Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 160,202,358 | |
Entity Central Index Key | 0001253986 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
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 CumulativeRedeemable, 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 CumulativeRedeemable, par value $0.01 per share | |
Trading Symbol | ABR-PE | |
Security Exchange Name | NYSE | |
Series F Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value | |
Trading Symbol | ABR-PF | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 350,814 | $ 404,580 |
Restricted cash | 517,090 | 486,690 |
Loans and investments, net (allowance for credit losses of $116,382 and $113,241) | 13,978,283 | 11,981,048 |
Loans held-for-sale, net | 336,959 | 1,093,609 |
Capitalized mortgage servicing rights, net | 422,036 | 422,734 |
Securities held-to-maturity, net (allowance for credit losses of $2,043 and $1,753)Securities held-to-maturity, net (allowance for credit losses of $2,043 and $1,753) | 161,696 | 140,484 |
Investments in equity affiliates | 96,836 | 89,676 |
Due from related party | 53,744 | 84,318 |
Goodwill and other intangible assets | 99,587 | 100,760 |
Other assets | 291,861 | 269,946 |
Total assets | 16,308,906 | 15,073,845 |
Liabilities and Equity: | ||
Credit and repurchase facilities | 4,302,819 | 4,481,579 |
Collateralized loan obligations | 7,099,770 | 5,892,810 |
Senior unsecured notes | 1,281,489 | 1,280,545 |
Convertible senior unsecured notes, net | 262,483 | 259,385 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 142,570 | 142,382 |
Due to related party | 12,812 | 26,570 |
Due to borrowers | 106,796 | 96,641 |
Allowance for loss-sharing obligations | 55,172 | 56,064 |
Other liabilities | 272,947 | 287,885 |
Total liabilities | 13,536,858 | 12,523,861 |
Commitments and contingencies (Note 13) | ||
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: Special voting preferred shares - 16,325,095 shares 6.375% Series D - 9,200,000 shares 6.25% Series E - 5,750,000 shares 6.25% Series F - 11,342,000 and 8,050,000 shares | 633,734 | 556,163 |
Common stock, $0.01 par value: 500,000,000 shares authorized - 160,198,115 and 151,362,181 shares issued and outstanding | 1,602 | 1,514 |
Additional paid-in capital | 1,927,621 | 1,797,913 |
Retained earnings | 75,828 | 62,532 |
Total Arbor Realty Trust, Inc. stockholders' equity | 2,638,785 | 2,418,122 |
Noncontrolling interest | 133,263 | 131,862 |
Total equity | 2,772,048 | 2,549,984 |
Total liabilities and equity | $ 16,308,906 | $ 15,073,845 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loans and investments, net allowance for credit losses | $ 116,382 | $ 113,241 |
Securities held-to-maturity, net allowance for credit losses | $ 2,043 | $ 1,753 |
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) | 160,198,115 | 151,362,181 |
Common stock, shares outstanding (in shares) | 160,198,115 | 151,362,181 |
Assets | $ 16,308,906 | $ 15,073,845 |
Liabilities | 13,536,858 | 12,523,861 |
Consolidated VIEs | ||
Assets | 8,679,272 | 7,144,806 |
Liabilities | $ 7,107,860 | $ 5,902,623 |
Special voting preferred shares | ||
Preferred stock, shares issued (in shares) | 16,325,095 | |
Preferred stock, shares outstanding (in shares) | 16,325,095 | |
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 | |
6.25% Series E preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
Preferred stock, shares issued (in shares) | 5,750,000 | |
6.25% Series F preferred stock | ||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
Preferred stock, shares issued (in shares) | 11,342,000 | 8,050,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Interest income | $ 166,698 | $ 91,144 |
Interest expense | 82,559 | 42,184 |
Net interest income | 84,139 | 48,960 |
Other revenue: | ||
Gain on sales, including fee-based services, net | 1,656 | 28,867 |
Mortgage servicing rights | 15,312 | 36,936 |
Servicing revenue, net | 21,054 | 15,536 |
Property operating income | 295 | |
Gain (loss) on derivative instruments, net | 17,386 | (3,220) |
Other income, net | 3,200 | 681 |
Total other revenue | 58,903 | 78,800 |
Other expenses: | ||
Employee compensation and benefits | 42,025 | 42,974 |
Selling and administrative | 14,548 | 10,818 |
Property operating expenses | 535 | 143 |
Depreciation and amortization | 1,983 | 1,755 |
Provision for loss sharing (net of recoveries) | (662) | 1,652 |
Provision for credit losses (net of recoveries) | 2,358 | (1,075) |
Total other expenses | 60,787 | 56,267 |
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 82,255 | 71,493 |
Loss on extinguishment of debt | (1,350) | (1,370) |
Gain on real estate | 1,228 | |
Income from equity affiliates | 7,212 | 22,251 |
Provision for income taxes | (8,188) | (12,492) |
Net income | 79,929 | 81,110 |
Preferred stock dividends | 9,056 | 1,888 |
Net income attributable to noncontrolling interest | 6,816 | 9,743 |
Net income attributable to common stockholders | $ 64,057 | $ 69,479 |
Basic earnings per common share | $ 0.42 | $ 0.55 |
Diluted earnings per common share | $ 0.40 | $ 0.55 |
Weighted average shares outstanding: | ||
Basic | 153,420,238 | 125,235,405 |
Diluted | 185,431,404 | 143,958,433 |
Dividends declared per common share | $ 0.37 | $ 0.33 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Preferred Stock6.25% Series F preferred stock | Preferred StockBalance as adjusted for the adoption of ASU 2016-13 | Preferred Stock | Common Stock6.25% Series F preferred stock | Common StockBalance as adjusted for the adoption of ASU 2016-13 | Common Stock | Additional Paid-in Capital6.25% Series F preferred stock | Additional Paid-in CapitalCumulative-effect adjustment | Additional Paid-in CapitalBalance as adjusted for the adoption of ASU 2016-13 | Additional Paid-in Capital | Retained Earnings / (Accumulated Deficit)6.25% Series F preferred stock | Retained Earnings / (Accumulated Deficit)Cumulative-effect adjustment | Retained Earnings / (Accumulated Deficit)Balance as adjusted for the adoption of ASU 2016-13 | Retained Earnings / (Accumulated Deficit) | 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 Interest6.25% Series F preferred stock | Non-controlling InterestCumulative-effect adjustment | Non-controlling InterestBalance as adjusted for the adoption of ASU 2016-13 | Non-controlling Interest | 6.25% Series F preferred stock | Cumulative-effect adjustment | Balance as adjusted for the adoption of ASU 2016-13 | Total |
Balance at Dec. 31, 2020 | $ 89,472 | $ 1,232 | $ 1,317,109 | $ (63,442) | $ 1,344,371 | $ 138,314 | $ 1,482,685 | |||||||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 21,272,133 | 123,181,173 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||
Issuance of common stock | $ 101 | 158,332 | 158,433 | 158,433 | ||||||||||||||||||||||
Issuance of common stock (in shares) | 10,140,400 | |||||||||||||||||||||||||
Stock-based compensation, net | $ 4 | (2,321) | (2,317) | (2,317) | ||||||||||||||||||||||
Stock-based compensation, net (in shares) | 368,487 | |||||||||||||||||||||||||
Distributions - common stock | (41,530) | (41,530) | (41,530) | |||||||||||||||||||||||
Distributions - preferred stock | (1,893) | (1,893) | (1,893) | |||||||||||||||||||||||
Distributions - noncontrolling interest | (5,796) | (5,796) | ||||||||||||||||||||||||
Net income | 71,367 | 71,367 | 9,743 | 81,110 | ||||||||||||||||||||||
Balance at Mar. 31, 2021 | $ 89,472 | $ 1,337 | 1,473,120 | (35,498) | 1,528,431 | 142,261 | 1,670,692 | |||||||||||||||||||
Balance (in shares) at Mar. 31, 2021 | 21,272,133 | 133,690,060 | ||||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ 556,163 | $ 556,163 | $ 1,514 | $ 1,514 | $ (8,684) | $ 1,789,229 | 1,797,913 | $ 5,612 | $ 68,144 | 62,532 | $ (3,072) | $ 2,415,050 | 2,418,122 | $ 625 | $ 132,487 | 131,862 | $ (2,447) | $ 2,547,537 | 2,549,984 | |||||||
Balance (in shares) at Dec. 31, 2021 | 39,325,095 | 39,325,095 | 151,362,181 | 151,362,181 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||
Issuance of common stock | $ 77,571 | $ 0 | $ 82 | $ 0 | 137,718 | $ 0 | $ 77,571 | 137,800 | $ 0 | $ 77,571 | 137,800 | |||||||||||||||
Issuance of common stock (in shares) | 3,292,000 | 0 | 8,225,750 | |||||||||||||||||||||||
Stock-based compensation, net | $ 6 | 674 | 680 | 680 | ||||||||||||||||||||||
Stock-based compensation, net (in shares) | 610,184 | |||||||||||||||||||||||||
Distributions - common stock | (56,373) | (56,373) | (56,373) | |||||||||||||||||||||||
Distributions - preferred stock | (9,056) | (9,056) | (9,056) | |||||||||||||||||||||||
Distributions - noncontrolling interest | (6,040) | (6,040) | ||||||||||||||||||||||||
Net income | 73,113 | 73,113 | 6,816 | 79,929 | ||||||||||||||||||||||
Balance at Mar. 31, 2022 | $ 633,734 | $ 1,602 | $ 1,927,621 | $ 75,828 | $ 2,638,785 | $ 133,263 | $ 2,772,048 | |||||||||||||||||||
Balance (in shares) at Mar. 31, 2022 | 42,617,095 | 160,198,115 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 79,929 | $ 81,110 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,983 | 1,755 | |
Stock-based compensation | 6,095 | 3,330 | |
Amortization and accretion of interest and fees, net | (2,840) | (72) | |
Amortization of capitalized mortgage servicing rights | 14,972 | 14,204 | |
Originations of loans held-for-sale | (845,620) | (1,412,722) | |
Proceeds from sales of loans held-for-sale, net of gain on sale | 1,586,715 | 1,841,891 | |
Mortgage servicing rights | (15,312) | (36,936) | |
Write-off of capitalized mortgage servicing rights from payoffs | 12,697 | 3,828 | |
Provision for loss sharing (net of recoveries) | (662) | 1,652 | |
Provision for credit losses (net of recoveries) | 2,358 | (1,075) | |
Net (charge-offs) recoveries for loss sharing obligations | (230) | (62) | |
Deferred tax (benefit) provision | (1,720) | 4,486 | |
Income from equity affiliates | (7,212) | (22,251) | |
Distributions from equity affiliates | 12,859 | 13,164 | |
Loss on extinguishment of debt | 1,350 | 1,370 | |
Payoffs and paydowns of loans held-for-sale | 3,258 | 2,316 | |
Changes in operating assets and liabilities | (11,792) | (4,898) | |
Net cash provided by operating activities | 836,828 | 491,090 | |
Investing Activities: | |||
Loans and investments funded, originated and purchased, net | (2,656,874) | (1,055,354) | |
Payoffs and paydowns of loans and investments | 668,379 | 234,711 | |
Deferred fees | 20,767 | 9,190 | |
Contributions to equity affiliates | (12,807) | (21,045) | |
Purchase of securities held-to-maturity, net | (27,598) | ||
Payoffs and paydowns of securities held-to-maturity | 2,647 | 3,380 | |
Due to borrowers and reserves | (12,150) | (42,154) | |
Net cash used in investing activities | (2,017,636) | (871,272) | |
Financing activities: | |||
Proceeds from credit and repurchase facilities | 3,035,664 | 3,685,968 | |
Paydowns and payoffs of credit and repurchase facilities | (3,213,976) | (3,704,382) | |
Proceeds from issuance of collateralized loan obligations | 1,652,812 | 655,475 | |
Payoffs and paydowns of collateralized loan obligations | (441,000) | (356,149) | |
Proceeds from issuance of common stock | 137,800 | 158,433 | |
Proceeds from issuance of preferred stock | 77,571 | ||
Payments of withholding taxes on net settlement of vested stock | (5,415) | (5,647) | |
Distributions to stockholders | (72,099) | (49,219) | |
Payment of deferred financing costs | (13,915) | (9,028) | |
Net cash provided by financing activities | 1,157,442 | 375,451 | |
Net decrease in cash, cash equivalents and restricted cash | (23,366) | (4,731) | |
Cash, cash equivalents and restricted cash at beginning of period | 891,270 | 536,998 | |
Cash, cash equivalents and restricted cash at end of period | 867,904 | 532,267 | $ 536,998 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents at beginning of period | 404,580 | 339,528 | |
Restricted cash at beginning of period | 486,690 | 197,470 | |
Cash, cash equivalents and restricted cash at beginning of period | 891,270 | 536,998 | |
Cash and cash equivalents at end of period | 350,814 | 260,228 | |
Restricted cash at end of period | 517,090 | 272,039 | |
Cash, cash equivalents and restricted cash at end of period | 867,904 | 532,267 | $ 536,998 |
Supplemental cash flow information: | |||
Cash used to pay interest | 70,069 | 36,311 | |
Cash used to pay taxes | 741 | 548 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 6,138 | 629 | |
Cummulative-effect adjustment (Note 2) | $ 2,447 | ||
Loans transferred from loans and investment, net to loans held-for-sale | 65,204 | ||
Fair value of conversion feature of convertible senior unsecured notes | $ 185 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Description of Business | |
Description of Business | Note 1 — Description of Business Arbor Realty Trust, Inc. (“we,” “us,” or “our”) is a Maryland corporation formed in 2003. We are a nationwide REIT and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Loan Origination and Investment Business, or “Structured Business,” and our Agency Loan Origination and Servicing Business, or “Agency Business.” Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental (“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 the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, the government-sponsored enterprises, or “GSEs”), the Government National Mortgage Association (“Ginnie Mae”), Federal Housing Authority (“FHA”) and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, “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 Delegated Underwriting and Servicing (“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 small balance loan (“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 conduit/commercial mortgage-backed securities (“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 (“APL certificates”). Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the indirect general partner, and ARLP's subsidiaries. We are organized to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. A REIT is generally not subject to federal income tax on that portion of its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS”), which are part of our TRS consolidated group (the “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 | 3 Months Ended |
Mar. 31, 2022 | |
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 These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. 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. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2021 Annual Report. Principles of Consolidation These 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 14. 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. Since 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 March 31, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19. Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 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 ("ASU 2020-06"). 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 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 amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the first quarter of 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. First quarter of 2023, with early adoption permitted We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2021 Annual Report for a description of our significant accounting policies. Except for the adoption of ASU 2020-06 described above, there have been no significant changes to our significant accounting policies since December 31, 2021. |
Loans and Investments
Loans and Investments | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Investments | |
Loans and Investments | Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar March 31, 2022 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 13,756,948 97 % 624 4.32 % 24.0 0 % 76 % Mezzanine loans 228,687 2 % 41 7.58 % 54.8 34 % 82 % Preferred equity investments 147,799 1 % 9 5.28 % 37.2 58 % 86 % Other loans (5) 36,362 <1 % 3 4.72 % 41.7 0 % 66 % 14,169,796 100 % 677 4.38 % 24.7 1 % 76 % Allowance for credit losses (116,382) Unearned revenue (75,131) Loans and investments, net $ 13,978,283 December 31, 2021 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 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“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 additional rate of interest “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) At March 31, 2022 and December 31, 2021, bridge loans included 154 and 120, respectively, of SFR loans with a total gross loan commitment of $934.4 million and $804.6 million, respectively, of which $521.3 million and $408.2 million, respectively, was funded. (5) At both March 31, 2022 and December 31, 2021, other loans included 2 variable rate SFR permanent loans. Concentration of Credit Risk We are subject to concentration risk in that, at March 31, 2022, the UPB related to 41 loans with five different borrowers represented 11% of total assets. At December 31, 2021, the UPB related to 31 loans with five different borrowers represented 11% of total assets. During both the three months ended March 31, 2022 and the year ended December 31, 2021, 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 17 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 March 31, 2022 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2022 2021 2020 2019 2018 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 1,503,537 $ 5,251,052 $ 475,716 $ 35,332 $ — $ 49,100 $ 7,314,737 Pass/Watch 865,188 2,438,626 384,715 181,379 99,250 350 3,969,508 Special Mention 132,660 748,587 309,846 351,985 64,200 32,500 1,639,778 Substandard — 7,400 18,582 32,370 — 8,250 66,602 Total Multifamily $ 2,501,385 $ 8,445,665 $ 1,188,859 $ 601,066 $ 163,450 $ 90,200 $ 12,990,625 1 % 77 % Single-Family Rental: Percentage of portfolio 92 % Pass $ — $ 62,350 $ 18,324 $ — $ — $ — $ 80,674 Pass/Watch 79,125 225,390 17,359 — — — 321,874 Special Mention 18,301 46,089 72,037 18,661 — — 155,088 Total Single-Family Rental $ 97,426 $ 333,829 $ 107,720 $ 18,661 $ — $ — $ 557,636 0 % 65 % Land: Percentage of portfolio 4 % Special Mention $ — $ — $ 8,100 $ — $ — $ — $ 8,100 Substandard — — 71,018 19,524 — 147,903 238,445 Total Land $ — $ — $ 79,118 $ 19,524 $ — $ 147,903 $ 246,545 0 % 96 % Healthcare: Percentage of portfolio 2 % Pass $ — $ — $ — $ — $ 25,426 $ — $ 25,426 Pass/Watch — — — 14,558 — — 14,558 Special Mention — — — 51,069 — 39,650 90,719 Total Healthcare $ — $ — $ — $ 65,627 $ 25,426 $ 39,650 $ 130,703 0 % 73 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ 35,410 $ — $ 43,541 $ 1,962 $ 80,913 Total Office $ — $ — $ 35,410 $ — $ 43,541 $ 1,962 $ 80,913 0 % 85 % Student Housing: Percentage of portfolio 1 % Pass $ — $ 25,700 $ — $ — $ — $ — $ 25,700 Special Mention — — — 31,050 — — 31,050 Substandard — — 21,500 — — — 21,500 Total Student Housing $ — $ 25,700 $ 21,500 $ 31,050 $ — $ — $ 78,250 21 % 73 % Hotel: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ 2,799 $ — $ — $ — $ 2,799 Special Mention — — — 41,000 — — 41,000 Total Hotel $ — $ — $ 2,799 $ 41,000 $ — $ — $ 43,799 0 % 67 % 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 % 71 % Other: Percentage of portfolio < 1 % Special Mention $ — $ — $ — $ — $ 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 $ 2,598,811 $ 8,805,194 $ 1,435,406 $ 780,928 $ 264,597 $ 284,860 $ 14,169,796 1 % 76 % Geographic Concentration Risk As of March 31, 2022, underlying properties in Texas and Florida represented 20% and 13%, respectively, of the outstanding balance of our loan and investment portfolio. As of December 31, 2021, underlying properties in Texas and Florida represented 19% and 12%, respectively, of the outstanding balance of our loan and investment portfolio. 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): Three Months Ended March 31, 2022 Land Multifamily Office Retail Student Housing Hotel Healthcare Other Total Allowance for credit losses: Beginning balance $ 77,970 $ 18,707 $ 8,073 $ 5,819 $ 636 $ 8 $ 8 $ 2,020 $ 113,241 Provision for credit losses (net of recoveries) (30) 3,377 12 — (312) (4) (3) 101 3,141 Ending balance $ 77,940 $ 22,084 $ 8,085 $ 5,819 $ 324 $ 4 $ 5 $ 2,121 $ 116,382 Three Months Ended March 31, 2021 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) (54) (6,439) 6,205 (13) (580) (5) (8) (135) (1,029) Ending balance $ 78,096 $ 30,029 $ 8,051 $ 13,848 $ 3,498 $ 7,754 $ 3,872 $ 2,152 $ 147,300 The increase in the provision for credit losses during the three months ended March 31, 2022 of $3.1 million is primarily attributable to an increase in our loans and investments balance as a result of portfolio growth. 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 recent observable data, including an increase in interest rates and rising inflation, partially offset by increasing property values, decreases in unemployment rates and other market factors, including continued optimism in the COVID-19 pandemic. 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 March 31, 2022 and December 31, 2021, we had outstanding unfunded commitments of $1.13 billion and $975.2 million, respectively, that we are obligated to fund as borrowers meet certain requirements. As of March 31, 2022 and December 31, 2021, accrued interest receivable related to our loans totaling $65.1 million and $58.3 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): March 31, 2022 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 17,532 5,817 14 % 78 % Office 1,962 1,962 1,500 0 % 49 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 159,922 $ 149,062 $ 86,886 3 % 95 % December 31, 2021 Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,291 5,817 14 % 77 % 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 % 95 % (1) Represents the UPB of eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021. At March 31, 2022, four loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $5.1 million, were classified as non-performing and, 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. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. A summary of our non-performing loans by asset class is as follows (in thousands): March 31, 2022 December 31, 2021 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 $ 21,500 $ — $ 21,500 Retail 3,445 — 3,445 920 — 920 Commercial 1,700 — 1,700 1,700 — 1,700 Total $ 26,645 $ — $ 26,645 $ 24,120 $ — $ 24,120 In addition, we have six loans with a carrying value totaling $121.4 million at March 31, 2022, 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, we had no loans contractually past due 90 days or more that are still accruing interest. During the three months ended March 31, 2022 and 2021 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, which took place in 2021 and 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 2021, we entered into a second forbearance agreement that 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 until 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 the three months ended March 31, 2022 and 2021 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 March 31, 2022 and December 31, 2021, we had total interest reserves of $103.3 million and $87.4 million, respectively, on 383 loans and 328 loans, respectively, with an aggregate UPB of $6.43 billion and $5.75 billion, respectively. |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Fannie Mae $ 176,004 $ 392,876 Private Label 88,906 507,918 Freddie Mac 52,547 112,561 SFR - Fixed Rate 13,365 9,352 FHA 1,751 54,532 332,573 1,077,239 Fair value of future MSR 6,666 19,318 Unearned discount (2,280) (2,948) Loans held-for-sale, net $ 336,959 $ 1,093,609 During the three months ended March 31, 2022 and 2021, we sold $1.59 billion and $1.84 billion, respectively, of loans held-for-sale. Included in the total loans sold in the first quarter of 2022 were $489.3 million of Private Label loans, which were sold to unconsolidated affiliates of ours who securitized the loans. We retained the most subordinate class of certificates in the securitization totaling $43.4 million in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans. At March 31, 2022 and December 31, 2021, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status. |
