Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 20, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 188,501,642 | |
Entity Central Index Key | 0001253986 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABR | |
Security Exchange Name | NYSE | |
Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share | ||
Entity 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 | |
Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share | ||
Entity 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 | |
Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | |
Trading Symbol | ABR-PF | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 895,298 | $ 534,357 |
Restricted cash | 419,158 | 713,808 |
Loans and investments, net (allowance for credit losses of $184,069 and $132,559) | 12,892,796 | 14,254,674 |
Loans held-for-sale, net | 364,320 | 354,070 |
Capitalized mortgage servicing rights, net | 392,203 | 401,471 |
Securities held-to-maturity, net (allowance for credit losses of $5,943 and $3,153) | 155,172 | 156,547 |
Investments in equity affiliates | 62,795 | 79,130 |
Goodwill and other intangible assets | 92,551 | 96,069 |
Other assets | 416,741 | 371,440 |
Total assets | 15,902,689 | 17,038,985 |
Liabilities: | ||
Credit and repurchase facilities | 3,391,441 | 3,841,814 |
Securitized debt | 7,004,634 | 7,849,270 |
Senior unsecured notes | 1,332,926 | 1,385,994 |
Convertible senior unsecured notes | 282,428 | 280,356 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 143,695 | 143,128 |
Due to borrowers | 114,660 | 61,237 |
Allowance for loss-sharing obligations | 69,261 | 57,168 |
Other liabilities | 320,973 | 335,789 |
Total liabilities | 12,662,188 | 13,967,106 |
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 - 16,293,589 shares, 6.375% Series D - 9,200,000 shares, 6.25% Series E - 5,750,000 shares, 6.25% Series F - 11,342,000 shares | 633,684 | 633,684 |
Common stock, $0.01 par value: 500,000,000 shares authorized - 188,501,642 and 178,230,522 shares issued and outstanding | 1,885 | 1,782 |
Additional paid-in capital | 2,364,395 | 2,204,481 |
Retained earnings | 104,821 | 97,049 |
Total Arbor Realty Trust, Inc. stockholders' equity | 3,104,785 | 2,936,996 |
Noncontrolling interest | 135,716 | 134,883 |
Total equity | 3,240,501 | 3,071,879 |
Total liabilities and equity | 15,902,689 | 17,038,985 |
Related Party | ||
Assets: | ||
Due from related party | 211,655 | 77,419 |
Liabilities: | ||
Due to related party | $ 2,170 | $ 12,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Loans and investments, allowance for credit losses | $ 184,069 | $ 132,559 |
Securities held-to-maturity, allowance for credit losses | $ 5,943 | $ 3,153 |
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) | 188,501,642 | 178,230,522 |
Common stock, shares outstanding (in shares) | 188,501,642 | 178,230,522 |
Assets of consolidated VIEs | $ 15,902,689 | $ 17,038,985 |
Liabilities of consolidated VIEs | 12,662,188 | 13,967,106 |
Consolidated VIEs | ||
Assets of consolidated VIEs | 8,689,298 | 9,785,261 |
Liabilities of consolidated VIEs | $ 7,027,893 | $ 7,876,024 |
Special voting preferred shares | ||
Preferred stock, shares issued (in shares) | 16,293,589 | 16,293,589 |
Series D preferred stock | ||
Preferred stock, shares issued (in shares) | 9,200,000 | 9,200,000 |
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% |
Series E preferred stock | ||
Preferred stock, shares issued (in shares) | 5,750,000 | 5,750,000 |
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
Series F preferred stock | ||
Preferred stock, shares issued (in shares) | 11,342,000 | 11,342,000 |
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Interest income | $ 336,474 | $ 259,778 | $ 1,000,159 | $ 627,804 |
Interest expense | 229,180 | 160,452 | 675,749 | 350,079 |
Net interest income | 107,294 | 99,326 | 324,410 | 277,725 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 18,619 | 14,360 | 55,795 | 32,526 |
Mortgage servicing rights | 14,109 | 19,408 | 48,769 | 52,287 |
Servicing revenue, net | 35,463 | 22,744 | 97,376 | 64,513 |
Property operating income | 1,450 | 445 | 4,261 | 1,031 |
Gain (loss) on derivative instruments, net | (421) | (15,909) | (3,582) | 10,083 |
Other income (loss), net | 173 | (6,014) | 5,099 | (16,061) |
Total other revenue | 69,393 | 35,034 | 207,718 | 144,379 |
Other expenses: | ||||
Employee compensation and benefits | 39,810 | 38,811 | 123,518 | 119,736 |
Selling and administrative | 12,367 | 13,225 | 38,574 | 40,960 |
Property operating expenses | 1,479 | 366 | 4,227 | 1,443 |
Depreciation and amortization | 2,286 | 2,078 | 7,297 | 6,092 |
Provision for loss sharing (net of recoveries) | 1,679 | 412 | 12,528 | (2,199) |
Provision for credit losses (net of recoveries) | 18,652 | 2,274 | 55,047 | 9,700 |
Total other expenses | 76,273 | 57,166 | 241,191 | 175,732 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 100,414 | 77,194 | 290,937 | 246,372 |
Loss on extinguishment of debt | (314) | (3,262) | (1,561) | (4,612) |
Income from equity affiliates | 809 | 4,748 | 20,694 | 18,507 |
(Provision for) benefit from income taxes | (5,854) | 374 | (19,436) | (13,166) |
Net income | 95,055 | 79,054 | 290,634 | 247,101 |
Preferred stock dividends | 10,342 | 10,342 | 31,027 | 30,612 |
Net income attributable to noncontrolling interest | 6,789 | 6,002 | 21,200 | 19,811 |
Net income attributable to common stockholders | $ 77,924 | $ 62,710 | $ 238,407 | $ 196,678 |
Earnings per common share | ||||
Basic earnings per common share (in dollars per share) | $ 0.42 | $ 0.37 | $ 1.30 | $ 1.21 |
Diluted earnings per common share (in dollars per share) | $ 0.41 | $ 0.36 | $ 1.28 | $ 1.18 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 187,023,395 | 170,227,553 | 183,340,149 | 162,292,235 |
Diluted (in shares) | 221,328,818 | 205,865,016 | 217,457,399 | 195,529,340 |
Dividends declared per common share (in dollars per share) | $ 0.43 | $ 0.39 | $ 1.25 | $ 1.14 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series F preferred stock | Total Arbor Realty Trust, Inc. Stockholders’ Equity | Total Arbor Realty Trust, Inc. Stockholders’ Equity Series F preferred stock | Preferred Stock | Preferred Stock Series F preferred stock | Common stock | Additional Paid-in Capital | Additional Paid-in Capital Series F preferred stock | Retained Earnings | Noncontrolling Interest |
Balance beginning (in shares) at Dec. 31, 2021 | 39,325,095 | 151,362,181 | |||||||||
Balance beginning at Dec. 31, 2021 | $ 2,547,537 | $ 2,415,050 | $ 556,163 | $ 1,514 | $ 1,789,229 | $ 68,144 | $ 132,487 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock and Series F preferred stock (in shares) | 3,292,000 | 19,625,788 | |||||||||
Issuance of common stock and Series F preferred stock | 312,766 | $ 77,392 | 312,766 | $ 77,392 | $ 77,522 | $ 196 | 312,570 | $ (130) | |||
Stock-based compensation, net (in shares) | (535,839) | ||||||||||
Stock-based compensation, net | 4,245 | 4,245 | $ 5 | 4,240 | |||||||
Distributions - common stock | (185,285) | (185,285) | (185,285) | ||||||||
Distributions - preferred stock | (30,618) | (30,618) | (30,618) | ||||||||
Distributions - noncontrolling interest | (18,586) | (18,586) | |||||||||
Redemption - operating partnership units (in shares) | (31,506) | ||||||||||
Redemption - operating partnership units | (546) | (1) | $ (1) | (545) | |||||||
Net income | 247,101 | 227,290 | 227,290 | 19,811 | |||||||
Balance ending (in shares) at Sep. 30, 2022 | 42,585,589 | 171,523,808 | |||||||||
Balance ending at Sep. 30, 2022 | 2,954,006 | 2,820,839 | $ 633,684 | $ 1,715 | 2,105,909 | 79,531 | 133,167 | ||||
Balance beginning (in shares) at Jun. 30, 2022 | 42,585,589 | 168,454,805 | |||||||||
Balance beginning at Jun. 30, 2022 | 2,912,996 | 2,779,477 | $ 633,684 | $ 1,685 | 2,060,837 | 83,271 | 133,519 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock and Series F preferred stock (in shares) | 3,170,688 | ||||||||||
Issuance of common stock and Series F preferred stock | 44,522 | 44,522 | $ 31 | 44,491 | |||||||
Stock-based compensation, net (in shares) | (101,685) | ||||||||||
Stock-based compensation, net | 580 | 580 | $ (1) | 581 | |||||||
Distributions - common stock | (66,447) | (66,447) | (66,447) | ||||||||
Distributions - preferred stock | (10,345) | (10,345) | (10,345) | ||||||||
Distributions - noncontrolling interest | (6,354) | (6,354) | |||||||||
Net income | 79,054 | 73,052 | 73,052 | 6,002 | |||||||
Balance ending (in shares) at Sep. 30, 2022 | 42,585,589 | 171,523,808 | |||||||||
Balance ending at Sep. 30, 2022 | 2,954,006 | 2,820,839 | $ 633,684 | $ 1,715 | 2,105,909 | 79,531 | 133,167 | ||||
Balance beginning (in shares) at Dec. 31, 2022 | 42,585,589 | 178,230,522 | |||||||||
Balance beginning at Dec. 31, 2022 | 3,071,879 | 2,936,996 | $ 633,684 | $ 1,782 | 2,204,481 | 97,049 | 134,883 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock and Series F preferred stock (in shares) | 13,113,296 | ||||||||||
Issuance of common stock and Series F preferred stock | 193,660 | 193,660 | $ 130 | 193,530 | |||||||
Repurchase of common stock (in shares) | (3,545,604) | ||||||||||
Repurchase - common stock | (37,432) | (37,432) | $ (36) | (37,396) | |||||||
Stock-based compensation, net (in shares) | (703,428) | ||||||||||
Stock-based compensation, net | 3,789 | 3,789 | $ 9 | 3,780 | |||||||
Distributions - common stock | (230,632) | (230,632) | (230,632) | ||||||||
Distributions - preferred stock | (31,030) | (31,030) | (31,030) | ||||||||
Distributions - noncontrolling interest | (20,367) | (20,367) | |||||||||
Net income | 290,634 | 269,434 | 269,434 | 21,200 | |||||||
Balance ending (in shares) at Sep. 30, 2023 | 42,585,589 | 188,501,642 | |||||||||
Balance ending at Sep. 30, 2023 | 3,240,501 | 3,104,785 | $ 633,684 | $ 1,885 | 2,364,395 | 104,821 | 135,716 | ||||
Balance beginning (in shares) at Jun. 30, 2023 | 42,585,589 | 183,067,388 | |||||||||
Balance beginning at Jun. 30, 2023 | 3,159,641 | 3,023,708 | $ 633,684 | $ 1,831 | 2,280,632 | 107,561 | 135,933 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock and Series F preferred stock (in shares) | 5,576,496 | ||||||||||
Issuance of common stock and Series F preferred stock | 83,992 | 83,992 | $ 55 | 83,937 | |||||||
Stock-based compensation, net (in shares) | (142,242) | ||||||||||
Stock-based compensation, net | (175) | (175) | $ (1) | (174) | |||||||
Distributions - common stock | (80,660) | (80,660) | (80,660) | ||||||||
Distributions - preferred stock | (10,346) | (10,346) | (10,346) | ||||||||
Distributions - noncontrolling interest | (7,006) | (7,006) | |||||||||
Net income | 95,055 | 88,266 | 88,266 | 6,789 | |||||||
Balance ending (in shares) at Sep. 30, 2023 | 42,585,589 | 188,501,642 | |||||||||
Balance ending at Sep. 30, 2023 | $ 3,240,501 | $ 3,104,785 | $ 633,684 | $ 1,885 | $ 2,364,395 | $ 104,821 | $ 135,716 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 290,634 | $ 247,101 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,297 | 6,092 |
Stock-based compensation | 12,141 | 12,330 |
Amortization and accretion of interest and fees, net | (3,084) | (10,022) |
Amortization of capitalized mortgage servicing rights | 46,920 | 44,532 |
Originations of loans held-for-sale | (3,619,570) | (3,232,962) |
Proceeds from sales of loans held-for-sale, net of gain on sale | 3,607,665 | 3,699,555 |
Mortgage servicing rights | (48,769) | (52,287) |
Write-off of capitalized mortgage servicing rights from payoffs | 11,764 | 37,318 |
Provision for loss sharing (net of recoveries) | 12,528 | (2,199) |
Provision for credit losses (net of recoveries) | 55,047 | 9,700 |
Net charge-offs for loss sharing obligations | (434) | (354) |
Deferred tax benefit | (6,630) | (7,833) |
Income from equity affiliates | (20,694) | (18,507) |
Distributions from operations of equity affiliates | 22,507 | 16,546 |
Change in fair value of held-for-sale loans | (1,634) | 12,163 |
Loss on extinguishment of debt | 1,561 | 4,612 |
Payoffs and paydowns of loans held-for-sale | 463 | 58,339 |
Loss on sale of loans | 0 | 10,120 |
Changes in operating assets and liabilities | (209,214) | (23,138) |
Net cash provided by operating activities | 158,498 | 811,106 |
Investing Activities: | ||
Loans and investments funded, originated and purchased, net | (1,061,865) | (5,418,113) |
Payoffs and paydowns of loans and investments | 2,541,373 | 2,302,874 |
Proceeds from sale of loans and investments | 0 | 397,338 |
Deferred fees | 13,624 | 50,385 |
Contributions to equity affiliates | (1,029) | (16,730) |
Distributions from equity affiliates | 15,552 | 24,321 |
Purchase of securities held-to-maturity, net | 0 | (27,598) |
Payoffs and paydowns of securities held-to-maturity | 3,544 | 16,676 |
Due to borrowers and reserves | (92,358) | (152,036) |
Net cash provided by (used in) investing activities | 1,418,841 | (2,822,883) |
Financing activities: | ||
Proceeds from credit and repurchase facilities | 6,575,575 | 8,474,821 |
Paydowns and payoffs of credit and repurchase facilities | (7,033,287) | (8,325,608) |
Payoffs and paydowns of securitized debt | (856,864) | (441,000) |
Proceeds from issuance of common stock | 193,660 | 312,766 |
Proceeds from issuance of senior unsecured notes | 95,000 | 0 |
Payoffs and paydowns of senior unsecured notes | (149,600) | 0 |
Payments of withholding taxes on net settlement of vested stock | (8,352) | (8,085) |
Repurchase of common stock | (37,432) | 0 |
Distributions to stockholders | (282,029) | (234,246) |
Payment of deferred financing costs | (7,719) | (35,267) |
Proceeds from issuance of securitized debt | 0 | 2,525,624 |
Proceeds from issuance of convertible senior unsecured notes | 0 | 287,500 |
Extinguishment of convertible senior unsecured notes | 0 | (200,662) |
Proceeds from issuance of preferred stock | 0 | 77,392 |
Redemption of operating partnership units | 0 | (546) |
Net cash (used in) provided by financing activities | (1,511,048) | 2,432,689 |
Net increase in cash, cash equivalents and restricted cash | 66,291 | 420,912 |
Cash, cash equivalents and restricted cash at beginning of period | 1,248,165 | 891,270 |
Cash, cash equivalents and restricted cash at end of period | 1,314,456 | 1,312,182 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents at beginning of period | 534,357 | 404,580 |
Restricted cash at beginning of period | 713,808 | 486,690 |
Cash, cash equivalents and restricted cash at beginning of period | 1,248,165 | 891,270 |
Cash and cash equivalents at end of period | 895,298 | 389,651 |
Restricted cash at end of period | 419,158 | 922,531 |
Cash, cash equivalents and restricted cash at end of period | 1,314,456 | 1,312,182 |
Supplemental cash flow information: | ||
Cash used to pay interest | 654,108 | 306,671 |
Cash used to pay taxes | 22,916 | 25,770 |
Supplemental schedule of non-cash investing and financing activities: | ||
Distributions accrued on preferred stock | 7,010 | 7,010 |
Cumulative-effect adjustment (adoption of convertible debt standard) | $ 0 | $ 2,447 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Arbor Realty Trust, Inc. (“we,” “us,” or “our”) is a Maryland corporation formed in 2003. We are a nationwide real estate investment trust (“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 loans, in addition to mezzanine loans, 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 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 | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The 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 2022 Annual Report. Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other entities 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. The ultimate impact of inflation, increasing interest rates, bank failures, tightening of capital markets and reduced property values, both globally and to our business, makes any estimate or assumption at September 30, 2023 inherently less certain. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 requirement 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 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common Control Arrangements and ASU 2023-02, Investments – Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, both effective for us in the first quarter of 2024. In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which is effective for joint venture entities with a formation date on or after January 1, 2025. We currently do not have any transactions that fall under the scope of these ASUs; therefore, the adoptions are not expected to have an impact on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2022 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2022. |
Loans and Investments
Loans and Investments | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Investments | |
Loans and Investments | Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): September 30, 2023 Percent of Loan Wtd. Avg. Wtd. Avg. Wtd. Avg. Wtd. Avg. Bridge loans (4) $ 12,790,972 97 % 664 8.85 % 13.8 0 % 77 % Mezzanine loans 233,805 2 % 47 8.35 % 54.7 45 % 79 % Preferred equity investments 87,924 1 % 10 3.03 % 62.0 47 % 84 % Other loans (5) 9,694 <1% 2 9.72 % 15.6 0 % 62 % 13,122,395 100 % 723 8.80 % 14.9 1 % 77 % Allowance for credit losses (184,069) Unearned revenue (45,530) Loans and investments, net $ 12,892,796 December 31, 2022 Bridge loans (4) $ 14,096,054 98 % 692 8.17 % 19.8 0 % 76 % Mezzanine loans 213,499 1 % 44 8.13 % 63.1 42 % 77 % Preferred equity investments 110,725 1 % 8 7.63 % 39.2 46 % 79 % Other loans (5) 35,845 <1% 3 8.76 % 32.8 0 % 58 % 14,456,123 100 % 747 8.17 % 20.6 1 % 76 % Allowance for credit losses (132,559) Unearned revenue (68,890) Loans and investments, net $ 14,254,674 ________________________ (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 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 September 30, 2023 and December 31, 2022, bridge loans included 311 and 241, respectively, of SFR loans with a total gross loan commitment of $2.05 billion and $1.57 billion, respectively, of which $1.16 billion and $927.4 million, respectively, was funded. (5) Other loans represents variable rate SFR permanent loans. Concentration of Credit Risk We are subject to concentration risk in that, at September 30, 2023, the UPB related to 92 loans with five different borrowers represented 12% of total assets. At December 31, 2022, the UPB related to 38 loans with five different borrowers represented 11% of total assets. During both the three and nine months ended September 30, 2023 and the year ended December 31, 2022, 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 at September 30, 2023 is as follows ($ in thousands): UPB by Origination Year Total Wtd. Avg. Wtd. Avg. Asset Class / Risk Rating 2023 2022 2021 2020 2019 Prior Multifamily: Pass $ 97,186 $ 131,266 $ 97,269 $ 2,010 $ — $ 20,300 $ 348,031 Pass/Watch 673,165 2,378,519 3,015,502 81,560 112,416 58,394 6,319,556 Special Mention 799 1,830,803 2,353,938 219,050 140,685 — 4,545,275 Substandard — 290,492 153,697 24,099 — — 468,288 Doubtful — — 13,930 — 9,765 — 23,695 Total Multifamily $ 771,150 $ 4,631,080 $ 5,634,336 $ 326,719 $ 262,866 $ 78,694 $ 11,704,845 1 % 78 % Single-Family Rental: Percentage of portfolio 89 % Pass $ 22,208 $ — $ — $ — $ — $ — $ 22,208 Pass/Watch 161,976 466,391 355,176 86,347 20,965 — 1,090,855 Special Mention — 22,924 12,852 24,503 — — 60,279 Total Single-Family Rental $ 184,184 $ 489,315 $ 368,028 $ 110,850 $ 20,965 $ — $ 1,173,342 0 % 63 % Land: Percentage of portfolio 9 % Pass/Watch $ — $ — $ — $ 4,600 $ — $ — $ 4,600 Special Mention — — — 3,500 — — 3,500 Substandard — — — — — 127,928 127,928 Total Land $ — $ — $ — $ 8,100 $ — $ 127,928 $ 136,028 0 % 98 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ — $ 35,410 $ — $ — $ 35,410 Substandard — — — — — 45,025 45,025 Total Office $ — $ — $ — $ 35,410 $ — $ 45,025 $ 80,435 0 % 90 % Retail: Percentage of portfolio 1 % Pass/Watch $ — $ — $ — $ — $ 4,000 $ — $ 4,000 Special Mention — — — — — 3,445 3,445 Substandard — — — — — 18,600 18,600 Total Retail $ — $ — $ — $ — $ 4,000 $ 22,045 $ 26,045 11 % 71 % Other: Percentage of portfolio < 1% Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Other $ — $ — $ — $ — $ — $ 1,700 $ 1,700 63 % 63 % Percentage of portfolio < 1% Grand Total $ 955,334 $ 5,120,395 $ 6,002,364 $ 481,079 $ 287,831 $ 275,392 $ 13,122,395 1 % 77 % Geographic Concentration Risk At September 30, 2023, underlying properties in Texas and Florida represented 24% and 16%, respectively, of the outstanding balance of our loan and investment portfolio. At December 31, 2022, underlying properties in Texas and Florida represented 22% and 14%, 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 September 30, 2023 Multifamily Land Office Retail Commercial Single-Family Rental Other Total Allowance for credit losses: Beginning balance $ 74,295 $ 77,902 $ 8,246 $ 5,819 $ 1,700 $ 1,077 $ 15 $ 169,054 Provision for credit losses (net of recoveries) 14,884 60 (76) — — 162 (15) 15,015 Ending balance $ 89,179 $ 77,962 $ 8,170 $ 5,819 $ 1,700 $ 1,239 $ — $ 184,069 Three Months Ended September 30, 2022 Allowance for credit losses: Beginning balance $ 27,958 $ 77,918 $ 7,031 $ 5,819 $ 1,700 $ 725 $ 180 $ 121,331 Provision for credit losses (net of recoveries) (675) (8) 306 — — 1,326 16 965 Ending balance $ 27,283 $ 77,910 $ 7,337 $ 5,819 $ 1,700 $ 2,051 $ 196 $ 122,296 Nine Months Ended September 30, 2023 Allowance for credit losses: Beginning balance $ 37,961 $ 78,068 $ 8,162 $ 5,819 $ 1,700 $ 781 $ 68 $ 132,559 Provision for credit losses (net of recoveries) 51,218 (106) 8 — — 458 (68) 51,510 Ending balance $ 89,179 $ 77,962 $ 8,170 $ 5,819 $ 1,700 $ 1,239 $ — $ 184,069 Nine Months Ended September 30, 2022 Allowance for credit losses: Beginning balance $ 18,707 $ 77,970 $ 8,073 $ 5,819 $ 1,700 $ 320 $ 652 $ 113,241 Provision for credit losses (net of recoveries) 8,576 (60) (736) — — 1,731 (456) 9,055 Ending balance $ 27,283 $ 77,910 $ 7,337 $ 5,819 $ 1,700 $ 2,051 $ 196 $ 122,296 During the three and nine months ended September 30, 2023, we recorded a $15.0 million and a $51.5 million provision for credit losses, respectively. The increase in the provision for credit losses during the three and nine months ended September 30, 2023 was primarily attributable to the impact from the macroeconomic outlook of the commercial real estate market. 