the loans financed in this facility decrease, we may be required to pay down borrowings under this facility . Structured Business. We utilize credit facilities and repurchase agreements with various financial institutions to finance our Structured Business loans and investments as described below. At December 31, 2019 and 2018, the weighted average interest rate for the credit facilities and repurchase agreements of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 4.39% and 5.07%, respectively. The leverage on our loan and investment portfolio financed through our credit facilities and repurchase agreements, excluding the securities repurchase facilities, working capital facility and the master security agreements used to finance leasehold and capital expenditure improvements at our corporate office, was 71% and 70% at December 31, 2019 and 2018, respectively. We have a $300.0 million repurchase facility to finance loans that bears interest at a rate of 195 basis points over LIBOR that matures in December 2020, with quarterly extension options having an extended maturity date no later than March 2023. The facility has a maximum advance rate of 80%. We have a $200.0 million repurchase facility to finance single-family rental properties that bears interest at a rate of 240 basis points over LIBOR and matures in August 2020, with six-month extension options in perpetuity. We have several loan specific credit facilities totaling $128.7 million used to finance individual bridge loans. The facilities bear interest at rates ranging from 210 to 250 basis points over LIBOR and mature between May 2020 and May 2022. We have a $100.0 million repurchase facility to finance multifamily bridge loans that bears interest at a rate ranging from 175 to 195 basis points over LIBOR (depending on the class of loan financed) and matures in June 2020. The facility has a maximum advance rate of 80%. We have a $75.0 million credit facility to finance multifamily bridge loans that bears interest at 175 basis points over LIBOR and matures in May 2020, with three one-year extension options. This facility includes a $25.0 million sublimit to finance healthcare related loans at an interest rate ranging from 212.5 to 250 basis points over LIBOR depending on the type of healthcare facility financed and the advance rate. The facility has a maximum advance rate of 80% on multifamily bridge loans and 75% on healthcare related loans. We have another $75.0 million credit facility to finance bridge loans that bears interest at a rate of 175 basis points over LIBOR and matures in June 2020. The facility has a maximum advance rate of 70% to 80%, depending on the property type. We have a $50.0 million credit facility to finance multifamily loans that bears interest at a rate of 200 basis points over LIBOR and matures in April 2020, with two one-year extension options. This facility has a maximum advance rate of 80%. We have a $50.0 million credit facility to finance single-family rental properties that bears interest at a rate of 250 basis points over LIBOR with an interest rate floor of 4.00%. The facility matures in October 2022, with a one-year extension option, and has a maximum advance rate equal to the lesser of: (1) 75% of the UPB, (2) 50% of the appraised value of the collateral, or (3) 55% of the projected cost of construction. We have another $50.0 million credit facility that bears interest at a rate ranging from 250 to 325 basis points over LIBOR, depending on the type of healthcare facility financed, and matures in September 2020. The facility includes a one-year extension option and has a maximum advance rate of 80%. We have a $25.0 million credit facility used to purchase loans. The facility bears interest at a rate of 225 basis points over LIBOR and matures in June 2022, with a one-year extension option. We have a $25.0 million unsecured working capital line of credit that bears interest at a rate of 225 basis points over LIBOR. This line matures in August 2020 and is renewable annually. We had a $20.0 million credit facility used to finance a healthcare facility bridge loan. The facility bore interest at a rate of 250 basis points over LIBOR and, in the fourth quarter of 2019, the facility was repaid and the loan collateralizing this facility was placed into another facility. We had an $8.0 million credit facility used to finance a healthcare facility bridge loan. The facility bore interest at a rate of 250 basis points over LIBOR and, in the second quarter of 2019, the loan collateralizing this facility was placed into a CLO and we simultaneously repaid this facility. We have four notes payable under master security agreements that were used to finance leasehold improvements and capital expenditures for our corporate office. The notes bear interest at a weighted average fixed rate of 4.08%, require monthly amortization payments and mature between 2020 and 2022. We have four uncommitted repurchase facilities that are used to finance securities we retained in connection with our CLOs and our purchases of B Piece bonds from SBL program securitizations and SFR bonds. These facilities bear interest at rates ranging from 120 to 275 basis points over LIBOR and have no stated maturity dates. Agency Business. We utilize credit facilities with various financial institutions to finance substantially all of our loans held-for-sale as described below. We have a $750.0 million ASAP agreement with Fannie Mae providing us with a warehousing credit facility for mortgage loans that are to be sold to Fannie Mae and serviced under the Fannie Mae DUS program. The ASAP agreement is not a committed line, has no expiration date and bears interest at a rate of 105 basis points over LIBOR, with a LIBOR Floor of 0.35%. We have a $500.0 million repurchase facility that bears interest at a rate of 115 basis points over LIBOR and matures in October 2020. The financial institution that provided this facility has a security interest in the underlying mortgage notes that serve as collateral for this facility. We have a $100.0 million repurchase facility that bears interest at a rate of 115 basis points over LIBOR and matures in June 2020. The committed amount under the facility was temporarily increased $150.0 million to $250.0 million, which expired in January 2020. The financial institution that provided this facility has a security interest in the underlying mortgage notes that serve as collateral for this facility. We have a $150.0 million credit facility that bears interest at a rate of 115 basis points over LIBOR and was scheduled to mature in January 2020, which was temporarily extended to March 2020. We are currently in negotiations with the lender to further amend and extend the agreement. The financial institution that provided this facility has a security interest in the underlying mortgage notes that serve as collateral for this facility. We have another $150.0 million credit facility that bears interest at a rate of 115 basis points over LIBOR and matures in July 2020. The financial institution that provided this facility has a security interest in the underlying mortgage notes that serve as collateral for this facility. We have a $50.0 million letter of credit facility with a financial institution to secure obligations under the Fannie Mae DUS program and the Freddie Mac SBL program. The facility bears interest at a fixed rate of 2.875%, matures in September 2020 and is primarily collateralized by our servicing revenue as approved by Fannie Mae and Freddie Mac. The facility includes a $5.0 million sublimit for an obligation under the Freddie Mac SBL program. At December 31, 2019, the letters of credit outstanding include $45.0 million for the Fannie Mae DUS program and $5.0 million for the Freddie Mac SBL program. CLOs We account for our CLO transactions on our consolidated balance sheet as financing facilities. Our CLOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us. Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Collateral (3) Debt Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2019 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO XII $ 534,193 $ 529,448 3.30 % $ 596,366 $ 593,652 $ 17,800 CLO XI 533,000 528,690 3.25 % 624,443 621,508 15,550 CLO X 441,000 437,391 3.26 % 509,887 507,854 37,287 CLO IX 356,400 353,473 3.17 % 407,696 406,463 47,230 CLO VIII 282,874 281,119 3.12 % 359,186 357,914 544 Total CLOs $ 2,147,467 $ 2,130,121 3.23 % $ 2,497,578 $ 2,487,391 $ 118,411 Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2018 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO X $ 441,000 $ 436,384 4.01 % $ 539,007 $ 536,869 $ 20,993 CLO IX 356,400 352,244 3.92 % 440,906 439,691 20,094 CLO VIII 282,874 279,857 3.87 % 354,713 353,574 10,287 CLO VII 279,000 276,527 4.56 % 325,057 324,195 30,725 CLO VI 250,250 248,536 5.05 % 279,348 278,364 41,404 Total CLOs $ 1,609,524 $ 1,593,548 4.22 % $ 1,939,031 $ 1,932,693 $ 123,503 (1) Debt carrying value is net of $17.3 million and $16.0 million of deferred financing fees at December 31, 2019 and 2018, respectively. (2) At December 31, 2019 and 2018, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.63% and 4.73%, respectively. (3) As of December 31, 2019 and 2018, there was no collateral at risk of default or deemed to be a “credit risk” as defined by the CLO indenture. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $58.6 million and $25.1 million at December 31, 2019 and 2018, respectively. CLO XII. In November 2019, we completed CLO XII, issuing eight tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $585.8 million. Of the total CLO notes issued, $534.2 million were investment grade notes issued to third party investors and $51.6 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $510.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a three-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $124.1 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $635.0 million, representing leverage of 84%. We retained a residual interest in the portfolio with a notional amount of $100.8 million, including the $51.6 million below investment grade notes. The notes had an initial weighted average interest rate of 1.50% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO XI. In June 2019, we completed CLO XI, issuing eight tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $602.1 million. Of the total CLO notes issued, $533.0 million were investment grade notes issued to third party investors and $69.1 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $520.4 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a three-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $129.6 million for the purpose of acquiring additional loan obligations for a period of up to 120 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $650.0 million, representing leverage of 82%. We retained a residual interest in the portfolio with a notional amount of $117.0 million, including the $69.1 million below investment grade notes. The notes had an initial weighted average interest rate of 1.44% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO X . In June 2018, we completed CLO X, issuing seven tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $494.2 million. Of the total CLO notes issued, $441.0 million were investment grade notes issued to third party investors and $53.2 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $501.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a stated maturity date in June 2028 and a four-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $58.1 million for the purpose of acquiring additional loan obligations for a period of up to 120 days from the CLO closing date, which were subsequently utilized, resulting in the issuer owning loan obligations with a face value of $560.0 million, representing leverage of 79%. We retained a residual interest in the portfolio with a notional amount of $119.0 million, including the $53.2 million below investment grade notes. The notes had an initial weighted average interest rate of 1.45% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO IX. In December 2017, we completed CLO IX, issuing five tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $388.2 million. Of the total CLO notes issued, $356.4 million were investment grade notes issued to third party investors and $31.8 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $387.3 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a stated maturity date in December 2027 and a three-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $92.7 million for the purpose of acquiring additional loan obligations for a period of up to 120 days from the CLO closing date, which were subsequently utilized, resulting in the issuer owning loan obligations with a face value of $480.0 million, representing leverage of 74%. We retained a residual interest in the portfolio with a notional amount of $123.6 million, including the $31.8 million below investment grade notes. The notes had an initial weighted average interest rate of 1.36% plus LIBOR and interest payments on the notes are payable monthly. CLO VIII. In August 2017, we completed CLO VIII, issuing six tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $312.1 million. Of the total CLO notes issued, $282.9 million were investment grade notes issued to third party investors and $29.2 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $293.7 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a stated maturity date in August 2027 and a three-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $71.3 million for the purpose of acquiring additional loan obligations for a period of up to 120 days from the CLO closing date, which were subsequently utilized, resulting in the issuer owning loan obligations with a face value of $365.0 million, representing leverage of 78%. We retained a residual interest in the portfolio with a notional amount of $82.1 million, including the $29.2 million below investment grade notes. The notes had an initial weighted average interest rate of 1.31% plus LIBOR and interest payments on the notes are payable monthly. CLO VII. In November 2019, we unwound CLO VII redeeming $279.0 million of outstanding notes which were repaid primarily from the refinancing of the remaining assets within our existing financing facilities (including CLO XII), as well as with cash held by CLO VII, and expensed $1.4 million of deferred financing fees into interest expense on the consolidated statements of income. CLO VI. In June 2019, we unwound CLO VI redeeming $250.3 million of outstanding notes which were repaid primarily from the refinancing of the remaining assets within our existing financing facilities (including CLO XI), as well as with cash held by CLO VI, and expensed $1.2 million of deferred financing fees into interest expense on the consolidated statements of income. CLO V. In June 2018, we unwound CLO V, redeeming $267.8 million of outstanding notes which were repaid primarily from the refinancing of the remaining assets within our existing financing facilities (including CLO X), as well as with cash held by CLO V, and expensed $1.3 million of deferred financing fees into interest expense on the consolidated statements of income. CLO IV. In September 2017, we unwound CLO IV, redeeming $219.0 million of our outstanding notes which were repaid primarily from the refinancing of the remaining assets within our existing financing facilities (including CLO VIII), as well as with cash held by CLO IV, and expensed $1.1 million of deferred financing fees into interest expense on the consolidated statements of income. Luxembourg Debt Fund In November 2017, we formed a $100.0 million Debt Fund and issued $70.0 million of floating rate notes to third party investors which bore an initial interest rate of 4.15% over LIBOR. The notes mature in 2025 and we retained a $30.0 million equity interest in the Debt Fund. The Debt Fund is a VIE for which we are the primary beneficiary and is consolidated in our financial statements. The Debt Fund is secured by a portfolio of loan obligations and cash with a face value of $100.0 million, which includes first mortgage bridge loans, senior participation interests in first mortgage bridge loans, subordinate participation interest in first mortgage bridge loans and participation interests in mezzanine loans. The Debt Fund allows, for a period of three years, principal proceeds from portfolio assets to be reinvested in qualifying replacement assets, subject to certain conditions. Borrowings and the corresponding collateral under our Debt Fund are as follows ($ in thousands): Collateral (3) Debt Loans Cash Face Carrying Wtd. Avg. Carrying Restricted Period Value Value (1) Rate (2) UPB Value Cash (4) December 31, 2019 $ 70,000 $ 68,629 5.99 % $ 70,755 $ 68,629 $ 29,245 December 31, 2018 $ 70,000 $ 68,183 6.75 % $ 69,186 $ 68,924 $ 30,814 (1) Debt carrying value is net of $1.4 million and $1.8 million of deferred financing fees at December 31, 2019 and 2018, respectively. (2) At December 31, 2019 and 2018, the aggregate weighted average note rate, including certain fees and costs, was 7.17% and 7.49%, respectively. (3) At both December 31, 2019 and 2018, there was no collateral at risk of default or deemed to be a “credit risk.” (4) Represents restricted cash held for reinvestment. Excludes restricted cash related to interest payments, delayed fundings and expenses. Senior Unsecured Notes In October 2019, we issued $110.0 million aggregate principal amount of 4.75% senior unsecured notes due in October 2024 (the “4.75% Notes”) in a private placement. We received proceeds of $108.2 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments and for general corporate purposes. The 4.75% Notes are unsecured and can be redeemed by us at any time prior to October 15, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the 4.75% Notes on or after October 15, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. The interest is paid semiannually in April and October starting in April 2020. At December 31, 2019, the debt carrying value of the 4.75% Notes was $108.4 million, net of $1.6 million of deferred financing fees, and the weighted average note rate, including certain fees and costs, was 5.23%. In March 2019, we issued $90.0 million aggregate principal amount of 5.75% senior unsecured notes due in April 2024 (the “5.75% Notes”) in a private placement. We received proceeds of $88.2 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments and for general corporate purposes. The 5.75% Notes are unsecured and can be redeemed by us at any time prior to April 1, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the 5.75% Notes on or after April 1, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. The interest is paid semiannually in April and October. At December 31, 2019, the debt carrying value of the 5.75% Notes was $88.4 million, net of $1.6 million of deferred financing fees, and the weighted average note rate, including certain fees and costs, was 6.18%. In March 2018, we issued $100.0 million aggregate principal amount of 5.625% senior unsecured notes due in May 2023 (the “Initial Notes”) in a private placement, and, in May 2018, we issued an additional $25.0 million (the “Reopened Notes” and, together with the Initial Notes, the “5.625% Notes,”) which brought the aggregate outstanding principal amount to $125.0 million. The Reopened Notes are fully fungible with, and rank equally in right of payment with the Initial Notes. We received total proceeds of $122.3 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds from the Initial Notes to fully redeem our 7.375% Notes totaling $97.9 million and the net proceeds from the Reopened Notes to make investments and for general corporate purposes. The 5.625% Notes are unsecured and can be redeemed by us at any time prior to April 1, 2023, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the 5.625% Notes on or after April 1, 2023, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. The interest is paid semiannually in May and November. At December 31, 2019 and 2018, the debt carrying value of the 5.625% Notes were $123.1 million and $122.5 million, respectively, net of $1.9 million and $2.5 million, respectively, of deferred financing fees. At both December 31, 2019 and 2018, the weighted average note rate was 6.08%, respectively, including certain fees and costs. Convertible Senior Unsecured Notes In November 2019, we issued $264.0 million in aggregate principal amount of 4.75% convertible notes through a private placement offering, which includes the exercised purchaser’s total over-allotment option of $34.0 million. The 4.75% convertible notes pay interest semiannually in arrears and are scheduled to mature in November 2022, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate and the conversion rate at December 31, 2019 was 56.1695 shares of common stock per $1,000 of principal representing a conversion price of $17.80 per share of common stock. We received proceeds totaling $256.5 million, net of the underwriter’s discount and fees, which is being amortized through interest expense over the life of such notes. We used the net proceeds from the issuance primarily for the exchange of $228.7 million of our 5.25% convertible notes for a combination of $233.1 million in cash (which includes accrued interest) and 4,478,315 shares of our common stock. The remaining net proceeds were used for general corporate purposes. During 2019, we recorded a loss on extinguishment of debt of $7.3 million in connection with this exchange, which included an inducement charge of $1.1 million. In 2018, we completed a similar exchange where we used the net proceeds from two separate private placements of our 5.25% convertible notes to initially exchange $127.6 million of our 5.375% convertible notes and $99.8 million of our 6.50% convertible notes for a combination of $219.8 million in cash (which includes accrued interest) and 6,820,196 shares of our common stock. During 2018, we recorded a loss on extinguishment of debt of $5.0 million in connection with these exchanges, which included an inducement charge of $1.1 million. At December 31, 2019, there were $11.5 million, $24.3 million and $1.1 million aggregate principal amount remaining of our 5.25% convertible notes issued on July 3, 2018, 5.25% convertible notes issued on July 20, 2018 and 5.375% convertible notes, respectively. The initial conversion rates of the 5.25% convertible notes issued on July 3, 2018, 5.25% convertible notes issued on July 20, 2018 and 5.375% convertible notes were 86.9943 shares, 77.8331 shares and 107.7122 shares, respectively, of common stock per $1,000 of principal, which represented a conversion price of $11.50 per share, $12.85 per share and $9.28 per share of common stock, respectively. At December 31, 2019, the 5.25% convertible notes issued on July 3, 2018, 5.25% convertible notes issued on July 20, 2018 and 5.375% convertible notes had conversion rates of 89.2795 shares, 79.8777 shares and 114.6568 shares, respectively, of common stock per $1,000 of principal, which represented a conversion price of $11.20 per share, $12.52 per share and $8.72 per share of common stock, respectively. The 5.25% convertible notes and 5.375% convertible notes pay interest semiannually in arrears and have scheduled maturity dates in July 2021 and November 2020, respectively, unless earlier converted or repurchased by the holders pursuant to their terms. Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible into, at our election, cash, shares of our common stock or a combination of both, subject to the satisfaction of certain conditions and during specified periods. The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their notes for cash equal to 100% of the principal amount, plus accrued and unpaid interest, if we undergo a fundamental change specified in the agreements. We intend to settle the principal balance of our convertible debt in cash and have not assumed share settlement of the principal balance for purposes of computing EPS. At the time of issuance, there is no precedent or policy that would indicate that we would settle the principal in shares or the conversion spread in cash. Accounting guidance requires that convertible debt instruments with cash settlement features, including partial cash settlement, account for the liability component and equity component (conversion feature) of the instrument separately. The initial value of the liability component reflects the present value of the discoun |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loss-Sharing Obligations | |
Allowance for Loss-Sharing Obligations | Note 12—Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ 34,298 $ 30,511 Provision for loss sharing 4,879 7,126 Provision reversal for loan repayments (3,732) (3,283) Charge-offs, net (797) (56) Ending balance $ 34,648 $ 34,298 When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At December 31, 2019 and 2018, we had outstanding advances of $0.5 million and $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations. At December 31, 2019 and 2018, our allowance for loss-sharing obligations represented 0.23% and 0.25%, respectively, of the Fannie Mae servicing portfolio. At December 31, 2019 and 2018, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $2.73 billion and $2.46 billion, respectively. The maximum quantifiable liability is not representative of the actual loss we would incur. We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 13—Derivative Financial Instruments We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. We do not use these derivatives for speculative purposes, but are instead using them to manage our exposure to interest rate risk. Agency Rate Lock and Forward Sale Commitments. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower “rate locks” a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment. These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of other income, net in the consolidated statements of income. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. During 2019, 2018 and 2017, we recorded net losses of $7.8 million, net gains of $6.0 million and net losses of $1.4 million, respectively, from changes in the fair value of these derivatives in other income, net and $90.8 million, $98.8 million and $76.8 million, respectively, of income from MSRs. See Note 14 for details. Interest Rate Swap Futures. We enter into Swap Futures to hedge our exposure to changes in interest rates inherent in (1) our Structured Business SFR loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt, and (2) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization. The Swap Futures do not meet the criteria for hedge accounting, typically have a three-month maturity and are tied to the five-year and ten-year swap rates. Our Swap Futures are cleared by a central clearing house and variation margin payments, made in cash, are treated as a legal settlement of the derivative itself as opposed to a pledge of collateral. During 2019, we recorded realized losses of $0.4 million and unrealized gains of $0.2 million, respectively, to our Structured Business related to our Swap Futures. During 2019, we recorded realized gains of $4.6 million and unrealized gains of $1.5 million to our Private Label Agency Business related to our Swap Futures. The realized and unrealized gains and losses are recorded in other income, net on our consolidated statements of income. A summary of our non-qualifying derivative financial instruments is as follows ($in thousands): December 31, 2019 Notional Value Fair Value Notional Derivative Derivative Derivative Count Value Balance Sheet Location Assets Liabilities Agency Business Rate Lock Commitments 5 $ 37,657 Other Assets/Other Liabilities $ 1,066 $ (202) Forward Sale Commitments 79 483,576 Other Assets/Other Liabilities 369 (2,895) Swap Futures 3,274 327,400 — — $ 848,633 $ 1,435 $ (3,097) Structures Business Swap Futures 271 $ 27,100 Other Assets/Other Liabilities $ — $ — December 31, 2018 Agency Business Rate Lock Commitments 4 $ 18,161 Other Assets/Other Liabilities $ 324 $ (95) Forward Sale Commitments 90 491,125 Other Assets/Other Liabilities 5,789 (637) $ 509,286 $ 6,113 $ (732) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value. | |
Fair Value | Note 14—Fair Value Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands): December 31, 2019 December 31, 2018 Principal / Principal / Notional Carrying Estimated Notional Carrying Estimated Amount Value Fair Value Amount Value Fair Value Financial assets: Loans and investments, net $ 4,279,611 $ 4,189,960 $ 4,228,071 $ 3,283,342 $ 3,200,145 $ 3,249,499 Loans held-for-sale, net 847,126 861,360 876,975 472,964 481,664 489,546 Capitalized mortgage servicing rights, net n/a 286,420 328,995 n/a 273,770 322,463 Securities held-to-maturity, net 111,028 88,699 91,738 103,515 76,363 79,097 Derivative financial instruments 173,532 1,435 1,435 400,661 6,113 6,113 Financial liabilities: Credit and repurchase facilities $ 1,681,146 $ 1,678,288 $ 1,677,658 $ 1,138,135 $ 1,135,627 $ 1,135,774 Collateralized loan obligations 2,147,467 2,130,121 2,147,944 1,609,524 1,593,548 1,588,989 Debt fund 70,000 68,629 70,138 70,000 68,183 70,154 Senior unsecured notes 325,000 319,799 331,225 125,000 122,484 123,750 Convertible senior unsecured notes, net 300,914 284,152 310,778 270,057 254,768 267,324 Junior subordinated notes 154,336 140,949 97,668 154,336 140,259 95,873 Derivative financial instruments 347,701 3,097 3,097 108,625 732 732 Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows: Level 1 —Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Loans and investments, net. Fair values of loans and investments that are not impaired are estimated using inputs based on direct capitalization rate and discounted cash flow methodologies using discount rates, which, in our opinion, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality (Level 3). Fair values of impaired loans and investments are estimated using inputs that require significant judgments, which include assumptions regarding discount rates, capitalization rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plans and other factors (Level 3). Loans held-for-sale, net. Consists of originated loans that are generally transferred or sold within 60 days to 180 days of loan funding, and are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2). Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3). Capitalized mortgage servicing rights, net. Fair values are estimated using inputs based on discounted future net cash flow methodology (Level 3). The fair value of MSRs carried at amortized cost are estimated using a process that involves the use of independent third-party valuation experts, supported by commercially available discounted cash flow models and analysis of current market data. The key inputs used in estimating fair value include the contractually specified servicing fees, prepayment speed of the underlying loans, discount rate, annual per loan cost to service loans, delinquency rates, late charges and other economic factors. Securities held-to-maturity, net. Fair values are approximated using inputs based on current market quotes received from financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions (Level 3). Derivative financial instruments. The fair values of rate lock and forward sale commitments are estimated using valuation techniques, which include internally-developed models developed based on changes in the U.S. Treasury rate and other observable market data (Level 2). The fair value of rate lock commitments includes the fair value of the expected net cash flows associated with the servicing of the loans, see capitalized mortgage servicing rights, net above for details on the applicable valuation technique (Level 3). We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives. Given the credit quality of our counterparties, the short duration of interest rate lock commitments and forward sale contracts, and our historical experience, the risk of nonperformance by our counterparties is not significant. Credit facilities and repurchase agreements. Fair values for credit facilities and repurchase agreements of the Structured Business are estimated using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality (Level 3). The majority of our credit facilities and repurchase agreement for the Agency Business bear interest at rates that are similar to those available in the market currently and the fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values. Collateralized loan obligations, Debt Fund and junior subordinated notes. Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads (Level 3). Senior unsecured notes. Fair values are estimated at current market quotes received from active markets when available (Level 1). If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2). Convertible senior unsecured notes, net. Fair values are estimated based on current market quotes received from inactive markets (Level 2). We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities were determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 1,435 $ 1,435 $ — $ 369 $ 1,066 Financial liabilities: Derivative financial instruments $ 3,097 $ 3,097 $ — $ 3,097 $ — We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Net Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 59,657 $ 59,657 $ — $ — $ 59,657 Non-financial assets: Long-lived assets (2) $ 13,220 $ 13,220 $ — $ — $ 13,220 (1) We had an allowance for loan losses of $71.1 million relating to five loans with an aggregate carrying value, before loan loss reserves, of $130.7 million at December 31, 2019. (2) We recorded a $1.0 million impairment loss during 2019 on the hotel property we own. See Note 9 for details. Loan impairment assessments. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses, when such loan or investment is deemed to be impaired. We consider a loan impaired when, based upon current information, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance and corresponding charge to the provision for loan losses. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors. The table above and below includes all impaired loans, regardless of the period in which the impairment was recognized. Long-lived assets. We review our real estate owned assets when events or circumstances change, indicating that the carrying amount of an asset may not be partially or fully recoverable. In the evaluation of a real estate owned asset for impairment, many factors are considered, including broker quotes, estimated current and expected operating cash flows from the asset during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business. We first compare the undiscounted cash flows to be generated by the asset to the carrying value of such asset. If the undiscounted cash flows are less than the carrying value, we recognize an impairment loss by comparing the carrying value of the asset to its fair value. Quantitative information about Level 3 fair value measurements at December 31, 2019 is as follows ($ in thousands): Valuation Significant Fair Value Techniques Unobservable Inputs Financial assets: Impaired loans: Land $ 58,931 Discounted cash flows Discount rate 23.00 % Revenue growth rate 3.00 % Office 726 Discounted cash flows Discount rate 11.00 % Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 1,066 Discounted cash flows W/A discount rate 13.59 % Long-lived assets: Hotel proerty 10,208 Broker quotes N/A N/A The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs for the Year Ended December 31, 2019 2018 2017 Derivative assets Balance at beginning of period $ 324 $ 276 $ 2,816 Settlements (83,992) (98,791) (79,360) Realized gains recorded in earnings 83,668 98,515 76,544 Unrealized gains recorded in earnings 1,066 324 276 Balance at end of period $ 1,066 $ 324 $ 276 The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands): Notional/ Fair Value of Interest Rate Total Fair Principal Amount Servicing Rights Movement Effect Value Adjustment December 31, 2019 Rate lock commitments $ 37,657 $ 1,066 $ (202) $ 864 Forward sale commitments 483,576 — 202 202 Loans held-for-sale, net (1) 847,126 16,519 — 16,519 Total $ 17,585 $ — $ 17,585 (1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. We measure certain assets and liabilities for which fair value is only disclosed. The fair values of these assets and liabilities are determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 4,189,960 $ 4,228,071 $ — $ — $ 4,228,071 Loans held-for-sale, net 861,360 876,975 — 860,456 16,519 Capitalized mortgage servicing rights, net 286,420 328,995 — — 328,995 Securities held-to-maturity, net 88,699 91,738 — — 91,738 Financial liabilities: Credit and repurchase facilities $ 1,678,288 $ 1,677,658 $ — $ 743,594 $ 934,064 Collateralized loan obligations 2,130,121 2,147,944 — — 2,147,944 Debt fund 68,629 70,138 — — 70,138 Senior unsecured notes 319,799 331,225 331,225 — — Convertible senior unsecured notes, net 284,152 310,778 — 310,778 — Junior subordinated notes 140,949 97,668 — — 97,668 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15—Commitments and Contingencies Agency Business Commitments. Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements. As of December 31, 2019, we were required to maintain at least $14.4 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement. We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. As of December 31, 2019, we met the restricted liquidity requirement with a $45.0 million letter of credit and $1.9 million of cash collateral. As of December 31, 2019, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $36.3 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash. We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. As of December 31, 2019, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. We are also subject to capital requirements on an annual basis for Ginnie Mae and FHA and we believe we have met all requirements as of December 31, 2019. As an approved designated seller/servicer under Freddie Mac’s SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit. We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 13 and Note 14. Debt Obligations and Operating Leases. As of December 31, 2019, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands): Minimum Annual Debt Operating Lease Year Obligations Payments Total 2020 $ 1,629,115 $ 5,301 $ 1,634,416 2021 495,601 3,044 498,645 2022 1,479,600 2,775 1,482,375 2023 496,049 2,052 498,101 2024 215,154 1,459 216,613 Thereafter 363,344 3,304 366,648 Total $ 4,678,863 $ 17,935 $ 4,696,798 As of December 31, 2019, our leases had remaining lease terms of 0.7 – 7.2 years with a weighted average remaining lease term of 5.2 years and a weighted average discount rate of 4.7%. We recorded lease expense of $6.1 million, $5.4 million and $4.7 million during 2019, 2018 and 2017, respectively. Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $163.8 million as of December 31, 2019 that we are obligated to fund as borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. Litigation. We are currently neither subject to any material litigation nor, to the best of our knowledge, threatened by any material litigation other than the following: In June 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the "Trust"), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc. and the Homestead Village L.L.C. family of companies (together "ESI") (formerly Chapter 11 debtors, together the "Debtors") that have emerged from bankruptcy. Two of the lawsuits were filed in the U.S. Bankruptcy Court for the Southern District of New York, and the third in the Supreme Court of the State of New York, New York County. There were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain other entities that are affiliates of ours are included as defendants. The New York State Court action has been removed to the Bankruptcy Court. Our affiliates filed a motion to dismiss the three lawsuits. The lawsuits all allege, as a factual basis and background certain facts surrounding the June 2007 leveraged buyout of ESI from affiliates of Blackstone Capital. Our subsidiary, Arbor ESH II, LLC, had a $115.0 million investment in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. The New York State Court action and one of the two federal court actions name as defendants, Arbor ESH II, LLC, Arbor Commercial Mortgage, LLC (“ACM”) and ABT-ESI LLC, an entity in which we have a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged in these complaints, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. These two complaints also allege that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment ("Fiduciary Duty Claims") and name a director of ours, and a former general counsel of ACM, each of whom had served on the Board of Directors of ESI for a period of time. We are defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors' bankruptcy filing. In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, has named ACM and ABT-ESI LLC, together with a number of other defendants and asserts claims, including constructive and fraudulent conveyance claims under state and federal statutes, as well as a claim under the Federal Debt Collection Procedure Act. In June 2013, the Trust filed a motion to amend the lawsuits, to, among other things, (i) consolidate the lawsuits into one lawsuit, (ii) remove 47 defendants, none of whom are related to us, from the lawsuits so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (iii) reduce the counts within the lawsuits from over 100 down to 17. The remaining counts in the amended complaint against our affiliates are principally state law claims for breach of fiduciary duties, waste, unlawful dividends and unjust enrichment, and claims under the Bankruptcy Code for avoidance and recovery actions, among others. The bankruptcy court granted the motion and the amended complaint has been filed. The amended complaint seeks approximately $139.0 million in the aggregate, plus interest from the date of the alleged unlawful transfers, from director designees, portions of which are also sought from our affiliates as well as from unaffiliated defendants. We have moved to dismiss the referenced actions and intend to vigorously defend against the claims asserted therein. During a status conference held in March 2014, the Court heard oral argument on the motion to dismiss and adjourned the case pending a ruling. Subsequent to that hearing, a new judge was assigned to the case and, in November 2016, the new judge entered an order directing the parties to file supplemental briefs addressing new cases decided since the last round of briefing. Oral arguments regarding the motion to dismiss were heard at a hearing held in January 2017. The Court reserved decision at that hearing. The next hearing is scheduled for February 19, 2020. We have not made a loss accrual for this litigation because we believe that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated. Litigation Settlement. In 2018, we received net proceeds of $10.2 million from the settlement of a litigation related to a prior investment, which was recognized as a gain. Due to Borrowers. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Variable Interest Entities | Note 16—Variable Interest Entities Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO and Debt Fund entities, which we consolidate, are VIEs. ARLP is already consolidated in our financial statements, therefore, the identification of this entity as a VIE had no impact on our consolidated financial statements. Our CLO and Debt Fund consolidated entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We, or one of our affiliates, are named collateral manager, servicer, and special servicer for all collateral assets held in CLOs, which we believe gives us the power to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests and also have rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued by the CLOs and Debt Fund to third parties. Our operating results and cash flows include the gross amounts related to CLO and Debt Fund assets and liabilities as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands): December 31, 2019 December 31, 2018 Assets: Restricted cash $ 208,467 $ 179,855 Loans and investments, net 2,557,909 2,001,617 Other assets 18,380 16,624 Total assets $ 2,784,756 $ 2,198,096 Liabilities: Collateralized loan obligations $ 2,130,121 $ 1,593,548 Debt fund 68,629 68,183 Due to related party 6,734 — Other liabilities 4,115 3,408 Total liabilities $ 2,209,599 $ 1,665,139 Assets held by the CLOs and Debt Fund are restricted and can only be used to settle obligations of the CLOs and Debt Fund, respectively. The liabilities of the CLOs and Debt Fund are non-recourse to us and can only be satisfied from each respective asset pool. See Note 11 for details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the consolidated CLOs or Debt Fund. Unconsolidated VIEs . We determined that we are not the primary beneficiary of 30 VIEs in which we have a variable interest as of December 31, 2019 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance. A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of December 31, 2019 is as follows (in thousands): Carrying Type Amount (1) Loans $ 436,169 B Piece and SFR bonds 88,699 Equity investments 12,961 Agency interest only strips 2,735 Total $ 540,564 (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2019, $129.0 million of loans to VIEs had corresponding loan loss reserves of $69.4 million. See Note 3 for details. In addition, the maximum loss exposure as of December 31, 2019 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $4.48 billion at December 31, 2019. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Equity | Note 17—Equity Preferred Stock. The Series A, B and C preferred stock outstanding are redeemable by us. Common Stock. In December 2019, we completed a public offering in which we sold 7,475,000 shares of our common stock (which includes the underwriter's exercised over-allotment option of 975,000 shares) for $13.93 per share, and received net proceeds of $104.0 million after deducting the underwriter's discount and other offering expenses. The proceeds were used to make investments related to our business and for general corporate purposes. We also used a portion of the net proceeds to purchase, in February 2020, an aggregate of 747,500 shares of our common stock and OP Units from our chief executive officer and ACM at the same price the underwriters paid to purchase the shares. In May 2019, we completed a public offering in which we sold 9,200,000 shares of our common stock (which includes the underwriter's exercised over-allotment option of 1,200,000 shares) for $12.58 per share, and received net proceeds of $115.6 million after deducting the underwriter's discount and other offering expenses. The proceeds were used to make investments related to our business and for general corporate purposes. We also used a portion of the net proceeds to purchase an aggregate of 920,000 shares of our common stock from our chief executive officer and ACM at the same price the underwriters paid to purchase the shares. In August 2019, we amended our “At-The-Market” equity offering sales agreement with JMP Securities LLC (“JMP”). In connection with the amendment we are entitled to issue and sell up to 7,500,000 shares of our common stock through JMP by means of ordinary brokers’ transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. During 2019, we sold an aggregate of 3,162,000 shares under the JMP agreement for net proceeds of $41.0 million. As of February 7, 2020, we had approximately 3,000,000 shares available under this agreement. During 2019, we issued approximately 4,700,000 shares of our common stock in connection with the exchanges and subsequent settlements of our 5.25% convertible notes, 5.375% convertible notes and 6.50% convertible notes. In December 2018, our Board of Directors declared a special dividend of $0.15 per common share, which was paid in January 2019 with a combination of $2.5 million of cash and 901,432 common shares. As of December 31, 2019, we had $137.9 million available under our $500.0 million shelf registration statement that was declared effective by the SEC in June 2018. Noncontrolling Interest. Noncontrolling interest relates to the OP Units issued to satisfy a portion of the purchase price in connection with the Acquisition. Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one-for-one basis. In 2019, we redeemed 391,156 OP Units with a combination of cash totaling $1.7 million and 258,677 common shares. We also redeemed 577,185 OP Units in 2018 for cash totaling $6.8 million. In addition, our Board of Directors declared a special dividend of $0.15 per common share in December 2018, which was paid to the OP Unit holders in a combination of $0.6 million of cash and 221,666 OP Units in January 2019. At December 31, 2019, there were 20,484,094 OP Units outstanding, which represented 15.7% of the voting power of our outstanding stock. Distributions. Dividends declared (on a per share basis) for the year ended December 31, 2019 are as follows: Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C February 13, 2019 $ 0.27 February 1, 2019 $ $ $ May 1, 2019 $ 0.28 May 1, 2019 $ $ $ July 31, 2019 $ 0.29 July 31, 2019 $ $ $ October 30, 2019 $ 0.30 October 30, 2019 $ $ $ (1) The dividend declared on February 1, 2019 was for December 1, 2018 through February 28, 2019. The dividend declared on May 1, 2019 was for March 1, 2019 through May 31, 2019. The dividend declared on July 31, 2019 was for June 1, 2019 through August 31, 2019. The dividend declared on October 30, 2019 was for September 1, 2019 through November 30, 2019. Common Stock –On February 13, 2020, the Board of Directors declared a cash dividend of $0.30 per share of common stock. The dividend is payable on March 17, 2020 to common stockholders of record as of the close of business on February 28, 2020. Preferred Stock –On January 31, 2020, the Board of Directors declared a cash dividend of $0.515625 per share of 8.25% Series A preferred stock; a cash dividend of $0.484375 per share of 7.75% Series B preferred stock; and a cash dividend of $0.53125 per share of 8.50% Series C preferred stock. These amounts reflect dividends from December 1, 2019 through February 29, 2020 and are payable on March 2, 2020 to preferred stockholders of record on February 15, 2020. We have determined that 100% of the common stock and preferred stock dividends paid during 2019, 2018 and 2017 represented ordinary income to our stockholders for income tax purposes. Pursuant to Internal Revenue Code Section 59(d), alternative minimum tax (“AMT”) could be apportioned between a REIT and its stockholders’ to the extent the REIT distributes its regular taxable income. However, among the numerous provisions included in the Tax Reform enacted in December 2017, the AMT was repealed for corporate taxpayers. Therefore, the apportionment of AMT between a REIT and its stockholders is no longer applicable for tax years beginning after December 31, 2017. Deferred Compensation. We have a stock incentive plan under which the Board of Directors has the authority to issue shares of stock to certain employees, officers, directors and, prior to May 31, 2017, employees of our Former Manager. In 2019, 2018 and 2017, we granted 333,884 shares, 265,444 shares and 299,750 shares, respectively, of restricted common stock with a total grant date fair value of $4.2 million, $2.3 million and $2.4 million, respectively, to certain employees of ours and our Former Manager. One third of the shares vested as of the grant date and one third will vest on each of the first and second anniversaries of the grant date. In 2019, 2018 and 2017, we granted 55,244 shares, 67,002 shares and 74,375 shares, respectively, of fully vested common stock with a grant date fair value of $0.7 million, $0.6 million and $0.6 million, respectively, to the independent members of our Board of Directors. In July 2019, we also issued 124,069 shares of restricted common stock to an employee with a total grant date fair value of $1.5 million. One quarter of the shares vested as of the grant date and one quarter will vest on each of the first, second and third anniversaries of the grant date. In 2019, 2018 and 2017, we granted our chief executive officer 58,738 shares 63,584 shares 74,830 shares, respectively, of restricted common stock with a grant date fair value of $0.7 million, $0.6 million and $0.6 million, respectively, and up to 352,427, 381,503 and 448,980, respectively, of performance-based restricted stock units with a grant date fair value of $1.7 million, $0.8 million and $1.0 million, respectively. One quarter of the restricted common stock vested on the grant date and one quarter will vest on each of the first, second and third anniversaries of the grant date. The performance-based restricted stock units vest at the end of a four-year performance period based on our achievement of certain total stockholder return objectives. To date, our chief executive officer was granted in the aggregate up to 2,050,023 performance-based restricted stock units, of which 421,348 units and 445,765 units fully vested based on achieving the performance objectives for the four-year periods ended December 31, 2019 and 2018, respectively. The 445,765 fully vested units were net settled for 203,492 common shares in 2019. In 2019, 2018 and 2017, we also granted our chief executive officer 246,508 shares, 294,985 shares and 357,569 shares, respectively, of performance-based restricted stock with a grant date fair value of $3.0 million, $3.4 million and $2.7 million, respectively, as a result of achieving goals related to the integration of the Acquisition. The performance-based restricted stock vests in full three years after the grant date. During 2019, 2018 and 2017, we recorded total stock-based compensation expense of $8.8 million, $5.4 million and $3.2 million, respectively, to employee compensation and benefits and $0.7 million, $0.6 million and $1.7 million, respectively, to selling and administrative expense. During 2019, a total of 900,092 shares of restricted stock and restricted stock units with a grant date fair value of $5.9 million vested. As of December 31, 2019 and 2018, there were 1,379,615 shares and 1,033,616 shares, respectively, of unvested restricted common stock with a grant date fair value of $14.8 million and $9.5 million, respectively. At December 31, 2019, total unrecognized compensation cost related to unvested restricted common stock was $7.0 million, which is expected to be recognized ratably over the remaining weighted-average vesting period of 1.8 years. Earnings Per Share. Basic EPS is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method. Our common stock equivalents include the weighted average dilutive effect of performance-based restricted stock units granted to our chief executive officer, OP Units and convertible senior unsecured notes. A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows: Year Ended December 31, 2019 2018 2017 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 121,074 $ 121,074 $ 108,312 $ 108,312 $ 65,835 $ 65,835 Net income attributable to noncontrolling interest (2) — 26,610 — 32,185 — 24,120 Net income attributable to common stockholders and noncontrolling interest $ 121,074 $ 147,684 $ 108,312 $ 140,497 $ 65,835 $ 89,955 Weighted average shares outstanding 92,851,327 92,851,327 70,208,165 70,208,165 57,890,574 57,890,574 Dilutive effect of OP Units (2) — 20,502,128 — 21,033,103 — 21,230,769 Dilutive effect of restricted stock units (3) — 1,421,528 — 1,476,653 — 1,092,072 Dilutive effect of convertible notes (4) — 1,417,968 — 908,861 — 97,837 Dilutive effect of stock dividend (5) — — — 15,386 — — Weighted average shares outstanding 92,851,327 116,192,951 70,208,165 93,642,168 57,890,574 80,311,252 Net income per common share (1) $ 1.30 $ 1.27 $ 1.54 $ 1.50 $ 1.14 $ 1.12 (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Mr. Kaufman is granted restricted stock units annually, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. (4) The convertible senior unsecured notes impact diluted earnings per share if the average price of our common stock exceeds the conversion price, as calculated in accordance with the terms of the indenture. (5) Represents the dilutive effect of the portion of the special dividend that was paid with common shares. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 18—Income Taxes We are organized and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code. A REIT is generally not subject to federal income tax on taxable income which it distributes to its stockholders, provided that it distributes at least 90% of its REIT–taxable income and meets certain other requirements. Certain REIT income may be subject to state and local income taxes. In 2019, we elected to retain excess inclusion income rather than passing it through to our shareholders. Consequently, we had REIT-federal taxable income, net of dividends paid deduction, for 2019, and therefore, have provided for REIT federal income tax expense of $0.6 million attributable to excess inclusion income. We did not have any REIT–federal taxable income, net of dividends paid and net operating loss deductions, for 2018 and 2017, and therefore, have not provided for REIT federal income tax expense. The REIT incurred state tax expense/(benefit) for 2019, 2018 and 2017 , in the amount of $0.1 million, ($0.1 ) million and $1.0 million, respectively. For the 2009 and 2010 tax years, the income and the tax on certain debt extinguishment transactions was, at our election, deferred to be recognized ratably over five years from 2014 to 2018. Certain of our assets and operations that would not otherwise comply with the REIT requirements, such as the Agency Business, are owned or conducted through our TRS Consolidated Group, the majority of the income of which is subject to U.S. federal, state and local income taxes. The TRS Consolidated Group has federal net operating losses from prior years which will be used against the income from the Agency Business. For 2019, 2018 and 2017, we recorded a provision for income taxes related to the assets held in the TRS Consolidated Group and the REIT in the amount of $15.0 million, $9.7 million and $13.4 million, respectively. In 2019, valuation allowance previously recorded at the TRS Consolidated Group was released in the amount of $3.3 million on the deferred tax assets subject to loss limitation rules. In 2018, valuation allowance was recorded at the TRS Consolidated Group in the amount of $0.3 million on the deferred tax assets related to capital loss carryforwards. In 2017, valuation allowance previously recorded at the TRS Consolidated Group was released in the amount of $3.5 million. In January 2018, the $50.0 million preferred equity interest entered into with ACM to finance a portion of the Acquisition purchase price was paid off. When we entered into the Acquisition, we established a deferred tax liability in connection with the $50.0 million preferred equity interest. Upon payoff in January 2018, the deferred tax liability was written off and we recorded a deferred tax benefit in the amount of $12.5 million. See Note 19 for details. A summary of our pre-tax GAAP income is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Pre-tax GAAP income: REIT $ 94,076 $ 64,260 $ 66,988 TRS Consolidated Group 76,198 93,522 43,880 Total pre-tax GAAP income $ 170,274 $ 157,782 $ 110,868 Our provision for (benefit from) income taxes is comprised as follows (in thousands): Year Ended December 31, 2019 2018 2017 Current tax provision: Federal $ 12,380 $ 17,479 $ 17,201 State 2,505 4,285 3,557 Total 14,885 21,764 20,758 Deferred tax provision (benefit) : Federal $ 2,744 $ (9,446) $ (2,928) State 688 (2,867) (929) Valuation allowance (3,281) 280 (3,542) Total 151 (12,033) (7,399) Total income tax expense $ 15,036 $ 9,731 $ 13,359 A reconciliation of our effective income tax rate as a percentage of pre-tax income to the U.S. federal statutory rate is as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % REIT non-taxable income (11.3) (8.6) (21.2) State and local income taxes, net of federal tax benefit 1.5 0.6 1.6 Change in valuation allowance (1.9) 0.2 (1.3) Preferred equity interest deferred tax write-off — (6.3) — Tax rate change — — (4.8) Other (0.5) (0.7) 2.7 Effective income tax rate 8.8 % 6.2 % 12.0 % The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Expenses not currently deductible $ 14,850 $ 11,853 Loan loss reserves 8,863 8,614 Net operating and capital loss carryforwards 417 417 Valuation allowance (417) (3,698) Deferred tax assets, net $ 23,713 $ 17,186 Deferred tax liabilities: Interest in equity affiliates–net $ 1,587 $ 136 Intangibles 8,684 9,674 Mortgage servicing rights 11,476 5,290 Other 837 807 Deferred tax liabilities, net $ 22,584 $ 15,907 The Tax Reform was signed into law on December 22, 2017. Among numerous provisions included in the new tax law was the reduction of the corporate federal income tax rate from 35% to 21%. The provision for income taxes for 2019 and 2018 reflects the newly enacted corporate federal income tax rate of 21%. We applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Reform throughout 2018 and in 2017. At December 31, 2018, we completed our accounting for the enactment-date income tax effects of the Tax Reform and no material adjustments were recorded. At December 31, 2017, the provision for income taxes for 2017 included the newly enacted corporate federal income tax rate of 21%, which resulted in a deferred income tax benefit of approximately $5.3 million primarily from applying the new lower income tax rates to our net long term deferred tax assets and liabilities recorded on our consolidated balance sheets. At December 31, 2019, our TRS Consolidated Group, had approximately $23.7 million of deferred tax assets net of a $0.4 million valuation allowance. The deferred tax assets consist of expenses not currently deductible, loan loss reserves, net operating loss and capital loss carryforwards. Our TRS Consolidated Group's deferred tax assets are offset by approximately $22.6 million in deferred tax liabilities consisting of timing differences from investments in equity affiliates, intangibles, and mortgage servicing rights. At December 31, 2018, our TRS Consolidated Group, had approximately $17.2 million of deferred tax assets net of a $3.7 million valuation allowance. The deferred tax assets consist of expenses not currently deductible, loan loss reserves, net operating loss and capital loss carryforwards. Our TRS Consolidated Group's deferred tax assets are offset by approximately $15.9 million in deferred tax liabilities consisting of timing differences from investments in equity affiliates, intangibles, and mortgage servicing rights. As of both December 31, 2019 and 2018, the REIT (excluding the TRS Consolidated Group) had no federal net operating loss carryforwards remaining and no capital loss carryforwards. At both of December 31, 2019 and 2018, the TRS Consolidated Group had federal and state net operating loss carryforwards of approximately $0.5 million, which will expire through 2031 and capital loss carryforwards of approximately $1.1 million, which will expire through 2023. We have assessed our tax positions for all open years, which includes 2016-2019, and have concluded that there were no material uncertainties to be recognized. We have not recognized any interest and penalties related to tax uncertainties for the years ended 2016 through 2019. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Agreements and Transactions with Related Parties | |
Agreements and Transactions with Related Parties | Note 19—Agreements and Transactions with Related Parties Management Agreement. Prior to May 31, 2017, we had a management agreement with ACM, pursuant to which ACM provided us with a variety of professional and advisory services vital to our operations, including underwriting, accounting and treasury, compliance, marketing, information technology and human resources. Pursuant to the terms of the management agreement, we reimbursed ACM for its actual costs incurred in connection with managing our business through a base management fee, and, under certain circumstances, an annual incentive fee. In May 2017, we terminated the existing management agreement. We incurred base management fees of $6.7 million in 2017. Shared Services Agreement. We have a shared services agreement with ACM where we provide limited support services to ACM and they reimburse us for the costs of performing such services. During 2019, 2018 and 2017, we incurred $2.7 million, $1.3 million and $0.7 million, respectively, of costs for services provided to ACM, which are included in due from related party on the consolidated balance sheets. Other Related Party Transactions. Due from related party was $11.3 million and $1.3 million at December 31, 2019 and 2018, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of 2019 and amounts due from ACM for costs incurred in connection with the shared services agreement described above. Due to related party was $13.1 million at December 31, 2019 and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions. In certain instances our business requires our executives to charter privately-owned aircraft in furtherance of our business. In October 2019, we entered into an aircraft time sharing agreement with an entity controlled by our chief executive officer that owns a private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives' charter. During 2019, we reimbursed the aircraft owner $0.1 million for the flights chartered by our executives pursuant the agreement. In the first quarter of 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment (of which $10.9 million was funded as of December 31, 2019) for an 18% interest in AMAC III. In July 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower which we have an outstanding $34.0 million bridge loan. In connection with the AMAC III mezzanine loan, we entered into an inter-creditor agreement with AMAC III. In addition, we originated a $15.6 million Private Label loan in December 2019 to a borrower which is 100% owned by AMAC III, which bears interest at a fixed rate of 3.735% and matures in January 2030. We received a $0.2 million cash distribution and recorded a $0.2 million loss in 2019 related to this investment. Interest income recorded from our bridge and Private Label loans totaled $3.3 million for 2019. In November 2018, we originated a $61.2 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 10% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.50% with a LIBOR floor of 2.00% and matures in October 2021. In the fourth quarter of 2019, the loan commitment was reduced to $22.6 million (of which $17.4 million was funded as of December 31, 2019) and the related party investors liquidated their equity investment. Interest income recorded from this loan totaled $1.3 million and $0.2 million for 2019 and 2018, respectively. In October 2018, we originated a $37.5 million bridge loan, which was used to purchase several multifamily properties. In January 2019, an entity owned, in part, by an immediate family member of our chief executive officer, purchased a 23.9% interest in the borrowing entity. The loan has an interest rate of LIBOR plus 4.25% with a LIBOR floor of 2.375% and matures in October 2020. Interest income recorded from this loan totaled $2.7 million for 2019. In October 2018, we acquired a $19.5 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 85% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.0% with a LIBOR floor of 2.125% and matures in July 2021. Interest income recorded from this loan totaled $1.3 million and $0.3 million for 2019 and 2018, respectively. In August 2018, we originated a $17.7 million bridge loan to an entity owned, in part, by an immediate family member of our chief executive officer, who owns a 10.8% interest in the borrowing entity. The loan was used to purchase several undeveloped parcels of land. The loan has a fixed interest rate of 10% and is scheduled to mature in February 2020. In September 2019, the borrower made a partial paydown of principal totaling $4.7 million and the remaining balance was paid off in January 2020. Interest income recorded from this loan totaled $1.8 million and $0.8 million for 2019 and 2018, respectively. In June 2018, we originated a $21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% in the borrowing entity. The loan has an interest rate of LIBOR plus 4.75% with a LIBOR floor of 1.25% and matures in June 2021. Interest income recorded from this loan totaled $1.4 million and $0.6 million for 2019 and 2018, respectively. In April 2018, we acquired a $9.4 million bridge loan originated by ACM, of which $8.6 million was funded as of December 31, 2019. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and matures in January 2021. Interest income recorded from this loan totaled $0.6 million and $0.3 million for 2019 and 2018, respectively. In January 2018, we paid $50.0 million in full satisfaction of the related party financing we entered into with ACM to finance a portion of the Acquisition purchase price. We incurred interest expense related to this financing of $ 0.3 million and $3.8 million for 2018 and 2017, respectively. In December 2017, we acquired a $32.8 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 90% of the borrowing entity. The loan had an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.13% and was scheduled to mature in June 2020. In October 2019, the borrower repaid this loan in full.Interest income recorded from this loan totaled $1.7 million, $2.4 million and $0.1 million for 2019, 2018 and 2017, respectively. In the fourth quarter of 2017, we originated two bridge loans totaling $28.0 million on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 45% of the borrowing entity. The loans had an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and was scheduled to mature in the fourth quarter of 2020. The borrower refinanced these loans with a $31.1 million bridge loan we originated in November 2019 with an interest rate of LIBOR plus 4.0%, a LIBOR floor of 1.80% and a maturity date in October 2021. Interest income recorded from these loans totaled $2.2 million, $2.1 million and $0.2 million for 2019, 2018 and 2017, respectively. In July 2017, we originated a $36.0 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 95% interest in the borrowing entity. The loan had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 1% and was scheduled to mature in July 2020. This loan was repaid in full in August 2018. Interest income recorded from this loan totaled $ 1.9 million and $0.9 million for 2018 and 2017, respectively. In May 2017, we originated a $46.9 million Fannie Mae loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers) which owns a 17.6% interest in the borrowing entity. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 5% of the original UPB. Servicing revenue recorded from this loan was $0.1 million , $0.1 million and less than $0.1 million for 2019, 2018 and 2017, respectively. In March 2017, a consortium of investors (which includes, among other unaffiliated investors, our chief executive officer and ACM) invested $2.0 million for a 26.1% ownership interest in two portfolios of multifamily properties which has two bridge loans totaling $14.8 million originated by us in 2016. The loans had an interest rate of LIBOR plus 5.25% with a LIBOR floor of 0.5% and were scheduled to mature in November 2018. One of the loans was repaid in full in the fourth quarter of 2017 and the remaining loan paid off in June 2018. Interest income recorded from these loans totaled $0.3 million and $1.0 million for 2018 and 2017, respectively. In January 2017, we modified a $5.0 million preferred equity investment, subsequently increasing our balance to $15.0 million, with a commitment to fund an additional $5.0 million. This investment had a fixed interest rate of 11% that was scheduled to mature in January 2020. We also entered into an agreement with a consortium of investors (which include, among other unaffiliated investors, certain of our officers and our chief executive officer) which admitted them as a member to fund the remaining $5.0 million preferred equity investment, which was generally subordinate to our investment. The principal balance was repaid in full in the fourth quarter of 2017. Interest income recorded from our investment totaled $1.1 million for 2017. In January 2017, Ginkgo Investment Company LLC (“Ginkgo”), of which one of our directors is a 33% managing member, purchased a multifamily apartment complex which assumed an existing $8.3 million Fannie Mae loan that we service. Ginkgo subsequently sold the majority of its interest in this property and owned a 3.6% interest at December 31, 2019. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 20% of the original UPB. Upon the sale, we received a 1% loan assumption fee which was governed by existing loan agreements that were in place when the loan was originated in 2015, prior to such purchase. Servicing revenue recorded from this loan was $0.1 million for all periods presented. In 2016, we originated $48.0 million of bridge loans on six multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12.0% in the borrowing entities. The loans have an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and were scheduled to mature in September 2019. In 2017, a $6.8 million loan on one property paid off in full and in 2018 four additional loans totaling $28.3 million paid off in full. In January 2019, $10.9 million of the $12.9 million remaining bridge loan paid off, with the $2.0 million remaining UPB converting to a mezzanine loan with a fixed interest rate of 10.0% and a January 2024 maturity. Interest income recorded from these loans totaled $0.3 million, $1.9 million and $2.7 million for 2019, 2018 and 2017, respectively. In 2016, we originated a $12.7 million bridge loan and a $5.2 million preferred equity investment on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and the preferred equity investment has a fixed interest rate of 10%. The bridge loan and the preferred equity investment paid off in full in May 2019. Interest income recorded from these loans totaled $0.6 million, $1.4 million and $1.3 million for 2019, 2018 and 2017, respectively . In 2016, we originated a $19.0 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 7.5% interest in the borrowing entity. The loan had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and was scheduled to mature in January 2019. In January 2018, this loan paid off in full. Interest income recorded from this loan totaled $0.3 million and $1.1 million for 2018 and 2017, respectively. In 2015, we invested $9.6 million for 50% of ACM’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in this entity. Since the initial investment, we invested an additional $16.1 million through this joint venture in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform and we received cash distributions totaling $16.9 million (that were classified as returns of capital) as a result of the joint venture selling most of its mortgage assets. We recorded income from these investments of $7.2 million, $0.9 million and a loss of $7.2 million for 2019, 2018 and 2017, respectively. In connection with a litigation settlement related to this investment, we provided a guaranty of up to 50% of any amounts payable in connection with the settlement. ACM has also provided us with a guaranty to pay up to 50% of any amounts we may pay under this guaranty. As of December 31, 2019, our maximum exposure under this guaranty totals $0.4 million. We have not accrued this amount as we do not believe that we will be required to make any nonrefundable payments under this guaranty. Interest income recorded from loans originated in 2015 or prior years with our affiliates totaled $1.3 million and $5.8 million for 2018 and 2017, respectively. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In June 2018, the owners of Lexford restructured part of its debt and we originated twelve bridge loans totaling $280.5 million, which were used to repay in full certain existing mortgage debt and to renovate 72 multifamily properties included in the portfolio. The loans, which we originated in June 2018, have interest rates of LIBOR plus 4.0% and mature in June 2021 (with 2 one-year extension options). During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million. Interest income recorded from these loans totaled $9.6 million and $10.1 million during 2019 and 2018, respectively. Further, as part of this June 2018 restructuring, $50.0 million in unsecured financing was provided by an unsecured lender to certain parent entities of the property owners. ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing. In addition, in connection with our equity investment, we received distributions totaling $3.5 million, $2.5 million and $ 2.5 million during 2019, 2018 and 2017, respectively, which were recorded as income (loss) from equity affiliates. Separate from the loans we originated in June 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us. At December 31, 2019, this debt had an aggregate outstanding balance of $617.9 million and is scheduled to mature between 2020 and 2029. Several of our executives, including our chief financial officer, general counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 31% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. Upon the closing of the Acquisition in 2016, we issued OP Units, each paired with one share of our special voting preferred shares. At December 31, 2019, ACM holds 4,285,694 shares of our common stock and 14,685,729 OP Units, which represents 14.6% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | Note 20—Employee Benefits 401(k). We have a 401(k) defined contribution plan (the "401(k) Plan") which is available to all employees who have completed six months of continuous service. The 401(k) Plan matches 25% of the first 6% of each employee's contribution. We have the option to increase the employer match based on our operating results. In 2019, 2018 and 2017, we recorded $0.7 million, $0.6 million and $0.6 million, respectively, of expenses associated with the 401(k) Plan, which is included in employee compensation and benefits in our consolidated statements of income . Deferred Compensation. We have a non-qualified deferred compensation plan (the “Deferred Comp Plan") which is offered to certain full-time employees and is subject to the rules of section 409(a) of the Internal Revenue Code. Under the Deferred Comp Plan, which can be modified or discontinued at any time, participating employees may defer a portion of their compensation and we are contractually obligated to match the contribution, as specified in the Deferred Comp Plan, and fund such amounts upon vesting and an election by participants to redeem their interests. All employee deferrals vest immediately and matching contributions vest over a nine-year period beginning after year five. For 2019, 2018 and 2017, there were $4.7 million, $3.4 million and $2.4 million, respectively, of employee deferrals. At December 31, 2019 and 2018, we had recorded liabilities totaling $13.2 million and $8.8 million, respectively, and assets of $8.2 million and $5.9 million, respectively, related to the Deferred Comp Plan, which is included in other liabilities and other assets, respectively, in our consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | Note 21—Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses, management fees (through May 31, 2017—effective date of the termination of the existing management agreement with ACM) and stock-based compensation. Year Ended December 31, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 289,841 $ 26,099 $ — $ 315,940 Interest expense 169,802 16,597 — 186,399 Net interest income 120,039 9,502 — 129,541 Other revenue: Gain on sales, including fee-based services, net — 65,652 — 65,652 Mortgage servicing rights — 90,761 — 90,761 Servicing revenue — 103,223 — 103,223 Amortization of MSRs — (48,681) — (48,681) Property operating income 9,674 — — 9,674 Other income, net 903 (1,687) — (784) Total other revenue 10,577 209,268 — 219,845 Other expenses: Employee compensation and benefits 31,264 90,838 — 122,102 Selling and administrative 18,099 22,230 — 40,329 Property operating expenses 10,220 — — 10,220 Depreciation and amortization 2,046 5,464 — 7,510 Impairment loss on real estate owned 1,000 — — 1,000 Provision for loss sharing (net of recoveries) — 1,147 — 1,147 Total other expenses 62,629 119,679 — 182,308 Income before extinguishment of debt, income from equity affiliates and income taxes 67,987 99,090 — 167,078 Loss on extinguishment of debt (7,439) — — (7,439) Income from equity affiliates 10,635 — — 10,635 Provision for income taxes (668) (14,368) — (15,036) Net income 70,515 84,722 — 155,238 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 26,610 26,610 Net income attributable to common stockholders $ 62,961 $ 84,722 $ (26,610) $ 121,074 Year Ended December 31, 2018 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 226,750 $ 25,018 $ — $ 251,768 Interest expense 137,719 15,770 329 153,818 Net interest income 89,031 9,248 (329) 97,950 Other revenue: Gain on sales, including fee-based services, net — 70,002 — 70,002 Mortgage servicing rights — 98,839 — 98,839 Servicing revenue — 94,158 — 94,158 Amortization of MSRs — (48,124) — (48,124) Property operating income 10,095 — — 10,095 Other income, net 1,490 6,671 — 8,161 Total other revenue 11,585 221,546 — 233,131 Other expenses: Employee compensation and benefits 27,456 83,014 — 110,470 Selling and administrative 15,642 21,432 — 37,074 Property operating expenses 10,431 — — 10,431 Depreciation and amortization 1,851 5,602 — 7,453 Impairment loss on real estae owned 2,000 — — 2,000 Provision for loss sharing (net of recoveries) — 3,843 — 3,843 Provision for loan losses (net of recoveries) 8,353 — — 8,353 Litigation settlement gain (10,170) — — (10,170) Total other expenses 55,563 113,891 — 169,454 Income before extinguishment of debt, income from equity affiliates and income taxes 45,053 116,903 (329) 161,627 Loss on extinguishment of debt (5,041) — — (5,041) Income from equity affiliates 1,196 — — 1,196 Benefit from (provision for) income taxes 774 (10,505) — (9,731) Net income 41,982 106,398 (329) 148,051 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 32,185 32,185 Net income attributable to common stockholders $ 34,428 $ 106,398 $ (32,514) $ 108,312 Year Ended December 31, 2017 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 136,526 $ 19,651 $ — $ 156,177 Interest expense 74,136 12,089 3,847 90,072 Net interest income 62,390 7,562 (3,847) 66,105 Other revenue: Gain on sales, including fee-based services, net — 72,799 — 72,799 Mortgage servicing rights — 76,820 — 76,820 Servicing revenue — 76,412 — 76,412 Amortization of MSRs — (47,202) — (47,202) Property operating income 10,973 — — 10,973 Other income, net 2,083 (1,398) — 685 Total other revenue 13,056 177,431 — 190,487 Other expenses: Employee compensation and benefits 19,555 72,571 — 92,126 Selling and administrative 11,765 18,973 — 30,738 Property operating expenses 10,482 — — 10,482 Depreciation and amortization 1,784 5,601 — 7,385 Impairment loss on real estate owned 3,200 — — 3,200 Provision for loss sharing (net of recoveries) — (259) — (259) Provision for loan losses (net of recoveries) (456) — — (456) Management fee-related party 3,259 3,414 — 6,673 Total other expenses 49,589 100,300 — 149,889 Income before extinguishment of debt, loss from equity affiliates and income taxes 25,857 84,693 (3,847) 106,703 Gain on extinguishment of debt 7,116 — — 7,116 Loss from equity affiliates (2,951) — — (2,951) Provision for income taxes (957) (12,402) — (13,359) Net income 29,065 72,291 (3,847) 97,509 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 24,120 24,120 Net income attributable to common stockholders $ 21,511 $ 72,291 $ (27,967) $ 65,835 (1) Includes certain corporate expenses not allocated to the two reportable segments, such as financing costs associated with the Acquisition, as well as income allocated to the noncontrolling interest holders. December 31, 2019 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 264,468 $ 35,219 $ 299,687 Restricted cash 208,926 1,949 210,875 Loans and investments, net 4,189,960 — 4,189,960 Loans held-for-sale, net — 861,360 861,360 Capitalized mortgage servicing rights, net — 286,420 286,420 Securities held-to-maturity, net 20,000 68,699 88,699 Investments in equity affiliates 41,800 — 41,800 Goodwill and other intangible assets 12,500 98,200 110,700 Other assets 118,175 31,484 149,659 Total assets $ 4,855,829 $ 1,383,331 $ 6,239,160 Liabilities: Debt obligations $ 3,878,343 $ 743,595 $ 4,621,938 Allowance for loss-sharing obligations — 34,648 34,648 Other liabilities 171,004 55,543 226,547 Total liabilities $ 4,049,347 $ 833,786 $ 4,883,133 December 31, 2018 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 89,457 $ 70,606 $ 160,063 Restricted cash 180,606 — 180,606 Loans and investments, net 3,200,145 — 3,200,145 Loans held-for-sale, net — 481,664 481,664 Capitalized mortgage servicing rights, net — 273,770 273,770 Securities held- to- maturity, net — 76,363 76,363 Investments in equity affiliates 21,580 — 21,580 Goodwill and other intangible assets 12,500 103,665 116,165 Other assets 81,494 20,325 101,819 Total assets $ 3,585,782 $ 1,026,393 $ 4,612,175 Liabilities: Debt obligations $ 2,842,688 $ 472,181 $ 3,314,869 Allowance for loss-sharing obligations — 34,298 34,298 Other liabilities 159,413 38,029 197,442 Total liabilities $ 3,002,101 $ 544,508 $ 3,546,609 Year Ended December 31, 2019 2018 2017 Origination Data: Structured Business New loan originations $ 2,803,251 $ 1,656,020 $ 1,842,974 Loan payoffs / paydowns 1,748,387 955,575 924,120 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,346,272 $ 3,332,100 $ 2,929,481 Freddie Mac 728,317 1,587,958 1,322,498 FHA 123,095 153,523 189,087 CMBS/Conduit 211,325 50,908 21,370 Private Label 401,216 — — Total $ 4,810,225 $ 5,124,489 $ 4,462,436 Total loan commitment volume $ 4,829,721 $ 5,104,072 $ 4,344,328 Loan Sales Data: Agency Business Fannie Mae $ 3,296,523 $ 3,217,006 $ 3,223,953 Freddie Mac 786,993 1,540,483 1,399,029 FHA 106,271 115,747 170,554 CMBS/Conduit 211,325 50,908 21,370 Total $ 4,401,112 $ 4,924,144 $ 4,814,906 Sales margin (fee-based services as a % of loan sales) 1.49 % 1.42 % 1.51 % MSR rate (MSR income as a % of loan commitments) 1.88 % 1.94 % 1.77 % December 31, 2019 Wtd. Avg. Life of UPB of Servicing Wtd. Avg. Servicing Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio Fee Rate (basis points) (in years) Fannie Mae $ 14,832,844 49.3 Freddie Mac 4,534,714 30.0 FHA 691,519 15.4 Total $ 20,059,077 43.8 December 31, 2018 Fannie Mae $ 13,562,667 51.3 Freddie Mac 4,394,287 30.8 FHA 644,687 15.5 Total $ 18,601,641 45.2 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Data - Unaudited | |
Selected Quarterly Financial Data - Unaudited | Note 22—Selected Quarterly Financial Data-Unaudited Summarized quarterly financial data for 2019 and 2018 is as follows ($ in thousands, except per share data): Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Net interest income $ 33,797 $ 32,445 $ 33,887 $ 29,412 Total other revenue 62,365 62,558 50,072 44,848 Total other expenses 41,670 48,882 45,471 46,287 Income before extinguishment of debt, income from equity affiliates and income taxes 54,492 46,121 38,488 27,973 Loss on extinguishment of debt (7,311) — — (128) Income from equity affiliates 1,502 3,718 3,264 2,151 (Provision for) benefit from income taxes (4,072) (6,623) (4,350) 10 Net income 44,611 43,216 37,402 30,006 Preferred stock dividends 1,888 1,888 1,888 1,888 Net income attributable to noncontrolling interest 7,181 7,363 6,598 5,468 Net income attributable to common stockholders $ 35,542 $ 33,965 $ 28,916 $ 22,650 Basic earnings per common share (1) $ 0.35 $ 0.36 $ 0.32 $ 0.27 Diluted earnings per common share (1) $ 0.34 $ 0.35 $ 0.31 $ 0.26 Three Months Ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Net interest income $ 30,361 $ 27,952 $ 21,411 $ 18,225 Total other revenue 77,464 55,580 46,923 53,162 Total other expenses 50,255 34,739 40,610 43,849 Income before extinguishment of debt, income from equity affiliates and income taxes 57,570 48,793 27,724 27,538 Loss on extinguishment of debt (82) (4,960) — — Income (loss) from equity affiliates 91 (1,028) 1,387 746 (Provision for) benefit from income taxes (8,635) (5,381) (4,499) 8,784 Net income 48,944 37,424 24,612 37,068 Preferred stock dividends 1,888 1,888 1,888 1,888 Net income attributable to noncontrolling interest 9,838 7,799 5,557 8,991 Net income attributable to common stockholders $ 37,218 $ 27,737 $ 17,167 $ 26,189 Basic earnings per common share (1) $ 0.48 $ 0.37 $ 0.26 $ 0.42 Diluted earnings per common share (1) $ 0.47 $ 0.36 $ 0.25 $ 0.42 (1) The sum of the quarterly amounts may not equal amounts reported for year-to-date periods, due to the effects of rounding for each period. |
SCHEDULE IV - LOANS AND OTHER L
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | |
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | Schedule IV—Loans and other Lending Investments DECEMBER 31, 2019 ($ in thousands) Carrying Amount Periodic Interest Pay Subject to Payment Maturity Rate Face Carrying Delinquent Type Location Terms(1) Date(2) Index(3) Prior Liens Amount(4) Amount(5) Interest Bridge Loans: Bridge loans in excess of 3% of carrying amount of total loans: Multifamily Various IO / PI 2020 - 2021 LIBOR + 2.75% - 3.60% $ — $ 417,100 $ 415,703 $ — Floor 1.36% - 2.38% Bridge loans less than 3% of carrying amount of total loans (6): Multifamily Various IO /PI 2020 - 2024 LIBOR + 2.50% - 12.72% — 2,695,857 2,683,189 — Floor 0.43% - 2.75% Fixed 9.00% - 11.00% Healthcare Various IO 2020 - 2022 LIBOR + 4.00% - 11.60% — 203,694 202,756 — Floor 1.12% - 2.63% Land Various IO / PI 2020 LIBOR + 4.00% - 4.50% — 172,657 104,788 — Floor 0.15% - 0.75% Fixed 0.00% - 11.64% Hotel NY IO 2020 - 2022 LIBOR + 2.75% - 7.60% 60,000 142,300 141,574 — Floor 1.50% - 2.38% Office Various IO / PI 2020 LIBOR + 3.10% - 6.19% — 122,127 120,437 — Floor 1.12% - 2.13% Retail Various IO 2020 - 2024 LIBOR + 4.00% - 6.00% — 39,500 39,329 — Floor 2.13% - 2.50% Single-Family Rental Various IO 2020 - 2021 LIBOR + 4.50% - 4.85% — 30,017 29,384 — Floor 2.02% - 2.50% Self Storage MA PI 2020 LIBOR + 3.90% — 13,580 13,550 — Floor 1.23% Total Bridge Loans less than 3% of carrying amount of total loans 60,000 723,875 651,818 — Total Bridge Loans 60,000 3,836,832 3,750,710 — ARBOR REALTY TRUST, INC. AND SUBSIDIARIES SCHEDULE IV—LOANS AND OTHER LENDING INVESTMENTS (Continued) DECEMBER 31, 2019 ($ in thousands) Carrying Amount Periodic Interest Pay Subject to Payment Maturity Rate Face Carrying Delinquent Type Location Terms(1) Date(2) Index(3) Prior Liens Amount(4) Amount(5) Interest Mezzanine Loans: Mezzanine loans less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2020 - 2029 Fixed 5.00% - 12.00% 337,352 109,272 108,819 — Land Various IO 2020 Fixed 0.00% - 13.00% — 48,832 48,767 — Self Storage CA PI 2020 Fixed 11.00% 30,471 12,713 12,687 — Office Various IO 2020 - 2028 LIBOR + 7.44% 60,000 11,000 10,980 — Retail Various IO / PI 2021 - 2024 Fixed 12.00% 30,554 9,758 9,727 — Total Mezzanine Loans 458,377 191,575 190,980 — Preferred Equity Investments: Preferred equity investments less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2022 - 2029 Fixed 4.00% - 14.00% 794,984 178,478 177,399 — Commercial NY IO 2020 Fixed 6.00% 29,792 1,700 — — Office SC IO 2024 Fixed 15.00% 9,739 880 871 — Total Preferred Equity Investments 834,515 181,058 178,270 — Other Loans: Other loans less than 3% of carrying amount of total loans (6): Single-Family Rental Various IO / PI 2024 - 2029 Fixed 4.40% - 5.90% — 41,575 41,428 — Multifamily Various IO 2021 - 2030 Fixed 2.83% - 5.32% — 28,571 28,572 — — 70,146 70,000 — Total Loans $ 1,352,892 $ 4,279,611 $ 4,189,960 $ — (1) IO = Interest Only, PI = Principal and Interest. (2) Maturity date does not include possible extensions. (3) References to LIBOR are to one‑month LIBOR unless specifically stated otherwise. (4) During 2019, $808.1 million of loans were extended. (5) The federal income tax basis is approximately $4.29 billion. (6) Individual loans each have a carrying value less than 3% of total loans. ARBOR REALTY TRUST, INC. AND SUBSIDIARIES SCHEDULE IV–LOANS AND OTHER LENDING INVESTMENTS (Continued) DECEMBER 31, 2019 ($in thousands) The following table reconciles our loans and investments carrying amounts for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 3,200,145 $ 2,579,127 $ 1,695,732 Additions during period: New loan originations 2,831,822 1,658,732 1,842,974 Loan charge-offs — 3,173 20,473 Funding of unfunded loan commitments(1) 65,531 21,027 51,689 Accretion of unearned revenue 12,083 9,278 6,519 Recoveries of reserves — 2,527 2,456 Deductions during period: Loan payoffs and paydowns (1,753,693) (957,163) (929,796) Unfunded loan commitments (1) (147,392) (88,617) (77,233) Use of loan charge-offs — (3,173) (20,473) Provision for loan losses — (13,986) (2,000) Unearned revenue and costs (18,536) (10,780) (11,214) Balance at end of year $ 4,189,960 $ 3,200,145 $ 2,579,127 (1) In accordance with certain loans and investments, we have outstanding unfunded commitments that we are obligated to fund as the borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the retrospective adoption in 2018 of Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows, we reclassified $1.1 million of net proceeds from insurance settlements from net cash provided by operating activities to net cash used in investing activities in the 2017 consolidated cash flow statement. In addition, we adjusted the 2017 consolidated cash flow statement in connection with the retrospective adoption in 2018 of ASU 2016-18, Statement of Cash Flows: Restricted Cash, which requires changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents to be shown in the statement of cash flows. Previous guidance required the change in cash and cash equivalents be shown on the statement of cash flows, with cash used to fund restricted cash and restricted cash equivalents shown as a component of operating, investing, or financing activities. The following table shows the impact of the adoption of ASU 2016-15 and ASU 2016-18: Year Ended (in thousands) December 31, 2017 As previously reported under GAAP applicable at the time Cash and cash equivalents at beginning of period $ 138,645 Net decrease in cash and cash equivalents (34,271) Cash and cash equivalents at end of period 104,374 Net cash provided by (used in) operating activities: changes in operating assets and liabilities 822 Net cash used in investing activities (907,949) Net cash provided by financing activities 412,844 As currently reported under ASU 2016-15 and ASU 2016-18 Cash, cash equivalents and restricted cash at beginning of period $ 167,960 Net increase (decrease) in cash, cash equivalents and restricted cash 75,812 Cash, cash equivalents and restricted cash at end of period 243,772 Net cash provided by (used in) operating activities: changes in operating assets and liabilities (308) Net cash used in investing activities (906,845) Net cash provided by financing activities 522,953 |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. See Note 16 for information about our VIEs. All significant inter-company transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. As future events cannot be determined with precision, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. We place our cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and we believe that this risk is not significant. |
Loans, Investments and Securities | Loans, Investments and Securities. Loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses when such loan or investment is deemed to be impaired. We invest in preferred equity interests that, in some cases, allow us to participate in a percentage of the underlying property’s cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, we determine whether such investment should be accounted for as a loan, equity interest or as real estate. To date, we have determined that all such investments are properly accounted for and reported as loans. At the time of purchase, we designate a debt security as available-for-sale, held-to-maturity, or trading depending on our ability and intent for the security. Securities available-for-sale, which is included as a component of other assets in the consolidated balance sheets, is reported at fair value with the fluctuations in fair value recognized through earnings. Held-to-maturity securities are carried at cost net of any unamortized premiums or discounts, which are amortized or accreted over the life of the securities. For securities classified as held-to-maturity, an evaluation is performed as to whether a decline in fair value below the amortized cost basis is other-than-temporary. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The process includes, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as our ability and intent to hold the investment to maturity. We closely monitor market conditions on which we base such decisions. |
Impaired Loans, Allowance for Loan Losses and Charge-offs | Impaired Loans, Allowance for Loan Losses and Charge-offs. We consider a loan impaired when, based upon current information, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. We evaluate each loan in our portfolio on a quarterly basis. Our loans are individually specific and unique as it relates to product type, geographic location, and collateral type, as well as to the rights and remedies and the position in the capital structure our loans have in relation to the underlying collateral. We evaluate this information at both a loan level and general market trends level when determining the appropriate assumptions such as capitalization and market discount rates, as well as the borrower’s operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We utilize internally developed valuation models and techniques primarily consisting of discounted cash flow and direct capitalization models in determining the fair value of the underlying collateral on an individual loan. We may also obtain a third party appraisal, which may value the collateral through an “as-is” or “stabilized value” methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, an allowance is created with a corresponding charge to the provision for loan losses. The allowance for each loan is maintained at a level that we believe to be adequate to absorb probable losses. Loan terms may be modified if we determine that, based on the individual circumstances of a loan and the underlying collateral, a modification would more likely increase the total recovery of the combined principal and interest from the loan. Any loan modification is predicated upon a goal of maximizing the collection of the loan. Typical triggers for a modification would include situations where the projected cash flow is insufficient to cover required debt service, when asset performance is lagging the initial projections, where there is a requirement for rebalancing, where there is an impending maturity of the loan, and where there is an actual loan default. Loan terms that have been modified have included, but are not limited to, maturity date, interest rate and, in certain cases, principal amount. Length and amounts of each modification have varied based on individual circumstances and are determined on a case by case basis. If the loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. If we receive a benefit, either monetary or strategic, and the above criteria are not met, the modification is not considered to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. Charge-offs to the allowance for loan losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. Loss on restructured loans is recorded when we have granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of income in the period in which the loan was sold. |
Loans Held-for-Sale, Net | Loans Held-for-Sale, Net. Loans held-for-sale, net represents our Agency Business commercial real estate loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as our Private Label loans, which are generally sold and securitized within 180 days of loan origination. Such loans are reported at the lower of cost or market on an aggregate basis and include the value allocated to the associated future MSRs. During the period prior to its sale, interest income on a loan held-for-sale is calculated in accordance with the terms of the individual loan and the loan origination fees and direct loan origination costs are deferred until the loan is sold. All of our held-for-sale loans are financed with matched borrowings from credit facilities contracted to finance such loans. Interest income and expense are earned or incurred after a loan is closed and before a loan is sold. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated, put presumptively beyond the reach of the entity, even in bankruptcy, (2) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and the entity is constrained from pledging or exchanging the assets it receives, each third-party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (3) we or our agents do not maintain effective control over the transferred financial assets or third-party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. We have determined that all loans sold have met these specific conditions and account for all transfers of mortgage loans as completed sales. |
Allowance for Loss-Sharing Obligations | Allowance for Loss-Sharing Obligations. When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. Generally, we are responsible for losses equal to the first 5% of the UPB and a portion of any additional losses to an overall maximum of 20% of the original principal balance. Fannie Mae bears any remaining loss. In addition, under the terms of the master loss-sharing agreement with Fannie Mae, we are responsible for funding 100% of mortgage delinquencies (principal and interest) and servicing advances (taxes, insurance and foreclosure costs) until the amounts advanced exceed 5% of the UPB at the date of default. Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25% of such advances until final settlement. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. In determining the fair value of the guaranty obligation, we consider the risk profile of the collateral and the historical loss experience in our portfolio. The guaranty obligation is removed only upon either the expiration or settlement of the guaranty. We evaluate the allowance for loss-sharing obligations by monitoring the performance of each loss-sharing loan for events or conditions that may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated allowance for loss-sharing (a "specific reserve") by transferring the guarantee obligation recorded on the loan to the specific reserve with any adjustments to this reserve amount recorded in provision for loss sharing in the statements of income. The amount of the allowance considers our assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan's risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the specific reserves and update loss estimates as current information is received. |
Capitalized Mortgage Servicing Rights | Capitalized Mortgage Servicing Rights. We recognize, as separate assets, rights to service mortgage loans for others, including such rights from our origination of mortgage loans sold with the servicing rights retained, as well as rights associated with acquired MSRs. Income from MSRs related to loans we originate are recognized when we record a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value based on the discounted expected net cash flows associated with the servicing of the loan. When a mortgage loan we originate is sold, we retain the right to service the loan and recognize the MSR at the initial capitalized valuation. We amortize our MSRs using the amortization method, which requires the MSRs to be amortized over the period of estimated net servicing income or loss and that the servicing assets or liabilities be assessed for impairment, or increased obligation, based on the fair value at each reporting date. Amortization of MSRs is recorded as a reduction of servicing revenues, net in the consolidated statements of income. The following assumptions were used in calculating the fair value of our MSRs for the periods presented: Key rates: We used discount rates ranging from 8% to 15%, representing a weighted average discount rate of 12%, based on our best estimate of market discount rates to determine the present value of MSRs. The inflation rate used for adequate compensation was 3%. Servicing Cost: A market participant's estimated future cost to service the loan for the estimated life of the MSR is subtracted from the estimated future cash flows. Estimated Life: We estimate the life of our MSRs based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and are reduced using prepayment rates that consider the note rate of the loan and the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MRSs from loans we originate and sell are estimated considering market prices for similar MSRs, when available, and by estimating the present value of the future net cash flows of the capitalized MSRs, net of adequate compensation for servicing. Adequate compensation is based on the market rate of similar servicing contracts. The fair value of MSRs acquired approximate the purchase price paid. We evaluate the MSR portfolio for impairment on a quarterly basis based on the difference between the aggregate carrying amount of the MSRs and their aggregate fair value. We engage an independent third-party valuation expert to assist in determining an estimated fair value of our MSR portfolio on a quarterly basis. For purposes of impairment evaluation, the MSRs are stratified based on predominant risk characteristics of the underlying loans, which we have identified as loan type, note rate and yield maintenance provisions. To the extent that the carrying value of the MSRs exceeds fair value, a valuation allowance is established. We record write-offs of MSRs related to loans that were repaid prior to their expected maturity and loans that have defaulted and determined to be unrecoverable. When this occurs, the write-off is recorded as a direct write-down to the carrying value of MSRs and is included as a component of servicing revenue, net in the consolidated statements of income. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries. For loans that payoff prior to maturity, we may collect a prepayment fee which is included as a component of servicing revenue, net. |
Real Estate Owned and Held-For-Sale | Real Estate Owned and Held-For-Sale. Real estate acquired is recorded at its estimated fair value at acquisition and is shown net of accumulated depreciation and impairment charges. Costs incurred in connection with the acquisition of a property are expensed as incurred. We allocate the purchase price of our real estate acquisitions to land, building, tenant improvements, origination asset of the in-place leases, intangibles for the value of any above or below market leases at fair value and to any other identified intangible assets or liabilities. We amortize the value allocated to in-place leases over the remaining lease term, which is reported in depreciation and amortization expense on our consolidated statements of income. The value allocated to above or below market leases are amortized over the remaining lease term as an adjustment to rental income. Real estate assets are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. Our properties are reviewed for impairment each quarter, if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. We recognize impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset’s estimated fair value. In evaluating for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business. Impairment charges may be necessary in the event discount rates, capitalization rates, lease-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. Real estate is classified as held-for-sale when we commit to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Real estate assets that are expected to be disposed of are valued at the lower of the asset’s carrying amount or its fair value less costs to sell. We recognize sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. Gain on real estate sold is recognized when the collectability of the sale price is reasonably assured, we are not obligated to perform significant activities after the sale and when control of the asset transfers to the buyer. A gain may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. |
Investments in Equity Affiliates | Investments in Equity Affiliates . We invest in joint ventures that are formed to invest in real estate related assets or businesses. These joint ventures are not majority owned or controlled by us, or are VIEs for which we are the primary beneficiary, and are not consolidated in our financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. We recognize an impairment loss if the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other-than-temporary. We record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Significant judgement is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. For intangible assets related to acquired technology, we use the replacement cost method to determine fair value. Determining the estimated useful lives of intangible assets also requires judgment. Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as broker and borrower relationships, above/below market rent and acquired technology have been deemed to have finite lives. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired product lines, scarcity of available GSE licenses, technology life cycles, retention trends and our operating plans, among other factors. Goodwill and indefinite-lived intangible assets are not amortized, while finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis. Indefinite-lived intangible assets, including goodwill, are tested for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. In addition, with respect to goodwill, an impairment analysis is performed at least annually. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step goodwill impairment test is performed. Based on the impairment analysis performed as of October 1, 2019, there was no indication that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2019. |
Hedging Activities and Derivatives | Hedging Activities and Derivatives . We measure derivative instruments at fair value and record them as assets or liabilities. Fair value adjustments will affect either accumulated other comprehensive income until the hedged item is recognized in earnings, or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use derivatives for hedging purposes rather than trading or speculation. Fair values are estimated based on current market data from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. These derivative instruments must be effective in reducing risk exposure in order to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in earnings. In cases where a derivative instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. We may also enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. The ineffective portion of a derivative’s change in fair value is recognized immediately in earnings. In connection with our interest rate risk management, we may hedge a portion of our interest rate risk by entering into derivative instrument contracts to manage differences in the amount, timing, and duration of our expected cash receipts and our expected cash payments principally related to our investments and borrowings. Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we have used, and may again in the future, use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our rate lock and forward sales commitments associated with the Agency Business meet the definition of a derivative and are recorded at fair value. The estimated fair value of rate lock commitments includes the effects of interest rate movements as well as the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Adjustments to the fair value are reflected as a component of other income, net in the consolidated statements of income. Our Swap Futures associated with (1) our Structured Business SFR loans, and (2) our held-for-sale Agency Business Private Label loans do not meet the criteria for hedge accounting and are tied to the five-year and ten-year swap rates. Our Swap Futures are cleared by a central clearing house and variation margin payments (made in cash) are treated as a legal settlement of the derivative itself, as opposed to a pledge of collateral. Realized and unrealized gains and losses related to our Swap Futures are recorded through earnings. |
Revenue Recognition | Revenue Recognition. Interest income is recognized on the accrual basis as it is earned. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or “interest” method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in our opinion, a full recovery of all contractual principal is not probable. Income recognition is resumed when the loan becomes contractually current and performance is resumed. We record interest income on certain impaired loans to the extent cash is received, as the borrower continues to make interest payments. We record loan loss reserves related to these loans when it is deemed that full recovery of principal and accrued interest is not probable. Several of our loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to our determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If we cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. We will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves. We do not recognize interest income on loans in which the borrower has failed to make the contractual interest payment due or has not replenished the interest reserve account. Income from non-performing loans is generally recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. Additionally, interest income is recorded when earned from equity participation interests, referred to as equity kickers. These equity kickers have the potential to generate additional revenues to us as a result of excess cash flow distributions and/or as appreciated properties are sold or refinanced. Gain on sales, including fee-based services, net -Gain on sales, including fee-based services, net includes commitment fees, broker fees, loan assumption fees, loan origination fees and gains on sale of loans of our Agency Business. In some instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, net of any direct loan origination costs incurred, which is recognized upon the sale of the loan. Revenue recognition occurs when the related services are performed, unless significant contingencies exist, and for the sale of loans, when all the incidence of ownership passes to the buyer. Interest income is recognized on the accrual basis as it is earned from loans held-for-sale. Property operating income -Property operating income represents income associated with the operations of commercial real estate properties classified as real estate owned. We recognize revenue for these activities when the fees are fixed or determinable, or are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. Other income, net —Other income, net represents loan structuring, modification and defeasance, as well as broker fees, miscellaneous asset management fees associated with our loan and investment portfolio, and changes in the fair value of certain derivatives. We recognize these forms of income when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. |
