Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-32136 | ||
Entity Registrant Name | Arbor Realty Trust, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-0057959 | ||
Entity Address, Address Line One | 333 Earle Ovington Boulevard | ||
Entity Address, Address Line Two | Suite 900 | ||
Entity Address, City or Town | Uniondale | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11553 | ||
City Area Code | 516 | ||
Local Phone Number | 506-4200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 152,112,931 | ||
Entity Central Index Key | 0001253986 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 2,430 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | New York | ||
Auditor Firm ID | 42 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ABR | ||
Security Exchange Name | NYSE | ||
Series D Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PD | ||
Security Exchange Name | NYSE | ||
Series E Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PE | ||
Security Exchange Name | NYSE | ||
Series F Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PF | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 404,580 | $ 339,528 |
Restricted cash | 486,690 | 197,470 |
Loans and investments, net (allowance for credit losses of $113,241 and $148,329) | 11,981,048 | 5,285,868 |
Loans held-for-sale, net | 1,093,609 | 986,919 |
Capitalized mortgage servicing rights, net | 422,734 | 379,974 |
Securities held-to-maturity, net (allowance for credit losses of $1,753 and $1,644) | 140,484 | 95,524 |
Investments in equity affiliates | 89,676 | 74,274 |
Due from related party | 84,318 | 12,449 |
Goodwill and other intangible assets | 100,760 | 105,451 |
Other assets | 269,946 | 183,529 |
Total assets | 15,073,845 | 7,660,986 |
Liabilities and Equity: | ||
Credit and repurchase facilities | 4,481,579 | 2,234,883 |
Collateralized loan obligations | 5,892,810 | 2,517,309 |
Senior unsecured notes | 1,280,545 | 662,843 |
Convertible senior unsecured notes, net | 259,385 | 267,973 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 142,382 | 141,656 |
Due to related party | 26,570 | 2,365 |
Due to borrowers | 96,641 | 89,325 |
Allowance for loss-sharing obligations | 56,064 | 64,303 |
Other liabilities | 287,885 | 197,644 |
Total liabilities | 12,523,861 | 6,178,301 |
Commitments and contingencies (Note 14) | ||
Arbor Realty Trust, Inc. stockholders' equity: | ||
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period, respectively: Special voting preferred shares, 16,325,095 and 17,560,633 shares 8.25% Series A, 0 and 1,551,500 shares 7.75% Series B, 0 and 1,260,000 shares 8.50% Series C, 0 and 900,000 shares 6.375% Series D, 9,200,000 and 0 shares 6.25% Series E, 5,750,000 and 0 shares 6.25% Series F, 8,050,000 and 0 shares | 556,163 | 89,472 |
Common stock, $0.01 par value: 500,000,000 shares authorized - 143,007,036 and 123,181,173 shares issued and outstanding, respectively | 1,514 | 1,232 |
Additional paid-in capital | 1,797,913 | 1,317,109 |
Retained earnings (accumulated deficit) | 62,532 | (63,442) |
Total Arbor Realty Trust, Inc. stockholders' equity | 2,418,122 | 1,344,371 |
Noncontrolling interest | 131,862 | 138,314 |
Total equity | 2,549,984 | 1,482,685 |
Total liabilities and equity | $ 15,073,845 | $ 7,660,986 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and investments, net allowance for credit losses | $ 113,241 | $ 148,329 |
Securities held-to-maturity, net allowance for credit losses | $ 1,753 | $ 1,644 |
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) | 151,362,181 | 123,181,173 |
Common stock, shares outstanding (in shares) | 151,362,181 | 123,181,173 |
Assets | $ 15,073,845 | $ 7,660,986 |
Liabilities | 12,523,861 | 6,178,301 |
Consolidated VIEs | ||
Assets | 7,144,806 | 3,134,447 |
Liabilities | $ 5,902,623 | $ 2,520,064 |
Special voting preferred shares | ||
Preferred stock, shares issued (in shares) | 16,325,095 | 17,560,633 |
Preferred stock, shares outstanding (in shares) | 16,325,095 | 17,560,633 |
8.25% Series A cumulative redeemable preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 1,551,500 | |
7.75% Series B cumulative redeemable preferred stock | ||
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 1,260,000 | |
8.50% Series C preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.50% | 8.50% |
Preferred stock, shares issued (in shares) | 0 | 900,000 |
6.375% Series D preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% |
Preferred stock, shares issued (in shares) | 9,200,000 | |
Preferred stock, shares outstanding (in shares) | 0 | |
6.25% Series E preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | |
Preferred stock, shares issued (in shares) | 5,750,000 | |
Preferred stock, shares outstanding (in shares) | 0 | |
6.25% Series F preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
Preferred stock, shares issued (in shares) | 8,050,000 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Interest income | $ 466,087 | $ 339,465 | $ 315,940 |
Interest expense | 212,005 | 169,216 | 186,399 |
Net interest income | 254,082 | 170,249 | 129,541 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 123,037 | 94,607 | 65,652 |
Mortgage servicing rights | 130,230 | 165,517 | 90,761 |
Servicing revenue, net | 74,814 | 54,385 | 54,542 |
Property operating income | 185 | 3,976 | 9,674 |
Loss on derivative instruments, net | (2,684) | (58,335) | (1,962) |
Other income, net | 7,566 | 4,109 | 1,178 |
Total other revenue | 333,148 | 264,259 | 219,845 |
Other expenses: | |||
Employee compensation and benefits | 171,796 | 144,380 | 122,102 |
Selling and administrative | 45,575 | 37,348 | 40,329 |
Property operating expenses | 718 | 4,898 | 10,220 |
Depreciation and amortization | 7,215 | 7,640 | 7,510 |
Impairment loss on real estate owned | 1,000 | ||
Provision for loss sharing (net of recoveries) | (6,167) | 14,822 | 1,147 |
Provision for credit losses (net of recoveries) | (21,113) | 61,110 | |
Total other expenses | 198,024 | 270,198 | 182,308 |
Income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes | 389,206 | 164,310 | 167,078 |
Gain (loss) on real estate | (3,374) | (3,546) | (7,439) |
Loss on sale of real estate | 3,693 | (375) | |
Income from equity affiliates | 34,567 | 76,161 | 10,635 |
Provision for income taxes | (46,285) | (40,393) | (15,036) |
Net income | 377,807 | 196,157 | 155,238 |
Preferred stock dividends | 21,888 | 7,554 | 7,554 |
Net income attributable to noncontrolling interest | 38,507 | 25,208 | 26,610 |
Net income attributable to common stockholders | $ 317,412 | $ 163,395 | $ 121,074 |
Basic earnings per common share | $ 2.30 | $ 1.44 | $ 1.30 |
Diluted earnings per common share | $ 2.28 | $ 1.41 | $ 1.27 |
Weighted average shares outstanding: | |||
Basic | 137,830,691 | 113,811,471 | 92,851,327 |
Diluted | 156,089,595 | 133,969,296 | 116,192,951 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Preferred Stock6.375% Series D preferred stock | Preferred Stock6.25% Series E preferred stock | Preferred Stock6.25% Series F preferred stock | Preferred StockBalance as adjusted for the adoption of ASU 2016-13 | Preferred Stock | Common StockBalance as adjusted for the adoption of ASU 2016-13 | Common Stock | Additional Paid-in CapitalBalance as adjusted for the adoption of ASU 2016-13 | Additional Paid-in Capital | Accumulated DeficitCumulative-effect adjustment | Accumulated DeficitBalance as adjusted for the adoption of ASU 2016-13 | Accumulated Deficit | Total Arbor Realty Trust, Inc. Stockholders' Equity6.375% Series D preferred stock | Total Arbor Realty Trust, Inc. Stockholders' Equity6.25% Series E preferred stock | Total Arbor Realty Trust, Inc. Stockholders' Equity6.25% Series F preferred stock | Total Arbor Realty Trust, Inc. Stockholders' EquityCumulative-effect adjustment | Total Arbor Realty Trust, Inc. Stockholders' EquityBalance as adjusted for the adoption of ASU 2016-13 | Total Arbor Realty Trust, Inc. Stockholders' Equity | Non-controlling InterestCumulative-effect adjustment | Non-controlling InterestBalance as adjusted for the adoption of ASU 2016-13 | Non-controlling Interest | 6.375% Series D preferred stock | 6.25% Series E preferred stock | 6.25% Series F preferred stock | Cumulative-effect adjustment | Balance as adjusted for the adoption of ASU 2016-13 | Total |
Balance at Dec. 31, 2018 | $ 89,502,000 | $ 840,000 | $ 879,029,000 | $ (74,133,000) | $ 895,238,000 | $ 170,328,000 | $ 1,065,566,000 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 24,365,084 | 83,987,707 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Issuance of common stock | $ 198,000 | 260,185,000 | 260,383,000 | 260,383,000 | |||||||||||||||||||||||
Issuance of common stock (in shares) | 19,837,000 | ||||||||||||||||||||||||||
Repurchase of common stock | $ (9,000) | (11,565,000) | (11,574,000) | (11,574,000) | |||||||||||||||||||||||
Repurchase of common stock (in shares) | (920,000) | ||||||||||||||||||||||||||
Issuance of common stock from convertible debt | $ 47,000 | 69,232,000 | 69,279,000 | 69,279,000 | |||||||||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 4,695,653 | ||||||||||||||||||||||||||
Issuance of convertible senior unsecured notes, net | $ 0 | $ 0 | 8,684,000 | 0 | 8,684,000 | 0 | 8,684,000 | ||||||||||||||||||||
Extinguishment of convertible senior unsecured notes | (69,510,000) | (69,510,000) | (69,510,000) | ||||||||||||||||||||||||
Stock-based compensation, net | $ 9,000 | 5,871,000 | 5,880,000 | 5,880,000 | |||||||||||||||||||||||
Stock-based compensation, net (in shares) | 945,745 | ||||||||||||||||||||||||||
Issuance of common stock from special dividend | $ 9,000 | 10,070,000 | 10,079,000 | 10,079,000 | |||||||||||||||||||||||
Issuance of common stock from special dividend (in shares) | 901,432 | ||||||||||||||||||||||||||
Issuance of operating partnership units and special voting preferred stock from special dividend | $ 2,000 | 2,000 | 2,476,000 | 2,478,000 | |||||||||||||||||||||||
Issuance of operating partnership units and special voting preferred stock from special dividend (in shares) | 221,666 | ||||||||||||||||||||||||||
Distributions - common stock | (107,846,000) | (107,846,000) | (107,846,000) | ||||||||||||||||||||||||
Distributions - preferred stock | (7,569,000) | (7,569,000) | (7,569,000) | ||||||||||||||||||||||||
Distributions - noncontrolling interest | $ 0 | $ 0 | 0 | 0 | 0 | (23,387,000) | (23,387,000) | ||||||||||||||||||||
Redemption of operating partnership units | $ (3,000) | $ 3,000 | 2,936,000 | 2,936,000 | (4,610,000) | (1,674,000) | |||||||||||||||||||||
Redemption of operating partnership units (in shares) | 391,156 | 258,677 | |||||||||||||||||||||||||
Net income | 128,628,000 | 128,628,000 | 26,610,000 | 155,238,000 | |||||||||||||||||||||||
Balance at Dec. 31, 2019 | $ 89,501,000 | $ 1,097,000 | 1,154,932,000 | (60,920,000) | 1,184,610,000 | 171,417,000 | 1,356,027,000 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 24,195,594 | 109,706,214 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Issuance of common stock | $ 148,000 | 183,287,000 | 183,435,000 | 183,435,000 | |||||||||||||||||||||||
Issuance of common stock (in shares) | 14,790,121 | ||||||||||||||||||||||||||
Repurchase of common stock | $ (23,000) | (21,508,000) | (21,531,000) | (21,531,000) | |||||||||||||||||||||||
Repurchase of common stock (in shares) | (2,285,178) | ||||||||||||||||||||||||||
Issuance of common stock from convertible debt | $ 4,000 | 90,000 | 94,000 | 94,000 | |||||||||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 368,498 | ||||||||||||||||||||||||||
Stock-based compensation, net | $ 6,000 | 2,446,000 | 2,452,000 | 2,452,000 | |||||||||||||||||||||||
Stock-based compensation, net (in shares) | 601,518 | ||||||||||||||||||||||||||
Distributions - common stock | (141,801,000) | (141,801,000) | (141,801,000) | ||||||||||||||||||||||||
Distributions - preferred stock | (7,564,000) | (7,564,000) | (7,564,000) | ||||||||||||||||||||||||
Distributions - noncontrolling interest | (23,744,000) | (23,744,000) | |||||||||||||||||||||||||
Redemption of operating partnership units | $ (29,000) | (2,138,000) | (2,167,000) | (30,066,000) | (32,233,000) | ||||||||||||||||||||||
Redemption of operating partnership units (in shares) | 2,923,461 | ||||||||||||||||||||||||||
Net income | 170,949,000 | 170,949,000 | 25,208,000 | 196,157,000 | |||||||||||||||||||||||
Balance at Dec. 31, 2020 | $ 89,501,000 | $ 89,472,000 | $ 1,097,000 | $ 1,232,000 | $ 1,154,932,000 | 1,317,109,000 | $ (24,106,000) | $ (85,026,000) | (63,442,000) | $ (24,106,000) | $ 1,160,504,000 | 1,344,371,000 | $ (4,501,000) | $ 166,916,000 | 138,314,000 | $ (28,607,000) | $ 1,327,420,000 | 1,482,685,000 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 24,195,594 | 21,272,133 | 109,706,214 | 123,181,173 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Issuance of common stock | $ 222,438,000 | $ 138,886,000 | $ 194,675,000 | $ 291,000 | 514,302,000 | $ 222,438,000 | $ 138,886,000 | $ 194,675,000 | 514,593,000 | $ 222,438,000 | $ 138,886,000 | $ 194,675,000 | 514,593,000 | ||||||||||||||
Issuance of common stock (in shares) | 9,200,000 | 5,750,000 | 8,050,000 | 29,140,369 | |||||||||||||||||||||||
Repurchase of common stock | $ (19,000) | (34,385,000) | (34,404,000) | (34,404,000) | |||||||||||||||||||||||
Repurchase of common stock (in shares) | (1,962,499) | ||||||||||||||||||||||||||
Redemption of preferred stock | $ (89,296,000) | (3,493,000) | (92,789,000) | (92,789,000) | |||||||||||||||||||||||
Redemption of preferred stock (in shares) | (3,711,500) | ||||||||||||||||||||||||||
Issuance of common stock from convertible debt | $ 4,000 | (4,000) | |||||||||||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 386,459 | ||||||||||||||||||||||||||
Stock-based compensation, net | $ 6,000 | 891,000 | 897,000 | 897,000 | |||||||||||||||||||||||
Stock-based compensation, net (in shares) | 616,679 | ||||||||||||||||||||||||||
Distributions - common stock | (191,423,000) | (191,423,000) | (191,423,000) | ||||||||||||||||||||||||
Distributions - preferred stock | (18,410,000) | (18,410,000) | (18,410,000) | ||||||||||||||||||||||||
Distributions - noncontrolling interest | (23,366,000) | (23,366,000) | |||||||||||||||||||||||||
Redemption of operating partnership units | $ (12,000) | (12,000) | (21,593,000) | (21,605,000) | |||||||||||||||||||||||
Redemption of operating partnership units (in shares) | (1,235,538) | ||||||||||||||||||||||||||
Net income | 339,300,000 | 339,300,000 | 38,507,000 | 377,807,000 | |||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ 556,163,000 | $ 1,514,000 | $ 1,797,913,000 | $ 62,532,000 | $ 2,418,122,000 | $ 131,862,000 | $ 2,549,984,000 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2021 | 39,325,095 | 151,362,181 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
6.375% Series D preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% |
6.25% Series E preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | |
6.25% Series F preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income | $ 377,807 | $ 196,157 | $ 155,238 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 7,215 | 7,640 | 7,510 |
Stock-based compensation | 9,929 | 9,046 | 9,515 |
Amortization and accretion of interest and fees, net | (2,487) | 2,964 | 5,045 |
Amortization of capitalized mortgage servicing rights | 58,615 | 49,222 | 48,681 |
Impairment loss on real estate owned | 1,000 | ||
Originations of loans held-for-sale | (6,461,023) | (6,709,375) | (4,564,032) |
Proceeds from sales of loans held-for-sale, net of gain on sale | 6,415,169 | 6,587,728 | 4,189,787 |
(Gain) loss on real estate | (3,693) | 375 | |
Mortgage servicing rights | (130,230) | (165,517) | (90,761) |
Write-off of capitalized mortgage servicing rights from payoffs | 32,741 | 16,757 | 22,425 |
Provision for loss sharing (net of recoveries) | (6,167) | 14,822 | 1,147 |
Provision for credit losses (net of recoveries) | (21,113) | 61,110 | |
Net (charge-offs) recoveries for loss sharing obligations | (2,072) | 427 | (797) |
Deferred tax provision | 10,892 | 4,726 | 150 |
Income from equity affiliates | (34,567) | (76,161) | (10,635) |
Distributions from equity affiliates | 32,953 | 44,579 | 3,724 |
Loss on extinguishment of debt | 3,374 | 3,546 | 7,439 |
Payoffs and paydowns of loans held-for-sale | 2,425 | 179 | 84 |
Changes in operating assets and liabilities | (72,921) | 6,940 | (12,057) |
Net cash provided by (used in) operating activities | 216,847 | 55,165 | (226,537) |
Investing Activities: | |||
Loans and investments funded, originated and purchased, net | (9,209,475) | (2,376,233) | (2,712,354) |
Payoffs and paydowns of loans and investments | 2,370,570 | 1,243,694 | 1,753,691 |
Proceeds from sale of loans and investments | 127,700 | ||
Deferred fees | 72,182 | 18,766 | 22,340 |
Investments in real estate, net | (131) | (475) | |
Proceeds from sale of real estate, net | 8,870 | ||
Proceeds from sale of available-for-sale securities | 9,995 | ||
Contributions to equity affiliates | (48,071) | (892) | (13,522) |
Distributions from equity affiliates | 34,283 | 213 | |
Purchase of securities held-to-maturity, net | (53,511) | (37,926) | (20,000) |
Payoffs and paydowns of securities held-to-maturity | 13,317 | 10,158 | 12,488 |
Due to borrowers and reserves | (57,249) | (32,925) | (37,121) |
Net cash used in investing activities | (6,750,254) | (1,156,624) | (994,740) |
Financing activities: | |||
Proceeds from credit and repurchase facilities | 15,688,353 | 12,986,256 | 8,986,286 |
Paydowns and payoffs of credit and repurchase facilities | (13,433,376) | (12,428,681) | (8,443,275) |
Proceeds from issuance of collateralized loan obligations | 4,281,512 | 668,000 | 1,067,193 |
Payoffs and paydowns of collateralized loan obligations | (889,150) | (283,125) | (529,250) |
Payoff of debt fund | (70,000) | ||
Proceeds from issuance of common stock | 514,593 | 183,585 | 260,383 |
Proceeds from issuance of preferred stock | 555,999 | ||
Proceeds from issuance of senior unsecured notes | 625,000 | 345,750 | 200,000 |
Proceeds from issuance of convertible senior unsecured notes | 264,000 | ||
Extinguishment of convertible senior unsecured notes | (14,300) | (231,940) | |
Settlements of convertible senior unsecured notes | (22,336) | ||
Redemption of preferred stock | (92,789) | ||
Redemption of OP Units | (21,605) | (32,233) | (1,674) |
Payments of withholding taxes on net settlement of vested stock | (9,032) | (6,594) | (3,634) |
Repurchase of common stock | (34,404) | (21,531) | (11,574) |
Distributions to stockholders | (227,062) | (173,109) | (138,802) |
Payment of deferred financing costs | (56,060) | (18,087) | (26,543) |
Net cash provided by financing activities | 6,887,679 | 1,127,895 | 1,391,170 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 354,272 | 26,436 | 169,893 |
Cash, cash equivalents and restricted cash at beginning of period | 536,998 | 510,562 | 340,669 |
Cash, cash equivalents and restricted cash at end of period | 891,270 | 536,998 | 510,562 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents at beginning of period | 339,528 | 299,687 | 160,063 |
Restricted cash at beginning of period | 197,470 | 210,875 | 180,606 |
Cash, cash equivalents and restricted cash at beginning of period | 536,998 | 510,562 | 340,669 |
Cash and cash equivalents at end of period | 404,580 | 339,528 | 299,687 |
Restricted cash at end of period | 486,690 | 197,470 | 210,875 |
Cash, cash equivalents and restricted cash at end of period | 891,270 | 536,998 | 510,562 |
Supplemental cash flow information: | |||
Cash used to pay interest | 175,912 | 144,968 | 167,581 |
Cash used to pay taxes | 37,797 | 35,282 | 19,611 |
Supplemental schedule of non-cash investing and financing activities: | |||
Loans transferred from loans and investment, net to loans held-for-sale | 65,144 | ||
Distributions accrued on preferred stock | $ 6,767 | 629 | 629 |
Cummulative-effect adjustment (for adoption of credit loss standard) | 28,607 | ||
Settlements of convertible senior unsecured notes | 4,778 | ||
Fair value of conversion feature of convertible senior unsecured notes | 94 | 8,453 | |
Special dividend - common stock issued | 10,079 | ||
Issuance of common stock from convertible debt | $ 90 | 69,232 | |
Extinguishment of convertible senior unsecured notes | (69,510) | ||
Redemption of OP Units for common stock | 2,939 | ||
Special dividend - special voting preferred stock and OP Units issued | $ 2,478 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Description of Business | |
Description of Business | Note 1 — Description of Business Arbor is a Maryland corporation formed in 2003. Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, SFR and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages and preferred and direct equity. We also invest in real estate-related joint ventures and may 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 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, and originate and sell finance products through CMBS programs. We pool and securitize the Private Label loans and sell certificates in the securitizations to third-party investors, while retaining the servicing rights and the highest risk bottom tranche certificate of the securitization. Substantially all of our operations are conducted through our operating partnership, ARLP, for which we serve as the indirect general partner, and ARLP’s subsidiaries. We are organized to qualify as a REIT for U.S. federal income tax purposes. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through TRS entities, which are part of our TRS Consolidated Group and are 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. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 our opinion, 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. 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. Our VIEs are described in Note 15. All significant intercompany 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. Actual results could differ from those estimates. Beginning in early 2020, there has been a global outbreak of COVID-19, which had forced many countries, including the United States, to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 has had, and may continue to have, a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Our real estate owned assets previously recorded to real estate owned, net on our consolidated balance sheets is now recorded in other assets for all periods presented. Significant Accounting Policies Cash and Cash Equivalents . Loans, Investments and Securities. 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. Allowance for Credit Losses. Our method for calculating the estimate of expected credit loss considers historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the US economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may adjust historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight-line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e., refinance, sale, bankruptcy) which allows us to determine the amount of the expected loss more accurately and reasonably for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications, and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we consider that loan impaired. We evaluate the 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 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, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses, and remove the impaired loan from the CECL analysis described above. If a 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. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit 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. We adopted ASU 2016-13, which utilizes the CECL methodology on January 1, 2020. We adopted ASU 2016-13 using the modified retrospective method, therefore, the results for reporting periods prior to January 1, 2020 are unadjusted and reported in accordance with previously applicable GAAP. In connection with the adoption of ASU 2016-13, we recorded a $28.6 million increase to accumulated deficit, which was net of a deferred tax asset of $3.6 million. 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. 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. Key rates: Servicing Cost: Estimated Life: 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. Investments in Equity Affiliates . Goodwill and Other Intangible Assets. 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. 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 and above/below market rent 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, 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, 2021, there were no indicators that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2021. Real Estate Owned and Held-For-Sale. 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. Hedging Activities and Derivatives . 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 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. Our Swaps associated with (1) our held-for-sale Agency Business Private Label loans, and (2) our Structured Business SFR loans, do not meet the criteria for hedge accounting and are tied to the five-year and ten-year swap rates. Our Swaps 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 Swaps are recorded through earnings. Revenue Recognition. 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 Property operating income Other income, net Leases. Stock-Based Compensation. 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 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. 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 Description Adoption Date Effect on Financial Statements In December 2019, the FASB issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which 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 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 August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This guidance reduces the number of accounting models for convertible debt instruments. Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive. First quarter of 2022 with early adoption permitted beginning in the first quarter of 2021 We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased the amortization of the debt discount through interest expense. Additionally, this guidance will require us to use the if-converted method for the diluted net income per share calculation for our convertible instruments, regardless of our settlement intent. The adoption of this guidance resulted in an aggregate decrease to our additional paid-in capital of approximately $8.7 million and an aggregate increase to our retained earnings of approximately $6.2 million at January 1, 2022. |
Loans and Investments
Loans and Investments | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Investments | |
Loans and Investments | Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar December 31, 2021 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 11,750,710 97 % 528 4.19 % 23.8 0 % 76 % Mezzanine loans 223,378 2 % 39 7.32 % 56.3 34 % 84 % Preferred equity investments 155,513 1 % 11 5.57 % 38.0 58 % 87 % Other loans (5) 29,394 <1 % 2 4.63 % 48.1 0 % 67 % 12,158,995 100 % 580 4.26 % 24.6 1 % 76 % Allowance for credit losses (113,241) Unearned revenue (64,706) Loans and investments, net $ 11,981,048 December 31, 2020 Bridge loans (4) $ 5,022,509 92 % 263 5.09 % 16.2 0 % 76 % Mezzanine loans 159,242 3 % 29 7.40 % 45.0 32 % 82 % Preferred equity investments 224,928 4 % 14 7.07 % 49.8 64 % 89 % Other loans (5) 68,403 1 % 22 4.95 % 74.8 0 % 69 % 5,475,082 100 % 328 5.23 % 19.2 4 % 77 % Allowance for credit losses (148,329) Unearned revenue (40,885) Loans and investments, net $ 5,285,868 (1) “Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of December 31, 2021 and 2020, bridge loans included 120 and 38 , respectively, of SFR loans with a total gross loan commitment amount of $804.6 million and $309.2 million, respectively, of which $408.2 million and $88.1 million, respectively, was funded. (5) As of December 31, 2021 and 2020, other loans included 2 variable rate SFR permanent loans and 22 SFR permanent loans, respectively. During the first quarter of 2021, the Structured Business transferred 21 fixed rate SFR permanent loans with a UPB of $65.2 million to the Agency Business (all of which were outstanding as of December 31, 2020), which represented all fixed rate SFR permanent loans originated prior to such transfer. Fixed rate SFR permanent loans are reported through the Agency Business beginning in 2021 and classified as held-for-sale. See Note 4 for further details. Concentration of Credit Risk We are subject to concentration risk in that, at December 31, 2021, the UPB related to 31 loans with five different borrowers represented 11% of total assets. At December 31, 2020, the UPB related to 22 loans with five different borrowers represented 12% of total assets. During both 2021 and 2020, 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 18 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. 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. A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of December 31, 2021 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2021 2020 2019 2018 2017 Prior Total LTV Ratio LTV Ration Multifamily: Pass $ 6,025,731 $ 562,885 $ 176,281 $ 6,305 $ 20,300 $ 214 $ 6,791,716 Pass/Watch 2,120,458 587,820 194,698 120,950 32,500 28,800 3,085,226 Special Mention 270,813 321,031 452,980 42,500 — 350 1,087,674 Substandard — 18,827 43,575 15,533 31,110 8,250 117,295 Total Multifamily $ 8,417,002 $ 1,490,563 $ 867,534 $ 185,288 $ 83,910 $ 37,614 $ 11,081,911 1 % 76 % Single-Family Rental: Percentage of portfolio 91 % Pass $ 69,992 $ 18,339 $ — $ — $ — $ — $ 88,331 Pass/Watch 257,602 24,927 — — — — 282,529 Special Mention 2,743 48,481 15,556 — — — 66,780 Total Single-Family Rental $ 330,337 $ 91,747 $ 15,556 $ — $ — $ — $ 437,640 0 % 65 % Land: Percentage of portfolio 4 % Special Mention $ — $ 8,100 $ — $ — $ — $ — $ 8,100 Substandard — 71,018 19,524 — 19,975 127,928 238,445 Total Land $ — $ 79,118 $ 19,524 $ — $ 19,975 $ 127,928 $ 246,545 0 % 96 % Healthcare: Percentage of portfolio 2 % Pass/Watch $ — $ — $ 14,750 $ — $ — $ — $ 14,750 Special Mention — — 51,069 41,500 — — 92,569 Substandard — — — — 39,650 — 39,650 Total Healthcare $ — $ — $ 65,819 $ 41,500 $ 39,650 $ — $ 146,969 0 % 74 % Office: Percentage of portfolio 1 % Special Mention $ — $ 35,410 $ — $ 43,199 $ — $ 1,980 $ 80,589 Total Office $ — $ 35,410 $ — $ 43,199 $ — $ 1,980 $ 80,589 0 % 85 % Student Housing: Percentage of portfolio 1 % Pass $ 25,700 $ — $ — $ — $ — $ — $ 25,700 Special Mention — — 31,100 — — — 31,100 Substandard — 21,500 — — — — 21,500 Total Student Housing $ 25,700 $ 21,500 $ 31,100 $ — $ — $ — $ 78,300 21 % 73 % Hotel: Percentage of portfolio 1 % Pass/Watch $ — $ 4,716 $ — $ — $ — $ — $ 4,716 Special Mention — — 41,000 — — — 41,000 Total Hotel $ — $ 4,716 $ 41,000 $ — $ — $ — $ 45,716 0 % 66 % Retail: Percentage of portfolio <1 % Pass $ — $ — $ 4,000 $ — $ — $ — $ 4,000 Special Mention — — — 18,600 — — 18,600 Substandard — — — — — 3,445 3,445 Total Retail $ — $ — $ 4,000 $ 18,600 $ — $ 3,445 $ 26,045 12 % 33 % Other: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ — $ — $ 13,580 $ — $ 13,580 Doubtful — — — — — 1,700 1,700 Total Other $ — $ — $ — $ — $ 13,580 $ 1,700 $ 15,280 7 % 51 % Percentage of portfolio < 1 % Grand Total $ 8,773,039 $ 1,723,054 $ 1,044,533 $ 288,587 $ 157,115 $ 172,667 $ 12,158,995 1 % 76 % Geographic Concentration Risk As of December 31, 2021, 19% and 12% of the outstanding balance of our loan and investment portfolio had underlying properties in Texas and Florida, respectively. As of December 31, 2020, 19% and 11% 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. Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows (in thousands): Year Ended December 31, 2021 Land Multifamily Office Retail Student Housing Hotel Healthcare Other Total Allowance for credit losses: Beginning balance $ 78,150 $ 36,468 $ 1,846 $ 13,861 $ 4,078 $ 7,759 $ 3,880 $ 2,287 $ 148,329 Provision for credit losses (net of recoveries) (180) (17,761) 6,227 (42) (3,442) (7,751) (1,099) (267) (24,315) Charge-offs — — — (8,000) — — (2,773) — (10,773) Ending balance $ 77,970 $ 18,707 $ 8,073 $ 5,819 $ 636 $ 8 $ 8 $ 2,020 $ 113,241 Year Ended December 31, 2020 Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 67,869 $ — $ 1,500 $ — $ — $ — $ — $ 1,700 $ 71,069 Impact of adopting CECL - January 1, 2020 77 16,322 287 335 68 29 64 112 17,294 Provision for credit losses (net of recoveries) 10,204 20,146 59 13,526 4,010 7,730 3,816 475 59,966 Ending balance $ 78,150 $ 36,468 $ 1,846 $ 13,861 $ 4,078 $ 7,759 $ 3,880 $ 2,287 $ 148,329 Year Ended December 31, 2019 Allowance for credit losses $ 67,869 $ — $ 1,500 $ — $ — $ — $ — $ 1,700 $ 71,069 Our estimate of allowance for credit losses on our structured loans and investments, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects an improving macroeconomic outlook based on recent observable data, including increasing property values, decreases in unemployment rates, low interest rates and other market factors, including continued optimism in the COVID-19 pandemic, partially offset by rising inflation. The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our current expected credit loss (“CECL”) allowance for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. As of December 31, 2021 and 2020, we had outstanding unfunded commitments of $975.2 million and $353.8 million, respectively, that we are obligated to fund as borrowers meet certain requirements. As of December 31, 2021 and 2020, accrued interest receivable related to our loans totaling $58.3 million and $41.6 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets. All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands): December 31, 2021 Wtd. Avg. First Wtd. Avg. Last Carrying Allowance for Dollar LTV Dollar LTV Asset Class UPB (1) Value Credit Losses Ratio Ratio Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,291 5,817 14 % 33 % Office 1,980 1,980 1,500 0 % 51 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 159,940 $ 148,839 $ 86,886 3 % 89 % December 31, 2020 Land $ 134,215 $ 127,829 $ 77,869 0 % 99 % Hotel 110,000 89,613 7,500 0 % 94 % Retail 30,079 28,957 13,851 10 % 75 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,166 2,166 1,500 0 % 71 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,785 $ 254,938 $ 106,265 1 % 94 % (1) Represents the UPB of eight and ten impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2021 and 2020, 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 credit loss as of December 31, 2021, 2020 and 2019. At December 31, 2021, three loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $2.6 million, were classified as non-performing and, at December 31, 2020, A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2021 December 31, 2020 Less Than Greater Than Less Than Greater Than 90 Days 90 Days 90 Days 90 Days UPB Past Due Past Due UPB Past Due Past Due Student Housing $ 21,500 $ — $ 21,500 $ 36,500 $ — $ 36,500 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 920 — 920 Multifamily — — — 17,700 — 17,700 Office — — — 880 — 880 Healthcare — — — 4,625 — 4,625 Total $ 24,120 $ — $ 24,120 $ 62,325 $ — $ 62,325 In addition, we have six loans with a carrying value totaling $121.4 million at December 31, 2021, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.0 million entitle us to a weighted average accrual rate of interest of 7.91%. 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, 2021 and 2020, we had a cumulative allowance for credit losses of $71.4 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. At both December 31, 2021 and 2020, we had no loans contractually past due 90 days or more that are still accruing interest. During 2021, there was no interest income recognized on nonaccrual loans, and in 2020 the amount was de minimis. In 2020, we entered into a loan modification agreement on a $26.5 million bridge loan with an interest rate of LIBOR plus 6.00% with a 2.375% LIBOR floor and a $6.1 million mezzanine loan with a fixed rate of 12% collateralized by a retail property to: (1) reduce the interest rate on both loans to the greater of: (i) LIBOR plus 5.50% and (ii) 6.50% , and (2) to extend the maturity three years to December 2024. A portion of the foregoing interest equal to 2.00% will be deferred to payoff and will be waived if the loan is paid off by December 31, 2022. The loan modification agreement also included a $6.0 million required principal paydown, which occurred at the closing of the modification transaction, and an $8.0 million principal reduction once the borrower deposited an additional reserve of $4.6 million in December 31, 2021, which was charged-off against the previously recorded allowance for credit losses. In 2019, we purchased $50.0 million of a $110.0 million bridge loan, which was collateralized by a hotel property and scheduled to mature in December 2022. In 2020, we recorded a $7.5 million allowance for credit losses due to a reduction in the appraised value of the property. In 2020, we purchased the remaining $60.0 million bridge loan at a discount for $39.9 million, which we determined had experienced a more than insignificant deterioration in credit quality since origination and, therefore, deemed to be a purchased loan with credit deterioration. The $20.1 million discount was classified as a noncredit discount and no portion of the discount was allocated to allowance for credit losses at the date of purchase since the appraised value of the property was greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid off by March 2, 2021. In January 2021, we entered into a second forbearance agreement which temporarily eliminated the pay rate, extended the principal reduction payoff deadline to June 30, 2021 and increased the interest rate to an unaccrued default rate of 9.50%, which was deferred till payoff. In June 2021, we received $95.0 million for full satisfaction of these loans, reversed the $7.5 million allowance for credit losses and recorded interest income of $3.5 million. These two loan modifications were deemed troubled debt restructurings. There were no other loan modifications, refinancing’s and/or extensions during 2021 or 2020 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, 2021 and 2020, we had total interest reserves of $87.4 million and $78.3 million, respectively, on 328 loans and 186 loans, respectively, |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 12 Months Ended |
Dec. 31, 2021 | |
Loans Held-for-Sale, Net | |
Loans Held-for-Sale, Net | Note 4 — Loans Held-for-Sale, Net Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our Private Label loans are generally expected to be sold and securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands): December 31, 2021 December 31, 2020 Private Label $ 507,918 $ 56,186 Fannie Mae 392,876 679,342 Freddie Mac 112,561 180,004 FHA 54,532 53,063 SFR - Fixed Rate 9,352 — 1,077,239 968,595 Fair value of future MSR 19,318 21,600 Unearned discount (2,948) (3,276) Loans held-for-sale, net $ 1,093,609 $ 986,919 During 2021, 2020 and 2019, we sold $6.42 billion, $6.59 billion and $4.40 billion, respectively, of loans held-for-sale and recorded gain on sales, including fees, of $123.0 million, $94.6 million and $65.7 million, respectively. Included in the total loans sold during 2021 and 2020 were Private Label loans totaling $985.1 million and $727.2 million, respectively, which were sold to unconsolidated affiliates of ours who pooled and securitized the loans. We retained the most subordinate class of certificates in the 2021 and 2020 securitizations totaling $85.7 million and $63.6 million, respectively, in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans. At December 31, 2021 and 2020, 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. Subsequent Event. |