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, higher unemployment forecasts, and continuing inflationary pressures, including an estimated continual decline in real estate values and other market factors. 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 is adjusted quarterly and corresponds with the associated outstanding loans. At September 30, 2023 and December 31, 2022, we had outstanding unfunded commitments of $1.08 billion and $1.15 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. At September 30, 2023 and December 31, 2022, accrued interest receivable related to our loans totaling $116.4 million and $108.5 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets. All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows ($ in thousands): September 30, 2023 Asset Class UPB (1) Carrying Allowance for Wtd. Avg. First Wtd. Avg. Last Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Multifamily 90,070 87,995 17,750 0 % 100 % Office 45,025 45,025 7,951 0 % 99 % Retail 22,045 17,670 5,817 13 % 78 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 293,055 $ 280,258 $ 111,087 1 % 97 % December 31, 2022 Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,563 5,817 14 % 79 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 157,960 $ 147,131 $ 85,386 3 % 96 % ________________________ (1) Represents the UPB of thirteen and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2023 and December 31, 2022, respectively. There were no loans for which the fair value of the collateral securing the loan was less than the carrying value of the loan for which we had not recorded a provision for credit loss at September 30, 2023 and December 31, 2022. Loans are classified as non-performing once the contractual payments reach 60 days past due. 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. At September 30, 2023, twelve loans with an aggregate net carrying value of $137.9 million, net of loan loss reserves of $12.6 million, were classified as non-performing and, at December 31, 2022, four loans with an aggregate net carrying value of $2.6 million, net of related loan loss reserves of $5.1 million, were classified as non-performing. A summary of our non-performing loans by asset class is as follows (in thousands): September 30, 2023 December 31, 2022 UPB Less Than Greater Than UPB Less Than Greater Than Multifamily $ 152,717 $ 122,847 $ 29,870 $ 2,605 $ — $ 2,605 Retail 3,445 — 3,445 3,445 — 3,445 Commercial 1,700 — 1,700 1,700 — 1,700 Total $ 157,862 $ 122,847 $ 35,015 $ 7,750 $ — $ 7,750 At both September 30, 2023 and December 31, 2022, we had no loans contractually past due 90 days or more that are still accruing interest. During the nine months ended September 30, 2023 and 2022, we received $2.8 million and zero, respectively, of interest income on non-accrual loans. In addition, we have six loans with a carrying value totaling $121.4 million at September 30, 2023, 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 $112.1 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 September 30, 2023 and December 31, 2022, 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 compliant with all of the terms and conditions of the loans. In the second quarter of 2023, a borrower of a $70.5 million multifamily bridge loan, with an interest rate of SOFR plus 3.40% and a maturity date of September 2024, defaulted on its interest payments and, as a result, this loan was classified as a non-performing loan. In September 2023, the borrower sold the underlying property to a third party who assumed our loan. At the time of the property sale, we entered into a loan modification agreement with the new borrower to extend the maturity to September 2025 and reduce the interest rate to a fixed pay rate of 3.00% and an accrual rate of 3.00% for a total fixed rate of 6.00% for a period of eighteen months, after which the interest rate resumes to the original rate for the duration of the loan. The new borrower was also required to fund $10.5 million over time: $2.5 million in interest reserves, which was funded at the closing of the loan assumption, and $8.0 million in capital improvements within fifteen months. If the new borrower fails to timely complete the required capital improvements, it will be required to fund a renovation reserve at the lesser of (1) $2.5 million and (2) the difference between the $8.0 million capital commitment and the costs actually incurred for such capital improvements. The key principal is also personally guaranteeing the $8.0 million capital improvement. There were no other loan modifications, refinancings and/or extensions during the three and nine months ended September 30, 2022 to borrowers experiencing financial difficulty. In April 2023, we exercised our right to foreclose on a group of properties in Houston, Texas that are the underlying collateral for four bridge loans with a total UPB of $217.4 million. We simultaneously sold these properties to a significant equity investor in the original bridge loans and provided new bridge loan financing as part of the sale. We did not record a loss on the original bridge loans and recovered all the outstanding interest owed to us as part of this restructuring. During the second quarter of 2022, we sold a bridge loan and mezzanine loans totaling $110.5 million, that were collateralized by a land development project, at a discount for $102.2 million. In connection with this transaction, we had $66.3 million of capital returned to us to be used in future investments and recorded a $9.2 million loss (including fees and expenses), which was included in other income (loss), net on the consolidated statements of income. We have the potential to recover up to $2.8 million depending on the future performance of the loan. In July 2022, we sold four bridge loans with an aggregate UPB of $296.9 million at par less shared loan origination fees and selling costs totaling $2.0 million and had $78.0 million of capital returned to us to be used in future investments. The shared loan origination fees and selling costs were recorded as an unrealized impairment loss in the second quarter of 2022 and included in other income (loss), net on the consolidated statements of income. We have retained the right to service these loans. During the three months ended June 30, 2023, we repurchased two of these bridge loans with an aggregate UPB of $182.0 million at par. 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 September 30, 2023 and December 31, 2022, we had total interest reserves of $125.8 million and $123.7 million, respectively, on 516 loans and 480 loans, respectively, with an aggregate UPB of $8.31 billion and $7.70 billion, respectively. |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivable, Held-for-Sale [Abstract] | |
Loans Held-for-Sale, Net | Loans Held-for-Sale, Net Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our non-GSE loans are generally expected to be sold to third parties or securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Fannie Mae $ 257,371 $ 173,020 Freddie Mac 86,089 8,938 Private Label 11,350 152,735 SFR - Fixed Rate 8,710 12,352 FHA 4,810 21,021 368,330 368,066 Fair value of future MSR 4,302 5,557 Unrealized impairment loss (2,891) (15,703) Unearned discount (5,421) (3,850) Loans held-for-sale, net $ 364,320 $ 354,070 During the three and nine months ended September 30, 2023, we sold $1.28 billion and $3.62 billion of loans held-for-sale, respectively, and $1.08 billion and $3.70 billion during the three and nine months ended September 30, 2022, respectively. Included in the total loans sold during 2022 were $489.3 million of Private Label loans that were sold to unconsolidated affiliates of ours who securitized the loans. We retained the most subordinate class of certificates in this securitization totaling $43.4 million in satisfaction of credit risk retention requirements and we are also the primary servicer of the mortgage loans. During 2022, we recorded a loss of $5.2 million (net of corresponding swap gains associated with these loans) on seven Private Label loans with a UPB of $129.9 million and a net carrying value of $116.4 million. During the first quarter of 2023, we sold these loans and recorded a gain of $0.9 million. During the three months ended June 30, 2022, we determined that the fair value of certain loans held-for-sale were below their carrying values and, based on the fair value analysis performed, we recorded an unrealized impairment loss of $4.1 million. The unrealized impairment loss was included in other income (loss), net on the consolidated statements of income. At September 30, 2023 and December 31, 2022, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Capitalized Mortgage Servicing Rights | Capitalized Mortgage Servicing Rights Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived primarily 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 8.6 years at September 30, 2023 and December 31, 2022, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Originated Acquired Total Originated Acquired Total Beginning balance $ 383,267 $ 11,143 $ 394,410 $ 386,878 $ 14,593 $ 401,471 Additions 16,550 — 16,550 49,416 — 49,416 Amortization (14,988) (912) (15,900) (43,866) (3,054) (46,920) Write-downs and payoffs (2,400) (457) (2,857) (9,999) (1,765) (11,764) Ending balance $ 382,429 $ 9,774 $ 392,203 $ 382,429 $ 9,774 $ 392,203 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Beginning balance $ 391,397 $ 20,137 $ 411,534 $ 395,573 $ 27,161 $ 422,734 Additions 18,907 — 18,907 63,002 — 63,002 Amortization (13,355) (1,427) (14,782) (39,348) (5,184) (44,532) Write-downs and payoffs (9,957) (1,816) (11,773) (32,235) (5,083) (37,318) Ending balance $ 386,992 $ 16,894 $ 403,886 $ 386,992 $ 16,894 $ 403,886 We collected prepayment fees totaling $1.0 million and $6.1 million during the three and nine months ended September 30, 2023, respectively, and $11.2 million and $42.6 million during the three and nine months ended September 30, 2022, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. At September 30, 2023 and December 31, 2022, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded at September 30, 2023 is as follows (in thousands): Year Amortization 2023 (three months ending 12/31/2023) $ 16,169 2024 63,855 2025 60,481 2026 54,479 2027 49,654 2028 43,110 Thereafter 104,455 Total $ 392,203 Based on scheduled maturities, actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing | Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): September 30, 2023 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total Fannie Mae $ 20,463,620 68 % Texas 11 % Freddie Mac 5,184,888 17 % New York 11 % Private Label 2,371,475 8 % North Carolina 8 % FHA 1,322,832 5 % California 8 % Bridge (2) 305,950 1 % Georgia 6 % SFR - Fixed Rate 287,942 1 % Florida 6 % Total $ 29,936,707 100 % New Jersey 5 % Illinois 4 % Other (3) 41 % Total 100 % December 31, 2022 Fannie Mae $ 19,038,124 68 % Texas 11 % Freddie Mac 5,153,207 18 % New York 11 % Private Label 2,074,859 8 % California 8 % FHA 1,155,893 4 % North Carolina 8 % Bridge (2) 301,182 1 % Georgia 6 % SFR - Fixed Rate 274,764 1 % Florida 5 % Total $ 27,998,029 100 % New Jersey 5 % Illinois 4 % Other (3) 42 % Total 100 % ________________________ (1) Excludes loans which we are not collecting a servicing fee. (2) Represents bridge loans that were either sold by our Structured Business or refinanced by a third-party lender which we retained the right to service. (3) No other individual state represented 4% or more of the total. At September 30, 2023 and December 31, 2022, our weighted average servicing fee was 39.7 basis points and 41.1 basis points, respectively. At both September 30, 2023 and December 31, 2022, we held total escrow balances (including unfunded collateralized loan obligation holdbacks) of approximately $1.7 billion, of which approximately $1.6 billion and $1.5 billion, respectively, are not included in our consolidated balance sheets. 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, which is 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, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table. The components of servicing revenue, net are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Servicing fees $ 32,191 $ 30,631 $ 92,479 $ 93,702 Interest earned on escrows 20,985 7,450 57,501 10,073 Prepayment fees 1,044 11,218 6,080 42,588 Write-offs of MSRs (2,857) (11,773) (11,764) (37,318) Amortization of MSRs (15,900) (14,782) (46,920) (44,532) Servicing revenue, net $ 35,463 $ 22,744 $ 97,376 $ 64,513 |
Securities Held-To-Maturity
Securities Held-To-Maturity | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract] | |
Securities Held-to-Maturity | Securities Held-to-Maturity Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At September 30, 2023, we held APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 6.8 years. The weighted average effective interest rate was 8.85% at both September 30, 2023 and December 31, 2022, including the accretion of a portion of the discount deemed collectible. At September 30, 2023, approximately $18.2 million is estimated to mature after one year through five years and $174.6 million is estimated to mature after five years through ten years. Agency B Piece Bonds. Freddie Mac may choose to hold, sell or securitize loans we sell to them under the Freddie Mac SBL program. As part of the securitizations under the SBL program, we have the ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. At September 30, 2023, we held 49%, or $106.2 million initial face value, of seven B Piece bonds, which were purchased at a discount for $74.7 million, and sold the remaining 51% to a third party. These securities are collateralized by a pool of multifamily mortgage loans, bear interest at an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 5.9 years. The weighted average effective interest rate was 11.19% and 12.20% at September 30, 2023 and December 31, 2022, respectively, including the accretion of a portion of the discount deemed collectible. At September 30, 2023, approximately $7.5 million is estimated to mature within one year, $14.8 million is estimated to mature after one year through five years and $16.5 million is estimated to mature after ten years. A summary of our securities held-to-maturity is as follows (in thousands): Face Value Net Carrying Unrealized Estimated Allowance for September 30, 2023 APL certificates $ 192,791 $ 127,547 $ (33,337) $ 94,210 $ 2,340 B Piece bonds 38,786 27,625 4,773 32,398 3,603 Total $ 231,577 $ 155,172 $ (28,564) $ 126,608 $ 5,943 December 31, 2022 APL certificates $ 192,791 $ 123,475 $ (13,348) $ 110,127 $ 2,783 B Piece bonds 41,464 33,072 1,372 34,444 370 Total $ 234,255 $ 156,547 $ (11,976) $ 144,571 $ 3,153 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 September 30, 2023 APL Certificates B Piece Bonds Total Beginning balance $ 3,375 $ 1,159 $ 4,534 Provision for credit loss expense/(reversal) (1,035) 2,444 1,409 Ending balance $ 2,340 $ 3,603 $ 5,943 Nine Months Ended September 30, 2023 Beginning balance $ 2,783 $ 370 $ 3,153 Provision for credit loss expense/(reversal) (443) 3,233 2,790 Ending balance $ 2,340 $ 3,603 $ 5,943 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. We recorded interest income (including the amortization of discount) related to these investments of $3.6 million and $10.7 million during the three and nine months ended September 30, 2023, respectively, and $3.7 million and $13.9 million during the three and nine months ended September 30, 2022, respectively. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Equity Affiliates | 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): Investments in Equity Affiliates at UPB of Loans to Equity Affiliates at September 30, 2023 Equity Affiliates September 30, 2023 December 31, 2022 Arbor Residential Investor LLC $ 33,447 $ 46,951 $ — Fifth Wall Ventures 13,422 13,584 — AMAC Holdings III LLC 13,156 15,825 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 450 — JT Prime 425 425 — North Vermont Avenue — — — West Shore Café — — 1,688 Lexford Portfolio — — — East River Portfolio — — — Total $ 62,795 $ 79,130 $ 1,688 Arbor Residential Investor LLC (“ARI”). During the three and nine months ended September 30, 2023, we recorded a loss of $1.3 million and income of $1.3 million, respectively, and during the three and nine months ended September 30, 2022, we recorded income of $0.3 million and $6.4 million, respectively, to income from equity affiliates in our consolidated statements of income. During the three and nine months ended September 30, 2023, we received cash distributions of $7.5 million and $15.0 million, respectively, and during the three and nine months ended September 30, 2022, we received cash distributions of $7.3 million and $22.3 million, respectively, which were classified as returns on capital. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and at September 30, 2023 was 9.2%. At September 30, 2023, our indirect interest was 12.3%. Fifth Wall Ventures (“Fifth Wall”). During the nine months ended September 30, 2023 and 2022, w e funded an additi onal $0.8 million an d $8.7 million, r espectively, and during the three and nine months ended September 30, 2023, we recorded a loss associated with this investment of $0.8 million and $1.0 million, respectively . In addition, during the three and nine months ended September 30, 2022, we received distributions from this investment of $0.7 million and $1.6 million, respectively, which were classified as a return of capital. AMAC Holdings III LLC (“AMAC III”). During the nine months ended September 30, 2023 , we receiv ed distributions of $1.1 million , which were classified as returns of capital, and, during the three and nine months ended September 30, 2023, record ed losses a ssociated with this investmen t of $0.7 million and $1.6 million, respectively. During 2022, we funded an additional $4.9 million, and during the three and nine months ended September 30, 2022, recorded losses associated with this investment of $0.7 million and $1.8 million, respectively. In addition, during the three and nine months ended September 30, 2022, we received distributions of $0.2 million and $0.4 million, respectively, which were classified as returns of capital. Lexford Portfolio. During the nine months ended September 30, 2023, we received distributions of $7.2 million and, during the three and nine months ended September 30, 2022, we received distributions of $5.0 million and $11.0 million, respectively, which were classified as returns on capital and recognized as income from equity affiliates. Equity Participation Interest. During the three and nine months ended September 30, 2023, we received $3.5 million and $14.5 million, respectively, and, during the three months ended September 30, 2022, we received $2.6 million from equity participation interests on properties that were sold and which we had loans that previously paid-off. These were classified as returns of capital and recognized as income from equity affiliates. See Note 17 for details of certain investments described above. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): September 30, 2023 December 31, 2022 Current Extended Note Debt Collateral Wtd. Avg. Debt Collateral Structured Business $2.5B joint repurchase facility (2) Jul. 2025 Jul. 2026 V $ 923,599 $ 1,438,971 7.72 % $ 1,516,657 $ 2,099,447 $1B repurchase facility (2) Aug. 2025 Aug. 2026 V 418,206 621,759 7.58 % 498,666 703,740 $500M repurchase facility (5) N/A V 374,072 505,139 8.34 % 154,653 188,563 $499M repurchase facility (2)(3) Oct. 2023 (6) N/A V 343,726 491,190 7.67 % 351,056 504,506 $450M repurchase facility Mar. 2024 Mar. 2026 V 328,650 452,318 7.50 % 344,237 450,736 $450M repurchase facility Jan. 2024 Oct. 2024 V 93,410 120,947 7.01 % 186,639 239,678 $250M credit facility July 2024 N/A V 18,438 23,088 7.28 % 33,221 43,238 $225M credit facility Jan. 2024 Jan. 2025 V 94,913 148,041 7.97 % 47,398 81,119 $200M repurchase facility Mar. 2025 Mar. 2026 V 73,751 105,076 7.97 % 32,494 47,750 $200M repurchase facility Jan. 2024 Jan. 2025 V 115,748 151,890 7.36 % 154,516 200,099 $174M loan specific credit facilities Oct. 2023 (6) to Aug. 2025 Aug. 2025 to Aug. 2027 V/F 173,862 251,049 7.45 % 156,107 225,805 $50M credit facility Apr. 2024 Apr. 2025 V 29,200 36,500 7.51 % 29,194 36,500 $40M credit facility Apr. 2026 Apr. 2027 V — — — — — $35M working capital facility Apr. 2024 N/A V — — — — — $25M credit facility Oct. 2024 N/A V 18,248 24,625 8.02 % 18,701 24,572 Repurchase facility - securities (2)(4) N/A N/A V 31,032 — 7.11 % 12,832 — Structured Business total $ 3,036,855 $ 4,370,593 7.70 % $ 3,536,371 $ 4,845,753 Agency Business $750M ASAP agreement N/A N/A V $ 54,618 $ 55,220 6.46 % $ 29,476 $ 30,291 $500M joint repurchase facility (2) Jul. 2025 Jul. 2026 V 7,701 11,350 7.74 % 104,629 135,641 $500M repurchase facility Nov. 2023 N/A V 144,818 145,618 6.69 % 66,778 66,866 $200M credit facility Mar. 2024 N/A V 143,654 144,168 6.71 % 31,475 33,177 $100M credit facility July 2024 N/A V — — — 57,887 57,974 $50M credit facility Sept. 2024 N/A V 3,264 3,264 6.66 % 14,664 14,671 $1M repurchase facility (2)(3) Oct. 2023 (6) N/A V 531 880 7.67 % 534 920 Agency Business total $ 354,586 $ 360,500 6.69 % $ 305,443 $ 339,540 Consolidated total $ 3,391,441 $ 4,731,093 7.59 % $ 3,841,814 $ 5,185,293 ________________________ V = Variable Note Rate; F = Fixed Note Rate (1) At September 30, 2023 and December 31, 2022, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $6.6 million and $13.3 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $0.5 million and $0.9 million, respectively. (2) These facilities are subject to margin call provisions associated with changes in interest spreads. (3) A portion of this facility was used to finance a fixed-rate SFR permanent loan reported through our Agency Business. (4) At September 30, 2023, this facility was collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $44.4 million. At December 31, 2022, this facility was collateralized by B Piece bonds with a carrying value of $33.1 million. (5) The commitment amount under this repurchase facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans. (6) These credit facilities, with a total committed amount of $514.5 million, mature on October 30, 2023 and we are currently in negotiations with these lenders to amend these facilities and extend the maturity. During 2023, all of our remaining LIBOR-based financings were converted to a SOFR-based interest rate. Structured Business At September 30, 2023 and December 31, 2022, 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 8.14% and 6.95%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and the working capital facility, was 69% and 73% at September 30, 2023 and December 31, 2022, respectively. In August 2023, we amended a $1.00 billion repurchase facility to extend the maturity to August 2025, with a one-year extension option, and amend the interest rate on new loans to SOFR plus 2.50%. The pricing on existing loans will remain unchanged until December 2023, at which time they will increase to SOFR plus 2.25%, as long as the weighted average spread of all loans is at least 2.40%. The pricing on existing loans will then increase to 2.50% in June 2024. In July 2023, we amended our $3.00 billion joint repurchase facility, which is shared between our Structured Business and Agency Business. The facility size will remain at $3.00 billion until March 2024, at which time it will be reduced to $2.00 billion. In addition, the maturity was extended to July 2025, with a one-year extension option at the buyers discretion. In July 2023, we amended a $400.0 million credit facility to decrease the facility size to $250.0 million, extend the maturity to July 2024 and amend the interest rates on new loans to SOFR plus 2.50% for multifamily loans, and SOFR plus 2.95% to 3.20% for non-multifamily loans. In April 2023, we amended a $25.0 million credit facility to increase the facility size to $40.0 million and extend the maturity to April 2026. In March 2023, we amended a $450.0 million repurchase facility to exercise a one-year extension option to March 2024 and amend the interest rate to a minimum of SOFR plus 2.00%. Agency Business In March 2023, we amended a $200.0 million credit facility to extend the maturity to March 2024 and amend the interest rate to SOFR plus 1.40%. Securitized Debt We account for securitized debt transactions on our consolidated balance sheet as financing facilities. These transactions are considered VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade notes and guaranteed certificates issued to third parties are treated as secured financings and are non-recourse to us. Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash September 30, 2023 Face Value Carrying Wtd. Avg. UPB Carrying Restricted CLO 19 $ 872,812 $ 867,904 7.77 % $ 1,014,554 $ 1,010,753 $ 4,527 CLO 18 1,652,812 1,647,326 7.22 % 1,908,793 1,903,837 20,983 CLO 17 1,714,125 1,709,255 7.10 % 1,901,897 1,896,347 149,206 CLO 16 1,237,500 1,233,286 6.73 % 1,343,886 1,340,303 91,434 CLO 15 674,412 672,897 6.78 % 770,602 768,436 19,714 CLO 14 (5) 655,475 653,876 6.74 % 756,030 754,189 13,920 Total CLOs 6,807,136 6,784,544 7.08 % 7,695,762 7,673,865 299,784 Q Series securitization 222,066 220,090 7.31 % 296,088 294,876 — Total securitized debt $ 7,029,202 $ 7,004,634 7.09 % $ 7,991,850 $ 7,968,741 $ 299,784 December 31, 2022 CLO 19 $ 872,812 $ 866,605 6.75 % $ 952,268 $ 947,336 $ 64,300 CLO 18 1,652,812 1,645,711 6.19 % 1,899,174 1,891,215 85,970 CLO 17 1,714,125 1,707,676 6.16 % 1,911,866 1,904,732 145,726 CLO 16 1,237,500 1,231,887 5.79 % 1,307,244 1,301,794 106,495 CLO 15 674,412 671,532 5.84 % 797,755 795,078 2,861 CLO 14 655,475 652,617 5.80 % 732,247 730,057 37,090 CLO 13 462,769 461,005 6.03 % 552,182 550,924 37,875 CLO 12 379,283 378,331 6.09 % 466,474 465,003 500 Total CLOs 7,649,188 7,615,364 6.10 % 8,619,210 8,586,139 480,817 Q Series securitization 236,878 233,906 6.30 % 315,837 313,965 — Total securitized debt $ 7,886,066 $ 7,849,270 6.11 % $ 8,935,047 $ 8,900,104 $ 480,817 ________________________ (1) Debt carrying value is net of $24.6 million and $36.8 million of deferred financing fees at September 30, 2023 and December 31, 2022, respectively. (2) At September 30, 2023 and December 31, 2022, the aggregate weighted average note rate for our securitized debt, including certain fees and costs, was 7.34% and 6.32%, respectively. (3) At September 30, 2023, four loans with an aggregate UPB of $89.8 million were deemed a "credit risk" as defined by the collateralized loan obligations ("CLO") indentures. At December 31, 2022, there was no collateral deemed a “credit risk” as defined by the CLO indentures. A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Excludes restricted cash related to interest payments, delayed fundings and expenses totaling $108.5 million and $230.0 million at September 30, 2023 and December 31, 2022, respectively. (5) The replenishment period of CLO 14 ended in September 2023. CLO 13 and 12. In June 2023 and August 2023, we unwound CLO 13 and 12, respectively, redeeming the remaining outstanding notes, which were repaid primarily from the refinancing of the remaining assets within our other CLO vehicles and credit and repurchase facilities. We expensed $1.2 million and $0.3 million of deferred financing fees in the second and third quarter of 2023, respectively, into loss on extinguishment of debt on the consolidated statements of income. In the first quarter of 2022, we unwound a CLO and expensed $1.4 million of deferred financing fees into loss on extinguishment of debt on the consolidated statements of income. Senior Unsecured Notes A summary of our senior unsecured notes is as follows ($ in thousands): Senior Issuance September 30, 2023 December 31, 2022 Maturity UPB Carrying Wtd. Avg. UPB Carrying Wtd. Avg. 7.75% Notes (3) Mar. 2023 Mar. 2026 $ 95,000 $ 93,552 7.75 % $ — $ — — 8.50% Notes (3) Oct. 2022 Oct. 2027 150,000 147,904 8.50 % 150,000 147,519 8.50 % 5.00% Notes (3) Dec. 2021 Dec. 2028 180,000 177,769 5.00 % 180,000 177,450 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 267,555 4.50 % 270,000 266,926 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 173,386 5.00 % 175,000 172,917 5.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 273,322 4.50 % 275,000 272,960 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,633 4.75 % 110,000 109,369 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,805 5.75 % 90,000 89,514 5.75 % 8.00% Notes (3) Apr. 2020 Apr. 2023 — — — 70,750 70,613 8.00 % 5.625% Notes (4) Mar. 2018 May 2023 — — — 78,850 78,726 5.63 % $ 1,345,000 $ 1,332,926 5.41 % $ 1,399,600 $ 1,385,994 5.40 % ________________________ (1) At September 30, 2023 and December 31, 2022, the carrying value is net of deferred financing fees of $12.1 million and $13.6 million, respectively. (2) At September 30, 2023 and December 31, 2022, the aggregate weighted average note rate, including certain fees and costs, was 5.70% and 5.69%, respectively. (3) These notes can be redeemed by us prior to three months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. (4) These notes can be redeemed by us at any time prior to the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. In March 2023, we issued $95.0 million aggregate principal amount of 7.75% senior unsecured notes due in 2026 in a private offering. We received net proceeds of $93.4 million from the issuance, after deducting the placement agent commission and other offering expenses. We used $70.8 million of the proceeds, which included accrued interest and other fees, to repurchase the remaining portion of our 8.00% senior unsecured notes due in 2023. In May 2023, our 5.625% senior unsecured notes matured and were redeemed for cash. Convertible Senior Unsecured Notes Our convertible senior unsecured notes are not redeemable by us prior to maturity (August 2025) 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. The UPB and net carrying value of our convertible notes are as follows (in thousands): Period UPB Unamortized Deferred Net Carrying September 30, 2023 $ 287,500 $ 5,072 $ 282,428 December 31, 2022 $ 287,500 $ 7,144 $ 280,356 During the three months ended September 30, 2023, we incurred interest expense on the notes totaling $6.1 million, of which $5.4 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. During the nine months ended September 30, 2023, we incurred interest expense on the notes totaling $18.2 million, of which $16.1 million and $2.1 million related to the cash coupon and deferred financing fees, respectively. During the three months ended September 30, 2022, we incurred interest expense on the notes totaling $5.8 million, of which $5.0 million and $0.8 million related to the cash coupon and deferred financing fees, respectively. During the nine months ended September 30, 2022, we incurred interest expense on the notes totaling $13.4 million, of which $11.3 million and $2.1 million related to the cash coupon and deferred financing fees, respectively. Including the amortization of the deferred financing fees, our weighted average total cost of the notes was 8.42% at both September 30, 2023 and December 31, 2022. At September 30, 2023, the 7.50% convertible senior notes had a conversion rate of 60.2170 shares of common stock per $1,000 of principal, which represented a conversion price of $16.61 per share of common stock. During the third quarter of 2022, our 4.75% convertible senior notes were repurchased and settled and we expensed $3.3 million of deferred financing fees into loss on extinguishment of debt. Junior Subordinated Notes The carrying values of borrowings under our junior subordinated notes were $143.7 million and $143.1 million at September 30, 2023 and December 31, 2022, respectively, which is net of a deferred amount of $9.1 million and $9.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.5 million and $1.6 million at September 30, 2023 and December 31, 2022, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate. The weighted average note rate was 8.55% and 7.65% at September 30, 2023 and December 31, 2022, respectively. Including certain fees and costs, the weighted average note rate was 8.63% and 7.74% at September 30, 2023 and December 31, 2022, respectively. Debt Covenants Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt (senior and convertible notes) contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests. We were in compliance with all financial covenants and restrictions at September 30, 2023. CLOs. Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests. Our CLOs were in compliance with all such covenants at September 30, 2023, as well as on the most recent determination dates in October 2023. In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) 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 October 2023 are as follows: Cash Flow Triggers CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 CLO 19 Overcollateralization (1) Current 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % Limit 118.76 % 119.85 % 120.21 % 121.51 % 123.03 % 119.30 % Pass / Fail Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 153.74 % 151.78 % 148.88 % 143.35 % 148.56 % 132.54 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail 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 14 CLO 15 CLO 16 CLO 17 CLO 18 CLO 19 October 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % July 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % April 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % January 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % October 2022 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % ________________________ (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 Obli
Allowance for Loss-Sharing Obligations | 9 Months Ended |
Sep. 30, 2023 | |
Loss Contingency Accrual, Disclosures [Abstract] | |
Allowance for Loss-Sharing Obligations | 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Beginning balance $ 66,681 $ 53,053 $ 57,168 $ 56,064 Provisions for loss sharing 1,703 2,346 13,992 2,593 Provisions reversal for loan repayments (24) (1,934) (1,464) (4,792) Recoveries (charge-offs), net 901 46 (435) (354) Ending balance $ 69,261 $ 53,511 $ 69,261 $ 53,511 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 September 30, 2023 and 2022, we had $34.6 million and $34.2 million, respectively, of guarantee obligations 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 September 30, 2023 and December 31, 2022, we had outstanding advances of $0.3 million and $0.8 million, respectively, which were netted against the allowance for loss-sharing obligations. At September 30, 2023 and December 31, 2022, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $34.7 million and $22.7 million, respectively, and represented 0.17% and 0.12%, respectively, of our Fannie Mae servicing portfolio. During the three and nine months ended September 30, 2023, we recorded a $2.5 million and $11.9 million, respectively, increase in CECL reserves. At September 30, 2023 and December 31, 2022, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.79 billion and $3.49 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 | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower “rate locks” a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment. These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of 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 and nine months ended September 30, 2023, we recorded a net losses of $1.0 million and $2.0 million, respectively, from changes in the fair value of these derivatives and $14.1 million and $48.8 million, respectively, of income from MSRs. During the three and nine months ended September 30, 2022, we recorded net losses of $22.9 million and $20.5 million, respectively, from changes in the fair value of these derivatives and $19.4 million and $52.3 million, respectively, of income from MSRs. See Note 12 for details. Interest Rate and Credit Default Swaps (“Swaps”). We enter into over-the-counter swaps to hedge our interest rate and credit risk exposure inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale or securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our interest rate swaps typically have a three-month maturity and are tied to the five-year and ten-year swap rates. Our credit default swaps typically have a five-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. The Swaps do not meet the criteria for hedge accounting, are cleared by a central clearing house and variation margin payments, made in cash, are treated as a legal settlement of the derivative itself as opposed to a pledge of collateral. During the three months ended September 30, 2023, we recorded realized and unrealized gains of $0.4 million and $0.2 million, respectively, to our Agency Business related to our Swaps. During the nine months ended September 30, 2023, we recorded realized gains of $1.5 million and unrealized losses of $3.0 million to our Agency Business related to our Swaps. During the three months ended September 30, 2022, we recorded realized and unrealized gains of $3.6 million and $3.4 million, respectively, to our Agency Business related to our Swaps. During the nine months ended September 30, 2022, we recorded realized and unrealized gains of $27.2 million and $3.4 million, respectively, to our Agency Business related to our Swaps. The realized and unrealized gains and losses are recorded in gain (loss) on derivative instruments, net. A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): September 30, 2023 Fair Value Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities Rate lock commitments 4 $ 107,093 Other assets/other liabilities $ 962 $ (2,339) Forward sale commitments 36 455,363 Other assets/other liabilities 2,379 (5,822) Swaps 82 8,200 — — $ 570,656 $ 3,341 $ (8,161) December 31, 2022 Rate lock commitments 6 $ 91,472 Other assets/other liabilities $ 354 $ (1,070) Forward sale commitments 27 294,451 Other assets/other liabilities 1,151 (3,827) Swaps 1,298 129,800 — — $ 515,723 $ 1,505 $ (4,897) |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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): September 30, 2023 December 31, 2022 Principal / Carrying Estimated Principal / Carrying Estimated Financial assets: Loans and investments, net $ 13,122,395 $ 12,892,796 $ 12,911,172 $ 14,456,123 $ 14,254,674 $ 14,468,418 Loans held-for-sale, net 368,330 364,320 374,534 368,066 354,070 362,054 Capitalized mortgage servicing rights, net n/a 392,203 538,078 n/a 401,471 530,913 Securities held-to-maturity, net 231,577 155,172 126,608 234,255 156,547 144,571 Derivative financial instruments 130,778 3,341 3,341 111,950 1,505 1,505 Financial liabilities: Credit and repurchase facilities $ 3,398,451 $ 3,391,441 $ 3,382,933 $ 3,856,009 $ 3,841,814 $ 3,828,192 Securitized debt 7,029,202 7,004,634 6,899,147 7,886,066 7,849,270 7,560,541 Senior unsecured notes 1,345,000 1,332,926 1,211,633 1,399,600 1,385,994 1,262,560 Convertible senior unsecured notes 287,500 282,428 290,019 287,500 280,356 287,834 Junior subordinated notes 154,336 143,695 105,821 154,336 143,128 103,977 Derivative financial instruments 431,678 8,161 8,161 273,973 4,897 4,897 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. Fair values of loans and investments that are not impaired are estimated using inputs based on direct capitalization rate and discounted cash flow methodologies using discount rates, which, in our opinion, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality (Level 3). Fair values of impaired loans and investments are estimated using inputs that require significant judgments, which include assumptions regarding discount rates, capitalization rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plans and other factors (Level 3). Loans held-for-sale, net. Consists of originated loans that are generally expected to be transferred or sold within 60 days to 180 days of loan funding, and are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2). Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3). Capitalized mortgage servicing rights, net. Fair values are estimated using inputs based on discounted future net cash flow methodology (Level 3). The fair value of MSRs is estimated using a process that involves the use of independent third-party valuation experts, supported by commercially available discounted cash flow models and analysis of current market data. The key inputs used in estimating fair value include the contractually specified servicing fees, prepayment speed of the underlying loans, discount rate, annual per loan cost to service loans, delinquency rates, late charges and other economic factors. Securities held-to-maturity, net. Fair values are approximated using inputs based on current market quotes received from financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions (Level 3). Derivative financial instruments. Fair values of rate lock and forward sale commitments are estimated using valuation techniques, which include internally-developed models developed based on changes in the U.S. Treasury rate and other observable market data (Level 2). The fair value of rate lock commitments includes the fair value of the expected net cash flows associated with the servicing of the loans, see capitalized mortgage servicing rights, net above for details on the applicable valuation technique (Level 3). We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives. Given the credit quality of our counterparties, the short duration of interest rate lock commitments and forward sale contracts, and our historical experience, the risk of nonperformance by our counterparties is not significant. Credit and repurchase facilities. Fair values for credit and repurchase facilities of the Structured Business are estimated using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality (Level 3). The majority of our credit and repurchase facilities for the Agency Business bear interest at rates that are similar to those available in the market currently and fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values. Securitized debt and junior subordinated notes. Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads (Level 3). Senior unsecured notes. Fair values are estimated at current market quotes received from active markets when available (Level 1). If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2). Convertible senior unsecured notes. Fair values are estimated using current market quotes received from inactive markets (Level 2). We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels at September 30, 2023 (in thousands): Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 3,341 $ 3,341 $ — $ 2,379 $ 962 Financial liabilities: Derivative financial instruments $ 8,161 $ 8,161 $ — $ 8,161 $ — 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 at September 30, 2023 (in thousands): Net Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 169,171 $ 169,171 $ — $ — $ 169,171 Loans held-for-sale (2) 17,169 17,169 — 17,169 — $ 186,340 $ 186,340 $ — $ 17,169 $ 169,171 ________________________ (1) We had an allowance for credit losses of $111.1 million relating to thirteen impaired loans with an aggregate carrying value, before loan loss reserves, of $280.3 million at September 30, 2023. (2) We had unrealized impairment losses of $2.9 million related to six held-for-sale loans with an aggregate carrying value, before unrealized impairment losses, of $20.1 million. Loan impairment assessments. Loans held-for-investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for credit losses, when such loan or investment is deemed to be impaired. We consider a loan impaired when, based upon current information, it is probable that all amounts due for both principal and interest will not be collected according to the contractual terms of the loan agreement. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance, and corresponding charge to the provision for credit losses, or an impairment loss. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors. Loans held-for-sale are generally transferred and sold within 60-180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics. The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized. Quantitative information about Level 3 fair value measurements at September 30, 2023 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Multifamily $ 70,246 Discounted cash flows Capitalization rate 6.53 % Land 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 7.50 % Office 37,074 Discounted cash flows Capitalization rate 5.25 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,851 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Derivative financial instruments: Rate lock commitments 962 Discounted cash flows W/A discount rate 12.27 % 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 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivative assets and liabilities, net Beginning balance $ 757 $ 1,035 $ 354 $ 295 Settlements (13,369) (16,554) (46,123) (47,491) Realized gains recorded in earnings 12,612 15,519 45,769 47,196 Unrealized gains recorded in earnings 962 1,554 962 1,554 Ending balance $ 962 $ 1,554 $ 962 $ 1,554 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): September 30, 2023 Notional/ Fair Value of Interest Rate Unrealized Total Fair Value Rate lock commitments $ 107,093 $ 962 $ (2,339) $ — $ (1,377) Forward sale commitments 455,363 — 2,339 — 2,339 Loans held-for-sale, net (1) 368,330 4,302 — (2,891) 1,411 Total $ 5,264 $ — $ (2,891) $ 2,373 ________________________ (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 at September 30, 2023 (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 $ 12,892,796 $ 12,911,172 $ — $ — $ 12,911,172 Loans held-for-sale, net 364,320 374,534 — 370,232 4,302 Capitalized mortgage servicing rights, net 392,203 538,078 — — 538,078 Securities held-to-maturity, net 155,172 126,608 — — 126,608 Financial liabilities: Credit and repurchase facilities $ 3,391,441 $ 3,382,933 $ — $ 354,586 $ 3,028,347 Securitized debt 7,004,634 6,899,147 — — 6,899,147 Senior unsecured notes 1,332,926 1,211,633 1,211,633 — — Convertible senior unsecured notes 282,428 290,019 — 290,019 — Junior subordinated notes 143,695 105,821 — — 105,821 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Agency Business Commitments. Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements. At September 30, 2023, we were required to maintain at least $19.8 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement. We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier, which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. At September 30, 2023, the restricted liquidity requirement totaled $72.6 million and was satisfied with a $64.0 million letter of credit and cash issued to Fannie Mae. At September 30, 2023, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $37.3 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash. We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. At September 30, 2023, 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. At September 30, 2023, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands): Year Debt Obligations Minimum Annual Operating Lease Payments Total 2023 (three months ending December 31, 2023) $ 858,768 $ 2,300 $ 861,068 2024 2,004,350 10,188 2,014,538 2025 3,378,563 10,555 3,389,118 2026 4,523,241 10,627 4,533,868 2027 1,115,231 9,225 1,124,456 2028 180,000 8,624 188,624 Thereafter 154,336 27,755 182,091 Total $ 12,214,489 $ 79,274 $ 12,293,763 During the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022, we recorded lease expense of $2.8 million, $8.0 million, $2.4 million and $7.2 million, respectively. Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $1.08 billion at September 30, 2023 that we are obligated to fund as borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. Litigation. We are subject to a variety of claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in aggregate, will not have a material adverse impact in our consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Other than the litigation noted below, we are currently neither subject to any material litigation nor, to the best of our knowledge, threatened by any material 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 that had emerged from bankruptcy. There were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain individuals and other entities that are affiliates of ours were included as defendants. In June 2013, the Trust amended the lawsuits, to, among other things, (1) consolidate the lawsuits into one lawsuit, (2) remove 47 defendants from the lawsuits, none of whom were related to us, so that there were 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 (as consolidated, the "Action"). For more detailed information regarding the Action, please refer to Note 14 of our 2022 Annual Report. After extensive motion practice and discovery, in early December 2022, the plaintiff and certain co-defendants, including our affiliates, commenced discussions regarding a possible settlement of the Action, and in late December 2022, those parties reached an agreement in principle to settle the Action for a total of $38.0 million. We agreed to pay up to $7.4 million of the settlement amount, which amount was accrued in our December 31, 2022 financial statements. In early March 2023, the parties to the settlement finalized the settlement documents and on April 25, 2023, the Bankruptcy Court approved the settlement in open court. Following the Bankruptcy Court approval, the parties made the agreed upon payments, the broad mutual releases became effective and on June 23, 2023, the litigation was discontinued, with prejudice. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO and Q Series securitization entities (“Securitization Entities”) are VIEs, which we consolidate. ARLP was already consolidated in our financial statements, therefore, the identification of this entity as a VIE had no impact on our consolidated financial statements. Our Securitization Entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We believe we hold the power necessary to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests and 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 Securitization Entities, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the Securitization Entities as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated Securitization Entities are as follows (in thousands): September 30, 2023 December 31, 2022 Assets: Restricted cash $ 408,569 $ 710,775 Loans and investments, net 7,968,741 8,900,104 Other assets 311,988 174,382 Total assets $ 8,689,298 $ 9,785,261 Liabilities: Securitized debt $ 7,004,634 $ 7,849,270 Other liabilities 23,259 26,754 Total liabilities $ 7,027,893 $ 7,876,024 Assets held by the Securitization Entities are restricted and can only be used to settle obligations of those entities. The liabilities of the Securitization Entities 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 Securitization Entities. Unconsolidated VIEs . We determined that we are not the primary beneficiary of 27 VIEs in which we have a variable interest at September 30, 2023 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance. A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at September 30, 2023 is as follows (in thousands): Type Carrying Amount (1) Loans $ 433,532 APL certificates 129,887 B Piece bonds 31,228 Equity investments 17,771 Agency interest only strips 177 Total $ 612,595 ________________________ (1) Represents the carrying amount of loans and investments before reserves. At September 30, 2023, $172.9 million of loans to VIEs had corresponding specific loan loss reserves of $85.8 million. The maximum loss exposure at September 30, 2023 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $3.86 billion at September 30, 2023. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Common Stock. During the nine months ended September 30, 2023, we sold 13,113,296 shares of our common stock at an average price of $14.77 per share for net proceeds of $193.6 million through an “At-The-Market” equity offering sales agreement. The proceeds were used to make investments related to our business and for general corporate purposes. In March 2023, the Board of Directors authorized a share repurchase program providing for the repurchase of up to $50.0 million of our outstanding common stock. The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, based on our stock price, general market conditions, applicable legal requirements and other factors. The program may be discontinued or modified at any time. At September 30, 2023, we repurchased 3,545,604 shares of our common stock under this program at a total cost of $37.4 million and an average cost of $10.56 per share. 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 Arbor Commercial Mortgage, LLC (“ACM”) in 2016. Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one-for-one basis. At September 30, 2023, there were 16,293,589 OP Units outstanding, which represented 8.0% of the voting power of our outstanding stock. Distributions. Dividends declared (on a per share basis) during the nine months ended September 30, 2023 are as follows: Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 15, 2023 $ 0.40 January 3, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 May 3, 2023 $ 0.42 March 31, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 July 26, 2023 $ 0.43 June 30, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 September 29, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 Common Stock – On October 25, 2023, the Board of Directors declared a cash dividend of $0.43 per share of common stock. The dividend is payable on November 30, 2023 to common stockholders of record as of the close of business on November 17, 2023. Deferred Compensation. During 2023, we issued 939,325 shares of restricted common stock to our employees and Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $11.2 million, of which: (1) 297,182 shares with a grant date fair value of $3.6 million vested on the grant date in 2023; (2) 276,785 shares with a grant date fair value of $3.3 million will vest in 2024; (3) 252,510 shares with a grant date fair value of $3.0 million will vest in 2025; (4) 78,126 shares with a grant date fair value of $0.9 million will vest in 2026; and (5) 34,722 shares with a grant date fair value of $0.4 million will vest in 2027. We also issued 40,796 fully vested restricted stock units (“RSUs”) with a grant date fair value of $0.5 million to certain members of our Board of Directors and 247,275 RSUs with a grant date fair value of $2.9 million that vest in full in the first quarter of 2026 to our chief executive officer. The individuals decided to defer the receipt of the common stock, to which the RSUs are converted into, to a future date pursuant to a pre-established deferral election. During the first and third quarters of 2023, 352,427 shares of performance-based restricted stock units and 313,152 shares of restricted common stock, respectively, previously granted to our chief executive officer fully vested and were net settled for 172,513 and 153,287 common shares, respectively. During 2023, we withheld 220,315 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested. Earnings Per Share (“EPS”). Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of restricted stock units granted to our chief executive officer, OP Units and convertible senior unsecured notes. A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data): Three Months Ended September 30, 2023 2022 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 77,924 $ 77,924 $ 62,710 $ 62,710 Net income attributable to noncontrolling interest (2) — 6,789 — 6,002 Interest expense on convertible notes — 6,081 — 5,797 Net income attributable to common stockholders and noncontrolling interest $ 77,924 $ 90,794 $ 62,710 $ 74,509 Weighted average shares outstanding 187,023,395 187,023,395 170,227,553 170,227,553 Dilutive effect of OP Units (2) — 16,293,589 — 16,293,589 Dilutive effect of convertible notes — 17,312,382 — 18,815,399 Dilutive effect of restricted stock units (3) — 699,452 — 528,475 Weighted average shares outstanding 187,023,395 221,328,818 170,227,553 205,865,016 Net income per common share (1) $ 0.42 $ 0.41 $ 0.37 $ 0.36 Nine Months Ended September 30, 2023 2022 Net income attributable to common stockholders (1) $ 238,407 $ 238,407 $ 196,678 $ 196,678 Net income attributable to noncontrolling interest (2) — 21,200 — 19,811 Interest expense on convertible notes — 18,244 — 13,786 Net income attributable to common stockholders and noncontrolling interest $ 238,407 $ 277,851 $ 196,678 $ 230,275 Weighted average shares outstanding 183,340,149 183,340,149 162,292,235 162,292,235 Dilutive effect of OP Units (2) — 16,293,589 — 16,308,361 Dilutive effect of convertible notes — 17,271,419 — 16,370,528 Dilutive effect of restricted stock units (3) — 552,242 — 558,216 Weighted average shares outstanding 183,340,149 217,457,399 162,292,235 195,529,340 Net income per common share (1) $ 1.30 $ 1.28 $ 1.21 $ 1.18 ________________________ (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Our chief executive officer was granted restricted stock units, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAs 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 and nine months ended September 30, 2023, we recorded a tax provision of $5.9 million and $19.4 million, respectively. In the three and nine months ended September 30, 2022, we recorded a tax benefit of $0.4 million and a tax provision of $13.2 million. The tax provision recorded in the three months ended September 30, 2023 consisted of a current tax provision of $8.3 million and a deferred tax benefit of $2.4 million. The tax provision recorded in the nine months ended September 30, 2023 consisted of a current tax provision of $26.0 million and a deferred tax benefit of $6.6 million. The tax benefit recorded in the three months ended September 30, 2022 consisted of a current tax provision of $5.0 million and a deferred tax benefit of $5.4 million. The tax provision recorded in the nine months ended September 30, 2022 consisted of a current tax provision of $21.0 million and a deferred tax benefit of $7.8 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 | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Support Agreement and Employee Secondment Agreement. We have a support agreement and a secondment agreement with ACM and certain of its affiliates and certain affiliates of a relative of our chief executive officer (“Service Recipients”) where we provide support services and seconded employees to the Service Recipients. The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees. During the three and nine months ended September 30, 2023, we incurred $0.9 million and $2.3 million, respectively, and, during the three and nine months ended September 30, 2022, we incurred $0.9 million and $2.5 million, respectively, of costs for services provided and employees seconded to the Service Recipients, which is included in due from related party on the consolidated balance sheets. These costs were reimbursed to us subsequent to period end. Other Related Party Transactions. Due from related party was $211.7 million and $77.4 million at September 30, 2023 and December 31, 2022, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of the quarter and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above. Due to related party was $2.2 million and $12.4 million at September 30, 2023 and December 31, 2022, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions. In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. We have an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns a private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives’ charter. During the nine months ended September 30, 2023 and 2022, we reimbursed the aircraft owner $0.6 million and $1.0 million, respectively, for the flights chartered by our executives pursuant the agreement. In May 2023, we committed to fund a $56.9 million bridge loan ($3.8 million was funded at September 30, 2023) for an SFR build-to-rent construction project. Two of our officers have made minority equity investments totaling $0.5 million, representing approximately 4.0% of the total equity invested in the project. The loan has an interest rate of SOFR plus 5.50% with a SOFR floor of 3.25% and matures in December 2025, with two six-month extension options. Interest income recorded from this loan was $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively. In July 2022, we purchased a $46.2 million bridge loan originated by ACM at par ($3.5 million was funded at September 30, 2023) for an SFR build-to-rent construction project. A consortium of investors (which includes, among other unaffiliated investors, certain of our officers with a minority ownership interest) owns 70% of the borrowing entity and an entity indirectly owned and controlled by an immediate family member of our chief executive officer owns 10% of the borrowing entity. The loan has an interest rate of SOFR plus 5.5% and matures in March 2025. Interest income recorded from this loan was $0.1 million for both the three and nine months ended September 30, 2023. In April 2022, we committed to fund a $67.1 million bridge loan (none of which was funded at September 30, 2023) 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 loan has an interest rate of SOFR plus 4.63% with a SOFR floor of 0.25% and matures in May 2025. Interest income recorded from this loan was $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively, and less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2022, respectively. In February 2022, we committed to fund a $39.4 million bridge loan ($3.1 million was funded at September 30, 2023) 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 loan had an interest rate of LIBOR plus 4.0% with a LIBOR floor of 0.25% and matures in March 2025. On July 1, 2023, the interest rate was changed to SOFR plus 4.0% with a SOFR floor of 0.25%. Interest income recorded from this loan was less than $0.1 million for both the three months ended September 30, 2023 and 2022, and $0.1 million for both the nine months ended September 30, 2023 and 2022. In 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 have 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 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 had an interest rate of LIBOR plus 3.75% with a LIBOR floor of 0.25% and matures in March 2024. On July 1, 2023, the interest rate was changed to SOFR plus 3.75% with a SOFR floor of 0.25%. Interest income recorded from this loan was $1.5 million and $4.3 million for the three and nine months ended September 30, 2023, respectively, and $1.0 million and $2.5 million for the three and nine months ended September 30, 2022, respectively. In 2020, we committed to fund a $32.5 million bridge loan ($24.5 million was funded at September 30, 2023) 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 had 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 December 2023. On July 1, 2023, the bridge loan interest rate was changed to SOFR plus 5.5% with a SOFR floor of 0.75%. Interest income recorded from these loans was $0.8 million and $2.0 million for the three and nine months ended September 30, 2023, respectively, and $0.3 million and $0.8 million for the three and nine months ended September 30, 2022, 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 had an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75% and was scheduled to mature in May 2023 and the preferred equity investment has a 12.0% fixed rate and was scheduled to mature in April 2023. In April 2023, the bridge loan was upsized to a maximum of $38.4 million ($34.2 million was funded at September 30, 2023), and the interest rate was changed to SOFR plus 5.25% with a SOFR floor of 1.00%. In addition, the maturity on both loans was extended to May 2025. Interest income recorded from these loans was $1.0 million and $2.5 million for the three and nine months ended September 30, 2023, respectively, and $0.5 million and $1.0 million for the three and nine months ended September 30, 2022, 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. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. The mezzanine loan bears interest at a 9.0% fixed rate and matures in April 2030. Interest income recorded from the mezzanine loan was $0.1 million for both the three months ended September 30, 2023 and 2022, and $0.2 million for both the nine months ended September 30, 2023 and 2022. We have a $35.0 million bridge loan and a $10.0 million preferred equity interest on an office building. The bridge loan was scheduled to mature in July 2023 and was extended to October 30, 2023 and the preferred equity investment matures in June 2027. The property is controlled by a third party. The day-to-day operations are currently being managed by an immediate family member, or one of his affiliated entities, of our chief executive officer. In 2021, we entered into a forbearance agreement with the borrower on the outstanding bridge loan to defer all interest owed until maturity or early payoff. At both September 30, 2023 and December 31, 2022, these loans had an allowance for credit loss recorded against them totaling $8.0 million. 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 September 30, 2023) for an 18% interest in AMAC III. During the three and nine months ended September 30, 2023, we recorded losses associated with this investment of $0.7 million and $1.6 million, respectively, and during the nine months ended September 30, 2023, we received cash distributions of $1.1 million. During the three and nine months ended September 30, 2022, we recorded a loss associated with this investment of $0.7 million and $1.8 million, respectively, and we received distributions of $0.2 million and $0.4 million, respectively. 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 bore interest at a rate of LIBOR plus 3.5% and was scheduled to mature in August 2023, which was extended to August 2024. On July 1, 2023, the bridge loan interest rate was changed to SOFR plus 3.5%. Interest income recorded from the bridge loan was $0.8 million and $2.3 million for the three and nine months ended September 30, 2023, respectively, and $0.5 million and $1.2 million for the three and nine months ended September 30, 2022, respectively. In 2018, we originated a $21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% in the borrowing entity. The loan had an interest rate of LIBOR plus 4.75% with a LIBOR floor of 0.25% and was scheduled to mature in August 2023, which was extended to August 2024. In addition, on July 1, 2023, the interest rate was changed to SOFR plus 4.75% with a SOFR floor of 0.25%. Interest income recorded from this loan was $0.6 million and $1.6 million for the three and nine months ended September 30, 2023, respectively, and $0.4 million and $1.0 million for the three and nine months ended September 30, 2022, respectively. 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 1.8%, which was scheduled to mature in October 2022. In May 2022, this loan paid off in full. Interest income recorded from this loan was $0.8 million for the nine months ended September 30, 2022. 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 all periods presented. 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 September 30, 2023. We carried 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. In July 2023, the Fannie Mae loan was paid off in full. Servicing revenue recorded from this loan was less than $0.1 million for all periods presented. In 2016, we originated $48.0 million of bridge loans on six multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12% 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 all periods presented. 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. At September 30, 2023, we had an indirect interest of 12.3% in this entity. We recorded a loss of $1.3 million and income of $1.3 million related to this investment in the three and nine months ended September 30, 2023, respectively, and income of $0.3 million and $6.4 million in the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2023, we received cash distributions of $7.5 million and $15.0 million, respectively, and during the three and nine months ended September 30, 2022, we received cash distributions of $7.3 million and $22.3 million, respectively, which were classified as returns of capital. 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 fixed rate of 3.3% 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. In addition, in connection with our equity investment, we received distributions totaling $7.2 million during the nine months ended September 30, 2023, and $5.0 million and $11.0 million during the three and nine months ended September 30, 2022, respectively, which were recorded as income from equity affiliates. Separate from the loans we originated in 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us. At September 30, 2023, this debt had an aggregate outstanding balance of approximately $600.0 million and is scheduled to mature through 2029. Several of our executives, including our chief financial officer, corporate secretary and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. At September 30, 2023, ACM holds 2,535,870 shares of our common stock and 10,615,085 OP Units, which represents 6.4% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ 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 September 30, 2023 Structured Agency Other / Consolidated Interest income $ 322,819 $ 13,655 $ — $ 336,474 Interest expense 222,996 6,184 — 229,180 Net interest income 99,823 7,471 — 107,294 Other revenue: Gain on sales, including fee-based services, net — 18,619 — 18,619 Mortgage servicing rights — 14,109 — 14,109 Servicing revenue — 51,363 — 51,363 Amortization of MSRs — (15,900) — (15,900) Property operating income 1,450 — — 1,450 Loss on derivative instruments, net — (421) — (421) Other income (loss), net 751 (578) — 173 Total other revenue 2,201 67,192 — 69,393 Other expenses: Employee compensation and benefits 12,912 26,898 — 39,810 Selling and administrative 5,291 7,076 — 12,367 Property operating expenses 1,479 — — 1,479 Depreciation and amortization 1,114 1,172 — 2,286 Provision for loss sharing (net of recoveries) — 1,679 — 1,679 Provision for credit losses (net of recoveries) 17,243 1,409 — 18,652 Total other expenses 38,039 38,234 — 76,273 Income before extinguishment of debt, income from equity affiliates and income taxes 63,985 36,429 — 100,414 Loss on extinguishment of debt (314) — — (314) Income from equity affiliates 809 — — 809 Provision for income taxes 1,078 (6,932) — (5,854) Net income 65,558 29,497 — 95,055 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 6,789 6,789 Net income attributable to common stockholders $ 55,216 $ 29,497 $ (6,789) $ 77,924 Three Months Ended September 30, 2022 Structured Agency Other / Consolidated Interest income $ 249,539 $ 10,239 $ — $ 259,778 Interest expense 157,325 3,127 — 160,452 Net interest income 92,214 7,112 — 99,326 Other revenue: Gain on sales, including fee-based services, net — 14,360 — 14,360 Mortgage servicing rights — 19,408 — 19,408 Servicing revenue — 37,526 — 37,526 Amortization of MSRs — (14,782) — (14,782) Property operating income 445 — — 445 Loss on derivative instruments, net — (15,909) — (15,909) Other income (loss), net 1,763 (7,777) — (6,014) Total other revenue 2,208 32,826 — 35,034 Other expenses: Employee compensation and benefits 13,342 25,469 — 38,811 Selling and administrative 5,961 7,264 — 13,225 Property operating expenses 366 — — 366 Depreciation and amortization 906 1,172 — 2,078 Provision for loss sharing (net of recoveries) — 412 — 412 Provision for credit losses (net of recoveries) 2,206 68 — 2,274 Total other expenses 22,781 34,385 — 57,166 Income before extinguishment of debt, income from equity affiliates and income taxes 71,641 5,553 — 77,194 Loss on extinguishment of debt (3,262) — — (3,262) Income from equity affiliates 4,748 — — 4,748 Benefit for income taxes 319 55 — 374 Net income 73,446 5,608 — 79,054 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 6,002 6,002 Net income attributable to common stockholders $ 63,104 $ 5,608 $ (6,002) $ 62,710 Nine Months Ended September 30, 2023 Structured Agency Other / Consolidated Interest income $ 962,301 $ 37,858 $ — $ 1,000,159 Interest expense 658,856 16,893 — 675,749 Net interest income 303,445 20,965 — 324,410 Other revenue: Gain on sales, including fee-based services, net — 55,795 — 55,795 Mortgage servicing rights — 48,769 — 48,769 Servicing revenue — 144,296 — 144,296 Amortization of MSRs — (46,920) — (46,920) Property operating income 4,261 — — 4,261 Loss on derivative instruments, net — (3,582) — (3,582) Other income, net 3,420 1,679 — 5,099 Total other revenue 7,681 200,037 — 207,718 Other expenses: Employee compensation and benefits 41,991 81,527 — 123,518 Selling and administrative 17,835 20,739 — 38,574 Property operating expenses 4,227 — — 4,227 Depreciation and amortization 3,779 3,518 — 7,297 Provision for loss sharing (net of recoveries) — 12,528 — 12,528 Provision for credit losses (net of recoveries) 52,257 2,790 — 55,047 Total other expenses 120,089 121,102 — 241,191 Income before extinguishment of debt, income from equity affiliates and income taxes 191,037 99,900 — 290,937 Loss on extinguishment of debt (1,561) — — (1,561) Income from equity affiliates 20,694 — — 20,694 Provision for income taxes 307 (19,743) — (19,436) Net income 210,477 80,157 — 290,634 Preferred stock dividends 31,027 — — 31,027 Net income attributable to noncontrolling interest — — 21,200 21,200 Net income attributable to common stockholders $ 179,450 $ 80,157 $ (21,200) $ 238,407 Nine Months Ended September 30, 2022 Structured Agency Other / Consolidated Interest income $ 597,847 $ 29,957 $ — $ 627,804 Interest expense 338,692 11,387 — 350,079 Net interest income 259,155 18,570 — 277,725 Other revenue: Gain on sales, including fee-based services, net — 32,526 — 32,526 Mortgage servicing rights — 52,287 — 52,287 Servicing revenue — 109,045 — 109,045 Amortization of MSRs — (44,532) — (44,532) Property operating income 1,031 — — 1,031 Gain on derivative instruments, net — 10,083 — 10,083 Other loss, net (4,370) (11,691) — (16,061) Total other revenue (3,339) 147,718 — 144,379 Other expenses: Employee compensation and benefits 42,694 77,042 — 119,736 Selling and administrative 19,799 21,161 — 40,960 Property operating expenses 1,443 — — 1,443 Depreciation and amortization 2,574 3,518 — 6,092 Provision for loss sharing (net of recoveries) — (2,199) — (2,199) Provision for credit losses (net of recoveries) 9,363 337 — 9,700 Total other expenses 75,873 99,859 — 175,732 Income before extinguishment of debt, income from equity affiliates and income taxes 179,943 66,429 — 246,372 Loss on extinguishment of debt (4,612) — — (4,612) Income from equity affiliates 18,507 — — 18,507 Provision for income taxes (1,368) (11,798) — (13,166) Net income 192,470 54,631 — 247,101 Preferred stock dividends 30,612 — — 30,612 Net income attributable to noncontrolling interest — — 19,811 19,811 Net income attributable to common stockholders $ 161,858 $ 54,631 $ (19,811) $ 196,678 ________________________ (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. September 30, 2023 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 499,511 $ 395,787 $ 895,298 Restricted cash 410,056 9,102 419,158 Loans and investments, net 12,892,796 — 12,892,796 Loans held-for-sale, net — 364,320 364,320 Capitalized mortgage servicing rights, net — 392,203 392,203 Securities held-to-maturity, net — 155,172 155,172 Investments in equity affiliates 62,795 — 62,795 Goodwill and other intangible assets 12,500 80,051 92,551 Other assets and due from related party 536,789 91,607 628,396 Total assets $ 14,414,447 $ 1,488,242 $ 15,902,689 Liabilities: Debt obligations $ 11,800,537 $ 354,587 $ 12,155,124 Allowance for loss-sharing obligations — 69,261 69,261 Other liabilities and due to related parties 323,061 114,742 437,803 Total liabilities $ 12,123,598 $ 538,590 $ 12,662,188 December 31, 2022 Assets: Cash and cash equivalents $ 200,514 $ 333,843 $ 534,357 Restricted cash 713,615 193 713,808 Loans and investments, net 14,254,674 — 14,254,674 Loans held-for-sale, net — 354,070 354,070 Capitalized mortgage servicing rights, net — 401,471 401,471 Securities held-to-maturity, net — 156,547 156,547 Investments in equity affiliates 79,130 — 79,130 Goodwill and other intangible assets 12,500 83,569 96,069 Other assets and due from related party 367,837 81,022 448,859 Total assets $ 15,628,270 $ 1,410,715 $ 17,038,985 Liabilities: Debt obligations $ 13,195,120 $ 305,442 $ 13,500,562 Allowance for loss-sharing obligations — 57,168 57,168 Other liabilities and due to related parties 299,559 109,817 409,376 Total liabilities $ 13,494,679 $ 472,427 $ 13,967,106 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Origination Data: Structured Business Bridge: Multifamily $ 92,000 $ 592,844 $ 376,630 $ 5,172,770 SFR 140,379 163,851 325,432 452,240 232,379 756,695 702,062 5,625,010 Mezzanine / Preferred Equity 7,779 17,970 15,124 26,109 Total new loan originations $ 240,158 $ 774,665 $ 717,186 $ 5,651,119 Number of Loans Originated 42 52 92 268 SFR Commitments $ 429,452 $ 457,564 $ 683,984 $ 726,071 Loan runoff $ 664,792 $ 911,790 $ 2,536,661 $ 2,700,748 Agency Business Origination Volumes by Investor: Fannie Mae $ 721,398 $ 629,610 $ 2,596,329 $ 1,744,739 Freddie Mac 339,241 350,980 658,457 1,057,743 FHA 19,215 78,382 230,707 168,736 Private Label 67,965 35,671 159,328 191,913 SFR - Fixed Rate 2,030 16,678 19,328 55,883 Total $ 1,149,849 $ 1,111,321 $ 3,664,149 $ 3,219,014 Total loan commitment volume $ 1,211,347 $ 1,464,235 $ 3,844,769 $ 3,623,649 Agency Business Loan Sales Data: Fannie Mae $ 837,132 $ 700,690 $ 2,511,978 $ 1,936,282 Freddie Mac 337,507 288,029 581,306 1,009,557 FHA 24,057 35,838 201,915 182,755 Private Label 67,965 14,567 300,713 515,086 SFR - Fixed Rate 8,759 43,012 22,931 55,874 Total $ 1,275,420 $ 1,082,136 $ 3,618,843 $ 3,699,554 Sales margin (fee-based services as a % of loan sales) (1) 1.46 % 1.33 % 1.54 % 1.34 % MSR rate (MSR income as a % of loan commitments) 1.16 % 1.33 % 1.27 % 1.44 % ________________________ (1) The nine months ended September 30, 2022 includes $17.1 million of gains recognized on Swaps related to the Private Label loans sold, which is included in gain (loss) on derivative instruments, net in the consolidated statements of income. September 30, 2023 Key Servicing Metrics for Agency Business: Servicing Portfolio UPB Wtd. Avg. Servicing Fee Rate (basis points) Wtd. Avg. Life of Servicing Portfolio (years) Fannie Mae $ 20,463,620 48.3 7.7 Freddie Mac 5,184,888 24.2 8.5 Private Label 2,371,475 19.2 7.3 FHA 1,322,832 14.5 19.9 Bridge 305,950 11.2 3.6 SFR - Fixed Rate 287,942 20.1 5.8 Total $ 29,936,707 39.7 8.3 December 31, 2022 Fannie Mae $ 19,038,124 50.2 8.0 Freddie Mac 5,153,207 25.0 9.0 Private Label 2,074,859 18.5 7.6 FHA 1,155,893 14.9 19.5 Bridge 301,182 12.5 1.7 SFR - Fixed Rate 274,764 19.8 6.0 Total $ 27,998,029 41.1 8.6 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The 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 2022 Annual Report. |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other entities 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. The ultimate impact of inflation, increasing interest rates, bank failures, tightening of capital markets and |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 requirement 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 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common Control Arrangements and ASU 2023-02, Investments – Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, both effective for us in the first quarter of 2024. In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which is effective for joint venture entities with a formation date on or after January 1, 2025. We currently do not have any transactions that fall under the scope of these ASUs; therefore, the adoptions are not expected to have an impact on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2022 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2022. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Recently Adopted Accounting Pronouncements | Description Adoption Date Effect on Financial Statements In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 requirement 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 The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Loans and Investments (Tables)
Loans and Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Investments | |
Summary of Structured Business Loan and Investment Portfolio | Our Structured Business loan and investment portfolio consists of ($ in thousands): September 30, 2023 Percent of Loan Wtd. Avg. Wtd. Avg. Wtd. Avg. Wtd. Avg. Bridge loans (4) $ 12,790,972 97 % 664 8.85 % 13.8 0 % 77 % Mezzanine loans 233,805 2 % 47 8.35 % 54.7 45 % 79 % Preferred equity investments 87,924 1 % 10 3.03 % 62.0 47 % 84 % Other loans (5) 9,694 <1% 2 9.72 % 15.6 0 % 62 % 13,122,395 100 % 723 8.80 % 14.9 1 % 77 % Allowance for credit losses (184,069) Unearned revenue (45,530) Loans and investments, net $ 12,892,796 December 31, 2022 Bridge loans (4) $ 14,096,054 98 % 692 8.17 % 19.8 0 % 76 % Mezzanine loans 213,499 1 % 44 8.13 % 63.1 42 % 77 % Preferred equity investments 110,725 1 % 8 7.63 % 39.2 46 % 79 % Other loans (5) 35,845 <1% 3 8.76 % 32.8 0 % 58 % 14,456,123 100 % 747 8.17 % 20.6 1 % 76 % Allowance for credit losses (132,559) Unearned revenue (68,890) Loans and investments, net $ 14,254,674 ________________________ (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 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 September 30, 2023 and December 31, 2022, bridge loans included 311 and 241, respectively, of SFR loans with a total gross loan commitment of $2.05 billion and $1.57 billion, respectively, of which $1.16 billion and $927.4 million, respectively, was funded. (5) Other loans represents variable rate SFR permanent loans. |
Schedule of the Loan Portfolio's Internal Risk Ratings and LTV Ratios by Asset Class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at September 30, 2023 is as follows ($ in thousands): UPB by Origination Year Total Wtd. Avg. Wtd. Avg. Asset Class / Risk Rating 2023 2022 2021 2020 2019 Prior Multifamily: Pass $ 97,186 $ 131,266 $ 97,269 $ 2,010 $ — $ 20,300 $ 348,031 Pass/Watch 673,165 2,378,519 3,015,502 81,560 112,416 58,394 6,319,556 Special Mention 799 1,830,803 2,353,938 219,050 140,685 — 4,545,275 Substandard — 290,492 153,697 24,099 — — 468,288 Doubtful — — 13,930 — 9,765 — 23,695 Total Multifamily $ 771,150 $ 4,631,080 $ 5,634,336 $ 326,719 $ 262,866 $ 78,694 $ 11,704,845 1 % 78 % Single-Family Rental: Percentage of portfolio 89 % Pass $ 22,208 $ — $ — $ — $ — $ — $ 22,208 Pass/Watch 161,976 466,391 355,176 86,347 20,965 — 1,090,855 Special Mention — 22,924 12,852 24,503 — — 60,279 Total Single-Family Rental $ 184,184 $ 489,315 $ 368,028 $ 110,850 $ 20,965 $ — $ 1,173,342 0 % 63 % Land: Percentage of portfolio 9 % Pass/Watch $ — $ — $ — $ 4,600 $ — $ — $ 4,600 Special Mention — — — 3,500 — — 3,500 Substandard — — — — — 127,928 127,928 Total Land $ — $ — $ — $ 8,100 $ — $ 127,928 $ 136,028 0 % 98 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ — $ 35,410 $ — $ — $ 35,410 Substandard — — — — — 45,025 45,025 Total Office $ — $ — $ — $ 35,410 $ — $ 45,025 $ 80,435 0 % 90 % Retail: Percentage of portfolio 1 % Pass/Watch $ — $ — $ — $ — $ 4,000 $ — $ 4,000 Special Mention — — — — — 3,445 3,445 Substandard — — — — — 18,600 18,600 Total Retail $ — $ — $ — $ — $ 4,000 $ 22,045 $ 26,045 11 % 71 % Other: Percentage of portfolio < 1% Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Other $ — $ — $ — $ — $ — $ 1,700 $ 1,700 63 % 63 % Percentage of portfolio < 1% Grand Total $ 955,334 $ 5,120,395 $ 6,002,364 $ 481,079 $ 287,831 $ 275,392 $ 13,122,395 1 % 77 % |