Leases | Leases. We determine if an arrangement is a lease at inception. Our right to use an underlying asset for the lease term is recorded as operating lease right-of-use ("ROU") assets and our obligation to make lease payments arising from the lease are recorded as lease liabilities. The operating lease ROU assets and lease liabilities are included in other assets and other liabilities, respectively, in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. At the adoption date, we made an accounting policy election to exclude leases with an initial term of twelve months or less. |
Stock-Based Compensation | Stock-Based Compensation. We grant stock awards to certain of our employees and directors, consisting of shares of our common stock that vest immediately or annually over a multi-year period, subject to the recipient’s continued service to us. We record stock-based compensation expense at the grant date fair value of the related stock-based award at the grant date (for the portion that vests immediately) or ratably over the respective vesting periods. Dividends are paid on restricted stock as dividends are paid on shares of our common stock whether or not they are vested. Stock-based compensation is disclosed in our consolidated statements of income under “employee compensation and benefits” for employees and under “selling and administrative” expense for non-employees and the Board of Directors. |
Income Taxes | Income Taxes. We organize and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto. A REIT is generally not subject to federal income tax on its REIT-taxable income that it distributes to its stockholders, provided that it distributes at least 90% of its REIT-taxable income and meets certain other requirements. Certain REIT income may be subject to state and local income taxes. The Agency Business mainly operates through a TRS, which is a part of our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. Current and deferred taxes are recorded on the portion of earnings (losses) recognized by us with respect to our interest in TRSs. Deferred income tax assets and liabilities are calculated based on temporary differences between our GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. We evaluate the realizability of our deferred tax assets (e.g., net operating loss and capital loss carryforwards) and recognize a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of our deferred tax assets will not be realized. When evaluating the realizability of our deferred tax assets, we consider estimates of expected future taxable income, existing and projected book/tax differences, tax planning strategies available and the general and industry specific economic outlook. We periodically evaluate tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. We report interest and penalties related to tax uncertainties as a component of the income tax provision. |
Earnings Per Share | Earnings Per Share. We present both basic and diluted earnings per share ("EPS"). Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements ASU 2016-02, Leases (Topic 842) requires lessees to record most leases on their balance sheet through operating and finance lease liabilities and corresponding ROU assets, as well as adding additional footnote disclosures of key information about those arrangements. ASU 2018-11, Leases (Topic 842)-Targeted Improvements provides transition relief on comparative period reporting through a cumulative-effect adjustment at the beginning of the period of adoption ("Effective Date Method"). First quarter of 2019 We adopted this guidance using the Effective Date Method and elected the group of optional practical expedients, therefore, comparative reporting periods have not been adjusted and are reported under the previous accounting guidance. Upon adoption, we recorded an operating lease ROU asset and corresponding lease liability of $20.1 million, which are included as other assets and other liabilities in our consolidated balance sheets. We also added the required footnote disclosures in Note 15. ASU 2018-07, Compensation—Stock Compensation expands the scope of ASC Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. First quarter of 2019 The adoption of this guidance did not have a material impact on our consolidated financial statements. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities better aligns risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset. First quarter of 2019 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses. First quarter of 2020 with early adoption permitted We expect the adoption of this guidance on January 1, 2020 to increase our allowance for loan losses by $27 million to $37 million related to our Structured Business loan and investment portfolio, our Agency Business loss-sharing obligations under the Fannie Mae DUS program and our held-to-maturity debt securities within both businesses. We will record the cumulative effect of initially applying this guidance as an adjustment to our Accumulated Deficit using the modified retrospective method of adoption. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. First quarter of 2021 with early adoption permitted We do not expect the adoption of this guidance to have a significant impact on consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation and Significant Accounting Policies | |
Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements ASU 2016-02, Leases (Topic 842) requires lessees to record most leases on their balance sheet through operating and finance lease liabilities and corresponding ROU assets, as well as adding additional footnote disclosures of key information about those arrangements. ASU 2018-11, Leases (Topic 842)-Targeted Improvements provides transition relief on comparative period reporting through a cumulative-effect adjustment at the beginning of the period of adoption ("Effective Date Method"). First quarter of 2019 We adopted this guidance using the Effective Date Method and elected the group of optional practical expedients, therefore, comparative reporting periods have not been adjusted and are reported under the previous accounting guidance. Upon adoption, we recorded an operating lease ROU asset and corresponding lease liability of $20.1 million, which are included as other assets and other liabilities in our consolidated balance sheets. We also added the required footnote disclosures in Note 15. ASU 2018-07, Compensation—Stock Compensation expands the scope of ASC Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. First quarter of 2019 The adoption of this guidance did not have a material impact on our consolidated financial statements. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities better aligns risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset. First quarter of 2019 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses. First quarter of 2020 with early adoption permitted We expect the adoption of this guidance on January 1, 2020 to increase our allowance for loan losses by $27 million to $37 million related to our Structured Business loan and investment portfolio, our Agency Business loss-sharing obligations under the Fannie Mae DUS program and our held-to-maturity debt securities within both businesses. We will record the cumulative effect of initially applying this guidance as an adjustment to our Accumulated Deficit using the modified retrospective method of adoption. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. First quarter of 2021 with early adoption permitted We do not expect the adoption of this guidance to have a significant impact on consolidated financial statements. |
Schedule of Cash flows before and after adoption of ASU 2016-18 and ASU 2016-15 | Year Ended (in thousands) December 31, 2017 As previously reported under GAAP applicable at the time Cash and cash equivalents at beginning of period $ 138,645 Net decrease in cash and cash equivalents (34,271) Cash and cash equivalents at end of period 104,374 Net cash provided by (used in) operating activities: changes in operating assets and liabilities 822 Net cash used in investing activities (907,949) Net cash provided by financing activities 412,844 As currently reported under ASU 2016-15 and ASU 2016-18 Cash, cash equivalents and restricted cash at beginning of period $ 167,960 Net increase (decrease) in cash, cash equivalents and restricted cash 75,812 Cash, cash equivalents and restricted cash at end of period 243,772 Net cash provided by (used in) operating activities: changes in operating assets and liabilities (308) Net cash used in investing activities (906,845) Net cash provided by financing activities 522,953 |
Loans and Investments (Tables)
Loans and Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Investments | |
Schedule of composition of company's structured business loan and investment portfolio | The composition of our Structured Business loan and investment portfolio is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. Wtd. Avg. First Last Remaining Dollar Dollar December 31, Percent of Loan Wtd. Avg. Months to LTV LTV 2019 Total Count Pay Rate (1) Maturity Ratio (2) Ratio (3) Bridge loans (4) $ 3,836,832 90 % 217 5.77 % 18.0 0 % 75 % Mezzanine loans 191,575 4 % 24 9.70 % 36.7 22 % 73 % Preferred equity investments 181,058 4 % 10 7.62 % 68.8 69 % 89 % Other (5) 70,146 2 % 21 2.88 % 84.8 0 % 70 % 4,279,611 100 % 272 5.98 % 22.1 4 % 76 % Allowance for loan losses (71,069) Unearned revenue (18,582) Loans and investments, net $ 4,189,960 Wtd. Avg. Wtd. Avg. Wtd. Avg. First Last Remaining Dollar Dollar December 31, Percent of Loan Wtd. Avg. Months to LTV LTV 2018 Total Count Pay Rate (1) Maturity Ratio (2) Ratio (3) Bridge loans $ 2,992,814 91 % 167 6.84 % 18.5 0 % 74 % Mezzanine loans 108,867 3 % 13 10.57 % 22.1 28 % 72 % Preferred equity investments 181,661 6 % 10 7.97 % 78.0 66 % 89 % 3,283,342 100 % 190 7.02 % 22.0 5 % 75 % Allowance for loan losses (71,069) Unearned revenue (12,128) Loans and investments, net $ 3,200,145 (1) (2) (3) (4) (5) |
Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class | A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands): December 31, 2019 Wtd. Avg. Wtd. Avg. Wtd. Avg. Percentage Internal First Dollar Last Dollar Asset Class UPB of Portfolio Risk Rating LTV Ratio LTV Ratio Multifamily $ 3,429,278 80 % pass/watch 4 % 76 % Land 221,489 5 % special mention 0 % 87 % Healthcare 203,694 5 % pass/watch 0 % 76 % Hotel 142,300 3 % pass/watch 10 % 60 % Office 134,007 3 % special mention 3 % 67 % Single-Family Rental 71,592 2 % pass 0 % 71 % Retail 49,258 1 % special mention 6 % 62 % Self Storage 26,293 1 % pass/watch 24 % 53 % Other 1,700 <1 % doubtful 63 % 63 % Total $ 4,279,611 100 % pass/watch 4 % 76 % December 31, 2018 Multifamily $ 2,427,920 74 % pass/watch 5 % 75 % Land 151,628 5 % substandard 0 % 90 % Healthcare 122,775 4 % pass/watch 0 % 77 % Hotel 100,075 3 % pass/watch 13 % 66 % Office 132,047 4 % special mention 3 % 68 % Retail 45,367 1 % pass/watch 6 % 65 % Self Storage 301,830 9 % pass/watch 0 % 72 % Other 1,700 <1 % doubtful 63 % 63 % Total $ 3,283,342 100 % pass/watch 5 % 75 % |
Summary of the changes in the allowance for loan losses | A summary of the changes in the allowance for loan losses is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Allowance at beginning of period $ 71,069 $ 62,783 $ 83,712 Provision for loan losses — 13,986 2,000 Charge-offs — (3,173) (20,473) Recoveries of reserves — (2,527) (2,456) Allowance at end of period $ 71,069 $ 71,069 $ 62,783 |
Summary of the company's impaired loans by asset class | A summary of our impaired loans by asset class is as follows (in thousands): Year Ended December 31, December 31, 2019 2019 Average Interest Carrying Allowance for Recorded Income Asset Class UPB Value (1) Loan Losses Investment (2) Recognized Land $ 134,215 $ 126,800 $ 67,869 $ 134,215 $ 107 Office 2,226 2,226 1,500 2,246 132 Commercial 1,700 1,700 1,700 1,700 — Total $ 138,141 $ 130,726 $ 71,069 $ 138,161 $ 239 Year Ended December 31, December 31, 2018 2018 Land $ 134,215 $ 127,869 $ 67,869 $ 132,651 $ 103 Hotel — — — 17,375 — Office 2,266 2,266 1,500 2,277 127 Commercial 1,700 1,700 1,700 1,700 — Total $ 138,181 $ 131,835 $ 71,069 $ 154,003 $ 230 (1) Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both December 31, 2019 and 2018. (2) Represents an average of the beginning and ending UPB of each asset class. |
Summary of the company's non-performing loans by asset class | A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2019 December 31, 2018 Less Than Greater Than Less Than Greater Than Carrying 90 Days 90 Days Carrying 90 Days 90 Days Asset Class Value Past Due Past Due Value Past Due Past Due Commercial $ 1,700 $ — $ 1,700 $ 1,700 $ — $ 1,700 Retail 990 — 990 — — — Office 833 — 833 832 — 832 Total $ 3,523 $ — $ 3,523 $ 2,532 $ — $ 2,532 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans Held-for-Sale, Net | |
Summary of loans held-for-sale, net | Loans held-for-sale, net consists of the following (in thousands): December 31, 2019 December 31, 2018 Fannie Mae $ 408,534 $ 358,790 Private Label 401,207 — Freddie Mac 36,303 95,004 FHA 1,082 19,170 847,126 472,964 Fair value of future MSR 16,519 10,253 Unearned discount (2,285) (1,553) Loans held-for-sale, net $ 861,360 $ 481,664 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) - MSRs | 12 Months Ended |
Dec. 31, 2019 | |
Capitalized Mortgage Servicing Rights | |
Summary of capitalized MSR activity | A summary of our capitalized MSR activity is as follows (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Acquired Originated Total Acquired Originated Total Balance at beginning of period $ 97,084 $ 176,686 $ 273,770 $ 143,270 $ 109,338 $ 252,608 Additions — 83,756 83,756 — 94,344 94,344 Amortization (21,042) (27,639) (48,681) (28,958) (19,166) (48,124) Write-downs and payoffs (11,523) (10,902) (22,425) (17,228) (7,830) (25,058) Balance at end of period $ 64,519 $ 221,901 $ 286,420 $ 97,084 $ 176,686 $ 273,770 |
Schedule of expected amortization of capitalized MSRs recorded | The expected amortization of capitalized MSRs recorded as of December 31, 2019 is as follows (in thousands): Year Amortization 2020 $ 46,307 2021 42,538 2022 37,596 2023 33,203 2024 28,981 Thereafter 97,795 Total $ 286,420 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
MSRs | |
Mortgage Servicing | |
Schedule of product and geographic concentrations in servicing revenue | Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2019 Product Concentrations Geographic Concentrations Percent of UPB Percent Product UPB (1) Total State of Total Fannie Mae $ 14,832,844 74 % Texas 19 % Freddie Mac 4,534,714 23 % North Carolina 9 % FHA 691,519 3 % New York 9 % Total $ 20,059,077 100 % California 9 % Florida 6 % Georgia 6 % Other(2) 42 % Total 100 % December 31, 2018 Product Concentrations Geographic Concentrations Percent of UPB Percent Product UPB (1) Total State of Total Fannie Mae $ 13,562,667 73 % Texas 20 % Freddie Mac 4,394,287 24 % North Carolina 10 % FHA 644,687 3 % New York 8 % Total $ 18,601,641 100 % California 8 % Georgia 6 % Florida 6 % Other(2) 42 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) No other individual state represented 4% or more of the total. |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities Held-to-Maturity | |
Summary of securities held-to-maturity | A summary of our securities held-to-maturity is as follows (in thousands): Carrying Unrealized Estimated Period Face Value Value Gain Fair Value December 31, 2019 $ 111,028 $ 88,699 $ 3,039 $ 91,738 December 31, 2018 $ 103,515 $ 76,363 $ 2,734 $ 79,097 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Equity Affiliates | |
Summary of the company's investments in equity affiliates | A summary of our investments in equity affiliates is as follows (in thousands): Investments in Equity Affiliates at UPB of Loans to December 31, December 31, Equity Affiliates at Equity Affiliates 2019 2018 December 31, 2019 Arbor Residential Investor LLC $ 26,520 $ 19,260 $ — AMAC Holdings III LLC 10,520 — 15,600 North Vermont Avenue 2,440 — — Lightstone Value Plus REIT L.P 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,688 Lexford Portfolio — — 30,470 East River Portfolio — — — Total $ 41,800 $ 21,580 $ 47,758 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned | |
Schedule of real estate owned | December 31, 2019 December 31, 2018 Hotel Office Hotel Office (in thousands) Property Building Total Property Building Total Land $ 3,294 $ 4,509 $ 7,803 $ 3,294 $ 4,509 $ 7,803 Building and intangible assets 31,541 2,010 33,551 31,066 2,010 33,076 Less: Impairment loss (14,307) (2,500) (16,807) (13,307) (2,500) (15,807) Less: Accumulated depreciation and amortization (10,320) (1,007) (11,327) (9,778) (848) (10,626) Real estate owned, net $ 10,208 $ 3,012 $ 13,220 $ 11,275 $ 3,171 $ 14,446 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) - Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets | |
Schedule of other intangible assets | The following table sets forth the other intangible assets activity (in thousands): December 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Value Amortization Total Value Amortization Total Finite-lived intangible assets: Broker relationships $ 25,000 $ (10,807) $ 14,193 $ 25,000 $ (7,683) $ 17,317 Borrower relationships 14,400 (4,980) 9,420 14,400 (3,540) 10,860 Below market leases 4,010 (2,548) 1,462 4,010 (1,811) 2,199 Acquired technology 900 (900) — 900 (737) 163 Infinite-lived intangible assets: Fannie Mae DUS license 17,100 — 17,100 17,100 — 17,100 Freddie Mac Program Plus license 8,700 — 8,700 8,700 — 8,700 FHA license 3,200 — 3,200 3,200 — 3,200 $ 73,310 $ (19,235) $ 54,075 $ 73,310 $ (13,771) $ 59,539 |
Schedule of estimated amortization expense for each of the succeeding five years | At December 31, 2019, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated amortization expense for each of the succeeding five years are as follows ($ in thousands): Wtd. Avg. Estimated Amortization Expense for the Remaining Life Years Ending December 31, (in years) 2020 2021 2022 2023 2024 Finite-lived intangible assets: Broker relationships $ 3,125 $ 3,125 $ 3,125 $ 3,125 $ 1,693 Borrower relationships 1,440 1,440 1,440 1,440 1,440 Below market leases 684 126 126 126 126 $ 5,249 $ 4,691 $ 4,691 $ 4,691 $ 3,259 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Obligations | |
Schedule of face amount and gain on extinguishment of the company's CDO bonds repurchased by bond class | Borrowings and the corresponding collateral under our Debt Fund are as follows ($ in thousands): Collateral (3) Debt Loans Cash Face Carrying Wtd. Avg. Carrying Restricted Period Value Value (1) Rate (2) UPB Value Cash (4) December 31, 2019 $ 70,000 $ 68,629 5.99 % $ 70,755 $ 68,629 $ 29,245 December 31, 2018 $ 70,000 $ 68,183 6.75 % $ 69,186 $ 68,924 $ 30,814 (1) Debt carrying value is net of $1.4 million and $1.8 million of deferred financing fees at December 31, 2019 and 2018, respectively. (2) At December 31, 2019 and 2018, the aggregate weighted average note rate, including certain fees and costs, was 7.17% and 7.49%, respectively. (3) At both December 31, 2019 and 2018, there was no collateral at risk of default or deemed to be a “credit risk.” (4) Represents restricted cash held for reinvestment. Excludes restricted cash related to interest payments, delayed fundings and expenses. |
Schedule of face value, unamortized discount and net carrying value of the liability and equity components | The UPB, unamortized discount and net carrying amount of the liability and equity components of our convertible notes are as follows (in thousands): Liability Equity Component Component Unamortized Unamortized Deferred Net Carrying Net Carrying Period UPB Debt Discount Financing Fees Value Value December 31, 2019 $ 300,914 $ 9,235 $ 7,527 $ 284,152 $ 9,962 December 31, 2018 $ 270,057 $ 8,229 $ 7,060 $ 254,768 $ 9,436 |
Credit Facilities and Repurchase Agreements | |
Debt Obligations | |
Schedule of borrowings | Borrowings under our credit facilities and repurchase agreements are as follows ($ in thousands): December 31, 2019 December 31, 2018 Debt Collateral Debt Collateral Carrying Carrying Wtd. Avg. Carrying Carrying Wtd. Avg. UPB Value (1) Value Note Rate UPB Value (1) Value Note Rate Structured Business $400 million joint repurchase facility $ 225,051 $ 224,658 $ 339,378 4.06 % $ 336,428 $ 334,696 $ 467,680 4.75 % $300 million repurchase facility 218,891 218,418 291,292 3.76 % — — — — $200 million repurchase facility 40,612 40,530 48,086 4.22 % — — — — $128.7 million loan specific credit facilities 128,677 128,274 184,116 4.13 % 85,044 84,701 124,844 4.93 % $100 million repurchase facility 45,962 45,843 63,800 3.56 % 71,017 70,837 98,597 4.31 % $75 million credit facility 4,690 4,570 7,000 3.56 % 10,237 10,237 16,889 4.31 % $75 million credit facility — — — — — — — — $50 million credit facility 14,948 14,933 17,650 3.81 % 14,160 14,159 17,700 4.57 % $50 million credit facility 12,349 12,191 16,499 4.32 % — — — — $50 million credit facility 5,280 5,254 6,600 4.32 % — — — — $25 million credit facility 19,936 19,651 28,572 4.07 % — — — — $25 million working capital facility — — — — — — — — $20 million credit facility — — — — 20,000 19,912 41,650 5.07 % $8 million credit facility — — — — 8,000 7,946 10,000 5.07 % $3.3 million master security agreements 3,267 3,267 — 4.08 % 2,846 2,846 — 4.06 % Repurchase facilities-securities (2) 217,105 217,105 — 3.90 % 118,112 118,112 — 5.07 % Structured Business total $ 936,768 $ 934,694 $ 1,002,993 3.94 % $ 665,844 $ 663,446 $ 777,360 4.78 % Agency Business $750 million ASAP agreement $ 148,725 $ 148,725 $ 148,725 2.81 % $ 104,619 $ 104,619 $ 104,619 3.55 % $500 million repurchase facility 187,742 187,698 187,742 2.91 % 130,917 130,906 130,917 3.78 % $300 million joint repurchase facility 300,446 299,824 300,446 3.26 % — — — — $250 million credit facility — — — — 26,651 26,651 26,651 3.75 % $150 million credit facility 89,673 89,657 89,673 2.91 % 113,685 113,666 113,685 3.80 % $150 million credit facility 17,792 17,690 17,792 2.91 % 96,419 96,339 96,419 3.80 % Agency Business total $ 744,378 $ 743,594 $ 744,378 3.03 % $ 472,291 $ 472,181 $ 472,291 3.74 % Consolidated total $ 1,681,146 $ 1,678,288 $ 1,747,371 3.54 % $ 1,138,135 $ 1,135,627 $ 1,249,651 4.35 % (1) The debt carrying value for the Structured Business at December 31, 2019 and 2018 was net of unamortized deferred finance costs of $2.1 million and $2.4 million, respectively. The debt carrying value for the Agency Business at December 31, 2019 and 2018 was net of unamortized deferred finance costs of $0.2 million and $0.1 million, respectively. (2) |
CLOs | |
Debt Obligations | |
Schedule of borrowings | Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Collateral (3) Debt Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2019 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO XII $ 534,193 $ 529,448 3.30 % $ 596,366 $ 593,652 $ 17,800 CLO XI 533,000 528,690 3.25 % 624,443 621,508 15,550 CLO X 441,000 437,391 3.26 % 509,887 507,854 37,287 CLO IX 356,400 353,473 3.17 % 407,696 406,463 47,230 CLO VIII 282,874 281,119 3.12 % 359,186 357,914 544 Total CLOs $ 2,147,467 $ 2,130,121 3.23 % $ 2,497,578 $ 2,487,391 $ 118,411 Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2018 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO X $ 441,000 $ 436,384 4.01 % $ 539,007 $ 536,869 $ 20,993 CLO IX 356,400 352,244 3.92 % 440,906 439,691 20,094 CLO VIII 282,874 279,857 3.87 % 354,713 353,574 10,287 CLO VII 279,000 276,527 4.56 % 325,057 324,195 30,725 CLO VI 250,250 248,536 5.05 % 279,348 278,364 41,404 Total CLOs $ 1,609,524 $ 1,593,548 4.22 % $ 1,939,031 $ 1,932,693 $ 123,503 (1) Debt carrying value is net of $17.3 million and $16.0 million of deferred financing fees at December 31, 2019 and 2018, respectively. (2) At December 31, 2019 and 2018, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.63% and 4.73%, respectively. (3) As of December 31, 2019 and 2018, there was no collateral at risk of default or deemed to be a “credit risk” as defined by the CLO indenture. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $58.6 million and $25.1 million at December 31, 2019 and 2018, respectively. |
Summary of the company's CLO compliance tests as of the most recent determination dates | Cash Flow Triggers CLO VIII CLO IX CLO X CLO XI CLO XII Overcollateralization (1) Current 129.03 % 134.68 % 126.98 % 121.95 % 118.87 % Limit 128.03 % 133.68 % 125.98 % 120.95 % 117.87 % Pass / Fail Pass Pass Pass Pass Pass Interest Coverage (2) Current 285.83 % 250.76 % 250.52 % 229.31 % 187.58 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass Pass Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. |
Summary of the Company's CLO overcollateralization ratios | Determination (1) CLO VIII CLO IX CLO X CLO XI CLO XII January 2020 129.03 % 134.68 % 126.98 % 121.95 % 118.87 % October 2019 129.03 % 134.68 % 126.98 % 121.95 % — July 2019 129.03 % 134.68 % 126.98 % 121.95 % — April 2019 129.03 % 134.69 % 126.98 % — — January 2019 129.03 % 134.68 % 126.98 % — — (1) The table above represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented. |
Allowance for Loss-Sharing Ob_2
Allowance for Loss-Sharing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loss-Sharing Obligations | |
Schedule of allowance for loss-sharing obligations related to Fannie Mae DUS program | Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ 34,298 $ 30,511 Provision for loss sharing 4,879 7,126 Provision reversal for loan repayments (3,732) (3,283) Charge-offs, net (797) (56) Ending balance $ 34,648 $ 34,298 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Agency Business | |
Schedule of non-qualifying derivative financial instruments | A summary of our non-qualifying derivative financial instruments is as follows ($in thousands): December 31, 2019 Notional Value Fair Value Notional Derivative Derivative Derivative Count Value Balance Sheet Location Assets Liabilities Agency Business Rate Lock Commitments 5 $ 37,657 Other Assets/Other Liabilities $ 1,066 $ (202) Forward Sale Commitments 79 483,576 Other Assets/Other Liabilities 369 (2,895) Swap Futures 3,274 327,400 — — $ 848,633 $ 1,435 $ (3,097) Structures Business Swap Futures 271 $ 27,100 Other Assets/Other Liabilities $ — $ — December 31, 2018 Agency Business Rate Lock Commitments 4 $ 18,161 Other Assets/Other Liabilities $ 324 $ (95) Forward Sale Commitments 90 491,125 Other Assets/Other Liabilities 5,789 (637) $ 509,286 $ 6,113 $ (732) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value. | |
Summary of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands): December 31, 2019 December 31, 2018 Principal / Principal / Notional Carrying Estimated Notional Carrying Estimated Amount Value Fair Value Amount Value Fair Value Financial assets: Loans and investments, net $ 4,279,611 $ 4,189,960 $ 4,228,071 $ 3,283,342 $ 3,200,145 $ 3,249,499 Loans held-for-sale, net 847,126 861,360 876,975 472,964 481,664 489,546 Capitalized mortgage servicing rights, net n/a 286,420 328,995 n/a 273,770 322,463 Securities held-to-maturity, net 111,028 88,699 91,738 103,515 76,363 79,097 Derivative financial instruments 173,532 1,435 1,435 400,661 6,113 6,113 Financial liabilities: Credit and repurchase facilities $ 1,681,146 $ 1,678,288 $ 1,677,658 $ 1,138,135 $ 1,135,627 $ 1,135,774 Collateralized loan obligations 2,147,467 2,130,121 2,147,944 1,609,524 1,593,548 1,588,989 Debt fund 70,000 68,629 70,138 70,000 68,183 70,154 Senior unsecured notes 325,000 319,799 331,225 125,000 122,484 123,750 Convertible senior unsecured notes, net 300,914 284,152 310,778 270,057 254,768 267,324 Junior subordinated notes 154,336 140,949 97,668 154,336 140,259 95,873 Derivative financial instruments 347,701 3,097 3,097 108,625 732 732 |
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis | The fair values of these financial assets and liabilities were determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 1,435 $ 1,435 $ — $ 369 $ 1,066 Financial liabilities: Derivative financial instruments $ 3,097 $ 3,097 $ — $ 3,097 $ — |
Schedule of certain financial assets and financial liabilities measured at fair value on a nonrecurring basis | We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Net Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 59,657 $ 59,657 $ — $ — $ 59,657 Non-financial assets: Long-lived assets (2) $ 13,220 $ 13,220 $ — $ — $ 13,220 (1) We had an allowance for loan losses of $71.1 million relating to five loans with an aggregate carrying value, before loan loss reserves, of $130.7 million at December 31, 2019. (2) We recorded a $1.0 million impairment loss during 2019 on the hotel property we own. See Note 9 for details. |
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at December 31, 2019 is as follows ($ in thousands): Valuation Significant Fair Value Techniques Unobservable Inputs Financial assets: Impaired loans: Land $ 58,931 Discounted cash flows Discount rate 23.00 % Revenue growth rate 3.00 % Office 726 Discounted cash flows Discount rate 11.00 % Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 1,066 Discounted cash flows W/A discount rate 13.59 % Long-lived assets: Hotel proerty 10,208 Broker quotes N/A N/A |
Schedule of financial assets measured at fair value on a recurring basis using Level 3 inputs | A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs for the Year Ended December 31, 2019 2018 2017 Derivative assets Balance at beginning of period $ 324 $ 276 $ 2,816 Settlements (83,992) (98,791) (79,360) Realized gains recorded in earnings 83,668 98,515 76,544 Unrealized gains recorded in earnings 1,066 324 276 Balance at end of period $ 1,066 $ 324 $ 276 |
Schedule of components of fair value and other relevant information | The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands): Notional/ Fair Value of Interest Rate Total Fair Principal Amount Servicing Rights Movement Effect Value Adjustment December 31, 2019 Rate lock commitments $ 37,657 $ 1,066 $ (202) $ 864 Forward sale commitments 483,576 — 202 202 Loans held-for-sale, net (1) 847,126 16,519 — 16,519 Total $ 17,585 $ — $ 17,585 (1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. |
Schedule of fair value of assets and liabilities | The fair values of these assets and liabilities are determined using the following input levels as of December 31, 2019 (in thousands): Fair Value Measurements Carrying Using Fair Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 4,189,960 $ 4,228,071 $ — $ — $ 4,228,071 Loans held-for-sale, net 861,360 876,975 — 860,456 16,519 Capitalized mortgage servicing rights, net 286,420 328,995 — — 328,995 Securities held-to-maturity, net 88,699 91,738 — — 91,738 Financial liabilities: Credit and repurchase facilities $ 1,678,288 $ 1,677,658 $ — $ 743,594 $ 934,064 Collateralized loan obligations 2,130,121 2,147,944 — — 2,147,944 Debt fund 68,629 70,138 — — 70,138 Senior unsecured notes 319,799 331,225 331,225 — — Convertible senior unsecured notes, net 284,152 310,778 — 310,778 — Junior subordinated notes 140,949 97,668 — — 97,668 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of maturities of debt obligations and operating lease payments | As of December 31, 2019, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands): Minimum Annual Debt Operating Lease Year Obligations Payments Total 2020 $ 1,629,115 $ 5,301 $ 1,634,416 2021 495,601 3,044 498,645 2022 1,479,600 2,775 1,482,375 2023 496,049 2,052 498,101 2024 215,154 1,459 216,613 Thereafter 363,344 3,304 366,648 Total $ 4,678,863 $ 17,935 $ 4,696,798 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Schedule of the assets and liabilities related to the consolidated CLOs and Debt Fund | The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands): December 31, 2019 December 31, 2018 Assets: Restricted cash $ 208,467 $ 179,855 Loans and investments, net 2,557,909 2,001,617 Other assets 18,380 16,624 Total assets $ 2,784,756 $ 2,198,096 Liabilities: Collateralized loan obligations $ 2,130,121 $ 1,593,548 Debt fund 68,629 68,183 Due to related party 6,734 — Other liabilities 4,115 3,408 Total liabilities $ 2,209,599 $ 1,665,139 |
Summary of the Company's variable interests in identified VIEs, of which the company is not the primary beneficiary | A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of December 31, 2019 is as follows (in thousands): Carrying Type Amount (1) Loans $ 436,169 B Piece and SFR bonds 88,699 Equity investments 12,961 Agency interest only strips 2,735 Total $ 540,564 (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2019, $129.0 million of loans to VIEs had corresponding loan loss reserves of $69.4 million. See Note 3 for details. In addition, the maximum loss exposure as of December 31, 2019 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Schedule of dividends declared by the Company (on a per share basis) | Dividends declared (on a per share basis) for the year ended December 31, 2019 are as follows: Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C February 13, 2019 $ 0.27 February 1, 2019 $ $ $ May 1, 2019 $ 0.28 May 1, 2019 $ $ $ July 31, 2019 $ 0.29 July 31, 2019 $ $ $ October 30, 2019 $ 0.30 October 30, 2019 $ $ $ (1) The dividend declared on February 1, 2019 was for December 1, 2018 through February 28, 2019. The dividend declared on May 1, 2019 was for March 1, 2019 through May 31, 2019. The dividend declared on July 31, 2019 was for June 1, 2019 through August 31, 2019. The dividend declared on October 30, 2019 was for September 1, 2019 through November 30, 2019. |
Schedule of reconciliation of the numerator and denominator of the basic and diluted EPS computations | A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows: Year Ended December 31, 2019 2018 2017 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 121,074 $ 121,074 $ 108,312 $ 108,312 $ 65,835 $ 65,835 Net income attributable to noncontrolling interest (2) — 26,610 — 32,185 — 24,120 Net income attributable to common stockholders and noncontrolling interest $ 121,074 $ 147,684 $ 108,312 $ 140,497 $ 65,835 $ 89,955 Weighted average shares outstanding 92,851,327 92,851,327 70,208,165 70,208,165 57,890,574 57,890,574 Dilutive effect of OP Units (2) — 20,502,128 — 21,033,103 — 21,230,769 Dilutive effect of restricted stock units (3) — 1,421,528 — 1,476,653 — 1,092,072 Dilutive effect of convertible notes (4) — 1,417,968 — 908,861 — 97,837 Dilutive effect of stock dividend (5) — — — 15,386 — — Weighted average shares outstanding 92,851,327 116,192,951 70,208,165 93,642,168 57,890,574 80,311,252 Net income per common share (1) $ 1.30 $ 1.27 $ 1.54 $ 1.50 $ 1.14 $ 1.12 (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Mr. Kaufman is granted restricted stock units annually, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. (4) The convertible senior unsecured notes impact diluted earnings per share if the average price of our common stock exceeds the conversion price, as calculated in accordance with the terms of the indenture. (5) Represents the dilutive effect of the portion of the special dividend that was paid with common shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of pre-tax GAAP income | A summary of our pre-tax GAAP income is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Pre-tax GAAP income: REIT $ 94,076 $ 64,260 $ 66,988 TRS Consolidated Group 76,198 93,522 43,880 Total pre-tax GAAP income $ 170,274 $ 157,782 $ 110,868 |
Schedule of provision (benefit) from income taxes | Our provision for (benefit from) income taxes is comprised as follows (in thousands): Year Ended December 31, 2019 2018 2017 Current tax provision: Federal $ 12,380 $ 17,479 $ 17,201 State 2,505 4,285 3,557 Total 14,885 21,764 20,758 Deferred tax provision (benefit) : Federal $ 2,744 $ (9,446) $ (2,928) State 688 (2,867) (929) Valuation allowance (3,281) 280 (3,542) Total 151 (12,033) (7,399) Total income tax expense $ 15,036 $ 9,731 $ 13,359 |
Schedule of reconciliation of effective income tax rate as a percentage of pretax income or loss to the U.S. federal statutory rate | Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % REIT non-taxable income (11.3) (8.6) (21.2) State and local income taxes, net of federal tax benefit 1.5 0.6 1.6 Change in valuation allowance (1.9) 0.2 (1.3) Preferred equity interest deferred tax write-off — (6.3) — Tax rate change — — (4.8) Other (0.5) (0.7) 2.7 Effective income tax rate 8.8 % 6.2 % 12.0 % |