Capitalized Mortgage Servicing
Capitalized Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2021 | |
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 acquired MSRs. The weighted average estimated life remaining of our MSRs was 8.5 years and 8.6 years at December 31, 2021 and 2020, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Year Ended December 31, 2021 Year Ended December 31, 2020 Originated Acquired Total Originated Acquired Total Beginning balance $ 336,466 $ 43,508 $ 379,974 $ 221,901 $ 64,519 $ 286,420 Additions 134,116 — 134,116 159,533 — 159,533 Amortization (47,845) (10,770) (58,615) (34,186) (15,036) (49,222) Write-downs and payoffs (27,164) (5,577) (32,741) (10,782) (5,975) (16,757) Ending balance $ 395,573 $ 27,161 $ 422,734 $ 336,466 $ 43,508 $ 379,974 We collected prepayment fees totaling $38.2 million and $12.8 million during 2021 and 2020, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. As of December 31, 2021 and 2020, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded as of December 31, 2021 is as follows (in thousands): Year Amortization 2022 $ 58,814 2023 55,777 2024 53,179 2025 50,610 2026 46,582 Thereafter 157,772 Total $ 422,734 Actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 12 Months Ended |
Dec. 31, 2021 | |
Mortgage Servicing | |
Mortgage Servicing | Note 6 – Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2021 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 19,127,397 71 % Texas 12 % Freddie Mac 4,943,905 18 % New York 11 % Private Label 1,711,326 6 % North Carolina 9 % FHA 985,063 4 % California 8 % SFR - Fixed Rate 191,698 1 % Georgia 6 % Total $ 26,959,389 100 % Florida 6 % New Jersey 6 % Other (2) 42 % Total 100 % December 31, 2020 Fannie Mae $ 18,268,268 74 % Texas 16 % Freddie Mac 4,881,080 20 % New York 9 % FHA 752,116 3 % North Carolina 9 % Private Label 726,992 3 % California 9 % Total $ 24,628,456 100 % Florida 7 % Georgia 6 % New Jersey 4 % Other (2) 40 % 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, 2021 and 2020, our weighted average servicing fee was 44.9 basis points and 45.4 basis points, respectively. At December 31, 2021 and 2020, we held total escrow balances of $1.99 billion and $1.29 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $682.5 million and $867.6 million at December 31, 2021 and 2020, 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. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 12 Months Ended |
Dec. 31, 2021 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 7 – Securities Held-to-Maturity Agency Private Label Certificates. In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. As of December 31, 2021, we retained APL certificates with an initial face value of $149.4 million, which were purchased at a discount for $91.4 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 4.12% and have an estimated weighted average remaining maturity of 8.5 years. The weighted average effective interest rate was 9.11% and 10.15% at December 31, 2021 and 2020, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $3.6 million is estimated to mature after one year through five years and $145.8 million is estimated to mature after five years through ten years. 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 ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. As of December 31, 2021, 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 6.2 years. The weighted average effective interest rate was 11.32% and 10.85% at December 31, 2021 and 2020, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $11.2 million is estimated to mature within one year, $28.8 million is estimated to mature after one year through five years, $3.3 million is estimated to mature after five years through ten years and $18.1 million is estimated to mature after ten years. A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain/(Loss) Fair Value Credit Losses December 31, 2021 APL certificates $ 149,368 $ 92,869 $ 5,007 $ 97,876 $ 1,422 B Piece bonds 61,360 47,615 4,420 52,035 331 Total $ 210,728 $ 140,484 $ 9,427 $ 149,911 $ 1,753 December 31, 2020 APL certificates $ 63,627 $ 37,685 $ (2,105) $ 35,580 $ 1,023 B Piece bonds 76,497 57,839 709 58,548 621 Total $ 140,124 $ 95,524 $ (1,396) $ 94,128 $ 1,644 A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands): Year Ended December 31, 2021 APL B Piece Certificates Bonds Total Beginning balance $ 1,023 $ 621 $ 1,644 Provision for credit loss expense/(reversal) 399 (290) 109 Ending balance $ 1,422 $ 331 $ 1,753 The allowance for credit losses on our held-to-maturity securities was estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities. The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities. As of December 31, 2021, no other-than-temporary impairment was recorded on our held-to-maturity securities. We recorded interest income (including the amortization of discount) related to these investments of $13.2 million, $9.7 million and $9.9 million during 2021, 2020 and 2019, respectively. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
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 these investments is as follows (in thousands): UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates December 31, 2021 December 31, 2020 December 31, 2021 Arbor Residential Investor LLC $ 65,756 $ 59,150 $ — AMAC Holdings III LLC 13,772 10,308 — Fifth Wall Ventures III 5,409 — — North Vermont Avenue 2,419 2,496 — Lightstone Value Plus REIT L.P. 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 89,676 $ 74,274 $ 1,687 Arbor Residential Investor LLC (“ARI”). AMAC Holdings III LLC (“AMAC III”). Fifth Wall Ventures III. North Vermont Avenue. Lightstone Value Plus REIT L.P. / JT Prime. West Shore Café. Lexford Portfolio. East River Portfolio. Tapestry on the River. Emerson at Forney. Century Summerfield Apartments. See Note 18 for details of certain investments described above. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 9 — Goodwill and Other Intangible Assets Goodwill. Other Intangible Assets. December 31, 2021 December 31, 2020 Gross Gross Carrying Accumulated Carrying Accumulated Value Amortization Total Value Amortization Total Finite ‑ lived intangible assets: Broker relationships $ 25,000 $ (17,057) $ 7,943 $ 25,000 $ (13,932) $ 11,068 Borrower relationships 14,400 (7,860) 6,540 14,400 (6,420) 7,980 Below market leases 4,010 (3,359) 651 4,010 (3,233) 777 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 $ 72,410 $ (28,276) $ 44,134 $ 72,410 $ (23,585) $ 48,825 The amortization expense recorded for these intangible assets were $4.7 million, $5.3 million and $5.5 million during 2021, 2020 and 2019, respectively. At December 31, 2021, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated amortization expense for each of the succeeding five years are as follows ($ in thousands): Estimated Amortization Expense for the Years Ending December 31, Wtd. Avg. Remaining Life (in years) 2022 2023 2024 2025 2026 Finite ‑ lived intangible assets: Broker relationships 2.5 $ 3,125 $ 3,125 $ 1,693 $ — $ — Borrower relationships 4.5 1,440 1,440 1,440 1,440 780 Below market leases 5.2 126 126 126 126 126 3.5 $ 4,691 $ 4,691 $ 3,259 $ 1,566 $ 906 See Note 20 for details of goodwill and other intangible assets by segment. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Debt Obligations | |
Debt Obligations | Note 10 — Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): December 31, 2021 December 31, 2020 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 $2.00B joint repurchase facility $ 1,490,434 $ 1,486,380 $ 1,877,930 2.56 % $ 682,958 $ 681,006 $ 1,054,562 2.55 % $1.00B repurchase facility 676,608 675,415 937,880 2.04 % 192,193 191,622 259,559 2.99 % $450M repurchase facility 397,842 397,272 511,269 1.89 % — — — — $398.7M repurchase facility (2) 242,034 241,450 289,956 3.04 % 71,656 71,627 87,242 2.73 % $325M repurchase facility 294,145 293,700 385,337 1.76 % 31,780 31,780 40,551 1.92 % $225M credit facility 28,213 27,826 42,270 2.79 % 23,857 23,606 31,809 4.06 % $200M credit facility 177,599 177,406 236,538 1.70 % 39,389 39,346 47,912 2.24 % $153.9M loan specific credit facilities 153,937 153,727 214,300 3.14 % 148,798 148,615 198,550 3.03 % $50M credit facility 29,200 29,194 36,500 2.13 % 16,002 15,992 21,300 2.17 % $30M working capital facility — — — — 30,000 30,000 — 3.55 % $25M credit facility 1,235 1,235 1,900 4.06 % — — — — $25M credit facility 10,285 10,218 14,773 2.38 % 9,539 9,323 14,340 2.43 % $1M master security agreement 635 635 — 4.01 % 1,441 1,441 — 4.10 % Repurchase facility - securities (3) 30,849 30,849 — 3.40 % 38,487 38,487 — 3.47 % Structured Business total $ 3,533,016 $ 3,525,307 $ 4,548,653 2.34 % $ 1,286,100 $ 1,282,845 $ 1,755,825 2.73 % Agency Business $750M ASAP agreement $ 182,130 $ 182,130 $ 182,140 1.40 % $ 301,455 $ 301,455 $ 302,491 1.40 % $500M joint repurchase facility 399,470 395,317 475,360 2.11 % 43,132 42,808 56,186 2.07 % $500 M repurchase facility 236,527 236,429 236,527 1.58 % 174,555 174,515 174,555 1.64 % $200M credit facility 115,351 115,304 115,351 1.60 % 294,815 294,732 296,698 1.30 % $150M credit facility 16,657 16,544 16,657 1.51 % 49,754 49,632 49,754 1.65 % $50M credit facility 9,295 9,295 9,295 1.40 % 88,911 88,896 88,911 1.65 % $1.3M repurchase facility (2) 1,253 1,253 1,477 3.00 % — — — — Agency Business total $ 960,683 $ 956,272 $ 1,036,807 1.75 % $ 952,622 $ 952,038 $ 968,595 1.48 % Consolidated total $ 4,493,699 $ 4,481,579 $ 5,585,460 2.21 % $ 2,238,722 $ 2,234,883 $ 2,724,420 2.20 % (1) The debt carrying value for the Structured Business at December 31, 2021 and 2020 was net of unamortized deferred finance costs of $7.7 million and $3.3 million, respectively. The debt carrying value for the Agency Business at December 31, 2021 and 2020 was net of unamortized deferred finance costs of $4.4 million and $0.6 million, respectively. (2) A portion of this repurchase facility was used to finance a $1.3 million fixed rate SFR permanent loan reported through our Agency Business. (3) These repurchase facilities are subject to margin call provisions associated with changes in interest spreads. As of December 31, 2021 and 2020, these facilities were collateralized by B Piece bonds with a carrying value of $47.6 million and $57.8 million, respectively, and an SFR bond with a carrying value of $10.0 million at December 31, 2020, which are held by our Agency Business. Effective January 1, 2022, several of our credit and repurchase facilities, in both our Structured Business and Agency Business, converted from a LIBOR-based interest rate to a SOFR-based interest rate for new financings. Existing financings will continue to be at a LIBOR-based interest rate. Generally, our credit and repurchase facilities have extension options that are at the discretion of the banking institutions in which we have long standing relationships with. These facilities typically renew annually and also include a “wind-down” feature. Joint Repurchase Facility. We have a $2.50 billion joint repurchase facility, which is shared between the Structured Business and the Agency Business, which matures in March 2024 with a one-year extension option. This facility is used to finance structured loans and Private Label loans. The interest rate under the facility is determined on a loan-by-loan basis and may include a floor equal to a pro rata share of the floors included in our originated loans. The facility has a maximum advance rate of 80% on structured loans and 85% on Private Label loans and has a $150.0 million over advance available that bears interest at a rate of the applicable benchmark plus 5.75% . The over advance is available through March 2022. 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. At December 31, 2021 and 2020, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 2.51% and 2.97%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facilities, working capital facility and the master security agreement used to finance leasehold and capital expenditure improvements at our corporate office, was 77% and 69% at December 31, 2021 and 2020, respectively. We have a $1.00 billion We have a $450.0 million repurchase facility to finance bridge loans that bears an interest rate ranging from LIBOR plus 1.75% to 2.25% for multifamily and LIBOR plus 2.00% to 2.75% for non-multifamily. The facility matures in March 2023, with three one-year extension options through March 2026. We have a $400.0 million repurchase facility to finance SFR properties that bears interest at a rate ranging from SOFR plus 1.75% to 2.25% with a 0.25% SOFR floor, depending on the loan performance, and matures in December 2022. We have a $200.0 million repurchase facility to finance multifamily bridge loans that the interest rate is determined on a loan-by-loan basis and matures in October 2023, with a one-year extension option. The facility was temporarily increased to $325.0 million, which expires in April 2022. We have a $225.0 million credit facility to finance SFR properties that bears interest at a rate of LIBOR plus 2.50%, with an all-in floor rate range of 2.75% to 3.85%, depending on our deposit balance. The facility matures in October 2022, with a one-year extension option. We have a $200.0 million credit facility to finance bridge loans that matures in July 2022 and bears interest at a rate of SOFR plus 1.61% for multifamily, SOFR plus 2.31% for independent living and SOFR plus 2.56% for assisted living. This facility includes a $25.0 million sublimit to finance healthcare related loans. We have several loan specific credit facilities totaling $153.9 million used to finance individual bridge loans. The facilities bear interest at rates ranging from LIBOR plus 2.20% to 2.40%, fixed rates ranging from 3.00% to 4.00%, and the greater of the prime rate or 3.25% and mature between February 2022 and October 2024. We have a $50.0 million credit facility to finance multifamily loans that bears interest at a rate of LIBOR plus 2.00% and matures in April 2022. We have a $30.0 million unsecured working capital line of credit that bears interest at a rate of LIBOR plus 3.25% with a 0.25% LIBOR floor. This line matures in February 2022 and is typically renewed annually. We have a $25.0 million credit facility to finance SFR properties that bears interest at a rate of LIBOR plus 2.50%, with an all-in floor rate of 3.85%, and which matures in October 2022. We have a $25.0 million credit facility used to purchase loans that bears interest at a rate of SOFR plus 2.35% and matures in June 2022, with a one-year extension option. We have a note payable under a master security agreement that was used to finance capital expenditures. The note bears interest at a fixed rate of 4.01% and matures in December 2022. We have an uncommitted repurchase facility that is 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. This facility bears interest at rate of LIBOR plus 3.25% with a 0.25% LIBOR floor and has no stated maturity date. Agency Business. 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 SOFR plus 1.26% with a 0.25% SOFR floor. We have a $500.0 million repurchase facility that bears interest at a rate of SOFR plus 1.48% and matures in November 2022. We have a $200.0 million credit facility that bears interest at a rate of LIBOR plus 1.35% with a 0.25% LIBOR floor and matures in March 2022. We have a $150.0 million credit facility that bears interest at a rate of SOFR plus 1.46% and matures in July 2022. This facility includes a $50.0 million sublimit for principal and interest advances we make as the primary servicer to Fannie Mae in connection with potential delinquent loans under the Fannie Mae forbearance program, which bears interest at a rate of SOFR plus 1.86%. We have a $50.0 million credit facility that bears interest at a rate of LIBOR plus 1.30% and matures in September 2022. 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 2023 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, 2021, the letters of credit outstanding include $45.0 million for the Fannie Mae DUS program and $5.0 million for the Freddie Mac SBL program. CLOs We account for CLO transactions on our consolidated balance sheet as financing facilities. Our CLOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us. Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2021 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO 17 $ 1,714,125 $ 1,705,549 1.81 % $ 1,914,280 $ 1,903,997 $ 118,520 CLO 16 1,237,500 1,230,093 1.44 % 1,444,573 1,436,743 — CLO 15 674,412 669,723 1.49 % 785,761 782,682 15,750 CLO 14 655,475 650,947 1.45 % 717,396 715,154 53,342 CLO 13 668,000 665,006 1.54 % 740,369 738,265 48,543 CLO 12 534,193 531,939 1.62 % 557,249 555,974 35,635 CLO 10 441,000 439,553 1.57 % 485,460 483,995 57,706 Total CLOs $ 5,924,705 $ 5,892,810 1.59 % $ 6,645,088 $ 6,616,810 $ 329,496 December 31, 2020 CLO 13 $ 668,000 $ 663,804 1.58 % $ 768,664 $ 765,923 $ 43 CLO 12 534,193 530,673 1.66 % 628,935 627,262 2,005 CLO 11 533,000 529,859 1.61 % 555,157 553,286 92,395 CLO 10 441,000 438,442 1.61 % 522,132 520,507 25,537 CLO 9 356,150 354,531 1.53 % 457,903 456,656 18,703 Total CLOs $ 2,532,343 $ 2,517,309 1.60 % $ 2,932,791 $ 2,923,634 $ 138,683 (1) Debt carrying value is net of $31.9 million and $15.0 million of deferred financing fees at December 31, 2021 and 2020, respectively. (2) At December 31, 2021 and 2020, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 1.86% and 1.93% , respectively. (3) As of December 31, 2021 and 2020, there was no collateral deemed a “credit risk” as defined by the CLO indentures. (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 $133.7 million and $49.5 million at December 31, 2021 and 2020, respectively. CLO 17. In December 2021, we completed CLO 17, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.91 billion. Of the total CLO notes issued, $1.71 billion were investment grade notes issued to third-party investors and $194.3 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 $1.79 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two -and-a-half-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 $315.0 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 $2.10 billion, representing leverage of 82% . We retained a residual interest in the portfolio with a notional amount of $385.9 million, including the $194.3 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.68% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 16. In September 2021, we completed CLO 16, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.37 billion. Of the total CLO notes issued, $1.24 billion were investment grade notes issued to third-party investors and $135.0 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 $1.19 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two -and-a-half-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 $313.0 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 $1.50 billion, representing leverage of 83% . We retained a residual interest in the portfolio with a notional amount of $262.5 million, including the $135.0 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.31% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 15. In June 2021, we completed CLO 15, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $747.8 million. Of the total CLO notes issued, $674.4 million were investment grade notes issued to third-party investors and $73.4 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 $653.0 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two -and-a-half-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 $162.0 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 $815.0 million, representing leverage of 83% . We retained a residual interest in the portfolio with a notional amount of $140.6 million, including the $73.4 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.37% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 14. In March 2021, we completed CLO 14, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $724.2 million. Of the total CLO notes issued, $655.5 million were investment grade notes issued to third-party investors and $68.7 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 $635.2 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a two -and-a-half-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 $149.8 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 $785.0 million, representing leverage of 84% . We retained a residual interest in the portfolio with a notional amount of $129.5 million, including the $68.7 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.33% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 13. In 2020, we completed CLO 13, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $738.0 million. Of the total CLO notes issued, $668.0 million were investment grade notes issued to third-party investors and $70.0 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 $640.5 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 $159.5 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 $800.0 million, representing leverage of 84% . We retained a residual interest in the portfolio with a notional amount of $132.0 million, including the $70.0 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.41% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 12. In 2019, we completed CLO 12, issuing eight tranches of CLO notes through two 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 10. In 2018, we completed CLO 10, issuing seven tranches of CLO notes through two 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 we 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 11 and CLO 9. CLO 8. CLO 7 and CLO 6. Subsequent Event. Luxembourg Debt Fund In 2020, we completed the unwind of the debt fund and redeemed all the outstanding notes with a portion of the proceeds from our senior unsecured notes issued in March 2020 described below and recorded a loss on extinguishment of debt of $1.6 million, which was primarily comprised of deferred financing fees. The debt fund was a VIE for which we were the primary beneficiary and was consolidated in our financial statements. Senior Unsecured Notes A summary of our senior unsecured notes is as follows (in thousands): Senior December 31, 2021 December 31, 2020 Unsecured Issuance Carrying Wtd. Avg. Carrying Wtd. Avg. Notes Date Maturity UPB Value (1) Rate (2) UPB Value (1) Rate (2) 5.00% Notes (3) Dec. 2021 Dec. 2028 $ 180,000 $ 177,105 5.00 % $ — $ — — % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 266,090 4.50 % — — — % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 172,302 5.00 % — — — % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 70,202 8.00 % 70,750 69,793 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,477 4.50 % 275,000 271,994 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,018 4.75 % 110,000 108,668 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,135 5.75 % 90,000 88,751 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 124,216 5.63 % 125,000 123,637 5.63 % $ 1,295,750 $ 1,280,545 5.05 % $ 670,750 $ 662,843 5.29 % (1) At December 31, 2021 and 2020, the carrying value is net of deferred financing fees of $15.2 million and $7.9 million, respectively. (2) At December 31, 2021 and 2020, the aggregate weighted average note rate, including certain fees and costs, was 5.34% and 5.65% , respectively. (3) These notes can be redeemed by us prior to three months before the maturity date, 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 notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. (4) These notes can be redeemed by us at any time prior to the maturity date, 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 notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. In December 2021, we issued $180.0 million aggregate principal amount of 5.00% senior unsecured notes due in 2028 in a private offering. We received net proceeds of $177.2 million from the issuance, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments related to our business and for general corporate purposes. In August 2021, we issued $270.0 million aggregate principal amount of 4.50% senior unsecured notes due in 2026 in a private offering. We received net proceeds of $265.8 million from the issuance, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments related to our business and for general corporate purposes. In April 2021, we issued $175.0 million aggregate principal amount of 5.00% senior unsecured notes due in 2026 in a private offering. We received net proceeds of $172.3 million from the issuance, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments related to our business and for general corporate purposes. In 2020, we issued $40.5 million aggregate principal amount of 8.00% senior unsecured notes due in April 2023 (the “ 8.00% Initial Notes”) in a private placement, and, in June 2020, we issued an additional $30.3 million (the “8.00% Reopened Notes”) which brought the aggregate outstanding principal amount to $70.8 million. The 8.00% Reopened Notes are fully fungible, and rank equally in right of payment, with the 8.00% Initial Notes. We received total proceeds of $69.6 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds from the issuances to repay secured indebtedness, make investments relating to our business and for general corporate purposes. In 2020, we issued $275.0 million aggregate principal amount of 4.50% senior unsecured notes due in March 2027 in a private placement. We received proceeds of $271.8 million from the issuance, after deducting the underwriting discount and other offering expenses. We used a significant portion of the net proceeds to repay secured indebtedness. In 2019, we issued $110.0 million aggregate principal amount of 4.75% senior unsecured notes due in October 2024 in a private placement. We received proceeds of $108.2 million from the issuance, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments and for general corporate purposes. In 2019, we issued $90.0 million aggregate principal amount of 5.75% senior unsecured notes due in April 2024 in a private placement. We received proceeds of $88.2 million from the issuance, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments and for general corporate purposes. In 2018, we issued $100.0 million aggregate principal amount of 5.625% senior unsecured notes due in May 2023 (the “5.625% Initial Notes”) in a private placement, and, in May 2018, we issued an additional $25.0 million (the “5.625% Reopened Notes”) which brought the aggregate outstanding principal amount to $125.0 million. The 5.625% Reopened Notes are fully fungible, and rank equally in right of payment, with the 5.625% 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 5.625% Initial Notes to fully redeem 7.375% senior unsecured notes totaling $97.9 million and the net proceeds from the 5.625% Reopened Notes to make investments and for general corporate purposes. Convertible Senior Unsecured Notes In 2019, we issued $264.0 million in aggregate principal amount of 4.75% convertible senior notes (the “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 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 included 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. As of December 31, 2021, the 4.75% Convertible Notes had a conversion rate of 56.8560 shares, common stock per $1,000 of principal, which represented a conversion price of $17.59 per share of common stock. In July 2021, the remaining $14.3 million principal amount of our 5.25% Convertible Notes matured and were fully settled with $14.3 million of cash and 386,459 shares of common stock. Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible by the holder 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 |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Allowance for Loss-Sharing Obligations | |
Allowance for Loss-Sharing Obligations | Note 11 — 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, 2021 2020 Beginning balance $ 64,303 $ 34,648 Impact of adopting CECL - January 1, 2020 — 14,406 Provisions for loss sharing 44 16,379 Provisions reversal for loan repayments (6,211) (1,557) Recoveries (charge-offs), net (2,072) 427 Ending balance $ 56,064 $ 64,303 When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At December 31, 2021 and 2020, guarantee obligations of $34.4 million and $34.0 million, respectively, were included in the allowance for loss-sharing obligations. In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The current expected loss related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio. 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, 2021 and 2020, we had outstanding advances of less than $0.1 million and $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations. At December 31, 2021 and 2020, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $21.7 million and $30.3 million, respectively, and represented 0.11% and 0.17%, respectively, of the Fannie Mae servicing portfolio. At December 31, 2021 and 2020, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.60 billion and $3.41 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, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 12 — 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 and credit risk. We do not use these derivatives for speculative purposes, but are instead using them to manage our interest rate and credit risk exposure. Agency Rate Lock and Forward Sale Commitments. 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 loss on derivative instruments, net in the consolidated statements of Interest Rate and Credit Default Swaps. securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our interest rate swaps typically have a three -month maturity and are tied to the five-year and ten-year swap rates. Our credit default swaps typically have a five-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. The Swaps do not meet the criteria for hedge accounting, 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 2021, we recorded realized and unrealized losses of less than $0.1 million and $1.5 million, respectively, to our Agency Business related to our Swaps. During 2020, we recorded realized losses of $3.0 million and unrealized gains of $0.2 million to our Structured Business and realized losses of $57.1 million and unrealized losses of $1.7 million to our Agency Business related to our Swaps. During 2019, we recorded realized losses of $0.4 million and unrealized gains of $0.2 million to our Structured Business and realized gains of $4.6 million and unrealized gains of $1.5 million to our Agency Business related to our Swaps. The realized and unrealized gains and losses are recorded in loss on derivative instruments, net on our consolidated statements of income. A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): December 31, 2021 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Rate Lock Commitments 2 $ 11,250 Other Assets/Other Liabilities $ 295 $ (33) Forward Sale Commitments 55 571,220 Other Assets/Other Liabilities 1,370 (1,449) Swaps 3,882 388,200 — — $ 970,670 $ 1,665 $ (1,482) December 31, 2020 Rate Lock Commitments 7 $ 136,354 Other Assets/Other Liabilities $ 1,967 $ (231) Forward Sale Commitments 114 1,048,763 Other Assets/Other Liabilities 1,925 (990) Swaps 453 45,300 — — $ 1,230,417 $ 3,892 $ (1,221) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value | |
Fair Value | Note 13 — 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, 2021 December 31, 2020 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 12,158,995 $ 11,981,048 $ 12,181,194 $ 5,475,082 $ 5,285,868 $ 5,428,141 Loans held-for-sale, net 1,077,239 1,093,609 1,117,085 968,595 986,919 1,007,294 Capitalized mortgage servicing rights, net n/a 422,734 477,323 n/a 379,974 415,495 Securities held-to-maturity, net 210,728 140,484 149,911 140,124 95,524 94,128 Derivative financial instruments 280,654 1,665 1,665 865,975 3,892 3,892 Financial liabilities: Credit and repurchase facilities $ 4,493,699 $ 4,481,579 $ 4,484,107 $ 2,238,722 $ 2,234,883 $ 2,235,668 Collateralized loan obligations 5,924,705 5,892,810 5,914,453 2,532,343 2,517,309 2,495,195 Senior unsecured notes 1,295,750 1,280,545 1,301,708 670,750 662,843 670,117 Convertible senior unsecured notes, net 264,000 259,385 294,690 278,300 267,973 280,636 Junior subordinated notes 154,336 142,382 101,698 154,336 141,656 99,594 Derivative financial instruments 301,816 1,482 1,482 319,142 1,221 1,221 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. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. 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. 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. Loans held-for-sale, net. Consists of originated loans that are generally expected to be 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. Securities held-to-maturity, net. Derivative financial instruments. Credit and repurchase facilities. Collateralized loan obligations and junior subordinated notes. Senior unsecured notes. Convertible senior unsecured notes, net. We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels as of December 31, 2021 (in thousands): Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 1,665 $ 1,665 $ — $ 1,370 $ 295 Financial liabilities: Derivative financial instruments $ 1,482 $ 1,482 $ — $ 1,482 $ — 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, 2021 (in thousands): Fair Value Measurements Using Fair Net Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 61,953 $ 61,953 $ — $ — $ 61,953 (1) We had an allowance for credit losses of $86.9 million relating to eight impaired loans with an aggregate carrying value, before loan loss reserves, of $148.8 million at December 31, 2021. Loan impairment assessments. Quantitative information about Level 3 fair value measurements at December 31, 2021 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Land $ 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,473 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Discount rate 11.00 % Office 480 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 295 Discounted cash flows W/A discount rate 13.31 % 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, 2021 2020 2019 Derivative assets and liabilities, net Beginning balance $ 1,967 $ 1,066 $ 324 Settlements (112,836) (164,654) (83,992) Realized gains recorded in earnings 110,869 163,588 83,668 Unrealized gains recorded in earnings 295 1,967 1,066 Ending balance $ 295 $ 1,967 $ 1,066 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 Value December 31, 2021 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 11,250 $ 295 $ (29) $ 266 Forward sale commitments 571,220 — 29 29 Loans held-for-sale, net (1) 1,077,239 19,386 — 19,386 Total $ 19,681 $ — $ 19,681 (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, 2021 (in thousands): Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 11,981,048 $ 12,181,194 $ — $ — $ 12,181,194 Loans held-for-sale, net 1,093,609 1,117,085 — 1,097,699 19,386 Capitalized mortgage servicing rights, net 422,734 477,323 — — 477,323 Securities held-to-maturity, net 140,484 149,911 — — 149,911 Financial liabilities: Credit and repurchase facilities $ 4,481,579 $ 4,484,107 $ — $ 956,272 $ 3,527,835 Collateralized loan obligations 5,892,810 5,914,453 — — 5,914,453 Senior unsecured notes 1,280,545 1,301,708 1,301,708 — — Convertible senior unsecured notes, net 259,385 294,690 — 294,690 — Junior subordinated notes 142,382 101,698 — — 101,698 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 — Commitments and Contingencies Impact of COVID-19. The magnitude and duration of COVID-19 and its impact on our business and on our borrowers is uncertain and will mostly depend on future events, which cannot be predicted. As this pandemic continues and if economic conditions deteriorate, it may have long-term impacts on our financial position, results of operations and cash flows. See Item 1A. Risk Factors and Note 2 for further discussion of COVID-19. 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, 2021, we were required to maintain at least $18.8 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, 2021, we met the restricted liquidity requirement with a $45.0 million letter of credit and $18.7 million of cash collateral. As of December 31, 2021, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $43.0 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, 2021, 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, 2021. 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 12 and Note 13. Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2022 $ 3,360,731 $ 8,342 $ 3,369,073 2023 1,886,918 8,067 1,894,985 2024 2,925,345 7,929 2,933,274 2025 1,109,257 7,978 1,117,235 2026 2,210,054 8,282 2,218,336 Thereafter 640,185 26,098 666,283 Total $ 12,132,490 $ 66,696 $ 12,199,186 As of December 31, 2021 and 2020, our leases had remaining lease terms of 0.1 – 9.0 years and 0.5 – 10.0 years, respectively, with a weighted average remaining lease term of 8.2 years and 9.0 years, respectively, and a weighted average discount rate of 4.0% and 4.9% , respectively. We recorded lease expense of $9.3 million, $6.2 million and $6.1 million during 2021, 2020 and 2019, respectively. Unfunded Commitments. million as of December 31, 2021 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. 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 was removed to the Bankruptcy Court. Currently, there is just a single case in Bankruptcy Court. The lawsuits all alleged, 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 named as defendants Arbor ESH II, LLC, In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, 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 from the lawsuits, none of whom are related to us, 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 Trust’s 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 to amend 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 moved to dismiss the referenced remaining actions in December 2013. After supplemental briefing and multiple adjourned conferences, in August 2020, the Court issued a decision granting our motion to dismiss in part, dismissing 9 of the 17 counts. The Court permitted claims against director designees to proceed on theories of authorization of illegal dividends and breach of fiduciary duty. The Court permitted claims against the defendant entities, including our affiliated entities, to proceed on theories of constructive fraudulent transfer and fraudulent transfer under state and federal law. Moreover, the Court affirmatively dismissed four counts against the defendant entities to the extent they are based on distributions from certain so-called LIBOR Floor Certificates. According to the amended complaint, the total LIBOR Floor Certificate transfers were $74.0 million in value. As a result, with what remains of the amended complaint, total possible liability against the affiliated entities has correspondingly fallen, whereas total possible liability against the director designees remains at approximately $139.0 million. The parties have stipulated to a schedule for discovery and we intend to vigorously defend against the remaining claims. 