Schedule of the Changes in the Allowance for Credit Losses | A summary of the changes in the allowance for credit losses is as follows (in thousands): Three Months Ended September 30, 2023 Multifamily Land Office Retail Commercial Single-Family Rental Other Total Allowance for credit losses: Beginning balance $ 74,295 $ 77,902 $ 8,246 $ 5,819 $ 1,700 $ 1,077 $ 15 $ 169,054 Provision for credit losses (net of recoveries) 14,884 60 (76) — — 162 (15) 15,015 Ending balance $ 89,179 $ 77,962 $ 8,170 $ 5,819 $ 1,700 $ 1,239 $ — $ 184,069 Three Months Ended September 30, 2022 Allowance for credit losses: Beginning balance $ 27,958 $ 77,918 $ 7,031 $ 5,819 $ 1,700 $ 725 $ 180 $ 121,331 Provision for credit losses (net of recoveries) (675) (8) 306 — — 1,326 16 965 Ending balance $ 27,283 $ 77,910 $ 7,337 $ 5,819 $ 1,700 $ 2,051 $ 196 $ 122,296 Nine Months Ended September 30, 2023 Allowance for credit losses: Beginning balance $ 37,961 $ 78,068 $ 8,162 $ 5,819 $ 1,700 $ 781 $ 68 $ 132,559 Provision for credit losses (net of recoveries) 51,218 (106) 8 — — 458 (68) 51,510 Ending balance $ 89,179 $ 77,962 $ 8,170 $ 5,819 $ 1,700 $ 1,239 $ — $ 184,069 Nine Months Ended September 30, 2022 Allowance for credit losses: Beginning balance $ 18,707 $ 77,970 $ 8,073 $ 5,819 $ 1,700 $ 320 $ 652 $ 113,241 Provision for credit losses (net of recoveries) 8,576 (60) (736) — — 1,731 (456) 9,055 Ending balance $ 27,283 $ 77,910 $ 7,337 $ 5,819 $ 1,700 $ 2,051 $ 196 $ 122,296 |
Summary of Specific Loans Considered Impaired by Asset Class | A summary of our specific loans considered impaired by asset class is as follows ($ in thousands): September 30, 2023 Asset Class UPB (1) Carrying Allowance for Wtd. Avg. First Wtd. Avg. Last Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Multifamily 90,070 87,995 17,750 0 % 100 % Office 45,025 45,025 7,951 0 % 99 % Retail 22,045 17,670 5,817 13 % 78 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 293,055 $ 280,258 $ 111,087 1 % 97 % December 31, 2022 Land $ 134,215 $ 127,868 $ 77,869 0 % 99 % Retail 22,045 17,563 5,817 14 % 79 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 157,960 $ 147,131 $ 85,386 3 % 96 % ________________________ (1) Represents the UPB of thirteen and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2023 and December 31, 2022, respectively. |
Schedule of Non-Performing Loans by Asset Class | A summary of our non-performing loans by asset class is as follows (in thousands): September 30, 2023 December 31, 2022 UPB Less Than Greater Than UPB Less Than Greater Than Multifamily $ 152,717 $ 122,847 $ 29,870 $ 2,605 $ — $ 2,605 Retail 3,445 — 3,445 3,445 — 3,445 Commercial 1,700 — 1,700 1,700 — 1,700 Total $ 157,862 $ 122,847 $ 35,015 $ 7,750 $ — $ 7,750 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivable, Held-for-Sale [Abstract] | |
Schedule of Loans Held-for-Sale, Net | Loans held-for-sale, net consists of the following (in thousands): September 30, 2023 December 31, 2022 Fannie Mae $ 257,371 $ 173,020 Freddie Mac 86,089 8,938 Private Label 11,350 152,735 SFR - Fixed Rate 8,710 12,352 FHA 4,810 21,021 368,330 368,066 Fair value of future MSR 4,302 5,557 Unrealized impairment loss (2,891) (15,703) Unearned discount (5,421) (3,850) Loans held-for-sale, net $ 364,320 $ 354,070 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Capitalized MSR Activity | A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Originated Acquired Total Originated Acquired Total Beginning balance $ 383,267 $ 11,143 $ 394,410 $ 386,878 $ 14,593 $ 401,471 Additions 16,550 — 16,550 49,416 — 49,416 Amortization (14,988) (912) (15,900) (43,866) (3,054) (46,920) Write-downs and payoffs (2,400) (457) (2,857) (9,999) (1,765) (11,764) Ending balance $ 382,429 $ 9,774 $ 392,203 $ 382,429 $ 9,774 $ 392,203 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Beginning balance $ 391,397 $ 20,137 $ 411,534 $ 395,573 $ 27,161 $ 422,734 Additions 18,907 — 18,907 63,002 — 63,002 Amortization (13,355) (1,427) (14,782) (39,348) (5,184) (44,532) Write-downs and payoffs (9,957) (1,816) (11,773) (32,235) (5,083) (37,318) Ending balance $ 386,992 $ 16,894 $ 403,886 $ 386,992 $ 16,894 $ 403,886 |
Summary of Expected Amortization of Capitalized MSRs | The expected amortization of capitalized MSRs recorded at September 30, 2023 is as follows (in thousands): Year Amortization 2023 (three months ending 12/31/2023) $ 16,169 2024 63,855 2025 60,481 2026 54,479 2027 49,654 2028 43,110 Thereafter 104,455 Total $ 392,203 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Product and Geographic Concentration | Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): September 30, 2023 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total Fannie Mae $ 20,463,620 68 % Texas 11 % Freddie Mac 5,184,888 17 % New York 11 % Private Label 2,371,475 8 % North Carolina 8 % FHA 1,322,832 5 % California 8 % Bridge (2) 305,950 1 % Georgia 6 % SFR - Fixed Rate 287,942 1 % Florida 6 % Total $ 29,936,707 100 % New Jersey 5 % Illinois 4 % Other (3) 41 % Total 100 % December 31, 2022 Fannie Mae $ 19,038,124 68 % Texas 11 % Freddie Mac 5,153,207 18 % New York 11 % Private Label 2,074,859 8 % California 8 % FHA 1,155,893 4 % North Carolina 8 % Bridge (2) 301,182 1 % Georgia 6 % SFR - Fixed Rate 274,764 1 % Florida 5 % Total $ 27,998,029 100 % New Jersey 5 % Illinois 4 % Other (3) 42 % Total 100 % ________________________ (1) Excludes loans which we are not collecting a servicing fee. (2) Represents bridge loans that were either sold by our Structured Business or refinanced by a third-party lender which we retained the right to service. (3) No other individual state represented 4% or more of the total. |
Schedule of Components of Servicing Revenue, Net | The components of servicing revenue, net are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Servicing fees $ 32,191 $ 30,631 $ 92,479 $ 93,702 Interest earned on escrows 20,985 7,450 57,501 10,073 Prepayment fees 1,044 11,218 6,080 42,588 Write-offs of MSRs (2,857) (11,773) (11,764) (37,318) Amortization of MSRs (15,900) (14,782) (46,920) (44,532) Servicing revenue, net $ 35,463 $ 22,744 $ 97,376 $ 64,513 |
Securities Held-To-Maturity (Ta
Securities Held-To-Maturity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract] | |
Schedule of Securities Held-To-Maturity | A summary of our securities held-to-maturity is as follows (in thousands): Face Value Net Carrying Unrealized Estimated Allowance for September 30, 2023 APL certificates $ 192,791 $ 127,547 $ (33,337) $ 94,210 $ 2,340 B Piece bonds 38,786 27,625 4,773 32,398 3,603 Total $ 231,577 $ 155,172 $ (28,564) $ 126,608 $ 5,943 December 31, 2022 APL certificates $ 192,791 $ 123,475 $ (13,348) $ 110,127 $ 2,783 B Piece bonds 41,464 33,072 1,372 34,444 370 Total $ 234,255 $ 156,547 $ (11,976) $ 144,571 $ 3,153 |
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 September 30, 2023 APL Certificates B Piece Bonds Total Beginning balance $ 3,375 $ 1,159 $ 4,534 Provision for credit loss expense/(reversal) (1,035) 2,444 1,409 Ending balance $ 2,340 $ 3,603 $ 5,943 Nine Months Ended September 30, 2023 Beginning balance $ 2,783 $ 370 $ 3,153 Provision for credit loss expense/(reversal) (443) 3,233 2,790 Ending balance $ 2,340 $ 3,603 $ 5,943 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Method Investments | We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows (in thousands): Investments in Equity Affiliates at UPB of Loans to Equity Affiliates at September 30, 2023 Equity Affiliates September 30, 2023 December 31, 2022 Arbor Residential Investor LLC $ 33,447 $ 46,951 $ — Fifth Wall Ventures 13,422 13,584 — AMAC Holdings III LLC 13,156 15,825 — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 450 — JT Prime 425 425 — North Vermont Avenue — — — West Shore Café — — 1,688 Lexford Portfolio — — — East River Portfolio — — — Total $ 62,795 $ 79,130 $ 1,688 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | Borrowings under our credit and repurchase facilities are as follows ($ in thousands): September 30, 2023 December 31, 2022 Current Extended Note Debt Collateral Wtd. Avg. Debt Collateral Structured Business $2.5B joint repurchase facility (2) Jul. 2025 Jul. 2026 V $ 923,599 $ 1,438,971 7.72 % $ 1,516,657 $ 2,099,447 $1B repurchase facility (2) Aug. 2025 Aug. 2026 V 418,206 621,759 7.58 % 498,666 703,740 $500M repurchase facility (5) N/A V 374,072 505,139 8.34 % 154,653 188,563 $499M repurchase facility (2)(3) Oct. 2023 (6) N/A V 343,726 491,190 7.67 % 351,056 504,506 $450M repurchase facility Mar. 2024 Mar. 2026 V 328,650 452,318 7.50 % 344,237 450,736 $450M repurchase facility Jan. 2024 Oct. 2024 V 93,410 120,947 7.01 % 186,639 239,678 $250M credit facility July 2024 N/A V 18,438 23,088 7.28 % 33,221 43,238 $225M credit facility Jan. 2024 Jan. 2025 V 94,913 148,041 7.97 % 47,398 81,119 $200M repurchase facility Mar. 2025 Mar. 2026 V 73,751 105,076 7.97 % 32,494 47,750 $200M repurchase facility Jan. 2024 Jan. 2025 V 115,748 151,890 7.36 % 154,516 200,099 $174M loan specific credit facilities Oct. 2023 (6) to Aug. 2025 Aug. 2025 to Aug. 2027 V/F 173,862 251,049 7.45 % 156,107 225,805 $50M credit facility Apr. 2024 Apr. 2025 V 29,200 36,500 7.51 % 29,194 36,500 $40M credit facility Apr. 2026 Apr. 2027 V — — — — — $35M working capital facility Apr. 2024 N/A V — — — — — $25M credit facility Oct. 2024 N/A V 18,248 24,625 8.02 % 18,701 24,572 Repurchase facility - securities (2)(4) N/A N/A V 31,032 — 7.11 % 12,832 — Structured Business total $ 3,036,855 $ 4,370,593 7.70 % $ 3,536,371 $ 4,845,753 Agency Business $750M ASAP agreement N/A N/A V $ 54,618 $ 55,220 6.46 % $ 29,476 $ 30,291 $500M joint repurchase facility (2) Jul. 2025 Jul. 2026 V 7,701 11,350 7.74 % 104,629 135,641 $500M repurchase facility Nov. 2023 N/A V 144,818 145,618 6.69 % 66,778 66,866 $200M credit facility Mar. 2024 N/A V 143,654 144,168 6.71 % 31,475 33,177 $100M credit facility July 2024 N/A V — — — 57,887 57,974 $50M credit facility Sept. 2024 N/A V 3,264 3,264 6.66 % 14,664 14,671 $1M repurchase facility (2)(3) Oct. 2023 (6) N/A V 531 880 7.67 % 534 920 Agency Business total $ 354,586 $ 360,500 6.69 % $ 305,443 $ 339,540 Consolidated total $ 3,391,441 $ 4,731,093 7.59 % $ 3,841,814 $ 5,185,293 ________________________ V = Variable Note Rate; F = Fixed Note Rate (1) At September 30, 2023 and December 31, 2022, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $6.6 million and $13.3 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $0.5 million and $0.9 million, respectively. (2) These facilities are subject to margin call provisions associated with changes in interest spreads. (3) A portion of this facility was used to finance a fixed-rate SFR permanent loan reported through our Agency Business. (4) At September 30, 2023, this facility was collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $44.4 million. At December 31, 2022, this facility was collateralized by B Piece bonds with a carrying value of $33.1 million. (5) The commitment amount under this repurchase facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans. (6) These credit facilities, with a total committed amount of $514.5 million, mature on October 30, 2023 and we are currently in negotiations with these lenders to amend these facilities and extend the maturity. Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash September 30, 2023 Face Value Carrying Wtd. Avg. UPB Carrying Restricted CLO 19 $ 872,812 $ 867,904 7.77 % $ 1,014,554 $ 1,010,753 $ 4,527 CLO 18 1,652,812 1,647,326 7.22 % 1,908,793 1,903,837 20,983 CLO 17 1,714,125 1,709,255 7.10 % 1,901,897 1,896,347 149,206 CLO 16 1,237,500 1,233,286 6.73 % 1,343,886 1,340,303 91,434 CLO 15 674,412 672,897 6.78 % 770,602 768,436 19,714 CLO 14 (5) 655,475 653,876 6.74 % 756,030 754,189 13,920 Total CLOs 6,807,136 6,784,544 7.08 % 7,695,762 7,673,865 299,784 Q Series securitization 222,066 220,090 7.31 % 296,088 294,876 — Total securitized debt $ 7,029,202 $ 7,004,634 7.09 % $ 7,991,850 $ 7,968,741 $ 299,784 December 31, 2022 CLO 19 $ 872,812 $ 866,605 6.75 % $ 952,268 $ 947,336 $ 64,300 CLO 18 1,652,812 1,645,711 6.19 % 1,899,174 1,891,215 85,970 CLO 17 1,714,125 1,707,676 6.16 % 1,911,866 1,904,732 145,726 CLO 16 1,237,500 1,231,887 5.79 % 1,307,244 1,301,794 106,495 CLO 15 674,412 671,532 5.84 % 797,755 795,078 2,861 CLO 14 655,475 652,617 5.80 % 732,247 730,057 37,090 CLO 13 462,769 461,005 6.03 % 552,182 550,924 37,875 CLO 12 379,283 378,331 6.09 % 466,474 465,003 500 Total CLOs 7,649,188 7,615,364 6.10 % 8,619,210 8,586,139 480,817 Q Series securitization 236,878 233,906 6.30 % 315,837 313,965 — Total securitized debt $ 7,886,066 $ 7,849,270 6.11 % $ 8,935,047 $ 8,900,104 $ 480,817 ________________________ (1) Debt carrying value is net of $24.6 million and $36.8 million of deferred financing fees at September 30, 2023 and December 31, 2022, respectively. (2) At September 30, 2023 and December 31, 2022, the aggregate weighted average note rate for our securitized debt, including certain fees and costs, was 7.34% and 6.32%, respectively. (3) At September 30, 2023, four loans with an aggregate UPB of $89.8 million were deemed a "credit risk" as defined by the collateralized loan obligations ("CLO") indentures. At December 31, 2022, there was no collateral deemed a “credit risk” as defined by the CLO indentures. A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Excludes restricted cash related to interest payments, delayed fundings and expenses totaling $108.5 million and $230.0 million at September 30, 2023 and December 31, 2022, respectively. (5) The replenishment period of CLO 14 ended in September 2023. |
Summary of Senior Unsecured Notes | A summary of our senior unsecured notes is as follows ($ in thousands): Senior Issuance September 30, 2023 December 31, 2022 Maturity UPB Carrying Wtd. Avg. UPB Carrying Wtd. Avg. 7.75% Notes (3) Mar. 2023 Mar. 2026 $ 95,000 $ 93,552 7.75 % $ — $ — — 8.50% Notes (3) Oct. 2022 Oct. 2027 150,000 147,904 8.50 % 150,000 147,519 8.50 % 5.00% Notes (3) Dec. 2021 Dec. 2028 180,000 177,769 5.00 % 180,000 177,450 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 267,555 4.50 % 270,000 266,926 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 173,386 5.00 % 175,000 172,917 5.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 273,322 4.50 % 275,000 272,960 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,633 4.75 % 110,000 109,369 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,805 5.75 % 90,000 89,514 5.75 % 8.00% Notes (3) Apr. 2020 Apr. 2023 — — — 70,750 70,613 8.00 % 5.625% Notes (4) Mar. 2018 May 2023 — — — 78,850 78,726 5.63 % $ 1,345,000 $ 1,332,926 5.41 % $ 1,399,600 $ 1,385,994 5.40 % ________________________ (1) At September 30, 2023 and December 31, 2022, the carrying value is net of deferred financing fees of $12.1 million and $13.6 million, respectively. (2) At September 30, 2023 and December 31, 2022, the aggregate weighted average note rate, including certain fees and costs, was 5.70% and 5.69%, respectively. (3) These notes can be redeemed by us prior to three months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. (4) These notes can be redeemed by us at any time prior to the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. |
Summary of UPB and Net Carrying Value of Convertible Notes | The UPB and net carrying value of our convertible notes are as follows (in thousands): Period UPB Unamortized Deferred Net Carrying September 30, 2023 $ 287,500 $ 5,072 $ 282,428 December 31, 2022 $ 287,500 $ 7,144 $ 280,356 |
Summary of CLO Compliance Tests | Our CLO compliance tests as of the most recent determination dates in October 2023 are as follows: Cash Flow Triggers CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 CLO 19 Overcollateralization (1) Current 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % Limit 118.76 % 119.85 % 120.21 % 121.51 % 123.03 % 119.30 % Pass / Fail Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 153.74 % 151.78 % 148.88 % 143.35 % 148.56 % 132.54 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail 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. |
Summary of CLO Overcollateralization Ratios | Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows: Determination (1) CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 CLO 19 October 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % July 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % April 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % January 2023 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % October 2022 119.76 % 120.85 % 121.21 % 122.51 % 124.03 % 120.30 % ________________________ (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) | 9 Months Ended |
Sep. 30, 2023 | |
Loss Contingency Accrual, Disclosures [Abstract] | |
Schedule of Allowance for Loss-Sharing | Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Beginning balance $ 66,681 $ 53,053 $ 57,168 $ 56,064 Provisions for loss sharing 1,703 2,346 13,992 2,593 Provisions reversal for loan repayments (24) (1,934) (1,464) (4,792) Recoveries (charge-offs), net 901 46 (435) (354) Ending balance $ 69,261 $ 53,511 $ 69,261 $ 53,511 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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): September 30, 2023 Fair Value Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities Rate lock commitments 4 $ 107,093 Other assets/other liabilities $ 962 $ (2,339) Forward sale commitments 36 455,363 Other assets/other liabilities 2,379 (5,822) Swaps 82 8,200 — — $ 570,656 $ 3,341 $ (8,161) December 31, 2022 Rate lock commitments 6 $ 91,472 Other assets/other liabilities $ 354 $ (1,070) Forward sale commitments 27 294,451 Other assets/other liabilities 1,151 (3,827) Swaps 1,298 129,800 — — $ 515,723 $ 1,505 $ (4,897) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Principal Amounts, Carrying Values, and Estimated Fair Values of Financial Instruments | The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands): September 30, 2023 December 31, 2022 Principal / Carrying Estimated Principal / Carrying Estimated Financial assets: Loans and investments, net $ 13,122,395 $ 12,892,796 $ 12,911,172 $ 14,456,123 $ 14,254,674 $ 14,468,418 Loans held-for-sale, net 368,330 364,320 374,534 368,066 354,070 362,054 Capitalized mortgage servicing rights, net n/a 392,203 538,078 n/a 401,471 530,913 Securities held-to-maturity, net 231,577 155,172 126,608 234,255 156,547 144,571 Derivative financial instruments 130,778 3,341 3,341 111,950 1,505 1,505 Financial liabilities: Credit and repurchase facilities $ 3,398,451 $ 3,391,441 $ 3,382,933 $ 3,856,009 $ 3,841,814 $ 3,828,192 Securitized debt 7,029,202 7,004,634 6,899,147 7,886,066 7,849,270 7,560,541 Senior unsecured notes 1,345,000 1,332,926 1,211,633 1,399,600 1,385,994 1,262,560 Convertible senior unsecured notes 287,500 282,428 290,019 287,500 280,356 287,834 Junior subordinated notes 154,336 143,695 105,821 154,336 143,128 103,977 Derivative financial instruments 431,678 8,161 8,161 273,973 4,897 4,897 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of these financial assets and liabilities are determined using the following input levels at September 30, 2023 (in thousands): Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 3,341 $ 3,341 $ — $ 2,379 $ 962 Financial liabilities: Derivative financial instruments $ 8,161 $ 8,161 $ — $ 8,161 $ — |
Fair Value Measurements, Nonrecurring | The fair values of these financial and non-financial assets, if applicable, are determined using the following input levels at September 30, 2023 (in thousands): Net Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 169,171 $ 169,171 $ — $ — $ 169,171 Loans held-for-sale (2) 17,169 17,169 — 17,169 — $ 186,340 $ 186,340 $ — $ 17,169 $ 169,171 ________________________ (1) We had an allowance for credit losses of $111.1 million relating to thirteen impaired loans with an aggregate carrying value, before loan loss reserves, of $280.3 million at September 30, 2023. (2) We had unrealized impairment losses of $2.9 million related to six held-for-sale loans with an aggregate carrying value, before unrealized impairment losses, of $20.1 million. |
Fair Value Measurement Inputs and Valuation Techniques | Quantitative information about Level 3 fair value measurements at September 30, 2023 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Multifamily $ 70,246 Discounted cash flows Capitalization rate 6.53 % Land 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 7.50 % Office 37,074 Discounted cash flows Capitalization rate 5.25 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,851 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Derivative financial instruments: Rate lock commitments 962 Discounted cash flows W/A discount rate 12.27 % |
Schedule of Roll Forward of Level 3 Derivative Instruments | A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivative assets and liabilities, net Beginning balance $ 757 $ 1,035 $ 354 $ 295 Settlements (13,369) (16,554) (46,123) (47,491) Realized gains recorded in earnings 12,612 15,519 45,769 47,196 Unrealized gains recorded in earnings 962 1,554 962 1,554 Ending balance $ 962 $ 1,554 $ 962 $ 1,554 |
Schedule of Components of Fair 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): September 30, 2023 Notional/ Fair Value of Interest Rate Unrealized Total Fair Value Rate lock commitments $ 107,093 $ 962 $ (2,339) $ — $ (1,377) Forward sale commitments 455,363 — 2,339 — 2,339 Loans held-for-sale, net (1) 368,330 4,302 — (2,891) 1,411 Total $ 5,264 $ — $ (2,891) $ 2,373 ________________________ |