Summary of significant components of deferred tax assets and liabilities of TRS Consolidated Group | The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Expenses not currently deductible $ 14,850 $ 11,853 Loan loss reserves 8,863 8,614 Net operating and capital loss carryforwards 417 417 Valuation allowance (417) (3,698) Deferred tax assets, net $ 23,713 $ 17,186 Deferred tax liabilities: Interest in equity affiliates–net $ 1,587 $ 136 Intangibles 8,684 9,674 Mortgage servicing rights 11,476 5,290 Other 837 807 Deferred tax liabilities, net $ 22,584 $ 15,907 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Schedule of statement of income and balance sheet by segment | Year Ended December 31, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 289,841 $ 26,099 $ — $ 315,940 Interest expense 169,802 16,597 — 186,399 Net interest income 120,039 9,502 — 129,541 Other revenue: Gain on sales, including fee-based services, net — 65,652 — 65,652 Mortgage servicing rights — 90,761 — 90,761 Servicing revenue — 103,223 — 103,223 Amortization of MSRs — (48,681) — (48,681) Property operating income 9,674 — — 9,674 Other income, net 903 (1,687) — (784) Total other revenue 10,577 209,268 — 219,845 Other expenses: Employee compensation and benefits 31,264 90,838 — 122,102 Selling and administrative 18,099 22,230 — 40,329 Property operating expenses 10,220 — — 10,220 Depreciation and amortization 2,046 5,464 — 7,510 Impairment loss on real estate owned 1,000 — — 1,000 Provision for loss sharing (net of recoveries) — 1,147 — 1,147 Total other expenses 62,629 119,679 — 182,308 Income before extinguishment of debt, income from equity affiliates and income taxes 67,987 99,090 — 167,078 Loss on extinguishment of debt (7,439) — — (7,439) Income from equity affiliates 10,635 — — 10,635 Provision for income taxes (668) (14,368) — (15,036) Net income 70,515 84,722 — 155,238 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 26,610 26,610 Net income attributable to common stockholders $ 62,961 $ 84,722 $ (26,610) $ 121,074 Year Ended December 31, 2018 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 226,750 $ 25,018 $ — $ 251,768 Interest expense 137,719 15,770 329 153,818 Net interest income 89,031 9,248 (329) 97,950 Other revenue: Gain on sales, including fee-based services, net — 70,002 — 70,002 Mortgage servicing rights — 98,839 — 98,839 Servicing revenue — 94,158 — 94,158 Amortization of MSRs — (48,124) — (48,124) Property operating income 10,095 — — 10,095 Other income, net 1,490 6,671 — 8,161 Total other revenue 11,585 221,546 — 233,131 Other expenses: Employee compensation and benefits 27,456 83,014 — 110,470 Selling and administrative 15,642 21,432 — 37,074 Property operating expenses 10,431 — — 10,431 Depreciation and amortization 1,851 5,602 — 7,453 Impairment loss on real estae owned 2,000 — — 2,000 Provision for loss sharing (net of recoveries) — 3,843 — 3,843 Provision for loan losses (net of recoveries) 8,353 — — 8,353 Litigation settlement gain (10,170) — — (10,170) Total other expenses 55,563 113,891 — 169,454 Income before extinguishment of debt, income from equity affiliates and income taxes 45,053 116,903 (329) 161,627 Loss on extinguishment of debt (5,041) — — (5,041) Income from equity affiliates 1,196 — — 1,196 Benefit from (provision for) income taxes 774 (10,505) — (9,731) Net income 41,982 106,398 (329) 148,051 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 32,185 32,185 Net income attributable to common stockholders $ 34,428 $ 106,398 $ (32,514) $ 108,312 Year Ended December 31, 2017 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 136,526 $ 19,651 $ — $ 156,177 Interest expense 74,136 12,089 3,847 90,072 Net interest income 62,390 7,562 (3,847) 66,105 Other revenue: Gain on sales, including fee-based services, net — 72,799 — 72,799 Mortgage servicing rights — 76,820 — 76,820 Servicing revenue — 76,412 — 76,412 Amortization of MSRs — (47,202) — (47,202) Property operating income 10,973 — — 10,973 Other income, net 2,083 (1,398) — 685 Total other revenue 13,056 177,431 — 190,487 Other expenses: Employee compensation and benefits 19,555 72,571 — 92,126 Selling and administrative 11,765 18,973 — 30,738 Property operating expenses 10,482 — — 10,482 Depreciation and amortization 1,784 5,601 — 7,385 Impairment loss on real estate owned 3,200 — — 3,200 Provision for loss sharing (net of recoveries) — (259) — (259) Provision for loan losses (net of recoveries) (456) — — (456) Management fee-related party 3,259 3,414 — 6,673 Total other expenses 49,589 100,300 — 149,889 Income before extinguishment of debt, loss from equity affiliates and income taxes 25,857 84,693 (3,847) 106,703 Gain on extinguishment of debt 7,116 — — 7,116 Loss from equity affiliates (2,951) — — (2,951) Provision for income taxes (957) (12,402) — (13,359) Net income 29,065 72,291 (3,847) 97,509 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 24,120 24,120 Net income attributable to common stockholders $ 21,511 $ 72,291 $ (27,967) $ 65,835 (1) Includes certain corporate expenses not allocated to the two reportable segments, such as financing costs associated with the Acquisition, as well as income allocated to the noncontrolling interest holders. December 31, 2019 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 264,468 $ 35,219 $ 299,687 Restricted cash 208,926 1,949 210,875 Loans and investments, net 4,189,960 — 4,189,960 Loans held-for-sale, net — 861,360 861,360 Capitalized mortgage servicing rights, net — 286,420 286,420 Securities held-to-maturity, net 20,000 68,699 88,699 Investments in equity affiliates 41,800 — 41,800 Goodwill and other intangible assets 12,500 98,200 110,700 Other assets 118,175 31,484 149,659 Total assets $ 4,855,829 $ 1,383,331 $ 6,239,160 Liabilities: Debt obligations $ 3,878,343 $ 743,595 $ 4,621,938 Allowance for loss-sharing obligations — 34,648 34,648 Other liabilities 171,004 55,543 226,547 Total liabilities $ 4,049,347 $ 833,786 $ 4,883,133 December 31, 2018 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 89,457 $ 70,606 $ 160,063 Restricted cash 180,606 — 180,606 Loans and investments, net 3,200,145 — 3,200,145 Loans held-for-sale, net — 481,664 481,664 Capitalized mortgage servicing rights, net — 273,770 273,770 Securities held- to- maturity, net — 76,363 76,363 Investments in equity affiliates 21,580 — 21,580 Goodwill and other intangible assets 12,500 103,665 116,165 Other assets 81,494 20,325 101,819 Total assets $ 3,585,782 $ 1,026,393 $ 4,612,175 Liabilities: Debt obligations $ 2,842,688 $ 472,181 $ 3,314,869 Allowance for loss-sharing obligations — 34,298 34,298 Other liabilities 159,413 38,029 197,442 Total liabilities $ 3,002,101 $ 544,508 $ 3,546,609 |
Schedule of origination data and loan sales data | Year Ended December 31, 2019 2018 2017 Origination Data: Structured Business New loan originations $ 2,803,251 $ 1,656,020 $ 1,842,974 Loan payoffs / paydowns 1,748,387 955,575 924,120 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,346,272 $ 3,332,100 $ 2,929,481 Freddie Mac 728,317 1,587,958 1,322,498 FHA 123,095 153,523 189,087 CMBS/Conduit 211,325 50,908 21,370 Private Label 401,216 — — Total $ 4,810,225 $ 5,124,489 $ 4,462,436 Total loan commitment volume $ 4,829,721 $ 5,104,072 $ 4,344,328 Loan Sales Data: Agency Business Fannie Mae $ 3,296,523 $ 3,217,006 $ 3,223,953 Freddie Mac 786,993 1,540,483 1,399,029 FHA 106,271 115,747 170,554 CMBS/Conduit 211,325 50,908 21,370 Total $ 4,401,112 $ 4,924,144 $ 4,814,906 Sales margin (fee-based services as a % of loan sales) 1.49 % 1.42 % 1.51 % MSR rate (MSR income as a % of loan commitments) 1.88 % 1.94 % 1.77 % |
Schedule of key servicing metrics for Agency Business | December 31, 2019 Wtd. Avg. Life of UPB of Servicing Wtd. Avg. Servicing Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio Fee Rate (basis points) (in years) Fannie Mae $ 14,832,844 49.3 Freddie Mac 4,534,714 30.0 FHA 691,519 15.4 Total $ 20,059,077 43.8 December 31, 2018 Fannie Mae $ 13,562,667 51.3 Freddie Mac 4,394,287 30.8 FHA 644,687 15.5 Total $ 18,601,641 45.2 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Data - Unaudited | |
Summary of quarterly financial data | Summarized quarterly financial data for 2019 and 2018 is as follows ($ in thousands, except per share data): Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Net interest income $ 33,797 $ 32,445 $ 33,887 $ 29,412 Total other revenue 62,365 62,558 50,072 44,848 Total other expenses 41,670 48,882 45,471 46,287 Income before extinguishment of debt, income from equity affiliates and income taxes 54,492 46,121 38,488 27,973 Loss on extinguishment of debt (7,311) — — (128) Income from equity affiliates 1,502 3,718 3,264 2,151 (Provision for) benefit from income taxes (4,072) (6,623) (4,350) 10 Net income 44,611 43,216 37,402 30,006 Preferred stock dividends 1,888 1,888 1,888 1,888 Net income attributable to noncontrolling interest 7,181 7,363 6,598 5,468 Net income attributable to common stockholders $ 35,542 $ 33,965 $ 28,916 $ 22,650 Basic earnings per common share (1) $ 0.35 $ 0.36 $ 0.32 $ 0.27 Diluted earnings per common share (1) $ 0.34 $ 0.35 $ 0.31 $ 0.26 Three Months Ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Net interest income $ 30,361 $ 27,952 $ 21,411 $ 18,225 Total other revenue 77,464 55,580 46,923 53,162 Total other expenses 50,255 34,739 40,610 43,849 Income before extinguishment of debt, income from equity affiliates and income taxes 57,570 48,793 27,724 27,538 Loss on extinguishment of debt (82) (4,960) — — Income (loss) from equity affiliates 91 (1,028) 1,387 746 (Provision for) benefit from income taxes (8,635) (5,381) (4,499) 8,784 Net income 48,944 37,424 24,612 37,068 Preferred stock dividends 1,888 1,888 1,888 1,888 Net income attributable to noncontrolling interest 9,838 7,799 5,557 8,991 Net income attributable to common stockholders $ 37,218 $ 27,737 $ 17,167 $ 26,189 Basic earnings per common share (1) $ 0.48 $ 0.37 $ 0.26 $ 0.42 Diluted earnings per common share (1) $ 0.47 $ 0.36 $ 0.25 $ 0.42 (1) The sum of the quarterly amounts may not equal amounts reported for year-to-date periods, due to the effects of rounding for each period. |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Description of Business | |
Number of business segments | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies, Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recently Adopted Accounting Pronouncements | |||
Cash and cash equivalents at beginning of period | $ 160,063 | $ 104,374 | $ 138,645 |
Cash, cash equivalents and restricted cash at beginning of period | 340,669 | 243,772 | 167,960 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 169,893 | 96,897 | 75,812 |
Cash and cash equivalents at end of period | 299,687 | 160,063 | 104,374 |
Cash, cash equivalents and restricted cash at end of period | 510,562 | 340,669 | 243,772 |
Net cash provided by (used in) operating activities: changes in operating assets and liabilities | (8,332) | (8,205) | (308) |
Net cash used in investing activities | (994,740) | (681,875) | (906,845) |
Net cash provided by financing activities | 1,391,170 | 816,507 | 522,953 |
Unrealized loss on securities available-for-sale, at fair value | (382) | ||
Retained Earnings (Accumulated Deficit) | $ (60,920) | (74,133) | |
Previously reported under GAAP | |||
Recently Adopted Accounting Pronouncements | |||
Cash and cash equivalents at beginning of period | 104,374 | 138,645 | |
Net decrease in cash and cash equivalents | (34,271) | ||
Cash and cash equivalents at end of period | 104,374 | ||
Net cash provided by (used in) operating activities: changes in operating assets and liabilities | 822 | ||
Net cash used in investing activities | (907,949) | ||
Net cash provided by financing activities | 412,844 | ||
ASU 2016-15 and ASU 2016-18 | |||
Recently Adopted Accounting Pronouncements | |||
Cash, cash equivalents and restricted cash at beginning of period | $ 243,772 | 167,960 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 75,812 | ||
Cash, cash equivalents and restricted cash at end of period | 243,772 | ||
Net cash provided by (used in) operating activities: changes in operating assets and liabilities | (308) | ||
Net cash used in investing activities | (906,845) | ||
Net cash provided by financing activities | $ 522,953 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Impaired Loans, Allowance for Loan Losses and Charge-offs (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Impaired Loans, Allowance for Loan Losses and Charge-offs | ||||||
Adjustments made to appraisals | $ 0 | |||||
Allowance for Loss-Sharing Obligations | ||||||
Period of a loan past due becomes delinquent | 60 days | |||||
Real Estate Owned and Held-For-Sale | ||||||
Period following acquisition in which the entity finalizes the purchase price allocation of the real estate properties acquired | 1 year | |||||
Operating lease liabilities | $ 20,100 | |||||
Operating lease ROU assets | $ 20,100 | |||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets. | |||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | |||||
Cumulative allowances for loan losses | $ 71,069 | $ 71,069 | $ 62,783 | $ 83,712 | ||
Fannie Mae | ||||||
Allowance for Loss-Sharing Obligations | ||||||
Percentage of loss obligation on UPB | 5.00% | |||||
Percentage of additional loss obligation on UPB | 5.00% | |||||
Obligated funding percentage of mortgage delinquencies | 100.00% | |||||
Loss sharing funding percentage of advances until final settlement | 25.00% | |||||
ASU 2016-15 | ||||||
Significant Accounting Policies | ||||||
Reclassification of Proceeds from Insurance Settlements from Operating Activities to Investing Activities | $ 1,100 | |||||
ASU 2016-13 | ||||||
Real Estate Owned and Held-For-Sale | ||||||
Cumulative allowances for loan losses | $ 37,000 | |||||
ASU 2016-13 | Previously reported | ||||||
Real Estate Owned and Held-For-Sale | ||||||
Cumulative allowances for loan losses | $ 27,000 | |||||
Minimum | ||||||
Loans Held-for-Sale, Net | ||||||
Maximum number of days held-for-sale loans are generally transferred or sold | 60 days | |||||
Maximum | ||||||
Loans Held-for-Sale, Net | ||||||
Maximum number of days held-for-sale loans are generally transferred or sold | 180 days | |||||
Maximum | Fannie Mae | ||||||
Allowance for Loss-Sharing Obligations | ||||||
Percentage of loss obligation on UPB | 20.00% | |||||
Commercial Loans | MSRs | ||||||
Capitalized Mortgage Servicing Rights | ||||||
Inflation rate used for adequate compensation | 3.00% | |||||
Commercial Loans | MSRs | Discount rate | Minimum | ||||||
Capitalized Mortgage Servicing Rights | ||||||
Discount rates to determine the present value of MSRs (as a percent) | 8 | |||||
Commercial Loans | MSRs | Discount rate | Maximum | ||||||
Capitalized Mortgage Servicing Rights | ||||||
Discount rates to determine the present value of MSRs (as a percent) | 15 | |||||
Commercial Loans | MSRs | Discount rate | Weighted average | ||||||
Capitalized Mortgage Servicing Rights | ||||||
Discount rates to determine the present value of MSRs (as a percent) | 12 |
Loans and Investments, Investme
Loans and Investments, Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)itemloan | Dec. 31, 2018USD ($)itemloan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loans and Investments | ||||
Loans and investments, gross | $ 4,279,611 | $ 3,283,342 | ||
Allowance for loan losses | (71,069) | (71,069) | $ (62,783) | $ (83,712) |
Unearned revenue | (18,582) | (12,128) | ||
Loans and investments, net | $ 4,189,960 | $ 3,200,145 | ||
Percent of Total | 100.00% | 100.00% | ||
Loan Count | loan | 272 | 190 | ||
Wtd. Avg. Pay Rate (as a percent) | 5.98% | 7.02% | ||
Wtd. Avg. Remaining Months to Maturity | 22 months 3 days | 22 months | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 5.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 75.00% | ||
Number of loans and investments | loan | 8 | 8 | ||
Carrying value of loans | $ 4,279,611 | |||
Higher-risk | ||||
Loans and Investments | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 98.00% | 99.00% | ||
Carrying value of loans | $ 127,600 | $ 128,700 | ||
Total assets | Credit risk concentration | ||||
Loans and Investments | ||||
Loan Count | loan | 24 | 45 | ||
Number of different borrowers | item | 5 | 5 | ||
Concentration risk, percentage | 13.00% | 22.00% | ||
Bridge loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 3,836,832 | $ 2,992,814 | ||
Percent of Total | 90.00% | 91.00% | ||
Loan Count | loan | 217 | 167 | ||
Wtd. Avg. Pay Rate (as a percent) | 5.77% | 6.84% | ||
Wtd. Avg. Remaining Months to Maturity | 18 months | 18 months 15 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 75.00% | 74.00% | ||
Carrying value of loans | $ 3,836,832 | |||
Bridge loans | Single-Family Rental | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 11 | |||
Total loan commitment | $ 66,700 | |||
Unpaid principal balance, funded | $ 30,000 | |||
Bridge loans | Purchased Loans [Member] | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 9 | |||
Mezzanine loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 191,575 | $ 108,867 | ||
Percent of Total | 4.00% | 3.00% | ||
Loan Count | loan | 24 | 13 | ||
Wtd. Avg. Pay Rate (as a percent) | 9.70% | 10.57% | ||
Wtd. Avg. Remaining Months to Maturity | 36 months 21 days | 22 months 3 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 22.00% | 28.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 73.00% | 72.00% | ||
Preferred equity investments | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 181,058 | $ 181,661 | ||
Percent of Total | 4.00% | 6.00% | ||
Loan Count | loan | 10 | 10 | ||
Wtd. Avg. Pay Rate (as a percent) | 7.62% | 7.97% | ||
Wtd. Avg. Remaining Months to Maturity | 68 months 24 days | 78 months | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 69.00% | 66.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 89.00% | 89.00% | ||
Carrying value of loans | $ 34,800 | |||
Other | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 70,146 | |||
Percent of Total | 2.00% | |||
Loan Count | loan | 21 | |||
Wtd. Avg. Pay Rate (as a percent) | 2.88% | |||
Wtd. Avg. Remaining Months to Maturity | 84 months 24 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 70.00% | |||
Other | Single-Family Rental | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 12 | |||
Total loan commitment | $ 41,600 | |||
Other | Purchased Loans [Member] | ||||
Loans and Investments | ||||
Total loan commitment | $ 28,600 |
Loans and Investments, Risk Rat
Loans and Investments, Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Investments | ||
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 5.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 75.00% |
Credit risk concentration | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 4,279,611 | $ 3,283,342 |
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 5.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 75.00% |
Credit risk concentration | Loans and investments portfolio | New York | ||
Loans and Investments | ||
Concentration risk, percentage | 18.00% | 23.00% |
Credit risk concentration | Loans and investments portfolio | Texas | ||
Loans and Investments | ||
Concentration risk, percentage | 12.00% | 18.00% |
Credit risk concentration | Multifamily | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 3,429,278 | $ 2,427,920 |
Percentage of Portfolio | 80.00% | 74.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 5.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 75.00% |
Credit risk concentration | Land | Substandard | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 151,628 | |
Percentage of Portfolio | 5.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 90.00% | |
Credit risk concentration | Land | Special mention | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 221,489 | |
Percentage of Portfolio | 5.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 87.00% | |
Credit risk concentration | Healthcare | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 203,694 | $ 122,775 |
Percentage of Portfolio | 5.00% | 4.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 77.00% |
Credit risk concentration | Hotel | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 142,300 | $ 100,075 |
Percentage of Portfolio | 3.00% | 3.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 10.00% | 13.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 60.00% | 66.00% |
Credit risk concentration | Office | Special mention | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 134,007 | $ 132,047 |
Percentage of Portfolio | 3.00% | 4.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | 3.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 67.00% | 68.00% |
Credit risk concentration | Single-Family Rental | Pass | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 71,592 | |
Percentage of Portfolio | 2.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 71.00% | |
Credit risk concentration | Retail | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 45,367 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 6.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 65.00% | |
Credit risk concentration | Retail | Special mention | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 49,258 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 6.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 62.00% | |
Credit risk concentration | Self Storage | Pass/watch | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 26,293 | $ 301,830 |
Percentage of Portfolio | 1.00% | 9.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 24.00% | 0.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 53.00% | 72.00% |
Credit risk concentration | Other | Doubtful | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 1,700 | $ 1,700 |
Percentage of Portfolio | 1.00% | 1.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 63.00% | 63.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 63.00% | 63.00% |
Loans and Investments, Impaired
Loans and Investments, Impaired Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in allowance for loan losses | ||
Allowance at beginning of period | $ 62,783 | $ 83,712 |
Provision for loan losses | 13,986 | 2,000 |
Charge-offs | (3,173) | (20,473) |
Recoveries of reserves | (2,527) | (2,456) |
Allowance at end of period | $ 71,069 | $ 62,783 |
Loans and Investments, Charge-o
Loans and Investments, Charge-offs and Recoveries Narratives (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Loans and Investments | ||||
Provision for loan losses | $ 13,986 | $ 2,000 | ||
Recoveries of reserves | $ 2,527 | $ 2,456 | ||
Secured amount of loan | $ 4,279,611 | |||
Ratio of net recoveries (in percentage) | 0.10% | (0.80%) | ||
Number of loans for which no provision for loan loss made | loan | 0 | 0 | 0 | |
Mortgage Loans on Real Estate, Number of Loans | loan | 272 | 190 | ||
Cumulative allowances for loan losses | $ 71,069 | $ 71,069 | $ 62,783 | $ 83,712 |
Six loans collateralized by a land development project | Maturity date of September 2019 | ||||
Loans and Investments | ||||
Provision for loan losses | 12,300 | |||
Unpaid principal balance on loans | $ 120,300 | $ 121,400 | ||
Number of loans with unpaid principal balance | loan | 6 | 6 | ||
Five loans collateralized by a land development project | Maturity date of September 2019 | ||||
Loans and Investments | ||||
Unpaid principal balance on loans | $ 111,000 | |||
Weighted average accrual rate of interest (as a percent) | 8.74% | |||
Cumulative allowances for loan losses | $ 61,400 | $ 61,400 | ||
Number of loans with unpaid principal balance | loan | 5 | |||
Mezzanine loans | ||||
Loans and Investments | ||||
Recoveries of reserves | 1,800 | |||
Mortgage Loans on Real Estate, Number of Loans | loan | 24 | 13 | ||
Proceeds from Sale and Collection of Mortgage Notes Receivable | 1,800 | |||
Bridge loans | ||||
Loans and Investments | ||||
Provision for loan losses | $ 1,700 | |||
Recoveries of reserves | 700 | |||
Secured amount of loan | $ 3,836,832 | |||
Mortgage Loans on Real Estate, Number of Loans | loan | 217 | 167 | ||
Junior participating loans | ||||
Loans and Investments | ||||
Charge-off | 20,500 | |||
Preferred equity investments | ||||
Loans and Investments | ||||
Secured amount of loan | 34,800 | |||
Provision for Loan and Lease Losses | $ 2,000 | |||
Mortgage Loans on Real Estate, Number of Loans | loan | 10 | 10 | ||
Hotel | ||||
Loans and Investments | ||||
Proceed from payment for full satisfaction of a preferred equity investment | $ 31,600 | |||
Net carrying value of loans sold | 29,100 | |||
Recoveries of reserves | 2,500 | |||
Charge-off | 3,200 | |||
Proceeds from previously written-off loans and investments | 3,100 | |||
Unpaid principal balance on loans | $ 34,800 |
Loans and Investments, Summary
Loans and Investments, Summary of impaired loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 138,141 | $ 138,181 |
Carrying Value | 130,726 | 131,835 |
Allowance for Loan Losses | 71,069 | 71,069 |
Average Recorded Investment | 138,161 | 154,003 |
Interest Income Recognized | $ 239 | $ 230 |
Number of impaired loans | loan | 5 | 5 |
Land | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | $ 134,215 | $ 134,215 |
Carrying Value | 126,800 | 127,869 |
Allowance for Loan Losses | 67,869 | 67,869 |
Average Recorded Investment | 134,215 | 132,651 |
Interest Income Recognized | 107 | 103 |
Office | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | 2,226 | 2,266 |
Carrying Value | 2,226 | 2,266 |
Allowance for Loan Losses | 1,500 | 1,500 |
Average Recorded Investment | 2,246 | 2,277 |
Interest Income Recognized | 132 | 127 |
Hotel | ||
Loans and Investments | ||
Average Recorded Investment | 17,375 | |
Commercial | ||
Loans and Investments | ||
Unpaid Principal Balance (UPB) | 1,700 | 1,700 |
Carrying Value | 1,700 | 1,700 |
Allowance for Loan Losses | 1,700 | 1,700 |
Average Recorded Investment | $ 1,700 | $ 1,700 |
Loans and Investments, Non-perf
Loans and Investments, Non-performing Loans (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Non-performing loans by asset class | ||
Number of loans | loan | 272 | 190 |
Carrying value of loans | $ 4,279,611,000 | |
Carrying Value | $ 0 | $ 0 |
Non-performing loans | ||
Non-performing loans by asset class | ||
Number of loans | loan | 3 | 2 |
Carrying value of loans | $ 1,800,000 | $ 800,000 |
Loan loss reserves | 1,700,000 | 1,700,000 |
Carrying Value | $ 3,523,000 | $ 2,532,000 |
Number of loan modifications, refinancings and/or extensions, considered to be troubled debt restructurings | loan | 0 | 0 |
Greater Than 90 Days Past Due | ||
Non-performing loans by asset class | ||
Past Due, Non-performing Loans | $ 0 | $ 0 |
Greater Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due, Non-performing Loans | 3,523,000 | 2,532,000 |
Accruing interest | 0 | 0 |
Commercial | Non-performing loans | ||
Non-performing loans by asset class | ||
Carrying Value | 1,700,000 | 1,700,000 |
Commercial | Greater Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due, Non-performing Loans | 1,700,000 | 1,700,000 |
Retail | Non-performing loans | ||
Non-performing loans by asset class | ||
Carrying Value | 990,000 | |
Retail | Greater Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due, Non-performing Loans | 990,000 | |
Office | Non-performing loans | ||
Non-performing loans by asset class | ||
Carrying Value | 833,000 | 832,000 |
Office | Greater Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due, Non-performing Loans | $ 833,000 | $ 832,000 |
Loans and Investments, Interest
Loans and Investments, Interest Reserves (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)loan | |
Loans and Investments | ||
Interest reserve held | $ 37,000,000 | $ 48,900,000 |
Number of loans covered under interest reserve | 131 | 110 |
Aggregate UPB covered under interest reserve | $ 2,430,000,000 | $ 2,220,000,000 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Held-for-Sale, Net | |||
Loans held-for-sale | $ 847,126 | $ 472,964 | |
Fair value of future MSR | 16,519 | 10,253 | |
Unearned discount | (2,285) | (1,553) | |
Loans held-for-sale, net | 861,360 | 481,664 | |
Sale of loans held-for-sale | 4,189,787 | 4,893,886 | $ 4,814,906 |
Sale of loans held-for-sale excluding acquired loans | 4,400,000 | 4,920,000 | 4,810,000 |
Gain on sale of loans held-for-sale | 61,100 | 65,500 | $ 68,300 |
Loans with non-accrual status | $ 0 | 0 | |
Minimum | |||
Loans Held-for-Sale, Net | |||
Period of loans held for sale sold | 60 days | ||
Maximum | |||
Loans Held-for-Sale, Net | |||
Period of loans held for sale sold | 180 days | ||
Greater Than 90 Days Past Due | |||
Loans Held-for-Sale, Net | |||
Loans past due | $ 0 | 0 | |
Fannie Mae | |||
Loans Held-for-Sale, Net | |||
Loans held-for-sale, net | 408,534 | 358,790 | |
Freddie Mac | |||
Loans Held-for-Sale, Net | |||
Loans held-for-sale | 36,303 | 95,004 | |
FHA | |||
Loans Held-for-Sale, Net | |||
Loans held-for-sale, net | 1,082 | $ 19,170 | |
Private Label | |||
Loans Held-for-Sale, Net | |||
Loans held-for-sale, net | $ 401,207 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of period | $ 273,770 | |
Balance at end of period | 286,420 | $ 273,770 |
Expected amortization of capitalized MSRs balances | ||
2020 | 5,249 | |
2021 | 4,691 | |
2022 | 4,691 | |
2023 | 4,691 | |
2024 | 3,259 | |
MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of period | 273,770 | 252,608 |
Additions | 83,756 | 94,344 |
Amortization | (48,681) | (48,124) |
Write-downs and payoffs | (22,425) | (25,058) |
Balance at end of period | 286,420 | 273,770 |
Prepayment fees collected | 18,400 | 21,900 |
Valuation allowance | 0 | $ 0 |
Expected amortization of capitalized MSRs balances | ||
2020 | 46,307 | |
2021 | 42,538 | |
2022 | 37,596 | |
2023 | 33,203 | |
2024 | 28,981 | |
Thereafter | 97,795 | |
Total | $ 286,420 | |
MSRs | Weighted average | ||
Capitalized Mortgage Servicing Rights | ||
Estimated life remaining | 8 years | 7 years 7 months 6 days |
Acquired MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of period | $ 97,084 | $ 143,270 |
Amortization | (21,042) | (28,958) |
Write-downs and payoffs | (11,523) | (17,228) |
Balance at end of period | 64,519 | 97,084 |
Originated MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of period | 176,686 | 109,338 |
Additions | 83,756 | 94,344 |
Amortization | (27,639) | (19,166) |
Write-downs and payoffs | (10,902) | (7,830) |
Balance at end of period | $ 221,901 | $ 176,686 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)state | Dec. 31, 2018USD ($)state | Dec. 31, 2017USD ($) | |
Mortgage Servicing | |||
Interest earned on total escrows | $ 17,300 | $ 12,800 | $ 5,200 |
Fee-based servicing portfolio | |||
Mortgage Servicing | |||
Escrow Deposit | 947,100 | 824,100 | |
MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 20,059,077 | $ 18,601,641 | |
Weighted average servicing fee (as a percent) | 0.438% | 0.452% | |
MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 100.00% | 100.00% | |
Escrow Deposit | $ 562,100 | $ 521,200 | |
Texas | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 19.00% | 20.00% | |
North Carolina | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 9.00% | 10.00% | |
New York | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 9.00% | 8.00% | |
California | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 9.00% | 8.00% | |
Georgia | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 6.00% | |
Florida | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 6.00% | |
Other | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 42.00% | 42.00% | |
Number of states accounted for more than 4% of UPB and related servicing revenues | state | 0 | 0 | |
Freddie Mac | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 4,534,714 | ||
Freddie Mac | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 23.00% | ||
Fannie Mae | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 14,832,844 | ||
Fannie Mae | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 74.00% | ||
Fannie Mae | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 13,562,667 | ||
Fannie Mae | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 73.00% | ||
Freddie Mac | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 4,394,287 | ||
Freddie Mac | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 24.00% | ||
FHA | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 691,519 | $ 644,687 | |
FHA | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 3.00% | 3.00% |
Securities Held-to-Maturity (De
Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Held-to-Maturity | |||
Carrying Value | $ 88,699 | $ 76,363 | |
Held-to-Maturity | |||
Held-to-Maturity | |||
Face Value | 111,028 | 103,515 | |
Carrying Value | 88,699 | 76,363 | |
Unrealized Gain | 3,039 | 2,734 | |
Estimated Fair Value | 91,738 | 79,097 | |
Impairment charges | 0 | ||
Interest income (including the amortization of discount) | $ 9,900 | $ 5,800 | $ 1,800 |
Held-to-Maturity | Seven B Piece Bonds | |||
Held-to-Maturity | |||
Bonds retained percentage | 49.00% | ||
Discounted value of bonds purchased | $ 74,700 | ||
Remaining of B Piece bond sold to the third party at par | 51.00% | ||
Estimated weighted average remaining maturity period | 5 years 9 months 18 days | ||
Initial face value of bonds purchased | $ 106,200 | ||
Held-to-Maturity | Agency B Piece Bonds | |||
Held-to-Maturity | |||
Weighted average variable interest rate (as a percent) | 3.74% | ||
Weighted average effective interest rate (as a percent) | 10.85% | 10.94% | |
Held-to-maturity securities, estimated fiscal year | |||
Within one year | $ 14,200 | ||
After one year through five years | 40,800 | ||
After five years through ten years | 20,600 | ||
After ten years | 15,400 | ||
Held-to-Maturity | SFR bonds | |||
Held-to-Maturity | |||
Initial face value of bonds purchased | $ 20,000 | ||
Securities maturity term | 6 months | ||
Weighted average fixed interest rate | 4.58% | ||
Held-to-maturity securities, estimated fiscal year | |||
Within one year | $ 18,700 | ||
After one year through five years | $ 1,300 |
Investments in Equity Affilia_3
Investments in Equity Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 41,800 | $ 21,580 |
UPB of Loans to Equity Affiliates | 47,758 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 26,520 | 19,260 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 10,520 | |
UPB of Loans to Equity Affiliates | 15,600 | |
North Vermont Avenue | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 2,440 | |
Lightstone Value Plus REIT L.P | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 1,895 | 1,895 |
JT Prime | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 425 | $ 425 |
West Shore Cafe | ||
Investment in Equity Affiliates | ||
UPB of Loans to Equity Affiliates | 1,688 | |
Lexford Portfolio | ||
Investment in Equity Affiliates | ||
UPB of Loans to Equity Affiliates | $ 30,470 |
Investments in Equity Affilia_4
Investments in Equity Affiliates, All Investments (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | |
Investment in Equity Affiliates | |||||||||||||
Secured debt | $ 2,130,121,000 | $ 1,593,548,000 | $ 2,130,121,000 | $ 1,593,548,000 | |||||||||
Noncontrolling interest invested | 13,522,000 | 2,493,000 | $ 693,000 | ||||||||||
Income (loss) from equity affiliates | 1,502,000 | $ 3,718,000 | $ 3,264,000 | $ 2,151,000 | $ 91,000 | $ (1,028,000) | $ 1,387,000 | $ 746,000 | 10,635,000 | 1,196,000 | (2,951,000) | ||
Loan to an affiliated entity | 47,758,000 | 47,758,000 | |||||||||||
Loans and investments, gross | 4,279,611,000 | 4,279,611,000 | |||||||||||
Multifamily | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Basis of equity participation interest | $ 1,500,000 | $ 0 | |||||||||||
Percentage of equity participation redeemed | 25.00% | ||||||||||||
Bridge loans | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Loans and investments, gross | 3,836,832,000 | $ 3,836,832,000 | |||||||||||
Arbor Residential Investor LLC | Residential Mortgage Banking Company | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Equity Investment | $ 9,600,000 | ||||||||||||
Charge for proportionate share of litigation settlement recorded | 2,400,000 | $ 5,500,000 | |||||||||||
Indirect ownership percentage | 16.3% | 22.5% | |||||||||||
Income (loss) from equity affiliates | $ 7,200,000 | (700,000) | 7,300,000 | ||||||||||
Arbor Residential Investor LLC | Residential Mortgage Banking Company | ACM / Our "Former Manager" | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||||||||
Arbor Residential Investor LLC | Non-qualified Residential Mortgages | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Equity Investment | $ 1,700,000 | ||||||||||||
Ownership percentage | 50.00% | ||||||||||||
Distribution received | $ 700,000 | 3,200,000 | |||||||||||
Basis of investment | 0 | 0 | |||||||||||
AMAC Holdings III LLC | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Distribution received | 200,000 | ||||||||||||
Investment in real estate committed | $ 30,000,000 | ||||||||||||
Investment in real estate | 10,900,000 | 10,900,000 | |||||||||||
Interest in a real estate investment (as a percent) | 18.00% | ||||||||||||
Loan to an affiliated entity | 15,600,000 | 15,600,000 | |||||||||||
North Vermont Avenue | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Noncontrolling interest invested | $ 2,400,000 | ||||||||||||
Noncontrolling interest in equity method investment (as a percent) | 85.00% | ||||||||||||
West Shore Cafe | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Ownership percentage | 50.00% | 50.00% | |||||||||||
Loan to an affiliated entity | $ 1,688,000 | $ 1,688,000 | |||||||||||
Other-than-temporary impairment recorded | $ 2,200,000 | ||||||||||||
West Shore Cafe | First mortgage | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Provided first mortgage loan to an affiliated entity | 1,700,000 | ||||||||||||
Variable rate, spread (as a percent) | 4.00% | ||||||||||||
Provision for loan loss recorded | 1,700,000 | ||||||||||||
Lightstone Value Plus REIT L.P | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Equity Investment | 1,900,000 | $ 1,900,000 | |||||||||||
JT Prime | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Equity Investment | 400,000 | $ 400,000 | |||||||||||
Noncontrolling interest in equity method investment (as a percent) | 50.00% | ||||||||||||
East River Portfolio | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Equity investment made | $ 100,000 | ||||||||||||
Ownership percentage | 5.00% | ||||||||||||
Number of properties owned | item | 2 | ||||||||||||
East River Portfolio | Chief executive officer and other related parties | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Percentage of ownership interest of related party in the entity | 95.00% | ||||||||||||
East River Portfolio | Bridge loans | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Loans and investments, gross | $ 1,700,000 | ||||||||||||
Variable rate, spread (as a percent) | 5.50% | ||||||||||||
Lexford Portfolio | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Noncontrolling interest | $ 44,000 | ||||||||||||
Distribution received | $ 3,500,000 | $ 2,500,000 | $ 2,500,000 | ||||||||||
Loan to an affiliated entity | $ 30,470,000 | 30,470,000 | |||||||||||
AMAC III | |||||||||||||
Investment in Equity Affiliates | |||||||||||||
Distribution received | 200,000 | ||||||||||||
Investment in real estate committed | $ 30,000,000 | ||||||||||||
Income (loss) from equity affiliates | $ 200,000 |
Real Estate Owned (Details)
Real Estate Owned (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Owned | ||||
Real estate owned, net | $ 13,220,000 | $ 14,446,000 | ||
Impairment loss on real estate owned | 1,000,000 | 2,000,000 | $ 3,200,000 | |
Restricted cash due to escrow requirement | 210,875,000 | 180,606,000 | 139,398,000 | $ 29,315,000 |
Real Estate Owned | ||||
Real Estate Owned | ||||
Less: Impairment loss | (16,807,000) | (15,807,000) | ||
Less: Accumulated depreciation and amortization | (11,327,000) | (10,626,000) | ||
Real estate owned, net | 13,220,000 | 14,446,000 | ||
Impairment loss on real estate owned | 1,000,000 | 2,000,000 | $ 3,200,000 | |
Restricted cash due to escrow requirement | 500,000 | 500,000 | ||
Real Estate Owned | Hotel | ||||
Real Estate Owned | ||||
Less: Impairment loss | (14,307,000) | (13,307,000) | ||
Less: Accumulated depreciation and amortization | (10,320,000) | (9,778,000) | ||
Real estate owned, net | $ 10,208,000 | $ 11,275,000 | ||
Weighted average occupancy rate of properties (as a percent) | 51.00% | 49.00% | 52.00% | |
Amount of weighted average daily rate of properties | $ 111 | $ 108 | $ 108 | |
Amount of weighted average daily revenue of properties | 57 | 53 | $ 56 | |
Real Estate Owned | Office | ||||
Real Estate Owned | ||||
Less: Impairment loss | (2,500,000) | (2,500,000) | ||
Less: Accumulated depreciation and amortization | (1,007,000) | (848,000) | ||
Real estate owned, net | 3,012,000 | 3,171,000 | ||
Real Estate Owned | Land | ||||
Real Estate Owned | ||||
Real estate owned, gross | 7,803,000 | 7,803,000 | ||
Real Estate Owned | Land | Hotel | ||||
Real Estate Owned | ||||
Real estate owned, gross | 3,294,000 | 3,294,000 | ||
Real Estate Owned | Land | Office | ||||
Real Estate Owned | ||||
Real estate owned, gross | 4,509,000 | 4,509,000 | ||
Real Estate Owned | Building and intangible assets | ||||
Real Estate Owned | ||||