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. Due to Borrowers. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | Note 15 — 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. Our CLO 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 to third parties by the CLOs, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the CLOs as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated CLOs are as follows (in thousands): December 31, 2021 December 31, 2020 Assets: Restricted cash $ 466,523 $ 188,226 Loans and investments, net 6,616,809 2,923,634 Other assets 61,474 22,587 Total assets $ 7,144,806 $ 3,134,447 Liabilities: Collateralized loan obligations $ 5,892,810 $ 2,517,309 Other liabilities 9,813 2,755 Total liabilities $ 5,902,623 $ 2,520,064 Assets held by the CLOs are restricted and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to us and can only be satisfied from each respective asset pool. See Note 10 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. Unconsolidated VIEs A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of December 31, 2021 is as follows (in thousands): Type Carrying Amount (1) Loans $ 466,811 APL certificates 94,291 B Piece bonds 47,946 Equity investments 20,560 Agency interest only strips 542 Total $ 630,150 (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2021, $129.8 million of loans to VIEs had corresponding loan loss reserves of $79.4 million. The maximum loss exposure as of December 31, 2021 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $4.35 billion at December 31, 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Equity | Note 16 — Equity Preferred Stock. In August 2021, we completed a public offering of 5,750,000 shares of 6.25% Series E cumulative redeemable preferred stock with a liquidation preference of $25.00 per share, generating net proceeds of $139.1 million after deducting the underwriting discount and other offering expenses. The proceeds were used to make investments related to our business and for general corporate purposes. The Series E preferred stock is not redeemable by us prior to August 11, 2026 except under circumstances intended to preserve our qualification as a REIT and except upon the occurrence of a change of control. In June 2021, we completed a public offering of 9,200,000 shares of 6.375% Series D cumulative redeemable preferred stock with a liquidation preference of $25.00 per share, generating net proceeds of $222.6 million after deducting the underwriting discount and other offering expenses. We used $93.3 million of the proceeds to fully redeem our Series A, B and C preferred stock. The Series D preferred stock is not redeemable by us prior to June 2, 2026 except under circumstances intended to preserve our qualification as a REIT and except upon the occurrence of a change of control. Subsequent Event. Common Stock. In August 2021, we amended the equity distribution agreement with JMP Securities LLC (“JMP”). In accordance with the terms of the amendment, we may offer and sell up to 20,000,000 shares of our common stock in “At-The-Market” equity offerings through JMP by means of ordinary brokers’ transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. During 2021, we sold 8,230,369 shares of our common stock for net proceeds of $141.8 million. We used $21.1 million of the net proceeds to redeem OP Units from two ACM members. As of December 31, 2021, we had 18,192,510 shares available under the amended agreement. In June 2021, we completed a public offering in which we sold 6,000,000 shares of our common stock for $18.46 per share and received net proceeds of $110.6 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 $11.1 million of the net proceeds from this offering to purchase 600,000 shares of our common stock from ACM at the same price the underwriters paid to purchase the shares. In March 2021, we completed a public offering in which we sold 7,000,000 shares of our common stock for $15.48 per share and received net proceeds of $108.2 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 $12.4 million of the net proceeds from this offering to purchase 800,000 shares of our common stock from our chief executive officer, ACM and certain other executive officers of ours at the same price the underwriters paid to purchase the shares. During 2021, we issued 386,459 shares in connection with the settlements of our 5.25% Convertible Notes. We maintain a share repurchase program providing for the repurchase of up to $100.0 million of our outstanding common stock. The repurchase of our common stock may be made from time to time in the open market, in privately negotiated transactions or in compliance with a Rule 10b5-1 plan based on our stock price, general market conditions, applicable legal requirements and other factors. The program may be discontinued or modified at any time. We did not repurchase shares of our common stock under this program during 2021. As of December 31, 2021, there was $96.1 million available for repurchase under this program. Noncontrolling Interest. Distributions. Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C Series D Series E February 17, 2021 $ 0.33 February 1, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A N/A May 5, 2021 $ 0.34 April 30, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A N/A July 28, 2021 $ 0.35 July 2, 2021 N/A N/A N/A $ 0.25677 N/A October 27, 2021 $ 0.36 October 1, 2021 N/A N/A N/A $ 0.3984375 $ 0.34288 (1) The dividend declared on October 1, 2021 for Series D and E were for July 30, 2021 through October 29, 2021 and August 11, 2021 (the date of issuance) through October 29, 2021, respectively. The dividend declared on July 2, 2021 was for June 2, 2021 through July 29, 2021, the dividend declared on April 30, 2021 was for March 1, 2021 through May 31, 2021 and the dividend declared on February 1, 2021 was for December 1, 2020 through February 28, 2021. As mentioned above, we fully redeemed our Series A, B and C preferred stock in June 2021. Common Stock Preferred Stock E dividends reflect accrued dividends from October 30, 2021 through January 29, 2022. The Series F dividend reflects accrued dividends from October 12, 2021 (the date of issuance) through January 29, 2022. The dividends are payable on January 31, 2022 to preferred stockholders of record on January 15, 2022. We have determined that 100% of the common stock and preferred stock dividends paid during 2021, 2020 and 2019 represented ordinary income to our stockholders for income tax purposes. For stockholders that may be required to report excess inclusion income to the Internal Revenue Service, we will not pass through any excess inclusion income to our stockholders for 2021. As a result, no portion of the 2021 dividends should be treated as excess inclusion income for federal income tax purposes. Deferred Compensation. In 2021, we issued 356,377 shares of restricted common stock to certain employees under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $5.9 million, of which: (1) 116,570 shares with a grant date fair value of $1.9 million were fully vested on the grant date; (2) 101,475 shares with a grant date fair value of $1.7 million will vest on the first anniversary of the grant date; (3) 88,788 shares with a grant date fair value of $1.5 million will vest on the second anniversary of the grant date; (4) 25,479 shares with a grant date fair value of $0.4 million will vest on the third anniversary of the grant date; and (5) 24,065 shares with a grant date fair value of $0.4 million will vest on the fourth anniversary of the grant date. We also issued 28,381 shares of fully vested common stock to the independent members of the Board of Directors under the 2020 Plan with a grant date fair value of $0.5 million. In 2020 and 2019, we granted 314,957 shares and 333,884 shares, respectively, of restricted common stock with a total grant date fair value of $3.4 million and $4.2 million, respectively, to certain employees. 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 2020 and 2019, we granted 52,735 shares and 55,244 shares, respectively, of fully vested common stock with a grant date fair value of $0.5 million and $0.7 million, respectively, to the independent members of our Board of Directors. In April 2021, we entered into a second amended and restated annual incentive agreement (the “2021 annual incentive agreement”) with our chief executive officer, effective January 1, 2021. The terms of the 2021 annual incentive agreement provide for: (1) an annual base salary of $1.2 million; (2) an annual cash payment of $0.8 million; and (3) annual performance cash bonus target opportunities of $2.9 million at target performance, $1.5 million at threshold performance and $4.4 million at maximum performance, with the opportunity to earn an additional $0.7 million annually in the event of extraordinary performance with respect to corporate capital growth goals. The 2021 annual incentive agreement also provides for: (1) a grant with a value of $3.0 million to be made in July 2021, dependent on reaching certain goals relating to the integration of the Acquisition (“Acquisition Related Grant”), which represents the last Acquisition Related Grant; and (2) at our chief executive officer’s option, to be exercised annually for the remainder of the term of the 2021 annual incentive agreement, either (i) a grant with a value of $3.0 million, which will vest in full three years from the date of the grant (“Time Based Vesting Equity Award”) or (ii) a performance based award of restricted stock (“Performance-Based TSR Equity Award”) with an annual value at grant of $12.0 million, relating to our total stockholder return objectives. The Acquisition Related Grant will vest in full on the third anniversary of the grant date. The Performance-Based TSR Equity Award will vest, in whole or in part, based on the attainment of total stockholder return goals over a five-year period. In April 2021, our chief executive officer elected to receive the Time Based Vesting Equity Award option for 2021; therefore, we granted our chief executive officer 184,729 shares of restricted common stock with a grant date fair value of $3.1 million that vest in full in April 2024. In July 2021, we granted our chief executive officer 165,746 shares of performance based restricted stock with a grant date fair value of $3.0 million in connection with the Acquisition Related Grant, which vest in full in July 2024. In addition, 294,985 shares of performance-based restricted stock granted in 2018 vested in the third quarter of 2021, which were net settled for 150,530 common shares. In November 2021, in accordance with the terms of the 2021 annual incentive agreement, our chief executive officer elected to receive the Time Based Vesting Equity Award option for 2022, which he also elected to defer until March 2027, subject to section 409(a) of the Internal Revenue Code. The deferred Time Based Vesting Equity Award will be granted in the form of restricted stock units, will have no voting rights and is eligible to receive dividend equivalents equal to the dividends on our common stock as, and when, declared by our Board of Directors. In 2020 and 2019, we granted our chief executive officer 45,928 shares and 58,738 shares, respectively, of restricted common stock with a grant date fair value of $0.5 million and $0.7 million, respectively, and 275,569 and 352,427 , respectively, of performance-based restricted stock units with a grant date fair value of $0.1 million and $1.7 million, respectively. One quarter of the restricted common stock vest on the grant date and one quarter 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. In 2021 and 2020, previously granted performance-based restricted stock units of 448,980 and 421,348 units, respectively, fully vested based on achieving the performance objectives for the four-year periods ended December 31, 2020 and 2019, respectively. The 448,980 and 421,348 fully vested units were net settled for 229,083 and 215,014 , respectively, of common shares in 2021 and 2020, respectively. In 2020 and 2019, we also granted our chief executive officer 313,152 shares and 246,508 shares, respectively, of performance-based restricted stock with a grant date fair value of $2.9 million and $3.0 million, respectively, as a result of achieving goals related to the integration of the Acquisition. The performance-based restricted stock vest in full three years after the grant date. In 2020, we withheld 175,102 shares from the net settlement of previously granted performance-based restricted stock that vested in 2020 for payment of withholding taxes. During 2021, 2020 and 2019, we recorded total stock-based compensation expense of $9.3 million, $8.6 million and $8.8 million, respectively, to employee compensation and benefits and $0.6 million, $0.5 million and $0.7 million, respectively, to selling and administrative expense. During 2021, a total of 1,102,761 shares of restricted stock and restricted stock units vested with a grant date fair value of $9.6 million. As of December 31, 2021 and 2020, there were 1,257,199 shares and 1,300,568 shares, respectively, of unvested restricted common stock with a grant date fair value of $17.1 At December 31, 2021, total unrecognized compensation cost related to unvested restricted common stock was $8.9 million, which is expected to be recognized ratably over the remaining weighted-average vesting period of 1.9 years. Earnings Per Share. A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows: Year Ended December 31, 2021 2020 2019 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 317,412 $ 317,412 $ 163,395 $ 163,395 $ 121,074 $ 121,074 Net income attributable to noncontrolling interest (2) — 38,507 — 25,208 — 26,610 Net income attributable to common stockholders and noncontrolling interest $ 317,412 $ 355,919 $ 163,395 $ 188,603 $ 121,074 $ 147,684 Weighted average shares outstanding 137,830,691 137,830,691 113,811,471 113,811,471 92,851,327 92,851,327 Dilutive effect of OP Units (2) — 16,818,722 — 19,395,691 — 20,502,128 Dilutive effect of restricted stock units (3) — 933,233 — 718,647 — 1,421,528 Dilutive effect of convertible notes (4) — 506,949 — 43,487 — 1,417,968 Weighted average shares outstanding 137,830,691 156,089,595 113,811,471 133,969,296 92,851,327 116,192,951 Net income per common share (1) $ 2.30 $ 2.28 $ 1.44 $ 1.41 $ 1.30 $ 1.27 (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) Our chief executive officer was granted restricted stock units, 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. Our adoption of ASU 2020-06 on January 1, 2022 changes the way in which we account for our convertible debt, see Note 2 for details. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 17 — 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. We did not have any REIT–federal taxable income, net of dividends paid and net operating loss deductions, for 2021 and 2020, and therefore, have not provided for REIT federal income tax expense in either year. We have elected to retain excess inclusion income rather than passing it through to our stockholders. 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. In 2021 and 2020, the REIT incurred no state income tax expense, while in 2019, the REIT incurred state income tax expense of $0.1 million. Certain of our assets and operations that would not otherwise comply with the REIT requirements, such as the Agency Business and our residential mortgage banking joint venture, are owned or conducted through our taxable REIT subsidiaries (the “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 had federal net operating losses from prior years which has been used against the income from the Agency Business subject to loss limitation rules. For 2021, 2020 and 2019, we recorded a provision for income taxes related to the assets held in the TRS Consolidated Group and the REIT in the amount of $46.3 million, $40.4 million and $15.0 million, respectively.In 2021, a $0.1 million valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets subject to loss limitation rules was released. In 2020, the change in valuation allowance was due to the impact of state tax rate changes. In 2019, a $3.3 million valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets subject to loss limitation rules was released. A summary of our pre-tax GAAP income is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Pre ‑ tax GAAP income: REIT $ 239,356 $ 78,320 $ 94,076 TRS Consolidated Group 184,736 158,230 76,198 Total pre‑tax GAAP income $ 424,092 $ 236,550 $ 170,274 Our provision for income taxes is comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current tax provision: Federal $ 27,453 $ 27,284 $ 12,381 State 7,939 8,383 2,505 Total 35,392 35,667 14,886 Deferred tax provision : Federal $ 8,288 $ 3,932 $ 2,743 State 2,744 780 688 Valuation allowance (139) 14 (3,281) Total 10,893 4,726 150 Total income tax expense $ 46,285 $ 40,393 $ 15,036 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, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % REIT non‑taxable income (11.9) (7.0) (11.3) State and local income taxes, net of federal tax benefit 2.0 3.0 1.5 Change in valuation allowance — — (1.9) Other (0.2) — (0.5) Effective income tax rate 10.9 % 17.0 % 8.8 % The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Expenses not currently deductible $ 25,542 $ 24,603 Loan loss reserves 7,110 7,047 Net operating and capital loss carryforwards 468 691 Valuation allowance (292) (431) Other 372 306 Deferred tax assets, net $ 33,200 $ 32,216 Deferred tax liabilities: Mortgage servicing rights $ 28,672 $ 23,628 Interest in equity affiliates—net 8,179 589 Intangibles 7,243 8,002 Deferred tax liabilities, net $ 44,094 $ 32,219 At December 31, 2021, our TRS Consolidated Group, had $33.2 million of deferred tax assets, net of a $0.3 million valuation allowance. The deferred tax assets consist of expenses not currently deductible, loan loss reserves and net operating loss and capital loss carryforwards. Our TRS Consolidated Group’s deferred tax assets are offset by $44.1 million in deferred tax liabilities consisting of timing differences from mortgage servicing rights, investments in equity affiliates and intangibles. At December 31, 2020, our TRS Consolidated Group, had $32.2 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 and net operating loss and capital loss carryforwards. Our TRS Consolidated Group’s deferred tax assets are offset by $32.2 million in deferred tax liabilities consisting of timing differences from mortgage servicing rights, investments in equity affiliates and intangibles. As of both December 31, 2021 and 2020, the REIT (excluding the TRS Consolidated Group) had no federal net operating loss carryforwards and no capital loss carryforwards. At December 31, 2021, the TRS Consolidated Group had no federal net operating loss carryforwards remaining and capital loss carryforwards of $1.1 million, which will expire through 2023. At December 31, 2020, the TRS Consolidated Group had federal net operating loss carryforwards of $0.5 million and capital loss carryforwards of $1.1 million expiring through 2023. At December 31, 2021 and 2020, the TRS Consolidated Group had state net operating loss carryforwards of $0.2 million and $0.3 million, respectively, which will begin to expire in 2036. The TRS Consolidated Group is currently under audit in certain state and local jurisdictions for tax years 2017-2020. While the impact of the current income tax examinations was undetermined, it is not expected to be material to our consolidated financial statements. We have assessed our tax positions for all open years, which includes 2017-2021, 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 2017 through 2021. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Agreements and Transactions with Related Parties | |
Agreements and Transactions with Related Parties | Note 18 — Agreements and Transactions with Related Parties Support Agreement and Employee Secondment Agreement. and $2.7 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which were reimbursed to us and included in due from related party on the consolidated balance sheets. Other Related Party Transactions. Due to related party was $26.6 million and $2.4 million at December 31, 2021 In December 2021, we invested $4.2 million for 49.3% interest in a limited liability company (“LLC”) which purchased a retail property for $32.5 million and assumed an existing $26.0 million CMBS loan. A portion of the property can potentially be converted to office space, of which we obtain the right to occupy, in part. An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10.0% ownership, is the managing member and holds the right to purchase our interest in the LLC. In October 2021, we entered into a $40.0 million promissory note with ACM to fund a portion of a $67.0 million bridge loan we originated to a third-party to purchase a multifamily property. The promissory note has an interest rate of LIBOR plus 3.0% and was scheduled to mature in April 2022. In December 2021, the borrower repaid the bridge loan in full and we repaid the promissory note. In December 2021, the promissory note was amended to include the funding of an additional asset and the maturity date was extended to May 2022. As of December 31, 2021, we have no outstanding borrowings under the promissory note. Interest expense recorded from this promissory note was $0.2 million for 2021. In March 2021, we originated a $63.4 million bridge loan to a third-party to purchase a multifamily property from a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members, which fund has no continued involvement with the property following the purchase. The loan has an interest rate of LIBOR plus 3.75% with a LIBOR floor of 0.25% and matures in March 2024. Interest income recorded from this loan was $2.1 million for 2021. In 2020, we committed to fund a $32.5 million bridge loan (of which $3.2 million was funded as of December 31, 2021) and made a $3.5 million preferred equity investment in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 21.8% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75% and matures in October 2023 and the preferred equity investment has a fixed rate of 12.0% and matures in October 2023. Interest income recorded from these loans was $0.5 million and less than $0.1 million for 2021 and 2020, respectively. In 2020, we committed to fund a $30.5 million bridge loan and we made a $4.6 million preferred equity investment in a SFR build-to-rent construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9% equity interest in the borrowing entity. The bridge loan (of which $3.5 million was funded as of December 31, 2021) has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75% and matures in May 2023 and the preferred equity investment has a fixed rate of 12.0% and matures in April 2023. Interest income recorded from these loans was $0.6 million and $0.1 million for 2021 and 2020, respectively. We have a $35.0 million bridge loan and a $8.2 million preferred equity interest on an office building. The property is controlled by a third party. The day-to-day operations were previously managed by an entity owned by an immediate family member of our chief executive officer. In September 2021, we entered into a forbearance agreement with the borrower on the outstanding bridge loan to defer all interest owed to payoff. Interest income recorded from these loans was $1.3 million and $1.6 million for 2021 and 2020, respectively. In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. In 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 2021, 2020 and 2019, we reimbursed the aircraft owner $0.2 million, $0.5 million and $0.1 million, respectively, for the flights chartered by our executives pursuant the agreement. In 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 $20.3 million was funded as of December 31, 2021) for an 18% interest in AMAC III. In 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 had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 2.0% and was scheduled to mature in October 2021. In 2019, the related party investors liquidated their equity investment. Interest income recorded from this loan was $1.3 million for 2019. In 2018, we originated a $37.5 million bridge loan, which was used to purchase several multifamily properties. In 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 had an interest rate of LIBOR plus 4.25% with a LIBOR floor of 2.375% and was scheduled to mature in October 2020. In May 2020, the borrower repaid this loan in full. Interest income recorded from this loan was $1.4 million and $2.7 million for 2020 and 2019, respectively. In 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 was scheduled to mature in July 2021. In January 2021, the borrower repaid this loan in full. Interest income recorded from this loan was less than $0.1 million and $1.3 million for 2021 and 2020, respectively. In 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 10.0% and was scheduled to mature in February 2020. In 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 was $0.1 million and $1.8 million for 2020 and 2019, respectively. In 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 was scheduled to mature in June 2021, which was extended to August 2023. Interest income recorded from this loan was $1.3 million for 2021, and $1.4 million for both 2020 and 2019. In 2018, we acquired a $9.4 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 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and was scheduled to mature in January 2021, which was extended to January 2022 and, in September 2021, this loan paid off in full. Interest income recorded from this loan was $0.4 million for 2021, and $0.6 million for both 2020 and 2019. In 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 owned 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 2019, the borrower repaid this loan in full. Interest income recorded from this loan was $1.7 million for 2019. In 2017, we originated two bridge loans totaling $28.0 million on two multifamily properties owned In 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) In 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, 2021. 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 less than $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 had 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 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 had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and the preferred equity investment had a fixed interest rate of 10.0%. The bridge loan and the preferred equity investment paid off in full in May 2019. In 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan 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 Private Label loan bears interest at a fixed rate of 3.1% and the mezzanine loan bears interest at a fixed rate of 9.0% and both loans mature in April 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans was $0.3 million for both 2021 and 2020, and $0.6 million for 2019. 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. 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 2018, the owners of Lexford restructured part of its debt and we originated 12 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 were originated in 2018, had interest rates of LIBOR plus 4.0% and were scheduled to mature in June 2021. During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million and in March 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which bears interest at a fixed rate of 3.3% and matures in March 2030. In May 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.5 million and $9.6 million during 2020 and 2019, respectively. Further, as part of this 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 $1.1 million and $3.5 million during 2020 and 2019, respectively, which were recorded as income from equity affiliates. Separate from the loans we originated in 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, 2021, this debt had an aggregate outstanding balance of $612.9 million and is scheduled to mature between through 2029. Several of our executives, including our chief financial officer, senior 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 35% 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. At December 31, 2021, ACM holds 2,535,870 shares of our common stock and 10,665,530 OP Units, which represents |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Employee Benefits | Note 19 — 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 2021, 2020 and 2019, we recorded $0.8 million, $0.8 million and $0.7 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. The Deferred Comp Plan can be modified or discontinued at any time. All eligible participating employees may defer a portion of their compensation and, depending on the participant eligibility requirements met, we are contractually obligated to: (i) 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; and/or (ii) supply additional life insurance benefits. All employee deferrals vest immediately and the matching contributions, where applicable, vest over a nine-year period beginning after year five. For 2021, 2020 and 2019, there were $2.2 million, $1.8 million and $1.6 million, respectively, of employee deferrals. At December 31, 2021 and 2020, we had recorded liabilities totaling $25.5 million and $18.7 million, respectively, and assets of $15.1 million and $14.1 million, respectively, related to the Deferred Comp Plan, which is included in other liabilities and other assets, respectively, in our consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | |
Segment Information | Note 20 — Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ 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 and stock-based compensation. Year Ended December 31, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 427,039 $ 39,048 $ — $ 466,087 Interest expense 194,435 17,570 — 212,005 Net interest income 232,604 21,478 — 254,082 Other revenue: Gain on sales, including fee-based services, net — 123,037 — 123,037 Mortgage servicing rights — 130,230 — 130,230 Servicing revenue — 133,429 — 133,429 Amortization of MSRs — (58,615) — (58,615) Property operating income 185 — — 185 Loss on derivative instruments, net — (2,684) — (2,684) Other income, net 7,491 75 — 7,566 Total other revenue 7,676 325,472 — 333,148 Other expenses: Employee compensation and benefits 51,225 120,571 — 171,796 Selling and administrative 21,064 24,511 — 45,575 Property operating expenses 718 — — 718 Depreciation and amortization 2,524 4,691 — 7,215 Provision for loss sharing (net of recoveries) — (6,167) — (6,167) Provision for credit losses (net of recoveries) (21,223) 110 — (21,113) Total other expenses 54,308 143,716 — 198,024 Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 185,972 203,234 — 389,206 Loss on extinguishment of debt (3,374) — — (3,374) Gain on real estate 2,466 1,227 — 3,693 Income from equity affiliates 34,567 — — 34,567 Provision for income taxes (5,940) (40,345) — (46,285) Net income 213,691 164,116 — 377,807 Preferred stock dividends 21,888 — — 21,888 Net income attributable to noncontrolling interest — — 38,507 38,507 Net income attributable to common stockholders $ 191,803 $ 164,116 $ (38,507) $ 317,412 Year Ended December 31, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 305,893 $ 33,572 $ — $ 339,465 Interest expense 150,964 18,252 — 169,216 Net interest income 154,929 15,320 — 170,249 Other revenue: Gain on sales, including fee-based services, net — 94,607 — 94,607 Mortgage servicing rights — 165,517 — 165,517 Servicing revenue — 103,607 — 103,607 Amortization of MSRs — (49,222) — (49,222) Property operating income 3,976 — — 3,976 Loss on derivative instruments, net (2,859) (55,476) — (58,335) Other income, net 4,052 57 — 4,109 Total other revenue 5,169 259,090 — 264,259 Other expenses: Employee compensation and benefits 40,292 104,088 — 144,380 Selling and administrative 15,706 21,642 — 37,348 Property operating expenses 4,898 — — 4,898 Depreciation and amortization 2,391 5,249 — 7,640 Provision for loss sharing (net of recoveries) — 14,822 — 14,822 Provision for credit losses (net of recoveries) 59,967 1,143 — 61,110 Total other expenses 123,254 146,944 — 270,198 Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes 36,844 127,466 — 164,310 Loss on extinguishment of debt (3,546) — — (3,546) (Loss) gain on real estate (878) 503 — (375) Income from equity affiliates 76,161 — — 76,161 Provision for income taxes (14,303) (26,090) — (40,393) Net income 94,278 101,879 — 196,157 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 25,208 25,208 Net income attributable to common stockholders $ 86,724 $ 101,879 $ (25,208) $ 163,395 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 Loss on derivative instruments, net (275) (1,687) — (1,962) Other income, net 1,178 — — 1,178 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 99,091 — 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 84,723 — 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 $ 84,723 $ (26,610) $ 121,074 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. December 31, 2021 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 142,771 $ 261,809 $ 404,580 Restricted cash 468,013 18,677 486,690 Loans and investments, net 11,981,048 — 11,981,048 Loans held-for-sale, net — 1,093,609 1,093,609 Capitalized mortgage servicing rights, net — 422,734 422,734 Securities held-to-maturity, net — 140,484 140,484 Investments in equity affiliates 89,676 — 89,676 Goodwill and other intangible assets 12,500 88,260 100,760 Other assets and due from related party 285,600 68,664 354,264 Total assets $ 12,979,608 $ 2,094,237 $ 15,073,845 Liabilities: Debt obligations $ 11,100,429 $ 956,272 $ 12,056,701 Allowance for loss-sharing obligations — 56,064 56,064 Other liabilities and due to related parties 278,726 132,370 411,096 Total liabilities $ 11,379,155 $ 1,144,706 $ 12,523,861 December 31, 2020 Assets: Cash and cash equivalents $ 172,568 $ 166,960 $ 339,528 Restricted cash 188,226 9,244 197,470 Loans and investments, net 5,285,868 — 5,285,868 Loans held-for-sale, net — 986,919 986,919 Capitalized mortgage servicing rights, net — 379,974 379,974 Securities held-to-maturity, net — 95,524 95,524 Investments in equity affiliates 74,274 — 74,274 Goodwill and other intangible assets 12,500 92,951 105,451 Other assets 142,844 53,134 195,978 Total assets $ 5,876,280 $ 1,784,706 $ 7,660,986 Liabilities: Debt obligations $ 4,872,626 $ 952,038 $ 5,824,664 Allowance for loss-sharing obligations — 64,303 64,303 Other liabilities 203,554 85,780 289,334 Total liabilities $ 5,076,180 $ 1,102,121 $ 6,178,301 Year Ended December 31, 2021 2020 2019 Origination Data: Structured Business Bridge loans (1) $ 9,490,402 $ 2,312,061 $ 2,598,658 Mezzanine loans 175,225 45,122 127,784 Preferred equity investments 28,650 31,600 35,130 Other loans (2) 26,238 44,896 41,679 Total new loan originations $ 9,720,515 $ 2,433,679 $ 2,803,251 (1) Bridge loans in 2021 includes 103 SFR loans with a UPB of $389.2 million. During 2021, 2020 and 2019, we committed to fund SFR loans totaling $729.5 million, $261.5 million and $63.2 million, respectively. (2) Other loans in 2021 and 2020 includes 1 and 9 SFR permanent loans with a UPB of $26.2 million and $37.2 million, respectively. Loan payoffs / paydowns $ 2,516,771 $ 1,208,071 $ 1,748,387 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,389,312 $ 5,041,925 $ 3,346,272 Private Label 1,436,853 382,191 401,216 Freddie Mac 1,016,142 960,508 728,317 FHA 430,320 327,345 123,095 SFR - Fixed Rate 136,931 — — CMBS/Conduit — — 211,325 Total $ 6,409,558 $ 6,711,969 $ 4,810,225 Total loan commitment volume $ 6,347,752 $ 6,810,666 $ 4,829,721 Loan Sales Data: Agency Business Fannie Mae $ 3,675,763 $ 4,771,113 $ 3,296,523 Freddie Mac 1,081,702 816,802 786,993 Private Label 985,094 727,154 — FHA 480,275 272,659 106,271 SFR - Fixed Rate 192,335 — — CMBS/Conduit — — 211,325 Total $ 6,415,169 $ 6,587,728 $ 4,401,112 Sales margin (fee-based services as a % of loan sales) 1.92 % 1.44 % 1.49 % MSR rate (MSR income as a % of loan commitments) 2.05 % 2.43 % 1.88 % December 31, 2021 Wtd. Avg. Servicing Wtd. Avg. Life of UPB of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio (basis points) (years) Fannie Mae $ 19,127,397 53.5 8.0 Freddie Mac 4,943,905 27.1 9.3 Private Label 1,711,326 20.0 8.3 FHA 985,063 15.4 21.0 SFR - Fixed Rate 191,698 20.0 6.5 Total $ 26,959,389 44.9 8.8 December 31, 2020 Fannie Mae $ 18,268,268 52.3 8.2 Freddie Mac 4,881,080 27.9 9.9 FHA 752,116 16.3 20.3 Private Label 726,992 20.0 8.7 Total $ 24,628,456 45.4 8.9 |
SCHEDULE IV - LOANS AND OTHER L
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | |
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | l ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Schedule IV — Loans and other Lending Investments DECEMBER 31, 2021 ($ 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 less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2022 ‑ 2026 L+ 2.50% to 6.75 % $ — $ 10,800,896 $ 10,733,582 $ — L Floor 0.10% to 2.50 % Fixed 3.83% to 11.00 % Single‑Family Rental Various IO / PI 2022 ‑ 2025 L+ 3.50% to 6.75 % — 408,246 400,998 — L Floor 0.25% to 2.25 % Fixed 4.23% to 10.00 % Land Various IO 2022 - 2025 L+ 4.00% to 6.00 % — 189,613 111,741 — L Floor 0.15% to 1.66 % Fixed 0.00 % Healthcare Various IO / PI 2022 ‑ 2023 L+ 5.00% to 6.75 % — 146,969 146,823 — L Floor 1.49% to 2.63 % Office Various IO / PI 2022 L+ 3.50 % — 72,390 70,877 — Fixed 0.00 % Student Housing NC IO 2022 ‑ 2023 L+ 4.00% to 4.50 % — 56,800 56,624 — L Floor 0.25% to 1.80 % Hotel Various IO / PI 2022 L+ 3.00% to 6.75 % — 45,716 45,629 — L Floor 0.75 % Retail Various IO 2024 L+ 3.50% to 4.00 % — 16,500 14,105 — L Floor 1.00% to 2.50 % Self Storage MA IO 2022 L+ 3.90 % — 13,580 13,579 — L Floor 1.23 % Total Bridge Loans less than 3% of carrying amount of total loans — 11,750,710 11,593,958 — Total Bridge Loans — 11,750,710 11,593,958 — ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Schedule IV — Loans and other Lending Investments ( Continued ) DECEMBER 31, 2021 ($ 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 2022 - 2031 Fixed 3.50% to 12.95 % 705,547 165,001 159,022 — Land Various IO 2022 L+ 6.00 % — 48,832 48,809 — L Floor 1.66 % Fixed 0.00 % Retail Various IO / PI 2024 L+ 3.50 % 30,389 9,545 6,100 — L Floor 1.00 % Fixed 12.00 % Total Mezzanine Loans 735,936 223,378 213,931 — Preferred Equity Investments: Preferred equity investments less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2022 - 2029 Fixed 2.00% to 14.00 % 482,964 116,014 113,506 — Student Housing AZ IO / PI 2022 Fixed 12.00 % 143,000 21,500 20,894 — Office NY IO 2027 Fixed 0.00 % — 8,199 1,640 — Land TX IO 2023 Fixed 12.00 % — 8,100 7,975 — Commercial NY IO 2022 Fixed 6.00 % 29,792 1,700 — — Total Preferred Equity Investments 655,756 155,513 144,015 — Other Loans: Other loans less than 3% of carrying amount of total loans (6): Single‑Family Rental Various IO / PI 2025 - 2026 L + 4.25% to 4.90 % — 29,394 29,144 — L Floor 0.25 % — 29,394 29,144 — Total Loans $ 1,391,692 $ 12,158,995 $ 11,981,048 $ — (1) IO = Interest Only, PI = Principal and Interest, L = LIBOR. (2) Maturity date does not include possible extensions. (3) References to LIBOR are to one-month LIBOR unless specifically stated otherwise. (4) During 2021, $1.24 billion of loans were extended. (5) The federal income tax basis is approximately $12.16 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, 2021 The following table reconciles our loans and investments carrying amounts for the periods indicated (in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 5,285,868 $ 4,189,960 $ 3,200,145 Additions during period: New loan originations 9,720,515 2,433,679 2,831,822 Loan charge‑offs 10,773 — — Funding of unfunded loan commitments (1) 200,694 133,244 65,531 Accretion of unearned revenue 25,618 13,590 12,083 Recoveries of reserves 24,315 75 — Deductions during period: Loan payoffs and paydowns (2,516,771) (1,243,694) (1,753,693) Reclassification to held-for-sale loans (65,144) — — Unfunded loan commitments (1) (624,519) (127,758) (147,392) Use of loan charge‑offs (10,773) — — Provision for loan losses — (77,335) — Unearned revenue and costs (69,528) (35,893) (18,536) Balance at end of year $ 11,981,048 $ 5,285,868 $ 4,189,960 (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, 2021 | |