Capitalized Mortgage Servicing
Capitalized Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2022 | |
Capitalized Mortgage Servicing Rights | |
Capitalized Mortgage Servicing Rights | Note 5 — Capitalized Mortgage Servicing Rights Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% - 13% (representing a weighted average discount rate of 12%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 8.3 years and 8.5 years at March 31, 2022 and December 31, 2021, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Originated Acquired Total Originated Acquired Total Beginning balance $ 395,573 $ 27,161 $ 422,734 $ 336,466 $ 43,508 $ 379,974 Additions 26,971 — 26,971 45,038 — 45,038 Amortization (12,927) (2,045) (14,972) (11,079) (3,125) (14,204) Write-downs and payoffs (11,556) (1,141) (12,697) (2,997) (831) (3,828) Ending balance $ 398,061 $ 23,975 $ 422,036 $ 367,428 $ 39,552 $ 406,980 We collected prepayment fees totaling $16.1 million and $2.7 million during the three months ended March 31, 2022 and 2021, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. As of March 31, 2022 and December 31, 2021, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded as of March 31, 2022 is as follows (in thousands): Year Amortization 2022 (nine months ending 12/31/2022) $ 44,494 2023 56,820 2024 54,685 2025 52,071 2026 48,114 Thereafter 165,852 Total $ 422,036 Actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Servicing | |
Mortgage Servicing | Note 6 — Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): March 31, 2022 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 18,781,611 70 % Texas 12 % Freddie Mac 4,792,764 18 % New York 12 % Private Label 2,200,206 8 % North Carolina 9 % FHA 999,446 4 % California 8 % SFR - Fixed Rate 190,590 < 1 % Georgia 6 % Total $ 26,964,617 100 % Florida 6 % New Jersey 6 % Other (2) 41 % Total 100 % December 31, 2021 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 % (1) Excludes loans which we are not collecting a servicing fee. (2) No other individual state represented 4% or more of the total. At March 31, 2022 and December 31, 2021, our weighted average servicing fee was 44.3 basis points and 44.9 basis points, respectively. At March 31, 2022 and December 31, 2021, we held total escrow balances of $2.11 billion and $1.99 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $631.5 million and $682.5 million at March 31, 2022 and December 31, 2021, respectively, related to loans we are servicing within our Agency Business. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, was $0.8 million and $1.2 million during the three months ended March 31, 2022 and 2021, respectively, and is a component of servicing revenue, net in the consolidated statements of income. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 3 Months Ended |
Mar. 31, 2022 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 7 — Securities Held-to-Maturity Agency Private Label Certificates (“APL certificates”). Agency B Piece Bonds. A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain Fair Value Credit Losses March 31, 2022 APL certificates $ 192,791 $ 121,039 $ 10,060 $ 131,099 $ 1,812 B Piece bonds 52,279 40,657 3,256 43,913 231 Total $ 245,070 $ 161,696 $ 13,316 $ 175,012 $ 2,043 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 A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands): Three Months Ended March 31, 2022 APL B Piece Certificates Bonds Total Beginning balance $ 1,422 $ 331 $ 1,753 Provision for credit loss expense/(reversal) 390 (100) 290 Ending balance $ 1,812 $ 231 $ 2,043 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 March 31, 2022, 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 $5.2 million and $2.9 million during the three months ended March 31, 2022 and 2021, respectively. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 March 31, 2022 Arbor Residential Investor LLC $ 63,351 $ 65,756 $ — AMAC Holdings III LLC 18,089 13,772 — Fifth Wall Ventures 10,207 5,409 — North Vermont Avenue 2,419 2,419 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 — — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 96,836 $ 89,676 $ 1,687 Arbor Residential Investor LLC (“ARI”). $5.0 million and $22.5 million, respectively, to income from equity affiliates in our consolidated statements of income. We also received cash distributions totaling 12.3% . The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% as of March 31, 2022. AMAC Holdings III LLC (“AMAC III”). We funded an additional $4.9 million during the first quarter of 2022. During both the three months ended March 31, 2022 and 2021, the loss recorded from this investment was de minimus. Fifth Wall Ventures (“Fifth Wall”). We funded an additional $4.8 million during the first quarter of 2022. Operating results for this investment were de minimus. Docsumo Pte. Ltd. (“Docsumo”). Equity Participation Interest. See Note 17 for details of certain investments described above. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2022 | |
Debt Obligations | |
Debt Obligations | Note 9 — Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): March 31, 2022 December 31, 2021 Note Debt Collateral Debt Collateral Current Extended Rate Carrying Carrying Wtd. Avg. Carrying Carrying Maturity Maturity Type Value (1) Value Note Rate Value (1) Value Structured Business $2B joint repurchase facility Mar. 2024 Mar. 2025 V $ 1,510,696 $ 1,939,608 2.88 % $ 1,486,380 $ 1,877,930 $1B repurchase facility Mar. 2023 N/A V 862,441 1,190,252 2.39 % 675,415 937,880 $450M repurchase facility Mar. 2023 Mar. 2026 V 443,525 570,791 2.30 % 397,272 511,269 $399M repurchase facility (2) Dec. 2022 N/A V 330,665 410,473 2.58 % 241,450 289,956 $325M repurchase facility (3) Oct. 2022 Oct 2023 V 273,535 353,024 2.17 % 293,700 385,337 $225M credit facility Oct. 2023 Oct. 2024 V 48,051 76,702 2.89 % 27,826 42,270 $200M repurchase facility Mar. 2024 Mar. 2025 V — — — % — — $200M repurchase facility Jan. 2024 Jan. 2025 V 114,187 143,450 2.27 % — — $200M credit facility July 2022 N/A V 195,930 260,421 1.93 % 177,406 236,538 $153.9M loan specific credit facilities May 2022 to Oct. 2024 N/A V/F 153,766 214,642 3.32 % 153,727 214,300 $50M credit facility June 2022 N/A V 29,198 36,500 2.49 % 29,194 36,500 $30M working capital facility Apr. 2023 N/A V — — — % — — $25M credit facility Oct. 2022 N/A V — — — % 1,235 1,900 $25M credit facility June 2022 June 2023 V 8,932 11,402 2.74 % 10,218 14,773 $1M master security agreement Dec. 2022 N/A F 479 — 4.01 % 635 — Repurchase facility - securities (4) N/A N/A V 29,614 — 3.75 % 30,849 — Structured Business total $ 4,001,019 $ 5,207,265 2.59 % $ 3,525,307 $ 4,548,653 Agency Business $750M ASAP agreement N/A N/A V $ 18,711 $ 18,711 1.40 % $ 182,130 $ 182,140 $500M joint repurchase facility Mar. 2024 Mar. 2025 V 70,983 88,906 2.44 % 395,317 475,360 $500M repurchase facility Nov. 2022 N/A V 80,102 80,173 1.78 % 236,429 236,527 $200M credit facility Mar. 2023 N/A V 51,608 51,810 1.75 % 115,304 115,351 $150M credit facility July 2022 N/A V 69,895 69,952 1.75 % 16,544 16,657 $50M credit facility Sept. 2022 N/A V 9,657 9,657 1.75 % 9,295 9,295 $1M repurchase facility (2) Dec. 2022 N/A V 844 958 3.00 % 1,253 1,477 Agency Business total $ 301,800 $ 320,167 1.91 % $ 956,272 $ 1,036,807 Consolidated total $ 4,302,819 $ 5,527,432 2.54 % $ 4,481,579 $ 5,585,460 V = ; F = Fixed Note Rate (1) The debt carrying value for the Structured Business at March 31, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $9.1 million and $7.7 million, respectively. The debt carrying value for the Agency Business at March 31, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $3.5 million and $4.4 million, respectively. (2) A portion of this facility was used to finance a $ 1.0 million fixed rate SFR permanent loan reported through our Agency Business. (3) Committed amount reflects a $ 125.0 million temporary increase that was scheduled to expire in April 2022. In April 2022, we amended this facility increasing the total committed amount to $450.0 million. (4) These facilities are subject to margin call provisions associated with changes in interest spreads. At March 31, 2022 and December 31, 2021, these facilities were collateralized by B Piece bonds with a carrying value of $40.7 million and $47.6 million, respectively. During the first quarter of 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 generally remain at a LIBOR-based interest rate. Structured Business At March 31, 2022 and December 31, 2021, 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 2.76% and 2.51%, 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 76% and 77% at March 31, 2022 and December 31, 2021, respectively. In March 2022, we entered into a $200.0 million repurchase facility that matures in March 2024, with a one year extension option. This facility has an interest rate of SOFR plus 2.55%. In January 2022, we entered into a $150.0 million repurchase facility to finance bridge and construction loans that matures in January 2024, with a one year extension option. This facility has interest rates of SOFR plus 1.75% to 3.50% depending on the type of loan financed with a SOFR floor determined on a loan by loan basis. In March 2022, we increased the facility by $50.0 million to $200.0 million. Collateralized Loan Obligations (“CLOs”) We account for CLO transactions on our consolidated balance sheet as financing facilities. Our CLOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us. Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted March 31, 2022 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO 18 $ 1,652,812 $ 1,644,088 2.13 % $ 1,933,268 $ 1,923,348 $ 6,680 CLO 17 1,714,125 1,706,118 2.16 % 2,016,926 2,005,486 20,454 CLO 16 1,237,500 1,230,478 1.79 % 1,446,698 1,439,541 — CLO 15 674,412 670,166 1.85 % 791,506 788,600 11,026 CLO 14 655,475 651,356 1.81 % 691,852 689,470 77,576 CLO 13 668,000 665,306 1.89 % 728,345 726,569 58,696 CLO 12 534,193 532,258 1.98 % 543,602 542,496 85,257 Total CLOs $ 7,136,517 $ 7,099,770 1.99 % $ 8,152,197 $ 8,115,510 $ 259,689 December 31, 2021 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 (1) Debt carrying value is net of $36.7 million and $31.9 million of deferred financing fees at March 31, 2022 and December 31, 2021, respectively. (2) At March 31, 2022 and December 31, 2021, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 2.24% and 1.86%, respectively. (3) As of March 31, 2022 and December 31, 2021, there were 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 $237.2 million and $133.7 million at March 31, 2022 and December 31, 2021, respectively. CLO 18. two CLO 10. Senior Unsecured Notes A summary of our senior unsecured notes is as follows (in thousands): Senior March 31, 2022 December 31, 2021 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 $ 177,132 5.00 % $ 180,000 $ 177,105 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 266,299 4.50 % 270,000 266,090 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 172,457 5.00 % 175,000 172,302 5.00 % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 70,305 8.00 % 70,750 70,202 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,598 4.50 % 275,000 272,477 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,104 4.75 % 110,000 109,018 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,231 5.75 % 90,000 89,135 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 124,363 5.63 % 125,000 124,216 5.63 % $ 1,295,750 $ 1,281,489 5.05 % $ 1,295,750 $ 1,280,545 5.05 % (1) At March 31, 2022 and December 31, 2021, the carrying value is net of deferred financing fees of $14.3 million and $15.2 million, respectively. (2) At both March 31, 2022 and December 31, 2021, the aggregate weighted average note rate, including certain fees and costs, was 5.34% . (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. 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. 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 of $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 most of the net proceeds from the issuance primarily for the exchange of $228.7 million of our 5.25% convertible senior notes for a combination of $233.1 million in cash (which included accrued interest) and 4,478,315 shares of our common stock. At March 31, 2022, the 4.75% Convertible Notes had a conversion rate of 57.0772 shares of common stock per $1,000 of principal, which represented a conversion price of $17.52 per share 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. At the time of issuance, there was no precedent or policy that would indicate that we would settle the principal in shares or the conversion spread in cash. On January 1, 2022, we adopted ASU 2020-06, see Note 2 for details, which no longer allows for the allocation of proceeds between debt and equity components, eliminates the amortization of the debt discount and requires the if-converted method to calculate diluted earnings per share, regardless of the settlement intent. 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 March 31, 2022 $ 264,000 $ — $ 1,517 $ 262,483 $ — December 31, 2021 $ 264,000 $ 2,520 $ 2,095 $ 259,385 $ 8,684 During the three months ended March 31, 2022, we incurred interest expense on the notes totaling $3.8 million, of which $3.1 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. During the three months ended March 31, 2021, we incurred interest expense on the notes totaling $4.8 million, of which $3.3 million, $0.8 million and $0.7 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. Including the amortization of the deferred financing fees and debt discount, our weighted average total cost of the notes was 5.73% and 6.71% at March 31, 2022 and December 31, 2021, respectively, or 5.73% at December 31, 2021 excluding the amortization of the debt discount (which ceased on January 1, 2022 with the adoption of ASU 2020-06). Junior Subordinated Notes The carrying values of borrowings under our junior subordinated notes were $142.6 million and $142.4 million at March 31, 2022 and December 31, 2021, respectively, which is net of a deferred amount of $10.1 million and $10.2 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of Debt Covenants Credit and Repurchase Facilities and Unsecured Debt. CLOs. accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs. However, we may not have sufficient liquidity available to do so at such time. Our CLO compliance tests as of the most recent determination dates in April 2022 are as follows: Cash Flow Triggers CLO 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 Overcollateralization (1) Current 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % Limit 117.87 % 118.76 % 118.76 % 119.85 % 120.21 % 121.51 % 123.03 % Pass / Fail Pass Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 342.37 % 273.97 % 358.56 % 312.29 % 258.32 % 224.24 % 240.78 % 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. Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows: Determination (1) CLO 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 April 2022 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % January 2022 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % — October 2021 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % — — July 2021 118.87 % 119.76 % 119.76 % 120.85 % — — — April 2021 118.87 % 119.76 % 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. The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other. |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Loss-Sharing Obligations | |
Allowance for Loss-Sharing Obligations | Note 10 — Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Three Months Ended March 31, 2022 2021 Beginning balance $ 56,064 $ 64,303 Provisions for loss sharing 133 1,748 Provisions reversal for loan repayments (795) (96) Recoveries (charge-offs), net (230) (62) Ending balance $ 55,172 $ 65,893 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 both March 31, 2022 and 2021, guarantee obligations of $34.4 million 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 March 31, 2022 and December 31, 2021, we had outstanding advances of $0.3 million and less than $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations. At March 31, 2022 and December 31, 2021, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $20.8 million and $21.7 million, respectively, and represented 0.11%, for both periods, of the Fannie Mae servicing portfolio. At March 31, 2022 and December 31, 2021, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.53 billion and $3.60 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 | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 11 — 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 gain (loss) on derivative instruments, net in the consolidated statements of income. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. During the three months ended March 31, 2022 and 2021, we recorded net losses of $2.5 million and $8.7 million, respectively, from changes in the fair value of these derivatives and $15.3 million and $36.9 million, respectively, of income from MSRs. The gains and losses are recorded in gain (loss) on derivative instruments, net. See Note 12 for details. Interest Rate and Credit Default Swaps (“Swaps”). During the three months ended March 31, 2022, we recorded realized and unrealized gains of $18.0 million and $2.0 million, respectively, to our Agency Business related to our Swaps. During the three months ended March 31, 2021, we recorded realized and unrealized gains of $2.9 million and $2.6 million, respectively, to our Agency Business related to our Swaps. The realized and unrealized gains and losses are recorded in gain (loss) on derivative instruments, net. A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): March 31, 2022 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Rate lock commitments 11 $ 147,873 Other assets/other liabilities $ 1,355 $ (4,029) Forward sale commitments 43 378,176 Other assets/other liabilities 4,463 (3,061) Swaps 793 79,300 — — $ 605,349 $ 5,818 $ (7,090) December 31, 2021 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) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value | |
Fair Value | Note 12 — 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): March 31, 2022 December 31, 2021 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 14,169,796 $ 13,978,283 $ 14,194,981 $ 12,158,995 $ 11,981,048 $ 12,181,194 Loans held-for-sale, net 332,573 336,959 342,963 1,077,239 1,093,609 1,117,085 Capitalized mortgage servicing rights, net n/a 422,036 489,408 n/a 422,734 477,323 Securities held-to-maturity, net 245,070 161,696 175,012 210,728 140,484 149,911 Derivative financial instruments 287,251 5,818 5,818 280,654 1,665 1,665 Financial liabilities: Credit and repurchase facilities $ 4,315,388 $ 4,302,819 $ 4,305,364 $ 4,493,699 $ 4,481,579 $ 4,484,107 Collateralized loan obligations 7,136,517 7,099,770 7,081,872 5,924,705 5,892,810 5,914,453 Senior unsecured notes 1,295,750 1,281,489 1,256,378 1,295,750 1,280,545 1,301,708 Convertible senior unsecured notes, net 264,000 262,483 276,786 264,000 259,385 294,690 Junior subordinated notes 154,336 142,570 102,271 154,336 142,382 101,698 Derivative financial instruments 238,798 7,090 7,090 301,816 1,482 1,482 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. 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 March 31, 2022 (in thousands): Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 5,818 $ 5,818 $ — $ 4,463 $ 1,355 Financial liabilities: Derivative financial instruments $ 7,090 $ 7,090 $ — $ 7,090 $ — 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, are determined using the following input levels as of March 31, 2022 (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) $ 62,176 $ 62,176 $ — $ — $ 62,176 (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 $149.1 million at March 31, 2022. Loan impairment assessments. Quantitative information about Level 3 fair value measurements at March 31, 2022 is as follows ($ in thousands): Fair Value Valuation 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 11,715 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Discount rate 11.00 % Office 461 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 1,355 Discounted cash flows W/A discount rate 9.63 % 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 Three Months Ended March 31, 2022 2021 Derivative assets and liabilities, net Beginning balance $ 295 $ 1,967 Settlements (13,683) (37,026) Realized gains recorded in earnings 13,388 35,059 Unrealized gains recorded in earnings 1,355 1,439 Ending balance $ 1,355 $ 1,439 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 March 31, 2022 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 147,873 $ 1,355 $ (3,830) $ (2,475) Forward sale commitments 378,176 — 3,830 3,830 Loans held-for-sale, net (1) 332,573 6,666 — 6,666 Total $ 8,021 $ — $ 8,021 (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 value of these assets and liabilities are determined using the following input levels as of March 31, 2022 (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 $ 13,978,283 $ 14,194,981 $ — $ — $ 14,194,981 Loans held-for-sale, net 336,959 342,963 — 336,297 6,666 Capitalized mortgage servicing rights, net 422,036 489,408 — — 489,408 Securities held-to-maturity, net 161,696 175,012 — — 175,012 Financial liabilities: Credit and repurchase facilities $ 4,302,819 $ 4,305,364 $ — $ 301,800 $ 4,003,564 Collateralized loan obligations 7,099,770 7,081,872 — — 7,081,872 Senior unsecured notes 1,281,489 1,256,378 1,256,378 — — Convertible senior unsecured notes, net 262,483 276,786 — 276,786 — Junior subordinated notes 142,570 102,271 — — 102,271 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Impact of COVID-19. Agency Business Commitments. As of March 31, 2022, we were required to maintain at least $18.7 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 March 31, 2022, we met the restricted liquidity requirement with a $45.0 million letter of credit and $18.7 million of cash collateral. As of March 31, 2022, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $43.8 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 March 31, 2022, 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 not subject to capital requirements on a quarterly basis for Ginnie Mae and FHA, as requirements for these investors are only required on an annual basis. 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 11 and Note 12. Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2022 (nine months ending December 31, 2022) $ 2,208,400 $ 6,283 $ 2,214,683 2023 2,316,693 8,350 2,325,043 2024 3,205,162 8,092 3,213,254 2025 1,358,080 8,144 1,366,224 2026 3,434,470 8,292 3,442,762 2027 279,236 6,841 286,077 Thereafter 363,950 23,373 387,323 Total $ 13,165,991 $ 69,375 $ 13,235,366 During the three months ended March 31, 2022 and 2021, we recorded lease expense of $2.4 million and $2.3 million, respectively. Unfunded Commitments. 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, Arbor Commercial Mortgage, LLC (“ACM”), and ABT-ESI LLC, an entity in which we have a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. The Trust also alleges that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment (“Fiduciary Duty Claims”) and name a director of ours, and a former general counsel of ACM, each of whom had served on the Board of Directors of ESI for a period of time. We are defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors’ bankruptcy filing. In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, 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, (1) consolidate the lawsuits into one lawsuit, (2) 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 (3) 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. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities | |
Variable Interest Entities | Note 14 — 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): March 31, 2022 December 31, 2021 Assets: Restricted cash $ 496,913 $ 466,523 Loans and investments, net 8,115,509 6,616,809 Other assets 66,850 61,474 Total assets $ 8,679,272 $ 7,144,806 Liabilities: Collateralized loan obligations $ 7,099,770 $ 5,892,810 Other liabilities 8,090 9,813 Total liabilities $ 7,107,860 $ 5,902,623 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 9 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 March 31, 2022 is as follows (in thousands): Type Carrying Amount (1) Loans $ 468,136 APL certificates 122,851 B Piece bonds 40,888 Equity investments 24,877 Agency interest only strips 449 Total $ 657,201 (1) Represents the carrying amount of loans and investments before reserves. At March 31, 2022, $129.8 million of loans to VIEs had corresponding specific loan loss reserves of $79.4 million. The maximum loss exposure as of March 31, 2022 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $4.58 billion at March 31, 2022. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity | |
Equity | Note 15 — Equity Preferred Stock. Common Stock. During the first quarter of 2022, we sold 750,750 shares of our common stock for net proceeds of $13.9 million through an “At-The-Market” equity offering sales agreement. Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of ACM in 2016 (the “Acquisition”). Each of these OP Units are paired with Distributions. Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 16, 2022 $ 0.37 January 3, 2022 $ 0.3984375 $ 0.390625 $ 0.46875 Common Stock Preferred Stock – On April 1, 2022, the Board of Directors declared cash dividends of preferred Deferred Compensation. million will vest in the first quarter of 2026. We also issued During the first quarter of 2022, 381,503 shares of performance-based restricted stock units previously granted to our chief executive officer fully vested and were net settled for 186,772 common shares. During the first quarter of 2022, we withheld 127,987 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested. Earnings Per Share (“EPS”). 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: Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 64,057 $ 64,057 $ 69,479 $ 69,479 Net income attributable to noncontrolling interest (2) — 6,816 — 9,743 Interest expense on convertible notes (3) — 3,995 — — Net income attributable to common stockholders and noncontrolling interest $ 64,057 $ 74,868 $ 69,479 $ 79,222 Weighted average shares outstanding 153,420,238 153,420,238 125,235,405 125,235,405 Dilutive effect of OP Units (2) — 16,325,095 — 17,560,633 Dilutive effect of convertible notes (3) — 15,111,154 — 249,850 Dilutive effect of restricted stock units (4) — 574,917 — 912,545 Weighted average shares outstanding 153,420,238 185,431,404 125,235,405 143,958,433 Net income per common share (1) $ 0.42 $ 0.40 $ 0.55 $ 0.55 (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) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior unsecured notes impacted diluted earnings per share if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. See Note 2 for details (4) Our chief executive officer was granted restricted stock units during 2020, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 16 — Income Taxes As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT-taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. The Agency Business is operated through 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. In the three months ended March 31, 2022 and 2021, we recorded a tax provision of $8.2 million and $12.5 million, respectively. The tax provision recorded in the three months ended March 31, 2022 consisted of a current tax provision of $9.9 million and a deferred tax benefit of $1.7 million. The tax provision recorded in the three months ended March 31, 2021 consisted of a current tax provision of $8.0 million and a deferred tax provision of $4.5 million. Current and deferred taxes are primarily recorded on the portion of earnings (losses) recognized by us with respect to our interest in the TRS’s. Deferred income tax assets and liabilities are calculated based on temporary differences between our U.S. GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Agreements and Transactions with Related Parties | |
Agreements and Transactions with Related Parties | Note 17 — Agreements and Transactions with Related Parties Support Agreement and Employee Secondment Agreement. Other Related Party Transactions. Due to related party was $12.8 million and $26.6 million at March 31, 2022 and December 31, 2021, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions. In February 2022, we committed to fund a $39.4 million bridge loan (none of which was funded at March 31, 2022) 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 2.25% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 4.00% with a LIBOR floor of 0.25% and matures in March 2025. 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 March 31, 2022, we have no outstanding borrowings under the promissory note. 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 $0.7 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively. In 2020, we committed to fund a $32.5 million bridge loan ($4.0 million was funded at March 31, 2022) 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%, the preferred equity investment has a 12.0%fixed rate, and both loans mature in October 2023. Interest income recorded from these loans was $0.2 million and $0.1 million for the three months ended March 31, 2022 and 2021, 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 ($3.5 million was funded at March 31, 2022) 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 12.0% fixed rate and matures in April 2023. Interest income recorded from these loans was $0.3 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively. 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 3.1% fixed rate and the mezzanine loan bears interest at a 9.0% fixed rate 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 the mezzanine loan was $0.1 million for both the three months ended March 31, 2022 and 2021. 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 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 the three months ended March 31, 2022 and 2021, we reimbursed the aircraft owner $0.2 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 ($25.2 million was funded at March 31, 2022) for an 18% interest in AMAC III. During both the three months ended March 31, 2022 and 2021 the loss recorded from this investment was de minimis. In 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower with which we have an outstanding $34.0 million bridge loan. In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property. Also in 2020, the $34.0 million bridge loan was refinanced with a $35.4 million bridge loan, which bears interest at a rate of LIBOR plus 3.5% and matures in August 2022. We also originated a $15.6 million Private Label loan in 2019 to a borrower which is 100% owned by AMAC III, which bears interest at a 3.735% fixed rate and matures in January 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.3 million for both the three months ended March 31, 2022 and 2021. 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 $0.3 million for both the three months ended March 31, 2022 and 2021. 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 $0.1 million for the three months ended March 31, 2021. In 2017, we originated two bridge loans totaling $28.0 million on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 45% of the borrowing entity. The loans had an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and were scheduled to mature in 2020. The borrower refinanced these loans with a $31.1 million bridge loan we originated in 2019 with an interest rate of LIBOR plus 4.0%, a LIBOR floor of 1.80% and a maturity date in October 2021, which was extended to October 2022. Interest income recorded from this loan was $0.5 million for both the three months ended March 31, 2022 and 2021. 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) which owns a 17.6% interest in the borrowing entity. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 5% of the original UPB. Servicing revenue recorded from this loan was less than $0.1 million for both the three months ended March 31, 2022 and 2021. 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 March 31, 2022. 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 both the three months ended March 31, 2022 and 2021. 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 2019. In 2017, a $6.8 million loan on one property paid off in full and in 2018 four additional loans totaling $28.3 million paid off in full. In 2019, $10.9 million of the $12.9 million remaining bridge loan paid off, with the $2.0 million remaining UPB converting to a mezzanine loan with a fixed interest rate of 10.0% and a January 2024 maturity. Interest income recorded from the mezzanine loan was $0.1 million for both the three months ended March 31, 2022 and 2021. 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. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. We recorded income from this investment of $5.0 million and $22.5 million in the three months ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022 and 2021, we also received cash distributions totaling $7.5 million and $13.1 million from this investment, respectively. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In 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 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which bears interest at a 3.3% fixed rate and matures in March 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. 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. 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 March 31, 2022, this debt had an aggregate outstanding balance of $610.8 million and is scheduled to mature through 2029. Several of our executives, including our chief financial officer, senior counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. At March 31, 2022, ACM holds 2,535,870 shares of our common stock and 10,665,530 OP Units, which represents 7.5% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Segment Information | Note 18 — Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ 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. Three Months Ended March 31, 2022 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 156,260 $ 10,438 $ — $ 166,698 Interest expense 78,202 4,357 — 82,559 Net interest income 78,058 6,081 — 84,139 Other revenue: Gain on sales, including fee-based services, net — 1,656 — 1,656 Mortgage servicing rights — 15,312 — 15,312 Servicing revenue — 36,026 — 36,026 Amortization of MSRs — (14,972) — (14,972) Property operating income 295 — — 295 Gain on derivative instruments, net — 17,386 — 17,386 Other income, net 3,196 4 — 3,200 Total other revenue 3,491 55,412 — 58,903 Other expenses: Employee compensation and benefits 15,487 26,538 — 42,025 Selling and administrative 7,409 7,139 — 14,548 Property operating expenses 535 — — 535 Depreciation and amortization 810 1,173 — 1,983 Provision for loss sharing (net of recoveries) — (662) — (662) Provision for credit losses (net of recoveries) 2,069 289 — 2,358 Total other expenses 26,310 34,477 — 60,787 Income before extinguishment of debt, income from equity affiliates 55,239 27,016 — 82,255 Loss on extinguishment of debt (1,350) — — (1,350) Income from equity affiliates 7,212 — — 7,212 Provision for income taxes (1,432) (6,756) — (8,188) Net income 59,669 20,260 — 79,929 Preferred stock dividends 9,056 — — 9,056 Net income attributable to noncontrolling interest — — 6,816 6,816 Net income attributable to common stockholders $ 50,613 $ 20,260 $ (6,816) $ 64,057 Three Months Ended March 31, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 83,210 $ 7,934 $ — $ 91,144 Interest expense 38,224 3,960 — 42,184 Net interest income 44,986 3,974 — 48,960 Other revenue: Gain on sales, including fee-based services, net — 28,867 — 28,867 Mortgage servicing rights — 36,936 — 36,936 Servicing revenue — 29,740 — 29,740 Amortization of MSRs — (14,204) — (14,204) Loss on derivative instruments, net — (3,220) — (3,220) Other income, net 681 — — 681 Total other revenue 681 78,119 — 78,800 Other expenses: Employee compensation and benefits 11,577 31,397 — 42,974 Selling and administrative 4,513 6,305 — 10,818 Property operating expenses 143 — — 143 Depreciation and amortization 582 1,173 — 1,755 Provision for loss sharing (net of recoveries) — 1,652 — 1,652 Provision for credit losses (net of recoveries) (1,029) (46) — (1,075) Total other expenses 15,786 40,481 — 56,267 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 29,881 41,612 — 71,493 Loss on extinguishment of debt (1,370) — — (1,370) Gain on real estate — 1,228 — 1,228 Income from equity affiliates 22,251 — — 22,251 Provision for income taxes (4,983) (7,509) — (12,492) Net income 45,779 35,331 — 81,110 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 9,743 9,743 Net income attributable to common stockholders $ 43,891 $ 35,331 $ (9,743) $ 69,479 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. March 31, 2022 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 90,106 $ 260,708 $ 350,814 Restricted cash 498,412 18,678 517,090 Loans and investments, net 13,978,283 — 13,978,283 Loans held-for-sale, net — 336,959 336,959 Capitalized mortgage servicing rights, net — 422,036 422,036 Securities held-to-maturity, net — 161,696 161,696 Investments in equity affiliates 96,836 — 96,836 Goodwill and other intangible assets 12,500 87,087 99,587 Other assets and due from related party 282,065 63,540 345,605 Total assets $ 14,958,202 $ 1,350,704 $ 16,308,906 Liabilities: Debt obligations $ 12,787,332 $ 301,799 $ 13,089,131 Allowance for loss-sharing obligations — 55,172 55,172 Other liabilities and due to related parties 268,454 124,101 392,555 Total liabilities $ 13,055,786 $ 481,072 $ 13,536,858 December 31, 2021 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 Three Months Ended March 31, 2022 2021 Origination Data: Structured Business Bridge loans (1) $ 2,820,716 $ 1,005,688 Mezzanine loans 8,139 56,000 SFR - Permanent loans — 26,238 Total new loan originations $ 2,828,855 $ 1,087,926 (1) Bridge loans in 2022 and 2021 include 35 and 18 SFR loans with a UPB of $133.4 million and $43.3 million, respectively. During 2022 and 2021, we committed to fund SFR loans totaling $83.3 million and $98.4 million, respectively. Loan payoffs / paydowns $ 666,551 $ 233,028 Agency Business Origination Volumes by Investor: Fannie Mae $ 449,680 $ 1,063,983 Freddie Mac 299,072 114,717 Private Label 72,896 152,454 FHA 11,990 66,480 SFR - Fixed Rate 4,871 — Total $ 838,509 $ 1,397,634 Total loan commitment volume $ 975,132 $ 1,460,135 Loan Sales Data: Agency Business Fannie Mae $ 666,544 $ 1,437,366 Private Label 489,269 — Freddie Mac 359,086 274,824 FHA 71,816 66,403 SFR - Fixed Rate — 63,298 Total $ 1,586,715 $ 1,841,891 Sales margin (fee-based services as a % of loan sales) (1) 1.18 % 1.57 % MSR rate (MSR income as a % of loan commitments) 1.57 % 2.53 % (1) Includes $17.1 million of gains recognized on our Swaps related to the Private Label loans sold in the three months ended March 31, 2022, which is included as a component of gain (loss) on derivative instruments, net in the consolidated statements of income. March 31, 2022 Wtd. Avg. Servicing Wtd. Avg. Life of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio UPB (basis points) (years) Fannie Mae $ 18,781,611 53.4 8.1 Freddie Mac 4,792,764 26.7 9.3 Private Label 2,200,206 20.0 8.4 FHA 999,446 15.3 20.9 SFR - Fixed Rate 190,590 20.0 6.4 Total $ 26,964,617 44.3 8.8 December 31, 2021 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 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. 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. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2021 Annual Report. |
Principles of Consolidation | Principles of Consolidation These 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 14. 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. Since 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 March 31, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 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 ("ASU 2020-06"). 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 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 amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the first quarter of 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. First quarter of 2023, with early adoption permitted We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2021 Annual Report for a description of our significant accounting policies. Except for the adoption of ASU 2020-06 described above, there have been no significant changes to our significant accounting policies since December 31, 2021. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation and Significant Accounting Policies | |
Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Description Adoption Date Effect on Financial Statements In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 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 ("ASU 2020-06"). 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 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 amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the first quarter of 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. First quarter of 2023, with early adoption permitted We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements. |
Loans and Investments (Tables)
Loans and Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Investments | |
Schedule of Structured Business loan and investment portfolio | Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar March 31, 2022 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 13,756,948 97 % 624 4.32 % 24.0 0 % 76 % Mezzanine loans 228,687 2 % 41 7.58 % 54.8 34 % 82 % Preferred equity investments 147,799 1 % 9 5.28 % 37.2 58 % 86 % Other loans (5) 36,362 <1 % 3 4.72 % 41.7 0 % 66 % 14,169,796 100 % 677 4.38 % 24.7 1 % 76 % Allowance for credit losses (116,382) Unearned revenue (75,131) Loans and investments, net $ 13,978,283 December 31, 2021 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 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“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 additional rate of interest “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) At March 31, 2022 and December 31, 2021, bridge loans included 154 and 120, respectively, of SFR loans with a total gross loan commitment of $934.4 million and $804.6 million, respectively, of which $521.3 million and $408.2 million, respectively, was funded. (5) At both March 31, 2022 and December 31, 2021, other loans included 2 variable rate SFR permanent loans. |
Summary of the loan portfolio's internal risk ratings and LTV ratios by asset class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of March 31, 2022 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2022 2021 2020 2019 2018 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 1,503,537 $ 5,251,052 $ 475,716 $ 35,332 $ — $ 49,100 $ 7,314,737 Pass/Watch 865,188 2,438,626 384,715 181,379 99,250 350 3,969,508 Special Mention 132,660 748,587 309,846 351,985 64,200 32,500 1,639,778 Substandard — 7,400 18,582 32,370 — 8,250 66,602 Total Multifamily $ 2,501,385 $ 8,445,665 $ 1,188,859 $ 601,066 $ 163,450 $ 90,200 $ 12,990,625 1 % 77 % Single-Family Rental: Percentage of portfolio 92 % Pass $ — $ 62,350 $ 18,324 $ — $ — $ — $ 80,674 Pass/Watch 79,125 225,390 17,359 — — — 321,874 Special Mention 18,301 46,089 72,037 18,661 — — 155,088 Total Single-Family Rental $ 97,426 $ 333,829 $ 107,720 $ 18,661 $ — $ — $ 557,636 0 % 65 % Land: Percentage of portfolio 4 % Special Mention $ — $ — $ 8,100 $ — $ — $ — $ 8,100 Substandard — — 71,018 19,524 — 147,903 238,445 Total Land $ — $ — $ 79,118 $ 19,524 $ — $ 147,903 $ 246,545 0 % 96 % Healthcare: Percentage of portfolio 2 % Pass $ — $ — $ — $ — $ 25,426 $ — $ 25,426 Pass/Watch — — — 14,558 — — 14,558 Special Mention — — — 51,069 — 39,650 90,719 Total Healthcare $ — $ — $ — $ 65,627 $ 25,426 $ 39,650 $ 130,703 0 % 73 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ 35,410 $ — $ 43,541 $ 1,962 $ 80,913 Total Office $ — $ — $ 35,410 $ — $ 43,541 $ 1,962 $ 80,913 0 % 85 % Student Housing: Percentage of portfolio 1 % Pass $ — $ 25,700 $ — $ — $ — $ — $ 25,700 Special Mention — — — 31,050 — — 31,050 Substandard — — 21,500 — — — 21,500 Total Student Housing $ — $ 25,700 $ 21,500 $ 31,050 $ — $ — $ 78,250 21 % 73 % Hotel: Percentage of portfolio < 1 % Pass/Watch $ — $ — $ 2,799 $ — $ — $ — $ 2,799 Special Mention — — — 41,000 — — 41,000 Total Hotel $ — $ — $ 2,799 $ 41,000 $ — $ — $ 43,799 0 % 67 % 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 % 71 % Other: Percentage of portfolio < 1 % Special Mention $ — $ — $ — $ — $ 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 $ 2,598,811 $ 8,805,194 $ 1,435,406 $ 780,928 $ 264,597 $ 284,860 $ 14,169,796 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): Three Months Ended March 31, 2022 Land Multifamily Office Retail Student Housing Hotel Healthcare Other Total Allowance for credit losses: Beginning balance $ 77,970 $ 18,707 $ 8,073 $ 5,819 $ 636 $ 8 $ 8 $ 2,020 $ 113,241 Provision for credit losses (net of recoveries) (30) 3,377 12 — (312) (4) (3) 101 3,141 Ending balance $ 77,940 $ 22,084 $ 8,085 $ 5,819 $ 324 $ 4 $ 5 $ 2,121 $ 116,382 Three Months Ended March 31, 2021 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) (54) (6,439) 6,205 (13) (580) (5) (8) (135) (1,029) Ending balance $ 78,096 $ 30,029 $ 8,051 $ 13,848 $ 3,498 $ 7,754 $ 3,872 $ 2,152 $ 147,300 |
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): March 31, 2022 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 17,532 5,817 14 % 78 % Office 1,962 1,962 1,500 0 % 49 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 159,922 $ 149,062 $ 86,886 3 % 95 % December 31, 2021 Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,291 5,817 14 % 77 % 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 % 95 % (1) Represents the UPB of eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both March 31, 2022 and December 31, 2021. |