Real estate owned, gross | 33,551,000 | 33,076,000 | ||
Real Estate Owned | Building and intangible assets | Hotel | ||||
Real Estate Owned | ||||
Real estate owned, gross | 31,541,000 | 31,066,000 | ||
Real Estate Owned | Building and intangible assets | Office | ||||
Real Estate Owned | ||||
Real estate owned, gross | $ 2,010,000 | $ 2,010,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Other Intangible Assets | ||
Goodwill | $ 56.6 | $ 56.6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Other Intangibles Asset (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived intangible assets: | |||
Accumulated Amortization | $ (19,235) | $ (13,771) | |
Intangible assets | |||
Intangible assets, Gross Carrying Value | 73,310 | 73,310 | |
Intangible assets, net | 54,075 | 59,539 | |
Amortization expense | 5,500 | 5,600 | $ 5,600 |
Fannie Mae DUS license | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Gross Carrying Value | 17,100 | 17,100 | |
Freddie Mac Program Plus license | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Gross Carrying Value | 8,700 | 8,700 | |
FHA License | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Gross Carrying Value | 3,200 | 3,200 | |
Broker relationships | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 25,000 | 25,000 | |
Accumulated Amortization | (10,807) | (7,683) | |
Total | 14,193 | 17,317 | |
Borrower relationships | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 14,400 | 14,400 | |
Accumulated Amortization | (4,980) | (3,540) | |
Total | 9,420 | 10,860 | |
Below market leases | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 4,010 | 4,010 | |
Accumulated Amortization | (2,548) | (1,811) | |
Total | 1,462 | 2,199 | |
Acquired technology | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 900 | 900 | |
Accumulated Amortization | $ (900) | (737) | |
Total | $ 163 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Estimated Amortization Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 5 years 3 months 18 days |
2020 | $ 5,249 |
2021 | 4,691 |
2022 | 4,691 |
2023 | 4,691 |
2024 | $ 3,259 |
Broker relationships | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 4 years 6 months |
2020 | $ 3,125 |
2021 | 3,125 |
2022 | 3,125 |
2023 | 3,125 |
2024 | $ 1,693 |
Borrower relationships | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 6 years 6 months |
2020 | $ 1,440 |
2021 | 1,440 |
2022 | 1,440 |
2023 | 1,440 |
2024 | $ 1,440 |
Below market leases | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 4 years 9 months 18 days |
2020 | $ 684 |
2021 | 126 |
2022 | 126 |
2023 | 126 |
2024 | $ 126 |
Debt Obligations, Credit Facili
Debt Obligations, Credit Facilities and Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Obligations | ||||
UPB | $ 1,681,146,000 | $ 1,681,146,000 | $ 1,138,135,000 | |
Debt Carrying Value | 1,678,288,000 | 1,678,288,000 | 1,135,627,000 | |
Collateral Carrying Value | $ 1,747,371,000 | $ 1,747,371,000 | $ 1,249,651,000 | |
Weighted Average Note Rate (as a percent) | 3.54% | 3.54% | 4.35% | |
Joint Repurchase Facility | ||||
Debt Obligations | ||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | ||
Extension of maturity date (in years) | 1 year | |||
Joint Repurchase Facility | Private Label | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 85.00% | |||
Joint Repurchase Facility | LIBOR | Private Label | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 150.00% | |||
Joint Repurchase Facility | Junior participating loans | LIBOR | Structured loans | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 350.00% | |||
Joint Repurchase Facility | Multifamily senior mortgage loans | LIBOR | Structured loans | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 175.00% | |||
Joint Repurchase Facility | Minimum | Non-multifamily senior mortgage loans | LIBOR | Structured loans | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 200.00% | |||
Joint Repurchase Facility | Maximum | Non-multifamily senior mortgage loans | LIBOR | Structured loans | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 225.00% | |||
Credit facility to finance single-family rental properties | Structured loans | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 250.00% | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | ||
Structured Business | ||||
Debt Obligations | ||||
UPB | 936,768,000 | 936,768,000 | $ 665,844,000 | |
Debt Carrying Value | 934,694,000 | 934,694,000 | 663,446,000 | |
Collateral Carrying Value | $ 1,002,993,000 | $ 1,002,993,000 | $ 777,360,000 | |
Weighted Average Note Rate (as a percent) | 3.94% | 3.94% | 4.78% | |
Weighted average note rate including certain fees and costs (as a percent) | 4.39% | 4.39% | 5.07% | |
Unamortized deferred finance costs | $ 2,100,000 | $ 2,100,000 | $ 2,400,000 | |
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreements used to finance leasehold and capital expenditure improvements at corporate office (as a percent) | 71.00% | 71.00% | 70.00% | |
Structured Business | Senior mortgage loans | ||||
Debt Obligations | ||||
Weighted Average Note Rate (as a percent) | 4.08% | 4.08% | ||
Structured Business | CLOs | ||||
Debt Obligations | ||||
Debt Instrument, Collateral Amount | $ 234,900,000 | $ 234,900,000 | $ 114,200,000 | |
Structured Business | B Piece bonds | ||||
Debt Obligations | ||||
Debt Instrument, Collateral Amount | 68,700,000 | 68,700,000 | 76,400,000 | |
Structured Business | SFR bonds | ||||
Debt Obligations | ||||
Collateral Carrying Value | 20,000,000 | 20,000,000 | ||
Structured Business | Multifamily senior mortgage loans | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 75,000,000 | $ 75,000,000 | ||
Structured Business | Minimum | LIBOR | Build-to-rent single family rental properties | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 210.00% | |||
Structured Business | Maximum | LIBOR | Build-to-rent single family rental properties | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 250.00% | |||
Structured Business | $400 million joint repurchase facility | ||||
Debt Obligations | ||||
UPB | 225,051,000 | $ 225,051,000 | 336,428,000 | |
Debt Carrying Value | 224,658,000 | 224,658,000 | 334,696,000 | |
Collateral Carrying Value | $ 339,378,000 | $ 339,378,000 | $ 467,680,000 | |
Weighted Average Note Rate (as a percent) | 4.06% | 4.06% | 4.75% | |
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | ||
Structured Business | $300 million repurchase facility | ||||
Debt Obligations | ||||
UPB | 218,891,000 | 218,891,000 | ||
Debt Carrying Value | 218,418,000 | 218,418,000 | ||
Collateral Carrying Value | $ 291,292,000 | $ 291,292,000 | ||
Weighted Average Note Rate (as a percent) | 3.76% | 3.76% | ||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | ||
Advance rate (as a percent) | 80.00% | |||
Structured Business | $200 million repurchase facility | ||||
Debt Obligations | ||||
UPB | 40,612,000 | $ 40,612,000 | ||
Debt Carrying Value | 40,530,000 | 40,530,000 | ||
Collateral Carrying Value | $ 48,086,000 | $ 48,086,000 | ||
Weighted Average Note Rate (as a percent) | 4.22% | 4.22% | ||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |
Structured Business | $128.7 million loan specific credit facilities | ||||
Debt Obligations | ||||
UPB | 128,677,000 | 128,677,000 | 85,044,000 | |
Debt Carrying Value | 128,274,000 | 128,274,000 | 84,701,000 | |
Collateral Carrying Value | $ 184,116,000 | $ 184,116,000 | $ 124,844,000 | |
Weighted Average Note Rate (as a percent) | 4.13% | 4.13% | 4.93% | |
Maximum borrowing capacity | $ 128,700,000 | $ 128,700,000 | $ 128,700,000 | |
Structured Business | $100 million repurchase facility | ||||
Debt Obligations | ||||
UPB | 45,962,000 | 45,962,000 | 71,017,000 | |
Debt Carrying Value | 45,843,000 | 45,843,000 | 70,837,000 | |
Collateral Carrying Value | $ 63,800,000 | $ 63,800,000 | $ 98,597,000 | |
Weighted Average Note Rate (as a percent) | 3.56% | 3.56% | 4.31% | |
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |
Extension of maturity date (in years) | 2020 years | |||
Structured Business | $100 million repurchase facility | Minimum | LIBOR | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 175.00% | |||
Structured Business | $100 million repurchase facility | Maximum | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 80.00% | |||
Structured Business | $100 million repurchase facility | Maximum | LIBOR | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 195.00% | |||
Structured Business | $75 million credit facility - One | ||||
Debt Obligations | ||||
UPB | 4,690,000 | $ 4,690,000 | 10,237,000 | |
Debt Carrying Value | 4,570,000 | 4,570,000 | 10,237,000 | |
Collateral Carrying Value | $ 7,000,000 | $ 7,000,000 | $ 16,889,000 | |
Weighted Average Note Rate (as a percent) | 3.56% | 3.56% | 4.31% | |
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | |
Structured Business | $75 million credit facility - One | LIBOR | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 175 | 175 | ||
Structured Business | $75 million credit facility - One | Healthcare Related Loans | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 25,000,000 | $ 25,000,000 | ||
Advance rate (as a percent) | 75.00% | |||
Structured Business | $75 million credit facility - One | Multifamily senior mortgage loans | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 80.00% | |||
Structured Business | $75 million credit facility - One | Minimum | Healthcare Related Loans | LIBOR | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 212.50% | |||
Structured Business | $75 million credit facility - One | Maximum | Healthcare Related Loans | LIBOR | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 250.00% | |||
Structured Business | $75 million credit facility - two | ||||
Debt Obligations | ||||
UPB | 0 | $ 0 | 0 | |
Debt Carrying Value | 0 | 0 | 0 | |
Collateral Carrying Value | $ 0 | $ 0 | $ 0 | |
Weighted Average Note Rate (as a percent) | 0.00% | 0.00% | 0.00% | |
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | |
Structured Business | $75 million credit facility - two | Debt Instrument Variable Rate LIBOR Member | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 175.00% | |||
Structured Business | $75 million credit facility - two | Minimum | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 70.00% | |||
Structured Business | $75 million credit facility - two | Maximum | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 80.00% | |||
Structured Business | $50 million credit facility - one | ||||
Debt Obligations | ||||
UPB | 14,948,000 | $ 14,948,000 | 14,160,000 | |
Debt Carrying Value | 14,933,000 | 14,933,000 | 14,159,000 | |
Collateral Carrying Value | $ 17,650,000 | $ 17,650,000 | $ 17,700,000 | |
Weighted Average Note Rate (as a percent) | 3.81% | 3.81% | 4.57% | |
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |
Advance rate (as a percent) | 80.00% | |||
Structured Business | $50 million credit facility - one | Debt Instrument Variable Rate LIBOR Member | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 200.00% | |||
Structured Business | $50 million credit facility - two | ||||
Debt Obligations | ||||
UPB | 12,349,000 | $ 12,349,000 | ||
Debt Carrying Value | 12,191,000 | 12,191,000 | ||
Collateral Carrying Value | $ 16,499,000 | $ 16,499,000 | ||
Weighted Average Note Rate (as a percent) | 4.32% | 4.32% | ||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | 50,000,000 | |
Advance rate (as a percent) | 80.00% | |||
Extension of maturity date (in years) | 1 year | |||
Structured Business | $50 million credit facility - two | Minimum | Debt Instrument Variable Rate LIBOR Member | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 250.00% | |||
Structured Business | $50 million credit facility - two | Maximum | Debt Instrument Variable Rate LIBOR Member | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 325.00% | |||
Structured Business | $50 million credit facility - three | ||||
Debt Obligations | ||||
UPB | 5,280,000 | $ 5,280,000 | ||
Debt Carrying Value | 5,254,000 | 5,254,000 | ||
Collateral Carrying Value | $ 6,600,000 | $ 6,600,000 | ||
Weighted Average Note Rate (as a percent) | 4.32% | 4.32% | ||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | 50,000,000 | |
Structured Business | $25 million credit facility | ||||
Debt Obligations | ||||
UPB | 19,936,000 | 19,936,000 | ||
Debt Carrying Value | 19,651,000 | 19,651,000 | ||
Collateral Carrying Value | $ 28,572,000 | $ 28,572,000 | ||
Weighted Average Note Rate (as a percent) | 4.07% | 4.07% | ||
Maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | 25,000,000 | |
Structured Business | $25 million credit facility | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 225.00% | |||
Structured Business | $25 million working capital facility | ||||
Debt Obligations | ||||
UPB | 0 | $ 0 | 0 | |
Debt Carrying Value | 0 | 0 | 0 | |
Collateral Carrying Value | $ 0 | $ 0 | $ 0 | |
Weighted Average Note Rate (as a percent) | 0.00% | 0.00% | 0.00% | |
Maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |
Structured Business | $20.0 million credit facility | ||||
Debt Obligations | ||||
UPB | 20,000,000 | |||
Debt Carrying Value | 19,912,000 | |||
Collateral Carrying Value | $ 41,650,000 | |||
Weighted Average Note Rate (as a percent) | 5.07% | |||
Maximum borrowing capacity | 20,000,000 | 20,000,000 | $ 20,000,000 | |
Structured Business | $20.0 million credit facility | Healthcare Related Loans | ||||
Debt Obligations | ||||
Maximum borrowing capacity | $ 20,000,000 | 20,000,000 | ||
Structured Business | $20.0 million credit facility | Healthcare Related Loans | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 250.00% | |||
Structured Business | $8 million credit facility | ||||
Debt Obligations | ||||
UPB | 8,000,000 | |||
Debt Carrying Value | 7,946,000 | |||
Collateral Carrying Value | $ 10,000,000 | |||
Weighted Average Note Rate (as a percent) | 5.07% | |||
Maximum borrowing capacity | $ 8,000,000 | 8,000,000 | $ 8,000,000 | |
Structured Business | $8 million credit facility | Healthcare Related Loans | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 250.00% | |||
Maximum borrowing capacity | $ 8,000,000 | |||
Structured Business | $3.3 million master security agreement | ||||
Debt Obligations | ||||
UPB | 3,267,000 | 3,267,000 | 2,846,000 | |
Debt Carrying Value | $ 3,267,000 | $ 3,267,000 | $ 2,846,000 | |
Weighted Average Note Rate (as a percent) | 4.08% | 4.08% | 4.06% | |
Maximum borrowing capacity | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | |
Structured Business | Repurchase facility - securities | ||||
Debt Obligations | ||||
UPB | 217,105,000 | 217,105,000 | 118,112,000 | |
Debt Carrying Value | $ 217,105,000 | $ 217,105,000 | $ 118,112,000 | |
Weighted Average Note Rate (as a percent) | 3.90% | 3.90% | 5.07% | |
Structured Business | $200 million repurchase facility | ||||
Debt Obligations | ||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||
Extension of maturity date (in years) | 6 months | |||
Structured Business | $200 million repurchase facility | LIBOR | ||||
Debt Obligations | ||||
Variable rate, spread (as a percent) | 240.00% | |||
Structured Business | $25 million credit facility | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 25,000,000 | $ 25,000,000 | ||
Extension of maturity date (in years) | 1 year | |||
Structured Business | $25 million unsecured working capital line of credit | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 25,000,000 | $ 25,000,000 | ||
Structured Business | $25 million unsecured working capital line of credit | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 225.00% | |||
Structured Business | Joint Repurchase Facility | ||||
Debt Obligations | ||||
Advance rate (as a percent) | 80.00% | |||
Structured Business | Loan specific credit facilities | ||||
Debt Obligations | ||||
Maximum borrowing capacity | 128,700,000 | $ 128,700,000 | ||
Structured Business | Credit facility to finance single-family rental properties | ||||
Debt Obligations | ||||
Maximum advance rate, threshold percentage of UPB (as a percent) | 75.00% | |||
Maximum advance rate, threshold percentage of appraised value of collateral (as a percent) | 50.00% | |||
Maximum advance rate, threshold percentage of projected cost of construction (as a percent) | 55.00% | |||
Agency Business | ||||
Debt Obligations | ||||
UPB | 744,378,000 | $ 744,378,000 | $ 472,291,000 | |
Debt Carrying Value | 743,594,000 | 743,594,000 | 472,181,000 | |
Collateral Carrying Value | $ 744,378,000 | $ 744,378,000 | $ 472,291,000 | |
Weighted Average Note Rate (as a percent) | 3.03% | 3.03% | 3.74% | |
Unamortized deferred finance costs | $ 200,000 | $ 200,000 | $ 100,000 | |
Agency Business | Fannie Mae | ||||
Debt Obligations | ||||
Letters of Credit Outstanding, Amount | 45,000,000 | 45,000,000 | ||
Agency Business | Freddie Mac | ||||
Debt Obligations | ||||
Letters of Credit Outstanding, Amount | 5,000,000 | 5,000,000 | ||
Committed amount | 5,000,000 | |||
Agency Business | $100 million repurchase facility | ||||
Debt Obligations | ||||
Maximum borrowing capacity | $ 100,000,000 | 100,000,000 | ||
Agency Business | $100 million repurchase facility | Minimum | ||||
Debt Obligations | ||||
Committed amount | 150,000,000 | |||
Agency Business | $100 million repurchase facility | Maximum | ||||
Debt Obligations | ||||
Committed amount | $ 250,000,000 | |||
Agency Business | $50 million credit facility - one | ||||
Debt Obligations | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.875% | 2.875% | ||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | ||
Agency Business | $750 million ASAP agreement | ||||
Debt Obligations | ||||
UPB | 148,725,000 | 148,725,000 | 104,619,000 | |
Debt Carrying Value | 148,725,000 | 148,725,000 | 104,619,000 | |
Collateral Carrying Value | $ 148,725,000 | $ 148,725,000 | $ 104,619,000 | |
Weighted Average Note Rate (as a percent) | 2.81% | 2.81% | 3.55% | |
Debt Instrument, Reduced Basis Spread on Variable Rate | 105.00% | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | 0.35% | ||
Maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |
Debt Instrument, Collateral Amount | 750,000,000 | 750,000,000 | ||
Agency Business | $500 million repurchase facility | ||||
Debt Obligations | ||||
UPB | 187,742,000 | 187,742,000 | 130,917,000 | |
Debt Carrying Value | 187,698,000 | 187,698,000 | 130,906,000 | |
Collateral Carrying Value | $ 187,742,000 | $ 187,742,000 | $ 130,917,000 | |
Weighted Average Note Rate (as a percent) | 2.91% | 2.91% | 3.78% | |
Maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |
Agency Business | $500 million repurchase facility | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 115.00% | |||
Maximum borrowing capacity | 500,000,000 | $ 500,000,000 | ||
Agency Business | $300 million joint repurchase facility | ||||
Debt Obligations | ||||
UPB | 300,446,000 | 300,446,000 | ||
Debt Carrying Value | 299,824,000 | 299,824,000 | ||
Collateral Carrying Value | $ 300,446,000 | $ 300,446,000 | ||
Weighted Average Note Rate (as a percent) | 3.26% | 3.26% | ||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |
Agency Business | $250 million credit facility | ||||
Debt Obligations | ||||
UPB | 26,651,000 | |||
Debt Carrying Value | 26,651,000 | |||
Collateral Carrying Value | $ 26,651,000 | |||
Weighted Average Note Rate (as a percent) | 3.75% | |||
Maximum borrowing capacity | 250,000,000 | 250,000,000 | $ 250,000,000 | |
Agency Business | $150 million credit facility - one | ||||
Debt Obligations | ||||
UPB | 89,673,000 | 89,673,000 | 113,685,000 | |
Debt Carrying Value | 89,657,000 | 89,657,000 | 113,666,000 | |
Collateral Carrying Value | $ 89,673,000 | $ 89,673,000 | $ 113,685,000 | |
Weighted Average Note Rate (as a percent) | 2.91% | 2.91% | 3.80% | |
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | |
Agency Business | $150 million credit facility - one | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 115.00% | |||
Maximum borrowing capacity | 150,000,000 | $ 150,000,000 | ||
Agency Business | $150 million credit facility - two | ||||
Debt Obligations | ||||
UPB | 17,792,000 | 17,792,000 | 96,419,000 | |
Debt Carrying Value | 17,690,000 | 17,690,000 | 96,339,000 | |
Collateral Carrying Value | $ 17,792,000 | $ 17,792,000 | $ 96,419,000 | |
Weighted Average Note Rate (as a percent) | 2.91% | 2.91% | 3.80% | |
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | |
Agency Business | $150 million credit facility - two | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 115.00% | |||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | ||
Agency Business | $100 million credit facility | LIBOR | ||||
Debt Obligations | ||||
Debt Instrument, Reduced Basis Spread on Variable Rate | 115.00% |
Debt Obligations, Collateralize
Debt Obligations, Collateralized Loan Obligations (Details) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2019USD ($)trancheitem | Jun. 30, 2019USD ($)trancheitem | Jun. 30, 2018USD ($)trancheitem | Dec. 31, 2017USD ($)trancheitem | Sep. 30, 2017USD ($) | Aug. 31, 2017USD ($)trancheitem | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Obligations | |||||||||
Proceeds from issuance of collateralized loan obligations | $ 1,067,193,000 | $ 441,000,000 | $ 918,274,000 | ||||||
Debt, Carrying Value | $ 2,130,121,000 | $ 1,593,548,000 | |||||||
Weighted average note rate (as a percent) | 3.54% | 4.35% | |||||||
Payoffs and paydowns of collateralized loan obligations | $ 529,250,000 | $ 267,750,000 | 219,000,000 | ||||||
CLOs | |||||||||
Debt Obligations | |||||||||
Debt, Face Value | 2,147,467,000 | 1,609,524,000 | |||||||
Debt, Carrying Value | $ 2,130,121,000 | $ 1,593,548,000 | |||||||
Weighted average note rate (as a percent) | 3.23% | 4.22% | |||||||
Collateral Loans, Unpaid Principal | $ 2,497,578,000 | $ 1,939,031,000 | |||||||
Collateral Loans, Carrying Value | 2,487,391,000 | 1,932,693,000 | |||||||
Cash, Restricted Cash | 118,411,000 | 123,503,000 | |||||||
Deferred financing fees | $ 17,300,000 | $ 16,000,000 | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 3.63% | 4.73% | |||||||
Collateral at risk | $ 0 | $ 0 | |||||||
CLO XII | |||||||||
Debt Obligations | |||||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||||
Proceeds from issuance of collateralized loan obligations | $ 124,100,000 | ||||||||
Debt, Face Value | 635,000,000 | 534,193,000 | |||||||
Debt, Carrying Value | $ 585,800,000 | $ 529,448,000 | |||||||
Weighted average note rate (as a percent) | 3.30% | ||||||||
Collateral Loans, Unpaid Principal | $ 596,366,000 | ||||||||
Collateral Loans, Carrying Value | 593,652,000 | ||||||||
Cash, Restricted Cash | 17,800,000 | ||||||||
Replacement period | 3 years | ||||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||||
Notional amount of residual interest retained | $ 100,800,000 | ||||||||
Value of portfolio loans as collateral | $ 510,900,000 | ||||||||
Leverage (as a percent) | 84.00% | ||||||||
CLO XII | Investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 534,200,000 | ||||||||
CLO XII | Below investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 51,600,000 | ||||||||
CLO XII | Secured Debt | One-month LIBOR | |||||||||
Debt Obligations | |||||||||
Weighted average note rate (as a percent) | 1.50% | ||||||||
CLO XI | |||||||||
Debt Obligations | |||||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||||
Debt, Face Value | $ 650,000,000 | 533,000,000 | |||||||
Debt, Carrying Value | $ 602,100,000 | $ 528,690,000 | |||||||
Weighted average note rate (as a percent) | 3.25% | ||||||||
Collateral Loans, Unpaid Principal | $ 624,443,000 | ||||||||
Collateral Loans, Carrying Value | 621,508,000 | ||||||||
Cash, Restricted Cash | 15,550,000 | ||||||||
Replacement period | 3 years | ||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 129,600,000 | ||||||||
Maximum period to acquire additional loan obligations | 120 days | ||||||||
Notional amount of residual interest retained | $ 117,000,000 | ||||||||
Value of portfolio loans as collateral | $ 520,400,000 | ||||||||
Leverage (as a percent) | 82.00% | ||||||||
CLO XI | Investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 533,000,000 | ||||||||
CLO XI | Below investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 69,100,000 | ||||||||
CLO XI | Secured Debt | One-month LIBOR | |||||||||
Debt Obligations | |||||||||
Weighted average note rate (as a percent) | 1.44% | ||||||||
CLO X | |||||||||
Debt Obligations | |||||||||
Number of tranches of CLO notes issued | tranche | 7 | ||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||||
Debt, Face Value | $ 560,000,000 | 441,000,000 | 441,000,000 | ||||||
Debt, Carrying Value | $ 494,200,000 | $ 437,391,000 | $ 436,384,000 | ||||||
Weighted average note rate (as a percent) | 3.26% | 4.01% | |||||||
Collateral Loans, Unpaid Principal | $ 509,887,000 | $ 539,007,000 | |||||||
Collateral Loans, Carrying Value | 507,854,000 | 536,869,000 | |||||||
Cash, Restricted Cash | 37,287,000 | 20,993,000 | |||||||
Replacement period | 4 years | ||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 58,100,000 | ||||||||
Maximum period to acquire additional loan obligations | 120 days | ||||||||
Notional amount of secured floating rate notes | $ 119,000,000 | ||||||||
Value of portfolio loans as collateral | $ 501,900,000 | ||||||||
Leverage (as a percent) | 79.00% | ||||||||
CLO X | Investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 441,000,000 | ||||||||
CLO X | Below investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | 53,200,000 | ||||||||
Notional amount of secured floating rate notes | $ 53,200,000 | ||||||||
CLO X | Secured Debt | One-month LIBOR | |||||||||
Debt Obligations | |||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.45% | ||||||||
CLO IX | |||||||||
Debt Obligations | |||||||||
Number of tranches of CLO notes issued | tranche | 5 | ||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||||
Debt, Face Value | $ 480,000,000 | 356,400,000 | 356,400,000 | 480,000,000 | |||||
Debt, Carrying Value | $ 388,200,000 | $ 353,473,000 | $ 352,244,000 | 388,200,000 | |||||
Weighted average note rate (as a percent) | 3.17% | 3.92% | |||||||
Collateral Loans, Unpaid Principal | $ 407,696,000 | $ 440,906,000 | |||||||
Collateral Loans, Carrying Value | 406,463,000 | 439,691,000 | |||||||
Cash, Restricted Cash | 47,230,000 | 20,094,000 | |||||||
Replacement period | 3 years | ||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 92,700,000 | ||||||||
Maximum period to acquire additional loan obligations | 120 days | ||||||||
Notional amount of secured floating rate notes | $ 123,600,000 | 123,600,000 | |||||||
Value of portfolio loans as collateral | $ 387,300,000 | $ 387,300,000 | |||||||
Leverage (as a percent) | 74.00% | 74.00% | |||||||
CLO IX | Investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 356,400,000 | $ 356,400,000 | |||||||
CLO IX | Below investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | 31,800,000 | 31,800,000 | |||||||
Notional amount of secured floating rate notes | $ 31,800,000 | $ 31,800,000 | |||||||
CLO IX | Secured Debt | One-month LIBOR | |||||||||
Debt Obligations | |||||||||
Weighted average note rate (as a percent) | 1.36% | 1.36% | |||||||
CLO VIII | |||||||||
Debt Obligations | |||||||||
Number of tranches of CLO notes issued | tranche | 6 | ||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||||
Debt, Face Value | $ 365,000,000 | 282,874,000 | 282,874,000 | ||||||
Debt, Carrying Value | $ 312,100,000 | $ 281,119,000 | $ 279,857,000 | ||||||
Weighted average note rate (as a percent) | 3.12% | 3.87% | |||||||
Collateral Loans, Unpaid Principal | $ 359,186,000 | $ 354,713,000 | |||||||
Collateral Loans, Carrying Value | 357,914,000 | 353,574,000 | |||||||
Cash, Restricted Cash | 544,000 | 10,287,000 | |||||||
Replacement period | 3 years | ||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 71,300,000 | ||||||||
Maximum period to acquire additional loan obligations | 120 days | ||||||||
Notional amount of secured floating rate notes | $ 82,100,000 | ||||||||
Value of portfolio loans as collateral | $ 293,700,000 | ||||||||
Leverage (as a percent) | 78.00% | ||||||||
CLO VIII | Investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 282,900,000 | ||||||||
CLO VIII | Below investment grade | |||||||||
Debt Obligations | |||||||||
Debt, Carrying Value | $ 29,200,000 | ||||||||
CLO VIII | Secured Debt | One-month LIBOR | |||||||||
Debt Obligations | |||||||||
Weighted average note rate (as a percent) | 1.31% | ||||||||
CLO VII | |||||||||
Debt Obligations | |||||||||
Debt, Face Value | 279,000,000 | ||||||||
Debt, Carrying Value | $ 276,527,000 | ||||||||
Weighted average note rate (as a percent) | 4.56% | ||||||||
Collateral Loans, Unpaid Principal | $ 325,057,000 | ||||||||
Collateral Loans, Carrying Value | 324,195,000 | ||||||||
Cash, Restricted Cash | 30,725,000 | ||||||||
Debt Instrument Redemption Value | $ 279,000,000 | ||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 58,600,000 | 25,100,000 | |||||||
Deferred fees expensed as interest expense | $ 1,400,000 | ||||||||
CLO VI | |||||||||
Debt Obligations | |||||||||
Debt, Face Value | 250,250,000 | ||||||||
Debt, Carrying Value | $ 248,536,000 | ||||||||
Weighted average note rate (as a percent) | 5.05% | ||||||||
Collateral Loans, Unpaid Principal | $ 279,348,000 | ||||||||
Collateral Loans, Carrying Value | 278,364,000 | ||||||||
Cash, Restricted Cash | $ 41,404,000 | ||||||||
Debt Instrument Redemption Value | $ 250,300,000 | ||||||||
Deferred fees expensed as interest expense | $ 1,200,000 | ||||||||
CLO V | |||||||||
Debt Obligations | |||||||||
Debt Instrument Redemption Value | $ 267,800,000 | ||||||||
Deferred fees expensed as interest expense | $ 1,300,000 | ||||||||
CLO IV | |||||||||
Debt Obligations | |||||||||
Debt Instrument Redemption Value | $ 219,000,000 | ||||||||
Deferred fees expensed as interest expense | $ 1,100,000 |
Debt Obligations, Luxembourg De
Debt Obligations, Luxembourg Debt Fund (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Obligations | |||
Debt, Carrying Value | $ 2,130,121 | $ 1,593,548 | |
Weighted Average Note Rate (as a percent) | 3.54% | 4.35% | |
Luxembourg debt fund | |||
Debt Obligations | |||
Value of portfolio loans as collateral | $ 100,000 | ||
Deferred financing fees | $ 1,400 | $ 1,800 | |
Weighted average note rate including certain fees and costs (as a percent) | 7.17% | 7.49% | |
Collateral at risk | $ 0 | $ 0 | |
One-month LIBOR | Luxembourg debt fund | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 4.15% | ||
Debt Fund | |||
Debt Obligations | |||
Equity formed | $ 100,000 | ||
Equity interest retained | $ 30,000 | ||
Reinvested period allowed | 3 years | ||
Debt Fund | Luxembourg debt fund | |||
Debt Obligations | |||
Debt, Face Value | $ 70,000 | 70,000 | 70,000 |
Debt, Carrying Value | $ 68,629 | $ 68,183 | |
Weighted Average Note Rate (as a percent) | 5.99% | 6.75% | |
Collateral Loans, UPB | $ 70,755 | $ 69,186 | |
Collateral Loans, Carrying Value | 68,629 | 68,924 | |
Cash, Restricted Cash | $ 29,245 | $ 30,814 |
Debt Obligations, Senior Unsecu
Debt Obligations, Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Oct. 31, 2019 | Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Obligations | ||||||
Senior notes carrying value | $ 319,799 | $ 122,484 | ||||
Senior Unsecured Notes | ||||||
Debt Obligations | ||||||
Principal amount | 325,000 | $ 125,000 | ||||
6.50% Convertible Notes | ||||||
Debt Obligations | ||||||
Interest rate (as a percent) | 6.50% | |||||
5.625% Notes | ||||||
Debt Obligations | ||||||
Principal amount | $ 100,000 | 125,000 | ||||
Interest rate (as a percent) | 5.625% | |||||
Proceeds from issued debt | $ 25,000 | $ 122,300 | ||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||||
Senior notes carrying value | 123,100 | $ 122,500 | ||||
Deferred financing fees | $ 1,900 | $ 2,500 | ||||
Weighted average note rate including certain fees and costs (as a percent) | 6.08% | 6.08% | ||||
5.75% Notes | ||||||
Debt Obligations | ||||||
Principal amount | $ 90,000 | |||||
Interest rate (as a percent) | 5.75% | |||||
Proceeds from issued debt | $ 88,200 | |||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||||
Senior notes carrying value | $ 88,400 | |||||
Deferred financing fees | $ 1,600 | |||||
Weighted average note rate including certain fees and costs (as a percent) | 6.18% | |||||
7.375% Convertible Notes | ||||||
Debt Obligations | ||||||
Interest rate (as a percent) | 7.375% | |||||
Debt instrument redemption value | $ 97,900 | |||||
4.75% Notes | ||||||
Debt Obligations | ||||||
Principal amount | $ 110,000 | |||||
Interest rate (as a percent) | 4.75% | |||||
Proceeds from issued debt | $ 108,200 | |||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||||
Senior notes carrying value | $ 108,400 | |||||
Deferred financing fees | $ 1,600 | |||||
Weighted average note rate including certain fees and costs (as a percent) | 5.23% |
Debt Obligations, Convertible S
Debt Obligations, Convertible Senior Unsecured Notes (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2019USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2017USD ($) | |
Debt Obligations | ||||||||
Cash paid for the exchange of convertible notes | $ 231,940 | $ 228,287 | ||||||
(Loss) gain on extinguishment of debt | $ (7,311) | $ (128) | $ (82) | $ (4,960) | (7,439) | (5,041) | $ 7,116 | |
Total | 4,678,863 | 4,678,863 | ||||||
Convertible Senior Unsecured Notes | ||||||||
Debt Obligations | ||||||||
Principal amount | 300,914 | 270,057 | $ 300,914 | $ 270,057 | ||||
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed | 100.00% | |||||||
Maturity period (in years) | 2 years 8 months 1 day | 2 years 5 months 27 days | ||||||
Unamortized Debt Discount | 9,235 | 8,229 | $ 9,235 | $ 8,229 | ||||
Unamortized Deferred Financing Fees | 7,527 | 7,060 | 7,527 | 7,060 | ||||
Total | $ 284,152 | $ 254,768 | 284,152 | 254,768 | ||||
Net Carrying Value, Equity Component | 9,962 | 9,436 | ||||||
Interest expense | 28,300 | 21,100 | ||||||
Interest expense related to cash coupon | 13,500 | 13,400 | ||||||
Debt discount | 7,900 | 2,900 | ||||||
Deferred fees expensed as interest expense | $ 6,800 | $ 4,800 | ||||||
Cost of the notes (as a percent) | 6.80% | 7.45% | 6.80% | 7.45% | ||||
5.375% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 1,100 | $ 1,100 | ||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | 5.375% | ||||
Debt instrument conversion rate | 5.375% | |||||||
5.375% Convertible Notes | First Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 107.7122 | |||||||
Conversion price per share of common stock | $ / shares | $ 9.28 | $ 9.28 | ||||||
5.375% Convertible Notes | Second Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 114.6568 | |||||||
Conversion price per share of common stock | $ / shares | $ 8.72 | $ 8.72 | ||||||
6.50% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Interest rate (as a percent) | 6.50% | 6.50% | ||||||
Cash paid for the exchange of convertible notes | $ 99,800 | |||||||
5.25% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | ||||
Cash paid for the exchange of convertible notes | $ 228,700 | $ 127,600 | ||||||
Number of private placements | item | 2 | |||||||
4.75% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 264,000 | |||||||
Interest rate (as a percent) | 4.75% | |||||||
Proceeds received, net of estimated issuance costs | 256,500 | |||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 56.1695 | |||||||
Conversion price per share of common stock | $ / shares | $ 17.80 | |||||||
4.75% Convertible Notes | Over-Allotment Option | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 34,000 | |||||||
4.75% and 5.25% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Cash paid for the exchange of convertible notes | $ 233,100 | |||||||
Common stock exchanged (in shares) | shares | 4,478,315 | |||||||
(Loss) gain on extinguishment of debt | $ 7,300 | |||||||
Inducement charge | 1,100 | |||||||
5.25% and 5.375% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Cash paid for the exchange of convertible notes | $ 219,800 | |||||||
Common stock exchanged (in shares) | shares | 6,820,196 | |||||||
(Loss) gain on extinguishment of debt | $ 5,000 | |||||||
Inducement charge | 1,100 | |||||||
Junior subordinated notes | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 154,336 | $ 154,336 | 154,336 | 154,336 | ||||
(Loss) gain on extinguishment of debt | $ 7,100 | |||||||
Deferred fees expensed as interest expense | 2,000 | $ 2,100 | ||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 11,500 | $ 11,500 | ||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||
Debt instrument conversion rate | 5.25% | |||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | First Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 86.9943 | |||||||
Conversion price per share of common stock | $ / shares | $ 11.50 | $ 11.50 | ||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | Second Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 89.2795 | |||||||
Conversion price per share of common stock | $ / shares | $ 11.20 | $ 11.20 | ||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | ||||||||
Debt Obligations | ||||||||
Principal amount | $ 24,300 | $ 24,300 | ||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||
Debt instrument conversion rate | 5.25% | |||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | First Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 77.8331 | |||||||
Conversion price per share of common stock | $ / shares | $ 12.85 | $ 12.85 | ||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | Second Offering | ||||||||
Debt Obligations | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 79.8777 | |||||||
Conversion price per share of common stock | $ / shares | $ 12.52 | $ 12.52 |
Debt Obligations, Junior Subord
Debt Obligations, Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Obligations | |||
Debt carrying value | $ 140,949 | $ 140,259 | |
Weighted average note rate (as a percent) | 3.54% | 4.35% | |
Junior subordinated notes | |||
Debt Obligations | |||
Junior Subordinated, Face Value | $ 20,900 | ||
Debt carrying value purchased | $ 19,800 | ||
Debt carrying value | $ 140,900 | $ 140,300 | |
Deferred amount Due at maturity | 11,400 | 12,000 | |
Deferred fees expensed as interest expense | $ 2,000 | $ 2,100 | |
Weighted average note rate (as a percent) | 4.75% | 5.66% | |
Weighted average note rate including certain fees and costs (as a percent) | 4.83% | 5.75% |
Debt Obligations, Debt Covenant
Debt Obligations, Debt Covenants (Details) - USD ($) | 1 Months Ended | |||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Jun. 30, 2019 | |
CLO VI | ||||||||
Debt Covenants | ||||||||
Debt Instrument Redemption Value | $ 250,300,000 | |||||||
CLO VII | ||||||||
Debt Covenants | ||||||||
Debt Instrument Redemption Value | $ 279,000,000 | |||||||
CLO VIII | ||||||||