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 our opinion, 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. |
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. Our VIEs are described in Note 15. All significant intercompany 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. Actual results could differ from those estimates. Beginning in early 2020, there has been a global outbreak of COVID-19, which had forced many countries, including the United States, to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 has had, and may continue to have, a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Our real estate owned assets previously recorded to real estate owned, net on our consolidated balance sheets is now recorded in other assets for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents . |
Loans, Investments and Securities | Loans, Investments and Securities. 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. |
Allowance for Credit Losses | Allowance for Credit Losses. Our method for calculating the estimate of expected credit loss considers historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the US economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may adjust historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight-line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e., refinance, sale, bankruptcy) which allows us to determine the amount of the expected loss more accurately and reasonably for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications, and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we consider that loan impaired. We evaluate the 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 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, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses, and remove the impaired loan from the CECL analysis described above. If a 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. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit 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. We adopted ASU 2016-13, which utilizes the CECL methodology on January 1, 2020. We adopted ASU 2016-13 using the modified retrospective method, therefore, the results for reporting periods prior to January 1, 2020 are unadjusted and reported in accordance with previously applicable GAAP. In connection with the adoption of ASU 2016-13, we recorded a $28.6 million increase to accumulated deficit, which was net of a deferred tax asset of $3.6 million. |
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. 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. Key rates: Servicing Cost: Estimated Life: 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. |
Investments in Equity Affiliates | Investments in Equity Affiliates . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. 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. 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 and above/below market rent 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, 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, 2021, there were no indicators that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2021. |
Real Estate Owned and Held-For-Sale | Real Estate Owned and Held-For-Sale. 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. |
Hedging Activities and Derivatives | Hedging Activities and Derivatives . 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 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. Our Swaps associated with (1) our held-for-sale Agency Business Private Label loans, and (2) our Structured Business SFR loans, do not meet the criteria for hedge accounting and are tied to the five-year and ten-year swap rates. Our Swaps 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 Swaps are recorded through earnings. |
Revenue Recognition | Revenue Recognition. 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 Property operating income Other income, net |
Leases | Leases. |
Stock-Based Compensation | Stock-Based Compensation. |
Income Taxes | 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 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 In December 2019, the FASB issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which 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 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 In December 2019, the FASB issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which 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 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 August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This guidance reduces the number of accounting models for convertible debt instruments. Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive. First quarter of 2022 with early adoption permitted beginning in the first quarter of 2021 We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased the amortization of the debt discount through interest expense. Additionally, this guidance will require us to use the if-converted method for the diluted net income per share calculation for our convertible instruments, regardless of our settlement intent. The adoption of this guidance resulted in an aggregate decrease to our additional paid-in capital of approximately $8.7 million and an aggregate increase to our retained earnings of approximately $6.2 million at January 1, 2022. |
Loans and Investments (Tables)
Loans and Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Investments | |
Schedule of Structured Business loan and investment portfolio | Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar December 31, 2021 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 11,750,710 97 % 528 4.19 % 23.8 0 % 76 % Mezzanine loans 223,378 2 % 39 7.32 % 56.3 34 % 84 % Preferred equity investments 155,513 1 % 11 5.57 % 38.0 58 % 87 % Other loans (5) 29,394 <1 % 2 4.63 % 48.1 0 % 67 % 12,158,995 100 % 580 4.26 % 24.6 1 % 76 % Allowance for credit losses (113,241) Unearned revenue (64,706) Loans and investments, net $ 11,981,048 December 31, 2020 Bridge loans (4) $ 5,022,509 92 % 263 5.09 % 16.2 0 % 76 % Mezzanine loans 159,242 3 % 29 7.40 % 45.0 32 % 82 % Preferred equity investments 224,928 4 % 14 7.07 % 49.8 64 % 89 % Other loans (5) 68,403 1 % 22 4.95 % 74.8 0 % 69 % 5,475,082 100 % 328 5.23 % 19.2 4 % 77 % Allowance for credit losses (148,329) Unearned revenue (40,885) Loans and investments, net $ 5,285,868 (1) “Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of December 31, 2021 and 2020, bridge loans included 120 and 38 , respectively, of SFR loans with a total gross loan commitment amount of $804.6 million and $309.2 million, respectively, of which $408.2 million and $88.1 million, respectively, was funded. (5) As of December 31, 2021 and 2020, other loans included 2 variable rate SFR permanent loans and 22 SFR permanent loans, respectively. |
Summary of the loan portfolio's internal risk ratings and LTV ratios by asset class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of December 31, 2021 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2021 2020 2019 2018 2017 Prior Total LTV Ratio LTV Ration Multifamily: Pass $ 6,025,731 $ 562,885 $ 176,281 $ 6,305 $ 20,300 $ 214 $ 6,791,716 Pass/Watch 2,120,458 587,820 194,698 120,950 32,500 28,800 3,085,226 Special Mention 270,813 321,031 452,980 42,500 — 350 1,087,674 Substandard — 18,827 43,575 15,533 31,110 8,250 117,295 Total Multifamily $ 8,417,002 $ 1,490,563 $ 867,534 $ 185,288 $ 83,910 $ 37,614 $ 11,081,911 1 % 76 % Single-Family Rental: Percentage of portfolio 91 % Pass $ 69,992 $ 18,339 $ — $ — $ — $ — $ 88,331 Pass/Watch 257,602 24,927 — — — — 282,529 Special Mention 2,743 48,481 15,556 — — — 66,780 Total Single-Family Rental $ 330,337 $ 91,747 $ 15,556 $ — $ — $ — $ 437,640 0 % 65 % Land: Percentage of portfolio 4 % Special Mention $ — $ 8,100 $ — $ — $ — $ — $ 8,100 Substandard — 71,018 19,524 — 19,975 127,928 238,445 Total Land $ — $ 79,118 $ 19,524 $ — $ 19,975 $ 127,928 $ 246,545 0 % 96 % Healthcare: Percentage of portfolio 2 % Pass/Watch $ — $ — $ 14,750 $ — $ — $ — $ 14,750 Special Mention — — 51,069 41,500 — — 92,569 Substandard — — — — 39,650 — 39,650 Total Healthcare $ — $ — $ 65,819 $ 41,500 $ 39,650 $ — $ 146,969 0 % 74 % Office: Percentage of portfolio 1 % Special Mention $ — $ 35,410 $ — $ 43,199 $ — $ 1,980 $ 80,589 Total Office $ — $ 35,410 $ — $ 43,199 $ — $ 1,980 $ 80,589 0 % 85 % Student Housing: Percentage of portfolio 1 % Pass $ 25,700 $ — $ — $ — $ — $ — $ 25,700 Special Mention — — 31,100 — — — 31,100 Substandard — 21,500 — — — — 21,500 Total Student Housing $ 25,700 $ 21,500 $ 31,100 $ — $ — $ — $ 78,300 21 % 73 % Hotel: Percentage of portfolio 1 % Pass/Watch $ — $ 4,716 $ — $ — $ — $ — $ 4,716 Special Mention — — 41,000 — — — 41,000 Total Hotel $ — $ 4,716 $ 41,000 $ — $ — $ — $ 45,716 0 % 66 % Retail: Percentage of portfolio <1 % Pass $ — $ — $ 4,000 $ — $ — $ — $ 4,000 Special Mention — — — 18,600 — — 18,600 Substandard — — — — — 3,445 3,445 Total Retail $ — $ — $ 4,000 $ 18,600 $ — $ 3,445 $ 26,045 12 % 33 % Other: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ — $ — $ 13,580 $ — $ 13,580 Doubtful — — — — — 1,700 1,700 Total Other $ — $ — $ — $ — $ 13,580 $ 1,700 $ 15,280 7 % 51 % Percentage of portfolio < 1 % Grand Total $ 8,773,039 $ 1,723,054 $ 1,044,533 $ 288,587 $ 157,115 $ 172,667 $ 12,158,995 1 % 76 % |
Summary of the changes in the allowance for credit losses for our loan portfolio | A summary of the changes in the allowance for credit losses is as follows (in thousands): Year Ended December 31, 2021 Land Multifamily Office Retail Student Housing Hotel Healthcare Other Total Allowance for credit losses: Beginning balance $ 78,150 $ 36,468 $ 1,846 $ 13,861 $ 4,078 $ 7,759 $ 3,880 $ 2,287 $ 148,329 Provision for credit losses (net of recoveries) (180) (17,761) 6,227 (42) (3,442) (7,751) (1,099) (267) (24,315) Charge-offs — — — (8,000) — — (2,773) — (10,773) Ending balance $ 77,970 $ 18,707 $ 8,073 $ 5,819 $ 636 $ 8 $ 8 $ 2,020 $ 113,241 Year Ended December 31, 2020 Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 67,869 $ — $ 1,500 $ — $ — $ — $ — $ 1,700 $ 71,069 Impact of adopting CECL - January 1, 2020 77 16,322 287 335 68 29 64 112 17,294 Provision for credit losses (net of recoveries) 10,204 20,146 59 13,526 4,010 7,730 3,816 475 59,966 Ending balance $ 78,150 $ 36,468 $ 1,846 $ 13,861 $ 4,078 $ 7,759 $ 3,880 $ 2,287 $ 148,329 Year Ended December 31, 2019 Allowance for credit losses $ 67,869 $ — $ 1,500 $ — $ — $ — $ — $ 1,700 $ 71,069 |
Summary of our loans considered impaired by asset class | All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands): December 31, 2021 Wtd. Avg. First Wtd. Avg. Last Carrying Allowance for Dollar LTV Dollar LTV Asset Class UPB (1) Value Credit Losses Ratio Ratio Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,291 5,817 14 % 33 % Office 1,980 1,980 1,500 0 % 51 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 159,940 $ 148,839 $ 86,886 3 % 89 % December 31, 2020 Land $ 134,215 $ 127,829 $ 77,869 0 % 99 % Hotel 110,000 89,613 7,500 0 % 94 % Retail 30,079 28,957 13,851 10 % 75 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,166 2,166 1,500 0 % 71 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,785 $ 254,938 $ 106,265 1 % 94 % (1) Represents the UPB of eight and ten impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2021 and 2020, respectively. |
Summary of our non-performing loans by asset class | A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2021 December 31, 2020 Less Than Greater Than Less Than Greater Than 90 Days 90 Days 90 Days 90 Days UPB Past Due Past Due UPB Past Due Past Due Student Housing $ 21,500 $ — $ 21,500 $ 36,500 $ — $ 36,500 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 920 — 920 Multifamily — — — 17,700 — 17,700 Office — — — 880 — 880 Healthcare — — — 4,625 — 4,625 Total $ 24,120 $ — $ 24,120 $ 62,325 $ — $ 62,325 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Held-for-Sale, Net | |
Summary of loans held-for-sale, net | December 31, 2021 December 31, 2020 Private Label $ 507,918 $ 56,186 Fannie Mae 392,876 679,342 Freddie Mac 112,561 180,004 FHA 54,532 53,063 SFR - Fixed Rate 9,352 — 1,077,239 968,595 Fair value of future MSR 19,318 21,600 Unearned discount (2,948) (3,276) Loans held-for-sale, net $ 1,093,609 $ 986,919 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) - MSRs | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Year Ended December 31, 2020 Originated Acquired Total Originated Acquired Total Beginning balance $ 336,466 $ 43,508 $ 379,974 $ 221,901 $ 64,519 $ 286,420 Additions 134,116 — 134,116 159,533 — 159,533 Amortization (47,845) (10,770) (58,615) (34,186) (15,036) (49,222) Write-downs and payoffs (27,164) (5,577) (32,741) (10,782) (5,975) (16,757) Ending balance $ 395,573 $ 27,161 $ 422,734 $ 336,466 $ 43,508 $ 379,974 |
Schedule of expected amortization of capitalized MSRs recorded | The expected amortization of capitalized MSRs recorded as of December 31, 2021 is as follows (in thousands): Year Amortization 2022 $ 58,814 2023 55,777 2024 53,179 2025 50,610 2026 46,582 Thereafter 157,772 Total $ 422,734 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
MSRs | |
Product and geographic concentrations | |
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, 2021 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 19,127,397 71 % Texas 12 % Freddie Mac 4,943,905 18 % New York 11 % Private Label 1,711,326 6 % North Carolina 9 % FHA 985,063 4 % California 8 % SFR - Fixed Rate 191,698 1 % Georgia 6 % Total $ 26,959,389 100 % Florida 6 % New Jersey 6 % Other (2) 42 % Total 100 % December 31, 2020 Fannie Mae $ 18,268,268 74 % Texas 16 % Freddie Mac 4,881,080 20 % New York 9 % FHA 752,116 3 % North Carolina 9 % Private Label 726,992 3 % California 9 % Total $ 24,628,456 100 % Florida 7 % Georgia 6 % New Jersey 4 % Other (2) 40 % 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, 2021 | |
Securities Held-to-Maturity | |
Schedule of securities held-to-maturity | A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain/(Loss) Fair Value Credit Losses December 31, 2021 APL certificates $ 149,368 $ 92,869 $ 5,007 $ 97,876 $ 1,422 B Piece bonds 61,360 47,615 4,420 52,035 331 Total $ 210,728 $ 140,484 $ 9,427 $ 149,911 $ 1,753 December 31, 2020 APL certificates $ 63,627 $ 37,685 $ (2,105) $ 35,580 $ 1,023 B Piece bonds 76,497 57,839 709 58,548 621 Total $ 140,124 $ 95,524 $ (1,396) $ 94,128 $ 1,644 |
Schedule of changes in the allowance for credit losses | A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands): Year Ended December 31, 2021 APL B Piece Certificates Bonds Total Beginning balance $ 1,023 $ 621 $ 1,644 Provision for credit loss expense/(reversal) 399 (290) 109 Ending balance $ 1,422 $ 331 $ 1,753 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Equity Affiliates | |
Summary of the company's investments in equity affiliates | UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates December 31, 2021 December 31, 2020 December 31, 2021 Arbor Residential Investor LLC $ 65,756 $ 59,150 $ — AMAC Holdings III LLC 13,772 10,308 — Fifth Wall Ventures III 5,409 — — North Vermont Avenue 2,419 2,496 — Lightstone Value Plus REIT L.P. 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 89,676 $ 74,274 $ 1,687 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) - Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets | |
Schedule of other intangible assets | December 31, 2021 December 31, 2020 Gross Gross Carrying Accumulated Carrying Accumulated Value Amortization Total Value Amortization Total Finite ‑ lived intangible assets: Broker relationships $ 25,000 $ (17,057) $ 7,943 $ 25,000 $ (13,932) $ 11,068 Borrower relationships 14,400 (7,860) 6,540 14,400 (6,420) 7,980 Below market leases 4,010 (3,359) 651 4,010 (3,233) 777 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 $ 72,410 $ (28,276) $ 44,134 $ 72,410 $ (23,585) $ 48,825 |
Schedule of estimated amortization expense for each of the succeeding five years | At December 31, 2021, 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): Estimated Amortization Expense for the Years Ending December 31, Wtd. Avg. Remaining Life (in years) 2022 2023 2024 2025 2026 Finite ‑ lived intangible assets: Broker relationships 2.5 $ 3,125 $ 3,125 $ 1,693 $ — $ — Borrower relationships 4.5 1,440 1,440 1,440 1,440 780 Below market leases 5.2 126 126 126 126 126 3.5 $ 4,691 $ 4,691 $ 3,259 $ 1,566 $ 906 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Obligations | |
Schedule of senior unsecured notes | A summary of our senior unsecured notes is as follows (in thousands): Senior December 31, 2021 December 31, 2020 Unsecured Issuance Carrying Wtd. Avg. Carrying Wtd. Avg. Notes Date Maturity UPB Value (1) Rate (2) UPB Value (1) Rate (2) 5.00% Notes (3) Dec. 2021 Dec. 2028 $ 180,000 $ 177,105 5.00 % $ — $ — — % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 266,090 4.50 % — — — % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 172,302 5.00 % — — — % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 70,202 8.00 % 70,750 69,793 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,477 4.50 % 275,000 271,994 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,018 4.75 % 110,000 108,668 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,135 5.75 % 90,000 88,751 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 124,216 5.63 % 125,000 123,637 5.63 % $ 1,295,750 $ 1,280,545 5.05 % $ 670,750 $ 662,843 5.29 % (1) At December 31, 2021 and 2020, the carrying value is net of deferred financing fees of $15.2 million and $7.9 million, respectively. (2) At December 31, 2021 and 2020, the aggregate weighted average note rate, including certain fees and costs, was 5.34% and 5.65% , respectively. (3) These notes can be redeemed by us prior to three months before the maturity date, 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 notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. (4) These notes can be redeemed by us at any time prior to the maturity date, 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 notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. |
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 Debt Unamortized Deferred Net Carrying Net Carrying Period UPB Discount Financing Fees Value Value December 31, 2021 $ 264,000 $ 2,520 $ 2,095 $ 259,385 $ 8,684 December 31, 2020 $ 278,300 $ 5,636 $ 4,691 $ 267,973 $ 9,962 |
Repurchase agreements and credit facilities | |
Debt Obligations | |
Schedule of borrowings | Borrowings under our credit and repurchase facilities are as follows ($ in thousands): December 31, 2021 December 31, 2020 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 $2.00B joint repurchase facility $ 1,490,434 $ 1,486,380 $ 1,877,930 2.56 % $ 682,958 $ 681,006 $ 1,054,562 2.55 % $1.00B repurchase facility 676,608 675,415 937,880 2.04 % 192,193 191,622 259,559 2.99 % $450M repurchase facility 397,842 397,272 511,269 1.89 % — — — — $398.7M repurchase facility (2) 242,034 241,450 289,956 3.04 % 71,656 71,627 87,242 2.73 % $325M repurchase facility 294,145 293,700 385,337 1.76 % 31,780 31,780 40,551 1.92 % $225M credit facility 28,213 27,826 42,270 2.79 % 23,857 23,606 31,809 4.06 % $200M credit facility 177,599 177,406 236,538 1.70 % 39,389 39,346 47,912 2.24 % $153.9M loan specific credit facilities 153,937 153,727 214,300 3.14 % 148,798 148,615 198,550 3.03 % $50M credit facility 29,200 29,194 36,500 2.13 % 16,002 15,992 21,300 2.17 % $30M working capital facility — — — — 30,000 30,000 — 3.55 % $25M credit facility 1,235 1,235 1,900 4.06 % — — — — $25M credit facility 10,285 10,218 14,773 2.38 % 9,539 9,323 14,340 2.43 % $1M master security agreement 635 635 — 4.01 % 1,441 1,441 — 4.10 % Repurchase facility - securities (3) 30,849 30,849 — 3.40 % 38,487 38,487 — 3.47 % Structured Business total $ 3,533,016 $ 3,525,307 $ 4,548,653 2.34 % $ 1,286,100 $ 1,282,845 $ 1,755,825 2.73 % Agency Business $750M ASAP agreement $ 182,130 $ 182,130 $ 182,140 1.40 % $ 301,455 $ 301,455 $ 302,491 1.40 % $500M joint repurchase facility 399,470 395,317 475,360 2.11 % 43,132 42,808 56,186 2.07 % $500 M repurchase facility 236,527 236,429 236,527 1.58 % 174,555 174,515 174,555 1.64 % $200M credit facility 115,351 115,304 115,351 1.60 % 294,815 294,732 296,698 1.30 % $150M credit facility 16,657 16,544 16,657 1.51 % 49,754 49,632 49,754 1.65 % $50M credit facility 9,295 9,295 9,295 1.40 % 88,911 88,896 88,911 1.65 % $1.3M repurchase facility (2) 1,253 1,253 1,477 3.00 % — — — — Agency Business total $ 960,683 $ 956,272 $ 1,036,807 1.75 % $ 952,622 $ 952,038 $ 968,595 1.48 % Consolidated total $ 4,493,699 $ 4,481,579 $ 5,585,460 2.21 % $ 2,238,722 $ 2,234,883 $ 2,724,420 2.20 % (1) The debt carrying value for the Structured Business at December 31, 2021 and 2020 was net of unamortized deferred finance costs of $7.7 million and $3.3 million, respectively. The debt carrying value for the Agency Business at December 31, 2021 and 2020 was net of unamortized deferred finance costs of $4.4 million and $0.6 million, respectively. (2) A portion of this repurchase facility was used to finance a $1.3 million fixed rate SFR permanent loan reported through our Agency Business. (3) These repurchase facilities are subject to margin call provisions associated with changes in interest spreads. As of December 31, 2021 and 2020, these facilities were collateralized by B Piece bonds with a carrying value of $47.6 million and $57.8 million, respectively, and an SFR bond with a carrying value of $10.0 million at December 31, 2020, which are held by our Agency Business. |
Collateralized loan obligations | |
Debt Obligations | |
Schedule of borrowings | Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted December 31, 2021 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO 17 $ 1,714,125 $ 1,705,549 1.81 % $ 1,914,280 $ 1,903,997 $ 118,520 CLO 16 1,237,500 1,230,093 1.44 % 1,444,573 1,436,743 — CLO 15 674,412 669,723 1.49 % 785,761 782,682 15,750 CLO 14 655,475 650,947 1.45 % 717,396 715,154 53,342 CLO 13 668,000 665,006 1.54 % 740,369 738,265 48,543 CLO 12 534,193 531,939 1.62 % 557,249 555,974 35,635 CLO 10 441,000 439,553 1.57 % 485,460 483,995 57,706 Total CLOs $ 5,924,705 $ 5,892,810 1.59 % $ 6,645,088 $ 6,616,810 $ 329,496 December 31, 2020 CLO 13 $ 668,000 $ 663,804 1.58 % $ 768,664 $ 765,923 $ 43 CLO 12 534,193 530,673 1.66 % 628,935 627,262 2,005 CLO 11 533,000 529,859 1.61 % 555,157 553,286 92,395 CLO 10 441,000 438,442 1.61 % 522,132 520,507 25,537 CLO 9 356,150 354,531 1.53 % 457,903 456,656 18,703 Total CLOs $ 2,532,343 $ 2,517,309 1.60 % $ 2,932,791 $ 2,923,634 $ 138,683 (1) Debt carrying value is net of $31.9 million and $15.0 million of deferred financing fees at December 31, 2021 and 2020, respectively. (2) At December 31, 2021 and 2020, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 1.86% and 1.93% , respectively. (3) As of December 31, 2021 and 2020, there was no collateral deemed a “credit risk” as defined by the CLO indentures. (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 $133.7 million and $49.5 million at December 31, 2021 and 2020, respectively. |
Schedule of company's CLO compliance tests as of the most recent determination dates | Cash Flow Triggers CLO 10 CLO 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 Overcollateralization (1) Current 126.98 % 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % Limit 125.98 % 117.87 % 118.76 % 118.76 % 119.85 % 120.21 % 121.51 % Pass / Fail Pass Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 488.48 % 307.16 % 317.07 % 319.01 % 332.57 % 276.52 % 192.52 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass 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. |
Schedule of company's CLO overcollateralization ratios | Determination (1) CLO 10 CLO 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 January 2022 126.98 % 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % October 2021 126.98 % 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % — July 2021 126.98 % 118.87 % 119.76 % 119.76 % 120.85 % — — April 2021 126.98 % 118.87 % 119.76 % 119.76 % — — — January 2021 126.98 % 118.87 % 119.76 % — — — — (1) This table 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, 2021 | |
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, 2021 2020 Beginning balance $ 64,303 $ 34,648 Impact of adopting CECL - January 1, 2020 — 14,406 Provisions for loss sharing 44 16,379 Provisions reversal for loan repayments (6,211) (1,557) Recoveries (charge-offs), net (2,072) 427 Ending balance $ 56,064 $ 64,303 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Agency Business | |
Derivatives, Fair Value [Line Items] | |
Schedule of non-qualifying derivative financial instruments | A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): December 31, 2021 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Rate Lock Commitments 2 $ 11,250 Other Assets/Other Liabilities $ 295 $ (33) Forward Sale Commitments 55 571,220 Other Assets/Other Liabilities 1,370 (1,449) Swaps 3,882 388,200 — — $ 970,670 $ 1,665 $ (1,482) December 31, 2020 Rate Lock Commitments 7 $ 136,354 Other Assets/Other Liabilities $ 1,967 $ (231) Forward Sale Commitments 114 1,048,763 Other Assets/Other Liabilities 1,925 (990) Swaps 453 45,300 — — $ 1,230,417 $ 3,892 $ (1,221) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value | |
Schedule of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | December 31, 2021 December 31, 2020 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 12,158,995 $ 11,981,048 $ 12,181,194 $ 5,475,082 $ 5,285,868 $ 5,428,141 Loans held-for-sale, net 1,077,239 1,093,609 1,117,085 968,595 986,919 1,007,294 Capitalized mortgage servicing rights, net n/a 422,734 477,323 n/a 379,974 415,495 Securities held-to-maturity, net 210,728 140,484 149,911 140,124 95,524 94,128 Derivative financial instruments 280,654 1,665 1,665 865,975 3,892 3,892 Financial liabilities: Credit and repurchase facilities $ 4,493,699 $ 4,481,579 $ 4,484,107 $ 2,238,722 $ 2,234,883 $ 2,235,668 Collateralized loan obligations 5,924,705 5,892,810 5,914,453 2,532,343 2,517,309 2,495,195 Senior unsecured notes 1,295,750 1,280,545 1,301,708 670,750 662,843 670,117 Convertible senior unsecured notes, net 264,000 259,385 294,690 278,300 267,973 280,636 Junior subordinated notes 154,336 142,382 101,698 154,336 141,656 99,594 Derivative financial instruments 301,816 1,482 1,482 319,142 1,221 1,221 |
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 1,665 $ 1,665 $ — $ 1,370 $ 295 Financial liabilities: Derivative financial instruments $ 1,482 $ 1,482 $ — $ 1,482 $ — |
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, 2021 (in thousands): Fair Value Measurements Using Fair Net Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 61,953 $ 61,953 $ — $ — $ 61,953 (1) We had an allowance for credit losses of $86.9 million relating to eight impaired loans with an aggregate carrying value, before loan loss reserves, of $148.8 million at December 31, 2021. |
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at December 31, 2021 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Land $ 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,473 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Discount rate 11.00 % Office 480 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 295 Discounted cash flows W/A discount rate 13.31 % |
Schedule of financial assets measured at fair value on a recurring basis using Level 3 inputs | Fair Value Measurements Using Significant Unobservable Inputs for the Year Ended December 31, 2021 2020 2019 Derivative assets and liabilities, net Beginning balance $ 1,967 $ 1,066 $ 324 Settlements (112,836) (164,654) (83,992) Realized gains recorded in earnings 110,869 163,588 83,668 Unrealized gains recorded in earnings 295 1,967 1,066 Ending balance $ 295 $ 1,967 $ 1,066 |
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 Value December 31, 2021 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 11,250 $ 295 $ (29) $ 266 Forward sale commitments 571,220 — 29 29 Loans held-for-sale, net (1) 1,077,239 19,386 — 19,386 Total $ 19,681 $ — $ 19,681 (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 | Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 11,981,048 $ 12,181,194 $ — $ — $ 12,181,194 Loans held-for-sale, net 1,093,609 1,117,085 — 1,097,699 19,386 Capitalized mortgage servicing rights, net 422,734 477,323 — — 477,323 Securities held-to-maturity, net 140,484 149,911 — — 149,911 Financial liabilities: Credit and repurchase facilities $ 4,481,579 $ 4,484,107 $ — $ 956,272 $ 3,527,835 Collateralized loan obligations 5,892,810 5,914,453 — — 5,914,453 Senior unsecured notes 1,280,545 1,301,708 1,301,708 — — Convertible senior unsecured notes, net 259,385 294,690 — 294,690 — Junior subordinated notes 142,382 101,698 — — 101,698 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Schedule of maturities of debt obligations and operating lease payments | Minimum Annual Debt Operating Lease Year Obligations Payments Total 2022 $ 3,360,731 $ 8,342 $ 3,369,073 2023 1,886,918 8,067 1,894,985 2024 2,925,345 7,929 2,933,274 2025 1,109,257 7,978 1,117,235 2026 2,210,054 8,282 2,218,336 Thereafter 640,185 26,098 666,283 Total $ 12,132,490 $ 66,696 $ 12,199,186 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 are as follows (in thousands): December 31, 2021 December 31, 2020 Assets: Restricted cash $ 466,523 $ 188,226 Loans and investments, net 6,616,809 2,923,634 Other assets 61,474 22,587 Total assets $ 7,144,806 $ 3,134,447 Liabilities: Collateralized loan obligations $ 5,892,810 $ 2,517,309 Other liabilities 9,813 2,755 Total liabilities $ 5,902,623 $ 2,520,064 |
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, 2021 is as follows (in thousands): Type Carrying Amount (1) Loans $ 466,811 APL certificates 94,291 B Piece bonds 47,946 Equity investments 20,560 Agency interest only strips 542 Total $ 630,150 (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2021, $129.8 million of loans to VIEs had corresponding loan loss reserves of $79.4 million. The maximum loss exposure as of December 31, 2021 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Schedule of dividends declared by the Company (on a per share basis) | Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C Series D Series E February 17, 2021 $ 0.33 February 1, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A N/A May 5, 2021 $ 0.34 April 30, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A N/A July 28, 2021 $ 0.35 July 2, 2021 N/A N/A N/A $ 0.25677 N/A October 27, 2021 $ 0.36 October 1, 2021 N/A N/A N/A $ 0.3984375 $ 0.34288 (1) The dividend declared on October 1, 2021 for Series D and E were for July 30, 2021 through October 29, 2021 and August 11, 2021 (the date of issuance) through October 29, 2021, respectively. The dividend declared on July 2, 2021 was for June 2, 2021 through July 29, 2021, the dividend declared on April 30, 2021 was for March 1, 2021 through May 31, 2021 and the dividend declared on February 1, 2021 was for December 1, 2020 through February 28, 2021. As mentioned above, we fully redeemed our Series A, B and C preferred stock in June 2021. |
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, 2021 2020 2019 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 317,412 $ 317,412 $ 163,395 $ 163,395 $ 121,074 $ 121,074 Net income attributable to noncontrolling interest (2) — 38,507 — 25,208 — 26,610 Net income attributable to common stockholders and noncontrolling interest $ 317,412 $ 355,919 $ 163,395 $ 188,603 $ 121,074 $ 147,684 Weighted average shares outstanding 137,830,691 137,830,691 113,811,471 113,811,471 92,851,327 92,851,327 Dilutive effect of OP Units (2) — 16,818,722 — 19,395,691 — 20,502,128 Dilutive effect of restricted stock units (3) — 933,233 — 718,647 — 1,421,528 Dilutive effect of convertible notes (4) — 506,949 — 43,487 — 1,417,968 Weighted average shares outstanding 137,830,691 156,089,595 113,811,471 133,969,296 92,851,327 116,192,951 Net income per common share (1) $ 2.30 $ 2.28 $ 1.44 $ 1.41 $ 1.30 $ 1.27 (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) Our chief executive officer was granted restricted stock units, 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. Our adoption of ASU 2020-06 on January 1, 2022 changes the way in which we account for our convertible debt, see Note 2 for details. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Pre ‑ tax GAAP income: REIT $ 239,356 $ 78,320 $ 94,076 TRS Consolidated Group 184,736 158,230 76,198 Total pre‑tax GAAP income $ 424,092 $ 236,550 $ 170,274 |
Schedule of provision for income taxes | Our provision for income taxes is comprised as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current tax provision: Federal $ 27,453 $ 27,284 $ 12,381 State 7,939 8,383 2,505 Total 35,392 35,667 14,886 Deferred tax provision : Federal $ 8,288 $ 3,932 $ 2,743 State 2,744 780 688 Valuation allowance (139) 14 (3,281) Total 10,893 4,726 150 Total income tax expense $ 46,285 $ 40,393 $ 15,036 |
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, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % REIT non‑taxable income (11.9) (7.0) (11.3) State and local income taxes, net of federal tax benefit 2.0 3.0 1.5 Change in valuation allowance — — (1.9) Other (0.2) — (0.5) Effective income tax rate 10.9 % 17.0 % 8.8 % |
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, 2021 2020 Deferred tax assets: Expenses not currently deductible $ 25,542 $ 24,603 Loan loss reserves 7,110 7,047 Net operating and capital loss carryforwards 468 691 Valuation allowance (292) (431) Other 372 306 Deferred tax assets, net $ 33,200 $ 32,216 Deferred tax liabilities: Mortgage servicing rights $ 28,672 $ 23,628 Interest in equity affiliates—net 8,179 589 Intangibles 7,243 8,002 Deferred tax liabilities, net $ 44,094 $ 32,219 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | |
Schedule of statement of income and balance sheet by segment | Year Ended December 31, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 427,039 $ 39,048 $ — $ 466,087 Interest expense 194,435 17,570 — 212,005 Net interest income 232,604 21,478 — 254,082 Other revenue: Gain on sales, including fee-based services, net — 123,037 — 123,037 Mortgage servicing rights — 130,230 — 130,230 Servicing revenue — 133,429 — 133,429 Amortization of MSRs — (58,615) — (58,615) Property operating income 185 — — 185 Loss on derivative instruments, net — (2,684) — (2,684) Other income, net 7,491 75 — 7,566 Total other revenue 7,676 325,472 — 333,148 Other expenses: Employee compensation and benefits 51,225 120,571 — 171,796 Selling and administrative 21,064 24,511 — 45,575 Property operating expenses 718 — — 718 Depreciation and amortization 2,524 4,691 — 7,215 Provision for loss sharing (net of recoveries) — (6,167) — (6,167) Provision for credit losses (net of recoveries) (21,223) 110 — (21,113) Total other expenses 54,308 143,716 — 198,024 Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 185,972 203,234 — 389,206 Loss on extinguishment of debt (3,374) — — (3,374) Gain on real estate 2,466 1,227 — 3,693 Income from equity affiliates 34,567 — — 34,567 Provision for income taxes (5,940) (40,345) — (46,285) Net income 213,691 164,116 — 377,807 Preferred stock dividends 21,888 — — 21,888 Net income attributable to noncontrolling interest — — 38,507 38,507 Net income attributable to common stockholders $ 191,803 $ 164,116 $ (38,507) $ 317,412 Year Ended December 31, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 305,893 $ 33,572 $ — $ 339,465 Interest expense 150,964 18,252 — 169,216 Net interest income 154,929 15,320 — 170,249 Other revenue: Gain on sales, including fee-based services, net — 94,607 — 94,607 Mortgage servicing rights — 165,517 — 165,517 Servicing revenue — 103,607 — 103,607 Amortization of MSRs — (49,222) — (49,222) Property operating income 3,976 — — 3,976 Loss on derivative instruments, net (2,859) (55,476) — (58,335) Other income, net 4,052 57 — 4,109 Total other revenue 5,169 259,090 — 264,259 Other expenses: Employee compensation and benefits 40,292 104,088 — 144,380 Selling and administrative 15,706 21,642 — 37,348 Property operating expenses 4,898 — — 4,898 Depreciation and amortization 2,391 5,249 — 7,640 Provision for loss sharing (net of recoveries) — 14,822 — 14,822 Provision for credit losses (net of recoveries) 59,967 1,143 — 61,110 Total other expenses 123,254 146,944 — 270,198 Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes 36,844 127,466 — 164,310 Loss on extinguishment of debt (3,546) — — (3,546) (Loss) gain on real estate (878) 503 — (375) Income from equity affiliates 76,161 — — 76,161 Provision for income taxes (14,303) (26,090) — (40,393) Net income 94,278 101,879 — 196,157 Preferred stock dividends 7,554 — — 7,554 Net income attributable to noncontrolling interest — — 25,208 25,208 Net income attributable to common stockholders $ 86,724 $ 101,879 $ (25,208) $ 163,395 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 Loss on derivative instruments, net (275) (1,687) — (1,962) Other income, net 1,178 — — 1,178 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 99,091 — 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 84,723 — 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 $ 84,723 $ (26,610) $ 121,074 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. December 31, 2021 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 142,771 $ 261,809 $ 404,580 Restricted cash 468,013 18,677 486,690 Loans and investments, net 11,981,048 — 11,981,048 Loans held-for-sale, net — 1,093,609 1,093,609 Capitalized mortgage servicing rights, net — 422,734 422,734 Securities held-to-maturity, net — 140,484 140,484 Investments in equity affiliates 89,676 — 89,676 Goodwill and other intangible assets 12,500 88,260 100,760 Other assets and due from related party 285,600 68,664 354,264 Total assets $ 12,979,608 $ 2,094,237 $ 15,073,845 Liabilities: Debt obligations $ 11,100,429 $ 956,272 $ 12,056,701 Allowance for loss-sharing obligations — 56,064 56,064 Other liabilities and due to related parties 278,726 132,370 411,096 Total liabilities $ 11,379,155 $ 1,144,706 $ 12,523,861 December 31, 2020 Assets: Cash and cash equivalents $ 172,568 $ 166,960 $ 339,528 Restricted cash 188,226 9,244 197,470 Loans and investments, net 5,285,868 — 5,285,868 Loans held-for-sale, net — 986,919 986,919 Capitalized mortgage servicing rights, net — 379,974 379,974 Securities held-to-maturity, net — 95,524 95,524 Investments in equity affiliates 74,274 — 74,274 Goodwill and other intangible assets 12,500 92,951 105,451 Other assets 142,844 53,134 195,978 Total assets $ 5,876,280 $ 1,784,706 $ 7,660,986 Liabilities: Debt obligations $ 4,872,626 $ 952,038 $ 5,824,664 Allowance for loss-sharing obligations — 64,303 64,303 Other liabilities 203,554 85,780 289,334 Total liabilities $ 5,076,180 $ 1,102,121 $ 6,178,301 |