Summary of our non-performing loans by asset class | A summary of our non-performing loans by asset class is as follows (in thousands): March 31, 2022 December 31, 2021 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 $ 21,500 $ — $ 21,500 Retail 3,445 — 3,445 920 — 920 Commercial 1,700 — 1,700 1,700 — 1,700 Total $ 26,645 $ — $ 26,645 $ 24,120 $ — $ 24,120 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans Held-for-Sale, Net | |
Summary of loans held-for-sale, net | March 31, 2022 December 31, 2021 Fannie Mae $ 176,004 $ 392,876 Private Label 88,906 507,918 Freddie Mac 52,547 112,561 SFR - Fixed Rate 13,365 9,352 FHA 1,751 54,532 332,573 1,077,239 Fair value of future MSR 6,666 19,318 Unearned discount (2,280) (2,948) Loans held-for-sale, net $ 336,959 $ 1,093,609 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Capitalized Mortgage Servicing Rights | |
Summary of capitalized MSR activity | A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Originated Acquired Total Originated Acquired Total Beginning balance $ 395,573 $ 27,161 $ 422,734 $ 336,466 $ 43,508 $ 379,974 Additions 26,971 — 26,971 45,038 — 45,038 Amortization (12,927) (2,045) (14,972) (11,079) (3,125) (14,204) Write-downs and payoffs (11,556) (1,141) (12,697) (2,997) (831) (3,828) Ending balance $ 398,061 $ 23,975 $ 422,036 $ 367,428 $ 39,552 $ 406,980 |
Schedule of expected amortization of capitalized MSRs recorded | The expected amortization of capitalized MSRs recorded as of March 31, 2022 is as follows (in thousands): Year Amortization 2022 (nine months ending 12/31/2022) $ 44,494 2023 56,820 2024 54,685 2025 52,071 2026 48,114 Thereafter 165,852 Total $ 422,036 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 18,781,611 70 % Texas 12 % Freddie Mac 4,792,764 18 % New York 12 % Private Label 2,200,206 8 % North Carolina 9 % FHA 999,446 4 % California 8 % SFR - Fixed Rate 190,590 < 1 % Georgia 6 % Total $ 26,964,617 100 % Florida 6 % New Jersey 6 % Other (2) 41 % Total 100 % December 31, 2021 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 % (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) | 3 Months Ended |
Mar. 31, 2022 | |
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 Fair Value Credit Losses March 31, 2022 APL certificates $ 192,791 $ 121,039 $ 10,060 $ 131,099 $ 1,812 B Piece bonds 52,279 40,657 3,256 43,913 231 Total $ 245,070 $ 161,696 $ 13,316 $ 175,012 $ 2,043 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 |
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): Three Months Ended March 31, 2022 APL B Piece Certificates Bonds Total Beginning balance $ 1,422 $ 331 $ 1,753 Provision for credit loss expense/(reversal) 390 (100) 290 Ending balance $ 1,812 $ 231 $ 2,043 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Equity Affiliates | |
Summary of the company's 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 March 31, 2022 December 31, 2021 March 31, 2022 Arbor Residential Investor LLC $ 63,351 $ 65,756 $ — AMAC Holdings III LLC 18,089 13,772 — Fifth Wall Ventures 10,207 5,409 — North Vermont Avenue 2,419 2,419 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 — — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 96,836 $ 89,676 $ 1,687 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Obligations | |
Schedule of senior unsecured notes | A summary of our senior unsecured notes is as follows (in thousands): Senior March 31, 2022 December 31, 2021 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 $ 177,132 5.00 % $ 180,000 $ 177,105 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 266,299 4.50 % 270,000 266,090 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 172,457 5.00 % 175,000 172,302 5.00 % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 70,305 8.00 % 70,750 70,202 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,598 4.50 % 275,000 272,477 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,104 4.75 % 110,000 109,018 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,231 5.75 % 90,000 89,135 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 124,363 5.63 % 125,000 124,216 5.63 % $ 1,295,750 $ 1,281,489 5.05 % $ 1,295,750 $ 1,280,545 5.05 % (1) At March 31, 2022 and December 31, 2021, the carrying value is net of deferred financing fees of $14.3 million and $15.2 million, respectively. (2) At both March 31, 2022 and December 31, 2021, the aggregate weighted average note rate, including certain fees and costs, was 5.34% . (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 March 31, 2022 $ 264,000 $ — $ 1,517 $ 262,483 $ — December 31, 2021 $ 264,000 $ 2,520 $ 2,095 $ 259,385 $ 8,684 |
Repurchase agreements and credit facilities | |
Debt Obligations | |
Schedule of borrowings | Borrowings under our credit and repurchase facilities are as follows ($ in thousands): March 31, 2022 December 31, 2021 Note Debt Collateral Debt Collateral Current Extended Rate Carrying Carrying Wtd. Avg. Carrying Carrying Maturity Maturity Type Value (1) Value Note Rate Value (1) Value Structured Business $2B joint repurchase facility Mar. 2024 Mar. 2025 V $ 1,510,696 $ 1,939,608 2.88 % $ 1,486,380 $ 1,877,930 $1B repurchase facility Mar. 2023 N/A V 862,441 1,190,252 2.39 % 675,415 937,880 $450M repurchase facility Mar. 2023 Mar. 2026 V 443,525 570,791 2.30 % 397,272 511,269 $399M repurchase facility (2) Dec. 2022 N/A V 330,665 410,473 2.58 % 241,450 289,956 $325M repurchase facility (3) Oct. 2022 Oct 2023 V 273,535 353,024 2.17 % 293,700 385,337 $225M credit facility Oct. 2023 Oct. 2024 V 48,051 76,702 2.89 % 27,826 42,270 $200M repurchase facility Mar. 2024 Mar. 2025 V — — — % — — $200M repurchase facility Jan. 2024 Jan. 2025 V 114,187 143,450 2.27 % — — $200M credit facility July 2022 N/A V 195,930 260,421 1.93 % 177,406 236,538 $153.9M loan specific credit facilities May 2022 to Oct. 2024 N/A V/F 153,766 214,642 3.32 % 153,727 214,300 $50M credit facility June 2022 N/A V 29,198 36,500 2.49 % 29,194 36,500 $30M working capital facility Apr. 2023 N/A V — — — % — — $25M credit facility Oct. 2022 N/A V — — — % 1,235 1,900 $25M credit facility June 2022 June 2023 V 8,932 11,402 2.74 % 10,218 14,773 $1M master security agreement Dec. 2022 N/A F 479 — 4.01 % 635 — Repurchase facility - securities (4) N/A N/A V 29,614 — 3.75 % 30,849 — Structured Business total $ 4,001,019 $ 5,207,265 2.59 % $ 3,525,307 $ 4,548,653 Agency Business $750M ASAP agreement N/A N/A V $ 18,711 $ 18,711 1.40 % $ 182,130 $ 182,140 $500M joint repurchase facility Mar. 2024 Mar. 2025 V 70,983 88,906 2.44 % 395,317 475,360 $500M repurchase facility Nov. 2022 N/A V 80,102 80,173 1.78 % 236,429 236,527 $200M credit facility Mar. 2023 N/A V 51,608 51,810 1.75 % 115,304 115,351 $150M credit facility July 2022 N/A V 69,895 69,952 1.75 % 16,544 16,657 $50M credit facility Sept. 2022 N/A V 9,657 9,657 1.75 % 9,295 9,295 $1M repurchase facility (2) Dec. 2022 N/A V 844 958 3.00 % 1,253 1,477 Agency Business total $ 301,800 $ 320,167 1.91 % $ 956,272 $ 1,036,807 Consolidated total $ 4,302,819 $ 5,527,432 2.54 % $ 4,481,579 $ 5,585,460 V = ; F = Fixed Note Rate (1) The debt carrying value for the Structured Business at March 31, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $9.1 million and $7.7 million, respectively. The debt carrying value for the Agency Business at March 31, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $3.5 million and $4.4 million, respectively. (2) A portion of this facility was used to finance a $ 1.0 million fixed rate SFR permanent loan reported through our Agency Business. (3) Committed amount reflects a $ 125.0 million temporary increase that was scheduled to expire in April 2022. In April 2022, we amended this facility increasing the total committed amount to $450.0 million. (4) These facilities are subject to margin call provisions associated with changes in interest spreads. At March 31, 2022 and December 31, 2021, these facilities were collateralized by B Piece bonds with a carrying value of $40.7 million and $47.6 million, respectively. |
Collateralized loan obligations | |
Debt Obligations | |
Schedule of borrowings | Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted March 31, 2022 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO 18 $ 1,652,812 $ 1,644,088 2.13 % $ 1,933,268 $ 1,923,348 $ 6,680 CLO 17 1,714,125 1,706,118 2.16 % 2,016,926 2,005,486 20,454 CLO 16 1,237,500 1,230,478 1.79 % 1,446,698 1,439,541 — CLO 15 674,412 670,166 1.85 % 791,506 788,600 11,026 CLO 14 655,475 651,356 1.81 % 691,852 689,470 77,576 CLO 13 668,000 665,306 1.89 % 728,345 726,569 58,696 CLO 12 534,193 532,258 1.98 % 543,602 542,496 85,257 Total CLOs $ 7,136,517 $ 7,099,770 1.99 % $ 8,152,197 $ 8,115,510 $ 259,689 December 31, 2021 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 (1) Debt carrying value is net of $36.7 million and $31.9 million of deferred financing fees at March 31, 2022 and December 31, 2021, respectively. (2) At March 31, 2022 and December 31, 2021, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 2.24% and 1.86%, respectively. (3) As of March 31, 2022 and December 31, 2021, there were 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 $237.2 million and $133.7 million at March 31, 2022 and December 31, 2021, respectively. |
Schedule of company's CLO compliance tests as of the most recent determination dates | Our CLO compliance tests as of the most recent determination dates in April 2022 are as follows: Cash Flow Triggers CLO 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 Overcollateralization (1) Current 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % Limit 117.87 % 118.76 % 118.76 % 119.85 % 120.21 % 121.51 % 123.03 % Pass / Fail Pass Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 342.37 % 273.97 % 358.56 % 312.29 % 258.32 % 224.24 % 240.78 % 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 12 CLO 13 CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 April 2022 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % January 2022 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % 122.51 % — October 2021 118.87 % 119.76 % 119.76 % 120.85 % 121.21 % — — July 2021 118.87 % 119.76 % 119.76 % 120.85 % — — — April 2021 118.87 % 119.76 % 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) | 3 Months Ended |
Mar. 31, 2022 | |
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): Three Months Ended March 31, 2022 2021 Beginning balance $ 56,064 $ 64,303 Provisions for loss sharing 133 1,748 Provisions reversal for loan repayments (795) (96) Recoveries (charge-offs), net (230) (62) Ending balance $ 55,172 $ 65,893 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Rate lock commitments 11 $ 147,873 Other assets/other liabilities $ 1,355 $ (4,029) Forward sale commitments 43 378,176 Other assets/other liabilities 4,463 (3,061) Swaps 793 79,300 — — $ 605,349 $ 5,818 $ (7,090) December 31, 2021 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) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value | |
Schedule of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | March 31, 2022 December 31, 2021 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 14,169,796 $ 13,978,283 $ 14,194,981 $ 12,158,995 $ 11,981,048 $ 12,181,194 Loans held-for-sale, net 332,573 336,959 342,963 1,077,239 1,093,609 1,117,085 Capitalized mortgage servicing rights, net n/a 422,036 489,408 n/a 422,734 477,323 Securities held-to-maturity, net 245,070 161,696 175,012 210,728 140,484 149,911 Derivative financial instruments 287,251 5,818 5,818 280,654 1,665 1,665 Financial liabilities: Credit and repurchase facilities $ 4,315,388 $ 4,302,819 $ 4,305,364 $ 4,493,699 $ 4,481,579 $ 4,484,107 Collateralized loan obligations 7,136,517 7,099,770 7,081,872 5,924,705 5,892,810 5,914,453 Senior unsecured notes 1,295,750 1,281,489 1,256,378 1,295,750 1,280,545 1,301,708 Convertible senior unsecured notes, net 264,000 262,483 276,786 264,000 259,385 294,690 Junior subordinated notes 154,336 142,570 102,271 154,336 142,382 101,698 Derivative financial instruments 238,798 7,090 7,090 301,816 1,482 1,482 |
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 $ 5,818 $ 5,818 $ — $ 4,463 $ 1,355 Financial liabilities: Derivative financial instruments $ 7,090 $ 7,090 $ — $ 7,090 $ — |
Schedule of certain financial assets and financial liabilities measured at fair value on a nonrecurring basis | Fair Value Measurements Using Fair Net Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 62,176 $ 62,176 $ — $ — $ 62,176 (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 $149.1 million at March 31, 2022. |
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at March 31, 2022 is as follows ($ in thousands): Fair Value Valuation 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 11,715 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Discount rate 11.00 % Office 461 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 1,355 Discounted cash flows W/A discount rate 9.63 % |
Schedule of roll forward of Level 3 derivative instruments | Fair Value Measurements Using Significant Unobservable Inputs for the Three Months Ended March 31, 2022 2021 Derivative assets and liabilities, net Beginning balance $ 295 $ 1,967 Settlements (13,683) (37,026) Realized gains recorded in earnings 13,388 35,059 Unrealized gains recorded in earnings 1,355 1,439 Ending balance $ 1,355 $ 1,439 |
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 March 31, 2022 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 147,873 $ 1,355 $ (3,830) $ (2,475) Forward sale commitments 378,176 — 3,830 3,830 Loans held-for-sale, net (1) 332,573 6,666 — 6,666 Total $ 8,021 $ — $ 8,021 (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 $ 13,978,283 $ 14,194,981 $ — $ — $ 14,194,981 Loans held-for-sale, net 336,959 342,963 — 336,297 6,666 Capitalized mortgage servicing rights, net 422,036 489,408 — — 489,408 Securities held-to-maturity, net 161,696 175,012 — — 175,012 Financial liabilities: Credit and repurchase facilities $ 4,302,819 $ 4,305,364 $ — $ 301,800 $ 4,003,564 Collateralized loan obligations 7,099,770 7,081,872 — — 7,081,872 Senior unsecured notes 1,281,489 1,256,378 1,256,378 — — Convertible senior unsecured notes, net 262,483 276,786 — 276,786 — Junior subordinated notes 142,570 102,271 — — 102,271 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Schedule of maturities of operating lease liabilities | Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2022 (nine months ending December 31, 2022) $ 2,208,400 $ 6,283 $ 2,214,683 2023 2,316,693 8,350 2,325,043 2024 3,205,162 8,092 3,213,254 2025 1,358,080 8,144 1,366,224 2026 3,434,470 8,292 3,442,762 2027 279,236 6,841 286,077 Thereafter 363,950 23,373 387,323 Total $ 13,165,991 $ 69,375 $ 13,235,366 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Assets: Restricted cash $ 496,913 $ 466,523 Loans and investments, net 8,115,509 6,616,809 Other assets 66,850 61,474 Total assets $ 8,679,272 $ 7,144,806 Liabilities: Collateralized loan obligations $ 7,099,770 $ 5,892,810 Other liabilities 8,090 9,813 Total liabilities $ 7,107,860 $ 5,902,623 |
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 March 31, 2022 is as follows (in thousands): Type Carrying Amount (1) Loans $ 468,136 APL certificates 122,851 B Piece bonds 40,888 Equity investments 24,877 Agency interest only strips 449 Total $ 657,201 (1) Represents the carrying amount of loans and investments before reserves. At March 31, 2022, $129.8 million of loans to VIEs had corresponding specific loan loss reserves of $79.4 million. The maximum loss exposure as of March 31, 2022 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity | |
Schedule of dividends declared by the Company (on a per share basis) | Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 16, 2022 $ 0.37 January 3, 2022 $ 0.3984375 $ 0.390625 $ 0.46875 |
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: Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 64,057 $ 64,057 $ 69,479 $ 69,479 Net income attributable to noncontrolling interest (2) — 6,816 — 9,743 Interest expense on convertible notes (3) — 3,995 — — Net income attributable to common stockholders and noncontrolling interest $ 64,057 $ 74,868 $ 69,479 $ 79,222 Weighted average shares outstanding 153,420,238 153,420,238 125,235,405 125,235,405 Dilutive effect of OP Units (2) — 16,325,095 — 17,560,633 Dilutive effect of convertible notes (3) — 15,111,154 — 249,850 Dilutive effect of restricted stock units (4) — 574,917 — 912,545 Weighted average shares outstanding 153,420,238 185,431,404 125,235,405 143,958,433 Net income per common share (1) $ 0.42 $ 0.40 $ 0.55 $ 0.55 (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) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior unsecured notes impacted diluted earnings per share if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. See Note 2 for details (4) Our chief executive officer was granted restricted stock units during 2020, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Schedule of statement of income and balance sheet by segment | Three Months Ended March 31, 2022 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 156,260 $ 10,438 $ — $ 166,698 Interest expense 78,202 4,357 — 82,559 Net interest income 78,058 6,081 — 84,139 Other revenue: Gain on sales, including fee-based services, net — 1,656 — 1,656 Mortgage servicing rights — 15,312 — 15,312 Servicing revenue — 36,026 — 36,026 Amortization of MSRs — (14,972) — (14,972) Property operating income 295 — — 295 Gain on derivative instruments, net — 17,386 — 17,386 Other income, net 3,196 4 — 3,200 Total other revenue 3,491 55,412 — 58,903 Other expenses: Employee compensation and benefits 15,487 26,538 — 42,025 Selling and administrative 7,409 7,139 — 14,548 Property operating expenses 535 — — 535 Depreciation and amortization 810 1,173 — 1,983 Provision for loss sharing (net of recoveries) — (662) — (662) Provision for credit losses (net of recoveries) 2,069 289 — 2,358 Total other expenses 26,310 34,477 — 60,787 Income before extinguishment of debt, income from equity affiliates 55,239 27,016 — 82,255 Loss on extinguishment of debt (1,350) — — (1,350) Income from equity affiliates 7,212 — — 7,212 Provision for income taxes (1,432) (6,756) — (8,188) Net income 59,669 20,260 — 79,929 Preferred stock dividends 9,056 — — 9,056 Net income attributable to noncontrolling interest — — 6,816 6,816 Net income attributable to common stockholders $ 50,613 $ 20,260 $ (6,816) $ 64,057 Three Months Ended March 31, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 83,210 $ 7,934 $ — $ 91,144 Interest expense 38,224 3,960 — 42,184 Net interest income 44,986 3,974 — 48,960 Other revenue: Gain on sales, including fee-based services, net — 28,867 — 28,867 Mortgage servicing rights — 36,936 — 36,936 Servicing revenue — 29,740 — 29,740 Amortization of MSRs — (14,204) — (14,204) Loss on derivative instruments, net — (3,220) — (3,220) Other income, net 681 — — 681 Total other revenue 681 78,119 — 78,800 Other expenses: Employee compensation and benefits 11,577 31,397 — 42,974 Selling and administrative 4,513 6,305 — 10,818 Property operating expenses 143 — — 143 Depreciation and amortization 582 1,173 — 1,755 Provision for loss sharing (net of recoveries) — 1,652 — 1,652 Provision for credit losses (net of recoveries) (1,029) (46) — (1,075) Total other expenses 15,786 40,481 — 56,267 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 29,881 41,612 — 71,493 Loss on extinguishment of debt (1,370) — — (1,370) Gain on real estate — 1,228 — 1,228 Income from equity affiliates 22,251 — — 22,251 Provision for income taxes (4,983) (7,509) — (12,492) Net income 45,779 35,331 — 81,110 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 9,743 9,743 Net income attributable to common stockholders $ 43,891 $ 35,331 $ (9,743) $ 69,479 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. March 31, 2022 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 90,106 $ 260,708 $ 350,814 Restricted cash 498,412 18,678 517,090 Loans and investments, net 13,978,283 — 13,978,283 Loans held-for-sale, net — 336,959 336,959 Capitalized mortgage servicing rights, net — 422,036 422,036 Securities held-to-maturity, net — 161,696 161,696 Investments in equity affiliates 96,836 — 96,836 Goodwill and other intangible assets 12,500 87,087 99,587 Other assets and due from related party 282,065 63,540 345,605 Total assets $ 14,958,202 $ 1,350,704 $ 16,308,906 Liabilities: Debt obligations $ 12,787,332 $ 301,799 $ 13,089,131 Allowance for loss-sharing obligations — 55,172 55,172 Other liabilities and due to related parties 268,454 124,101 392,555 Total liabilities $ 13,055,786 $ 481,072 $ 13,536,858 December 31, 2021 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 |
Schedule of origination data and loan sales data | Three Months Ended March 31, 2022 2021 Origination Data: Structured Business Bridge loans (1) $ 2,820,716 $ 1,005,688 Mezzanine loans 8,139 56,000 SFR - Permanent loans — 26,238 Total new loan originations $ 2,828,855 $ 1,087,926 (1) Bridge loans in 2022 and 2021 include 35 and 18 SFR loans with a UPB of $133.4 million and $43.3 million, respectively. During 2022 and 2021, we committed to fund SFR loans totaling $83.3 million and $98.4 million, respectively. Loan payoffs / paydowns $ 666,551 $ 233,028 Agency Business Origination Volumes by Investor: Fannie Mae $ 449,680 $ 1,063,983 Freddie Mac 299,072 114,717 Private Label 72,896 152,454 FHA 11,990 66,480 SFR - Fixed Rate 4,871 — Total $ 838,509 $ 1,397,634 Total loan commitment volume $ 975,132 $ 1,460,135 Loan Sales Data: Agency Business Fannie Mae $ 666,544 $ 1,437,366 Private Label 489,269 — Freddie Mac 359,086 274,824 FHA 71,816 66,403 SFR - Fixed Rate — 63,298 Total $ 1,586,715 $ 1,841,891 Sales margin (fee-based services as a % of loan sales) (1) 1.18 % 1.57 % MSR rate (MSR income as a % of loan commitments) 1.57 % 2.53 % (1) Includes $17.1 million of gains recognized on our Swaps related to the Private Label loans sold in the three months ended March 31, 2022, which is included as a component of gain (loss) on derivative instruments, net in the consolidated statements of income. |
Schedule of key servicing metrics for Agency Business | March 31, 2022 Wtd. Avg. Servicing Wtd. Avg. Life of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio UPB (basis points) (years) Fannie Mae $ 18,781,611 53.4 8.1 Freddie Mac 4,792,764 26.7 9.3 Private Label 2,200,206 20.0 8.4 FHA 999,446 15.3 20.9 SFR - Fixed Rate 190,590 20.0 6.4 Total $ 26,964,617 44.3 8.8 December 31, 2021 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 |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Description of Business | |
Number of business segments | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies | |||||
Retained Earnings (Accumulated Deficit) | $ 75,828 | $ 62,532 | |||
Real Estate Owned and Held-For-Sale | |||||
Aggregate increase to retained earnings | $ 75,828 | $ 62,532 | |||
Decrease in diluted earnings per share | $ 0.40 | $ 0.55 | |||
ASU 2020-20 | Cumulative-effect adjustment | |||||
Significant Accounting Policies | |||||