Debt Covenants | ||||||||
Current overcollateralization ratio (as a percent) | 129.03% | 129.03% | 129.03% | 129.03% | 129.03% | |||
Limit overcollateralization ratio (as a percent) | 128.03% | |||||||
Current interest coverage ratio (as a percent) | 285.83% | |||||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||||
CLO IX | ||||||||
Debt Covenants | ||||||||
Current overcollateralization ratio (as a percent) | 134.68% | 134.68% | 134.68% | 134.69% | 134.68% | |||
Limit overcollateralization ratio (as a percent) | 133.68% | |||||||
Current interest coverage ratio (as a percent) | 250.76% | |||||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||||
CLO X | ||||||||
Debt Covenants | ||||||||
Current overcollateralization ratio (as a percent) | 126.98% | 126.98% | 126.98% | 126.98% | 126.98% | |||
Limit overcollateralization ratio (as a percent) | 125.98% | |||||||
Current interest coverage ratio (as a percent) | 250.52% | |||||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||||
CLO XI | ||||||||
Debt Covenants | ||||||||
Current overcollateralization ratio (as a percent) | 121.95% | 121.95% | 121.95% | |||||
Limit overcollateralization ratio (as a percent) | 120.95% | |||||||
Current interest coverage ratio (as a percent) | 229.31% | |||||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||||
CLO XII | ||||||||
Debt Covenants | ||||||||
Current overcollateralization ratio (as a percent) | 118.87% | |||||||
Limit overcollateralization ratio (as a percent) | 117.87% | |||||||
Current interest coverage ratio (as a percent) | 187.58% | |||||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||||
Junior subordinated notes | ||||||||
Debt Covenants | ||||||||
Amount payable on default of senior debt | $ 0 |
Allowance for Loss-Sharing Ob_3
Allowance for Loss-Sharing Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Roll forward of loss contingency accrual | |||
Charge-offs, net | $ (797) | $ (56) | $ (1,638) |
Fannie Mae | |||
Roll forward of loss contingency accrual | |||
Loss-sharing obligations (as a percent) | 0.23% | 0.25% | |
Loss-Sharing Obligation | |||
Roll forward of loss contingency accrual | |||
Outstanding advances under the Fannie Mae DUS program | $ 500 | $ 100 | |
Loss-Sharing Obligation | Fannie Mae | |||
Roll forward of loss contingency accrual | |||
Beginning balance of the period | 34,298 | 30,511 | |
Provisions for loss sharing | 4,879 | 7,126 | |
Provisions reversal for loan repayments | (3,732) | (3,283) | |
Charge-offs, net | (797) | (56) | |
Ending balance of the period | 34,648 | 34,298 | $ 30,511 |
Maximum quantifiable liability | $ 2,730,000 | $ 2,460,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Agency Business (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Derivative Financial Instruments | |||
Notional Value, classified in Other Assets | $ 173,532 | $ 400,661 | |
Notional Value, classified in Other Liabilities | 347,701 | 108,625 | |
Net gains (losses) from changes in the fair value of derivatives | 7,800 | 6,000 | $ 1,400 |
Income from mortgage servicing rights | 90,761 | 98,839 | $ 76,820 |
Agency Business | |||
Derivative Financial Instruments | |||
Notional Value, classified in Other Assets | 848,633 | 509,286 | |
Fair Value, classified in Other Assets | 1,435 | 6,113 | |
Fair Value, classified in Other Liabilities | $ (3,097) | $ (732) | |
Swap Futures | |||
Derivative Financial Instruments | |||
Derivative, maturity term | 3 months | ||
Swap Futures | Minimum | |||
Derivative Financial Instruments | |||
Derivative Swap Rate Period | 5 years | ||
Swap Futures | Maximum | |||
Derivative Financial Instruments | |||
Derivative Swap Rate Period | 10 years | ||
Swap Futures | Agency Business | Other Income | |||
Derivative Financial Instruments | |||
Realized gain (loss) on derivatives | $ 4,600 | ||
Unrealized gain (loss) on derivatives | 1,500 | ||
Swap Futures | Structured Business | Other Income | |||
Derivative Financial Instruments | |||
Realized gain (loss) on derivatives | (400) | ||
Unrealized gain (loss) on derivatives | $ 200 | ||
Non-Qualifying | Rate lock commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 5 | 4 | |
Notional Value, classified in Other Assets | $ 37,657 | $ 18,161 | |
Fair Value, classified in Other Assets | 1,066 | 324 | |
Fair Value, classified in Other Liabilities | $ (202) | $ (95) | |
Non-Qualifying | Forward Sale Commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 79 | 90 | |
Notional Value, classified in Other Assets | $ 483,576 | $ 491,125 | |
Fair Value, classified in Other Assets | 369 | 5,789 | |
Fair Value, classified in Other Liabilities | $ (2,895) | $ (637) | |
Non-Qualifying | Swap Futures | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 3,274 | ||
Notional Value, classified in Other Assets | $ 327,400 | ||
Non-Qualifying | Swap Futures | Structured Business | |||
Derivative Financial Instruments | |||
Count | item | 271 | ||
Notional Value, classified in Other Assets | $ 27,100 |
Fair Value, Carrying Value and
Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | ||
Loans and investments, net - Principal/Notional Amount | $ 4,279,611 | $ 3,283,342 |
Loans and investments, net | 4,189,960 | 3,200,145 |
Loans held-for-sale, net - Principal/Notional Amount | 847,126 | 472,964 |
Loans held-for-sale, net | 847,126 | 472,964 |
Securities, held-to-maturity, net - Principal/Notional Amount | 111,028 | 103,515 |
Securities held-to-maturity, net | 88,699 | 76,363 |
Derivative financial instruments - Principal/Notional Amount | 173,532 | 400,661 |
Financial liabilities: | ||
Credit and repurchase facilities, Principal/Notional Amount | 1,681,146 | 1,138,135 |
Credit and repurchase facilities, Carrying value | 1,678,288 | 1,135,627 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt fund | 68,629 | 68,183 |
Senior unsecured notes | 319,799 | 122,484 |
Convertible senior unsecured notes, net | 284,152 | 254,768 |
Junior subordinated notes | 140,949 | 140,259 |
Derivative financial instruments - Principal/Notional Amount | $ 347,701 | 108,625 |
Minimum | ||
Financial liabilities: | ||
Period of loans held for sale sold | 60 days | |
Maximum | ||
Financial liabilities: | ||
Period of loans held for sale sold | 180 days | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | $ 4,189,960 | 3,200,145 |
Loans held-for-sale, net | 861,360 | 481,664 |
Capitalized mortgage servicing rights, net | 286,420 | 273,770 |
Securities held-to-maturity, net | 88,699 | 76,363 |
Derivative financial instruments | 1,435 | 6,113 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,678,288 | 1,135,627 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt fund | 68,629 | 68,183 |
Senior unsecured notes | 319,799 | 122,484 |
Convertible senior unsecured notes, net | 284,152 | 254,768 |
Junior subordinated notes | 140,949 | 140,259 |
Derivative financial instruments | 3,097 | 732 |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 4,228,071 | 3,249,499 |
Loans held-for-sale, net | 876,975 | 489,546 |
Capitalized mortgage servicing rights, net | 328,995 | 322,463 |
Securities held-to-maturity, net | 91,738 | 79,097 |
Derivative financial instruments | 1,435 | 6,113 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,677,658 | 1,135,774 |
Collateralized loan obligations | 2,147,944 | 1,588,989 |
Debt fund | 70,138 | 70,154 |
Senior unsecured notes | 331,225 | 123,750 |
Convertible senior unsecured notes, net | 310,778 | 267,324 |
Junior subordinated notes | 97,668 | 95,873 |
Derivative financial instruments | 3,097 | 732 |
CLOs | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 2,147,467 | 1,609,524 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt Fund | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 70,000 | |
Debt fund | 70,000 | |
Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 325,000 | 125,000 |
Convertible Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 300,914 | 270,057 |
Convertible senior unsecured notes, net | 270,057 | |
Junior subordinated notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 154,336 | 154,336 |
Junior subordinated notes | $ 140,900 | $ 140,300 |
Fair Value, Measurement on Recu
Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financial assets: | |||
Allowance for impaired loan losses | $ 71,069 | $ 71,069 | |
Number of impaired loans | item | 5 | ||
Impairment loss on real estate owned | $ 1,000 | 2,000 | $ 3,200 |
Non-financial assets: | |||
Real Estate Investment Property, Net | 13,220 | 14,446 | |
Real Estate Owned | |||
Financial assets: | |||
Impairment loss on real estate owned | 1,000 | 2,000 | $ 3,200 |
Non-financial assets: | |||
Real Estate Investment Property, Net | 13,220 | 14,446 | |
Carrying Value | |||
Financial assets: | |||
Derivative financial instruments | 1,435 | 6,113 | |
Financial liabilities: | |||
Derivative financial instruments | 3,097 | 732 | |
Fair Value | |||
Financial assets: | |||
Derivative financial instruments | 1,435 | 6,113 | |
Financial liabilities: | |||
Derivative financial instruments | 3,097 | $ 732 | |
Recurring basis | Carrying Value | |||
Financial assets: | |||
Derivative financial instruments | 1,435 | ||
Financial liabilities: | |||
Derivative financial instruments | 3,097 | ||
Recurring basis | Fair Value | |||
Financial assets: | |||
Derivative financial instruments | 1,435 | ||
Financial liabilities: | |||
Derivative financial instruments | 3,097 | ||
Nonrecurring basis | Carrying Value | |||
Financial assets: | |||
Impaired loans, net | 59,657 | ||
Non-financial assets: | |||
Real Estate Investment Property, Net | 13,220 | ||
Nonrecurring basis | Fair Value | |||
Financial assets: | |||
Impaired loans, net | 59,657 | ||
Non-financial assets: | |||
Real Estate Investment Property, Net | 13,220 | ||
Level 2 | Recurring basis | |||
Financial assets: | |||
Derivative financial instruments | 369 | ||
Financial liabilities: | |||
Derivative financial instruments | 3,097 | ||
Level 3 | Recurring basis | |||
Financial assets: | |||
Derivative financial instruments | 1,066 | ||
Level 3 | Nonrecurring basis | |||
Financial assets: | |||
Impaired loans, net | 59,657 | ||
Non-financial assets: | |||
Real Estate Investment Property, Net | $ 13,220 |
Fair Value, Level 3 Inputs (Det
Fair Value, Level 3 Inputs (Details) - Level 3 $ in Thousands | Dec. 31, 2019USD ($)item |
Land | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 58,931 |
Land | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.2300 |
Land | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0300 |
Office | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 726 |
Office | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1100 |
Office | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0900 |
Office | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0250 |
Hotel | |
Quantitative information about Level 3 fair value measurements | |
Long-lived assets, fair value | $ | $ 10,208 |
Rate lock commitments | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | $ 1,066 |
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Derivative Asset, Measurement Input [Extensible List] | Discount rate |
Rate lock commitments | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments measurement input | 0.1359 |
Fair Value, Level 3 Derivative
Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative assets | |||
Balance at beginning of period | $ 324 | $ 276 | $ 2,816 |
Settlements | (83,992) | (98,791) | (79,360) |
Realized gains recorded in earnings | 83,668 | 98,515 | 76,544 |
Unrealized gains recorded in earnings | 1,066 | 324 | 276 |
Balance at end of period | $ 1,066 | $ 324 | $ 276 |
Fair Value, Components of fair
Fair Value, Components of fair value and other relevant information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value of Servicing Rights | $ 17,585 |
Total Fair Value Adjustment | 17,585 |
Rate lock commitments | |
Notional/Principal Amount | 37,657 |
Fair Value of Servicing Rights | 1,066 |
Interest Rate Movement Effect | (202) |
Total Fair Value Adjustment | 864 |
Forward Sale Commitments | |
Notional/Principal Amount | 483,576 |
Interest Rate Movement Effect | 202 |
Total Fair Value Adjustment | 202 |
Loans held-for-sale, net | |
Notional/Principal Amount | 847,126 |
Fair Value of Servicing Rights | 16,519 |
Total Fair Value Adjustment | $ 16,519 |
Fair Value, Financial Assets an
Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Loans and investments, net | $ 4,189,960 | $ 3,200,145 |
Loans held-for-sale, net | 847,126 | 472,964 |
Securities held-to-maturity, net | 88,699 | 76,363 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,678,288 | 1,135,627 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt fund | 68,629 | 68,183 |
Senior unsecured notes | 319,799 | 122,484 |
Convertible senior unsecured notes, net | 284,152 | 254,768 |
Junior subordinated notes | 140,949 | 140,259 |
Level 1 | ||
Financial liabilities: | ||
Senior unsecured notes | 331,225 | |
Level 2 | ||
Financial assets: | ||
Loans held-for-sale, net | 860,456 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 743,594 | |
Convertible senior unsecured notes, net | 310,778 | |
Level 3 | ||
Financial assets: | ||
Loans and investments, net | 4,228,071 | |
Loans held-for-sale, net | 16,519 | |
Capitalized mortgage servicing rights, net | 328,995 | |
Securities held-to-maturity, net | 91,738 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 934,064 | |
Collateralized loan obligations | 2,147,944 | |
Debt fund | 70,138 | |
Junior subordinated notes | 97,668 | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | 4,189,960 | 3,200,145 |
Loans held-for-sale, net | 861,360 | 481,664 |
Capitalized mortgage servicing rights, net | 286,420 | |
Securities held-to-maturity, net | 88,699 | 76,363 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,678,288 | 1,135,627 |
Collateralized loan obligations | 2,130,121 | 1,593,548 |
Debt fund | 68,629 | 68,183 |
Senior unsecured notes | 319,799 | 122,484 |
Convertible senior unsecured notes, net | 284,152 | 254,768 |
Junior subordinated notes | 140,949 | 140,259 |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 4,228,071 | 3,249,499 |
Loans held-for-sale, net | 876,975 | 489,546 |
Capitalized mortgage servicing rights, net | 328,995 | |
Securities held-to-maturity, net | 91,738 | 79,097 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,677,658 | 1,135,774 |
Collateralized loan obligations | 2,147,944 | 1,588,989 |
Debt fund | 70,138 | 70,154 |
Senior unsecured notes | 331,225 | 123,750 |
Convertible senior unsecured notes, net | 310,778 | 267,324 |
Junior subordinated notes | $ 97,668 | $ 95,873 |
Commitments and Contingencies,
Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Agency Business Commitments | ||||
Cash collateral | $ 210,875 | $ 180,606 | $ 139,398 | $ 29,315 |
Debt Obligations | ||||
2020 | 1,629,115 | |||
2021 | 495,601 | |||
2022 | 1,479,600 | |||
2023 | 496,049 | |||
2024 | 215,154 | |||
Thereafter | 363,344 | |||
Total | 4,678,863 | |||
Minimum Annual Operating Lease Payments | ||||
2020 | 5,301 | |||
2021 | 3,044 | |||
2022 | 2,775 | |||
2023 | 2,052 | |||
2024 | 1,459 | |||
Thereafter | 3,304 | |||
Total | 17,935 | |||
Total | ||||
2020 | 1,634,416 | |||
2021 | 498,645 | |||
2022 | 1,482,375 | |||
2023 | 498,101 | |||
2024 | 216,613 | |||
Thereafter | 366,648 | |||
Total | $ 4,696,798 | |||
Operating Lease, Weighted average remaining lease term (in years) | 5 years 2 months 12 days | |||
Operating Lease, Weighted average discount rate (as a percent) | 4.70% | |||
Operating lease expense | $ 6,100 | $ 5,400 | $ 4,700 | |
Unfunded CLO Commitments | ||||
Unfunded commitments related to structured loans and investments | 163,800 | |||
Fannie Mae | ||||
Agency Business Commitments | ||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | $ 14,400 | |||
Period of funding for collateral requirement | 48 months | |||
Forward Contracts | ||||
Agency Business Commitments | ||||
Period of contractual commitment | 60 days | |||
Minimum | ||||
Total | ||||
Remaining lease term | 8 months 12 days | |||
Maximum | ||||
Total | ||||
Remaining lease term | 7 years 2 months 12 days | |||
Restricted liquidity arrangement - loans sold under the Fannie Mae DUS program | Fannie Mae | ||||
Agency Business Commitments | ||||
Letter of credit assigned | $ 45,000 | |||
Cash collateral | 1,900 | |||
Reserve required to fund additional restricted liquidity over the next 48 months | $ 36,300 | |||
Period of additional funding for collateral requirement | 48 months | |||
Cash collateral arrangement - purchase and loss obligations under Freddie Mac's SBL Program | ||||
Agency Business Commitments | ||||
Cash collateral per securitization | $ 5,000 | |||
Outstanding letters of credit | $ 5,000 |
Commitments and Contingencies_2
Commitments and Contingencies, Litigation (Details) $ in Millions | Jun. 15, 2011USD ($)lawsuitdefendant | Jun. 30, 2013USD ($)lawsuitindividualdefendantitem | Jun. 30, 2011lawsuitindividualdefendantitem | Dec. 31, 2018USD ($) |
Arbor ESH II, LLC | ||||
Litigation | ||||
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. | $ | $ 115 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | ||||
Litigation | ||||
Number of lawsuits or complaints filed | 3 | |||
Number of lawsuits filed in United States Bankruptcy Court | 2 | |||
Number of defendants | defendant | 73 | |||
Number of defendants who are corporate and partnership entities | item | 55 | |||
Number of defendants named in a legal action who are individuals | individual | 18 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Fiduciary Duty Claims | ||||
Litigation | ||||
Number of lawsuits or complaints filed | 2 | |||
Number of defendants | defendant | 2 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits | ||||
Litigation | ||||
Number of lawsuits consolidated | 1 | |||
Number of defendants removed due to consolidation of lawsuits | defendant | 47 | |||
Number of defendants related to the entity | defendant | 0 | |||
Number of defendants remaining due to consolidation of lawsuits | defendant | 26 | |||
Number of defendants who are corporate and partnership entities | item | 16 | |||
Number of defendants named in a legal action who are individuals | individual | 10 | |||
Number of lawsuits before amendment | 100 | |||
Number of lawsuits after amendment | 17 | |||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 139 | |||
Litigation related to prior structured finance investment | ||||
Litigation | ||||
Net proceeds received | $ | $ 10.2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Variable Interest Entities | ||||
Carrying amount of loans and investments before reserves related to VIEs | $ 4,279,611 | |||
Loan loss reserves related to VIEs | 71,069 | $ 71,069 | $ 62,783 | $ 83,712 |
Assets: | ||||
Restricted cash | 210,875 | 180,606 | $ 139,398 | $ 29,315 |
Loans and investments, net | 4,189,960 | 3,200,145 | ||
Other assets | 125,788 | 86,086 | ||
Total assets | 6,239,160 | 4,612,175 | ||
Liabilities: | ||||
Collateralized loan obligations | 2,130,121 | 1,593,548 | ||
Debt fund | 68,629 | 68,183 | ||
Other liabilities | 134,299 | 118,780 | ||
Total liabilities | 4,883,133 | 3,546,609 | ||
Consolidated variable interest entities | ||||
Assets: | ||||
Total assets | 2,784,756 | 2,198,096 | ||
Liabilities: | ||||
Total liabilities | 2,209,599 | 1,665,139 | ||
CLOs and Debt Fund | ||||
Assets: | ||||
Restricted cash | 208,467 | 179,855 | ||
Loans and investments, net | 2,557,909 | 2,001,617 | ||
Other assets | 18,380 | 16,624 | ||
Total assets | 2,784,756 | 2,198,096 | ||
Liabilities: | ||||
Collateralized loan obligations | 2,130,121 | 1,593,548 | ||
Debt fund | 68,629 | 68,183 | ||
Due to related party | 6,734 | |||
Other liabilities | 4,115 | 3,408 | ||
Total liabilities | $ 2,209,599 | $ 1,665,139 | ||
Unconsolidated VIEs | ||||
Variable Interest Entities | ||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item | 30 | |||
Carrying Amount | $ 540,564 | |||
Carrying amount of loans and investments before reserves related to VIEs | 129,000 | |||
Loan loss reserves related to VIEs | 69,400 | |||
Exposure to real estate debt | 4,480,000 | |||
Unconsolidated VIEs | Loans | ||||
Variable Interest Entities | ||||
Carrying Amount | 436,169 | |||
Unconsolidated VIEs | B Piece bonds | ||||
Variable Interest Entities | ||||
Carrying Amount | 88,699 | |||
Unconsolidated VIEs | Equity investments | ||||
Variable Interest Entities | ||||
Carrying Amount | 12,961 | |||
Unconsolidated VIEs | Agency interest only strips | ||||
Variable Interest Entities | ||||
Carrying Amount | $ 2,735 |
Equity (Details)
Equity (Details) | Feb. 13, 2020$ / shares | Jan. 31, 2020$ / shares | Oct. 30, 2019$ / shares | Jul. 31, 2019$ / shares | May 01, 2019$ / shares | Feb. 13, 2019$ / shares | Feb. 01, 2019$ / shares | Feb. 29, 2020shares | Dec. 31, 2019USD ($)Vote$ / sharesshares | Jul. 31, 2019USD ($)shares | May 31, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($)shares | Dec. 31, 2018$ / shares | Dec. 31, 2019USD ($)Vote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | Feb. 07, 2020shares | Aug. 31, 2019shares |
Common stock | |||||||||||||||||||
Shares issued in connection with exchange of convertible debt notes (in shares) | 4,700,000 | ||||||||||||||||||
Proceeds from issuance of shares under public offering | $ | $ 260,383,000 | $ 156,417,000 | $ 76,225,000 | ||||||||||||||||
Payment to internalize the management team and terminate the existing management agreement using the proceed from public offering | $ | $ 25,000,000 | ||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||
OP Units redeemed by cash | $ | $ (1,674,000) | $ (6,845,000) | |||||||||||||||||
Preferred Stock | |||||||||||||||||||
Percentage of dividend paid to common stock and preferred stock shareholders represented ordinary income to our stockholders | 100.00% | 100.00% | 100.00% | ||||||||||||||||
Chief executive officer | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 63,584 | ||||||||||||||||||
Restricted common stock | Certain employees of ours | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 124,069 | 333,884 | 265,444 | 299,750 | |||||||||||||||
Total grant date fair value | $ | $ 1,500,000 | $ 2,300,000 | $ 2,400,000 | ||||||||||||||||
Restricted common stock | Chief executive officer | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 58,738 | 74,830 | |||||||||||||||||
Total grant date fair value | $ | $ 700,000 | $ 600,000 | $ 600,000 | ||||||||||||||||
Restricted common stock | Employees of the company and a related party | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Vesting percentage | 33.00% | ||||||||||||||||||
Restricted common stock | Employees of the company and a related party | March, 2018 | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Vesting percentage | 33.00% | ||||||||||||||||||
Restricted common stock | Employees of the company and a related party | Certain employees of ours | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Total grant date fair value | $ | $ 4,200,000 | ||||||||||||||||||
Restricted common stock | Employees of the company and a related party | ACM / Our "Former Manager" | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 1,379,615 | 1,033,616 | |||||||||||||||||
Total grant date fair value | $ | $ 14,800,000 | $ 9,500,000 | |||||||||||||||||
Unrecognized compensation cost | $ | $ 7,000,000 | ||||||||||||||||||
Remaining weighted-average vesting period | 1 year 9 months 18 days | ||||||||||||||||||
Restricted stock with grant date fair value (in shares) | 900,092 | ||||||||||||||||||
Restricted stock with grant date fair value | $ | $ 5,900,000 | ||||||||||||||||||
Restricted common stock | Non-employees | Selling and administrative expense | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Share-based compensation expense | $ | 700,000 | 600,000 | 1,700,000 | ||||||||||||||||
Restricted common stock | Employees | Employee compensation and benefits | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Share-based compensation expense | $ | $ 8,800,000 | $ 5,400,000 | $ 3,200,000 | ||||||||||||||||
Performance-based restricted stock | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 445,765 | ||||||||||||||||||
Net settlement on vesting of restricted stock (in shares) | 203,492 | ||||||||||||||||||
Performance-based restricted stock | Chief executive officer | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 421,348 | ||||||||||||||||||
Vesting period (in years) | 4 years | 4 years | 4 years | ||||||||||||||||
Total grant date fair value | $ | $ 1,700,000 | $ 800,000 | $ 1,000,000 | ||||||||||||||||
Restricted stock units eligible to receive annually | $ | $ 2,050,023 | ||||||||||||||||||
Performance-based restricted stock | Chief executive officer | Maximum | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Granted of restricted stock units that vest at the end of four-year performance period (in shares) | 352,427 | 381,503 | 448,980 | ||||||||||||||||
8.25% Series A preferred stock | |||||||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.25% | 8.25% | 8.25% | ||||||||||||||||
7.75% Series B preferred stock | |||||||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 7.75% | 7.75% | 7.75% | ||||||||||||||||
8.50% Series C preferred stock | |||||||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.50% | 8.50% | 8.50% | ||||||||||||||||
Common Stock | |||||||||||||||||||
Common stock | |||||||||||||||||||
Number of common stock sold (in shares) | 19,837,000 | 15,152,700 | 9,500,000 | ||||||||||||||||
Number of shares purchased | 920,000 | 870,000 | |||||||||||||||||
Value of common stock available under shelf registration statement | $ | $ 137,900,000 | $ 137,900,000 | |||||||||||||||||
Aggregate amount of debt securities, common stock, preferred stock, depositary shares and warrants filed under shelf registration statement | $ | $ 500,000,000 | $ 500,000,000 | |||||||||||||||||
Distributions | |||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.30 | $ 0.30 | $ 0.29 | $ 0.28 | $ 0.27 | 0.15 | |||||||||||||
Dividend declared in cash | $ | $ 2,500,000 | ||||||||||||||||||
Dividend declared in shares | 901,432 | ||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Net settlement on vesting of restricted stock (in shares) | (58,070) | ||||||||||||||||||
Tax Treatment for Dividends Paid | |||||||||||||||||||
Total dividends paid | $ | $ 2,500,000 | ||||||||||||||||||
Common Stock | Chief executive officer | |||||||||||||||||||
Common stock | |||||||||||||||||||
Number of shares purchased | 747,500 | ||||||||||||||||||
Common Stock | Non-management members of the Board of Directors | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 67,002 | 74,375 | |||||||||||||||||
Total grant date fair value | $ | $ 700,000 | $ 600,000 | $ 600,000 | ||||||||||||||||
Common Stock | Non-management members of the Board of Directors | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Number of fully vested shares issued | 55,244 | ||||||||||||||||||
Preferred Stock | 8.25% Series A preferred stock | |||||||||||||||||||
Distributions | |||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.515625 | 0.515625 | 0.515625 | 0.515625 | 0.515625 | ||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.25% | ||||||||||||||||||
Preferred Stock | 7.75% Series B preferred stock | |||||||||||||||||||
Distributions | |||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | 0.484375 | 0.484375 | 0.484375 | 0.484375 | $ 0.484375 | ||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 7.75% | ||||||||||||||||||
Preferred Stock | 8.50% Series C preferred stock | |||||||||||||||||||
Distributions | |||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 | ||||||||||||||
Preferred Stock | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.50% | ||||||||||||||||||
Operating Partnership Units | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||
Consideration in stock to be paid with operating partnership units (in shares) | 391,156 | 577,185 | |||||||||||||||||
Number of vote per share of Special Voting Preferred Shares | Vote | 1 | 1 | |||||||||||||||||
OP Units redeemed by cash | $ | $ 1,700,000 | $ 6,800,000 | |||||||||||||||||
Common stock, shares issued (in shares) | 258,677 | ||||||||||||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | ||||||||||||||||||
Distributions | |||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.15 | ||||||||||||||||||
Dividend declared in cash | $ | $ 600,000 | ||||||||||||||||||
Dividend declared in shares | 221,666 | ||||||||||||||||||
Tax Treatment for Dividends Paid | |||||||||||||||||||
Total dividends paid | $ | $ 600,000 | ||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||
OP units outstanding (in shares) | 20,484,094 | 20,484,094 | |||||||||||||||||
Voting power of outstanding stock (as a percent) | 15.70% | ||||||||||||||||||
5.375% Convertible Notes | |||||||||||||||||||
Common stock | |||||||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | 5.375% | |||||||||||||||
6.50% Convertible Notes | |||||||||||||||||||
Common stock | |||||||||||||||||||
Interest rate (as a percent) | 6.50% | 6.50% | |||||||||||||||||
ACM Acquisition | ACM / Our "Former Manager" | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||
Consideration in stock to be paid with operating partnership units (in shares) | 14,685,729 | ||||||||||||||||||
Number of preferred stock shares paired with each OP units | 1 | ||||||||||||||||||
ACM Acquisition | Performance-based restricted stock | Chief executive officer | |||||||||||||||||||
Deferred Compensation | |||||||||||||||||||
Granted of restricted stock units that vest at the end of four-year performance period (in shares) | 246,508 | 294,985 | 357,569 | ||||||||||||||||
Vesting period (in years) | 3 years | ||||||||||||||||||
Total grant date fair value | $ | $ 3,000,000 | $ 3,400,000 | $ 2,700,000 | ||||||||||||||||
ACM Acquisition | Operating Partnership Units | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||
Value of operating partnership units issues as consideration | $ | $ 0.01 | ||||||||||||||||||
Public offering | Common Stock | |||||||||||||||||||
Common stock | |||||||||||||||||||
Number of common stock sold (in shares) | 7,475,000 | 9,200,000 | |||||||||||||||||
Issued price per share (in dollars per share) | $ / shares | $ 13.93 | $ 12.58 | $ 13.93 | ||||||||||||||||
Proceeds from issuance of shares under public offering | $ | $ 104,000,000 | $ 115,600,000 | |||||||||||||||||
At-The-Market | Common Stock | |||||||||||||||||||
Common stock | |||||||||||||||||||
Number of common stock sold (in shares) | 3,162,000 | ||||||||||||||||||
Proceeds from issuance of shares under public offering | $ | $ 41,000,000 | ||||||||||||||||||
Number of shares available under an "At-The-Market" equity offering with JMP Securities LLC | 3,000,000 | 7,500,000 | |||||||||||||||||
Over-Allotment Option | Common Stock | |||||||||||||||||||
Common stock | |||||||||||||||||||
Number of common stock sold (in shares) | 1,200,000 | 975,000 |
Equity, Earnings Per Share ("EP
Equity, Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic | |||||||||||
Net income attributable to common stockholders | $ 35,542 | $ 33,965 | $ 28,916 | $ 22,650 | $ 37,218 | $ 27,737 | $ 17,167 | $ 26,189 | $ 121,074 | $ 108,312 | $ 65,835 |
Weighted average shares outstanding (in shares) | 92,851,327 | 70,208,165 | 57,890,574 | ||||||||
Net income per common share (in dollars per share) | $ 0.35 | $ 0.36 | $ 0.32 | $ 0.27 | $ 0.48 | $ 0.37 | $ 0.26 | $ 0.42 | $ 1.30 | $ 1.54 | $ 1.14 |
Diluted | |||||||||||
Net income attributable to noncontrolling interest | $ 7,181 | $ 7,363 | $ 6,598 | $ 5,468 | $ 9,838 | $ 7,799 | $ 5,557 | $ 8,991 | $ 26,610 | $ 32,185 | $ 24,120 |
Net income attributable to common stockholders and noncontrolling interest | $ 147,684 | $ 140,497 | $ 89,955 | ||||||||
Weighted average shares outstanding (in shares) | 92,851,327 | 70,208,165 | 57,890,574 | ||||||||
Dilutive effect of OP units (in shares) | 20,502,128 | 21,033,103 | 21,230,769 | ||||||||
Dilutive effect of restricted stock units (in shares) | 1,421,528 | 1,476,653 | 1,092,072 | ||||||||
Dilutive effect of convertible notes (in shares) | 1,417,968 | 908,861 | 97,837 | ||||||||
Dilutive effect of stock dividend (in shares) | 15,386 | ||||||||||
Weighted average shares outstanding ( in shares) | 116,192,951 | 93,642,168 | 80,311,252 | ||||||||
Net income per common share (in dollars per share) | $ 0.34 | $ 0.35 | $ 0.31 | $ 0.26 | $ 0.47 | $ 0.36 | $ 0.25 | $ 0.42 | $ 1.27 | $ 1.50 | $ 1.12 |
Chief executive officer | Performance-based restricted stock | |||||||||||
Diluted | |||||||||||
Vesting period (in years) | 4 years | 4 years | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jan. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes | |||||||||||||
Pre-tax GAAP income | $ 170,274 | $ 157,782 | $ 110,868 | ||||||||||
Repayment of debt | 50,000 | ||||||||||||
Deferred tax benefit | (150) | 12,033 | 7,399 | ||||||||||
Current tax provision (benefit): | |||||||||||||
Federal | 12,380 | 17,479 | 17,201 | ||||||||||
State | 2,505 | 4,285 | 3,557 | ||||||||||
Total | 14,885 | 21,764 | 20,758 | ||||||||||
Deferred tax (benefit) provision: | |||||||||||||
Federal | 2,744 | (9,446) | (2,928) | ||||||||||
State | 688 | (2,867) | (929) | ||||||||||
Valuation allowance | (3,281) | 280 | (3,542) | ||||||||||
Total | 151 | (12,033) | (7,399) | ||||||||||
Total income tax expense | $ 4,072 | $ 6,623 | $ 4,350 | $ (10) | $ 8,635 | $ 5,381 | $ 4,499 | $ (8,784) | $ 15,036 | $ 9,731 | $ 13,359 | ||
Reconciliation of effective income tax rate as a percentage of pretax income or loss to U.S. federal statutory rate | |||||||||||||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | |||||||||
REIT non-taxable income (as a percent) | (11.30%) | (8.60%) | (21.20%) | ||||||||||
State and local income taxes, net of federal tax benefit (as a percent) | 1.50% | 0.60% | 1.60% | ||||||||||
Change in valuation allowance (as a percent) | (1.90%) | 0.20% | (1.30%) | ||||||||||
Preferred equity interest deferred tax write-off (as a percent) | (6.30%) | ||||||||||||
Tax rate change | (4.80%) | ||||||||||||
Other (as a percent) | (0.50%) | (0.70%) | 2.70% | ||||||||||
Effective income tax rate (as a percent) | 8.80% | 6.20% | 12.00% | ||||||||||
Deferred income tax benefit as result of Tax Reform | $ (5,300) | ||||||||||||
Preferred equity interest financing agreement | ACM / Our "Former Manager" | |||||||||||||
Income Taxes | |||||||||||||
Repayment of debt | $ 50,000 | ||||||||||||
Deferred tax liabilities | 50,000 | ||||||||||||
Deferred tax benefit | (12,500) | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred tax liabilities, net | $ 50,000 | ||||||||||||
REIT | |||||||||||||
Income Taxes | |||||||||||||
Pre-tax GAAP income | $ 94,076 | $ 64,260 | $ 66,988 | ||||||||||
REIT federal income tax expense | 600 | ||||||||||||
State taxes for the entity's taxable REIT | 100 | (100) | 1,000 | ||||||||||
TRS Consolidated Group | |||||||||||||
Income Taxes | |||||||||||||
Pre-tax GAAP income | 76,198 | 93,522 | $ 43,880 | ||||||||||
Deferred tax liabilities | 22,584 | 15,907 | 22,584 | 15,907 | |||||||||
Deferred tax assets: | |||||||||||||
Expenses not currently deductible | 14,850 | 11,853 | 14,850 | 11,853 | |||||||||
Loan loss reserve | 8,863 | 8,614 | 8,863 | 8,614 | |||||||||
Net operating and capital loss carryforwards | 417 | 417 | 417 | 417 | |||||||||
Valuation allowance | (417) | (3,698) | (417) | (3,698) | |||||||||
Deferred tax assets, net | 23,713 | 17,186 | 23,713 | 17,186 | |||||||||
Deferred tax liabilities: | |||||||||||||
Interest in equity affiliates - net | 1,587 | 136 | 1,587 | 136 | |||||||||
Intangibles | 8,684 | 9,674 | 8,684 | 9,674 | |||||||||
Mortgage servicing rights | 11,476 | 5,290 | 11,476 | 5,290 | |||||||||
Other | 837 | 807 | 837 | 807 | |||||||||
Deferred tax liabilities, net | $ 22,584 | $ 15,907 | $ 22,584 | $ 15,907 |
Income Taxes, Operating Loss Ca
Income Taxes, Operating Loss Carryforwards (Details) - TRS Consolidated Group - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Federal and state net operating loss carryforwards | $ 0.5 | $ 0.5 |
Capital loss carryforwards | $ 1.1 | $ 1.1 |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties, Shared Services Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Agreements and transactions with related parties | |||
Management fee - related party | $ 6,673 | ||
ACM / Our "Former Manager" | Management Fee | |||
Agreements and transactions with related parties | |||
Management fee - related party | 6,700 | ||
ACM / Our "Former Manager" | Support Services | |||
Agreements and transactions with related parties | |||
Costs for services to related party | $ 2,700 | $ 1,300 | $ 700 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties, Other Related Party (Details) $ in Thousands | Nov. 30, 2018USD ($) | Dec. 31, 2019USD ($)shares | Sep. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Aug. 31, 2018USD ($) | Jun. 30, 2018USD ($)propertyitemloan | May 31, 2018USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2017USD ($)property | Aug. 31, 2017USD ($) | Jul. 31, 2017USD ($) | May 31, 2017USD ($) | Jan. 31, 2017USD ($) | Nov. 30, 2016USD ($)item | Sep. 30, 2016USD ($)property | Jan. 31, 2016USD ($)property | Dec. 31, 2019USD ($)shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)propertyloan | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2019USD ($)shares | Jul. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Mar. 31, 2017USD ($)item |
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Due to related party | $ 13,100 | $ 13,100 | $ 13,100 | $ 13,100 | |||||||||||||||||||||||||||||||
Due from Related Parties | $ 10,651 | 10,651 | $ 1,287 | 10,651 | $ 1,287 | $ 10,651 | |||||||||||||||||||||||||||||
Paydowns of principal made by borrower | 1,753,693 | 957,163 | $ 929,796 | ||||||||||||||||||||||||||||||||
Proceeds from repayment in full | $ 10,900 | ||||||||||||||||||||||||||||||||||
Income (loss) from equity affiliates | $ 1,502 | $ 3,718 | $ 3,264 | $ 2,151 | $ 91 | $ (1,028) | $ 1,387 | $ 746 | $ 10,635 | 1,196 | (2,951) | ||||||||||||||||||||||||
Chief executive officer | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||||||||||||||||||||||
Residential Mortgage Banking Company | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Maximum percentage of guaranty provided by the Company in relation to the settlement | 50.00% | ||||||||||||||||||||||||||||||||||
Maximum exposure under guaranty | $ 400 | $ 400 | $ 400 | $ 400 | |||||||||||||||||||||||||||||||
Preferred equity investments | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 15,000 | $ 5,000 | |||||||||||||||||||||||||||||||||
Commitment to fund additional investment | $ 5,000 | ||||||||||||||||||||||||||||||||||
Interest income recorded | 1,100 | ||||||||||||||||||||||||||||||||||
Fixed rate of interest (as a percent) | 11.00% | ||||||||||||||||||||||||||||||||||