Schedule of origination data and loan sales data | Year Ended December 31, 2021 2020 2019 Origination Data: Structured Business Bridge loans (1) $ 9,490,402 $ 2,312,061 $ 2,598,658 Mezzanine loans 175,225 45,122 127,784 Preferred equity investments 28,650 31,600 35,130 Other loans (2) 26,238 44,896 41,679 Total new loan originations $ 9,720,515 $ 2,433,679 $ 2,803,251 (1) Bridge loans in 2021 includes 103 SFR loans with a UPB of $389.2 million. During 2021, 2020 and 2019, we committed to fund SFR loans totaling $729.5 million, $261.5 million and $63.2 million, respectively. (2) Other loans in 2021 and 2020 includes 1 and 9 SFR permanent loans with a UPB of $26.2 million and $37.2 million, respectively. Loan payoffs / paydowns $ 2,516,771 $ 1,208,071 $ 1,748,387 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,389,312 $ 5,041,925 $ 3,346,272 Private Label 1,436,853 382,191 401,216 Freddie Mac 1,016,142 960,508 728,317 FHA 430,320 327,345 123,095 SFR - Fixed Rate 136,931 — — CMBS/Conduit — — 211,325 Total $ 6,409,558 $ 6,711,969 $ 4,810,225 Total loan commitment volume $ 6,347,752 $ 6,810,666 $ 4,829,721 Loan Sales Data: Agency Business Fannie Mae $ 3,675,763 $ 4,771,113 $ 3,296,523 Freddie Mac 1,081,702 816,802 786,993 Private Label 985,094 727,154 — FHA 480,275 272,659 106,271 SFR - Fixed Rate 192,335 — — CMBS/Conduit — — 211,325 Total $ 6,415,169 $ 6,587,728 $ 4,401,112 Sales margin (fee-based services as a % of loan sales) 1.92 % 1.44 % 1.49 % MSR rate (MSR income as a % of loan commitments) 2.05 % 2.43 % 1.88 % |
Schedule of key servicing metrics for Agency Business | December 31, 2021 Wtd. Avg. Servicing Wtd. Avg. Life of UPB of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio (basis points) (years) Fannie Mae $ 19,127,397 53.5 8.0 Freddie Mac 4,943,905 27.1 9.3 Private Label 1,711,326 20.0 8.3 FHA 985,063 15.4 21.0 SFR - Fixed Rate 191,698 20.0 6.5 Total $ 26,959,389 44.9 8.8 December 31, 2020 Fannie Mae $ 18,268,268 52.3 8.2 Freddie Mac 4,881,080 27.9 9.9 FHA 752,116 16.3 20.3 Private Label 726,992 20.0 8.7 Total $ 24,628,456 45.4 8.9 |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Description of Business | |
Number of business segments | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Jan. 01, 2022USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2020USD ($) | |
Significant Accounting Policies | ||||
Retained Earnings (Accumulated Deficit) | $ 62,532 | $ (63,442) | ||
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 | |||
Aggregate increase to retained earnings | $ 62,532 | $ (63,442) | ||
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 2020-20 | Cumulative-effect adjustment | ||||
Significant Accounting Policies | ||||
Retained Earnings (Accumulated Deficit) | $ 6,200 | |||
Real Estate Owned and Held-For-Sale | ||||
Aggregate increase to retained earnings | 6,200 | |||
Aggregate decrease to additional paid-in capital | $ (8,700) | |||
Impact of adopting CECL | ||||
Significant Accounting Policies | ||||
Retained Earnings (Accumulated Deficit) | $ 28,600 | |||
Deferred tax assets, net | 3,600 | |||
Real Estate Owned and Held-For-Sale | ||||
Aggregate increase to retained earnings | $ 28,600 | |||
Minimum | ||||
Loans Held-for-Sale, Net | ||||
Maximum number of days held-for-sale loans are generally transferred or sold | 60 days | |||
Minimum | Interest Rate Swaps | ||||
Real Estate Owned and Held-For-Sale | ||||
Derivative Swap Rate Period | 5 years | |||
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% | |||
Maximum | Interest Rate Swaps | ||||
Real Estate Owned and Held-For-Sale | ||||
Derivative Swap Rate Period | 10 years | |||
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) | 13 | |||
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 - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($)loanproperty | Dec. 31, 2020USD ($)loanproperty | Mar. 31, 2021USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loans and Investments | |||||
Loans and investments, gross | $ 12,158,995 | $ 5,475,082 | |||
Allowance for credit losses | (113,241) | (148,329) | $ (71,069) | ||
Unearned revenue | (64,706) | (40,885) | |||
Loans and investments, net | $ 11,981,048 | $ 5,285,868 | $ 4,189,960 | $ 3,200,145 | |
Percent of Total | 100.00% | 100.00% | |||
Loan Count | loan | 580 | 328 | |||
Wtd. Avg. Pay Rate (as a percent) | 4.26% | 5.23% | |||
Wtd. Avg. Remaining Months to Maturity | 24 months 18 days | 19 months 6 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | 4.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 77.00% | |||
Single-Family Rental | |||||
Loans and Investments | |||||
Transfer of fixed rate SFR from Structured Business to Agency Business | loan | 21 | ||||
Transfer of UPB from Structured Business To Agency Business | $ 65,200 | ||||
Credit risk concentration | |||||
Loans and Investments | |||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | ||||
Credit risk concentration | Single-Family Rental | |||||
Loans and Investments | |||||
Percent of Total | 4.00% | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 65.00% | ||||
Total assets | Credit risk concentration | |||||
Loans and Investments | |||||
Loan Count | loan | 31 | 22 | |||
Number of different borrowers | property | 5 | 5 | |||
Concentration Risk Threshold Percentage | 11 | 12 | |||
Bridge Loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 11,750,710 | $ 5,022,509 | |||
Percent of Total | 97.00% | 92.00% | |||
Loan Count | loan | 528 | 263 | |||
Wtd. Avg. Pay Rate (as a percent) | 4.19% | 5.09% | |||
Wtd. Avg. Remaining Months to Maturity | 23 months 24 days | 16 months 6 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 76.00% | |||
Bridge Loans | Single-Family Rental | |||||
Loans and Investments | |||||
Number of loans under the loan portfolio | loan | 120 | 38 | |||
Total loan commitment | $ 804,600 | $ 309,200 | |||
Mezzanine Loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 223,378 | $ 159,242 | |||
Percent of Total | 2.00% | 3.00% | |||
Loan Count | loan | 39 | 29 | |||
Wtd. Avg. Pay Rate (as a percent) | 7.32% | 7.40% | |||
Wtd. Avg. Remaining Months to Maturity | 56 months 9 days | 45 months | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 34.00% | 32.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 84.00% | 82.00% | |||
Preferred equity investments | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 155,513 | $ 224,928 | |||
Percent of Total | 1.00% | 4.00% | |||
Loan Count | loan | 11 | 14 | |||
Wtd. Avg. Pay Rate (as a percent) | 5.57% | 7.07% | |||
Wtd. Avg. Remaining Months to Maturity | 38 months | 49 months 24 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 58.00% | 64.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 87.00% | 89.00% | |||
Other loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 29,394 | $ 68,403 | |||
Percent of Total | 1.00% | 1.00% | |||
Loan Count | loan | 2 | 22 | |||
Wtd. Avg. Pay Rate (as a percent) | 4.63% | 4.95% | |||
Wtd. Avg. Remaining Months to Maturity | 48 months 3 days | 74 months 24 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 67.00% | 69.00% | |||
Other loans | Single-Family Rental | |||||
Loans and Investments | |||||
Number of loans under the loan portfolio | loan | 2 | 22 | |||
Unpaid principal balance, funded | $ 408,200 | $ 88,100 |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Investments | ||
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | 4.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 77.00% |
Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2021 | $ 8,773,039 | |
Origination Year 2020 | 1,723,054 | |
Origination Year 2019 | 1,044,533 | |
Origination Year 2018 | 288,587 | |
Origination Year 2017 | 157,115 | |
Origination Year Prior | 172,667 | |
Amortized cost basis | $ 12,158,995 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | |
Credit risk concentration | Loans and investments portfolio | New York | ||
Loans and Investments | ||
Concentration risk, percentage | 19.00% | 19.00% |
Credit risk concentration | Loans and investments portfolio | Texas | ||
Loans and Investments | ||
Concentration risk, percentage | 12.00% | 11.00% |
Credit risk concentration | Multifamily Portfolio | ||
Loans and Investments | ||
Origination Year 2021 | $ 8,417,002 | |
Origination Year 2020 | 1,490,563 | |
Origination Year 2019 | 867,534 | |
Origination Year 2018 | 185,288 | |
Origination Year 2017 | 83,910 | |
Origination Year Prior | 37,614 | |
Amortized cost basis | $ 11,081,911 | |
Percentage of Portfolio | 91.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | |
Credit risk concentration | Multifamily Portfolio | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 6,025,731 | |
Origination Year 2020 | 562,885 | |
Origination Year 2019 | 176,281 | |
Origination Year 2018 | 6,305 | |
Origination Year 2017 | 20,300 | |
Origination Year Prior | 214 | |
Amortized cost basis | 6,791,716 | |
Credit risk concentration | Multifamily Portfolio | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | 2,120,458 | |
Origination Year 2020 | 587,820 | |
Origination Year 2019 | 194,698 | |
Origination Year 2018 | 120,950 | |
Origination Year 2017 | 32,500 | |
Origination Year Prior | 28,800 | |
Amortized cost basis | 3,085,226 | |
Credit risk concentration | Multifamily Portfolio | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 270,813 | |
Origination Year 2020 | 321,031 | |
Origination Year 2019 | 452,980 | |
Origination Year 2018 | 42,500 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 350 | |
Amortized cost basis | 1,087,674 | |
Credit risk concentration | Multifamily Portfolio | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 18,827 | |
Origination Year 2019 | 43,575 | |
Origination Year 2018 | 15,533 | |
Origination Year 2017 | 31,110 | |
Origination Year Prior | 8,250 | |
Amortized cost basis | 117,295 | |
Credit risk concentration | Land | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 79,118 | |
Origination Year 2019 | 19,524 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 19,975 | |
Origination Year Prior | 127,928 | |
Amortized cost basis | $ 246,545 | |
Percentage of Portfolio | 2.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 96.00% | |
Credit risk concentration | Land | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 8,100 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 8,100 | |
Credit risk concentration | Land | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 71,018 | |
Origination Year 2019 | 19,524 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 19,975 | |
Origination Year Prior | 127,928 | |
Amortized cost basis | 238,445 | |
Credit risk concentration | Healthcare | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 65,819 | |
Origination Year 2018 | 41,500 | |
Origination Year 2017 | 39,650 | |
Origination Year Prior | 0 | |
Amortized cost basis | $ 146,969 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 74.00% | |
Credit risk concentration | Healthcare | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 14,750 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 14,750 | |
Credit risk concentration | Healthcare | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 51,069 | |
Origination Year 2018 | 41,500 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 92,569 | |
Credit risk concentration | Healthcare | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 39,650 | |
Amortized cost basis | 39,650 | |
Credit risk concentration | Student Housing | ||
Loans and Investments | ||
Origination Year 2021 | 25,700 | |
Origination Year 2020 | 21,500 | |
Origination Year 2019 | 31,100 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | $ 78,300 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 21.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 73.00% | |
Credit risk concentration | Student Housing | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 25,700 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 25,700 | |
Credit risk concentration | Student Housing | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 31,100 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 31,100 | |
Credit risk concentration | Student Housing | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 21,500 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 21,500 | |
Credit risk concentration | Office | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 35,410 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 43,199 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 1,980 | |
Amortized cost basis | $ 80,589 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 85.00% | |
Credit risk concentration | Office | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 35,410 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 43,199 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 1,980 | |
Amortized cost basis | 80,589 | |
Credit risk concentration | Retail | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 4,000 | |
Origination Year 2018 | 18,600 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 3,445 | |
Amortized cost basis | $ 26,045 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 12.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 33.00% | |
Credit risk concentration | Retail | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 4,000 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 4,000 | |
Credit risk concentration | Retail | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 18,600 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 18,600 | |
Credit risk concentration | Retail | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 3,445 | |
Amortized cost basis | 3,445 | |
Credit risk concentration | Single-Family Rental | ||
Loans and Investments | ||
Origination Year 2021 | 330,337 | |
Origination Year 2020 | 91,747 | |
Origination Year 2019 | 15,556 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | $ 437,640 | |
Percentage of Portfolio | 4.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 65.00% | |
Credit risk concentration | Single-Family Rental | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 69,992 | |
Origination Year 2020 | 18,339 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 88,331 | |
Credit risk concentration | Single-Family Rental | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | 257,602 | |
Origination Year 2020 | 24,927 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 282,529 | |
Credit risk concentration | Single-Family Rental | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 2,743 | |
Origination Year 2020 | 48,481 | |
Origination Year 2019 | 15,556 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 66,780 | |
Credit risk concentration | Hotel Portfolio | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 4,716 | |
Origination Year 2019 | 41,000 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | $ 45,716 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 66.00% | |
Credit risk concentration | Hotel Portfolio | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 4,716 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 4,716 | |
Credit risk concentration | Hotel Portfolio | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 41,000 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 0 | |
Amortized cost basis | 41,000 | |
Credit risk concentration | Other Property | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 13,580 | |
Origination Year Prior | 1,700 | |
Amortized cost basis | $ 15,280 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 7.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 51.00% | |
Credit risk concentration | Other Property | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | $ 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 13,580 | |
Origination Year Prior | 0 | |
Amortized cost basis | 13,580 | |
Credit risk concentration | Other Property | Doubtful | ||
Loans and Investments | ||
Origination Year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year 2018 | 0 | |
Origination Year 2017 | 0 | |
Origination Year Prior | 1,700 | |
Amortized cost basis | $ 1,700 |
Loans and Investments - Allowan
Loans and Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in allowance for loan losses | ||
Allowance at beginning of period | $ 148,329 | $ 71,069 |
Provision for credit losses (net of recoveries) | (24,315) | 59,966 |
Charge-offs | (24,315) | (75) |
Allowance at end of period | 113,241 | 148,329 |
Unfunded commitments related to structured loans and investments | 975,200 | |
As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 148,329 | |
Allowance at end of period | 148,329 | |
Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 17,294 | |
Impact of adopting CECL | Impact of Adoption | ||
Changes in allowance for loan losses | ||
Charge-offs | (10,773) | |
Land | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 78,150 | 67,869 |
Provision for credit losses (net of recoveries) | (180) | 10,204 |
Allowance at end of period | 77,970 | 78,150 |
Land | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 78,150 | |
Allowance at end of period | 78,150 | |
Land | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 77 | |
Multifamily Portfolio | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 36,468 | |
Provision for credit losses (net of recoveries) | (17,761) | 20,146 |
Allowance at end of period | 18,707 | 36,468 |
Multifamily Portfolio | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 36,468 | |
Allowance at end of period | 36,468 | |
Multifamily Portfolio | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 16,322 | |
Retail | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 13,861 | |
Provision for credit losses (net of recoveries) | (42) | 13,526 |
Allowance at end of period | 5,819 | 13,861 |
Retail | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 13,861 | |
Allowance at end of period | 13,861 | |
Retail | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 335 | |
Retail | Impact of adopting CECL | Impact of Adoption | ||
Changes in allowance for loan losses | ||
Charge-offs | (8,000) | |
Office | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 1,846 | 1,500 |
Provision for credit losses (net of recoveries) | 6,227 | 59 |
Allowance at end of period | 8,073 | 1,846 |
Office | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 1,846 | |
Allowance at end of period | 1,846 | |
Office | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 287 | |
Healthcare | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 3,880 | |
Provision for credit losses (net of recoveries) | (1,099) | 3,816 |
Allowance at end of period | 8 | 3,880 |
Healthcare | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 3,880 | |
Allowance at end of period | 3,880 | |
Healthcare | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 64 | |
Healthcare | Impact of adopting CECL | Impact of Adoption | ||
Changes in allowance for loan losses | ||
Charge-offs | (2,773) | |
Student Housing | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 4,078 | |
Provision for credit losses (net of recoveries) | (3,442) | 4,010 |
Allowance at end of period | 636 | 4,078 |
Student Housing | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 4,078 | |
Allowance at end of period | 4,078 | |
Student Housing | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 68 | |
Hotel Portfolio | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 7,759 | |
Provision for credit losses (net of recoveries) | (7,751) | 7,730 |
Allowance at end of period | 8 | 7,759 |
Hotel Portfolio | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 7,759 | |
Allowance at end of period | 7,759 | |
Hotel Portfolio | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 29 | |
Other Property | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 2,287 | 1,700 |
Provision for credit losses (net of recoveries) | (267) | 475 |
Allowance at end of period | 2,020 | 2,287 |
Other Property | As Reported Pre-Adoption | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 2,287 | |
Allowance at end of period | 2,287 | |
Other Property | Impact of adopting CECL | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | 112 | |
Bridge Loans | Hotel Portfolio | ||
Changes in allowance for loan losses | ||
Allowance at beginning of period | $ 7,500 | |
Allowance at end of period | $ 7,500 |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Loans and Investments | ||
UPB | $ 159,940 | $ 282,785 |
Carrying Value | 148,839 | 254,938 |
Allowance for Credit Losses | $ 86,886 | $ 106,265 |
Wtd. Avg. First Dollar LTV Ratio | 3 | 1 |
Wtd. Avg. Last Dollar LTV Ratio | 89 | 94 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | item | 8 | 10 |
Land | ||
Loans and Investments | ||
UPB | $ 134,215 | $ 134,215 |
Carrying Value | 127,868 | 127,829 |
Allowance for Credit Losses | $ 77,869 | $ 77,869 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 99 | 99 |
Hotel Portfolio | ||
Loans and Investments | ||
UPB | $ 110,000 | |
Carrying Value | 89,613 | |
Allowance for Credit Losses | $ 7,500 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 94 | |
Retail | ||
Loans and Investments | ||
UPB | $ 22,045 | $ 30,079 |
Carrying Value | 17,291 | 28,957 |
Allowance for Credit Losses | $ 5,817 | $ 13,851 |
Wtd. Avg. First Dollar LTV Ratio | 14 | 10 |
Wtd. Avg. Last Dollar LTV Ratio | 33 | 75 |
Healthcare | ||
Loans and Investments | ||
UPB | $ 4,625 | |
Carrying Value | 4,673 | |
Allowance for Credit Losses | $ 3,845 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 83 | |
Office | ||
Loans and Investments | ||
UPB | $ 1,980 | $ 2,166 |
Carrying Value | 1,980 | 2,166 |
Allowance for Credit Losses | $ 1,500 | $ 1,500 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 51 | 71 |
Commercial | ||
Loans and Investments | ||
UPB | $ 1,700 | $ 1,700 |
Carrying Value | 1,700 | 1,700 |
Allowance for Credit Losses | $ 1,700 | $ 1,700 |
Wtd. Avg. First Dollar LTV Ratio | 63 | 63 |
Wtd. Avg. Last Dollar LTV Ratio | 63 | 63 |
Loans and Investments - Non-per
Loans and Investments - Non-performing Loans (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019loan | |
Non-performing loans by asset class | |||
Number of loans for which no provision for loan loss made | loan | 0 | 0 | 0 |
Number of loans | loan | 580 | 328 | |
Carrying value of loans | $ 12,158,995,000 | ||
Amortized cost of loans on nonaccrual status | 0 | ||
UPB | 159,940,000 | $ 282,785,000 | |
Financing Receivable, before Allowance for Credit Loss | $ 12,158,995,000 | $ 5,475,082,000 | |
Non-performing loans | |||
Non-performing loans by asset class | |||
Number of loans | loan | 3 | 7 | |
Carrying value of loans | $ 20,100,000 | $ 53,800,000 | |
Loan loss reserves | 2,600,000 | 6,500,000 | |
UPB | 24,120,000 | 62,325,000 | |
Interest Receivable | 0 | ||
Greater than 90 Days Past Due | |||
Non-performing loans by asset class | |||
Past Due | 0 | 0 | |
Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 24,120,000 | 62,325,000 | |
Interest Receivable | 0 | 0 | |
Student Housing | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 21,500,000 | 36,500,000 | |
Student Housing | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 21,500,000 | 36,500,000 | |
Multifamily Portfolio | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 17,700,000 | ||
Multifamily Portfolio | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 17,700,000 | ||
Healthcare | |||
Non-performing loans by asset class | |||
UPB | 4,625,000 | ||
Healthcare | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 4,625,000 | ||
Healthcare | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 4,625,000 | ||
Retail | |||
Non-performing loans by asset class | |||
UPB | 22,045,000 | 30,079,000 | |
Retail | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 920,000 | 920,000 | |
Retail | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 920,000 | 920,000 | |
Commercial | |||
Non-performing loans by asset class | |||
UPB | 1,700,000 | 1,700,000 | |
Commercial | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 1,700,000 | 1,700,000 | |
Commercial | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | 1,700,000 | 1,700,000 | |
Office | |||
Non-performing loans by asset class | |||
UPB | $ 1,980,000 | 2,166,000 | |
Office | Non-performing loans | |||
Non-performing loans by asset class | |||
UPB | 880,000 | ||
Office | Greater than 90 Days Past Due | Non-performing loans | |||
Non-performing loans by asset class | |||
Financing Receivable, before Allowance for Credit Loss | $ 880,000 |
Loans and Investments - Charge-
Loans and Investments - Charge-offs and Recoveries Narratives (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loans and Investments | |||
Allowance for credit losses | $ 113,241 | $ 148,329 | $ 71,069 |
Provision for loan losses | 77,335 | ||
Recoveries of reserves | 24,315 | 75 | |
Six loans collateralized by a land development project | |||
Loans and Investments | |||
Unpaid principal balance on loans | $ 975,200 | ||
Provision for loan losses | 353,800 | ||
Six loans collateralized by a land development project | Maturity date of September 2020 | |||
Loans and Investments | |||
Number of loans with unpaid principal balance | loan | 6 | ||
Unpaid principal balance on loans | $ 121,400 | ||
Five loans collateralized by a land development project | Maturity date of September 2020 | |||
Loans and Investments | |||
Number of loans with unpaid principal balance | loan | 5 | ||
Unpaid principal balance on loans | $ 112,000 | ||
Weighted average accrual rate of interest (as a percent) | 7.91% | ||
Allowance for credit losses | $ 71,400 | ||
Hotel Portfolio | |||
Loans and Investments | |||
Unpaid principal balance on loans | 41,600 | ||
Allowance for credit losses | 8 | $ 7,759 | |
Proceed from payment for full satisfaction of a preferred equity investment | $ 58,300 |
Loans and Investments - Purchas
Loans and Investments - Purchased Credit Deterioration and Troubled Debt Restructurings (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Aug. 31, 2020USD ($) | Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Principal paydowns | $ 2,516,771 | $ 1,243,694 | $ 1,753,693 | |||
Purchase of loan | 9,209,475 | 2,376,233 | 2,712,354 | |||
Allowance for credit losses | $ 113,241 | $ 148,329 | 71,069 | |||
Proceeds from full satisfaction of loans | $ 95,000 | |||||
Reversal of allowance for credit losses | 7,500 | |||||
Interest income from loans | $ 3,500 | |||||
Troubled debt restructurings, number | loan | 2 | 0 | ||||
Interest reserve | $ 87,400 | $ 78,300 | ||||
Number of loans covered under interest reserve | loan | 328 | 186 | ||||
Aggregate UPB covered under interest reserve | $ 5,750,000 | $ 3,600,000 | ||||
Hotel Portfolio | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Allowance for credit losses | 8 | 7,759 | ||||
Hotel Portfolio | Forbearance agreement | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Fixed rate of interest (as a percent) | 9.50% | |||||
Principal reduction | $ (10,000) | |||||
Pay rate (as a percent) | 1.00% | |||||
Hotel Portfolio | Forbearance agreement | LIBOR | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Variable rate, spread (as a percent) | 3.00% | |||||
LIBOR Floor rate | 1.50% | |||||
Retail | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Allowance for credit losses | 5,819 | $ 13,861 | ||||
Retail | Loan modification agreement | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Maturity period (in years) | 3 years | |||||
Percentage of interest foregone | 2 | |||||
Principal paydowns | $ 6,000 | |||||
Principal reduction | (8,000) | |||||
Additional reserve deposit | 4,600 | |||||
Retail | Loan modification agreement | LIBOR | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Variable rate, spread (as a percent) | 5.50% | |||||
LIBOR Floor rate | 6.50% | |||||
Bridge Loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Principal amount | $ 35,000 | |||||
Fixed rate of interest (as a percent) | 10.00% | |||||
Bridge Loans | Hotel Portfolio | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Principal amount | $ 110,000 | |||||
Purchase of loan | $ 60,000 | 50,000 | ||||
Allowance for credit losses | 7,500 | |||||
Loan discount | 39,900 | |||||
Total discount received | $ 20,100 | |||||
Bridge Loans | Retail | Loan modification agreement | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Principal amount | $ 26,500 | |||||
Bridge Loans | Retail | Loan modification agreement | LIBOR | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Variable rate, spread (as a percent) | 6.00% | |||||
LIBOR Floor rate | 2.375% | |||||
Mezzanine Loans | Retail | Loan modification agreement | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Principal amount | $ 6,100 | |||||
Fixed rate of interest (as a percent) | 12.00% |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Feb. 28, 2022USD ($) | |
Loans Held-for-Sale, Net | ||||
Loans held-for-sale | $ 1,077,239 | $ 968,595 | ||
Fair value of future MSR | 19,318 | 21,600 | ||
Unearned discount | (2,948) | (3,276) | ||
Loans held-for-sale, net | 1,093,609 | 986,919 | ||
Sale of loans held-for-sale excluding acquired loans | 6,420,000 | 6,590,000 | $ 4,400,000 | |
Gain on sale of loans held-for-sale, including fees | $ 123,000 | $ 94,600 | $ 65,700 | |
Number of loans | loan | 580 | 328 | ||
Subordinate class of certificates retained | $ 210,728 | $ 140,124 | ||
Amortized cost of loans on nonaccrual status | 0 | |||
Held-to-maturity securities | ||||
Loans Held-for-Sale, Net | ||||
Subordinate class of certificates retained | 85,700 | |||
APL certificates | ||||
Loans Held-for-Sale, Net | ||||
Subordinate class of certificates retained | 149,368 | 63,627 | ||
APL certificates | Held-to-maturity securities | ||||
Loans Held-for-Sale, Net | ||||
Subordinate class of certificates retained | 149,400 | 63,600 | ||
Greater than 90 Days Past Due | ||||
Loans Held-for-Sale, Net | ||||
Past Due | $ 0 | 0 | ||
US Government Sponsored-Enterprise Insured Loans | ||||
Loans Held-for-Sale, Net | ||||
Period of loans held for sale sold | 60 days | |||
Fannie Mae | ||||
Loans Held-for-Sale, Net | ||||
Loans held-for-sale, net | $ 392,876 | 679,342 | ||
Private Label | ||||
Loans Held-for-Sale, Net | ||||
Loans held-for-sale, net | $ 507,918 | 56,186 | ||
Period of loans held for sale sold | 180 days | |||
Sale of loans held-for-sale excluding acquired loans | $ 985,100 | 727,200 | ||
Private Label | Subsequent Event [Member] | ||||
Loans Held-for-Sale, Net | ||||
Subordinate class of certificates retained | $ 489,300 | |||
Subordinate certificates | Subsequent Event [Member] | ||||
Loans Held-for-Sale, Net | ||||
Subordinate class of certificates retained | $ 43,400 | |||
Freddie Mac | ||||
Loans Held-for-Sale, Net | ||||
Loans held-for-sale, net | 112,561 | 180,004 | ||
FHA | ||||
Loans Held-for-Sale, Net | ||||
Loans held-for-sale, net | 54,532 | $ 53,063 | ||
SFR - Fixed Rate. | ||||
Loans Held-for-Sale, Net | ||||
Loans held-for-sale, net | $ 9,352 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of the year | $ 379,974 | |
Balance at end of the year | 422,734 | $ 379,974 |
MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of the year | 379,974 | 286,420 |
Additions | 134,116 | 159,533 |
Amortization | (58,615) | (49,222) |
Write-downs and payoffs | (32,741) | (16,757) |
Balance at end of the year | 422,734 | 379,974 |
Prepayment fees collected | 38,200 | $ 12,800 |
Valuation allowance | 0 | |
Expected amortization of capitalized MSRs balances | ||
2022 | 58,814 | |
2023 | 55,777 | |
2024 | 53,179 | |
2025 | 50,610 | |
2026 | 46,582 | |
Thereafter | 157,772 | |
Total | $ 422,734 | |
MSRs | Weighted average | ||
Capitalized Mortgage Servicing Rights | ||
Estimated life remaining | 8 years 6 months | 8 years 7 months 6 days |
Originated MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of the year | $ 336,466 | $ 221,901 |
Additions | 134,116 | 159,533 |
Amortization | (47,845) | (34,186) |
Write-downs and payoffs | (27,164) | (10,782) |
Balance at end of the year | 395,573 | 336,466 |
Acquired MSRs | ||
Capitalized Mortgage Servicing Rights | ||
Balance at beginning of the year | 43,508 | 64,519 |
Amortization | (10,770) | (15,036) |
Write-downs and payoffs | (5,577) | (5,975) |
Balance at end of the year | $ 27,161 | $ 43,508 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)state | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Mortgage Servicing | |||
Interest earned on total escrows | $ 4,200 | $ 7,100 | $ 17,300 |
Fee-based servicing portfolio | |||
Mortgage Servicing | |||
Escrow Deposit | 1,990,000 | 1,290,000 | |
MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 26,959,389 | $ 24,628,456 | |
Weighted average servicing fee (as a percent) | 0.449% | 0.454% | |
MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 100.00% | 100.00% | |
Escrow Deposit | $ 682,500 | $ 867,600 | |
Texas | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 12.00% | 16.00% | |
New York | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 11.00% | 9.00% | |
North Carolina | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 9.00% | 9.00% | |
California | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 8.00% | 9.00% | |
Florida | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 7.00% | |
Georgia | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 6.00% | |
New Jersey | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 4.00% | |
Other States | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 42.00% | 40.00% | |
Number of states accounted for more than 4% of UPB and related servicing revenues | state | 0 | ||
Fannie Mae | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 19,127,397 | $ 18,268,268 | |
Fannie Mae | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 71.00% | 74.00% | |
Freddie Mac | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 4,943,905 | $ 4,881,080 | |
Freddie Mac | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 18.00% | 20.00% | |
Private Label | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 1,711,326 | $ 726,992 | |
Private Label | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 3.00% | |
FHA | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 985,063 | $ 752,116 | |
FHA | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 4.00% | 3.00% | |
SFR - Fixed Rate. | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 191,698 | ||
SFR - Fixed Rate. | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 1.00% |
Securities Held-to-Maturity (De
Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Held-to-Maturity | ||
Face Value | $ 210,728 | $ 140,124 |
Net Carrying Value | 140,484 | 95,524 |
Unrealized Gain | 9,427 | |
Unrealized Loss | (1,396) | |
Estimated Fair Value | 149,911 | 94,128 |
Allowance for Credit Losses | 1,753 | 1,644 |
Held-to-maturity securities | ||
Held-to-Maturity | ||
Face Value | 85,700 | |
B Piece bonds | ||
Held-to-Maturity | ||
Face Value | 61,360 | 76,497 |
Net Carrying Value | 47,615 | 57,839 |
Unrealized Gain | 4,420 | 709 |
Estimated Fair Value | 52,035 | 58,548 |
Allowance for Credit Losses | $ 331 | $ 621 |
Seven B Piece Bonds | Held-to-maturity securities | ||
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 | 6 years 2 months 12 days | |
Initial face value of bonds purchased | $ 106,200 | |
Agency B Piece Bonds | Held-to-maturity securities | ||
Held-to-Maturity | ||
Weighted average variable interest rate (as a percent) | 3.74% | |
Weighted average effective interest rate (as a percent) | 11.32% | 10.85% |
Held-to-maturity securities, estimated fiscal year | ||
Within one year | $ 11,200 | |
After one year through five years | 28,800 | |
After five years through ten years | 3,300 | |
After ten years | 18,100 | |
APL certificates | ||
Held-to-Maturity | ||
Face Value | 149,368 | $ 63,627 |
Net Carrying Value | 92,869 | 37,685 |
Unrealized Gain | 5,007 | |
Unrealized Loss | (2,105) | |
Estimated Fair Value | 97,876 | 35,580 |
Allowance for Credit Losses | 1,422 | 1,023 |
APL certificates | Held-to-maturity securities | ||
Held-to-Maturity | ||
Face Value | 149,400 | $ 63,600 |
Net Carrying Value | $ 91,400 | |
Weighted average variable interest rate (as a percent) | 4.12% | |
Estimated weighted average remaining maturity period | 8 years 6 months | |
Weighted average fixed interest rate | 9.11% | 10.15% |
Held-to-maturity securities, estimated fiscal year | ||
After one year through five years | $ 3,600 | |
After five years through ten years | $ 145,800 | |
APL certificates | Held-to-maturity securities | Minimum | ||
Held-to-Maturity | ||
Securities maturity term | 5 years | |
APL certificates | Held-to-maturity securities | Maximum | ||
Held-to-Maturity | ||
Securities maturity term | 10 years |
Securities Held-to-Maturity - R
Securities Held-to-Maturity - Rollforward of Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the allowance for credit losses | |||
Allowance for credit loss, Beginning balance | $ 1,644 | ||
Provision for credit loss expense/(reversal) | 109 | ||
Allowance for credit loss, Ending balance | 1,753 | $ 1,644 | |
Held-to-maturity securities | |||
Changes in the allowance for credit losses | |||
Impairment of held-to maturity securities | 0 | ||
Interest income (including the amortization of discount) | 13,200 | 9,700 | $ 9,900 |
APL certificates | |||
Changes in the allowance for credit losses | |||
Allowance for credit loss, Beginning balance | 1,023 | ||
Provision for credit loss expense/(reversal) | 399 | ||
Allowance for credit loss, Ending balance | 1,422 | 1,023 | |
B Piece bonds | |||
Changes in the allowance for credit losses | |||
Allowance for credit loss, Beginning balance | 621 | ||
Provision for credit loss expense/(reversal) | (290) | ||
Allowance for credit loss, Ending balance | $ 331 | $ 621 |
Investments in Equity Affilia_3
Investments in Equity Affiliates - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 89,676 | $ 74,274 |
UPB of Loans to Equity Affiliates | 1,687 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 65,756 | 59,150 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 13,772 | 10,308 |
Fifth Wall Ventures III | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 5,409 | |
North Vermont Avenue | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 2,419 | 2,496 |
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 | $ 1,687 |
Investments in Equity Affilia_4
Investments in Equity Affiliates - Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statements of Income: | |||
Total revenues | $ 333,148 | $ 264,259 | $ 219,845 |
Total expenses | 198,024 | 270,198 | 182,308 |
Net income | $ 377,807 | $ 196,157 | $ 155,238 |
Investments in Equity Affilia_5
Investments in Equity Affiliates - All Investments (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2021 | Dec. 31, 2021USD ($)item | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2021USD ($) | |
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | $ 34,567,000 | $ 76,161,000 | $ 10,635,000 | |||||||
Indirect ownership percentage | 9.20% | |||||||||
Noncontrolling interest invested | $ 48,071,000 | 892,000 | 13,522,000 | |||||||
Arbor Residential Investor LLC | ||||||||||
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | 34,600,000 | 75,700,000 | $ 7,200,000 | |||||||
Distribution received | 28,000,000 | 43,200,000 | ||||||||
Equity Investment | $ 9,600,000 | |||||||||
Percentage of ownership interest of related party in the entity | 50.00% | |||||||||