Fair Value Measurements, Recurring and Nonrecurring | The fair value of these assets and liabilities are determined using the following input levels at September 30, 2023 (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 $ 12,892,796 $ 12,911,172 $ — $ — $ 12,911,172 Loans held-for-sale, net 364,320 374,534 — 370,232 4,302 Capitalized mortgage servicing rights, net 392,203 538,078 — — 538,078 Securities held-to-maturity, net 155,172 126,608 — — 126,608 Financial liabilities: Credit and repurchase facilities $ 3,391,441 $ 3,382,933 $ — $ 354,586 $ 3,028,347 Securitized debt 7,004,634 6,899,147 — — 6,899,147 Senior unsecured notes 1,332,926 1,211,633 1,211,633 — — Convertible senior unsecured notes 282,428 290,019 — 290,019 — Junior subordinated notes 143,695 105,821 — — 105,821 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | Debt Obligations and Operating Leases. At September 30, 2023, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands): Year Debt Obligations Minimum Annual Operating Lease Payments Total 2023 (three months ending December 31, 2023) $ 858,768 $ 2,300 $ 861,068 2024 2,004,350 10,188 2,014,538 2025 3,378,563 10,555 3,389,118 2026 4,523,241 10,627 4,533,868 2027 1,115,231 9,225 1,124,456 2028 180,000 8,624 188,624 Thereafter 154,336 27,755 182,091 Total $ 12,214,489 $ 79,274 $ 12,293,763 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The assets and liabilities related to these consolidated Securitization Entities are as follows (in thousands): September 30, 2023 December 31, 2022 Assets: Restricted cash $ 408,569 $ 710,775 Loans and investments, net 7,968,741 8,900,104 Other assets 311,988 174,382 Total assets $ 8,689,298 $ 9,785,261 Liabilities: Securitized debt $ 7,004,634 $ 7,849,270 Other liabilities 23,259 26,754 Total liabilities $ 7,027,893 $ 7,876,024 |
Schedule of Unconsolidated Variable Interest Entities | A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at September 30, 2023 is as follows (in thousands): Type Carrying Amount (1) Loans $ 433,532 APL certificates 129,887 B Piece bonds 31,228 Equity investments 17,771 Agency interest only strips 177 Total $ 612,595 ________________________ (1) Represents the carrying amount of loans and investments before reserves. At September 30, 2023, $172.9 million of loans to VIEs had corresponding specific loan loss reserves of $85.8 million. The maximum loss exposure at September 30, 2023 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Payable | Dividends declared (on a per share basis) during the nine months ended September 30, 2023 are as follows: Common Stock Preferred Stock Dividend Declaration Date Dividend Declaration Date Series D Series E Series F February 15, 2023 $ 0.40 January 3, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 May 3, 2023 $ 0.42 March 31, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 July 26, 2023 $ 0.43 June 30, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 September 29, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data): Three Months Ended September 30, 2023 2022 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 77,924 $ 77,924 $ 62,710 $ 62,710 Net income attributable to noncontrolling interest (2) — 6,789 — 6,002 Interest expense on convertible notes — 6,081 — 5,797 Net income attributable to common stockholders and noncontrolling interest $ 77,924 $ 90,794 $ 62,710 $ 74,509 Weighted average shares outstanding 187,023,395 187,023,395 170,227,553 170,227,553 Dilutive effect of OP Units (2) — 16,293,589 — 16,293,589 Dilutive effect of convertible notes — 17,312,382 — 18,815,399 Dilutive effect of restricted stock units (3) — 699,452 — 528,475 Weighted average shares outstanding 187,023,395 221,328,818 170,227,553 205,865,016 Net income per common share (1) $ 0.42 $ 0.41 $ 0.37 $ 0.36 Nine Months Ended September 30, 2023 2022 Net income attributable to common stockholders (1) $ 238,407 $ 238,407 $ 196,678 $ 196,678 Net income attributable to noncontrolling interest (2) — 21,200 — 19,811 Interest expense on convertible notes — 18,244 — 13,786 Net income attributable to common stockholders and noncontrolling interest $ 238,407 $ 277,851 $ 196,678 $ 230,275 Weighted average shares outstanding 183,340,149 183,340,149 162,292,235 162,292,235 Dilutive effect of OP Units (2) — 16,293,589 — 16,308,361 Dilutive effect of convertible notes — 17,271,419 — 16,370,528 Dilutive effect of restricted stock units (3) — 552,242 — 558,216 Weighted average shares outstanding 183,340,149 217,457,399 162,292,235 195,529,340 Net income per common share (1) $ 1.30 $ 1.28 $ 1.21 $ 1.18 ________________________ (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Our chief executive officer was granted restricted stock units, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Statement of Income and Balance Sheet by Segment | Three Months Ended September 30, 2023 Structured Agency Other / Consolidated Interest income $ 322,819 $ 13,655 $ — $ 336,474 Interest expense 222,996 6,184 — 229,180 Net interest income 99,823 7,471 — 107,294 Other revenue: Gain on sales, including fee-based services, net — 18,619 — 18,619 Mortgage servicing rights — 14,109 — 14,109 Servicing revenue — 51,363 — 51,363 Amortization of MSRs — (15,900) — (15,900) Property operating income 1,450 — — 1,450 Loss on derivative instruments, net — (421) — (421) Other income (loss), net 751 (578) — 173 Total other revenue 2,201 67,192 — 69,393 Other expenses: Employee compensation and benefits 12,912 26,898 — 39,810 Selling and administrative 5,291 7,076 — 12,367 Property operating expenses 1,479 — — 1,479 Depreciation and amortization 1,114 1,172 — 2,286 Provision for loss sharing (net of recoveries) — 1,679 — 1,679 Provision for credit losses (net of recoveries) 17,243 1,409 — 18,652 Total other expenses 38,039 38,234 — 76,273 Income before extinguishment of debt, income from equity affiliates and income taxes 63,985 36,429 — 100,414 Loss on extinguishment of debt (314) — — (314) Income from equity affiliates 809 — — 809 Provision for income taxes 1,078 (6,932) — (5,854) Net income 65,558 29,497 — 95,055 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 6,789 6,789 Net income attributable to common stockholders $ 55,216 $ 29,497 $ (6,789) $ 77,924 Three Months Ended September 30, 2022 Structured Agency Other / Consolidated Interest income $ 249,539 $ 10,239 $ — $ 259,778 Interest expense 157,325 3,127 — 160,452 Net interest income 92,214 7,112 — 99,326 Other revenue: Gain on sales, including fee-based services, net — 14,360 — 14,360 Mortgage servicing rights — 19,408 — 19,408 Servicing revenue — 37,526 — 37,526 Amortization of MSRs — (14,782) — (14,782) Property operating income 445 — — 445 Loss on derivative instruments, net — (15,909) — (15,909) Other income (loss), net 1,763 (7,777) — (6,014) Total other revenue 2,208 32,826 — 35,034 Other expenses: Employee compensation and benefits 13,342 25,469 — 38,811 Selling and administrative 5,961 7,264 — 13,225 Property operating expenses 366 — — 366 Depreciation and amortization 906 1,172 — 2,078 Provision for loss sharing (net of recoveries) — 412 — 412 Provision for credit losses (net of recoveries) 2,206 68 — 2,274 Total other expenses 22,781 34,385 — 57,166 Income before extinguishment of debt, income from equity affiliates and income taxes 71,641 5,553 — 77,194 Loss on extinguishment of debt (3,262) — — (3,262) Income from equity affiliates 4,748 — — 4,748 Benefit for income taxes 319 55 — 374 Net income 73,446 5,608 — 79,054 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 6,002 6,002 Net income attributable to common stockholders $ 63,104 $ 5,608 $ (6,002) $ 62,710 Nine Months Ended September 30, 2023 Structured Agency Other / Consolidated Interest income $ 962,301 $ 37,858 $ — $ 1,000,159 Interest expense 658,856 16,893 — 675,749 Net interest income 303,445 20,965 — 324,410 Other revenue: Gain on sales, including fee-based services, net — 55,795 — 55,795 Mortgage servicing rights — 48,769 — 48,769 Servicing revenue — 144,296 — 144,296 Amortization of MSRs — (46,920) — (46,920) Property operating income 4,261 — — 4,261 Loss on derivative instruments, net — (3,582) — (3,582) Other income, net 3,420 1,679 — 5,099 Total other revenue 7,681 200,037 — 207,718 Other expenses: Employee compensation and benefits 41,991 81,527 — 123,518 Selling and administrative 17,835 20,739 — 38,574 Property operating expenses 4,227 — — 4,227 Depreciation and amortization 3,779 3,518 — 7,297 Provision for loss sharing (net of recoveries) — 12,528 — 12,528 Provision for credit losses (net of recoveries) 52,257 2,790 — 55,047 Total other expenses 120,089 121,102 — 241,191 Income before extinguishment of debt, income from equity affiliates and income taxes 191,037 99,900 — 290,937 Loss on extinguishment of debt (1,561) — — (1,561) Income from equity affiliates 20,694 — — 20,694 Provision for income taxes 307 (19,743) — (19,436) Net income 210,477 80,157 — 290,634 Preferred stock dividends 31,027 — — 31,027 Net income attributable to noncontrolling interest — — 21,200 21,200 Net income attributable to common stockholders $ 179,450 $ 80,157 $ (21,200) $ 238,407 Nine Months Ended September 30, 2022 Structured Agency Other / Consolidated Interest income $ 597,847 $ 29,957 $ — $ 627,804 Interest expense 338,692 11,387 — 350,079 Net interest income 259,155 18,570 — 277,725 Other revenue: Gain on sales, including fee-based services, net — 32,526 — 32,526 Mortgage servicing rights — 52,287 — 52,287 Servicing revenue — 109,045 — 109,045 Amortization of MSRs — (44,532) — (44,532) Property operating income 1,031 — — 1,031 Gain on derivative instruments, net — 10,083 — 10,083 Other loss, net (4,370) (11,691) — (16,061) Total other revenue (3,339) 147,718 — 144,379 Other expenses: Employee compensation and benefits 42,694 77,042 — 119,736 Selling and administrative 19,799 21,161 — 40,960 Property operating expenses 1,443 — — 1,443 Depreciation and amortization 2,574 3,518 — 6,092 Provision for loss sharing (net of recoveries) — (2,199) — (2,199) Provision for credit losses (net of recoveries) 9,363 337 — 9,700 Total other expenses 75,873 99,859 — 175,732 Income before extinguishment of debt, income from equity affiliates and income taxes 179,943 66,429 — 246,372 Loss on extinguishment of debt (4,612) — — (4,612) Income from equity affiliates 18,507 — — 18,507 Provision for income taxes (1,368) (11,798) — (13,166) Net income 192,470 54,631 — 247,101 Preferred stock dividends 30,612 — — 30,612 Net income attributable to noncontrolling interest — — 19,811 19,811 Net income attributable to common stockholders $ 161,858 $ 54,631 $ (19,811) $ 196,678 ________________________ (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. September 30, 2023 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 499,511 $ 395,787 $ 895,298 Restricted cash 410,056 9,102 419,158 Loans and investments, net 12,892,796 — 12,892,796 Loans held-for-sale, net — 364,320 364,320 Capitalized mortgage servicing rights, net — 392,203 392,203 Securities held-to-maturity, net — 155,172 155,172 Investments in equity affiliates 62,795 — 62,795 Goodwill and other intangible assets 12,500 80,051 92,551 Other assets and due from related party 536,789 91,607 628,396 Total assets $ 14,414,447 $ 1,488,242 $ 15,902,689 Liabilities: Debt obligations $ 11,800,537 $ 354,587 $ 12,155,124 Allowance for loss-sharing obligations — 69,261 69,261 Other liabilities and due to related parties 323,061 114,742 437,803 Total liabilities $ 12,123,598 $ 538,590 $ 12,662,188 December 31, 2022 Assets: Cash and cash equivalents $ 200,514 $ 333,843 $ 534,357 Restricted cash 713,615 193 713,808 Loans and investments, net 14,254,674 — 14,254,674 Loans held-for-sale, net — 354,070 354,070 Capitalized mortgage servicing rights, net — 401,471 401,471 Securities held-to-maturity, net — 156,547 156,547 Investments in equity affiliates 79,130 — 79,130 Goodwill and other intangible assets 12,500 83,569 96,069 Other assets and due from related party 367,837 81,022 448,859 Total assets $ 15,628,270 $ 1,410,715 $ 17,038,985 Liabilities: Debt obligations $ 13,195,120 $ 305,442 $ 13,500,562 Allowance for loss-sharing obligations — 57,168 57,168 Other liabilities and due to related parties 299,559 109,817 409,376 Total liabilities $ 13,494,679 $ 472,427 $ 13,967,106 |
Schedule of Origination Data and Loans Sales Data By Segment | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Origination Data: Structured Business Bridge: Multifamily $ 92,000 $ 592,844 $ 376,630 $ 5,172,770 SFR 140,379 163,851 325,432 452,240 232,379 756,695 702,062 5,625,010 Mezzanine / Preferred Equity 7,779 17,970 15,124 26,109 Total new loan originations $ 240,158 $ 774,665 $ 717,186 $ 5,651,119 Number of Loans Originated 42 52 92 268 SFR Commitments $ 429,452 $ 457,564 $ 683,984 $ 726,071 Loan runoff $ 664,792 $ 911,790 $ 2,536,661 $ 2,700,748 Agency Business Origination Volumes by Investor: Fannie Mae $ 721,398 $ 629,610 $ 2,596,329 $ 1,744,739 Freddie Mac 339,241 350,980 658,457 1,057,743 FHA 19,215 78,382 230,707 168,736 Private Label 67,965 35,671 159,328 191,913 SFR - Fixed Rate 2,030 16,678 19,328 55,883 Total $ 1,149,849 $ 1,111,321 $ 3,664,149 $ 3,219,014 Total loan commitment volume $ 1,211,347 $ 1,464,235 $ 3,844,769 $ 3,623,649 Agency Business Loan Sales Data: Fannie Mae $ 837,132 $ 700,690 $ 2,511,978 $ 1,936,282 Freddie Mac 337,507 288,029 581,306 1,009,557 FHA 24,057 35,838 201,915 182,755 Private Label 67,965 14,567 300,713 515,086 SFR - Fixed Rate 8,759 43,012 22,931 55,874 Total $ 1,275,420 $ 1,082,136 $ 3,618,843 $ 3,699,554 Sales margin (fee-based services as a % of loan sales) (1) 1.46 % 1.33 % 1.54 % 1.34 % MSR rate (MSR income as a % of loan commitments) 1.16 % 1.33 % 1.27 % 1.44 % ________________________ (1) The nine months ended September 30, 2022 includes $17.1 million of gains recognized on Swaps related to the Private Label loans sold, which is included in gain (loss) on derivative instruments, net in the consolidated statements of income. |
Schedule of Key Servicing Metrics for Agency Business | September 30, 2023 Key Servicing Metrics for Agency Business: Servicing Portfolio UPB Wtd. Avg. Servicing Fee Rate (basis points) Wtd. Avg. Life of Servicing Portfolio (years) Fannie Mae $ 20,463,620 48.3 7.7 Freddie Mac 5,184,888 24.2 8.5 Private Label 2,371,475 19.2 7.3 FHA 1,322,832 14.5 19.9 Bridge 305,950 11.2 3.6 SFR - Fixed Rate 287,942 20.1 5.8 Total $ 29,936,707 39.7 8.3 December 31, 2022 Fannie Mae $ 19,038,124 50.2 8.0 Freddie Mac 5,153,207 25.0 9.0 Private Label 2,074,859 18.5 7.6 FHA 1,155,893 14.9 19.5 Bridge 301,182 12.5 1.7 SFR - Fixed Rate 274,764 19.8 6.0 Total $ 27,998,029 41.1 8.6 |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Loans and Investments - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loans and Investments | ||||||
Loans and investments, gross | $ 13,122,395 | $ 14,456,123 | ||||
Allowance for credit losses | (184,069) | (132,559) | $ (169,054) | $ (122,296) | $ (121,331) | $ (113,241) |
Unearned revenue | (45,530) | (68,890) | ||||
Loans and investments, net | $ 12,892,796 | $ 14,254,674 | ||||
Percent of Total | 100% | 100% | ||||
Loan Count | loan | 723 | 747 | ||||
Wtd. Avg. Pay Rate (as a percent) | 8.80% | 8.17% | ||||
Wtd. Avg. Remaining Months to Maturity | 14 months 27 days | 20 months 18 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | 1% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77% | 76% | ||||
Single-Family Rental | ||||||
Loans and Investments | ||||||
Allowance for credit losses | $ (1,239) | $ (781) | (1,077) | $ (2,051) | $ (725) | $ (320) |
Bridge loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 12,790,972 | $ 14,096,054 | $ 70,500 | |||
Percent of Total | 97% | 98% | ||||
Loan Count | loan | 664 | 692 | ||||
Wtd. Avg. Pay Rate (as a percent) | 8.85% | 8.17% | ||||
Wtd. Avg. Remaining Months to Maturity | 13 months 24 days | 19 months 24 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | 0% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77% | 76% | ||||
Bridge loans | Single-Family Rental | ||||||
Loans and Investments | ||||||
Number of loans under the loan portfolio | loan | 311 | 241 | ||||
Total loan commitment | $ 2,050,000 | $ 1,570,000 | ||||
Mezzanine loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 233,805 | $ 213,499 | ||||
Percent of Total | 2% | 1% | ||||
Loan Count | loan | 47 | 44 | ||||
Wtd. Avg. Pay Rate (as a percent) | 8.35% | 8.13% | ||||
Wtd. Avg. Remaining Months to Maturity | 54 months 21 days | 63 months 3 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 45% | 42% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 79% | 77% | ||||
Preferred equity investments | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 87,924 | $ 110,725 | ||||
Percent of Total | 1% | 1% | ||||
Loan Count | loan | 10 | 8 | ||||
Wtd. Avg. Pay Rate (as a percent) | 3.03% | 7.63% | ||||
Wtd. Avg. Remaining Months to Maturity | 62 months | 39 months 6 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 47% | 46% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 84% | 79% | ||||
Other loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 9,694 | $ 35,845 | ||||
Percent of Total | 1% | 1% | ||||
Loan Count | loan | 2 | 3 | ||||
Wtd. Avg. Pay Rate (as a percent) | 9.72% | 8.76% | ||||
Wtd. Avg. Remaining Months to Maturity | 15 months 18 days | 32 months 24 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | 0% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 62% | 58% | ||||
Other loans | Single-Family Rental | ||||||
Loans and Investments | ||||||
Unpaid principal balance, funded | $ 1,160,000 | $ 927,400 |
Loans and Investments - Narrati
Loans and Investments - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2023 USD ($) loan | Jul. 31, 2022 USD ($) loan | Sep. 30, 2023 USD ($) loan | Jun. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan borrower | Sep. 30, 2022 USD ($) loan | Dec. 31, 2022 USD ($) loan borrower | Dec. 31, 2021 USD ($) | |
Loans and Investments | ||||||||||
Number of loans | loan | 723 | 747 | ||||||||
Provision for credit losses | $ 15,015 | $ 965 | $ 51,510 | $ 9,055 | ||||||
Accrued interest receivable related to loans | $ 116,400 | $ 116,400 | $ 116,400 | $ 108,500 | ||||||
Number of loans for which no provision for loan loss made | loan | 0 | 0 | 0 | 0 | ||||||
Loans and investments, allowance for credit losses | $ 184,069 | $ 184,069 | $ 169,054 | $ 122,296 | $ 121,331 | $ 184,069 | 122,296 | $ 132,559 | $ 113,241 | |
Interest income recognized on nonaccrual loans | 2,800 | $ 0 | ||||||||
Multifamily bridge loan | $ 13,122,395 | $ 13,122,395 | 13,122,395 | 14,456,123 | ||||||
Interest reserve | $ 125,800 | 123,700 | ||||||||
Loan modification, refinancing, and extensions | loan | 0 | 0 | 0 | 0 | ||||||
Number of loans sold | loan | 4 | |||||||||
Bridge loans, total UPB | $ 293,055 | $ 157,960 | ||||||||
Number of loans covered under interest reserve | loan | 516 | 516 | 516 | 480 | ||||||
Aggregate UPB covered under interest reserve | $ 8,310,000 | $ 8,310,000 | $ 8,310,000 | $ 7,700,000 | ||||||
Bridge loans | ||||||||||
Loans and Investments | ||||||||||
Number of loans | loan | 664 | 692 | ||||||||
Multifamily bridge loan | $ 12,790,972 | $ 12,790,972 | $ 70,500 | $ 12,790,972 | $ 14,096,054 | |||||
Variable rate, spread | 3.40% | |||||||||
Financing receivable, fixed interest rate | 0.0300 | |||||||||
Financing receivable, accrual rate | 0.0300 | |||||||||
Financing receivable, total fixed rate | 0.0600 | |||||||||
Financing receivable, borrower required funding | $ 10,500 | |||||||||
Interest reserve | 2,500 | |||||||||
Financing receivable, borrower requirement, capital improvements | $ 8,000 | |||||||||
Number of loans sold | loan | 4 | |||||||||
Bridge loans, total UPB | $ 296,900 | $ 182,000 | $ 217,400 | |||||||
Capital released | $ 78,000 | |||||||||
Unrealized impairment loss | 2,000 | |||||||||
Number of loans repurchased | loan | 2,000,000 | |||||||||
Bridge Loan and Mezzanine Loan | ||||||||||
Loans and Investments | ||||||||||
Bridge loan and mezzanine loans sold | 110,500 | |||||||||
Loans, purchased with credit deterioration, discount | 102,200 | |||||||||
Capital released | 66,300 | |||||||||
Fees and expenses on mortgage loan | 9,200 | |||||||||
Recovery of additional potential loan | 2,800 | |||||||||
Six loans collateralized by a land development project | ||||||||||
Loans and Investments | ||||||||||
Number of loans with unpaid principal balance | loan | 6 | 6 | 6 | |||||||
Unpaid principal balance on loans | $ 121,400 | $ 121,400 | $ 121,400 | |||||||
Five loans collateralized by a land development project | ||||||||||
Loans and Investments | ||||||||||
Number of loans with unpaid principal balance | loan | 5 | 5 | 5 | |||||||
Unpaid principal balance on loans | $ 112,100 | $ 112,100 | $ 112,100 | |||||||
Weighted average accrual rate of interest (as a percent) | 7.91% | |||||||||
Loans collateralized by a land development project | ||||||||||
Loans and Investments | ||||||||||
Loans and investments, allowance for credit losses | 71,400 | 71,400 | $ 71,400 | $ 71,400 | ||||||
Non-performing loans | ||||||||||
Loans and Investments | ||||||||||
Number of loans | loan | 12 | 4 | ||||||||
Carrying value of loans | 137,900 | 137,900 | $ 137,900 | $ 2,600 | ||||||
Loan loss reserves | 12,600 | 12,600 | 12,600 | 5,100 | ||||||
Bridge loans, total UPB | 157,862 | 7,750 | ||||||||
Non-performing loans | Greater Than 90 Days Past Due | ||||||||||
Loans and Investments | ||||||||||
Interest receivable | 0 | 0 | 0 | 0 | ||||||
Multifamily bridge loan | 35,015 | 35,015 | 35,015 | 7,750 | ||||||
Land | ||||||||||
Loans and Investments | ||||||||||
Provision for credit losses | 60 | $ (8) | (106) | $ (60) | ||||||
Outstanding unfunded commitments | 1,080,000 | 1,080,000 | 1,080,000 | 1,150,000 | ||||||