Retained Earnings (Accumulated Deficit) | $ 5,600 | ||||
Real Estate Owned and Held-For-Sale | |||||
Aggregate increase to retained earnings | 5,600 | ||||
Aggregate decrease to additional paid-in capital | $ 8,700 | ||||
Increase in Convertible debt | $ 2,500 | ||||
Decrease in diluted earnings per share | $ 0.02 | ||||
Dilutive effect | 15.1 | ||||
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 | Interest Rate Swaps | |||||
Real Estate Owned and Held-For-Sale | |||||
Derivative Swap Rate Period | 10 years |
Loans and Investments - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)loanborrower | Dec. 31, 2021USD ($)loanborrower | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Loans and Investments | ||||
Loans and investments, gross | $ 14,169,796 | $ 12,158,995 | ||
Allowance for credit losses | (116,382) | (113,241) | $ (147,300) | $ (148,329) |
Unearned revenue | (75,131) | (64,706) | ||
Loans and investments, net | $ 13,978,283 | $ 11,981,048 | ||
Percent of Total | 100.00% | 100.00% | ||
Loan Count | loan | 677 | 580 | ||
Wtd. Avg. Pay Rate (as a percent) | 4.38% | 4.26% | ||
Wtd. Avg. Remaining Months to Maturity | 24 months 21 days | 24 months 18 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | 1.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 76.00% | ||
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 | 41 | 31 | ||
Number of different borrowers | borrower | 5 | 5 | ||
Total assets | Credit risk concentration | Five Borrowers | ||||
Loans and Investments | ||||
Concentration risk, percentage | 11.00% | 11.00% | ||
Bridge Loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 13,756,948 | $ 11,750,710 | ||
Percent of Total | 97.00% | 97.00% | ||
Loan Count | loan | 624 | 528 | ||
Wtd. Avg. Pay Rate (as a percent) | 4.32% | 4.19% | ||
Wtd. Avg. Remaining Months to Maturity | 24 months | 23 months 24 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 | 154 | 120 | ||
Total loan commitment | $ 934,400 | $ 804,600 | ||
Mezzanine Loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 228,687 | $ 155,513 | ||
Percent of Total | 2.00% | 1.00% | ||
Loan Count | loan | 41 | 11 | ||
Wtd. Avg. Pay Rate (as a percent) | 7.58% | 5.57% | ||
Wtd. Avg. Remaining Months to Maturity | 54 months 24 days | 38 months | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 34.00% | 58.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 82.00% | 87.00% | ||
Preferred equity investments | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 147,799 | $ 223,378 | ||
Percent of Total | 1.00% | 2.00% | ||
Loan Count | loan | 9 | 39 | ||
Wtd. Avg. Pay Rate (as a percent) | 5.28% | 7.32% | ||
Wtd. Avg. Remaining Months to Maturity | 37 months 6 days | 56 months 9 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 58.00% | 34.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 86.00% | 84.00% | ||
Other loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 36,362 | $ 29,394 | ||
Percent of Total | 1.00% | 1.00% | ||
Loan Count | loan | 3 | 2 | ||
Wtd. Avg. Pay Rate (as a percent) | 4.72% | 4.63% | ||
Wtd. Avg. Remaining Months to Maturity | 41 months 21 days | 48 months 3 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 66.00% | 67.00% | ||
Other loans | Single-Family Rental | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 2 | 2 | ||
Unpaid principal balance, funded | $ 521,300 | $ 408,200 |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loans and Investments | ||
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | 1.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 76.00% |
Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2022 | $ 2,598,811 | |
Origination Year 2021 | 8,805,194 | |
Origination Year 2020 | 1,435,406 | |
Origination Year 2019 | 780,928 | |
Origination Year 2018 | 264,597 | |
Origination Year Prior | 284,860 | |
Amortized cost basis | $ 14,169,796 | |
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 | Texas | ||
Loans and Investments | ||
Concentration risk, percentage | 20.00% | 19.00% |
Credit risk concentration | Loans and investments portfolio | Florida | ||
Loans and Investments | ||
Concentration risk, percentage | 13.00% | 12.00% |
Credit risk concentration | Multifamily Portfolio | ||
Loans and Investments | ||
Origination Year 2022 | $ 2,501,385 | |
Origination Year 2021 | 8,445,665 | |
Origination Year 2020 | 1,188,859 | |
Origination Year 2019 | 601,066 | |
Origination Year 2018 | 163,450 | |
Origination Year Prior | 90,200 | |
Amortized cost basis | $ 12,990,625 | |
Percentage of Portfolio | 92.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77.00% | |
Credit risk concentration | Multifamily Portfolio | Pass | ||
Loans and Investments | ||
Origination Year 2022 | $ 1,503,537 | |
Origination Year 2021 | 5,251,052 | |
Origination Year 2020 | 475,716 | |
Origination Year 2019 | 35,332 | |
Origination Year Prior | 49,100 | |
Amortized cost basis | 7,314,737 | |
Credit risk concentration | Multifamily Portfolio | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2022 | 865,188 | |
Origination Year 2021 | 2,438,626 | |
Origination Year 2020 | 384,715 | |
Origination Year 2019 | 181,379 | |
Origination Year 2018 | 99,250 | |
Origination Year Prior | 350 | |
Amortized cost basis | 3,969,508 | |
Credit risk concentration | Multifamily Portfolio | Special Mention | ||
Loans and Investments | ||
Origination Year 2022 | 132,660 | |
Origination Year 2021 | 748,587 | |
Origination Year 2020 | 309,846 | |
Origination Year 2019 | 351,985 | |
Origination Year 2018 | 64,200 | |
Origination Year Prior | 32,500 | |
Amortized cost basis | 1,639,778 | |
Credit risk concentration | Multifamily Portfolio | Substandard | ||
Loans and Investments | ||
Origination Year 2021 | 7,400 | |
Origination Year 2020 | 18,582 | |
Origination Year 2019 | 32,370 | |
Origination Year Prior | 8,250 | |
Amortized cost basis | 66,602 | |
Credit risk concentration | Land | ||
Loans and Investments | ||
Origination Year 2020 | 79,118 | |
Origination Year 2019 | 19,524 | |
Origination Year Prior | 147,903 | |
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 2020 | $ 8,100 | |
Amortized cost basis | 8,100 | |
Credit risk concentration | Land | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 71,018 | |
Origination Year 2019 | 19,524 | |
Origination Year Prior | 147,903 | |
Amortized cost basis | 238,445 | |
Credit risk concentration | Healthcare | ||
Loans and Investments | ||
Origination Year 2019 | 65,627 | |
Origination Year 2018 | 25,426 | |
Origination Year Prior | 39,650 | |
Amortized cost basis | $ 130,703 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 73.00% | |
Credit risk concentration | Healthcare | Pass | ||
Loans and Investments | ||
Amortized cost basis | $ 25,426 | |
Credit risk concentration | Healthcare | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2019 | 14,558 | |
Amortized cost basis | 14,558 | |
Credit risk concentration | Healthcare | Special Mention | ||
Loans and Investments | ||
Origination Year 2019 | 51,069 | |
Origination Year 2018 | 25,426 | |
Origination Year Prior | 39,650 | |
Amortized cost basis | 90,719 | |
Credit risk concentration | Student Housing | ||
Loans and Investments | ||
Origination Year 2021 | 25,700 | |
Origination Year 2020 | 21,500 | |
Origination Year 2019 | 31,050 | |
Amortized cost basis | $ 78,250 | |
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 | |
Amortized cost basis | 25,700 | |
Credit risk concentration | Student Housing | Special Mention | ||
Loans and Investments | ||
Origination Year 2019 | 31,050 | |
Amortized cost basis | 31,050 | |
Credit risk concentration | Student Housing | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 21,500 | |
Amortized cost basis | 21,500 | |
Credit risk concentration | Office | ||
Loans and Investments | ||
Origination Year 2020 | 35,410 | |
Origination Year 2018 | 43,541 | |
Origination Year Prior | 1,962 | |
Amortized cost basis | $ 80,913 | |
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 2020 | $ 35,410 | |
Origination Year 2018 | 43,541 | |
Origination Year Prior | 1,962 | |
Amortized cost basis | 80,913 | |
Credit risk concentration | Retail | ||
Loans and Investments | ||
Origination Year 2019 | 4,000 | |
Origination Year 2018 | 18,600 | |
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) | 71.00% | |
Credit risk concentration | Retail | Pass | ||
Loans and Investments | ||
Origination Year 2019 | $ 4,000 | |
Amortized cost basis | 4,000 | |
Credit risk concentration | Retail | Special Mention | ||
Loans and Investments | ||
Origination Year 2018 | 18,600 | |
Amortized cost basis | 18,600 | |
Credit risk concentration | Retail | Substandard | ||
Loans and Investments | ||
Origination Year Prior | 3,445 | |
Amortized cost basis | 3,445 | |
Credit risk concentration | Single-Family Rental | ||
Loans and Investments | ||
Origination Year 2022 | 97,426 | |
Origination Year 2021 | 333,829 | |
Origination Year 2020 | 107,720 | |
Origination Year 2019 | 18,661 | |
Amortized cost basis | $ 557,636 | |
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 | $ 62,350 | |
Origination Year 2020 | 18,324 | |
Amortized cost basis | 80,674 | |
Credit risk concentration | Single-Family Rental | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2022 | 79,125 | |
Origination Year 2021 | 225,390 | |
Origination Year 2020 | 17,359 | |
Amortized cost basis | 321,874 | |
Credit risk concentration | Single-Family Rental | Special Mention | ||
Loans and Investments | ||
Origination Year 2022 | 18,301 | |
Origination Year 2021 | 46,089 | |
Origination Year 2020 | 72,037 | |
Origination Year 2019 | 18,661 | |
Amortized cost basis | 155,088 | |
Credit risk concentration | Hotel Portfolio | ||
Loans and Investments | ||
Origination Year 2020 | 2,799 | |
Origination Year 2019 | 41,000 | |
Amortized cost basis | $ 43,799 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 67.00% | |
Credit risk concentration | Hotel Portfolio | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2020 | $ 2,799 | |
Amortized cost basis | 2,799 | |
Credit risk concentration | Hotel Portfolio | Special Mention | ||
Loans and Investments | ||
Origination Year 2019 | 41,000 | |
Amortized cost basis | 41,000 | |
Credit risk concentration | Other Property | ||
Loans and Investments | ||
Origination Year 2018 | 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 2018 | $ 13,580 | |
Amortized cost basis | 13,580 | |
Credit risk concentration | Other Property | Doubtful | ||
Loans and Investments | ||
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 | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Changes in allowance for loan losses | |||
Allowance at beginning of period | $ 113,241 | $ 148,329 | |
Provision for credit losses (net of recoveries) | 3,141 | (1,029) | |
Allowance at end of period | 116,382 | 147,300 | |
Unfunded commitments related to structured loans and investments | 1,130,000 | ||
Accrued interest receivable related to loans | 65,100 | $ 58,300 | |
Land | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 77,970 | 78,150 | |
Provision for credit losses (net of recoveries) | (30) | (54) | |
Allowance at end of period | 77,940 | 78,096 | |
Multifamily Portfolio | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 18,707 | 36,468 | |
Provision for credit losses (net of recoveries) | 3,377 | (6,439) | |
Allowance at end of period | 22,084 | 30,029 | |
Retail | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 5,819 | 1,846 | |
Provision for credit losses (net of recoveries) | 6,205 | ||
Allowance at end of period | 5,819 | 8,051 | |
Office | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 8,073 | 13,861 | |
Provision for credit losses (net of recoveries) | 12 | (13) | |
Allowance at end of period | 8,085 | 13,848 | |
Healthcare | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 8 | 3,880 | |
Provision for credit losses (net of recoveries) | (3) | (8) | |
Allowance at end of period | 5 | 3,872 | |
Student Housing | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 636 | 4,078 | |
Provision for credit losses (net of recoveries) | (312) | (580) | |
Allowance at end of period | 324 | 3,498 | |
Hotel Portfolio | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 8 | 7,759 | |
Provision for credit losses (net of recoveries) | (4) | (5) | |
Allowance at end of period | 4 | 7,754 | |
Other Property | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | 2,020 | 2,287 | |
Provision for credit losses (net of recoveries) | 101 | (135) | |
Allowance at end of period | $ 2,121 | 2,152 | |
Bridge Loans | Hotel Portfolio | |||
Changes in allowance for loan losses | |||
Allowance at beginning of period | $ 7,500 |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Loans and Investments | ||
UPB | $ 159,922 | $ 159,940 |
Carrying Value | 149,062 | 148,839 |
Allowance for Credit Losses | $ 86,886 | $ 86,886 |
Wtd. Avg. First Dollar LTV Ratio | 3 | 3 |
Wtd. Avg. Last Dollar LTV Ratio | 95 | 95 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | 8 | 8 |
Land | ||
Loans and Investments | ||
UPB | $ 134,215 | $ 134,215 |
Carrying Value | 127,868 | 127,868 |
Allowance for Credit Losses | $ 77,869 | $ 77,869 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 99 | 99 |
Retail | ||
Loans and Investments | ||
UPB | $ 22,045 | $ 22,045 |
Carrying Value | 17,532 | 17,291 |
Allowance for Credit Losses | $ 5,817 | $ 5,817 |
Wtd. Avg. First Dollar LTV Ratio | 14 | 14 |
Wtd. Avg. Last Dollar LTV Ratio | 78 | 77 |
Office | ||
Loans and Investments | ||
UPB | $ 1,962 | $ 1,980 |
Carrying Value | 1,962 | 1,980 |
Allowance for Credit Losses | $ 1,500 | $ 1,500 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 49 | 51 |
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) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan | |
Non-performing loans by asset class | ||
Number of loans for which no provision for loan loss made | loan | 0 | 0 |
Number of loans | loan | 677 | 580 |
Amortized cost of loans on nonaccrual status | $ 0 | $ 0 |
UPB | 159,922 | 159,940 |
Financing Receivable, before Allowance for Credit Loss | $ 14,169,796 | $ 12,158,995 |
Non-performing loans | ||
Non-performing loans by asset class | ||
Number of loans | loan | 4 | 3 |
Carrying value of loans | $ 20,100 | $ 20,100 |
Loan loss reserves | 5,100 | 2,600 |
UPB | 26,645 | 24,120 |
Less Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 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 | 26,645 | 24,120 |
Student Housing | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 21,500 | 21,500 |
Student Housing | Less Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
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 | 21,500 |
Retail | ||
Non-performing loans by asset class | ||
UPB | 22,045 | 22,045 |
Retail | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 3,445 | 920 |
Retail | Less Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Retail | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Financing Receivable, before Allowance for Credit Loss | 3,445 | 920 |
Commercial | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | Less Than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
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 | 1,700 |
Office | ||
Non-performing loans by asset class | ||
UPB | $ 1,962 | $ 1,980 |
Loans and Investments - Charge-
Loans and Investments - Charge-offs and Recoveries Narratives (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Loans and Investments | ||||
Allowance for credit losses | $ 116,382 | $ 113,241 | $ 147,300 | $ 148,329 |
Six loans collateralized by a land development project | ||||
Loans and Investments | ||||
Unpaid principal balance on loans | $ 1,130,000 | 975,200 | ||
Six loans collateralized by a land development project | Maturity date of March 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 March 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 | 71,400 | ||
Hotel Portfolio | ||||
Loans and Investments | ||||
Allowance for credit losses | $ 4 | $ 8 | $ 7,754 | $ 7,759 |
Loans and Investments - Purchas
Loans and Investments - Purchased Credit Deterioration and Troubled Debt Restructurings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Mar. 31, 2022USD ($)itemloan | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)loanitem | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Purchase of loan | $ 2,656,874 | $ 1,055,354 | ||||
Allowance for credit losses | $ 116,382 | 147,300 | $ 113,241 | $ 148,329 | ||
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 | item | 2 | |||||
Other loans modification | item | 0 | 0 | ||||
Interest reserve | $ 103,300 | $ 87,400 | ||||
Number of loans covered under interest reserve | loan | 383 | 328 | ||||
Aggregate UPB covered under interest reserve | $ 6,430,000 | $ 5,750,000 | ||||
Hotel Portfolio | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Allowance for credit losses | 4 | 7,754 | 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 | $ 8,051 | 5,819 | $ 1,846 | ||
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 | 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% | |||||
Greater than 90 Days Past Due | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Loans past due 90 days or more still accruing interest | $ 0 | $ 0 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan | |
Loans Held-for-Sale, Net | ||
Loans held-for-sale | $ 332,573 | $ 1,077,239 |
Fair value of future MSR | 6,666 | 19,318 |
Unearned discount | (2,280) | (2,948) |
Loans held-for-sale, net | 336,959 | 1,093,609 |
Sale of loans held-for-sale excluding acquired loans | $ 1,590,000 | $ 1,840,000 |
Number of loans | loan | 677 | 580 |
Subordinate class of certificates retained | $ 245,070 | $ 210,728 |
Amortized cost of loans on nonaccrual status | 0 | 0 |
Held-to-maturity securities | ||
Loans Held-for-Sale, Net | ||
Subordinate class of certificates retained | 43,400 | |
APL certificates | ||
Loans Held-for-Sale, Net | ||
Subordinate class of certificates retained | 192,791 | 149,368 |
APL certificates | Held-to-maturity securities | ||
Loans Held-for-Sale, Net | ||
Subordinate class of certificates retained | 192,800 | |
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 | $ 176,004 | 392,876 |
Private Label | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | $ 88,906 | 507,918 |
Period of loans held for sale sold | 180 days | |
Sale of loans held-for-sale excluding acquired loans | $ 489,300 | |
Freddie Mac | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | 52,547 | 112,561 |
FHA | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | 1,751 | 54,532 |
SFR - Fixed Rate. | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | $ 13,365 | $ 9,352 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Capitalized Mortgage Servicing Rights | |||
Balance at beginning of the year | $ 422,734 | ||
Balance at end of the year | 422,036 | $ 422,734 | |
MSRs | |||
Capitalized Mortgage Servicing Rights | |||
Balance at beginning of the year | 422,734 | $ 379,974 | 379,974 |
Additions | 26,971 | 45,038 | |
Amortization | (14,972) | (14,204) | |
Write-downs and payoffs | (12,697) | (3,828) | |
Balance at end of the year | 422,036 | 406,980 | 422,734 |
Prepayment fees collected | 16,100 | 2,700 | |
Valuation allowance | 0 | $ 0 | |
Expected amortization of capitalized MSRs balances | |||
2022 (nine months ending 12/31/2022) | 44,494 | ||
2023 | 56,820 | ||
2024 | 54,685 | ||
2025 | 52,071 | ||
2026 | 48,114 | ||
Total | 422,036 | ||
Thereafter | $ 165,852 | ||
MSRs | Minimum | |||
Capitalized Mortgage Servicing Rights | |||
Percentage of MSRs discount rate | 8.00% | ||
MSRs | Maximum | |||
Capitalized Mortgage Servicing Rights | |||
Percentage of MSRs discount rate | 13.00% | ||
MSRs | Weighted average | |||
Capitalized Mortgage Servicing Rights | |||
Percentage of MSRs discount rate | 12.00% | ||
Estimated life remaining | 8 years 3 months 18 days | 8 years 6 months | |
Originated MSRs | |||
Capitalized Mortgage Servicing Rights | |||
Balance at beginning of the year | $ 395,573 | 336,466 | $ 336,466 |
Additions | 26,971 | 45,038 | |
Amortization | (12,927) | (11,079) | |
Write-downs and payoffs | (11,556) | (2,997) | |
Balance at end of the year | 398,061 | 367,428 | 395,573 |
Acquired MSRs | |||
Capitalized Mortgage Servicing Rights | |||
Balance at beginning of the year | 27,161 | 43,508 | 43,508 |
Additions | 0 | 0 | |
Amortization | (2,045) | (3,125) | |
Write-downs and payoffs | (1,141) | (831) | |
Balance at end of the year | $ 23,975 | $ 39,552 | $ 27,161 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)state | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)state | |
Mortgage Servicing | |||
Interest earned on total escrows | $ 800 | $ 1,200 | |
Fee-based servicing portfolio | |||
Mortgage Servicing | |||
Escrow Deposit | 2,110,000 | $ 1,990,000 | |
MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 26,964,617 | $ 26,959,389 | |
Weighted average servicing fee (as a percent) | 44.30% | 44.90% | |
MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 100.00% | 100.00% | |
Escrow Deposit | $ 631,500 | $ 682,500 | |
Texas | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 12.00% | 12.00% | |
New York | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 12.00% | 11.00% | |
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% | 8.00% | |
Florida | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 6.00% | 6.00% | |
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% | 6.00% | |
Other States | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 41.00% | 42.00% | |
Number of states accounted for more than 4% of UPB and related servicing revenues | state | 0 | 0 | |
Fannie Mae | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 18,781,611 | $ 19,127,397 | |
Fannie Mae | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 70.00% | 71.00% | |
Freddie Mac | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 4,792,764 | $ 4,943,905 | |
Freddie Mac | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 18.00% | 18.00% | |
Private Label | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 2,200,206 | $ 1,711,326 | |
Private Label | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 8.00% | 6.00% | |
FHA | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 999,446 | $ 985,063 | |
FHA | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 4.00% | 4.00% | |
SFR - Fixed Rate. | MSRs | |||
Mortgage Servicing | |||
Unpaid principal balance of loans serviced | $ 190,590 | $ 191,698 | |
SFR - Fixed Rate. | MSRs | Fee-based servicing portfolio | |||
Mortgage Servicing | |||
UPB Percentage of Total | 1.00% | 1.00% |
Securities Held-to-Maturity (De
Securities Held-to-Maturity (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($) | |
Held-to-Maturity | ||
Face Value | $ 245,070,000 | $ 210,728,000 |
Net Carrying Value | 161,696,000 | 140,484,000 |
Unrealized Gain | 13,316,000 | 9,427,000 |
Estimated Fair Value | 175,012,000 | 149,911,000 |
Allowance for Credit Losses | 2,043,000 | 1,753,000 |
Held-to-maturity securities | ||
Held-to-Maturity | ||
Face Value | 43,400,000 | |
B Piece bonds | ||
Held-to-Maturity | ||
Face Value | 52,279,000 | 61,360,000 |
Net Carrying Value | 40,657,000 | 47,615,000 |
Unrealized Gain | 3,256,000 | 4,420,000 |
Estimated Fair Value | 43,913,000 | 52,035,000 |
Allowance for Credit Losses | $ 231,000 | $ 331,000 |
Seven B Piece Bonds | Held-to-maturity securities | ||