Arbor Residential Investor LLC | Minimum | ||||||||||
Investment in Equity Affiliates | ||||||||||
Indirect ownership percentage | 12.30% | |||||||||
Arbor Residential Investor LLC | Maximum | ||||||||||
Investment in Equity Affiliates | ||||||||||
Indirect ownership percentage | 16.30% | |||||||||
Arbor Residential Investor LLC | Wakefield Investment Holdings Llc [Member] | ||||||||||
Investment in Equity Affiliates | ||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | |||||||||
Residential mortgage banking business | ||||||||||
Investment in Equity Affiliates | ||||||||||
Indirect ownership percentage | (65.00%) | |||||||||
AMAC Holdings III LLC | ||||||||||
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | 1,300,000 | 900,000 | ||||||||
Distribution received | 3,800,000 | 100,000 | ||||||||
Investment in real estate committed | $ 30,000,000 | |||||||||
Investment in real estate | $ 20,300,000 | 20,300,000 | ||||||||
Interest in a real estate investment (as a percent) | 18.00% | |||||||||
Fifth Wall Ventures III | ||||||||||
Investment in Equity Affiliates | ||||||||||
Investment in real estate committed | 25,000,000 | |||||||||
Investment in real estate | 5,400,000 | $ 5,400,000 | ||||||||
Interest in a real estate investment (as a percent) | 7.60% | |||||||||
Number of investments | 2 | |||||||||
North Vermont Avenue | ||||||||||
Investment in Equity Affiliates | ||||||||||
Noncontrolling interest invested | $ 2,400,000 | |||||||||
Noncontrolling interest in equity method investment (as a percent) | 85.00% | |||||||||
Lightstone Value Plus REIT L.P. | ||||||||||
Investment in Equity Affiliates | ||||||||||
Equity Investment | $ 1,900,000 | $ 1,900,000 | ||||||||
West Shore Cafe | ||||||||||
Investment in Equity Affiliates | ||||||||||
Ownership percentage | 50.00% | 50.00% | ||||||||
Provided first mortgage loan to an affiliated entity | $ 1,700,000 | |||||||||
Variable rate, spread (as a percent) | 4.00% | |||||||||
Other-than-temporary impairment recorded | 2,200,000 | |||||||||
Provision for loan loss recorded | $ 1,700,000 | |||||||||
JT Prime | ||||||||||
Investment in Equity Affiliates | ||||||||||
Equity Investment | $ 400,000 | $ 400,000 | ||||||||
Noncontrolling interest in equity method investment (as a percent) | 50.00% | |||||||||
Century Summerfield Apartments | ||||||||||
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | $ 200,000 | |||||||||
Distribution received | $ 17,200,000 | |||||||||
Investment in real estate committed | $ 20,000,000 | |||||||||
Investment in real estate | $ 17,000,000 | |||||||||
Ownership percentage | 50.00% | |||||||||
Tapestry on the River | ||||||||||
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | 700,000 | |||||||||
Distribution received | 14,700,000 | |||||||||
Investment in real estate | $ 14,000,000 | |||||||||
Ownership percentage | 48.90% | |||||||||
Emerson at Forney | ||||||||||
Investment in Equity Affiliates | ||||||||||
Income from equity affiliates | 200,000 | |||||||||
Distribution received | $ 3,200,000 | |||||||||
Investment in real estate | $ 3,000,000 | |||||||||
Ownership percentage | 11.10% | |||||||||
Lexford Portfolio | ||||||||||
Investment in Equity Affiliates | ||||||||||
Distribution received | $ 1,100,000 | $ 3,500,000 | ||||||||
Noncontrolling interest | 100,000 | |||||||||
East River Portfolio | ||||||||||
Investment in Equity Affiliates | ||||||||||
Equity investment made | $ 100,000 | |||||||||
Ownership percentage | 5.00% | 5.00% | ||||||||
Number of Real Estate Properties | item | 2 | 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% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Accumulated Amortization | $ (28,276) | $ (23,585) | |
Intangible assets | |||
Intangible assets, Gross Carrying Value | 72,410 | 72,410 | |
Intangible assets, net | 44,134 | 48,825 | |
Amortization expense | 4,700 | 5,300 | $ 5,500 |
Fannie Mae DUS license | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Carrying Value | 17,100 | 17,100 | |
Freddie Mac Program Plus license | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Carrying Value | 8,700 | 8,700 | |
FHA License | |||
Infinite-lived intangible assets: | |||
Infinite-lived intangible assets, Carrying Value | 3,200 | 3,200 | |
Broker relationships | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 25,000 | 25,000 | |
Finite-lived intangible assets, Accumulated Amortization | (17,057) | (13,932) | |
Total | 7,943 | 11,068 | |
Borrower relationships | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 14,400 | 14,400 | |
Finite-lived intangible assets, Accumulated Amortization | (7,860) | (6,420) | |
Total | 6,540 | 7,980 | |
Below market leases | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, Gross Carrying Value | 4,010 | 4,010 | |
Finite-lived intangible assets, Accumulated Amortization | (3,359) | (3,233) | |
Total | $ 651 | $ 777 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Estimated Amortization Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Finite-Lived Intangible Assets, Excluding Servicing Contracts [Member] | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 3 years 6 months |
2022 | $ 4,691 |
2023 | 4,691 |
2024 | 3,259 |
2025 | 1,566 |
2026 | $ 906 |
Broker relationships | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 2 years 6 months |
2022 | $ 3,125 |
2023 | 3,125 |
2024 | $ 1,693 |
Borrower relationships | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 4 years 6 months |
2022 | $ 1,440 |
2023 | 1,440 |
2024 | 1,440 |
2025 | 1,440 |
2026 | $ 780 |
Below market leases | |
Finite-lived intangible assets: | |
Wtd. Avg. Remaining Life (in years) | 5 years 2 months 12 days |
2022 | $ 126 |
2023 | 126 |
2024 | 126 |
2025 | 126 |
2026 | $ 126 |
Debt Obligations - Credit and R
Debt Obligations - Credit and Repurchase Facilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Obligations | |||
UPB | $ 4,493,699 | $ 2,238,722 | |
Debt Carrying Value | 4,481,579 | 2,234,883 | |
Collateral Carrying Value | $ 5,585,460 | $ 2,724,420 | |
Weighted Average Note Rate (as a percent) | 2.21% | 2.20% | |
Utilization of credit facility | $ 67,000 | ||
Minimum | |||
Debt Obligations | |||
Maximum advance rate | 75.00% | ||
Maximum | |||
Debt Obligations | |||
Maximum advance rate | 85.00% | ||
$50M credit facility | |||
Debt Obligations | |||
UPB | $ 9,295 | $ 88,911 | |
Debt Carrying Value | 9,295 | 88,896 | |
Collateral Carrying Value | $ 9,295 | $ 88,911 | |
Weighted Average Note Rate (as a percent) | 1.40% | 1.65% | |
$25M credit facility. | |||
Debt Obligations | |||
UPB | $ 10,285 | $ 9,539 | |
Debt Carrying Value | 10,218 | 9,323 | |
Collateral Carrying Value | $ 14,773 | $ 14,340 | |
Weighted Average Note Rate (as a percent) | 2.38% | 2.43% | |
Joint Repurchase Facility | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 2,500,000 | ||
Additional borrowing capacity | $ 150,000 | ||
Extension of maturity date (in years) | 1 year | ||
Joint Repurchase Facility | Private Label | |||
Debt Obligations | |||
Maximum advance rate | 80.00% | ||
Joint Repurchase Facility | Structured loans | |||
Debt Obligations | |||
Maximum advance rate | 85.00% | ||
Joint Repurchase Facility | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 5.75% | ||
Structured Transaction Business | |||
Debt Obligations | |||
UPB | $ 3,533,016 | $ 1,286,100 | |
Debt Carrying Value | 3,525,307 | 1,282,845 | |
Collateral Carrying Value | $ 4,548,653 | $ 1,755,825 | |
Weighted Average Note Rate (as a percent) | 2.34% | 2.73% | |
Unamortized deferred finance costs | $ 7,700 | $ 3,300 | |
Weighted average note rate including certain fees and costs (as a percent) | 2.51% | 2.97% | |
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreement used to finance leasehold and capital expenditure improvements at corporate office (as a percent) | 77.00% | 69.00% | |
Structured Transaction Business | LIBOR | |||
Debt Obligations | |||
LIBOR Floor rate | 0.25% | ||
Variable rate, spread (as a percent) | 3.25% | ||
Structured Transaction Business | B Piece bonds | |||
Debt Obligations | |||
Debt Instrument, Collateral Amount | $ 47,600 | $ 57,800 | |
Structured Transaction Business | SFR - Fixed Rate | |||
Debt Obligations | |||
Collateral Carrying Value | $ 10,000 | ||
Structured Transaction Business | Senior mortgage loans | |||
Debt Obligations | |||
Weighted Average Note Rate (as a percent) | 4.01% | ||
Structured Transaction Business | $2.00B joint repurchase facility | |||
Debt Obligations | |||
UPB | $ 1,490,434 | 682,958 | |
Debt Carrying Value | 1,486,380 | 681,006 | |
Collateral Carrying Value | $ 1,877,930 | $ 1,054,562 | |
Weighted Average Note Rate (as a percent) | 2.56% | 2.55% | |
Maximum borrowing capacity | $ 2,000,000 | ||
Structured Transaction Business | $1.00B repurchase facility | |||
Debt Obligations | |||
UPB | 676,608 | $ 192,193 | |
Debt Carrying Value | 675,415 | 191,622 | |
Collateral Carrying Value | $ 937,880 | $ 259,559 | |
Weighted Average Note Rate (as a percent) | 2.04% | 2.99% | |
Maximum borrowing capacity | $ 1,000,000 | ||
Structured Transaction Business | $1.00B repurchase facility | LIBOR | |||
Debt Obligations | |||
Maximum advance rate | 75.00% | ||
LIBOR Floor rate | 0.35% | ||
Decrease in interest rate (as a percent) | 0.20% | ||
Structured Transaction Business | $1.00B repurchase facility | Minimum | LIBOR | |||
Debt Obligations | |||
Maximum advance rate | 2.00% | ||
LIBOR Floor rate | 0.35% | ||
Line of Credit Facility, Interest Rate at Period End | 2.00% | ||
Utilization of credit facility | $ 250,000 | ||
Structured Transaction Business | $1.00B repurchase facility | Maximum | LIBOR | |||
Debt Obligations | |||
LIBOR Floor rate | 0.35% | ||
Variable rate, spread (as a percent) | 1.75% | ||
Line of Credit Facility, Interest Rate at Period End | 2.20% | ||
Utilization of credit facility | $ 250,000 | ||
Structured Transaction Business | $450M repurchase facility | |||
Debt Obligations | |||
UPB | 397,842 | ||
Debt Carrying Value | 397,272 | ||
Collateral Carrying Value | $ 511,269 | ||
Weighted Average Note Rate (as a percent) | 1.89% | ||
Maximum borrowing capacity | $ 450,000 | ||
Structured Transaction Business | $450M repurchase facility | Minimum | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.00% | ||
Structured Transaction Business | $450M repurchase facility | Minimum | Multifamily | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 1.75% | ||
Structured Transaction Business | $450M repurchase facility | Maximum | Multifamily | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.25% | ||
Structured Transaction Business | $450M repurchase facility | Maximum | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.75% | ||
Structured Transaction Business | $398.7M repurchase facility (2) | |||
Debt Obligations | |||
UPB | $ 242,034 | $ 71,656 | |
Debt Carrying Value | 241,450 | 71,627 | |
Collateral Carrying Value | $ 289,956 | $ 87,242 | |
Weighted Average Note Rate (as a percent) | 3.04% | 2.73% | |
Maximum borrowing capacity | $ 398,700 | ||
Structured Transaction Business | $325M repurchase facility | |||
Debt Obligations | |||
UPB | 294,145 | $ 31,780 | |
Debt Carrying Value | 293,700 | 31,780 | |
Collateral Carrying Value | $ 385,337 | $ 40,551 | |
Weighted Average Note Rate (as a percent) | 1.76% | 1.92% | |
Maximum borrowing capacity | $ 325,000 | ||
Structured Transaction Business | $225M credit facility | |||
Debt Obligations | |||
UPB | 28,213 | $ 23,857 | |
Debt Carrying Value | 27,826 | 23,606 | |
Collateral Carrying Value | $ 42,270 | $ 31,809 | |
Weighted Average Note Rate (as a percent) | 2.79% | 4.06% | |
Maximum borrowing capacity | $ 225,000 | ||
Structured Transaction Business | $225M credit facility | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.50% | ||
Structured Transaction Business | $225M credit facility | Minimum | SFR - Fixed Rate | |||
Debt Obligations | |||
LIBOR Floor rate | 2.75% | ||
Structured Transaction Business | $225M credit facility | Maximum | SFR - Fixed Rate | |||
Debt Obligations | |||
LIBOR Floor rate | 3.85% | ||
Structured Transaction Business | $200M credit facility | |||
Debt Obligations | |||
UPB | $ 177,599 | $ 39,389 | |
Debt Carrying Value | 177,406 | 39,346 | |
Collateral Carrying Value | $ 236,538 | $ 47,912 | |
Weighted Average Note Rate (as a percent) | 1.70% | 2.24% | |
Maximum borrowing capacity | $ 200,000 | ||
Structured Transaction Business | $200M credit facility | SOFR | Multifamily | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 1.61% | ||
Structured Transaction Business | $200M credit facility | SOFR | Independent living facilities | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.31% | ||
Structured Transaction Business | $200M credit facility | SOFR | Assisted living facilities | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.56% | ||
Structured Transaction Business | $200M credit facility | LIBOR | |||
Debt Obligations | |||
LIBOR Floor rate | 0.25% | ||
Variable rate, spread (as a percent) | 1.35% | ||
Structured Transaction Business | $200M credit facility | Healthcare Related Loans | SOFR | Assisted living facilities | |||
Debt Obligations | |||
Additional borrowing capacity | $ 25,000 | ||
Structured Transaction Business | $153.9M loan specific credit facilities | |||
Debt Obligations | |||
UPB | 153,937 | $ 148,798 | |
Debt Carrying Value | 153,727 | 148,615 | |
Collateral Carrying Value | $ 214,300 | $ 198,550 | |
Weighted Average Note Rate (as a percent) | 3.14% | 3.03% | |
Maximum borrowing capacity | $ 153,900 | ||
Structured Transaction Business | $153.9M loan specific credit facilities | Prime Rate | |||
Debt Obligations | |||
Fixed interest rate (as a percent) | 3.25% | ||
Structured Transaction Business | $153.9M loan specific credit facilities | Minimum | |||
Debt Obligations | |||
Fixed interest rate (as a percent) | 3.00% | ||
Structured Transaction Business | $153.9M loan specific credit facilities | Minimum | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.20% | ||
Structured Transaction Business | $153.9M loan specific credit facilities | Maximum | |||
Debt Obligations | |||
Fixed interest rate (as a percent) | 4.00% | ||
Structured Transaction Business | $153.9M loan specific credit facilities | Maximum | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.40% | ||
Structured Transaction Business | $50M credit facility | |||
Debt Obligations | |||
UPB | $ 29,200 | $ 16,002 | |
Debt Carrying Value | 29,194 | 15,992 | |
Collateral Carrying Value | $ 36,500 | $ 21,300 | |
Weighted Average Note Rate (as a percent) | 2.13% | 2.17% | |
Maximum borrowing capacity | $ 50,000 | ||
Structured Transaction Business | $50M credit facility | LIBOR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.00% | ||
Structured Transaction Business | $30M working capital facility | |||
Debt Obligations | |||
UPB | $ 30,000 | ||
Debt Carrying Value | $ 30,000 | ||
Weighted Average Note Rate (as a percent) | 3.55% | ||
Maximum borrowing capacity | $ 30,000 | ||
Structured Transaction Business | $30M working capital facility | LIBOR | |||
Debt Obligations | |||
LIBOR Floor rate | 0.25% | ||
Variable rate, spread (as a percent) | 3.25% | ||
Structured Transaction Business | $25M credit facility | |||
Debt Obligations | |||
UPB | $ 1,235 | ||
Debt Carrying Value | 1,235 | ||
Collateral Carrying Value | $ 1,900 | ||
Weighted Average Note Rate (as a percent) | 4.06% | ||
Maximum borrowing capacity | $ 25,000 | ||
Structured Transaction Business | $25M credit facility | LIBOR | |||
Debt Obligations | |||
LIBOR Floor rate | 3.85% | ||
Variable rate, spread (as a percent) | 2.50% | ||
Structured Transaction Business | $25M credit facility. | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 25,000 | ||
Structured Transaction Business | $25M credit facility. | SOFR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.35% | ||
Structured Transaction Business | $1M master security agreement | |||
Debt Obligations | |||
UPB | $ 635 | $ 1,441 | |
Debt Carrying Value | $ 635 | $ 1,441 | |
Weighted Average Note Rate (as a percent) | 4.01% | 4.10% | |
Maximum borrowing capacity | $ 1,000 | ||
Structured Transaction Business | Repurchase facility - securities (3) | |||
Debt Obligations | |||
UPB | 30,849 | $ 38,487 | |
Debt Carrying Value | $ 30,849 | $ 38,487 | |
Weighted Average Note Rate (as a percent) | 3.40% | 3.47% | |
Structured Transaction Business | $150M credit facility | SOFR | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 150,000 | ||
Variable rate, spread (as a percent) | 1.46% | ||
Additional borrowing capacity | $ 50,000 | ||
Decrease in interest rate (as a percent) | 1.86% | ||
Structured Transaction Business | $400M repurchase facility | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 400,000 | ||
Structured Transaction Business | $400M repurchase facility | SOFR | |||
Debt Obligations | |||
LIBOR Floor rate | 0.25% | ||
Structured Transaction Business | $400M repurchase facility | Minimum | SOFR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 1.75% | ||
Structured Transaction Business | $400M repurchase facility | Maximum | SOFR | |||
Debt Obligations | |||
Variable rate, spread (as a percent) | 2.25% | ||
Structured Transaction Business | $200 million repurchase facility | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 200,000 | ||
Additional borrowing capacity | 325,000 | ||
Agency Business | |||
Debt Obligations | |||
UPB | 960,683 | $ 952,622 | |
Debt Carrying Value | 956,272 | 952,038 | |
Collateral Carrying Value | $ 1,036,807 | $ 968,595 | |
Weighted Average Note Rate (as a percent) | 1.75% | 1.48% | |
Unamortized deferred finance costs | $ 4,400 | $ 600 | |
Agency Business | Fannie Mae Mortgage | |||
Debt Obligations | |||
Letters of Credit Outstanding, Amount | 45,000 | ||
Agency Business | Freddie Mac Mortgage | |||
Debt Obligations | |||
Committed amount | 5,000 | ||
Letters of Credit Outstanding, Amount | 5,000 | ||
Agency Business | $200M credit facility | |||
Debt Obligations | |||
UPB | 115,351 | 294,815 | |
Debt Carrying Value | 115,304 | 294,732 | |
Collateral Carrying Value | $ 115,351 | $ 296,698 | |
Weighted Average Note Rate (as a percent) | 1.60% | 1.30% | |
Maximum borrowing capacity | $ 200,000 | ||
Agency Business | $50M credit facility | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 50,000 | ||
Fixed interest rate (as a percent) | 2.875% | ||
Variable rate, spread (as a percent) | 1.30% | ||
Agency Business | $750M ASAP agreement | |||
Debt Obligations | |||
UPB | $ 182,130 | $ 301,455 | |
Debt Carrying Value | 182,130 | 301,455 | |
Collateral Carrying Value | $ 182,140 | $ 302,491 | |
Weighted Average Note Rate (as a percent) | 1.40% | 1.40% | |
Maximum borrowing capacity | $ 750,000 | ||
LIBOR Floor rate | 0.25% | ||
Debt Instrument, Reduced Basis Spread on Variable Rate | 1.26% | ||
Debt Instrument, Collateral Amount | $ 750,000 | ||
Agency Business | $500M joint repurchase facility | |||
Debt Obligations | |||
UPB | 399,470 | $ 43,132 | |
Debt Carrying Value | 395,317 | 42,808 | |
Collateral Carrying Value | $ 475,360 | $ 56,186 | |
Weighted Average Note Rate (as a percent) | 2.11% | 2.07% | |
Maximum borrowing capacity | $ 500,000 | ||
Agency Business | $500M repurchase facility | |||
Debt Obligations | |||
UPB | 236,527 | $ 174,555 | |
Debt Carrying Value | 236,429 | 174,515 | |
Collateral Carrying Value | $ 236,527 | $ 174,555 | |
Weighted Average Note Rate (as a percent) | 1.58% | 1.64% | |
Maximum borrowing capacity | $ 500,000 | ||
Agency Business | $150M credit facility | |||
Debt Obligations | |||
UPB | 16,657 | $ 49,754 | |
Debt Carrying Value | 16,544 | 49,632 | |
Collateral Carrying Value | $ 16,657 | $ 49,754 | |
Weighted Average Note Rate (as a percent) | 1.51% | 1.65% | |
Maximum borrowing capacity | $ 150,000 | ||
Agency Business | $1.3M repurchase facility (2) | |||
Debt Obligations | |||
UPB | 1,253 | ||
Debt Carrying Value | 1,253 | ||
Collateral Carrying Value | $ 1,477 | ||
Weighted Average Note Rate (as a percent) | 3.00% | ||
Maximum borrowing capacity | $ 1,300 | ||
Agency Business | $400M repurchase facility | LIBOR | |||
Debt Obligations | |||
Maximum borrowing capacity | $ 500,000 | ||
Debt Instrument, Reduced Basis Spread on Variable Rate | 1.48% |
Debt Obligations - Collateraliz
Debt Obligations - Collateralized Loan Obligations (Details) | Sep. 30, 2021USD ($)trancheitem | Jun. 30, 2021USD ($)itemtranche | Feb. 28, 2022USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)itemtranche | Dec. 31, 2021USD ($)trancheitem | Dec. 31, 2020USD ($)trancheitem | Dec. 31, 2019USD ($)trancheitem | Dec. 31, 2018USD ($)trancheitem |
Debt Obligations | ||||||||||
Proceeds from issuance of collateralized loan obligations | $ 4,281,512,000 | $ 668,000,000 | $ 1,067,193,000 | |||||||
Debt, Carrying Value | $ 5,892,810,000 | $ 2,517,309,000 | ||||||||
Weighted average note rate (as a percent) | 2.21% | 2.20% | ||||||||
Payoffs and paydowns of collateralized loan obligations | $ 889,150,000 | $ 283,125,000 | $ 529,250,000 | |||||||
UPB | 4,493,699,000 | 2,238,722,000 | ||||||||
Collateralized loan obligations | ||||||||||
Debt Obligations | ||||||||||
Debt, Face Value | 5,924,705,000 | 2,532,343,000 | ||||||||
Debt, Carrying Value | $ 5,892,810,000 | $ 2,517,309,000 | ||||||||
Weighted average note rate (as a percent) | 1.59% | 1.60% | ||||||||
Collateral Loans, Unpaid Principal | $ 6,645,088,000 | $ 2,932,791,000 | ||||||||
Collateral Loans, Carrying Value | 6,616,810,000 | 2,923,634,000 | ||||||||
Cash, Restricted Cash | 329,496,000 | 138,683,000 | ||||||||
Deferred financing fees | $ 31,900,000 | $ 15,000,000 | ||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.86% | 1.93% | ||||||||
Collateral at risk | $ 0 | $ 0 | ||||||||
CLO 18 | Subsequent event | ||||||||||
Debt Obligations | ||||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 2,050,000,000 | |||||||||
Notional amount of residual interest retained | 397,200,000 | |||||||||
CLO 18 | Investment grade | Subsequent event | ||||||||||
Debt Obligations | ||||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | 1,650,000,000 | |||||||||
CLO 18 | Below investment grade | Subsequent event | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 210,100,000 | |||||||||
CLO 17 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 8 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Value of the tranches issued | $ 1,910,000,000 | |||||||||
Debt, Face Value | 1,714,125,000 | |||||||||
Debt, Carrying Value | $ 1,705,549,000 | |||||||||
Weighted average note rate (as a percent) | 1.81% | |||||||||
Collateral Loans, Unpaid Principal | $ 1,914,280,000 | |||||||||
Collateral Loans, Carrying Value | 1,903,997,000 | |||||||||
Cash, Restricted Cash | $ 118,520,000 | |||||||||
Replacement period | 2 years 6 months | |||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 315,000,000 | |||||||||
Maximum period to acquire additional loan obligations | 180 days | |||||||||
Notional amount of residual interest retained | $ 385,900,000 | |||||||||
Value of portfolio loans as collateral | 1,790,000,000 | |||||||||
Face value of loan obligations will be owned by the issuer | $ 2,100,000,000 | |||||||||
Leverage (as a percent) | 82.00% | |||||||||
UPB | $ 194,300,000 | |||||||||
CLO 17 | One-month LIBOR | ||||||||||
Debt Obligations | ||||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.68% | |||||||||
CLO 17 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 194,300,000 | |||||||||
CLO 16 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 8 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Value of the tranches issued | $ 1,370,000,000 | $ 1,370,000,000 | ||||||||
Debt, Face Value | 1,240,000,000 | 1,240,000,000 | 1,237,500,000 | |||||||
Debt, Carrying Value | $ 135,000,000 | $ 135,000,000 | $ 1,230,093,000 | |||||||
Weighted average note rate (as a percent) | 1.31% | 1.31% | 1.44% | |||||||
Collateral Loans, Unpaid Principal | $ 1,444,573,000 | |||||||||
Collateral Loans, Carrying Value | 1,436,743,000 | |||||||||
Replacement period | 2 years 6 months | |||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 313,000,000 | |||||||||
Maximum period to acquire additional loan obligations | 180 days | |||||||||
Notional amount of residual interest retained | $ 262,500,000 | $ 262,500,000 | ||||||||
Value of portfolio loans as collateral | 1,190,000,000 | 1,190,000,000 | ||||||||
Face value of loan obligations will be owned by the issuer | $ 1,500,000,000 | $ 1,500,000,000 | ||||||||
Leverage (as a percent) | 83.00% | 83.00% | ||||||||
CLO 16 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 135,000,000 | $ 135,000,000 | ||||||||
CLO 15 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 8 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Value of the tranches issued | $ 747,800,000 | $ 747,800,000 | ||||||||
Debt, Face Value | 674,400,000 | 674,400,000 | 674,412,000 | |||||||
Debt, Carrying Value | 73,400,000 | $ 73,400,000 | $ 669,723,000 | |||||||
Weighted average note rate (as a percent) | 1.49% | |||||||||
Collateral Loans, Unpaid Principal | $ 785,761,000 | |||||||||
Collateral Loans, Carrying Value | 782,682,000 | |||||||||
Cash, Restricted Cash | 15,750,000 | |||||||||
Replacement period | 2 years 6 months | |||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 162,000,000 | |||||||||
Maximum period to acquire additional loan obligations | 180 days | |||||||||
Notional amount of residual interest retained | $ 140,600,000 | $ 140,600,000 | ||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.37% | 1.37% | ||||||||
Value of portfolio loans as collateral | $ 653,000,000 | $ 653,000,000 | ||||||||
Face value of loan obligations will be owned by the issuer | $ 815,000,000 | $ 815,000,000 | ||||||||
Leverage (as a percent) | 83.00% | 83.00% | ||||||||
CLO 15 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 73,400,000 | $ 73,400,000 | ||||||||
CLO 14 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 8 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Value of the tranches issued | $ 724,200,000 | |||||||||
Debt, Face Value | 655,500,000 | 655,475,000 | ||||||||
Debt, Carrying Value | $ 68,700,000 | $ 650,947,000 | ||||||||
Weighted average note rate (as a percent) | 1.45% | |||||||||
Collateral Loans, Unpaid Principal | $ 717,396,000 | |||||||||
Collateral Loans, Carrying Value | 715,154,000 | |||||||||
Cash, Restricted Cash | 53,342,000 | |||||||||
Replacement period | 2 years 6 months | |||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 149,800,000 | |||||||||
Maximum period to acquire additional loan obligations | 180 days | |||||||||
Notional amount of residual interest retained | $ 129,500,000 | |||||||||
Value of portfolio loans as collateral | 635,200,000 | |||||||||
Face value of loan obligations will be owned by the issuer | $ 785,000,000 | |||||||||
Leverage (as a percent) | 84.00% | |||||||||
CLO 14 | One-month LIBOR | ||||||||||
Debt Obligations | ||||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.33% | |||||||||
CLO 14 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 68,700,000 | |||||||||
CLO 13 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 8 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Value of the tranches issued | $ 738,000,000 | |||||||||
Debt, Face Value | 668,000,000 | 668,000,000 | ||||||||
Debt, Carrying Value | $ 665,006,000 | $ 663,804,000 | ||||||||
Weighted average note rate (as a percent) | 1.54% | 1.58% | ||||||||
Collateral Loans, Unpaid Principal | $ 740,369,000 | $ 768,664,000 | ||||||||
Collateral Loans, Carrying Value | 738,265,000 | 765,923,000 | ||||||||
Cash, Restricted Cash | 48,543,000 | $ 43,000 | ||||||||
Replacement period | 3 years | |||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 159,500,000 | |||||||||
Maximum period to acquire additional loan obligations | 180 days | |||||||||
Notional amount of residual interest retained | $ 132,000,000 | |||||||||
Value of portfolio loans as collateral | 640,500,000 | |||||||||
Face value of loan obligations will be owned by the issuer | $ 800,000,000 | |||||||||
Leverage (as a percent) | 84.00% | |||||||||
UPB | $ 70,000,000 | |||||||||
CLO 13 | One-month LIBOR | ||||||||||
Debt Obligations | ||||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.41% | |||||||||
CLO 13 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 70,000,000 | |||||||||
CLO 12 | ||||||||||
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 | |||||||||
Value of the tranches issued | 585,800,000 | |||||||||
Debt, Face Value | 534,193,000 | 534,193,000 | 534,200,000 | |||||||
Debt, Carrying Value | $ 531,939,000 | $ 530,673,000 | $ 51,600,000 | |||||||
Weighted average note rate (as a percent) | 1.62% | 1.66% | ||||||||
Collateral Loans, Unpaid Principal | $ 557,249,000 | $ 628,935,000 | ||||||||
Collateral Loans, Carrying Value | 555,974,000 | 627,262,000 | ||||||||
Cash, Restricted Cash | 35,635,000 | 2,005,000 | ||||||||
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 | |||||||||
Face value of loan obligations will be owned by the issuer | $ 635,000,000 | |||||||||
Leverage (as a percent) | 84.00% | |||||||||
CLO 12 | One-month LIBOR | ||||||||||
Debt Obligations | ||||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.50% | |||||||||
CLO 12 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 51,600,000 | |||||||||
CLO 11 | ||||||||||
Debt Obligations | ||||||||||
Debt, Face Value | 533,000,000 | |||||||||
Debt, Carrying Value | $ 529,859,000 | |||||||||
Weighted average note rate (as a percent) | 1.61% | |||||||||
Collateral Loans, Unpaid Principal | $ 555,157,000 | |||||||||
Collateral Loans, Carrying Value | 553,286,000 | |||||||||
Cash, Restricted Cash | 92,395,000 | |||||||||
CLO 10 | ||||||||||
Debt Obligations | ||||||||||
Number of tranches of CLO notes issued | tranche | 7 | |||||||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||||||||
Proceeds from issuance of collateralized loan obligations | $ 58,100,000 | |||||||||
Value of the tranches issued | 494,200,000 | |||||||||
Debt, Face Value | 441,000,000 | 441,000,000 | 441,000,000 | |||||||
Debt, Carrying Value | $ 439,553,000 | $ 438,442,000 | $ 53,200,000 | |||||||
Weighted average note rate (as a percent) | 1.57% | 1.61% | ||||||||
Collateral Loans, Unpaid Principal | $ 485,460,000 | $ 522,132,000 | ||||||||
Collateral Loans, Carrying Value | 483,995,000 | 520,507,000 | ||||||||
Cash, Restricted Cash | 57,706,000 | 25,537,000 | ||||||||
Replacement period | 4 years | |||||||||
Maximum period to acquire additional loan obligations | 120 days | |||||||||
Notional amount of residual interest retained | $ 119,000,000 | |||||||||
Value of portfolio loans as collateral | 501,900,000 | |||||||||
Face value of loan obligations will be owned by the issuer | $ 560,000,000 | |||||||||
Leverage (as a percent) | 79.00% | |||||||||
CLO 10 | One-month LIBOR | ||||||||||
Debt Obligations | ||||||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.45% | |||||||||
CLO 10 | Below investment grade | ||||||||||
Debt Obligations | ||||||||||
Notional amount of residual interest retained | $ 53,200,000 | |||||||||
CLO 9 | ||||||||||
Debt Obligations | ||||||||||
Debt, Face Value | 356,150,000 | |||||||||
Debt, Carrying Value | $ 354,531,000 | |||||||||
Weighted average note rate (as a percent) | 1.53% | |||||||||
Collateral Loans, Unpaid Principal | $ 457,903,000 | |||||||||
Collateral Loans, Carrying Value | 456,656,000 | |||||||||
Cash, Restricted Cash | 18,703,000 | |||||||||
CLO 11 and CLO 9 | ||||||||||
Debt Obligations | ||||||||||
Debt Instrument Redemption Value | 889,200,000 | |||||||||
Deferred fees expensed as interest expense | 3,400,000 | |||||||||
CLO 8 | ||||||||||
Debt Obligations | ||||||||||
Debt Instrument Redemption Value | 282,900,000 | |||||||||
Deferred fees expensed as interest expense | 1,500,000 | |||||||||
CLO 7 and CLO 6 | ||||||||||
Debt Obligations | ||||||||||
Debt Instrument Redemption Value | 529,300,000 | |||||||||
Deferred fees expensed as interest expense | $ 2,600,000 | |||||||||
CLO VII | ||||||||||
Debt Obligations | ||||||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 133,700,000 | $ 49,500,000 |
Debt Obligations - Luxembourg D
Debt Obligations - Luxembourg Debt Fund (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||||
Secured Debt. | $ 5,892,810 | $ 2,517,309 | ||
Debt, Weighted Average Interest Rate | 2.21% | 2.20% | ||
Gain (loss) on real estate | $ (3,374) | $ (3,546) | $ (7,439) | |
Luxembourg debt fund | ||||
Debt Obligations | ||||
Debt Weighted Average Interest Rate Including Fees and Costs | 5.34% | 5.65% | ||
Gain (loss) on real estate | $ 1,600 |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Jun. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Obligations | ||||||||||||
Senior notes carrying value | $ 1,280,545 | $ 1,280,545 | $ 662,843 | |||||||||
5.00% Convertible notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 180,000 | $ 180,000 | ||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||||
Proceeds from issued debt | $ 177,200 | |||||||||||
4.50% Convertible Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 275,000 | $ 270,000 | $ 275,000 | $ 275,000 | 275,000 | |||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Proceeds from issued debt | $ 265,800 | $ 271,800 | ||||||||||
5.00% Convertible Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 175,000 | $ 175,000 | $ 175,000 | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | |||||||||
Proceeds from issued debt | $ 172,300 | |||||||||||
5.625% Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 125,000 | $ 100,000 | $ 125,000 | 125,000 | ||||||||
Interest rate (as a percent) | 5.625% | 5.625% | 5.625% | |||||||||
Proceeds from issued debt | $ 25,000 | $ 122,300 | ||||||||||
4.75% Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 110,000 | $ 110,000 | 110,000 | |||||||||
Redemption of aggregate principal amount (as a percent) | 100.00% | 100.00% | ||||||||||
5.75% Convertible Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 90,000 | $ 90,000 | $ 90,000 | 90,000 | ||||||||
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% | |||||||||
Proceeds from issued debt | $ 88,200 | |||||||||||
Senior Unsecured Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 1,295,750 | $ 1,295,750 | 670,750 | |||||||||
8.00% Convertible Notes | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 70,750 | $ 40,500 | $ 70,750 | 70,750 | ||||||||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | |||||||||
Proceeds from issued debt | $ 30,300 | $ 69,600 | ||||||||||
Collateralized debt obligations | ||||||||||||
Debt Obligations | ||||||||||||
Junior subordinated notes | $ 5,924,705 | $ 5,924,705 | $ 2,532,343 |
Debt Obligations - Senior Uns_2
Debt Obligations - Senior Unsecured Notes, Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2019 | Dec. 31, 2021 | Aug. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Obligations | |||||||||
Wtd. Avg Rate | 2.21% | 2.20% | |||||||
Senior Unsecured Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 1,295,750 | $ 670,750 | |||||||
Carrying value | $ 1,280,545 | $ 662,843 | |||||||
Wtd. Avg Rate | 5.05% | 5.29% | |||||||
Deferred financing fees | $ 15,200 | $ 7,900 | |||||||
5.00% Convertible notes | |||||||||
Debt Obligations | |||||||||
UPB | 180,000 | ||||||||
Carrying value | $ 177,105 | ||||||||
Wtd. Avg Rate | 5.00% | ||||||||
Interest rate (as a percent) | 5.00% | ||||||||
5.00% Convertible Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 175,000 | $ 175,000 | |||||||
Carrying value | $ 172,302 | ||||||||
Wtd. Avg Rate | 5.00% | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | |||||||
8.00% Convertible Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 70,750 | 70,750 | $ 40,500 | ||||||
Carrying value | $ 70,202 | $ 69,793 | |||||||
Wtd. Avg Rate | 8.00% | 8.00% | |||||||
Interest rate (as a percent) | 8.00% | 8.00% | |||||||
4.50% Convertible Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 275,000 | $ 270,000 | $ 275,000 | $ 275,000 | |||||
Carrying value | $ 272,477 | $ 271,994 | |||||||
Wtd. Avg Rate | 4.50% | 4.50% | |||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | ||||||
4.50% Senior Unsecured Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 270,000 | ||||||||
Carrying value | $ 266,090 | ||||||||
Wtd. Avg Rate | 4.50% | ||||||||
4.75% Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 110,000 | $ 110,000 | |||||||
Carrying value | $ 109,018 | $ 108,668 | |||||||
Wtd. Avg Rate | 4.75% | 4.75% | |||||||
Redemption of aggregate principal amount (as a percent) | 100.00% | 100.00% | |||||||
5.75% Convertible Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 90,000 | $ 90,000 | $ 90,000 | ||||||
Carrying value | $ 89,135 | $ 88,751 | |||||||
Wtd. Avg Rate | 5.75% | 5.75% | |||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||
5.625% Notes | |||||||||
Debt Obligations | |||||||||
UPB | $ 125,000 | $ 125,000 | $ 100,000 | ||||||
Carrying value | $ 124,216 | $ 123,637 | |||||||
Wtd. Avg Rate | 5.63% | 5.63% | |||||||
Interest rate (as a percent) | 5.625% | 5.625% | |||||||
Collateralized debt obligations | |||||||||
Debt Obligations | |||||||||
UPB | $ 5,924,705 | $ 2,532,343 |
Debt Obligations - Convertible
Debt Obligations - Convertible Senior Unsecured Notes (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2021USD ($) | Jul. 31, 2021USD ($)shares | Apr. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Mar. 31, 2019USD ($) | May 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)$ / shares | |
Debt Obligations | ||||||||||||||
Cash paid for the exchange of convertible notes | $ 22,336,000 | |||||||||||||
Notes settled with cash | $ 14,300,000 | $ 231,940,000 | ||||||||||||
Gain (loss) on real estate | (3,374,000) | (3,546,000) | (7,439,000) | |||||||||||
Total | 12,132,490,000 | |||||||||||||
Convertible Senior Unsecured Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 264,000,000 | $ 278,300,000 | ||||||||||||
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed | 100.00% | |||||||||||||
Maturity period (in years) | 10 months 2 days | 1 year 9 months 7 days | ||||||||||||
Unamortized Debt Discount | $ 2,520,000 | $ 5,636,000 | ||||||||||||
Unamortized Deferred Financing Fees | 2,095,000 | 4,691,000 | ||||||||||||
Total | 259,385,000 | 267,973,000 | ||||||||||||
Net Carrying Value, Equity Component | 8,684,000 | 9,962,000 | ||||||||||||
Interest expense | 18,600,000 | 20,000,000 | 28,300,000 | |||||||||||
Interest expense related to cash coupon | 12,800,000 | 13,400,000 | 13,500,000 | |||||||||||
Debt discount | 3,200,000 | 3,000,000 | 6,800,000 | |||||||||||
Deferred fees expensed as interest expense | $ 2,600,000 | $ 3,600,000 | $ 7,900,000 | |||||||||||
Cost of the notes (as a percent) | 6.71% | 6.75% | ||||||||||||
Senior Unsecured Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 1,295,750,000 | $ 670,750,000 | ||||||||||||
Unamortized Deferred Financing Fees | 15,200,000 | 7,900,000 | ||||||||||||
8.00% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 40,500,000 | $ 70,750,000 | 70,750,000 | |||||||||||
Proceeds from issued debt | $ 30,300,000 | $ 69,600,000 | ||||||||||||
Interest rate (as a percent) | 8.00% | 8.00% | ||||||||||||
4.50% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 270,000,000 | $ 275,000,000 | $ 275,000,000 | 275,000,000 | ||||||||||
Proceeds from issued debt | $ 265,800,000 | $ 271,800,000 | ||||||||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | |||||||||||
5.25% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 14,300,000 | |||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||||||||
Notes settled with cash | $ 14,300,000 | $ 228,700,000 | ||||||||||||