Bridge loans | Maturity date of November 2018 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 14,800 | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 5.25% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 0.50% | ||||||||||||||||||||||||||||||||||
Bridge loan, several multifamily properties | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 37,500 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 85.00% | ||||||||||||||||||||||||||||||||||
Bridge loan, six multifamily properties | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
UPB converted to a mezzanine loan | $ 2,000 | ||||||||||||||||||||||||||||||||||
Bridge loan, six multifamily properties | Maturity date of September 2019 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 12,900 | ||||||||||||||||||||||||||||||||||
AMAC III | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Income (loss) from equity affiliates | 200 | ||||||||||||||||||||||||||||||||||
Investment in real estate committed | $ 30,000 | ||||||||||||||||||||||||||||||||||
Lexford Portfolio | Bridge loans | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Paydowns of principal made by borrower | $ 250,000 | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners | $ 50,000 | $ 50,000 | |||||||||||||||||||||||||||||||||
Ginkgo | Fannie Mae | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Loan purchased a multifamily apartment complex which assumed | $ 8,300 | ||||||||||||||||||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 20.00% | ||||||||||||||||||||||||||||||||||
Servicing revenue | $ 100 | ||||||||||||||||||||||||||||||||||
Percentage of loan assumption fee | 1.00% | ||||||||||||||||||||||||||||||||||
Percentage of ownership after transaction | 3.60% | ||||||||||||||||||||||||||||||||||
Affiliated entities | Loans originated in 2015 or prior years | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Interest income recorded | 1,300 | 5,800 | |||||||||||||||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Amount invested | $ 10,900 | 10,900 | $ 10,900 | 10,900 | |||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 18.00% | ||||||||||||||||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | Bridge loans | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Amount of loan to related party | $ 34,000 | ||||||||||||||||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | Private Label | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 100.00% | ||||||||||||||||||||||||||||||||||
Interest income recorded | $ 3,300 | ||||||||||||||||||||||||||||||||||
Fixed rate of interest (as a percent) | 3.735% | ||||||||||||||||||||||||||||||||||
Amount of loan to related party | $ 15,600 | $ 15,600 | 15,600 | $ 15,600 | |||||||||||||||||||||||||||||||
Unaffiliated borrower | AMAC III | Mezzanine loans | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Amount of loan to related party | $ 7,000 | ||||||||||||||||||||||||||||||||||
ACM / Our "Former Manager" | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Related party financing | $ 50,000 | ||||||||||||||||||||||||||||||||||
Outstanding principal balance of related party financing | $ 50,000 | ||||||||||||||||||||||||||||||||||
ACM / Our "Former Manager" | Residential Mortgage Banking Company | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Noncontrolling interest in equity method investment acquired (as a percent) | 50.00% | ||||||||||||||||||||||||||||||||||
Indirect ownership percentage | 22.5% | ||||||||||||||||||||||||||||||||||
Acquisition purchase price | $ 9,600 | ||||||||||||||||||||||||||||||||||
Income (loss) from equity affiliates | $ 7,200 | (900) | (7,200) | ||||||||||||||||||||||||||||||||
Maximum percentage of guaranty provided by the Company in relation to the settlement | 50.00% | ||||||||||||||||||||||||||||||||||
ACM / Our "Former Manager" | ACM Acquisition | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Number of preferred stock shares paired with each OP units | shares | 1 | ||||||||||||||||||||||||||||||||||
Number of shares held by related party | shares | 4,285,694 | 4,285,694 | 4,285,694 | 4,285,694 | |||||||||||||||||||||||||||||||
OP units hold as part of acquisition | shares | 14,685,729 | ||||||||||||||||||||||||||||||||||
Percentage of voting power held by related party | 14.60% | 14.60% | 14.60% | 14.60% | |||||||||||||||||||||||||||||||
ACM / Our "Former Manager" | Preferred equity interest financing agreement | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Interest expense on related party loan | 300 | 3,800 | |||||||||||||||||||||||||||||||||
ACM / Our "Former Manager" | Non-qualified Residential Mortgages | Residential Mortgage Banking Company | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Additional investment made by the company along with a consortium of independent outside investors | $ 16,100 | ||||||||||||||||||||||||||||||||||
Proceeds from sale of available-for-sale securities | 16,900 | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Fannie Mae | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Servicing revenue | $ 100 | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Maturity date of January 2019 | Multifamily | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Preferred equity investments | Multifamily | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Equity investment | $ 5,200 | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Preferred equity investments | Maturity Date May 2018 extended from November 2017 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, several multifamily properties | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 19,500 | ||||||||||||||||||||||||||||||||||
Interest income recorded | $ 1,300 | 300 | |||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, several multifamily properties | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.00% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 2.125% | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, two multifamily properties | Maturity date of January 2019 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 12,700 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, two multifamily properties | Maturity date of January 2019 | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, one multifamily property | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 61,200 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.00% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 1,300 | ||||||||||||||||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge loan, one multifamily property | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 2.00% | ||||||||||||||||||||||||||||||||||
Consortium of investors including an immediate family member of our officers | Fannie Mae loan on a multifamily property | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 5.00% | ||||||||||||||||||||||||||||||||||
Servicing revenue | 100 | ||||||||||||||||||||||||||||||||||
Principal amount | $ 46,900 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 17.60% | ||||||||||||||||||||||||||||||||||
Consortium of Investors, including our Chief Executive Officer and our Former Manager | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Amount invested | $ 2,000 | ||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 26.10% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 300 | ||||||||||||||||||||||||||||||||||
Number of portfolios of multifamily properties | item | 2 | ||||||||||||||||||||||||||||||||||
Consortium of Investors, including our Chief Executive Officer and our Former Manager | Bridge loans | Maturity date of November 2018 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Number of bridge loans originated | item | 2 | ||||||||||||||||||||||||||||||||||
Certain officers, including our Chief Executive Officer and our Former Manager | Bridge loan, six multifamily properties | Maturity date of September 2019 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 48,000 | ||||||||||||||||||||||||||||||||||
Number of properties owned | property | 6 | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 300 | 1,900 | 2,700 | ||||||||||||||||||||||||||||||||
Proceeds from repayment of debt | $ 28,300 | ||||||||||||||||||||||||||||||||||
Proceeds from repayment in full | $ 6,800 | ||||||||||||||||||||||||||||||||||
Certain officers, including our Chief Executive Officer and our Former Manager | Bridge loan, six multifamily properties | Maturity date of September 2019 | Minimum | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.50% | ||||||||||||||||||||||||||||||||||
Certain officers, including our Chief Executive Officer and our Former Manager | Bridge loan, six multifamily properties | Maturity date of September 2019 | Maximum | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 12.00% | ||||||||||||||||||||||||||||||||||
Certain officers, including our Chief Executive Officer and our Former Manager | Mezzanine loans | Maturity date of January 2024 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Preferred equity investments | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Amount of ownership interest of related party in the entity | $ 5,000 | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, several multifamily properties | Maturity Date of January 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Due to related party | $ 9,400 | ||||||||||||||||||||||||||||||||||
Principal amount | $ 8,600 | $ 8,600 | 8,600 | 8,600 | |||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 600 | 300 | |||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, several multifamily properties | Maturity Date of January 2021 | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 5.00% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.25% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, several multifamily properties | Maturity date of June 2020 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 32,800 | $ 32,800 | $ 32,800 | ||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 90.00% | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.13% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 1,700 | 2,400 | $ 100 | ||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 28,000 | $ 28,000 | $ 28,000 | ||||||||||||||||||||||||||||||||
Number of properties owned | property | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 45.00% | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 5.25% | 5.25% | 5.25% | ||||||||||||||||||||||||||||||||
Interest income recorded | 2,200 | 2,100 | $ 200 | ||||||||||||||||||||||||||||||||
Number of mortgage loans secured by property purchased from related party | loan | 2 | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | Minimum | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.24% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | Maximum | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.54% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of January 2019 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Interest income recorded | 600 | 1,400 | 1,300 | ||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of October 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 31,100 | $ 31,100 | $ 31,100 | ||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.80% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, two multifamily properties | Maturity date of October 2021 | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.00% | 4.00% | 4.00% | ||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, one multifamily property | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 22,600 | 22,600 | 22,600 | $ 22,600 | |||||||||||||||||||||||||||||||
Proceeds from Bridge loan on a multi family property | $ 17,400 | ||||||||||||||||||||||||||||||||||
Interest income recorded | 200 | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, one multifamily property | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 21,700 | $ 21,700 | |||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 1,400 | 600 | |||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, one multifamily property | Maturity Date of June 2021 | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.75% | 4.75% | |||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.25% | ||||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, one multifamily property | Maturity date of July 2020 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 36,000 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 95.00% | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 1.00% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 1,900 | 900 | |||||||||||||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge loan, one multifamily property | Maturity date of January 2019 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 19,000 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 7.50% | ||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||||||||||||||||
Interest income recorded | $ 300 | 1,100 | |||||||||||||||||||||||||||||||||
Kaufman Entities | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of our Former Manager's outstanding membership interest of related party in another related party | 31.00% | 31.00% | 31.00% | 31.00% | |||||||||||||||||||||||||||||||
Director | Ginkgo | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of managing member | 33.00% | ||||||||||||||||||||||||||||||||||
Consortium of affiliated investors | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Interest income recorded | 1,000 | ||||||||||||||||||||||||||||||||||
Consortium of affiliated investors | Bridge loans | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Number of one-year extension options | item | 2 | ||||||||||||||||||||||||||||||||||
Consortium of affiliated investors | Fannie Mae loan on a multifamily property | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Servicing revenue | $ 100 | ||||||||||||||||||||||||||||||||||
Consortium of affiliated investors | Lexford Portfolio | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Management fee, percentage of gross revenues of underlying properties | 4.75% | ||||||||||||||||||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loan, several undeveloped parcels of land | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Principal amount | $ 17,700 | ||||||||||||||||||||||||||||||||||
Paydowns of principal made by borrower | $ 4,700 | ||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.80% | ||||||||||||||||||||||||||||||||||
Interest income recorded | $ 1,800 | 800 | |||||||||||||||||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||||||||||||||||||
Immediate family member of chief executive officer | Bridge loan, several multifamily properties | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 23.90% | ||||||||||||||||||||||||||||||||||
LIBOR floor (as a percentage) | 2.375% | ||||||||||||||||||||||||||||||||||
Immediate family member of chief executive officer | Bridge loan, several multifamily properties | LIBOR | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 4.25% | ||||||||||||||||||||||||||||||||||
Interest income recorded | 2,700 | ||||||||||||||||||||||||||||||||||
Lexford Portfolio | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Income (loss) from equity affiliates | 3,500 | 2,500 | $ 2,500 | ||||||||||||||||||||||||||||||||
Maximum exposure under guaranty | $ 617,900 | $ 617,900 | 617,900 | $ 617,900 | |||||||||||||||||||||||||||||||
Lexford Portfolio | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Interest income recorded | 9,600 | $ 10,100 | |||||||||||||||||||||||||||||||||
Lexford Portfolio | Bridge loans | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Number of bridge loans originated | loan | 12 | ||||||||||||||||||||||||||||||||||
Number of multifamily properties renovated | property | 72 | ||||||||||||||||||||||||||||||||||
Lexford Portfolio | Bridge loan, two multifamily properties | Maturity Date of June 2021 | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Base spread (as a percent) | 280.50% | 280.50% | |||||||||||||||||||||||||||||||||
Entity controlled by our chief executive officer | |||||||||||||||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||||||||||||||
Reimbursement for flights chartered by the company's executives | $ 100 |
Employee Benefits - 401(k) Plan
Employee Benefits - 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits | |||
Minimum period of continuous service required under 401(k) plan | 6 months | ||
Employer's match of the first 6% of employee's contributions (as a a percent) | 25.00% | ||
Percentage of eligible compensation, matched 25% by employer | 6.00% | ||
Employee compensation and benefits | |||
Employee Benefits | |||
Expense recorded under 401(k) plan | $ 0.7 | $ 0.6 | $ 0.6 |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Comp Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Comp Plan | |||
Period over which matching contributions vest after year 5 | 9 years | ||
Deferred compensation expense | $ 4.7 | $ 3.4 | $ 2.4 |
Other liabilities | |||
Deferred Comp Plan | |||
Liabilities related to Deferred Comp Plan | 13.2 | 8.8 | |
Other assets | |||
Deferred Comp Plan | |||
Assets related to Deferred Comp Plan | $ 8.2 | $ 5.9 |
Segment Information - Statement
Segment Information - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information | |||||||||||
Interest income | $ 315,940 | $ 251,768 | $ 156,177 | ||||||||
Interest expense | 186,399 | 153,818 | 90,072 | ||||||||
Net interest income | $ 33,797 | $ 32,445 | $ 33,887 | $ 29,412 | $ 30,361 | $ 27,952 | $ 21,411 | $ 18,225 | 129,541 | 97,950 | 66,105 |
Other revenue: | |||||||||||
Gain on sales, including fee-based services, net | 65,652 | 70,002 | 72,799 | ||||||||
Mortgage servicing rights | 90,761 | 98,839 | 76,820 | ||||||||
Servicing revenue | 103,223 | 94,158 | 76,412 | ||||||||
Amortization of MSRs | (48,681) | (48,124) | (47,202) | ||||||||
Property operating income | 9,674 | 10,095 | 10,973 | ||||||||
Other income, net | (784) | 8,161 | 685 | ||||||||
Total other revenue | 62,365 | 62,558 | 50,072 | 44,848 | 77,464 | 55,580 | 46,923 | 53,162 | 219,845 | 233,131 | 190,487 |
Other expenses: | |||||||||||
Employee compensation and benefits | 122,102 | 110,470 | 92,126 | ||||||||
Selling and administrative | 40,329 | 37,074 | 30,738 | ||||||||
Property operating expenses | 10,220 | 10,431 | 10,482 | ||||||||
Depreciation and amortization | 7,510 | 7,453 | 7,385 | ||||||||
Impairment loss on real estate owned | 1,000 | 2,000 | 3,200 | ||||||||
Provision for loss sharing (net of recoveries) | 1,147 | 3,843 | (259) | ||||||||
Provision for loan losses (net of recoveries) | 8,353 | (456) | |||||||||
Litigation settlement gain | (10,170) | ||||||||||
Management fee - related party | 6,673 | ||||||||||
Total other expenses | 41,670 | 48,882 | 45,471 | 46,287 | 50,255 | 34,739 | 40,610 | 43,849 | 182,308 | 169,454 | 149,889 |
Income before extinguishment of debt, income (loss) from equity | 54,492 | 46,121 | 38,488 | 27,973 | 57,570 | 48,793 | 27,724 | 27,538 | 167,078 | 161,627 | 106,703 |
(Loss) gain on extinguishment of debt | (7,311) | (128) | (82) | (4,960) | (7,439) | (5,041) | 7,116 | ||||
Income from equity affiliates | 1,502 | 3,718 | 3,264 | 2,151 | 91 | (1,028) | 1,387 | 746 | 10,635 | 1,196 | (2,951) |
Provision for income taxes | (4,072) | (6,623) | (4,350) | 10 | (8,635) | (5,381) | (4,499) | 8,784 | (15,036) | (9,731) | (13,359) |
Net income | 44,611 | 43,216 | 37,402 | 30,006 | 48,944 | 37,424 | 24,612 | 37,068 | 155,238 | 148,051 | 97,509 |
Preferred stock dividends | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 7,554 | 7,554 | 7,554 |
Net income attributable to noncontrolling interest | 7,181 | 7,363 | 6,598 | 5,468 | 9,838 | 7,799 | 5,557 | 8,991 | 26,610 | 32,185 | 24,120 |
Net income attributable to common stockholders | $ 35,542 | $ 33,965 | $ 28,916 | $ 22,650 | $ 37,218 | $ 27,737 | $ 17,167 | $ 26,189 | 121,074 | 108,312 | 65,835 |
Operating segments | Structured Business | |||||||||||
Segment Information | |||||||||||
Interest income | 289,841 | 226,750 | 136,526 | ||||||||
Interest expense | 169,802 | 137,719 | 74,136 | ||||||||
Net interest income | 120,039 | 89,031 | 62,390 | ||||||||
Other revenue: | |||||||||||
Property operating income | 9,674 | 10,095 | 10,973 | ||||||||
Other income, net | 903 | 1,490 | 2,083 | ||||||||
Total other revenue | 10,577 | 11,585 | 13,056 | ||||||||
Other expenses: | |||||||||||
Employee compensation and benefits | 31,264 | 27,456 | 19,555 | ||||||||
Selling and administrative | 18,099 | 15,642 | 11,765 | ||||||||
Property operating expenses | 10,220 | 10,431 | 10,482 | ||||||||
Depreciation and amortization | 2,046 | 1,851 | 1,784 | ||||||||
Impairment loss on real estate owned | 1,000 | 2,000 | 3,200 | ||||||||
Provision for loan losses (net of recoveries) | 8,353 | (456) | |||||||||
Litigation settlement gain | (10,170) | ||||||||||
Management fee - related party | 3,259 | ||||||||||
Total other expenses | 62,629 | 55,563 | 49,589 | ||||||||
Income before extinguishment of debt, income (loss) from equity | 67,987 | 45,053 | 25,857 | ||||||||
(Loss) gain on extinguishment of debt | (7,439) | (5,041) | 7,116 | ||||||||
Income from equity affiliates | 10,635 | 1,196 | (2,951) | ||||||||
Provision for income taxes | (668) | 774 | (957) | ||||||||
Net income | 70,515 | 41,982 | 29,065 | ||||||||
Preferred stock dividends | 7,554 | 7,554 | 7,554 | ||||||||
Net income attributable to common stockholders | 62,961 | 34,428 | 21,511 | ||||||||
Operating segments | Agency Business | |||||||||||
Segment Information | |||||||||||
Interest income | 26,099 | 25,018 | 19,651 | ||||||||
Interest expense | 16,597 | 15,770 | 12,089 | ||||||||
Net interest income | 9,502 | 9,248 | 7,562 | ||||||||
Other revenue: | |||||||||||
Gain on sales, including fee-based services, net | 65,652 | 70,002 | 72,799 | ||||||||
Mortgage servicing rights | 90,761 | 98,839 | 76,820 | ||||||||
Servicing revenue | 103,223 | 94,158 | 76,412 | ||||||||
Amortization of MSRs | (48,681) | (48,124) | (47,202) | ||||||||
Other income, net | (1,687) | 6,671 | (1,398) | ||||||||
Total other revenue | 209,268 | 221,546 | 177,431 | ||||||||
Other expenses: | |||||||||||
Employee compensation and benefits | 90,838 | 83,014 | 72,571 | ||||||||
Selling and administrative | 22,230 | 21,432 | 18,973 | ||||||||
Depreciation and amortization | 5,464 | 5,602 | 5,601 | ||||||||
Provision for loss sharing (net of recoveries) | 1,147 | 3,843 | (259) | ||||||||
Management fee - related party | 3,414 | ||||||||||
Total other expenses | 119,679 | 113,891 | 100,300 | ||||||||
Income before extinguishment of debt, income (loss) from equity | 99,090 | 116,903 | 84,693 | ||||||||
Provision for income taxes | (14,368) | (10,505) | (12,402) | ||||||||
Net income | 84,722 | 106,398 | 72,291 | ||||||||
Net income attributable to common stockholders | 84,722 | 106,398 | 72,291 | ||||||||
Other / Eliminations | |||||||||||
Segment Information | |||||||||||
Interest expense | 329 | 3,847 | |||||||||
Net interest income | (329) | (3,847) | |||||||||
Other expenses: | |||||||||||
Income before extinguishment of debt, income (loss) from equity | (329) | (3,847) | |||||||||
Net income | (329) | (3,847) | |||||||||
Net income attributable to noncontrolling interest | 26,610 | 32,185 | 24,120 | ||||||||
Net income attributable to common stockholders | $ (26,610) | $ (32,514) | $ (27,967) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Cash and cash equivalents | $ 299,687 | $ 160,063 | $ 104,374 | $ 138,645 |
Restricted cash | 210,875 | 180,606 | $ 139,398 | $ 29,315 |
Loans and investments, net | 4,189,960 | 3,200,145 | ||
Loans held-for-sale, net | 861,360 | 481,664 | ||
Capitalized mortgage servicing rights, net | 286,420 | 273,770 | ||
Securities held-to-maturity, net | 88,699 | 76,363 | ||
Investments in equity affiliates | 41,800 | 21,580 | ||
Goodwill and other intangible assets | 110,700 | 116,165 | ||
Other assets | 149,659 | 101,819 | ||
Total assets | 6,239,160 | 4,612,175 | ||
Liabilities: | ||||
Debt obligations | 4,621,938 | 3,314,869 | ||
Allowance for loss-sharing obligations | 34,648 | 34,298 | ||
Other liabilities | 226,547 | 197,442 | ||
Total liabilities | 4,883,133 | 3,546,609 | ||
Structured Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 264,468 | 89,457 | ||
Restricted cash | 208,926 | 180,606 | ||
Loans and investments, net | 4,189,960 | 3,200,145 | ||
Securities held-to-maturity, net | 20,000 | |||
Investments in equity affiliates | 41,800 | 21,580 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets | 118,175 | 81,494 | ||
Total assets | 4,855,829 | 3,585,782 | ||
Liabilities: | ||||
Debt obligations | 3,878,343 | 2,842,688 | ||
Other liabilities | 171,004 | 159,413 | ||
Total liabilities | 4,049,347 | 3,002,101 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 35,219 | 70,606 | ||
Restricted cash | 1,949 | |||
Loans held-for-sale, net | 861,360 | 481,664 | ||
Capitalized mortgage servicing rights, net | 286,420 | 273,770 | ||
Securities held-to-maturity, net | 68,699 | 76,363 | ||
Goodwill and other intangible assets | 98,200 | 103,665 | ||
Other assets | 31,484 | 20,325 | ||
Total assets | 1,383,331 | 1,026,393 | ||
Liabilities: | ||||
Debt obligations | 743,595 | 472,181 | ||
Allowance for loss-sharing obligations | 34,648 | 34,298 | ||
Other liabilities | 55,543 | 38,029 | ||
Total liabilities | $ 833,786 | $ 544,508 |
Segment Information - Originati
Segment Information - Origination Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information | |||
Origination Volumes | $ 4,829,721 | $ 5,104,072 | $ 4,344,328 |
Loan Sales Data: | |||
Sales margin (fee-based services as a % of loan sales) | 1.49% | 1.42% | 1.51% |
MSR rate (MSR income as a % of loan commitments) | 1.88% | 1.94% | 1.77% |
Structured Business | |||
Segment Information | |||
New loan originations | $ 2,803,251 | $ 1,656,020 | $ 1,842,974 |
Loan payoffs / paydowns | 1,748,387 | 955,575 | 924,120 |
Agency Business | |||
Segment Information | |||
Origination Volumes | 4,810,225 | 5,124,489 | 4,462,436 |
Loan Sales Data: | |||
Loan Sales | 4,401,112 | 4,924,144 | 4,814,906 |
Fannie Mae | Agency Business | |||
Segment Information | |||
Origination Volumes | 3,346,272 | 3,332,100 | 2,929,481 |
Loan Sales Data: | |||
Loan Sales | 3,296,523 | 3,217,006 | 3,223,953 |
Freddie Mac | Agency Business | |||
Segment Information | |||
Origination Volumes | 728,317 | 1,587,958 | 1,322,498 |
Loan Sales Data: | |||
Loan Sales | 786,993 | 1,540,483 | 1,399,029 |
FHA | Agency Business | |||
Segment Information | |||
Origination Volumes | 123,095 | 153,523 | 189,087 |
Loan Sales Data: | |||
Loan Sales | 106,271 | 115,747 | 170,554 |
CMBS/Conduit | Agency Business | |||
Segment Information | |||
Origination Volumes | 211,325 | 50,908 | 21,370 |
Loan Sales Data: | |||
Loan Sales | 211,325 | $ 50,908 | $ 21,370 |
Private Label | Agency Business | |||
Segment Information | |||
Origination Volumes | $ 401,216 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information | ||
UPB of Servicing Portfolio | $ 20,059,077 | $ 18,601,641 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.438% | 0.452% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 9 months 18 days | 8 years 7 months 6 days |
Fannie Mae | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 14,832,844 | $ 13,562,667 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.493% | 0.513% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 7 years 9 months 18 days | 7 years 4 months 24 days |
Freddie Mac | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 4,534,714 | $ 4,394,287 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.30% | 0.308% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 10 years 7 months 6 days | 10 years 9 months 18 days |
FHA | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 691,519 | $ 644,687 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.154% | 0.155% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 18 years 8 months 12 days | 19 years 7 months 6 days |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Data - Unaudited | |||||||||||
Net interest income | $ 33,797 | $ 32,445 | $ 33,887 | $ 29,412 | $ 30,361 | $ 27,952 | $ 21,411 | $ 18,225 | $ 129,541 | $ 97,950 | $ 66,105 |
Total other revenue | 62,365 | 62,558 | 50,072 | 44,848 | 77,464 | 55,580 | 46,923 | 53,162 | 219,845 | 233,131 | 190,487 |
Total other expenses | 41,670 | 48,882 | 45,471 | 46,287 | 50,255 | 34,739 | 40,610 | 43,849 | 182,308 | 169,454 | 149,889 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 54,492 | 46,121 | 38,488 | 27,973 | 57,570 | 48,793 | 27,724 | 27,538 | 167,078 | 161,627 | 106,703 |
(Loss) gain on extinguishment of debt | (7,311) | (128) | (82) | (4,960) | (7,439) | (5,041) | 7,116 | ||||
Income (loss) from equity affiliates | 1,502 | 3,718 | 3,264 | 2,151 | 91 | (1,028) | 1,387 | 746 | 10,635 | 1,196 | (2,951) |
Provision for income taxes | (4,072) | (6,623) | (4,350) | 10 | (8,635) | (5,381) | (4,499) | 8,784 | (15,036) | (9,731) | (13,359) |
Net income | 44,611 | 43,216 | 37,402 | 30,006 | 48,944 | 37,424 | 24,612 | 37,068 | 155,238 | 148,051 | 97,509 |
Preferred stock dividends | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 1,888 | 7,554 | 7,554 | 7,554 |
Net income attributable to noncontrolling interest | 7,181 | 7,363 | 6,598 | 5,468 | 9,838 | 7,799 | 5,557 | 8,991 | 26,610 | 32,185 | 24,120 |
Net income attributable to common stockholders | $ 35,542 | $ 33,965 | $ 28,916 | $ 22,650 | $ 37,218 | $ 27,737 | $ 17,167 | $ 26,189 | $ 121,074 | $ 108,312 | $ 65,835 |
Basic earnings per common share (in dollars per share) | $ 0.35 | $ 0.36 | $ 0.32 | $ 0.27 | $ 0.48 | $ 0.37 | $ 0.26 | $ 0.42 | $ 1.30 | $ 1.54 | $ 1.14 |
Diluted earnings per common share (in dollars per share) | $ 0.34 | $ 0.35 | $ 0.31 | $ 0.26 | $ 0.47 | $ 0.36 | $ 0.25 | $ 0.42 | $ 1.27 | $ 1.50 | $ 1.12 |
SCHEDULE IV - LOANS AND OTHER_2
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Investments | ||||
Fixed interest rate (as a percent) | 5.98% | 7.02% | ||
Prior Liens | $ 1,352,892 | |||
Secured amount of loan | 4,279,611 | |||
Carrying Amount | 4,189,960 | $ 3,200,145 | $ 2,579,127 | $ 1,695,732 |
Amount of loans extended | 808,100 | |||
Federal income tax basis | $ 4,290,000 | |||
Threshold for reporting loans (as a percent) | 3.00% | |||
Bridge loans | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 5.77% | 6.84% | ||
Prior Liens | $ 60,000 | |||
Secured amount of loan | 3,836,832 | |||
Carrying Amount | 3,750,710 | |||
Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Prior Liens | 60,000 | |||
Secured amount of loan | 723,875 | |||
Carrying Amount | $ 651,818 | |||
Preferred equity investments | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 7.62% | 7.97% | ||
Secured amount of loan | $ 34,800 | |||
Preferred equity investments | Loans less than 3% | ||||
Loans and Investments | ||||
Prior Liens | $ 834,515 | |||
Secured amount of loan | 181,058 | |||
Carrying Amount | $ 178,270 | |||
Mezzanine loans | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 9.70% | 10.57% | ||
Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Prior Liens | $ 458,377 | |||
Secured amount of loan | 191,575 | |||
Carrying Amount | 190,980 | |||
Other Loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | 70,146 | |||
Carrying Amount | $ 70,000 | |||
Multifamily | Loans in excess of 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 3.60% | |||
Multifamily | Bridge loans | Loans in excess of 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 417,100 | |||
Carrying Amount | $ 415,703 | |||
Multifamily | Bridge loans | Loans in excess of 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 2.75% | |||
LIBOR Floor rate (as a percent) | 1.36% | |||
Multifamily | Bridge loans | Loans in excess of 3% | Maximum | ||||
Loans and Investments | ||||
LIBOR Floor rate (as a percent) | 2.38% | |||
Multifamily | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 2,695,857 | |||
Carrying Amount | $ 2,683,189 | |||
Multifamily | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 2.50% | |||
LIBOR Floor rate (as a percent) | 0.43% | |||
Fixed interest rate (as a percent) | 9.00% | |||
Multifamily | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 12.72% | |||
LIBOR Floor rate (as a percent) | 2.75% | |||
Fixed interest rate (as a percent) | 11.00% | |||
Multifamily | Preferred equity investments | Loans less than 3% | ||||
Loans and Investments | ||||
Prior Liens | $ 794,984 | |||
Secured amount of loan | 178,478 | |||
Carrying Amount | $ 177,399 | |||
Multifamily | Preferred equity investments | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 4.00% | |||
Multifamily | Preferred equity investments | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 14.00% | |||
Multifamily | Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Prior Liens | $ 337,352 | |||
Secured amount of loan | 109,272 | |||
Carrying Amount | $ 108,819 | |||
Multifamily | Mezzanine loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 5.00% | |||
Multifamily | Mezzanine loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 12.00% | |||
Multifamily | Other Loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 28,571 | |||
Carrying Amount | $ 28,572 | |||
Multifamily | Other Loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 2.83% | |||
Multifamily | Other Loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 5.32% | |||
Self Storage | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Base spread (as a percent) | 3.90% | |||
LIBOR Floor rate (as a percent) | 1.23% | |||
Secured amount of loan | $ 13,580 | |||
Carrying Amount | $ 13,550 | |||
Self Storage | Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 11.00% | |||
Prior Liens | $ 30,471 | |||
Secured amount of loan | 12,713 | |||
Carrying Amount | 12,687 | |||
Land | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | 172,657 | |||
Carrying Amount | $ 104,788 | |||
Land | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.00% | |||
LIBOR Floor rate (as a percent) | 0.15% | |||
Fixed interest rate (as a percent) | 0.00% | |||
Land | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.50% | |||
LIBOR Floor rate (as a percent) | 0.75% | |||
Fixed interest rate (as a percent) | 11.64% | |||
Land | Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 48,832 | |||
Carrying Amount | $ 48,767 | |||
Land | Mezzanine loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 0.00% | |||
Land | Mezzanine loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 13.00% | |||
Office | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 122,127 | |||
Carrying Amount | $ 120,437 | |||
Office | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 3.10% | |||
LIBOR Floor rate (as a percent) | 1.12% | |||
Office | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 6.19% | |||
LIBOR Floor rate (as a percent) | 2.13% | |||
Office | Preferred equity investments | Loans less than 3% | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 15.00% | |||
Prior Liens | $ 9,739 | |||
Secured amount of loan | 880 | |||
Carrying Amount | $ 871 | |||
Office | Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Base spread (as a percent) | 7.44% | |||
LIBOR Floor rate (as a percent) | 2.13% | |||
Fixed interest rate (as a percent) | 9.00% | |||
Prior Liens | $ 60,000 | |||
Secured amount of loan | 11,000 | |||
Carrying Amount | 10,980 | |||
Healthcare | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | 203,694 | |||
Carrying Amount | $ 202,756 | |||
Healthcare | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.00% | |||
LIBOR Floor rate (as a percent) | 1.12% | |||
Healthcare | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 11.60% | |||
LIBOR Floor rate (as a percent) | 2.63% | |||
Hotel | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
LIBOR Floor rate (as a percent) | 1.50% | |||
Prior Liens | $ 60,000 | |||
Secured amount of loan | 142,300 | |||
Carrying Amount | $ 141,574 | |||
Hotel | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 2.75% | |||
Hotel | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 7.60% | |||
LIBOR Floor rate (as a percent) | 2.38% | |||
Commercial | Preferred equity investments | Loans less than 3% | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 6.00% | |||
Prior Liens | $ 29,792 | |||
Secured amount of loan | 1,700 | |||
Retail | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | 39,500 | |||
Carrying Amount | $ 39,329 | |||
Retail | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.00% | |||
LIBOR Floor rate (as a percent) | 2.13% | |||
Retail | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 6.00% | |||
LIBOR Floor rate (as a percent) | 2.50% | |||
Retail | Mezzanine loans | Loans less than 3% | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 12.00% | |||
Prior Liens | $ 30,554 | |||
Secured amount of loan | 9,758 | |||
Carrying Amount | 9,727 | |||
Single-Family Rental | Bridge loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | 30,017 | |||
Carrying Amount | $ 29,384 | |||
Single-Family Rental | Bridge loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.50% | |||
LIBOR Floor rate (as a percent) | 2.02% | |||
Single-Family Rental | Bridge loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Base spread (as a percent) | 4.85% | |||
LIBOR Floor rate (as a percent) | 2.50% | |||
Single-Family Rental | Other Loans | Loans less than 3% | ||||
Loans and Investments | ||||
Secured amount of loan | $ 41,575 | |||
Carrying Amount | $ 41,428 | |||
Single-Family Rental | Other Loans | Loans less than 3% | Minimum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 4.40% | |||
Single-Family Rental | Other Loans | Loans less than 3% | Maximum | ||||
Loans and Investments | ||||
Fixed interest rate (as a percent) | 5.90% |
SCHEDULE IV - LOANS AND OTHER_3
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS, Loans and Investments Carrying Amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the Company's loans and investments carrying amounts | |||
Balance at beginning of year | $ 3,200,145 | $ 2,579,127 | $ 1,695,732 |
Additions during period: | |||
New loan originations | 2,831,822 | 1,658,732 | 1,842,974 |
Loan charge-offs | 3,173 | 20,473 | |
Funding of unfunded loan commitments | 65,531 | 21,027 | 51,689 |
Accretion of unearned revenue | 12,083 | 9,278 | 6,519 |
Recoveries of reserves | 2,527 | 2,456 | |
Deductions during period: | |||
Loan payoffs and paydowns | (1,753,693) | (957,163) | (929,796) |
Unfunded loan commitments | (147,392) | (88,617) | (77,233) |
Use of loan charge-offs | (3,173) | (20,473) | |
Provision for loan losses | (13,986) | (2,000) | |
Unearned revenue and costs | (18,536) | (10,780) | (11,214) |
Balance at end of year | $ 4,189,960 | $ 3,200,145 | $ 2,579,127 |