Held-to-Maturity | ||
Bonds retained percentage | 49.00% | |
Number of B Piece bonds | item | 7 | |
Discounted value of bonds purchased | $ 74,700,000 | |
Remaining of B Piece bond sold to the third party at par | 51.00% | |
Estimated weighted average remaining maturity period | 6 years | |
Initial face value of bonds purchased | $ 106,200,000 | |
Agency B Piece Bonds | Held-to-maturity securities | ||
Held-to-Maturity | ||
Weighted average variable interest rate (as a percent) | 3.74% | 11.32% |
Weighted average effective interest rate (as a percent) | 11.79% | |
Held-to-maturity securities, estimated fiscal year | ||
Within one year | $ 9,500,000 | |
After one year through five years | 24,300,000 | |
After five years through ten years | 2,800,000 | |
After ten years | 15,700,000 | |
APL certificates | ||
Held-to-Maturity | ||
Face Value | 192,791,000 | $ 149,368,000 |
Net Carrying Value | 121,039,000 | 92,869,000 |
Unrealized Gain | 10,060,000 | 5,007,000 |
Estimated Fair Value | 131,099,000 | 97,876,000 |
Allowance for Credit Losses | 1,812,000 | $ 1,422,000 |
APL certificates | Held-to-maturity securities | ||
Held-to-Maturity | ||
Face Value | 192,800,000 | |
Net Carrying Value | $ 119,000,000 | |
Weighted average variable interest rate (as a percent) | 3.94% | |
Estimated weighted average remaining maturity period | 8 years 3 months 18 days | |
Weighted average fixed interest rate | 8.85% | 9.11% |
Held-to-maturity securities, estimated fiscal year | ||
After one year through five years | $ 6,800,000 | |
After five years through ten years | $ 186,000,000 | |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | $ 1,753 | |
Provision for credit loss expense/(reversal) | 290 | |
Allowance for credit loss, Ending balance | 2,043 | |
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) | 5,200 | $ 2,900 |
APL certificates | ||
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | 1,422 | |
Provision for credit loss expense/(reversal) | 390 | |
Allowance for credit loss, Ending balance | 1,812 | |
B Piece bonds | ||
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | 331 | |
Provision for credit loss expense/(reversal) | (100) | |
Allowance for credit loss, Ending balance | $ 231 |
Investments in Equity Affilia_3
Investments in Equity Affiliates - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 96,836 | $ 89,676 |
UPB of Loans to Equity Affiliates | 1,687 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 63,351 | 65,756 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 18,089 | 13,772 |
Fifth Wall Ventures | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 10,207 | 5,409 |
North Vermont Avenue | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 2,419 | 2,419 |
Lightstone Value Plus REIT L.P. | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 1,895 | 1,895 |
Docsumo Pte. Ltd. | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 450 | |
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 - All Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Investment in Equity Affiliates | |||
Income from equity affiliates | $ 7,212 | $ 22,251 | |
Indirect ownership percentage | 9.20% | ||
Arbor Residential Investor LLC | |||
Investment in Equity Affiliates | |||
Income from equity affiliates | $ 5,000 | 22,500 | |
Distribution received | 7,500 | $ 13,100 | |
Indirect ownership percentage | 12.30% | ||
AMAC Holdings III LLC | |||
Investment in Equity Affiliates | |||
Noncontrolling interest | 4,900 | ||
Payments to Acquire Equity Method Investments | 4,900 | ||
Fifth Wall Ventures | |||
Investment in Equity Affiliates | |||
Noncontrolling interest | 4,800 | ||
Payments to Acquire Equity Method Investments | 4,800 | ||
Equity Participation Interest | |||
Investment in Equity Affiliates | |||
Proceeds from sale | 2,600 | ||
Docsumo Pte. Ltd. | |||
Investment in Equity Affiliates | |||
Noncontrolling interest | 500 | ||
Payments to Acquire Equity Method Investments | $ 500 |
Debt Obligations - Credit and R
Debt Obligations - Credit and Repurchase Facilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Obligations | |||||
Collateral Carrying Value | $ 5,527,432 | $ 5,527,432 | $ 5,585,460 | ||
Maximum borrowing capacity | 200,000 | 200,000 | |||
Committed amount | 125,000 | ||||
Total committed amount | $ 450,000 | ||||
Utilization of credit facility | $ 50,000 | $ 67,000 | |||
Extension of maturity date (in years) | 1 year | 1 year | |||
Weighted Average Note Rate (as a percent) | 2.54% | 2.54% | |||
Debt Carrying Value | $ 4,302,819 | $ 4,302,819 | 4,481,579 | ||
Repurchase facility - securities (4) | B Piece bonds | |||||
Debt Obligations | |||||
Collateral Carrying Value | 40,700 | $ 40,700 | 47,600 | ||
$200 million repurchase facility. | SOFR | |||||
Debt Obligations | |||||
Decrease in interest rate (as a percent) | 2.55% | ||||
Structured Transaction Business | |||||
Debt Obligations | |||||
Collateral Carrying Value | 5,207,265 | $ 5,207,265 | 4,548,653 | ||
Unamortized deferred finance costs | $ 9,100 | $ 9,100 | $ 7,700 | ||
Weighted average note rate including certain fees and costs (as a percent) | 2.76% | 2.76% | 2.51% | ||
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) | 76.00% | 76.00% | 77.00% | ||
Weighted Average Note Rate (as a percent) | 2.59% | 2.59% | |||
Debt Carrying Value | $ 4,001,019 | $ 4,001,019 | $ 3,525,307 | ||
Structured Transaction Business | Minimum | SOFR | |||||
Debt Obligations | |||||
Variable rate, spread (as a percent) | 1.75% | ||||
Structured Transaction Business | Maximum | SOFR | |||||
Debt Obligations | |||||
Variable rate, spread (as a percent) | 3.50% | ||||
Structured Transaction Business | $2B joint repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 1,939,608 | 1,939,608 | 1,877,930 | ||
Maximum borrowing capacity | $ 2,000,000 | $ 2,000,000 | |||
Weighted Average Note Rate (as a percent) | 2.88% | 2.88% | |||
Debt Carrying Value | $ 1,510,696 | $ 1,510,696 | 1,486,380 | ||
Structured Transaction Business | $1B repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 1,190,252 | 1,190,252 | 937,880 | ||
Maximum borrowing capacity | $ 1,000,000 | $ 1,000,000 | |||
Weighted Average Note Rate (as a percent) | 2.39% | 2.39% | |||
Debt Carrying Value | $ 862,441 | $ 862,441 | 675,415 | ||
Structured Transaction Business | $450M repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 570,791 | 570,791 | 511,269 | ||
Maximum borrowing capacity | $ 450,000 | $ 450,000 | |||
Weighted Average Note Rate (as a percent) | 2.30% | 2.30% | |||
Debt Carrying Value | $ 443,525 | $ 443,525 | 397,272 | ||
Structured Transaction Business | 399 M repurchase facility (2) | |||||
Debt Obligations | |||||
Collateral Carrying Value | 410,473 | 410,473 | 289,956 | ||
Maximum borrowing capacity | $ 399,000 | $ 399,000 | |||
Weighted Average Note Rate (as a percent) | 2.58% | 2.58% | |||
Debt Carrying Value | $ 330,665 | $ 330,665 | 241,450 | ||
Structured Transaction Business | $325M repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 353,024 | 353,024 | 385,337 | ||
Maximum borrowing capacity | $ 325,000 | $ 325,000 | |||
Weighted Average Note Rate (as a percent) | 2.17% | 2.17% | |||
Debt Carrying Value | $ 273,535 | $ 273,535 | 293,700 | ||
Structured Transaction Business | $225M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 76,702 | 76,702 | 42,270 | ||
Maximum borrowing capacity | $ 225,000 | $ 225,000 | |||
Weighted Average Note Rate (as a percent) | 2.89% | 2.89% | |||
Debt Carrying Value | $ 48,051 | $ 48,051 | 27,826 | ||
Structured Transaction Business | $200M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 260,421 | 260,421 | 236,538 | ||
Maximum borrowing capacity | $ 200,000 | $ 200,000 | |||
Weighted Average Note Rate (as a percent) | 1.93% | 1.93% | |||
Debt Carrying Value | $ 195,930 | $ 195,930 | 177,406 | ||
Structured Transaction Business | $153.9M loan specific credit facilities | |||||
Debt Obligations | |||||
Collateral Carrying Value | 214,642 | 214,642 | 214,300 | ||
Maximum borrowing capacity | $ 153,900 | $ 153,900 | |||
Weighted Average Note Rate (as a percent) | 3.32% | 3.32% | |||
Debt Carrying Value | $ 153,766 | $ 153,766 | 153,727 | ||
Structured Transaction Business | $50M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 36,500 | $ 36,500 | 36,500 | ||
Weighted Average Note Rate (as a percent) | 2.49% | 2.49% | |||
Debt Carrying Value | $ 29,198 | $ 29,198 | 29,194 | ||
Structured Transaction Business | $25M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | 1,900 | ||||
Maximum borrowing capacity | 25,000 | 25,000 | |||
Debt Carrying Value | 1,235 | ||||
Structured Transaction Business | $25M credit facility. | |||||
Debt Obligations | |||||
Collateral Carrying Value | 11,402 | 11,402 | 14,773 | ||
Maximum borrowing capacity | $ 25,000 | $ 25,000 | |||
Weighted Average Note Rate (as a percent) | 2.74% | 2.74% | |||
Debt Carrying Value | $ 8,932 | $ 8,932 | 10,218 | ||
Structured Transaction Business | $1M master security agreement | |||||
Debt Obligations | |||||
Weighted Average Note Rate (as a percent) | 4.01% | 4.01% | |||
Debt Carrying Value | $ 479 | $ 479 | 635 | ||
Structured Transaction Business | Repurchase facility - securities (4) | |||||
Debt Obligations | |||||
Weighted Average Note Rate (as a percent) | 3.75% | 3.75% | |||
Debt Carrying Value | $ 29,614 | $ 29,614 | 30,849 | ||
Structured Transaction Business | $1M repurchase facility (2) | |||||
Debt Obligations | |||||
Maximum borrowing capacity | 1,000 | 1,000 | |||
Structured Transaction Business | $30M working capital facility unsecured | |||||
Debt Obligations | |||||
Maximum borrowing capacity | 30,000 | 30,000 | |||
Structured Transaction Business | $150 million repurchase facility | |||||
Debt Obligations | |||||
Maximum borrowing capacity | $ 150,000 | ||||
Structured Transaction Business | $200 million repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 143,450 | $ 143,450 | |||
Weighted Average Note Rate (as a percent) | 2.27% | 2.27% | |||
Debt Carrying Value | $ 114,187 | $ 114,187 | |||
Structured Transaction Business | $50 million credit facility - two | |||||
Debt Obligations | |||||
Maximum borrowing capacity | 50,000 | 50,000 | |||
Agency Business | |||||
Debt Obligations | |||||
Collateral Carrying Value | 320,167 | 320,167 | 1,036,807 | ||
Unamortized deferred finance costs | $ 3,500 | $ 3,500 | 4,400 | ||
Weighted Average Note Rate (as a percent) | 1.91% | 1.91% | |||
Debt Carrying Value | $ 301,800 | $ 301,800 | 956,272 | ||
Agency Business | $200M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 51,810 | $ 51,810 | 115,351 | ||
Weighted Average Note Rate (as a percent) | 1.75% | 1.75% | |||
Debt Carrying Value | $ 51,608 | $ 51,608 | 115,304 | ||
Agency Business | $50M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 9,657 | $ 9,657 | 9,295 | ||
Weighted Average Note Rate (as a percent) | 1.75% | 1.75% | |||
Debt Carrying Value | $ 9,657 | $ 9,657 | 9,295 | ||
Agency Business | $750M ASAP agreement | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 18,711 | $ 18,711 | 182,140 | ||
Weighted Average Note Rate (as a percent) | 1.40% | 1.40% | |||
Debt Carrying Value | $ 18,711 | $ 18,711 | 182,130 | ||
Agency Business | $500M joint repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 88,906 | $ 88,906 | 475,360 | ||
Weighted Average Note Rate (as a percent) | 2.44% | 2.44% | |||
Debt Carrying Value | $ 70,983 | $ 70,983 | 395,317 | ||
Agency Business | $500M repurchase facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 80,173 | $ 80,173 | 236,527 | ||
Weighted Average Note Rate (as a percent) | 1.78% | 1.78% | |||
Debt Carrying Value | $ 80,102 | $ 80,102 | 236,429 | ||
Agency Business | $150M credit facility | |||||
Debt Obligations | |||||
Collateral Carrying Value | $ 69,952 | $ 69,952 | 16,657 | ||
Weighted Average Note Rate (as a percent) | 1.75% | 1.75% | |||
Debt Carrying Value | $ 69,895 | $ 69,895 | 16,544 | ||
Agency Business | $1M repurchase facility (2) | |||||
Debt Obligations | |||||
Collateral Carrying Value | 958 | 958 | 1,477 | ||
Maximum borrowing capacity | $ 1,000 | $ 1,000 | |||
Weighted Average Note Rate (as a percent) | 3.00% | 3.00% | |||
Debt Carrying Value | $ 844 | $ 844 | $ 1,253 |
Debt Obligations - Collateraliz
Debt Obligations - Collateralized Loan Obligations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2022USD ($)tranche | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Debt Obligations | ||||
Proceeds from issuance of collateralized loan obligations | $ 1,652,812 | $ 655,475 | ||
Debt, Carrying Value | $ 7,099,770 | $ 5,892,810 | ||
Weighted average note rate (as a percent) | 2.54% | |||
Payoffs and paydowns of collateralized loan obligations | $ 441,000 | $ 356,149 | ||
UPB | 4,315,388 | 4,493,699 | ||
Collateralized loan obligations | ||||
Debt Obligations | ||||
Debt, Face Value | 7,136,517 | 5,924,705 | ||
Debt, Carrying Value | $ 7,099,770 | $ 5,892,810 | ||
Weighted average note rate (as a percent) | 1.99% | 1.59% | ||
Restricted cash related to interest payments, delayed funding and expenses | $ 237,200 | $ 133,700 | ||
Collateral Loans, Unpaid Principal | 8,152,197 | 6,645,088 | ||
Collateral Loans, Carrying Value | 8,115,510 | 6,616,810 | ||
Cash, Restricted Cash | 259,689 | 329,496 | ||
Deferred financing fees | $ 36,700 | $ 31,900 | ||
Replacement period | 2 years 6 months | |||
Weighted average note rate including certain fees and costs (as a percent) | 2.24% | 1.86% | ||
Collateral at risk | $ 0 | $ 0 | ||
CLO 18 | ||||
Debt Obligations | ||||
Number of tranches of CLO notes issued | tranche | 8 | |||
Number of newly-formed wholly-owned subsidiaries | tranche | 2 | |||
Value of the tranches issued | $ 1,860,000 | |||
Debt, Face Value | 1,650,000 | 1,652,812 | ||
Debt, Carrying Value | 210,100 | $ 1,644,088 | ||
Weighted average note rate (as a percent) | 2.13% | |||
Collateral Loans, Unpaid Principal | $ 1,933,268 | |||
Collateral Loans, Carrying Value | 1,923,348 | |||
Cash, Restricted Cash | 6,680 | |||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 347,300 | |||
Maximum period to acquire additional loan obligations | 180 days | |||
Notional amount of residual interest retained | $ 397,200 | |||
Value of portfolio loans as collateral | 1,700,000 | |||
Face value of loan obligations will be owned by the issuer | $ 2,050,000 | |||
Leverage (as a percent) | 81.00% | |||
CLO 18 | One-month LIBOR | ||||
Debt Obligations | ||||
Weighted average note rate including certain fees and costs (as a percent) | 1.81% | |||
CLO 18 | Below investment grade | ||||
Debt Obligations | ||||
Notional amount of residual interest retained | $ 210,100 | |||
CLO 17 | ||||
Debt Obligations | ||||
Debt, Face Value | 1,714,125 | 1,714,125 | ||
Debt, Carrying Value | $ 1,706,118 | $ 1,705,549 | ||
Weighted average note rate (as a percent) | 2.16% | 1.81% | ||
Collateral Loans, Unpaid Principal | $ 2,016,926 | $ 1,914,280 | ||
Collateral Loans, Carrying Value | 2,005,486 | 1,903,997 | ||
Cash, Restricted Cash | 20,454 | 118,520 | ||
CLO 16 | ||||
Debt Obligations | ||||
Debt, Face Value | 1,237,500 | 1,237,500 | ||
Debt, Carrying Value | $ 1,230,478 | $ 1,230,093 | ||
Weighted average note rate (as a percent) | 1.79% | 1.44% | ||
Collateral Loans, Unpaid Principal | $ 1,446,698 | $ 1,444,573 | ||
Collateral Loans, Carrying Value | 1,439,541 | 1,436,743 | ||
CLO 15 | ||||
Debt Obligations | ||||
Debt, Face Value | 674,412 | 674,412 | ||
Debt, Carrying Value | $ 670,166 | $ 669,723 | ||
Weighted average note rate (as a percent) | 1.85% | 1.49% | ||
Collateral Loans, Unpaid Principal | $ 791,506 | $ 785,761 | ||
Collateral Loans, Carrying Value | 788,600 | 782,682 | ||
Cash, Restricted Cash | 11,026 | 15,750 | ||
CLO 14 | ||||
Debt Obligations | ||||
Debt, Face Value | 655,475 | 655,475 | ||
Debt, Carrying Value | $ 651,356 | $ 650,947 | ||
Weighted average note rate (as a percent) | 1.81% | 1.45% | ||
Collateral Loans, Unpaid Principal | $ 691,852 | $ 717,396 | ||
Collateral Loans, Carrying Value | 689,470 | 715,154 | ||
Cash, Restricted Cash | 77,576 | 53,342 | ||
CLO 13 | ||||
Debt Obligations | ||||
Debt, Face Value | 668,000 | 668,000 | ||
Debt, Carrying Value | $ 665,306 | $ 665,006 | ||
Weighted average note rate (as a percent) | 1.89% | 1.54% | ||
Collateral Loans, Unpaid Principal | $ 728,345 | $ 740,369 | ||
Collateral Loans, Carrying Value | 726,569 | 738,265 | ||
Cash, Restricted Cash | 58,696 | 48,543 | ||
CLO 12 | ||||
Debt Obligations | ||||
Debt, Face Value | 534,193 | 534,193 | ||
Debt, Carrying Value | $ 532,258 | $ 531,939 | ||
Weighted average note rate (as a percent) | 1.98% | 1.62% | ||
Collateral Loans, Unpaid Principal | $ 543,602 | $ 557,249 | ||
Collateral Loans, Carrying Value | 542,496 | 555,974 | ||
Cash, Restricted Cash | $ 85,257 | 35,635 | ||
CLO 10 | ||||
Debt Obligations | ||||
Debt, Face Value | 441,000 | |||
Debt, Carrying Value | $ 439,553 | |||
Weighted average note rate (as a percent) | 1.57% | |||
Collateral Loans, Unpaid Principal | $ 485,460 | |||
Collateral Loans, Carrying Value | 483,995 | |||
Cash, Restricted Cash | $ 57,706 | |||
Payoffs and paydowns of collateralized loan obligations | 441,000 | |||
Deferred fees expensed as interest expense | $ 1,400 |
Debt Obligations - Luxembourg D
Debt Obligations - Luxembourg Debt Fund (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Obligations | |||
Secured Debt. | $ 7,099,770 | $ 5,892,810 | |
Debt, Weighted Average Interest Rate | 2.54% | ||
Gain (loss) on real estate | $ (1,350) | $ (1,370) |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Obligations | ||
Redemption of aggregate principal amount (as a percent) | 100.00% | |
Senior notes carrying value | $ 1,281,489 | $ 1,280,545 |
5.00% Convertible notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 180,000 | 180,000 |
Interest rate (as a percent) | 5.00% | |
4.50% Convertible Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 270,000 | 270,000 |
Interest rate (as a percent) | 4.50% | |
5.00% Convertible Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 175,000 | 175,000 |
Interest rate (as a percent) | 5.00% | |
5.625% Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 125,000 | 125,000 |
Interest rate (as a percent) | 5.625% | |
4.75% Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 110,000 | 110,000 |
Interest rate (as a percent) | 4.75% | |
5.75% Convertible Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 90,000 | 90,000 |
Interest rate (as a percent) | 5.75% | |
Senior Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 1,295,750 | 1,295,750 |
8.00% Convertible Notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 70,750 | $ 70,750 |
Interest rate (as a percent) | 8.00% |
Debt Obligations - Senior Uns_2
Debt Obligations - Senior Unsecured Notes, Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Obligations | ||
Wtd. Avg Rate | 2.54% | |
Redemption of aggregate principal amount (as a percent) | 100.00% | |
Senior Notes | ||
Debt Obligations | ||
UPB | $ 1,295,750 | $ 1,295,750 |
Carrying value | $ 1,281,489 | $ 1,280,545 |
Wtd. Avg Rate | 5.05% | 5.05% |
Deferred financing fees | $ 14,300 | $ 15,200 |
Weighted average note rate including certain fees and costs (as a percent) | 5.34% | 5.34% |
5.00% Convertible notes | ||
Debt Obligations | ||
UPB | $ 180,000 | $ 180,000 |
Carrying value | $ 177,132 | $ 177,105 |
Wtd. Avg Rate | 5.00% | 5.00% |
Interest rate (as a percent) | 5.00% | |
5.00% Convertible Notes | ||
Debt Obligations | ||
UPB | $ 175,000 | $ 175,000 |
Carrying value | $ 172,457 | $ 172,302 |
Wtd. Avg Rate | 5.00% | 5.00% |
Interest rate (as a percent) | 5.00% | |
8.00% Convertible Notes | ||
Debt Obligations | ||
UPB | $ 70,750 | $ 70,750 |
Carrying value | $ 70,305 | $ 70,202 |
Wtd. Avg Rate | 8.00% | 8.00% |
Interest rate (as a percent) | 8.00% | |
4.50% Convertible Notes | ||
Debt Obligations | ||
UPB | $ 270,000 | $ 270,000 |
Carrying value | $ 266,299 | $ 266,090 |
Wtd. Avg Rate | 4.50% | 4.50% |
Interest rate (as a percent) | 4.50% | |
4.50% Senior Unsecured Notes | ||
Debt Obligations | ||
UPB | $ 275,000 | $ 275,000 |
Carrying value | $ 272,598 | $ 272,477 |
Wtd. Avg Rate | 4.50% | 4.50% |
4.75% Notes | ||
Debt Obligations | ||
UPB | $ 110,000 | $ 110,000 |
Carrying value | $ 109,104 | $ 109,018 |
Wtd. Avg Rate | 4.75% | 4.75% |
Interest rate (as a percent) | 4.75% | |
5.75% Convertible Notes | ||
Debt Obligations | ||
UPB | $ 90,000 | $ 90,000 |
Carrying value | $ 89,231 | $ 89,135 |
Wtd. Avg Rate | 5.75% | 5.75% |
Interest rate (as a percent) | 5.75% | |
5.625% Notes | ||
Debt Obligations | ||
UPB | $ 125,000 | $ 125,000 |
Carrying value | $ 124,363 | $ 124,216 |
Wtd. Avg Rate | 5.63% | 5.63% |
Interest rate (as a percent) | 5.625% |
Debt Obligations - Convertible
Debt Obligations - Convertible Senior Unsecured Notes (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($)$ / shares | |
Debt Obligations | ||||
Gain (loss) on real estate | $ (1,350,000) | $ (1,370,000) | ||
Total | 13,165,991,000 | |||
Convertible Senior Unsecured Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 264,000,000 | $ 264,000,000 | ||
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed | 100.00% | |||
Unamortized Debt Discount | 2,520,000 | |||
Unamortized Deferred Financing Fees | $ 1,517,000 | 2,095,000 | ||
Total | 262,483,000 | 259,385,000 | ||
Net Carrying Value, Equity Component | $ 8,684,000 | |||
Interest expense | 3,800,000 | 4,800,000 | ||
Interest expense related to cash coupon | 3,100,000 | 3,300,000 | ||
Debt discount | 800,000 | |||
Deferred fees expensed as interest expense | $ 700,000 | $ 700,000 | ||
Cost of the notes (as a percent) | 5.73% | 6.71% | ||
Cost of the notes excluding the amortization of the debt discount (as a percent) | 5.73% | |||
Senior Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 1,295,750,000 | $ 1,295,750,000 | ||
Unamortized Deferred Financing Fees | 14,300,000 | 15,200,000 | ||
8.00% Convertible Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 70,750,000 | 70,750,000 | ||
Interest rate (as a percent) | 8.00% | |||
4.50% Convertible Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 270,000,000 | 270,000,000 | ||
Interest rate (as a percent) | 4.50% | |||
5.25% Convertible Notes | ||||
Debt Obligations | ||||
Interest rate (as a percent) | 5.25% | |||
Cash paid for the exchange of convertible notes | $ 233,100,000 | $ 228,700,000 | ||
Common stock exchanged (in shares) | shares | 4,478,315 | |||
4.75% Convertible Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 1,000 | $ 264,000,000 | ||
Interest rate (as a percent) | 4.75% | 4.75% | ||
Proceeds received, net of estimated issuance costs | $ 256,500,000 | |||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 57.0772 | |||
Conversion price per share of common stock | $ / shares | $ 17.52 | |||
4.75% Convertible Notes | First Offering | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 1,000 | |||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 56.1695 | |||
Conversion price per share of common stock | $ / shares | $ 17.80 | |||
5.75% Convertible Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 90,000,000 | 90,000,000 | ||
Interest rate (as a percent) | 5.75% | |||
5.625% Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 125,000,000 | 125,000,000 | ||
Interest rate (as a percent) | 5.625% | |||
5.00% Convertible Notes | ||||
Debt Obligations | ||||