Common stock exchanged (in shares) | shares | 386,459 | |||||||||||||
4.75% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 110,000,000 | $ 1,000 | $ 1,000 | $ 264,000,000 | ||||||||||
Proceeds from issued debt | $ 108,200,000 | |||||||||||||
Interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||||||||
Proceeds received, net of estimated issuance costs | $ 256,500,000 | |||||||||||||
Common stock exchanged (in shares) | shares | 56.8560 | |||||||||||||
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 | $ 17.59 | $ 17.80 | ||||||||||||
4.75% Convertible Notes | Over-Allotment Option | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 34,000,000 | |||||||||||||
5.75% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 90,000,000 | $ 90,000,000 | $ 90,000,000 | |||||||||||
Proceeds from issued debt | $ 88,200,000 | |||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||||||||
4.75% and 5.25% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Notes and accrued interest settled | $ 233,100,000 | |||||||||||||
Common stock exchanged (in shares) | shares | 4,478,315 | |||||||||||||
Gain (loss) on real estate | 7,300,000 | |||||||||||||
Inducement charge | 1,100,000 | |||||||||||||
5.625% Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 100,000,000 | $ 125,000,000 | 125,000,000 | |||||||||||
Proceeds from issued debt | $ 25,000,000 | $ 122,300,000 | ||||||||||||
Interest rate (as a percent) | 5.625% | 5.625% | ||||||||||||
5.00% Convertible Notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 175,000,000 | $ 175,000,000 | ||||||||||||
Proceeds from issued debt | $ 172,300,000 | |||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||||||
Junior subordinated notes | ||||||||||||||
Debt Obligations | ||||||||||||||
Junior subordinated notes | $ 154,336,000 | 154,336,000 | ||||||||||||
Deferred fees expensed as interest expense | $ 1,700,000 | $ 1,800,000 |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Obligations | ||
Debt carrying value | $ 142,382 | $ 141,656 |
Weighted average note rate (as a percent) | 2.21% | 2.20% |
Junior subordinated notes | ||
Debt Obligations | ||
Debt carrying value | $ 142,400 | $ 141,700 |
Deferred amount Due at maturity | 10,200 | 10,800 |
Deferred fees expensed as interest expense | $ 1,700 | $ 1,800 |
Weighted average note rate (as a percent) | 3.03% | 3.06% |
Weighted average note rate including certain fees and costs (as a percent) | 3.12% | 3.15% |
Debt Obligations - Debt Covenan
Debt Obligations - Debt Covenants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | |
CLO 10 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 126.98% | ||||
Limit overcollateralization ratio (as a percent) | 125.98% | ||||
Current interest coverage ratio (as a percent) | 126.98% | 126.98% | 126.98% | 126.98% | 488.48% |
Limit interest coverage ratio (as a percent) | 120.00% | ||||
CLO 12 | |||||
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) | 118.87% | 118.87% | 118.87% | 118.87% | 307.16% |
Limit interest coverage ratio (as a percent) | 120.00% | ||||
CLO 13 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 119.76% | ||||
Limit overcollateralization ratio (as a percent) | 118.76% | ||||
Current interest coverage ratio (as a percent) | 119.76% | 119.76% | 119.76% | 119.76% | 317.07% |
Limit interest coverage ratio (as a percent) | 120.00% | ||||
CLO 14 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 119.76% | ||||
Limit overcollateralization ratio (as a percent) | 118.76% | ||||
Current interest coverage ratio (as a percent) | 119.76% | 119.76% | 119.76% | 119.76% | 319.01% |
Limit interest coverage ratio (as a percent) | 120.00% | ||||
CLO 15 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 120.85% | ||||
Limit overcollateralization ratio (as a percent) | 119.85% | ||||
Current interest coverage ratio (as a percent) | 120.85% | 120.85% | 120.85% | 332.57% | |
Limit interest coverage ratio (as a percent) | 120.00% | ||||
CLO 16 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 121.21% | ||||
Limit overcollateralization ratio (as a percent) | 120.21% | ||||
Current interest coverage ratio (as a percent) | 121.21% | 121.21% | 276.52% | ||
Limit interest coverage ratio (as a percent) | 120.00% | ||||
Junior subordinated notes | |||||
Debt Covenants | |||||
Amount payable on default of senior debt | $ 0 | ||||
CLO 17 | |||||
Debt Covenants | |||||
Current overcollateralization ratio (as a percent) | 122.51% | ||||
Limit overcollateralization ratio (as a percent) | 121.51% | ||||
Current interest coverage ratio (as a percent) | 122.51% | 192.52% | |||
Limit interest coverage ratio (as a percent) | 120.00% |
Allowance for Loss-Sharing Ob_3
Allowance for Loss-Sharing Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Roll forward of loss contingency accrual | |||
Provisions for loss sharing | $ (6,167) | $ 14,822 | $ 1,147 |
Guarantee obligations | 34,400 | 34,000 | |
Fannie Mae Mortgage | |||
Roll forward of loss contingency accrual | |||
Allowance for loss sharing obligations | $ 21,700 | $ 30,300 | |
Loss-sharing obligations (as a percent) | 0.11% | 0.17% | |
Loss-Sharing Obligation | |||
Roll forward of loss contingency accrual | |||
Outstanding advances under the Fannie Mae DUS program | $ 100 | $ 100 | |
Loss-Sharing Obligation | Fannie Mae Mortgage | |||
Roll forward of loss contingency accrual | |||
Beginning balance of the period | 64,303 | 34,648 | |
Provisions for loss sharing | 44 | 16,379 | |
Provisions reversal for loan repayments | (6,211) | (1,557) | |
Recoveries (charge-offs) , net | (2,072) | 427 | |
Ending balance of the period | 56,064 | 64,303 | $ 34,648 |
Maximum quantifiable liability | 3,600,000 | 3,410,000 | |
Loss-Sharing Obligation | Fannie Mae Mortgage | Impact of Adoption | Impact of adopting CECL | |||
Roll forward of loss contingency accrual | |||
Beginning balance of the period | $ 14,406 | ||
Ending balance of the period | $ 14,406 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Agency Business (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Derivative Financial Instruments | |||
Net (losses) gains from changes in the fair value of derivatives | $ 800 | $ 3,400 | $ (7,800) |
(Loss) gain on derivative instruments | (2,684) | (58,335) | (1,962) |
Realized gain (loss) on derivatives | 100 | ||
Unrealized gain (loss) on derivatives | 1,500 | ||
Notional Value, classified in Other Assets | 280,654 | 865,975 | |
Other Income | |||
Derivative Financial Instruments | |||
(Loss) gain on derivative instruments | 130,200 | 165,500 | $ 90,800 |
Rate lock commitments | |||
Derivative Financial Instruments | |||
Notional value | 11,250 | ||
Forward Sale Commitments | |||
Derivative Financial Instruments | |||
Notional value | $ 571,220 | ||
Interest Rate Swaps | |||
Derivative Financial Instruments | |||
Derivative, maturity term | 3 months | ||
Derivative swap default credit. | 5 years | ||
Interest Rate Swaps | Minimum | |||
Derivative Financial Instruments | |||
Derivative Swap Rate Period | 5 years | ||
Interest Rate Swaps | Maximum | |||
Derivative Financial Instruments | |||
Derivative Swap Rate Period | 10 years | ||
Interest Rate Swaps | Agency Business | Other Income | |||
Derivative Financial Instruments | |||
Realized gain (loss) on derivatives | $ (57,100) | 4,600 | |
Unrealized gain (loss) on derivatives | (1,700) | 1,500 | |
Interest Rate Swaps | Structured Business | Other Income | |||
Derivative Financial Instruments | |||
Realized gain (loss) on derivatives | (3,000) | (400) | |
Unrealized gain (loss) on derivatives | 200 | 200 | |
Non-Qualifying | Agency Business | |||
Derivative Financial Instruments | |||
Fair Value, classified in Other Assets | 1,665 | 3,892 | |
Fair Value, classified in Other Liabilities | (1,482) | (1,221) | |
Notional Value, classified in Other Assets | $ 970,670 | $ 1,230,417 | |
Non-Qualifying | Rate lock commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 2 | 7 | |
Fair Value, classified in Other Assets | $ 295 | $ 1,967 | |
Fair Value, classified in Other Liabilities | (33) | (231) | |
Notional Value, classified in Other Assets | $ 11,250 | $ 136,354 | |
Non-Qualifying | Forward Sale Commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 55 | 114 | |
Fair Value, classified in Other Assets | $ 1,370 | $ 1,925 | |
Fair Value, classified in Other Liabilities | (1,449) | (990) | |
Notional Value, classified in Other Assets | $ 571,220 | $ 1,048,763 | |
Non-Qualifying | Interest Rate Swaps | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 3,882 | 453 | |
Notional Value, classified in Other Assets | $ 388,200 | $ 45,300 |
Fair Value, Carrying Value and
Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | ||||
Loans and investments, net - Principal/Notional Amount | $ 12,158,995,000 | $ 5,475,082,000 | ||
Loans and investments, net | 11,981,048,000 | 5,285,868,000 | $ 4,189,960,000 | $ 3,200,145,000 |
Loans held-for-sale, net - Principal/Notional Amount | 1,077,239,000 | 968,595,000 | ||
Loans held-for-sale, net | 1,077,239,000 | 968,595,000 | ||
Securities, held-to-maturity, net - Principal/Notional Amount | 210,728,000 | 140,124,000 | ||
Securities held-to-maturity, net | 140,484,000 | 95,524,000 | ||
Derivative financial instruments - Principal/Notional Amount | 280,654,000 | 865,975,000 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Principal/Notional Amount | 4,493,699,000 | 2,238,722,000 | ||
Credit and repurchase facilities, Carrying value | 4,481,579,000 | 2,234,883,000 | ||
Collateralized loan obligations | 5,892,810,000 | 2,517,309,000 | ||
Senior unsecured notes | 1,280,545,000 | 662,843,000 | ||
Convertible senior unsecured notes, net | 259,385,000 | 267,973,000 | ||
Junior subordinated notes | 142,382,000 | 141,656,000 | ||
Related party financing | 0 | |||
Derivative financial instruments - Principal/Notional Amount | $ 301,816,000 | 319,142,000 | ||
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 | $ 11,981,048,000 | 5,285,868,000 | ||
Loans held-for-sale, net | 1,093,609,000 | 986,919,000 | ||
Capitalized mortgage servicing rights, net | 422,734,000 | 379,974,000 | ||
Securities held-to-maturity, net | 140,484,000 | 95,524,000 | ||
Derivative financial instruments | 1,665,000 | 3,892,000 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 4,481,579,000 | 2,234,883,000 | ||
Collateralized loan obligations | 5,892,810,000 | 2,517,309,000 | ||
Senior unsecured notes | 1,280,545,000 | 662,843,000 | ||
Convertible senior unsecured notes, net | 259,385,000 | 267,973,000 | ||
Junior subordinated notes | 142,382,000 | 141,656,000 | ||
Derivative financial instruments | 1,482,000 | 1,221,000 | ||
Estimated Fair Value Disclosure | ||||
Financial assets: | ||||
Loans and investments, net | 12,181,194,000 | 5,428,141,000 | ||
Loans held-for-sale, net | 1,117,085,000 | 1,007,294,000 | ||
Capitalized mortgage servicing rights, net | 477,323,000 | 415,495,000 | ||
Securities held-to-maturity, net | 149,911,000 | 94,128,000 | ||
Derivative financial instruments | 1,665,000 | 3,892,000 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 4,484,107,000 | 2,235,668,000 | ||
Collateralized loan obligations | 5,914,453,000 | 2,495,195,000 | ||
Senior unsecured notes | 1,301,708,000 | 670,117,000 | ||
Convertible senior unsecured notes, net | 294,690,000 | 280,636,000 | ||
Junior subordinated notes | 101,698,000 | 99,594,000 | ||
Derivative financial instruments | 1,482,000 | 1,221,000 | ||
Collateralized loan obligations | ||||
Financial liabilities: | ||||
Collateralized loan obligations | 5,892,810,000 | 2,517,309,000 | ||
Debt instrument - Principal/Notional Amount | 5,924,705,000 | 2,532,343,000 | ||
Collateralized debt obligations | ||||
Financial liabilities: | ||||
Debt instrument - Principal/Notional Amount | 5,924,705,000 | 2,532,343,000 | ||
Senior Unsecured Notes | ||||
Financial liabilities: | ||||
Debt instrument - Principal/Notional Amount | 1,295,750,000 | 670,750,000 | ||
Convertible Senior Unsecured Notes | ||||
Financial liabilities: | ||||
Debt instrument - Principal/Notional Amount | 264,000,000 | 278,300,000 | ||
Junior subordinated notes | ||||
Financial liabilities: | ||||
Junior subordinated notes | 142,400,000 | 141,700,000 | ||
Debt instrument - Principal/Notional Amount | $ 154,336,000 | $ 154,336,000 |
Fair Value, Measurement on Recu
Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands, shares in Millions | Dec. 31, 2021USD ($)itemshares | Dec. 31, 2020USD ($) |
Financial assets: | ||
Impaired loans, net | $ 148,839 | $ 254,938 |
Allowance for credit losses on impaired loans | $ 86,886 | 106,265 |
Number of impaired loans | item | 8 | |
Aggregate carrying value, before reserves | shares | 148.8 | |
Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | $ 1,665 | 3,892 |
Financial liabilities: | ||
Derivative financial instruments | 1,482 | 1,221 |
Estimated Fair Value Disclosure | ||
Financial assets: | ||
Derivative financial instruments | 1,665 | 3,892 |
Financial liabilities: | ||
Derivative financial instruments | 1,482 | $ 1,221 |
Recurring basis | Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 1,665 | |
Financial liabilities: | ||
Derivative financial instruments | 1,482 | |
Recurring basis | Estimated Fair Value Disclosure | ||
Financial assets: | ||
Derivative financial instruments | 1,665 | |
Financial liabilities: | ||
Derivative financial instruments | 1,482 | |
Nonrecurring basis | Carrying Value | ||
Financial assets: | ||
Impaired loans, net | 61,953 | |
Nonrecurring basis | Estimated Fair Value Disclosure | ||
Financial assets: | ||
Impaired loans, net | 61,953 | |
Level 2 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 1,370 | |
Financial liabilities: | ||
Derivative financial instruments | 1,482 | |
Level 3 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 295 | |
Level 3 | Nonrecurring basis | ||
Financial assets: | ||
Impaired loans, net | $ 61,953 |
Fair Value, Level 3 Inputs (Det
Fair Value, Level 3 Inputs (Details) $ in Thousands | Dec. 31, 2021USD ($)item |
Land | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.2150 |
Land | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0300 |
Retail | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1125 |
Retail | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0925 |
Retail | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0300 |
Office | Measurement Input Discount Rate [Member] | |
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 |
Rate lock commitments | |
Quantitative information about Level 3 fair value measurements | |
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Derivative Asset, Measurement Input [Extensible List] | Measurement Input Discount Rate [Member] |
Rate lock commitments | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments measurement input | 0.1331 |
Level 3 | Land | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | $ 50,000 |
Level 3 | Retail | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | 11,473 |
Level 3 | Office | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | 480 |
Level 3 | Rate lock commitments | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | $ 295 |
Fair Value, Level 3 Derivative
Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative assets | |||
Beginning balance | $ 1,967 | $ 1,066 | $ 324 |
Settlements | (112,836) | (164,654) | (83,992) |
Realized gains recorded in earnings | 110,869 | 163,588 | 83,668 |
Unrealized gains recorded in earnings | 295 | 1,967 | 1,066 |
Ending balance | $ 295 | $ 1,967 | $ 1,066 |
Fair Value, Components of fair
Fair Value, Components of fair value and other relevant information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value of Servicing Rights | $ 19,681 |
Total Fair Value Adjustment | 19,681 |
Rate lock commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 11,250 |
Fair Value of Servicing Rights | 295 |
Interest Rate Movement Effect | (29) |
Total Fair Value Adjustment | 266 |
Forward Sale Commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 571,220 |
Interest Rate Movement Effect | 29 |
Total Fair Value Adjustment | 29 |
Loans held-for-sale, net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 1,077,239 |
Fair Value of Servicing Rights | 19,386 |
Total Fair Value Adjustment | $ 19,386 |
Fair Value, Financial Assets an
Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||||
Loans and investments, net | $ 11,981,048 | $ 5,285,868 | $ 4,189,960 | $ 3,200,145 |
Loans held-for-sale, net | 1,077,239 | 968,595 | ||
Securities held-to-maturity, net | 140,484 | 95,524 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 4,481,579 | 2,234,883 | ||
Collateralized loan obligations | 5,892,810 | 2,517,309 | ||
Senior unsecured notes | 1,280,545 | 662,843 | ||
Convertible senior unsecured notes, net | 259,385 | 267,973 | ||
Junior subordinated notes | 142,382 | 141,656 | ||
Level 1 | ||||
Financial liabilities: | ||||
Senior unsecured notes | 1,301,708 | |||
Level 2 | ||||
Financial assets: | ||||
Loans held-for-sale, net | 1,097,699 | |||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 956,272 | |||
Convertible senior unsecured notes, net | 294,690 | |||
Level 3 | ||||
Financial assets: | ||||
Loans and investments, net | 12,181,194 | |||
Loans held-for-sale, net | 19,386 | |||
Capitalized mortgage servicing rights, net | 477,323 | |||
Securities held-to-maturity, net | 149,911 | |||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 3,527,835 | |||
Collateralized loan obligations | 5,914,453 | |||
Junior subordinated notes | 101,698 | |||
Carrying Value | ||||
Financial assets: | ||||
Loans and investments, net | 11,981,048 | 5,285,868 | ||
Loans held-for-sale, net | 1,093,609 | 986,919 | ||
Capitalized mortgage servicing rights, net | 422,734 | |||
Securities held-to-maturity, net | 140,484 | 95,524 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 4,481,579 | 2,234,883 | ||
Collateralized loan obligations | 5,892,810 | 2,517,309 | ||
Senior unsecured notes | 1,280,545 | 662,843 | ||
Convertible senior unsecured notes, net | 259,385 | 267,973 | ||
Junior subordinated notes | 142,382 | 141,656 | ||
Estimated Fair Value Disclosure | ||||
Financial assets: | ||||
Loans and investments, net | 12,181,194 | 5,428,141 | ||
Loans held-for-sale, net | 1,117,085 | 1,007,294 | ||
Capitalized mortgage servicing rights, net | 477,323 | |||
Securities held-to-maturity, net | 149,911 | 94,128 | ||
Financial liabilities: | ||||
Credit and repurchase facilities, Carrying value | 4,484,107 | 2,235,668 | ||
Collateralized loan obligations | 5,914,453 | 2,495,195 | ||
Senior unsecured notes | 1,301,708 | 670,117 | ||
Convertible senior unsecured notes, net | 294,690 | 280,636 | ||
Junior subordinated notes | $ 101,698 | $ 99,594 |
Commitments and Contingencies,
Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Agency Business Commitments | ||||
Cash collateral | $ 486,690 | $ 197,470 | $ 210,875 | $ 180,606 |
Debt Obligations | ||||
2022 | 3,360,731 | |||
2023 | 1,886,918 | |||
2024 | 2,925,345 | |||
2025 | 1,109,257 | |||
2026 | 2,210,054 | |||
Thereafter | 640,185 | |||
Total | 12,132,490 | |||
Minimum Annual Operating Lease Payments | ||||
2022 | 8,342 | |||
2023 | 8,067 | |||
2024 | 7,929 | |||
2025 | 7,978 | |||
2026 | 8,282 | |||
Thereafter | 26,098 | |||
Total | 66,696 | |||
Total | ||||
2022 | 3,369,073 | |||
2023 | 1,894,985 | |||
2024 | 2,933,274 | |||
2025 | 1,117,235 | |||
2026 | 2,218,336 | |||
Thereafter | 666,283 | |||
Total | $ 12,199,186 | |||
Operating Lease, Weighted average remaining lease term (in years) | 8 years 2 months 12 days | 9 years | ||
Operating Lease, Weighted average discount rate (as a percent) | 4.00% | 4.90% | ||
Operating lease expense | $ 9,300 | $ 6,200 | $ 6,100 | |
Unfunded CLO Commitments | ||||
Unfunded commitments related to structured loans and investments | 975,200 | |||
Fannie Mae Mortgage | ||||
Agency Business Commitments | ||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | $ 18,800 | |||
Period of funding for collateral requirement | 48 months | |||
Forward Contracts | ||||
Agency Business Commitments | ||||
Period of contractual commitment | 60 days | |||
Minimum | ||||
Total | ||||
Remaining lease term | 1 month 6 days | 6 months | ||
Maximum | ||||
Total | ||||
Remaining lease term | 9 years | 10 years | ||
Restricted liquidity arrangement - loans sold under the Fannie Mae DUS program | Fannie Mae Mortgage | ||||
Agency Business Commitments | ||||
Letter of credit assigned | $ 45,000 | |||
Cash collateral | 18,700 | |||
Reserve required to fund additional restricted liquidity over the next 48 months | $ 43,000 | |||
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 ($)defendantlawsuit | Aug. 31, 2020USD ($)lawsuitdefendant | Jun. 30, 2013USD ($)defendantlawsuit | Jun. 30, 2011lawsuitdefendant |
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 | lawsuit | 3 | |||
Number of lawsuits filed in United States Bankruptcy Court | lawsuit | 2 | |||
Number of defendants | 73 | |||
Number of defendants who are corporate and partnership entities | 55 | |||
Number of defendants named in a legal action who are individuals | 18 | |||
Number of counts dismissed | lawsuit | 9 | |||
Number of counts dismissed against defendant entities | 4 | |||
Total LIBOR Floor Certificate transfers | $ | $ 74 | |||
Total possible liability against directors | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Fiduciary Duty Claims | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 2 | |||
Number of defendants | 2 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits | ||||
Litigation | ||||
Number of lawsuits consolidated | lawsuit | 1 | |||
Number of defendants who are corporate and partnership entities | 16 | |||
Number of defendants named in a legal action who are individuals | 10 | |||
Number of defendants removed due to consolidation of lawsuits | 47 | |||
Number of defendants related to the entity | 0 | |||
Number of defendants remaining due to consolidation of lawsuits | 26 | |||
Number of lawsuits before amendment | lawsuit | 100 | |||
Number of lawsuits after amendment | lawsuit | 17 | 17 | ||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 139 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Assets: | ||||
Restricted cash | $ 486,690 | $ 197,470 | $ 210,875 | $ 180,606 |
Other assets | 269,946 | 183,529 | ||
Total assets | 15,073,845 | 7,660,986 | ||
Liabilities: | ||||
Collateralized loan obligations | 5,892,810 | 2,517,309 | ||
Other liabilities | 287,885 | 197,644 | ||
Total liabilities | 12,523,861 | 6,178,301 | ||
Carrying amount of loans and investments before reserves related to VIEs | 12,158,995 | |||
Loan loss reserves related to VIEs | 113,241 | 148,329 | $ 71,069 | |
Consolidated VIEs | ||||
Assets: | ||||
Loans and investments, net | 6,616,809 | |||
Total assets | 7,144,806 | 3,134,447 | ||
Liabilities: | ||||
Total liabilities | 5,902,623 | 2,520,064 | ||
CLOs and Debt Fund | ||||
Assets: | ||||
Restricted cash | 466,523 | 188,226 | ||
Loans and investments, net | 2,923,634 | |||
Other assets | 61,474 | 22,587 | ||
Total assets | 7,144,806 | 3,134,447 | ||
Liabilities: | ||||
Collateralized loan obligations | 5,892,810 | 2,517,309 | ||
Other liabilities | 9,813 | 2,755 | ||
Total liabilities | 5,902,623 | $ 2,520,064 | ||
Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | $ 630,150 | |||
Liabilities: | ||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item | 30 | |||
Carrying amount of loans and investments before reserves related to VIEs | $ 129,800 | |||
Loan loss reserves related to VIEs | 79,400 | |||
Exposure to real estate debt | 4,350,000 | |||
CDO bond and CMBS investments | Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | 466,811 | |||
APL certificates | Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | 94,291 | |||
B Piece bonds | Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | 47,946 | |||
Equity investments | Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | 20,560 | |||
Agency interest only strips | Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | $ 542 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | Feb. 16, 2022$ / shares | Jan. 03, 2022$ / shares | Oct. 27, 2021$ / shares | Jul. 28, 2021$ / shares | May 05, 2021$ / shares | Feb. 17, 2021$ / shares | May 01, 2020$ / shares | Feb. 28, 2022USD ($)shares | Oct. 31, 2021USD ($)$ / sharesshares | Aug. 31, 2021USD ($)$ / sharesshares | Jul. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)$ / sharesshares | Apr. 30, 2021USD ($)shares | Nov. 30, 2020USD ($)$ / sharesshares | Aug. 31, 2020USD ($)shares | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Sep. 30, 2021shares | Dec. 31, 2021USD ($)Vote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2021USD ($)Vote$ / sharesshares |
Common stock | ||||||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 514,593 | $ 183,585 | $ 260,383 | |||||||||||||||||||
Repurchase of common stock | (34,404) | (21,531) | (11,574) | |||||||||||||||||||
Redemption of operating partnership units | $ 21,605 | $ 32,233 | 1,674 | |||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Amount available for repurchase | $ 96,100 | $ 96,100 | ||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Proceeds from issuance of preferred stock | 555,999 | |||||||||||||||||||||
Percentage of dividend paid to common stock and preferred stock shareholders represented ordinary income to our stockholders | 100.00% | 100.00% | ||||||||||||||||||||
Employee compensation and benefits | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Share-based compensation expense | 9,300 | $ 8,600 | 8,800 | |||||||||||||||||||
Selling and administrative expense | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Share-based compensation expense | 600 | 500 | 700 | |||||||||||||||||||
Chief executive officer | 2021 Annual incentive agreement | ||||||||||||||||||||||
Subsequent event | ||||||||||||||||||||||
Annual base salary | $ 1,200 | |||||||||||||||||||||
Annual cash payment | 800 | |||||||||||||||||||||
Annual performance cash bonus at target performance | 2,900 | |||||||||||||||||||||
Annual performance cash bonus at threshold performance | 1,500 | |||||||||||||||||||||
Annual performance cash bonus at maximum performance. | 4,400 | |||||||||||||||||||||
Additional annual performance cash bonus in the event of extraordinary performance | 700 | |||||||||||||||||||||
Restricted common stock | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Total grant date fair value | $ 17,100 | $ 14,400 | ||||||||||||||||||||
Shares withheld for taxes | shares | 175,102 | |||||||||||||||||||||
Unrecognized compensation cost | $ 8,900 | |||||||||||||||||||||
Remaining weighted-average vesting period | 1 year 10 months 24 days | |||||||||||||||||||||
Restricted stock vested with grant date fair value (in shares) | shares | 1,102,761 | |||||||||||||||||||||
Unvested restricted common stock outstanding | shares | 1,257,199 | 1,300,568 | 1,257,199 | |||||||||||||||||||
Restricted stock vested during the period, grant date fair value | $ 9,600 | |||||||||||||||||||||
Restricted common stock | Chief executive officer | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 45,928 | 58,738 | ||||||||||||||||||||
Total grant date fair value | $ 500 | $ 700 | ||||||||||||||||||||
Restricted common stock | Director | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 28,381 | |||||||||||||||||||||
Restricted common stock | Employees | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 356,377 | |||||||||||||||||||||
Total grant date fair value | $ 5,900 | $ 3,400 | $ 4,200 | |||||||||||||||||||
Vesting percentage | 33.00% | |||||||||||||||||||||
Number of shares issued in net settlement | shares | 314,957 | 333,884 | ||||||||||||||||||||
Restricted common stock | Employees | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 116,570 | |||||||||||||||||||||
Total grant date fair value | $ 1,900 | |||||||||||||||||||||
Restricted common stock | Employees | First anniversaries | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 101,475 | |||||||||||||||||||||
Total grant date fair value | $ 1,700 | |||||||||||||||||||||
Restricted common stock | Employees | Second anniversaries | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 88,788 | |||||||||||||||||||||
Total grant date fair value | $ 1,500 | |||||||||||||||||||||
Restricted common stock | Employees | Third anniversaries | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 25,479 | |||||||||||||||||||||
Total grant date fair value | $ 400 | |||||||||||||||||||||
Restricted common stock | Employees | Fourth anniversaries | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 24,065 | |||||||||||||||||||||
Total grant date fair value | $ 400 | |||||||||||||||||||||
Performance-based restricted stock | Chairman and Chief executive officer | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Vesting period (in years) | 4 years | 4 years | 4 years | |||||||||||||||||||
Performance-based restricted stock | Chief executive officer | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Total grant date fair value | $ 100 | $ 1,700 | ||||||||||||||||||||
Vesting period (in years) | 4 years | |||||||||||||||||||||
Restricted stock vested during period (in shares) | shares | 448,980 | 421,348 | 421,348 | |||||||||||||||||||
Restricted stock vested during period, net settled (in shares) | shares | 229,083 | 215,014 | ||||||||||||||||||||
Performance-based restricted stock | Chief executive officer | Maximum | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 275,569 | 352,427 | ||||||||||||||||||||
Acquisition Related Grant | Chief executive officer | 2021 Annual incentive agreement | ||||||||||||||||||||||
Subsequent event | ||||||||||||||||||||||
Grant value | $ 3,000 | |||||||||||||||||||||
Acquisition Related Grant | Chief executive officer | Third anniversaries | 2021 Annual incentive agreement | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Vesting percentage | 3.00% | |||||||||||||||||||||
Time Based Vesting Equity Award | Chief executive officer | 2021 Annual incentive agreement | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 165,746 | 184,729 | ||||||||||||||||||||
Total grant date fair value | $ 3,000 | $ 3,100 | ||||||||||||||||||||
Vesting period (in years) | 3 years | |||||||||||||||||||||
Restricted stock vested during period (in shares) | shares | 294,985 | |||||||||||||||||||||
Restricted stock vested during period, net settled (in shares) | shares | 150,530 | |||||||||||||||||||||
Subsequent event | ||||||||||||||||||||||
Grant value | $ 3,000 | |||||||||||||||||||||
Performance Based TSR Equity Award | Chief executive officer | 2021 Annual incentive agreement | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Vesting period (in years) | 5 years | |||||||||||||||||||||
Subsequent event | ||||||||||||||||||||||
Grant value | $ 12,000 | |||||||||||||||||||||
8.25% Series A cumulative redeemable preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.25% | 8.25% | ||||||||||||||||||||
7.75% Series B cumulative redeemable preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 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% | ||||||||||||||||||||
6.25% Series E preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | |||||||||||||||||||||
6.25% Series F preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | 6.25% | ||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Issued price per share (in dollars per share) | $ / shares | $ 19.46 | $ 18.46 | $ 15.48 | |||||||||||||||||||
Number of common stock sold (in shares) | shares | 29,140,369 | 14,790,121 | 19,837,000 | |||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 10,900 | $ 21,100 | $ 11,100 | $ 12,400 | ||||||||||||||||||
Number of shares purchased | shares | 562,500 | 600,000 | 1,962,499 | 2,285,178 | 920,000 | |||||||||||||||||
Repurchase of common stock | $ (19) | $ (23) | $ (9) | |||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||||
Amount authorized under the Stock repurchase program | $ (100,000) | |||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.37 | $ 0.36 | $ 0.35 | $ 0.34 | $ 0.33 | |||||||||||||||||
Common Stock | Director | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Number of common stock sold (in shares) | shares | 108.2 | |||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Total grant date fair value | $ 500 | $ 700 | ||||||||||||||||||||
Number of shares issued in net settlement | shares | 52,735 | 55,244 | ||||||||||||||||||||
Common Stock | Restricted common stock | Director | 2020 Plan | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Total grant date fair value | $ 500 | |||||||||||||||||||||
Preferred Stock | 8.25% Series A cumulative redeemable preferred stock | ||||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | 0.515625 | $ 0.515625 | ||||||||||||||||||||
Preferred Stock | 7.75% Series B cumulative redeemable preferred stock | ||||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | 0.484375 | 0.484375 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Preferred Stock | 6.375% Series D preferred stocks | ||||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.3984375 | 0.3984375 | $ 0.25677 | |||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Preferred stock, redemption amount | $ 93,300 | |||||||||||||||||||||
Preferred Stock | 6.25% Series E preferred stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Number of common stock sold (in shares) | shares | 5,750,000 | |||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | 0.390625 | $ 0.34288 | ||||||||||||||||||||
Preferred Stock | 6.25% Series F preferred stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Number of common stock sold (in shares) | shares | 8,050,000 | |||||||||||||||||||||
Distributions | ||||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.46875 | |||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||||||||||||||||||
Preferred stock dividend, fixed rate | 6.125% | |||||||||||||||||||||
Total Arbor Realty Trust, Inc. Stockholders' Equity | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Repurchase of common stock | $ (34,404) | $ (21,531) | (11,574) | |||||||||||||||||||
Operating Partnership Units | ||||||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | |||||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | ||||||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Number of vote per share of Special Voting Preferred Shares | Vote | 1 | 1 | ||||||||||||||||||||
OP units outstanding (in shares) | shares | 16,325,095 | 16,325,095 | ||||||||||||||||||||
Voting power of outstanding stock (as a percent) | 9.70% | |||||||||||||||||||||
5.25% Convertible Notes | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Shares issued in connection with exchange of convertible debt notes (in shares) | shares | 386,459 | |||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||||||||||||||||||
Share repurchase | Common Stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Number of shares purchased | shares | 800,000 | |||||||||||||||||||||
ACM Acquisition | Performance-based restricted stock | Chief executive officer | ||||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||||
Grants during the period (in shares) | shares | 313,152 | 246,508 | ||||||||||||||||||||
Total grant date fair value | $ 2,900 | $ 3,000 | ||||||||||||||||||||
Vesting period (in years) | 3 years | |||||||||||||||||||||
Public offering | Common Stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Issued price per share (in dollars per share) | $ / shares | $ 19.48 | |||||||||||||||||||||
Number of common stock sold (in shares) | shares | 7,910,000 | 6,000,000 | 7,000,000 | |||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 153,900 | $ 110,600 | ||||||||||||||||||||
Public offering | Preferred Stock | 6.375% Series D preferred stocks | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Issuance of preferred stock (in shares) | shares | 9,200,000 | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.375% | |||||||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 222,600 | |||||||||||||||||||||
Public offering | Preferred Stock | 6.25% Series E preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Issuance of preferred stock (in shares) | shares | 5,750,000 | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | |||||||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 139,100 | |||||||||||||||||||||
Public offering | Preferred Stock | 6.25% Series F preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Issuance of preferred stock (in shares) | shares | 8,050,000 | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | |||||||||||||||||||||
Preferred stock dividend, fixed rate | 6.25% | |||||||||||||||||||||
Preferred stock dividend, spread on Floating rate | 5.442% | |||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 194,800 | |||||||||||||||||||||
Public offering | Subsequent event | Preferred Stock | 6.25% Series F preferred stock | ||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Preferred stock dividend, fixed rate | 6.25% | |||||||||||||||||||||
Option exercised by underwriters (in shares) | shares | 3,100,000 | |||||||||||||||||||||
Additional net proceeds from exercise of option by underwriters | $ 72,600 | |||||||||||||||||||||
At-The-Market | Common Stock | ||||||||||||||||||||||
Common stock | ||||||||||||||||||||||
Number of shares available under an "At-The-Market" equity offering with JMP Securities LLC | shares | 20,000,000 | 18,192,510 | 18,192,510 | |||||||||||||||||||
Number of common stock sold (in shares) | shares | 8,230,369 | |||||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 141,800 |
Equity - Earnings Per Share ("E
Equity - Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic | |||
Net income attributable to common stockholders (1) | $ 317,412 | $ 163,395 | $ 121,074 |
Weighted average shares outstanding (in shares) | 137,830,691 | 113,811,471 | 92,851,327 |
Net income per common share (in dollars per share) | $ 2.30 | $ 1.44 | $ 1.30 |
Diluted | |||
Net income attributable to common stockholders | $ 355,919 | $ 188,603 | $ 147,684 |
Net income attributable to noncontrolling interest | $ 38,507 | $ 25,208 | $ 26,610 |
Dilutive effect of OP Units (in shares) | 16,818,722 | 19,395,691 | 20,502,128 |
Dilutive effect of restricted stock units (in shares) | 933,233 | 718,647 | 1,421,528 |
Dilutive effect of convertible notes (in shares) | 506,949 | 43,487 | 1,417,968 |
Weighted average shares outstanding ( in shares) | 156,089,595 | 133,969,296 | 116,192,951 |
Net income per common share (in dollars per share) | $ 2.28 | $ 1.41 | $ 1.27 |
Mr. Ivan Kaufman | Performance-based restricted stock | |||
Diluted | |||
Vesting period (in years) | 4 years | ||
Chairman and 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Pre-tax GAAP income | $ 424,092 | $ 236,550 | $ 170,274 |
Deferred tax benefit | (10,892) | (4,726) | (150) |
Current tax provision: | |||
Federal | 27,453 | 27,284 | 12,381 |
State | 7,939 | 8,383 | 2,505 |
Total | 35,392 | 35,667 | 14,886 |
Deferred tax provision: | |||
Federal | 8,288 | 3,932 | 2,743 |
State | 2,744 | 780 | 688 |
Valuation allowance | (139) | 14 | (3,281) |
Total | 10,893 | 4,726 | 150 |
Total income tax expense | $ 46,285 | $ 40,393 | $ 15,036 |
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% |
REIT non-taxable income (as a percent) | (11.90%) | (7.00%) | (11.30%) |
State and local income taxes, net of federal tax benefit (as a percent) | 2.00% | 3.00% | 1.50% |
Change in valuation allowance (as a percent) | (1.90%) | ||
Other (as a percent) | (0.20%) | (0.50%) | |
Effective income tax rate (as a percent) | 10.90% | 17.00% | 8.80% |
REIT subsidiaries | |||
Income Taxes | |||
Pre-tax GAAP income | $ 239,356 | $ 78,320 | $ 94,076 |
REIT federal income tax expense | 600 | ||
State taxes for the entity's taxable REIT | 100 | ||
TRS Consolidated Group | |||
Income Taxes | |||
Pre-tax GAAP income | 184,736 | 158,230 | $ 76,198 |
Deferred tax liabilities | 44,094 | 32,219 | |
Deferred tax assets: | |||
Expenses not currently deductible | 25,542 | 24,603 | |
Loan loss reserve | 7,110 | 7,047 | |
Net operating and capital loss carryforwards | 468 | 691 | |
Valuation allowance | (292) | (431) | |
Other | 372 | 306 | |
Deferred tax assets, net | 33,200 | 32,216 | |
Deferred tax liabilities: | |||
Mortgage servicing rights | 28,672 | 23,628 | |
Interest in equity affiliates - net | 8,179 | 589 | |
Intangibles | 7,243 | 8,002 | |
Deferred tax liabilities, net | $ 44,094 | $ 32,219 |
Income Taxes, Operating Loss Ca
Income Taxes, Operating Loss Carryforwards (Details) - TRS Consolidated Group - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes | ||
Federal and state net operating loss carryforwards | $ 0 | $ 0.5 |
Capital loss carryforwards | 1.1 | 1.1 |
State | ||
Income Taxes | ||
Federal and state net operating loss carryforwards | $ 0.2 | $ 0.3 |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties - Shared Services Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACM | Support Services | |||
Agreements and transactions with related parties | |||
Costs for services to related party | $ 3.2 | $ 2.4 | $ 2.7 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Other Related Party (Details) | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||||||
Dec. 31, 2021USD ($)shares | Oct. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Jan. 31, 2021 | Dec. 31, 2020USD ($) | Oct. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Mar. 31, 2020USD ($)property | Sep. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)propertyloan | Dec. 31, 2017USD ($)loanproperty | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($) | Dec. 31, 2021USD ($)shares | Jul. 31, 2019USD ($) | |
Agreements and transactions with related parties | |||||||||||||||||||
Due to related party | $ 26,570,000 | $ 2,365,000 | $ 26,570,000 | $ 2,365,000 | $ 26,570,000 | ||||||||||||||
Due from related parties | 84,318,000 | 12,449,000 | 84,318,000 | 12,449,000 | 84,318,000 | ||||||||||||||
Related party financing | 0 | 0 | 0 | ||||||||||||||||
Interest expense on related party loan | 200,000 | ||||||||||||||||||
Outstanding principal balance of related party financing | 0 | 0 | 0 | ||||||||||||||||
Proceeds from Bridge loan on a multi family property | $ 67,000,000 | ||||||||||||||||||
Entitled to annual fee | $ 1,300,000 | 1,600,000 | 1,300,000 | 1,600,000 | $ 1,300,000 | ||||||||||||||
Paydowns of principal made by borrower | 2,516,771,000 | 1,243,694,000 | $ 1,753,693,000 | ||||||||||||||||
Base spread (as a percent) | 3.00% | ||||||||||||||||||
Investment made | $ 9,209,475,000 | 2,376,233,000 | 2,712,354,000 | ||||||||||||||||
Proceeds from repayment in full | $ 10,900,000 | ||||||||||||||||||
Indirect ownership percentage | 9.20% | ||||||||||||||||||
(Income) loss from equity affiliates | $ (34,567,000) | (76,161,000) | (10,635,000) | ||||||||||||||||
Percentage of our Former Manager's outstanding membership interest of related party in another related party | 35.00% | 35.00% | 35.00% | ||||||||||||||||
Other Related Party Transactions | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Due from related parties | $ 84,300,000 | 12,400,000 | $ 84,300,000 | 12,400,000 | $ 84,300,000 | ||||||||||||||
CMBS/Conduit | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Loans assumed | $ 26,000,000 | ||||||||||||||||||
Chairman and Chief executive officer | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Reimbursement for flights chartered by the company's executives | $ 200,000 | ||||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||||||||||
ACM Acquisition | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Distribution received | $ 28,000,000 | 43,200,000 | |||||||||||||||||
Retail property | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Property purchased | $ 32,500,000 | 32,500,000 | $ 32,500,000 | ||||||||||||||||
Maturity date of March 2030 | Private Label | Lexford Portfolio | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 34,600,000 | ||||||||||||||||||
Fixed rate of interest (as a percent) | 3.30% | ||||||||||||||||||
Preferred equity investments | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Equity investment | 8,200,000 | 8,200,000 | 8,200,000 | ||||||||||||||||
Preferred equity investments | Single-Family Rental | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Investment made | $ 4,600,000 | ||||||||||||||||||
Bridge Loans | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | 35,000,000 | 35,000,000 | 35,000,000 | ||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||
Bridge Loans | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||
Bridge Loans | Single-Family Rental | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Loan committed | 32,500,000 | $ 30,500,000 | 3,200,000 | ||||||||||||||||
Investment made | $ 3,500,000 | ||||||||||||||||||
Bridge Loan Several Multifamily Properties [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 37,500,000 | ||||||||||||||||||
Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | Chairman and Chief executive officer | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | 600,000 | 600,000 | |||||||||||||||||
Bridge Loan Six Multifamily Properties [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
UPB converted to a mezzanine loan | 2,000,000 | ||||||||||||||||||
Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | 12,900,000 | ||||||||||||||||||
AMAC III | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | 1,300,000 | 1,900,000 | 3,300,000 | ||||||||||||||||
(Income) loss from equity affiliates | 1,300,000 | 900,000 | |||||||||||||||||
Distribution received | 3,800,000 | 100,000 | |||||||||||||||||
Lexford Portfolio | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Distribution received | $ 1,100,000 | 3,500,000 | |||||||||||||||||
Lexford Portfolio | Bridge Loans | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Paydowns of principal made by borrower | $ 250,000,000 | ||||||||||||||||||
Base spread (as a percent) | 4.00% | ||||||||||||||||||
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners | $ 50,000,000 | ||||||||||||||||||
Two portfolios of multifamily properties | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of loan assumption fee | 50.00% | ||||||||||||||||||
Principal amount | $ 12,700,000 | ||||||||||||||||||
Equity investment | 5,200,000 | ||||||||||||||||||
Ginkgo Investment Company LLC [Member] | Fannie Mae Mortgage | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Loan purchased a multifamily apartment complex which assumed | $ 8,300,000 | ||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 20.00% | ||||||||||||||||||
Servicing revenue | $ 100,000 | ||||||||||||||||||
Percentage of loan assumption fee | 1.00% | ||||||||||||||||||
Percentage of ownership after transaction | 3.60% | ||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mature date of April 2030 | Private Label | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Fixed rate of interest (as a percent) | 3.10% | ||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mature date of April 2030 | Mezzanine Loans | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Fixed rate of interest (as a percent) | 9.00% | ||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Amount invested | $ 20,300,000 | $ 20,300,000 | $ 30,000,000 | $ 20,300,000 | |||||||||||||||
Ownership interest (as a percent) | 18.00% | ||||||||||||||||||
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% | ||||||||||||||||||
Fixed rate of interest (as a percent) | 3.735% | ||||||||||||||||||
Amount of loan to related party | $ 15,600,000 | ||||||||||||||||||
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 | $ 34,000,000 | ||||||||||||||||||
Unaffiliated borrower | AMAC III | Mezzanine Loans | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Amount of loan to related party | $ 7,000,000 | ||||||||||||||||||
ACM | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||||||||||||||
ACM | 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 | 12.30% | 22.50% | |||||||||||||||||
Acquisition purchase price | $ 9,600,000 | ||||||||||||||||||
(Income) loss from equity affiliates | $ 34,600,000 | 7,200,000 | |||||||||||||||||
Distribution received | $ 75,700,000 | ||||||||||||||||||
ACM | ACM Acquisition | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Number of shares held by related party | shares | 2,535,870 | 2,535,870 | 2,535,870 | ||||||||||||||||
OP units hold as part of acquisition | shares | 10,665,530 | ||||||||||||||||||
Aggregate percentage of voting power held by related party | 8.00% | 8.00% | 8.00% | ||||||||||||||||
ACM | Preferred equity interest financing agreement | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | $ 100,000 | 1,800,000 | |||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Maturity Date January 2019 [Member] | Multifamily Portfolio | |||||||||||||||||||
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 Portfolio | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Equity investment | $ 3,400,000 | ||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 61,200,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.00% | ||||||||||||||||||
Interest income recorded | 1,300,000 | ||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | 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 other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2022 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 34,000,000 | $ 35,400,000 | $ 34,000,000 | $ 34,000,000 | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2022 [Member] | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Variable rate, spread (as a percent) | 3.50% | ||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan Two Multifamily Properties [Member] | Maturity Date January 2019 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 14,800,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||||||||||||||
Consortium of investors including an immediate family member of our officers | Multifamily Portfolio | Fannie Mae Mortgage | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 5.00% | ||||||||||||||||||
Servicing revenue | $ 100,000 | ||||||||||||||||||
Principal amount | $ 46,900,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 17.60% | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 21,700,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | ||||||||||||||||||
Base spread (as a percent) | 4.75% | ||||||||||||||||||
LIBOR floor (as a percentage) | 1.25% | ||||||||||||||||||
Interest income recorded | 1,300,000 | 1,400,000 | 1,400,000 | ||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Due to related party | $ 9,400,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | ||||||||||||||||||
Base spread (as a percent) | 5.00% | ||||||||||||||||||
LIBOR floor (as a percentage) | 1.25% | ||||||||||||||||||
Interest income recorded | $ 400,000 | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of June 2020 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Due to related party | $ 32,800,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 90.00% | ||||||||||||||||||
Base spread (as a percent) | 5.00% | ||||||||||||||||||
LIBOR floor (as a percentage) | 1.13% | ||||||||||||||||||
Interest income recorded | 1,700,000 | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of July 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Due to related party | $ 19,500,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 85.00% | ||||||||||||||||||
Interest income recorded | 100,000 | 1,300,000 | |||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of July 2021 [Member] | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 4.00% | ||||||||||||||||||
LIBOR floor (as a percentage) | 2.125% | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | 1,400,000 | 2,700,000 | |||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 31,100,000 | ||||||||||||||||||
LIBOR floor (as a percentage) | 1.80% | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 4.00% | ||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 28,000,000 | ||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 45.00% | ||||||||||||||||||
Base spread (as a percent) | 5.25% | ||||||||||||||||||
Interest income recorded | 1,900,000 | 1,900,000 | 2,200,000 | ||||||||||||||||
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 [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | 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 [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | 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 [Member] | Maturity Date January 2019 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | $ 300,000 | 300,000 | $ 600,000 | ||||||||||||||||
Chairman and Chief executive officer | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Reimbursement for flights chartered by the company's executives | $ 500,000 | ||||||||||||||||||
Director | Ginkgo Investment Company LLC [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of managing member | 33.00% | ||||||||||||||||||
Immediate family member of chief executive officer | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Ownership interest (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||||||||||
Immediate family member of chief executive officer | Matures in October 2023 [Member] | Preferred equity interest financing agreement | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | $ 500,000 | ||||||||||||||||||
Immediate family member of chief executive officer | Preferred equity investments | Matures in October 2023 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Fixed rate of interest (as a percent) | 12.00% | ||||||||||||||||||
Immediate family member of chief executive officer | Preferred equity investments | Matures in April 2023 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Fixed rate of interest (as a percent) | 12.00% | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Equity participation interest (as a percentage) | 21.80% | 18.90% | 21.80% | ||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Land | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 17,700,000 | ||||||||||||||||||
Paydowns of principal made by borrower | $ 4,700,000 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.80% | ||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Matures in October 2023 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | $ 100,000 | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Matures in October 2023 [Member] | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 5.50% | 5.50% | |||||||||||||||||
LIBOR floor (as a percentage) | 0.75% | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Matures in May 2023 [Member] | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Amount invested | $ 3,500,000 | 3,500,000 | $ 3,500,000 | ||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||
LIBOR floor (as a percentage) | 0.75% | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Matures in April 2023 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | $ 100,000 | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Mature date of April 2030 | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | 600,000 | ||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loan Several Multifamily Properties [Member] | |||||||||||||||||||
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 [Member] | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 4.25% | ||||||||||||||||||
Lexford Portfolio | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
(Income) loss from equity affiliates | (1,100,000) | $ (3,500,000) | |||||||||||||||||
Maximum exposure under guaranty | 612,900,000 | 612,900,000 | 612,900,000 | ||||||||||||||||
Lexford Portfolio | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Interest income recorded | 500,000 | 9,600,000 | |||||||||||||||||
Lexford Portfolio | Bridge Loans | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
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 [Member] | Maturity Date Of June 2021 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 280.50% | ||||||||||||||||||
Entity controlled by our chief executive officer | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Reimbursement for flights chartered by the company's executives | 100,000 | ||||||||||||||||||
Certain Officers And Managers [Member] | Mezzanine Loans | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Principal amount | $ 48,000,000 | ||||||||||||||||||
Number of properties owned | property | 6 | ||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||
Interest income recorded | $ 200,000 | $ 200,000 | $ 300,000 | ||||||||||||||||
Proceeds from repayment of debt | $ 28,300,000 | ||||||||||||||||||
Proceeds from repayment in full | $ 6,800,000 | ||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | Minimum | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.50% | ||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | Maximum | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Percentage of ownership interest of related party in the entity | 12.00% | ||||||||||||||||||
Consortium Of Affiliated Investors [Member] | Lexford Portfolio | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Management fee, percentage of gross revenues of underlying properties | 4.75% | ||||||||||||||||||
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity date of March 2024 | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Loan committed | $ 63,400,000 | ||||||||||||||||||
Interest income recorded | $ 2,100,000 | ||||||||||||||||||
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity date of March 2024 | LIBOR | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Base spread (as a percent) | 3.75% | ||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||
LLC | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Amount invested | $ 4,200,000 | $ 4,200,000 | $ 4,200,000 | ||||||||||||||||
Ownership interest (as a percent) | 49.30% | 49.30% | 49.30% | ||||||||||||||||
Promissory note with AMC | |||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||
Related party financing | $ 40,000,000 | ||||||||||||||||||
Outstanding principal balance of related party financing | $ 40,000,000 |
Employee Benefits - 401(k) Plan
Employee Benefits - 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 0.8 | $ 0.8 | $ 0.7 |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Comp Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Comp Plan | |||
Period over which matching contributions vest after year 5 | 9 years | ||
Deferred compensation expense | $ 2.2 | $ 1.8 | $ 1.6 |
Other liabilities | |||
Deferred Comp Plan | |||
Liabilities related to Deferred Comp Plan | 25.5 | 18.7 | |
Other assets | |||
Deferred Comp Plan | |||
Assets related to Deferred Comp Plan | $ 15.1 | $ 14.1 |
Segment Information - Statement
Segment Information - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Information | |||
Interest income | $ 466,087 | $ 339,465 | $ 315,940 |
Interest expense | 212,005 | 169,216 | 186,399 |
Net interest income | 254,082 | 170,249 | 129,541 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 123,037 | 94,607 | 65,652 |
Mortgage servicing rights | 130,230 | 165,517 | 90,761 |
Servicing revenue | 133,429 | 103,607 | 103,223 |
Amortization of MSRs | (58,615) | (49,222) | (48,681) |
Property operating income | 185 | 3,976 | 9,674 |
Loss on derivative instruments, net | (2,684) | (58,335) | (1,962) |
Other income, net | 7,566 | 4,109 | 1,178 |
Total other revenue | 333,148 | 264,259 | 219,845 |
Other expenses: | |||
Employee compensation and benefits | 171,796 | 144,380 | 122,102 |
Selling and administrative | 45,575 | 37,348 | 40,329 |
Property operating expenses | 718 | 4,898 | 10,220 |
Depreciation and amortization | 7,215 | 7,640 | 7,510 |
Impairment loss on real estate owned | 1,000 | ||
Provision for loss sharing (net of recoveries) | (6,167) | 14,822 | 1,147 |
Provision for credit losses (net of recoveries) | (21,113) | 61,110 | |
Total other expenses | 198,024 | 270,198 | 182,308 |
Income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes | 389,206 | 164,310 | 167,078 |
Gain (loss) on real estate | (3,374) | (3,546) | (7,439) |
(Loss) Gain on sale of real estate | 3,693 | (375) | |
Income from equity affiliates | 34,567 | 76,161 | 10,635 |
Provision for income taxes | (46,285) | (40,393) | (15,036) |
Net income | 377,807 | 196,157 | 155,238 |
Preferred stock dividends | 21,888 | 7,554 | 7,554 |
Net income attributable to noncontrolling interest | 38,507 | 25,208 | 26,610 |
Net income attributable to common stockholders | 317,412 | 163,395 | 121,074 |
Operating segments | Structured Transaction Business | |||
Segment Information | |||
Interest income | 427,039 | 305,893 | 289,841 |
Interest expense | 194,435 | 150,964 | 169,802 |
Net interest income | 232,604 | 154,929 | 120,039 |
Other revenue: | |||
Property operating income | 185 | 3,976 | 9,674 |
Loss on derivative instruments, net | (2,859) | (275) | |
Other income, net | 7,491 | 4,052 | 1,178 |
Total other revenue | 7,676 | 5,169 | 10,577 |
Other expenses: | |||
Employee compensation and benefits | 51,225 | 40,292 | 31,264 |
Selling and administrative | 21,064 | 15,706 | 18,099 |
Property operating expenses | 718 | 4,898 | 10,220 |
Depreciation and amortization | 2,524 | 2,391 | 2,046 |
Impairment loss on real estate owned | 1,000 | ||
Provision for credit losses (net of recoveries) | (21,223) | 59,967 | |
Total other expenses | 54,308 | 123,254 | 62,629 |
Income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes | 185,972 | 36,844 | 67,987 |
Gain (loss) on real estate | (3,374) | (3,546) | (7,439) |
(Loss) Gain on sale of real estate | 2,466 | (878) | |
Income from equity affiliates | 34,567 | 76,161 | 10,635 |
Provision for income taxes | (5,940) | (14,303) | (668) |
Net income | 213,691 | 94,278 | 70,515 |
Preferred stock dividends | 21,888 | 7,554 | 7,554 |
Net income attributable to common stockholders | 191,803 | 86,724 | 62,961 |
Operating segments | Agency Business | |||
Segment Information | |||
Interest income | 39,048 | 33,572 | 26,099 |
Interest expense | 17,570 | 18,252 | 16,597 |
Net interest income | 21,478 | 15,320 | 9,502 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 123,037 | 94,607 | 65,652 |
Mortgage servicing rights | 130,230 | 165,517 | 90,761 |
Servicing revenue | 133,429 | 103,607 | 103,223 |
Amortization of MSRs | (58,615) | (49,222) | (48,681) |
Loss on derivative instruments, net | (2,684) | (55,476) | (1,687) |
Other income, net | 75 | 57 | |
Total other revenue | 325,472 | 259,090 | 209,268 |
Other expenses: | |||
Employee compensation and benefits | 120,571 | 104,088 | 90,838 |
Selling and administrative | 24,511 | 21,642 | 22,230 |
Depreciation and amortization | 4,691 | 5,249 | 5,464 |
Provision for loss sharing (net of recoveries) | (6,167) | 14,822 | 1,147 |
Provision for credit losses (net of recoveries) | 110 | 1,143 | |
Total other expenses | 143,716 | 146,944 | 119,679 |
Income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes | 203,234 | 127,466 | 99,091 |
(Loss) Gain on sale of real estate | 1,227 | 503 | |
Provision for income taxes | (40,345) | (26,090) | (14,368) |
Net income | 164,116 | 101,879 | 84,723 |
Net income attributable to common stockholders | 164,116 | 101,879 | 84,723 |
Other / Eliminations | |||
Other expenses: | |||
Net income attributable to noncontrolling interest | 38,507 | 25,208 | 26,610 |
Net income attributable to common stockholders | $ (38,507) | $ (25,208) | $ (26,610) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||||
Cash and cash equivalents | $ 404,580 | $ 339,528 | $ 299,687 | $ 160,063 |
Restricted cash | 486,690 | 197,470 | 210,875 | 180,606 |
Loans and investments, net | 11,981,048 | 5,285,868 | $ 4,189,960 | $ 3,200,145 |
Loans held-for-sale, net | 1,093,609 | 986,919 | ||
Capitalized mortgage servicing rights, net | 422,734 | 379,974 | ||
Securities held-to-maturity, net | 140,484 | 95,524 | ||
Investments in equity affiliates | 89,676 | 74,274 | ||
Goodwill and other intangible assets | 100,760 | 105,451 | ||
Other assets and due from related party | 354,264 | 195,978 | ||
Total assets | 15,073,845 | 7,660,986 | ||
Liabilities: | ||||
Debt obligations | 12,056,701 | 5,824,664 | ||
Allowance for loss-sharing obligations | 56,064 | 64,303 | ||
Other liabilities and due to related parties | 411,096 | 289,334 | ||
Total liabilities | 12,523,861 | 6,178,301 | ||
Structured Transaction Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 142,771 | 172,568 | ||
Restricted cash | 468,013 | 188,226 | ||
Loans and investments, net | 11,981,048 | 5,285,868 | ||
Investments in equity affiliates | 89,676 | 74,274 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets and due from related party | 285,600 | 142,844 | ||
Total assets | 12,979,608 | 5,876,280 | ||
Liabilities: | ||||
Debt obligations | 11,100,429 | 4,872,626 | ||
Other liabilities and due to related parties | 278,726 | 203,554 | ||
Total liabilities | 11,379,155 | 5,076,180 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 261,809 | 166,960 | ||
Restricted cash | 18,677 | 9,244 | ||
Loans held-for-sale, net | 1,093,609 | 986,919 | ||
Capitalized mortgage servicing rights, net | 422,734 | 379,974 | ||
Securities held-to-maturity, net | 140,484 | 95,524 | ||
Goodwill and other intangible assets | 88,260 | 92,951 | ||
Other assets and due from related party | 68,664 | 53,134 | ||
Total assets | 2,094,237 | 1,784,706 | ||
Liabilities: | ||||
Debt obligations | 956,272 | 952,038 | ||
Allowance for loss-sharing obligations | 56,064 | 64,303 | ||
Other liabilities and due to related parties | 132,370 | 85,780 | ||
Total liabilities | $ 1,144,706 | $ 1,102,121 |
Segment Information - Originati
Segment Information - Origination Data (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Segment Information | |||
Origination Volumes | $ 6,347,752,000 | $ 6,810,666,000 | $ 4,829,721,000 |
Loan Sales Data: | |||
Sales margin (fee-based services as a % of loan sales) | 1.92% | 1.44% | 1.49% |
MSR rate (MSR income as a % of loan commitments) | 2.05% | 2.43% | 1.88% |
Structured Transaction Business | |||
Segment Information | |||
Total new loan originations | $ 9,720,515,000 | $ 2,433,679,000 | $ 2,803,251,000 |
Loan payoffs / paydowns | 2,516,771,000 | 1,208,071,000 | 1,748,387,000 |
Structured Transaction Business | Bridge Loans | |||
Segment Information | |||
Total new loan originations | 9,490,402,000 | 2,312,061,000 | 2,598,658,000 |
Structured Transaction Business | Mezzanine Loans | |||
Segment Information | |||
Total new loan originations | 175,225,000 | 45,122,000 | 127,784,000 |
Structured Transaction Business | Preferred equity investments | |||
Segment Information | |||
Total new loan originations | 28,650,000 | 31,600,000 | 35,130,000 |
Structured Transaction Business | Other loans | |||
Segment Information | |||
Total new loan originations | 26,238,000 | 44,896,000 | 41,679,000 |
Structured Transaction Business | SFR - Fixed Rate | Bridge Loans | |||
Segment Information | |||
Loans committed | $ 729,500,000,000 | $ 261,500,000 | 63,200,000 |
Number of loans under the loan portfolio | 103 | ||
Structured Transaction Business | SFR - Fixed Rate | Other loans | |||
Segment Information | |||
Number of loans under the loan portfolio | loan | 1 | 9 | |
Total loan commitment | $ 26,200,000 | $ 37,200,000 | |
Agency Business | |||
Segment Information | |||
Origination Volumes | 6,409,558,000 | 6,711,969,000 | 4,810,225,000 |
Loan Sales Data: | |||
Loan Sales | 6,415,169,000 | 6,587,728,000 | 4,401,112,000 |
Agency Business | SFR - Fixed Rate | |||
Segment Information | |||
Origination Volumes | 136,931,000 | ||
Loan Sales Data: | |||
Loan Sales | 192,335,000 | ||
Agency Business | SFR - Fixed Rate | Bridge Loans | |||
Segment Information | |||
Total loan commitment | 389,200,000 | ||
Agency Business | Fannie Mae | |||
Segment Information | |||
Origination Volumes | 3,389,312,000 | 5,041,925,000 | 3,346,272,000 |
Loan Sales Data: | |||
Loan Sales | 3,675,763,000 | 4,771,113,000 | 3,296,523,000 |
Agency Business | Private Label | |||
Segment Information | |||
Origination Volumes | 1,016,142,000 | 960,508,000 | 728,317,000 |
Loan Sales Data: | |||
Loan Sales | 985,094,000 | 727,154,000 | |
Agency Business | Freddie Mac | |||
Segment Information | |||
Origination Volumes | 1,436,853,000 | 382,191,000 | 401,216,000 |
Loan Sales Data: | |||
Loan Sales | 1,081,702,000 | 816,802,000 | 786,993,000 |
Agency Business | FHA | |||
Segment Information | |||
Origination Volumes | 430,320,000 | 327,345,000 | 123,095,000 |
Loan Sales Data: | |||
Loan Sales | $ 480,275,000 | $ 272,659,000 | 106,271,000 |
Agency Business | CMBS/Conduit | |||
Segment Information | |||
Origination Volumes | 211,325,000 | ||
Loan Sales Data: | |||
Loan Sales | $ 211,325,000 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Information | ||
UPB of Servicing Portfolio | $ 26,959,389 | $ 24,628,456 |
Wtd. Avg. Servicing Fee Rate (basis points) | 44.90% | 45.40% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 9 months 18 days | 8 years 10 months 24 days |
SFR - Fixed Rate | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 191,698 | |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | |
Wtd. Avg. Life of Servicing Portfolio (in years) | 6 years 6 months | |
Fannie Mae | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 19,127,397 | $ 18,268,268 |
Wtd. Avg. Servicing Fee Rate (basis points) | 53.50% | 52.30% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years | 8 years 2 months 12 days |
Freddie Mac | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 4,943,905 | $ 4,881,080 |
Wtd. Avg. Servicing Fee Rate (basis points) | 27.10% | 27.90% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years 3 months 18 days | 9 years 10 months 24 days |
Private Label | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 1,711,326 | $ 726,992 |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | 20.00% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 3 months 18 days | 8 years 8 months 12 days |
FHA | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 985,063 | $ 752,116 |
Wtd. Avg. Servicing Fee Rate (basis points) | 15.40% | 16.30% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 21 years | 20 years 3 months 18 days |
SCHEDULE IV - LOANS AND OTHER_2
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2021 | |
Loans and Investments | |||
Base spread (as a percent) | 3.00% | ||
Fixed interest rate (as a percent) | 4.26% | 5.23% | |
Prior Liens | $ 1,391,692 | ||
Secured amount of loan | 12,158,995 | ||
Carrying Amount | 11,981,048 | ||
Amount of loans extended | 1,240,000 | ||
Federal income tax basis | $ 12,160,000 | ||
Threshold for reporting loans (as a percent) | 3.00% | ||
Bridge Loans | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 4.19% | 5.09% | |
Prior Liens | $ 0 | ||
Secured amount of loan | 11,750,710 | ||
Carrying Amount | 11,593,958 | ||
Carrying Amount Subject to Delinquent Interest | 0 | ||
Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | 0 | ||
Secured amount of loan | 11,750,710 | ||
Carrying Amount | 11,593,958 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Mezzanine Loans | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 7.32% | 7.40% | |
Mezzanine Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 735,936 | ||
Secured amount of loan | 223,378 | ||
Carrying Amount | $ 213,931 | ||
Preferred equity investments | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 5.57% | 7.07% | |
Preferred equity investments | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 655,756 | ||
Secured amount of loan | 155,513 | ||
Carrying Amount | 144,015 | ||
Other Loans | Loans less than 3% | |||
Loans and Investments | |||
Secured amount of loan | 29,394 | ||
Carrying Amount | 29,144 | ||
Multifamily Portfolio | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | 0 | ||
Secured amount of loan | 10,800,896 | ||
Carrying Amount | 10,733,582 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Multifamily Portfolio | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 2.50% | ||
LIBOR Floor rate (as a percent) | 0.10% | ||
Fixed interest rate (as a percent) | 3.83% | ||
Multifamily Portfolio | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 6.75% | ||
LIBOR Floor rate (as a percent) | 2.50% | ||
Fixed interest rate (as a percent) | 11.00% | ||
Multifamily Portfolio | Mezzanine Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 705,547 | ||
Secured amount of loan | 165,001 | ||
Carrying Amount | $ 159,022 | ||
Multifamily Portfolio | Mezzanine Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 3.50% | ||
Multifamily Portfolio | Mezzanine Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 12.95% | ||
Multifamily Portfolio | Preferred equity investments | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 482,964 | ||
Secured amount of loan | 116,014 | ||
Carrying Amount | $ 113,506 | ||
Multifamily Portfolio | Preferred equity investments | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 2.00% | ||
Multifamily Portfolio | Preferred equity investments | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 14.00% | ||
Land | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 0.00% | ||
Prior Liens | $ 0 | ||
Secured amount of loan | 189,613 | ||
Carrying Amount | 111,741 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
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% | ||
Land | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 6.00% | ||
LIBOR Floor rate (as a percent) | 1.66% | ||
Land | Mezzanine Loans | Loans less than 3% | |||
Loans and Investments | |||
Base spread (as a percent) | 6.00% | ||
LIBOR Floor rate (as a percent) | 1.66% | ||
Fixed interest rate (as a percent) | 0.00% | ||
Secured amount of loan | $ 48,832 | ||
Carrying Amount | $ 48,809 | ||
Land | Preferred equity investments | Loans less than 3% | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 12.00% | ||
Secured amount of loan | $ 8,100 | ||
Carrying Amount | 7,975 | ||
Healthcare | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | 0 | ||
Secured amount of loan | 146,969 | ||
Carrying Amount | 146,823 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Healthcare | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 5.00% | ||
LIBOR Floor rate (as a percent) | 1.49% | ||
Healthcare | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 6.75% | ||
LIBOR Floor rate (as a percent) | 2.63% | ||
Office | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Base spread (as a percent) | 3.50% | ||
Fixed interest rate (as a percent) | 0.00% | ||
Prior Liens | $ 0 | ||
Secured amount of loan | 72,390 | ||
Carrying Amount | 70,877 | ||
Carrying Amount Subject to Delinquent Interest | 0 | ||
Office | Preferred equity investments | Loans less than 3% | |||
Loans and Investments | |||
Secured amount of loan | 8,199 | ||
Carrying Amount | $ 1,640 | ||
Office | Preferred equity investments | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 0.00% | ||
Hotel Portfolio | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
LIBOR Floor rate (as a percent) | 0.75% | ||
Prior Liens | $ 0 | ||
Secured amount of loan | 45,716 | ||
Carrying Amount | 45,629 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Hotel Portfolio | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 3.00% | ||
Hotel Portfolio | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 6.75% | ||
Real Estate Single-Family Rental | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 0 | ||
Secured amount of loan | 408,246 | ||
Carrying Amount | 400,998 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Real Estate Single-Family Rental | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 3.50% | ||
LIBOR Floor rate (as a percent) | 0.25% | ||
Fixed interest rate (as a percent) | 4.23% | ||
Real Estate Single-Family Rental | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 6.75% | ||
LIBOR Floor rate (as a percent) | 2.25% | ||
Fixed interest rate (as a percent) | 10.00% | ||
Real Estate Single-Family Rental | Other Loans | Loans less than 3% | |||
Loans and Investments | |||
LIBOR Floor rate (as a percent) | 0.25% | ||
Secured amount of loan | $ 29,394 | ||
Carrying Amount | $ 29,144 | ||
Real Estate Single-Family Rental | Other Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 4.25% | ||
Real Estate Single-Family Rental | Other Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 4.90% | ||
Student Housing | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | $ 0 | ||
Secured amount of loan | 56,800 | ||
Carrying Amount | 56,624 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Student Housing | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 4.00% | ||
LIBOR Floor rate (as a percent) | 0.25% | ||
Student Housing | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 4.50% | ||
LIBOR Floor rate (as a percent) | 1.80% | ||
Student Housing | Preferred equity investments | Loans less than 3% | |||
Loans and Investments | |||
Fixed interest rate (as a percent) | 12.00% | ||
Prior Liens | $ 143,000 | ||
Secured amount of loan | 21,500 | ||
Carrying Amount | 20,894 | ||
Retail | Bridge Loans | Loans less than 3% | |||
Loans and Investments | |||
Prior Liens | 0 | ||
Secured amount of loan | 16,500 | ||
Carrying Amount | 14,105 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
Retail | Bridge Loans | Loans less than 3% | Minimum | |||
Loans and Investments | |||
Base spread (as a percent) | 3.50% | ||
LIBOR Floor rate (as a percent) | 1.00% | ||
Retail | Bridge Loans | Loans less than 3% | Maximum | |||
Loans and Investments | |||
Base spread (as a percent) | 4.00% | ||
LIBOR Floor rate (as a percent) | 2.50% | ||
Retail | Mezzanine Loans | Loans less than 3% | |||
Loans and Investments | |||
Base spread (as a percent) | 3.50% | ||
LIBOR Floor rate (as a percent) | 1.00% | ||
Fixed interest rate (as a percent) | 12.00% | ||
Prior Liens | $ 30,389 | ||
Secured amount of loan | 9,545 | ||
Carrying Amount | $ 6,100 | ||
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% | ||
Prior Liens | $ 0 | ||
Secured amount of loan | 13,580 | ||
Carrying Amount | 13,579 | ||
Carrying Amount Subject to Delinquent Interest | $ 0 | ||
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 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the Company's loans and investments carrying amounts | |||
Balance at beginning of year | $ 5,285,868 | $ 4,189,960 | $ 3,200,145 |
Additions during period: | |||
New loan originations | 9,720,515 | 2,433,679 | 2,831,822 |
Loan charge-offs | 10,773 | ||
Funding of unfunded loan commitments | 200,694 | 133,244 | 65,531 |
Accretion of unearned revenue | 25,618 | 13,590 | 12,083 |
Recoveries of reserves | 24,315 | 75 | |
Deductions during period: | |||
Loan payoffs and paydowns | (2,516,771) | (1,243,694) | (1,753,693) |
Reclassification to held-for-sale loans | (65,144) | ||
Unfunded loan commitments | (624,519) | (127,758) | (147,392) |
Use of loan charge-offs | (10,773) | ||
Provision for loan losses | (77,335) | ||
Unearned revenue and costs | (69,528) | (35,893) | (18,536) |
Balance at end of year | $ 11,981,048 | $ 5,285,868 | $ 4,189,960 |