Junior subordinated notes | $ 175,000,000 | 175,000,000 | ||
Interest rate (as a percent) | 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 | $ 1,700,000 |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Obligations | ||
Debt carrying value | $ 142,570 | $ 142,382 |
Weighted average note rate (as a percent) | 2.54% | |
Junior subordinated notes | ||
Debt Obligations | ||
Debt carrying value | $ 142,600 | 142,400 |
Deferred amount Due at maturity | 10,100 | 10,200 |
Deferred fees expensed as interest expense | $ 1,700 | $ 1,700 |
Weighted average note rate (as a percent) | 3.79% | 3.03% |
Weighted average note rate including certain fees and costs (as a percent) | 3.87% | 3.12% |
Debt Obligations - Debt Covenan
Debt Obligations - Debt Covenants (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Mar. 31, 2022 | |
CLO 12 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 118.87% | 118.87% | 118.87% | 118.87% | 118.87% | 118.87% |
Limit overcollateralization ratio (as a percent) | 117.87% | |||||
Current interest coverage ratio (as a percent) | 342.37% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO 13 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 119.76% | 119.76% | 119.76% | 119.76% | 119.76% | 119.76% |
Limit overcollateralization ratio (as a percent) | 118.76% | |||||
Current interest coverage ratio (as a percent) | 273.97% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO 14 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 119.76% | 119.76% | 119.76% | 119.76% | 119.76% | 119.76% |
Limit overcollateralization ratio (as a percent) | 118.76% | |||||
Current interest coverage ratio (as a percent) | 358.56% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO 15 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 120.85% | 120.85% | 120.85% | 120.85% | 120.85% | |
Limit overcollateralization ratio (as a percent) | 119.85% | |||||
Current interest coverage ratio (as a percent) | 312.29% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO 16 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 121.21% | 121.21% | 121.21% | 121.21% | ||
Limit overcollateralization ratio (as a percent) | 120.21% | |||||
Current interest coverage ratio (as a percent) | 258.32% | |||||
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% | 122.51% | 122.51% | |||
Limit overcollateralization ratio (as a percent) | 121.51% | |||||
Current interest coverage ratio (as a percent) | 224.24% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO 18 | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 124.03% | 124.03% | ||||
Limit overcollateralization ratio (as a percent) | 123.03% | |||||
Current interest coverage ratio (as a percent) | 240.78% | |||||
Limit interest coverage ratio (as a percent) | 120.00% |
Allowance for Loss-Sharing Ob_3
Allowance for Loss-Sharing Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Roll forward of loss contingency accrual | |||
Provisions for loss sharing | $ (662) | $ 1,652 | |
Guarantee obligations | 34,400 | 34,400 | |
Fannie Mae Mortgage | |||
Roll forward of loss contingency accrual | |||
Allowance for loss sharing obligations | $ 20,800 | $ 21,700 | |
Loss-sharing obligations (as a percent) | 0.11% | 0.11% | |
Loss-Sharing Obligation | |||
Roll forward of loss contingency accrual | |||
Outstanding advances under the Fannie Mae DUS program | $ 300 | $ 100 | |
Loss-Sharing Obligation | Fannie Mae Mortgage | |||
Roll forward of loss contingency accrual | |||
Beginning balance of the period | 56,064 | 64,303 | 64,303 |
Provisions for loss sharing | 133 | 1,748 | |
Provisions reversal for loan repayments | (795) | (96) | |
Recoveries (charge-offs) , net | (230) | (62) | |
Ending balance of the period | 55,172 | $ 65,893 | 56,064 |
Maximum quantifiable liability | $ 3,530,000 | $ 3,600,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Agency Business (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)item | |
Derivative Financial Instruments | |||
Net (losses) gains from changes in the fair value of derivatives | $ (2,500) | $ 8,700 | |
(Loss) gain on derivative instruments | 17,386 | (3,220) | |
Notional Value, classified in Other Assets | 287,251 | $ 280,654 | |
Other Income | |||
Derivative Financial Instruments | |||
(Loss) gain on derivative instruments | 15,300 | 36,900 | |
Rate lock commitments | |||
Derivative Financial Instruments | |||
Notional value | 147,873 | ||
Forward sale commitments | |||
Derivative Financial Instruments | |||
Notional value | $ 378,176 | ||
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 | $ 18,000 | (2,900) | |
Unrealized gain (loss) on derivatives | 2,000 | $ (2,600) | |
Non-Qualifying | Agency Business | |||
Derivative Financial Instruments | |||
Notional value | 605,349 | 970,670 | |
Fair Value, classified in Other Assets | 5,818 | 1,665 | |
Fair Value, classified in Other Liabilities | $ (7,090) | $ (1,482) | |
Non-Qualifying | Rate lock commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 11 | 2 | |
Notional value | $ 147,873 | $ 11,250 | |
Fair Value, classified in Other Assets | 1,355 | 295 | |
Fair Value, classified in Other Liabilities | $ (4,029) | $ (33) | |
Non-Qualifying | Forward sale commitments | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 43 | 55 | |
Notional value | $ 378,176 | $ 571,220 | |
Fair Value, classified in Other Assets | 4,463 | 1,370 | |
Fair Value, classified in Other Liabilities | $ (3,061) | $ (1,449) | |
Non-Qualifying | Interest Rate Swaps | Agency Business | |||
Derivative Financial Instruments | |||
Count | item | 793 | 3,882 | |
Notional value | $ 79,300 | $ 388,200 |
Fair Value, Carrying Value and
Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financial assets: | ||
Loans and investments, net - Principal/Notional Amount | $ 14,169,796 | $ 12,158,995 |
Loans and investments, net | 13,978,283 | 11,981,048 |
Loans held-for-sale, net - Principal/Notional Amount | 332,573 | 1,077,239 |
Loans held-for-sale, net | 332,573 | 1,077,239 |
Securities, held-to-maturity, net - Principal/Notional Amount | 245,070 | 210,728 |
Securities held-to-maturity, net | 161,696 | 140,484 |
Derivative financial instruments - Principal/Notional Amount | 287,251 | 280,654 |
Financial liabilities: | ||
Credit and repurchase facilities, Principal/Notional Amount | 4,315,388 | 4,493,699 |
Credit and repurchase facilities, Carrying value | 4,302,819 | 4,481,579 |
Collateralized loan obligations | 7,099,770 | 5,892,810 |
Senior unsecured notes | 1,281,489 | 1,280,545 |
Convertible senior unsecured notes, net | 262,483 | 259,385 |
Junior subordinated notes | 142,570 | 142,382 |
Derivative financial instruments - Principal/Notional Amount | $ 238,798 | 301,816 |
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 | $ 13,978,283 | 11,981,048 |
Loans held-for-sale, net | 336,959 | 1,093,609 |
Capitalized mortgage servicing rights, net | 422,036 | 422,734 |
Securities held-to-maturity, net | 161,696 | 140,484 |
Derivative financial instruments | 5,818 | 1,665 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,302,819 | 4,481,579 |
Collateralized loan obligations | 7,099,770 | |
Senior unsecured notes | 1,281,489 | |
Convertible senior unsecured notes, net | 262,483 | |
Junior subordinated notes | 142,570 | |
Derivative financial instruments | 7,090 | 1,482 |
Estimated Fair Value Disclosure | ||
Financial assets: | ||
Loans and investments, net | 14,194,981 | 12,181,194 |
Loans held-for-sale, net | 342,963 | 1,117,085 |
Capitalized mortgage servicing rights, net | 489,408 | 477,323 |
Securities held-to-maturity, net | 175,012 | 149,911 |
Derivative financial instruments | 5,818 | 1,665 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,305,364 | 4,484,107 |
Collateralized loan obligations | 7,081,872 | |
Senior unsecured notes | 1,256,378 | |
Convertible senior unsecured notes, net | 276,786 | |
Junior subordinated notes | 102,271 | |
Derivative financial instruments | 7,090 | 1,482 |
Collateralized loan obligations | ||
Financial liabilities: | ||
Collateralized loan obligations | 7,099,770 | 5,892,810 |
Debt instrument - Principal/Notional Amount | 7,136,517 | 5,924,705 |
Collateralized debt obligations | Carrying Value | ||
Financial liabilities: | ||
Collateralized loan obligations | 7,099,770 | 5,892,810 |
Collateralized debt obligations | Estimated Fair Value Disclosure | ||
Financial liabilities: | ||
Collateralized loan obligations | 7,081,872 | 5,914,453 |
Senior Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 1,295,750 | 1,295,750 |
Senior Notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 1,281,489 | 1,280,545 |
Senior Notes | Estimated Fair Value Disclosure | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 1,256,378 | 1,301,708 |
Convertible Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 264,000 | 264,000 |
Convertible Senior Unsecured Notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 262,483 | 259,385 |
Convertible Senior Unsecured Notes | Estimated Fair Value Disclosure | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 276,786 | 294,690 |
Junior subordinated notes | ||
Financial liabilities: | ||
Junior subordinated notes | 142,600 | 142,400 |
Debt instrument - Principal/Notional Amount | 154,336 | 154,336 |
Junior subordinated notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 142,570 | 142,382 |
Junior subordinated notes | Estimated Fair Value Disclosure | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | $ 102,271 | $ 101,698 |
Fair Value, Measurement on Recu
Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands, shares in Millions | Mar. 31, 2022USD ($)itemshares | Dec. 31, 2021USD ($) |
Financial assets: | ||
Impaired loans, net | $ 149,062 | $ 148,839 |
Allowance for credit losses on impaired loans | $ 86,886 | 86,886 |
Number of impaired loans | item | 8 | |
Aggregate carrying value, before reserves | shares | 149.1 | |
Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | $ 5,818 | 1,665 |
Financial liabilities: | ||
Derivative financial instruments | 7,090 | 1,482 |
Estimated Fair Value Disclosure | ||
Financial assets: | ||
Derivative financial instruments | 5,818 | 1,665 |
Financial liabilities: | ||
Derivative financial instruments | 7,090 | $ 1,482 |
Recurring basis | Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 5,818 | |
Financial liabilities: | ||
Derivative financial instruments | 7,090 | |
Recurring basis | Estimated Fair Value Disclosure | ||
Financial assets: | ||
Derivative financial instruments | 5,818 | |
Financial liabilities: | ||
Derivative financial instruments | 7,090 | |
Nonrecurring basis | Carrying Value | ||
Financial assets: | ||
Impaired loans, net | 62,176 | |
Nonrecurring basis | Estimated Fair Value Disclosure | ||
Financial assets: | ||
Impaired loans, net | 62,176 | |
Level 2 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 4,463 | |
Financial liabilities: | ||
Derivative financial instruments | 7,090 | |
Level 3 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 1,355 | |
Level 3 | Nonrecurring basis | ||
Financial assets: | ||
Impaired loans, net | $ 62,176 |
Fair Value, Level 3 Inputs (Det
Fair Value, Level 3 Inputs (Details) - Level 3 $ in Thousands | Mar. 31, 2022USD ($)item |
Land | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 50,000 |
Land | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 21.50 |
Land | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 3 |
Retail | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 11,715 |
Retail | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 11.25 |
Retail | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 9.25 |
Retail | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 3 |
Office | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 461 |
Office | Measurement Input Discount Rate [Member] | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 11 |
Office | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 9 |
Office | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 2.50 |
Rate lock commitments | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | $ 1,355 |
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 | 9.63 |
Fair Value, Level 3 Derivative
Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative assets | ||
Beginning balance | $ 295 | $ 1,967 |
Settlements | (13,683) | (37,026) |
Realized gains recorded in earnings | 13,388 | 35,059 |
Unrealized gains recorded in earnings | 1,355 | 1,439 |
Ending balance | $ 1,355 | $ 1,439 |
Fair Value, Components of fair
Fair Value, Components of fair value and other relevant information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value of Servicing Rights | $ 8,021 |
Total Fair Value Adjustment | 8,021 |
Rate lock commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 147,873 |
Fair Value of Servicing Rights | 1,355 |
Interest Rate Movement Effect | (3,830) |
Total Fair Value Adjustment | (2,475) |
Forward sale commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 378,176 |
Interest Rate Movement Effect | 3,830 |
Total Fair Value Adjustment | 3,830 |
Loans held-for-sale, net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 332,573 |
Fair Value of Servicing Rights | 6,666 |
Total Fair Value Adjustment | $ 6,666 |
Fair Value, Financial Assets an
Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Loans and investments, net | $ 13,978,283 | $ 11,981,048 |
Loans held-for-sale, net | 332,573 | 1,077,239 |
Securities held-to-maturity, net | 161,696 | 140,484 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,302,819 | 4,481,579 |
Collateralized loan obligations | 7,099,770 | 5,892,810 |
Senior unsecured notes | 1,281,489 | 1,280,545 |
Convertible senior unsecured notes, net | 262,483 | 259,385 |
Junior subordinated notes | 142,570 | 142,382 |
Level 1 | ||
Financial liabilities: | ||
Senior unsecured notes | 1,256,378 | |
Level 2 | ||
Financial assets: | ||
Loans held-for-sale, net | 336,297 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 301,800 | |
Convertible senior unsecured notes, net | 276,786 | |
Level 3 | ||
Financial assets: | ||
Loans and investments, net | 14,194,981 | |
Loans held-for-sale, net | 6,666 | |
Capitalized mortgage servicing rights, net | 489,408 | |
Securities held-to-maturity, net | 175,012 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,003,564 | |
Collateralized loan obligations | 7,081,872 | |
Junior subordinated notes | 102,271 | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | 13,978,283 | 11,981,048 |
Loans held-for-sale, net | 336,959 | 1,093,609 |
Capitalized mortgage servicing rights, net | 422,036 | |
Securities held-to-maturity, net | 161,696 | 140,484 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,302,819 | 4,481,579 |
Collateralized loan obligations | 7,099,770 | |
Senior unsecured notes | 1,281,489 | |
Convertible senior unsecured notes, net | 262,483 | |
Junior subordinated notes | 142,570 | |
Estimated Fair Value Disclosure | ||
Financial assets: | ||
Loans and investments, net | 14,194,981 | 12,181,194 |
Loans held-for-sale, net | 342,963 | 1,117,085 |
Capitalized mortgage servicing rights, net | 489,408 | |
Securities held-to-maturity, net | 175,012 | 149,911 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 4,305,364 | $ 4,484,107 |
Collateralized loan obligations | 7,081,872 | |
Senior unsecured notes | 1,256,378 | |
Convertible senior unsecured notes, net | 276,786 | |
Junior subordinated notes | $ 102,271 |
Commitments and Contingencies,
Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | |
Agency Business Commitments | ||||
Cash collateral | $ 517,090 | $ 272,039 | $ 486,690 | $ 197,470 |
Debt Obligations | ||||
2022 (nine months ending December 31, 2022) | 2,208,400 | |||
2023 | 2,316,693 | |||
2024 | 3,205,162 | |||
2025 | 1,358,080 | |||
2026 | 3,434,470 | |||
2027 | 279,236 | |||
Thereafter | 363,950 | |||
Total | 13,165,991 | |||
Minimum Annual Operating Lease Payments | ||||
2022 (nine months ending December 31, 2022) | 6,283 | |||
2023 | 8,350 | |||
2024 | 8,092 | |||
2025 | 8,144 | |||
2026 | 8,292 | |||
2027 | 6,841 | |||
Thereafter | 23,373 | |||
Total | 69,375 | |||
Total | ||||
2022 (nine months ending December 31, 2022) | 2,214,683 | |||
2023 | 2,325,043 | |||
2024 | 3,213,254 | |||
2025 | 1,366,224 | |||
2026 | 3,442,762 | |||
2027 | 286,077 | |||
Thereafter | 387,323 | |||
Total | 13,235,366 | |||
Operating lease expense | 2,400 | $ 2,300 | ||
Unfunded CLO Commitments | ||||
Unfunded commitments related to structured loans and investments | 1,130,000 | |||
Fannie Mae Mortgage | ||||
Agency Business Commitments | ||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | $ 18,700 | |||
Period of funding for collateral requirement | 48 months | |||
Forward Contracts | ||||
Agency Business Commitments | ||||
Period of contractual commitment | 60 days | |||
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 | $ 43,800 | |||
Period of additional funding for collateral requirement | 48 months | |||
Cash collateral arrangement - purchase and loss obligations under Freddie Mac's SBL Program | ||||
Agency Business Commitments | ||||
Cash collateral per securitization | $ 5,000 | |||
Outstanding letters of credit | $ 5,000 |
Commitments and Contingencies_2
Commitments and Contingencies, Litigation (Details) $ in Millions | Jun. 15, 2011USD ($)lawsuitdefendant | Aug. 31, 2020USD ($)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 | |||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Arbor ESH II, LLC | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 1 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Assets: | |||||
Restricted cash | $ 517,090 | $ 486,690 | $ 272,039 | $ 197,470 | |
Loans and investments, net | 13,978,283 | 11,981,048 | |||
Other assets | 291,861 | 269,946 | |||
Total assets | 16,308,906 | 15,073,845 | |||
Liabilities: | |||||
Collateralized loan obligations | 7,099,770 | 5,892,810 | |||
Other liabilities | 272,947 | 287,885 | |||
Total liabilities | 13,536,858 | 12,523,861 | |||
Loan loss reserves related to VIEs | 116,382 | 113,241 | $ 147,300 | $ 148,329 | |
Consolidated VIEs | |||||
Assets: | |||||
Total assets | 8,679,272 | 7,144,806 | |||
Liabilities: | |||||
Total liabilities | 7,107,860 | 5,902,623 | |||
Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | $ 657,201 | ||||
Liabilities: | |||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item | 31 | ||||
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 | 4,580,000 | ||||
Collateralized loan obligations | Consolidated VIEs | |||||
Assets: | |||||
Restricted cash | 496,913 | 466,523 | |||
Loans and investments, net | 8,115,509 | 6,616,809 | |||
Other assets | 66,850 | 61,474 | |||
Total assets | 8,679,272 | 7,144,806 | |||
Liabilities: | |||||
Collateralized loan obligations | 7,099,770 | 5,892,810 | |||
Other liabilities | 8,090 | 9,813 | |||
Total liabilities | 7,107,860 | $ 5,902,623 | |||
CDO bond and CMBS investments | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 468,136 | ||||
APL certificates | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 122,851 | ||||
B Piece bonds | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 40,888 | ||||
Equity investments | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 24,877 | ||||
Agency interest only strips | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | $ 449 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | May 04, 2022$ / shares | Apr. 01, 2022$ / shares | Feb. 17, 2021$ / shares | Aug. 31, 2021shares | Mar. 31, 2022USD ($)Vote$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2019 |
Common stock | ||||||||
Proceeds from issuance of shares under public offering | $ | $ 137,800 | $ 158,433 | ||||||
Noncontrolling Interest | ||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Distributions | ||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.37 | $ 0.33 | ||||||
Preferred Stock | ||||||||
Proceeds from issuance of preferred stock | $ | $ 77,571 | |||||||
Restricted common stock | ||||||||
Deferred Compensation | ||||||||
Shares withheld for taxes | 127,987 | |||||||
Restricted common stock | Chief executive officer | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 189,873 | |||||||
Total grant date fair value | $ | $ 3,300 | |||||||
Restricted common stock | Director | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 25,012 | |||||||
Restricted common stock | Employees | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 552,908 | |||||||
Total grant date fair value | $ | $ 9,700 | |||||||
Restricted common stock | Employees | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 192,510 | |||||||
Total grant date fair value | $ | $ 3,400 | |||||||
Restricted common stock | Employees | First anniversaries | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 188,136 | |||||||
Total grant date fair value | $ | $ 3,300 | |||||||
Restricted common stock | Employees | Second anniversaries | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 152,373 | |||||||
Total grant date fair value | $ | $ 2,700 | |||||||
Restricted common stock | Employees | Third anniversaries | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 9,951 | |||||||
Total grant date fair value | $ | $ 200 | |||||||
Restricted common stock | Employees | Fourth anniversaries | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Grants during the period (in shares) | 9,938 | |||||||
Total grant date fair value | $ | $ 200 | |||||||
Performance-based restricted stock | Chief executive officer | ||||||||
Deferred Compensation | ||||||||
Restricted stock vested during period (in shares) | 381,503 | |||||||
Number of shares issued in net settlement | 186,772 | |||||||
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% | ||||||
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 | ||||||||
Number of common stock sold (in shares) | 8,225,750 | 10,140,400 | ||||||
Distributions | ||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.38 | $ 0.37 | ||||||
Common Stock | Director | 2020 Plan | ||||||||
Deferred Compensation | ||||||||
Total grant date fair value | $ | $ 400 | |||||||
Common Stock | 6.25% Series F preferred stock | ||||||||
Common stock | ||||||||
Number of common stock sold (in shares) | 0 | |||||||
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 | ||||||
Preferred Stock | 6.25% Series E preferred stock | ||||||||
Distributions | ||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | 0.390625 | $ 0.390625 | ||||||
Preferred Stock | 6.25% Series F preferred stock | ||||||||
Common stock | ||||||||
Number of common stock sold (in shares) | 3,292,000 | |||||||
Distributions | ||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.390625 | |||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.46875 | |||||||
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 | |||||||
Number of vote per share of Special Voting Preferred Shares | Vote | 1 | |||||||
OP units outstanding (in shares) | 16,325,095 | |||||||
Voting power of outstanding stock (as a percent) | 9.20% | |||||||
Number of preferred stock shares paired with each OP units | 1 | |||||||
5.25% Convertible Notes | ||||||||
Common stock | ||||||||
Interest rate (as a percent) | 5.25% | |||||||
Public offering | Common Stock | ||||||||
Common stock | ||||||||
Issued price per share (in dollars per share) | $ / shares | $ 16.57 | |||||||
Number of common stock sold (in shares) | 7,475,000 | |||||||
Proceeds from issuance of shares under public offering | $ | $ 123,700 | |||||||
Public offering | Preferred Stock | 6.25% Series F preferred stock | ||||||||
Preferred Stock | ||||||||
Issuance of preferred stock (in shares) | 3,292,000 | |||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | |||||||
Proceeds from issuance of preferred stock | $ | $ 77,100 | |||||||
At-The-Market | Common Stock | ||||||||
Common stock | ||||||||
Number of common stock sold (in shares) | 750,750 | |||||||
Proceeds from issuance of shares under public offering | $ | $ 13,900 |
Equity - Earnings Per Share ("E
Equity - Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic | ||
Net income attributable to common stockholders (1) | $ 64,057 | $ 69,479 |
Net income attributable to common stockholders and noncontrolling interest | $ 64,057 | $ 69,479 |
Weighted average shares outstanding (in shares) | 153,420,238 | 125,235,405 |
Weighted average shares outstanding (in shares) | 153,420,238 | 125,235,405 |
Net income per common share (in dollars per share) | $ 0.42 | $ 0.55 |
Diluted | ||
Net income attributable to common stockholders | $ 64,057 | $ 69,479 |
Net income attributable to noncontrolling interest | 6,816 | 9,743 |
Net income attributable to common stockholders and noncontrolling interest | $ 74,868 | $ 79,222 |
Weighted average shares outstanding (in shares) | 153,420,238 | 125,235,405 |
Dilutive effect of OP Units (in shares) | 16,325,095 | 17,560,633 |
Dilutive effect of restricted stock units (in shares) | 574,917 | 912,545 |
Dilutive effect of convertible notes (in shares) | 15,111,154 | 249,850 |
Weighted average shares outstanding ( in shares) | 185,431,404 | 143,958,433 |
Decrease in diluted earnings per share | $ 0.40 | $ 0.55 |
Interest expense on convertible notes | $ 3,995 | |
Mr. Ivan Kaufman | Performance-based restricted stock | ||
Diluted | ||
Vesting period (in years) | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Provision for (benefit) from income taxes | $ 8,188 | $ 12,492 |
Deferred tax (benefit) provision | (1,720) | 4,486 |
Current tax provision | $ 9,900 | $ 8,000 |
Minimum | ||
Income Tax Contingency [Line Items] | ||
Federal income tax rate (as a percent) | 90.00% |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties - Shared Services Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Former manager | Support Services and Seconded Employees | ||
Agreements and transactions with related parties | ||
Costs for services to related party | $ 0.8 | $ 0.8 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Other Related Party (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | 15 Months Ended | ||||||||||||||||||
Mar. 31, 2022USD ($)shares | Feb. 28, 2022USD ($) | Dec. 31, 2021USD ($) | Oct. 31, 2021USD ($) | Jan. 31, 2021 | Mar. 31, 2020USD ($)item | Jan. 31, 2019USD ($) | Jun. 30, 2018USD ($)loanproperty | Mar. 31, 2022USD ($)shares | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)item | Mar. 31, 2019 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loanitemproperty | Dec. 31, 2015USD ($) | Jan. 31, 2022USD ($) | Mar. 31, 2022USD ($)shares | Dec. 31, 2016USD ($)property | |
Agreements and transactions with related parties | |||||||||||||||||||||||
Due to related party | $ 12,812,000 | $ 26,570,000 | $ 12,812,000 | $ 26,570,000 | $ 12,812,000 | ||||||||||||||||||
Due from related parties | 53,744,000 | 84,318,000 | 53,744,000 | 84,318,000 | 53,744,000 | ||||||||||||||||||
Proceeds from Bridge loan on a multi family property | 50,000,000 | $ 67,000,000 | |||||||||||||||||||||
Base spread (as a percent) | 3.00% | ||||||||||||||||||||||
Investment made | $ 2,656,874,000 | $ 1,055,354,000 | |||||||||||||||||||||
Indirect ownership percentage | 9.20% | ||||||||||||||||||||||
(Income) loss from equity affiliates | $ (7,212,000) | (22,251,000) | |||||||||||||||||||||
CMBS/Conduit | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Loans assumed | 26 | ||||||||||||||||||||||
Retail property | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Property purchased | $ 32,500,000 | $ 32,500,000 | |||||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Number of preferred stock shares paired with each OP units | shares | 1 | ||||||||||||||||||||||
Mature date of April 2030 | Private Label | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Fixed rate of interest (as a percent) | 3.10% | ||||||||||||||||||||||
Bridge Loans | Single-Family Rental | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Loan committed | $ 4,000,000 | $ 32,500,000 | |||||||||||||||||||||
Investment made | 3.5 | ||||||||||||||||||||||
Bridge Loan Six Multifamily Properties [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
UPB converted to a mezzanine loan | $ 2,000,000 | ||||||||||||||||||||||
Lexford Portfolio | Maturity date of March 2030 | Private Label | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 34,600,000 | $ 34,600,000 | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 3.30% | ||||||||||||||||||||||
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 | 50,000,000 | 50,000,000 | ||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mature date of April 2030 | Private Label | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | 63,400,000 | ||||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mezzanine Loans | Mature date of April 2030 | |||||||||||||||||||||||
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 | $ 25,200,000 | $ 25,200,000 | $ 30,000,000 | $ 25,200,000 | |||||||||||||||||||
Ownership interest (as a percent) | 18.00% | 18.00% | 18.00% | ||||||||||||||||||||
Interest income recorded | $ 300,000 | ||||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | Private Label | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 100.00% | ||||||||||||||||||||||
Fixed rate of interest (as a percent) | 3.735% | ||||||||||||||||||||||
Amount of loan to related party | $ 15,600,000 | ||||||||||||||||||||||
ACM | Residential Mortgage Banking Company | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Interest income recorded | $ 22,500,000 | $ 5,000,000 | 13,100,000 | $ 7,500,000 | |||||||||||||||||||
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 | ||||||||||||||||||||||
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 | 7.50% | 7.50% | 7.50% | ||||||||||||||||||||
ACM | Preferred equity investments | Single-Family Rental | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Investment made | $ 4,600,000 | ||||||||||||||||||||||
ACM | Bridge Loans | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Equity participation interest (as a percentage) | 18.90% | ||||||||||||||||||||||
ACM | Bridge Loans | Single-Family Rental | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Loan committed | $ 30,500,000 | ||||||||||||||||||||||
ACM | 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 | ||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Maturity Date Of August 2022 [Member] | One Multifamily Property [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | 35,400,000 | ||||||||||||||||||||||
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 | item | 2 | 2 | |||||||||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Preferred equity investments | Maturity Date September 2019 [Member] | Multifamily Portfolio | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Equity investment | $ 3,400,000 | $ 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 | 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] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 34,000,000 | ||||||||||||||||||||||
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 | $ 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% | ||||||||||||||||||||||
Principal amount | $ 46,900,000 | ||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 17.60% | ||||||||||||||||||||||
Interest income recorded | 100,000 | 100,000 | |||||||||||||||||||||
Consortium of investors including an immediate family member of our officers | Bridge Loan One Multifamily Property [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 7,000,000 | ||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loans | Maturity Date Of June 2021 [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | ||||||||||||||||||||||
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% | ||||||||||||||||||||||
Interest income recorded | 100,000 | ||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 5.00% | ||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2022 [Member] | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 1.25% | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
Principal amount | $ 21,700,000 | ||||||||||||||||||||||
Interest income recorded | 300,000 | 300,000 | |||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 4.75% | ||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2023 [Member] | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 1.25% | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
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 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 | 500,000 | 500,000 | |||||||||||||||||||||
Number of bridge loans originated | item | 2 | ||||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of 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 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 | $ 100,000 | 100,000 | |||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of October 2022 Member | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 1.80% | ||||||||||||||||||||||
Chairman and Chief executive officer | Minimum | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||
Mr. Ivan Kaufman | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Percentage of our Former Manager's outstanding membership interest of related party in another related party | 35.00% | 35.00% | 35.00% | ||||||||||||||||||||
Director | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Number of portfolios of multifamily properties | 2 | 2 | 2 | ||||||||||||||||||||
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% | |||||||||||||||||||||
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 | $ 200,000 | ||||||||||||||||||||||
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% | ||||||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loans | Matures in October 2023 [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
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 | 300,000 | 100,000 | |||||||||||||||||||||
Lexford Portfolio | Bridge Loans | Maturity Date Of June 2021 [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 280,500,000 | ||||||||||||||||||||||
Maximum exposure under guaranty | $ 610,800,000 | 610,800,000 | $ 610,800,000 | ||||||||||||||||||||
Number of bridge loans originated | loan | 12 | ||||||||||||||||||||||
Number of multifamily properties renovated | property | 72 | ||||||||||||||||||||||
Entity controlled by our chief executive officer | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Reimbursement for flights chartered by the company's executives | 200,000 | 100,000 | |||||||||||||||||||||
Certain Officers And Managers [Member] | Mezzanine Loans | Maturity Date Of January 2024 [Member] | |||||||||||||||||||||||
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 Of 2019 [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Number of properties owned | property | 6 | ||||||||||||||||||||||
Base spread (as a percent) | 4.50% | ||||||||||||||||||||||
Interest income recorded | $ 100,000 | ||||||||||||||||||||||
Number of bridge loans paid off | 28,300,000 | 4 | 1 | ||||||||||||||||||||
Proceeds from repayment in full | $ 10,900,000 | $ 6,800,000 | |||||||||||||||||||||
Remaining bridge loan from repayment | $ 12,900,000 | ||||||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 2019 [Member] | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Base spread (as a percent) | 0.25% | ||||||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 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 Of 2019 [Member] | Maximum | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 12.00% | ||||||||||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date January 2019 [Member] | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 48,000,000 | ||||||||||||||||||||||
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 | 100,000 | |||||||||||||||||||||
Percentage of loan assumption fee | 1.00% | ||||||||||||||||||||||
Percentage of ownership after transaction | 3.60% | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
Interest income recorded | $ 0.7 | 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% | ||||||||||||||||||||||
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 2025 | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Principal amount | $ 39,400,000 | ||||||||||||||||||||||
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 2025 | LIBOR | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Equity participation interest (as a percentage) | 2.25% | ||||||||||||||||||||||
Base spread (as a percent) | 4.00% | ||||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||||
LLC | |||||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||||
Amount invested | $ 4,200,000 | $ 4,200,000 | |||||||||||||||||||||
Ownership interest (as a percent) | 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 |
Segment Information - Statement
Segment Information - Statements of Income (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | |
Segment Information | ||
Interest income | $ 166,698 | $ 91,144 |
Interest expense | 82,559 | 42,184 |
Net interest income | 84,139 | 48,960 |
Other revenue: | ||
Gain on sales, including fee-based services, net | 1,656 | 28,867 |
Mortgage servicing rights | 15,312 | 36,936 |
Servicing revenue | 36,026 | 29,740 |
Amortization of MSRs | (14,972) | (14,204) |
Property operating income | 295 | |
Gain (loss) on derivative instruments, net | 17,386 | (3,220) |
Other income, net | 3,200 | 681 |
Total other revenue | 58,903 | 78,800 |
Other expenses: | ||
Employee compensation and benefits | 42,025 | 42,974 |
Selling and administrative | 14,548 | 10,818 |
Property operating expenses | 535 | 143 |
Depreciation and amortization | 1,983 | 1,755 |
Provision for loss sharing (net of recoveries) | (662) | 1,652 |
Provision for credit losses (net of recoveries) | 2,358 | (1,075) |
Total other expenses | 60,787 | 56,267 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 82,255 | 71,493 |
Loss on extinguishment of debt | (1,350) | (1,370) |
Gain on real estate | 1,228 | |
Income from equity affiliates | 7,212 | 22,251 |
Provision for income taxes | (8,188) | (12,492) |
Net income | 79,929 | 81,110 |
Preferred stock dividends | 9,056 | 1,888 |
Net income attributable to noncontrolling interest | 6,816 | 9,743 |
Net income attributable to common stockholders | $ 64,057 | 69,479 |
Reporting segments | item | 2 | |
Operating segments | ||
Other expenses: | ||
Net income attributable to noncontrolling interest | $ 6,816 | |
Net income attributable to common stockholders | (6,816) | |
Operating segments | Structured Transaction Business | ||
Segment Information | ||
Interest income | 156,260 | 83,210 |
Interest expense | 78,202 | 38,224 |
Net interest income | 78,058 | 44,986 |
Other revenue: | ||
Property operating income | 295 | |
Other income, net | 3,196 | 681 |
Total other revenue | 3,491 | 681 |
Other expenses: | ||
Employee compensation and benefits | 15,487 | 11,577 |
Selling and administrative | 7,409 | 4,513 |
Property operating expenses | 535 | 143 |
Depreciation and amortization | 810 | 582 |
Provision for credit losses (net of recoveries) | 2,069 | (1,029) |
Total other expenses | 26,310 | 15,786 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 55,239 | 29,881 |
Loss on extinguishment of debt | (1,350) | (1,370) |
Income from equity affiliates | 7,212 | 22,251 |
Provision for income taxes | (1,432) | (4,983) |
Net income | 59,669 | 45,779 |
Preferred stock dividends | 9,056 | 1,888 |
Net income attributable to common stockholders | 50,613 | 43,891 |
Operating segments | Agency Business | ||
Segment Information | ||
Interest income | 10,438 | 7,934 |
Interest expense | 4,357 | 3,960 |
Net interest income | 6,081 | 3,974 |
Other revenue: | ||
Gain on sales, including fee-based services, net | 1,656 | 28,867 |
Mortgage servicing rights | 15,312 | 36,936 |
Servicing revenue | 36,026 | 29,740 |
Amortization of MSRs | (14,972) | (14,204) |
Gain (loss) on derivative instruments, net | 17,386 | (3,220) |
Other income, net | 4 | |
Total other revenue | 55,412 | 78,119 |
Other expenses: | ||
Employee compensation and benefits | 26,538 | 31,397 |
Selling and administrative | 7,139 | 6,305 |
Depreciation and amortization | 1,173 | 1,173 |
Provision for loss sharing (net of recoveries) | (662) | 1,652 |
Provision for credit losses (net of recoveries) | 289 | (46) |
Total other expenses | 34,477 | 40,481 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 27,016 | 41,612 |
Gain on real estate | 1,228 | |
Provision for income taxes | (6,756) | (7,509) |
Net income | 20,260 | 35,331 |
Net income attributable to common stockholders | $ 20,260 | 35,331 |
Other / Eliminations | ||
Other expenses: | ||
Net income attributable to noncontrolling interest | 9,743 | |
Net income attributable to common stockholders | $ (9,743) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 350,814 | $ 404,580 | $ 260,228 | $ 339,528 |
Restricted cash | 517,090 | 486,690 | $ 272,039 | $ 197,470 |
Loans and investments, net | 13,978,283 | 11,981,048 | ||
Loans held-for-sale, net | 336,959 | 1,093,609 | ||
Capitalized mortgage servicing rights, net | 422,036 | 422,734 | ||
Securities held-to-maturity, net | 161,696 | 140,484 | ||
Investments in equity affiliates | 96,836 | 89,676 | ||
Goodwill and other intangible assets | 99,587 | 100,760 | ||
Other assets and due from related party | 345,605 | 354,264 | ||
Total assets | 16,308,906 | 15,073,845 | ||
Liabilities: | ||||
Debt obligations | 13,089,131 | 12,056,701 | ||
Allowance for loss-sharing obligations | 55,172 | 56,064 | ||
Other liabilities and due to related parties | 392,555 | 411,096 | ||
Total liabilities | 13,536,858 | 12,523,861 | ||
Structured Transaction Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 90,106 | 142,771 | ||
Restricted cash | 498,412 | 468,013 | ||
Loans and investments, net | 13,978,283 | 11,981,048 | ||
Investments in equity affiliates | 96,836 | 89,676 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets and due from related party | 282,065 | 285,600 | ||
Total assets | 14,958,202 | 12,979,608 | ||
Liabilities: | ||||
Debt obligations | 12,787,332 | 11,100,429 | ||
Other liabilities and due to related parties | 268,454 | 278,726 | ||
Total liabilities | 13,055,786 | 11,379,155 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 260,708 | 261,809 | ||
Restricted cash | 18,678 | 18,677 | ||
Loans held-for-sale, net | 336,959 | 1,093,609 | ||
Capitalized mortgage servicing rights, net | 422,036 | 422,734 | ||
Securities held-to-maturity, net | 161,696 | 140,484 | ||
Goodwill and other intangible assets | 87,087 | 88,260 | ||
Other assets and due from related party | 63,540 | 68,664 | ||
Total assets | 1,350,704 | 2,094,237 | ||
Liabilities: | ||||
Debt obligations | 301,799 | 956,272 | ||
Allowance for loss-sharing obligations | 55,172 | 56,064 | ||
Other liabilities and due to related parties | 124,101 | 132,370 | ||
Total liabilities | $ 481,072 | $ 1,144,706 |
Segment Information - Originati
Segment Information - Origination Data (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Segment Information | ||
Origination Volumes | $ 975,132 | $ 1,460,135 |
Loan Sales Data: | ||
Gain (loss) on derivative instruments, net | 17,386 | (3,220) |
Loan Sales | $ 1,586,715 | $ 1,841,891 |
Sales margin (fee-based services as a % of loan sales) | 1.18% | 1.57% |
MSR rate (MSR income as a % of loan commitments) | 1.57% | 2.53% |
SFR - Fixed Rate | ||
Segment Information | ||
Origination Volumes | $ 4,871 | |
Private Label | ||
Loan Sales Data: | ||
Gain (loss) on derivative instruments, net | 17,100 | |
FHA | ||
Loan Sales Data: | ||
Loan Sales | 71,816 | $ 66,403 |
Structured Transaction Business | ||
Segment Information | ||
Total new loan originations | 2,828,855 | 1,087,926 |
Loan payoffs / paydowns | 666,551 | 233,028 |
Structured Transaction Business | Bridge Loans | ||
Segment Information | ||
Total new loan originations | 2,820,716 | 1,005,688 |
Structured Transaction Business | Mezzanine Loans | ||
Segment Information | ||
Total new loan originations | 8,139 | 56,000 |
Structured Transaction Business | Other loans | ||
Segment Information | ||
Total new loan originations | 26,238 | |
Structured Transaction Business | SFR - Fixed Rate | Bridge Loans | ||
Segment Information | ||
Loans committed | $ 83,300 | $ 98,400 |
Number of loans under the loan portfolio | loan | 35 | 18 |
Total loan commitment | $ 133,400 | $ 43,300 |
Agency Business | ||
Segment Information | ||
Origination Volumes | 838,509 | 1,397,634 |
Agency Business | SFR - Fixed Rate | ||
Loan Sales Data: | ||
Loan Sales | 63,298 | |
Agency Business | Fannie Mae | ||
Segment Information | ||
Origination Volumes | 449,680 | 1,063,983 |
Loan Sales Data: | ||
Loan Sales | 666,544 | 1,437,366 |
Agency Business | Private Label | ||
Segment Information | ||
Origination Volumes | 299,072 | 114,717 |
Agency Business | Freddie Mac | ||
Segment Information | ||
Origination Volumes | 72,896 | 152,454 |
Loan Sales Data: | ||
Loan Sales | 489,269 | |
Agency Business | FHA | ||
Segment Information | ||
Origination Volumes | 11,990 | 66,480 |
Loan Sales Data: | ||
Loan Sales | $ 359,086 | $ 274,824 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Segment Information | ||
Servicing Portfolio UPB | $ 26,964,617 | $ 26,959,389 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.443% | 44.90% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 9 months 18 days | 8 years 9 months 18 days |
SFR - Fixed Rate | ||
Segment Information | ||
Servicing Portfolio UPB | $ 190,590 | |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | |
Wtd. Avg. Life of Servicing Portfolio (in years) | 6 years 4 months 24 days | |
Fannie Mae | ||
Segment Information | ||
Servicing Portfolio UPB | $ 18,781,611 | $ 19,127,397 |
Wtd. Avg. Servicing Fee Rate (basis points) | 53.40% | 53.50% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 1 month 6 days | 8 years |
Freddie Mac | ||
Segment Information | ||
Servicing Portfolio UPB | $ 4,792,764 | $ 4,943,905 |
Wtd. Avg. Servicing Fee Rate (basis points) | 26.70% | 27.10% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years 3 months 18 days | 9 years 3 months 18 days |
Private Label | ||
Segment Information | ||
Servicing Portfolio UPB | $ 2,200,206 | $ 1,711,326 |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | 20.00% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 4 months 24 days | 8 years 3 months 18 days |
Private Label | SFR - Fixed Rate | ||
Segment Information | ||
Servicing Portfolio UPB | $ 191,698 | |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | |
Wtd. Avg. Life of Servicing Portfolio (in years) | 6 years 6 months | |
FHA | ||
Segment Information | ||
Servicing Portfolio UPB | $ 999,446 | $ 985,063 |
Wtd. Avg. Servicing Fee Rate (basis points) | 15.30% | 15.40% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 20 years 10 months 24 days | 21 years |