Loans and investments, allowance for credit losses | 77,962 | 77,962 | $ 77,902 | $ 77,910 | $ 77,918 | 77,962 | $ 77,910 | 78,068 | $ 77,970 | |
Bridge loans, total UPB | 134,215 | $ 134,215 | ||||||||
Credit risk concentration | ||||||||||
Loans and Investments | ||||||||||
Multifamily bridge loan | 13,122,395 | 13,122,395 | 13,122,395 | |||||||
Credit risk concentration | Land | ||||||||||
Loans and Investments | ||||||||||
Multifamily bridge loan | $ 136,028 | $ 136,028 | $ 136,028 | |||||||
Total Assets | Credit risk concentration | ||||||||||
Loans and Investments | ||||||||||
Number of loans | loan | 92 | 38 | ||||||||
Number of different borrowers | borrower | 5 | 5 | ||||||||
Total Assets | Credit risk concentration | Five Borrowers | ||||||||||
Loans and Investments | ||||||||||
Concentration risk, percentage | 12% | 11% | ||||||||
Loans and investments portfolio | Credit risk concentration | Texas | ||||||||||
Loans and Investments | ||||||||||
Concentration risk, percentage | 24% | 22% | ||||||||
Loans and investments portfolio | Credit risk concentration | Florida | ||||||||||
Loans and Investments | ||||||||||
Concentration risk, percentage | 16% | 14% |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans and Investments | ||
Loans and investments, gross | $ 13,122,395 | $ 14,456,123 |
Percentage of Portfolio | 100% | 100% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | 1% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77% | 76% |
Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | $ 955,334 | |
Origination Year 2022 | 5,120,395 | |
Origination year 2021 | 6,002,364 | |
Origination Year 2020 | 481,079 | |
Origination Year 2019 | 287,831 | |
Origination Year Prior | 275,392 | |
Loans and investments, gross | $ 13,122,395 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77% | |
Multifamily | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | $ 771,150 | |
Origination Year 2022 | 4,631,080 | |
Origination year 2021 | 5,634,336 | |
Origination Year 2020 | 326,719 | |
Origination Year 2019 | 262,866 | |
Origination Year Prior | 78,694 | |
Loans and investments, gross | $ 11,704,845 | |
Percentage of Portfolio | 89% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78% | |
Multifamily | Pass | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | $ 97,186 | |
Origination Year 2022 | 131,266 | |
Origination year 2021 | 97,269 | |
Origination Year 2020 | 2,010 | |
Origination Year Prior | 20,300 | |
Loans and investments, gross | 348,031 | |
Multifamily | Pass/Watch | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | 673,165 | |
Origination Year 2022 | 2,378,519 | |
Origination year 2021 | 3,015,502 | |
Origination Year 2020 | 81,560 | |
Origination Year 2019 | 112,416 | |
Origination Year Prior | 58,394 | |
Loans and investments, gross | 6,319,556 | |
Multifamily | Special Mention | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | 799 | |
Origination Year 2022 | 1,830,803 | |
Origination year 2021 | 2,353,938 | |
Origination Year 2020 | 219,050 | |
Origination Year 2019 | 140,685 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 4,545,275 | |
Multifamily | Substandard | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2022 | 290,492 | |
Origination year 2021 | 153,697 | |
Origination Year 2020 | 24,099 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 468,288 | |
Multifamily | Doubtful | Credit risk concentration | ||
Loans and Investments | ||
Origination year 2021 | 13,930 | |
Origination Year 2019 | 9,765 | |
Loans and investments, gross | 23,695 | |
Single-Family Rental | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | 184,184 | |
Origination Year 2022 | 489,315 | |
Origination year 2021 | 368,028 | |
Origination Year 2020 | 110,850 | |
Origination Year 2019 | 20,965 | |
Loans and investments, gross | $ 1,173,342 | |
Percentage of Portfolio | 9% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 63% | |
Single-Family Rental | Pass | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | $ 22,208 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Loans and investments, gross | 22,208 | |
Single-Family Rental | Pass/Watch | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2023 | 161,976 | |
Origination Year 2022 | 466,391 | |
Origination year 2021 | 355,176 | |
Origination Year 2020 | 86,347 | |
Origination Year 2019 | 20,965 | |
Loans and investments, gross | 1,090,855 | |
Single-Family Rental | Special Mention | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2022 | 22,924 | |
Origination year 2021 | 12,852 | |
Origination Year 2020 | 24,503 | |
Loans and investments, gross | 60,279 | |
Land | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | 8,100 | |
Origination Year Prior | 127,928 | |
Loans and investments, gross | $ 136,028 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 98% | |
Land | Pass/Watch | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | $ 4,600 | |
Loans and investments, gross | 4,600 | |
Land | Special Mention | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | 3,500 | |
Loans and investments, gross | 3,500 | |
Land | Substandard | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | 127,928 | |
Loans and investments, gross | 127,928 | |
Office | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | 35,410 | |
Origination Year Prior | 45,025 | |
Loans and investments, gross | $ 80,435 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 90% | |
Office | Special Mention | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | $ 35,410 | |
Loans and investments, gross | 35,410 | |
Office | Substandard | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | 45,025 | |
Loans and investments, gross | 45,025 | |
Retail | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2019 | 4,000 | |
Origination Year Prior | 22,045 | |
Loans and investments, gross | $ 26,045 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 11% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 71% | |
Retail | Pass/Watch | Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2019 | $ 4,000 | |
Loans and investments, gross | 4,000 | |
Retail | Special Mention | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | 3,445 | |
Loans and investments, gross | 3,445 | |
Retail | Substandard | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | 18,600 | |
Loans and investments, gross | $ 18,600 | |
Other | ||
Loans and Investments | ||
Percentage of Portfolio | 1% | |
Other | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | $ 1,700 | |
Loans and investments, gross | $ 1,700 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 63% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 63% | |
Other | Doubtful | Credit risk concentration | ||
Loans and Investments | ||
Origination Year Prior | $ 1,700 | |
Loans and investments, gross | $ 1,700 |
Loans and Investments - Allowan
Loans and Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | $ 169,054 | $ 121,331 | $ 132,559 | $ 113,241 |
Provision for credit losses (net of recoveries) | 15,015 | 965 | 51,510 | 9,055 |
Allowance for credit losses, ending balance | 184,069 | 122,296 | 184,069 | 122,296 |
Multifamily | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 74,295 | 27,958 | 37,961 | 18,707 |
Provision for credit losses (net of recoveries) | 14,884 | (675) | 51,218 | 8,576 |
Allowance for credit losses, ending balance | 89,179 | 27,283 | 89,179 | 27,283 |
Land | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 77,902 | 77,918 | 78,068 | 77,970 |
Provision for credit losses (net of recoveries) | 60 | (8) | (106) | (60) |
Allowance for credit losses, ending balance | 77,962 | 77,910 | 77,962 | 77,910 |
Office | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 8,246 | 7,031 | 8,162 | 8,073 |
Provision for credit losses (net of recoveries) | (76) | 306 | 8 | (736) |
Allowance for credit losses, ending balance | 8,170 | 7,337 | 8,170 | 7,337 |
Retail | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 5,819 | 5,819 | 5,819 | 5,819 |
Allowance for credit losses, ending balance | 5,819 | 5,819 | 5,819 | 5,819 |
Commercial | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 1,700 | 1,700 | 1,700 | 1,700 |
Allowance for credit losses, ending balance | 1,700 | 1,700 | 1,700 | 1,700 |
Single-Family Rental | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 1,077 | 725 | 781 | 320 |
Provision for credit losses (net of recoveries) | 162 | 1,326 | 458 | 1,731 |
Allowance for credit losses, ending balance | 1,239 | 2,051 | 1,239 | 2,051 |
Other | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 15 | 180 | 68 | 652 |
Provision for credit losses (net of recoveries) | (15) | 16 | (68) | (456) |
Allowance for credit losses, ending balance | $ 0 | $ 196 | $ 0 | $ 196 |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Loans and Investments | ||
UPB | $ 293,055 | $ 157,960 |
Carrying Value | 280,258 | 147,131 |
Allowance for Credit Losses | $ 111,087 | $ 85,386 |
Wtd. Avg. First Dollar LTV Ratio | 0.01 | 0.03 |
Wtd. Avg. Last Dollar LTV Ratio | 0.97 | 0.96 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | loan | 13 | 7 |
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 | 0.99 | 0.99 |
Multifamily | ||
Loans and Investments | ||
UPB | $ 90,070 | |
Carrying Value | 87,995 | |
Allowance for Credit Losses | $ 17,750 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 1 | |
Office | ||
Loans and Investments | ||
UPB | $ 45,025 | |
Carrying Value | 45,025 | |
Allowance for Credit Losses | $ 7,951 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 0.99 | |
Retail | ||
Loans and Investments | ||
UPB | $ 22,045 | $ 22,045 |
Carrying Value | 17,670 | 17,563 |
Allowance for Credit Losses | $ 5,817 | $ 5,817 |
Wtd. Avg. First Dollar LTV Ratio | 0.13 | 0.14 |
Wtd. Avg. Last Dollar LTV Ratio | 0.78 | 0.79 |
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 | 0.63 | 0.63 |
Wtd. Avg. Last Dollar LTV Ratio | 0.63 | 0.63 |
Loans and Investments - Non-per
Loans and Investments - Non-performing loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Loans and Investments | ||
UPB | $ 293,055 | $ 157,960 |
Loans and investments, gross | 13,122,395 | 14,456,123 |
Non-performing loans | ||
Loans and Investments | ||
UPB | 157,862 | 7,750 |
Less Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 122,847 | 0 |
Greater Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 35,015 | 7,750 |
Multifamily | ||
Loans and Investments | ||
UPB | 90,070 | |
Multifamily | Non-performing loans | ||
Loans and Investments | ||
UPB | 152,717 | 2,605 |
Multifamily | Less Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 122,847 | 0 |
Multifamily | Greater Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 29,870 | 2,605 |
Retail | ||
Loans and Investments | ||
UPB | 22,045 | 22,045 |
Retail | Non-performing loans | ||
Loans and Investments | ||
UPB | 3,445 | 3,445 |
Retail | Less Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 0 | 0 |
Retail | Greater Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 3,445 | 3,445 |
Commercial | ||
Loans and Investments | ||
UPB | 1,700 | 1,700 |
Commercial | Non-performing loans | ||
Loans and Investments | ||
UPB | 1,700 | 1,700 |
Commercial | Less Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | 0 | 0 |
Commercial | Greater Than 90 Days Past Due | Non-performing loans | ||
Loans and Investments | ||
Loans and investments, gross | $ 1,700 | $ 1,700 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans Held-for-Sale, Net | ||
Loans held-for-sale | $ 368,330 | $ 368,066 |
Fair value of future MSR | 4,302 | 5,557 |
Unrealized impairment loss | (2,891) | (15,703) |
Unearned discount | (5,421) | (3,850) |
Loans held-for-sale, net | 364,320 | 354,070 |
Fannie Mae | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | 257,371 | 173,020 |
Freddie Mac | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale | 86,089 | 8,938 |
Private Label | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | 11,350 | 152,735 |
SFR - Fixed Rate | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale, net | 8,710 | 12,352 |
FHA | ||
Loans Held-for-Sale, Net | ||
Loans held-for-sale | $ 4,810 | $ 21,021 |
Loans Held-for-Sale, Net - Narr
Loans Held-for-Sale, Net - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Loans Held-for-Sale, Net | |||||||
Sale of loans held-for-sale excluding acquired loans | $ 1,280,000,000 | $ 1,080,000,000 | $ 3,620,000,000 | $ 3,700,000,000 | |||
Amount of securitizations | $ 43,400,000 | ||||||
Unrealized impairment loss | $ 4,100,000 | 2,891,000 | |||||
Loans held-for-sale placed on non-accrual status | 0 | 0 | 0 | ||||
Greater Than 90 Days Past Due | |||||||
Loans Held-for-Sale, Net | |||||||
Loans held-for-sale that were 90 days or more past due | $ 0 | $ 0 | 0 | ||||
US Government Sponsored-Enterprise Insured Loans | |||||||
Loans Held-for-Sale, Net | |||||||
Period of loans held for sale sold | 60 days | ||||||
Private Label | |||||||
Loans Held-for-Sale, Net | |||||||
Period of loans held for sale sold | 180 days | ||||||
Sale of loans held-for-sale excluding acquired loans | 489,300,000 | ||||||
Net loss of swaps gain with loans | $ 5,200,000 | ||||||
Number of loans under the loan portfolio | loan | 7 | ||||||
Unpaid principal balance | $ 129,900,000 | ||||||
Net loans carrying value | $ 116,400,000 | ||||||
Gain on sale of loans | $ 900,000 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights - Narrative (Details) - MSRs - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Capitalized Mortgage Servicing Rights | |||||
Prepayment fees collected | $ 1,000,000 | $ 11,200,000 | $ 6,100,000 | $ 42,600,000 | |
Valuation allowance | $ 0 | $ 0 | $ 0 | ||
Minimum | |||||
Capitalized Mortgage Servicing Rights | |||||
Discount rate, percentage | 8% | ||||
Maximum | |||||
Capitalized Mortgage Servicing Rights | |||||
Discount rate, percentage | 13% | ||||
Weighted average | |||||
Capitalized Mortgage Servicing Rights | |||||
Discount rate, percentage | 12% | ||||
Estimated life remaining | 8 years 3 months 18 days | 8 years 3 months 18 days | 8 years 7 months 6 days |
Capitalized Mortgage Servicin_4
Capitalized Mortgage Servicing Rights - Summary of Capitalized MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Capitalized Mortgage Servicing Rights | ||||
Beginning balance | $ 401,471 | |||
Ending balance | $ 392,203 | 392,203 | ||
MSRs | ||||
Capitalized Mortgage Servicing Rights | ||||
Beginning balance | 394,410 | $ 411,534 | 401,471 | $ 422,734 |
Additions | 16,550 | 18,907 | 49,416 | 63,002 |
Amortization | (15,900) | (14,782) | (46,920) | (44,532) |
Write-downs and payoffs | (2,857) | (11,773) | (11,764) | (37,318) |
Ending balance | 392,203 | 403,886 | 392,203 | 403,886 |
Expected amortization of capitalized MSRs balances | ||||
2023 (three months ending 12/31/2023) | 16,169 | 16,169 | ||
2024 | 63,855 | 63,855 | ||
2025 | 60,481 | 60,481 | ||
2026 | 54,479 | 54,479 | ||
2027 | 49,654 | 49,654 | ||
2028 | 43,110 | 43,110 | ||
Thereafter | 104,455 | 104,455 | ||
Total | 392,203 | 392,203 | ||
Originated | ||||
Capitalized Mortgage Servicing Rights | ||||
Beginning balance | 383,267 | 391,397 | 386,878 | 395,573 |
Additions | 16,550 | 18,907 | 49,416 | 63,002 |
Amortization | (14,988) | (13,355) | (43,866) | (39,348) |
Write-downs and payoffs | (2,400) | (9,957) | (9,999) | (32,235) |
Ending balance | 382,429 | 386,992 | 382,429 | 386,992 |
Acquired | ||||
Capitalized Mortgage Servicing Rights | ||||
Beginning balance | 11,143 | 20,137 | 14,593 | 27,161 |
Amortization | (912) | (1,427) | (3,054) | (5,184) |
Write-downs and payoffs | (457) | (1,816) | (1,765) | (5,083) |
Ending balance | $ 9,774 | $ 16,894 | $ 9,774 | $ 16,894 |
Mortgage Servicing - Schedule o
Mortgage Servicing - Schedule of Product and Geographic Concentration (Details) - MSRs $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) state | Dec. 31, 2022 USD ($) state | |
Mortgage Servicing | ||
Product Concentrations, UPB | $ 29,936,707 | $ 27,998,029 |
Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 100% | 100% |
Texas | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 11% | 11% |
New York | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 11% | 11% |
North Carolina | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 8% | 8% |
California | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 8% | 8% |
Georgia | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 6% | 6% |
Florida | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 6% | 5% |
New Jersey | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 5% | 5% |
Illinois | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 4% | 4% |
Other | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 41% | 42% |
Number of states | state | 0 | 0 |
Fannie Mae | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 20,463,620 | $ 19,038,124 |
Fannie Mae | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 68% | 68% |
Freddie Mac | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 5,184,888 | $ 5,153,207 |
Freddie Mac | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 17% | 18% |
Private Label | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 2,371,475 | $ 2,074,859 |
Private Label | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 8% | 8% |
FHA | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 1,322,832 | $ 1,155,893 |
FHA | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 5% | 4% |
Bridge | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 305,950 | $ 301,182 |
Bridge | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 1% | 1% |
SFR - Fixed Rate | ||
Mortgage Servicing | ||
Product Concentrations, UPB | $ 287,942 | $ 274,764 |
SFR - Fixed Rate | Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Product Concentrations, % of Total | 1% | 1% |
Mortgage Servicing - Narrative
Mortgage Servicing - Narrative (Details) - USD ($) $ in Billions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Mortgage Servicing | ||
Escrow balance | $ 1.6 | $ 1.5 |
Fee-based servicing portfolio | ||
Mortgage Servicing | ||
Escrow balance | $ 1.7 | $ 1.7 |
MSRs | Agency Business | ||
Mortgage Servicing | ||
Weighted average servicing fee rate (basis points) | 0.397% | 0.411% |
Mortgage Servicing - Components
Mortgage Servicing - Components of Servicing Revenue, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | ||||
Servicing fees | $ 32,191 | $ 30,631 | $ 92,479 | $ 93,702 |
Interest earned on escrows | 20,985 | 7,450 | 57,501 | 10,073 |
Prepayment fees | 1,044 | 11,218 | 6,080 | 42,588 |
Write-offs of MSRs | (2,857) | (11,773) | (11,764) | (37,318) |
Amortization of MSRs | (15,900) | (14,782) | (46,920) | (44,532) |
Servicing revenue, net | $ 35,463 | $ 22,744 | $ 97,376 | $ 64,513 |
Securities Held-To-Maturity - N
Securities Held-To-Maturity - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) bond | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Held-to-maturity securities, face value | $ 231,577 | $ 231,577 | $ 234,255 | ||
Interest income, including the amortization of discount | 3,600 | $ 3,700 | 10,700 | $ 13,900 | |
APL certificates | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Held-to-maturity securities, face value | 192,791 | 192,791 | $ 192,791 | ||
Amount purchased at a discount | $ 119,000 | $ 119,000 | |||
Weighted average variable interest rate (as a percent) | 3.94% | 3.94% | |||
Estimated weighted average remaining maturity period | 6 years 9 months 18 days | ||||
Weighted average fixed interest rate | 8.85% | 8.85% | |||
After one year through five years | $ 18,200 | $ 18,200 | |||
After five years through ten years | $ 174,600 | $ 174,600 | |||
APL certificates | Minimum | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Securities maturity term | 5 years | ||||
APL certificates | Maximum | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Securities maturity term | 10 years | ||||
Seven B Piece Bonds | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Estimated weighted average remaining maturity period | 5 years 10 months 24 days | ||||
Bonds retained percentage | 49% | ||||
Initial face value of bonds purchased | $ 106,200 | ||||
Number of B Piece bonds | bond | 7 | ||||
Discounted value of bonds purchased | $ 74,700 | ||||
Held-to-maturity securities sold, percentage | 51% | 51% | |||
Agency B Piece Bonds | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Weighted average variable interest rate (as a percent) | 3.74% | 3.74% | 12.20% | ||
After one year through five years | $ 14,800 | $ 14,800 | |||
Weighted average effective interest rate (as a percent) | 11.19% | 11.19% | |||
Within one year | $ 7,500 | $ 7,500 | |||
After ten years | $ 16,500 | $ 16,500 |
Securities Held-To-Maturity - S
Securities Held-To-Maturity - Summary of Securities Held-To-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Securities Held-to-Maturity | |||
Face Value | $ 231,577 | $ 234,255 | |
Net Carrying Value | 155,172 | 156,547 | |
Unrealized Loss | (28,564) | (11,976) | |
Estimated Fair Value | 126,608 | 144,571 | |
Allowance for Credit Losses | 5,943 | $ 4,534 | 3,153 |
APL certificates | |||
Securities Held-to-Maturity | |||
Face Value | 192,791 | 192,791 | |
Net Carrying Value | 127,547 | 123,475 | |
Unrealized Loss | (33,337) | (13,348) | |
Estimated Fair Value | 94,210 | 110,127 | |
Allowance for Credit Losses | 2,340 | 3,375 | 2,783 |
B Piece bonds | |||
Securities Held-to-Maturity | |||
Face Value | 38,786 | 41,464 | |
Net Carrying Value | 27,625 | 33,072 | |
Unrealized Gain | 4,773 | 1,372 | |
Estimated Fair Value | 32,398 | 34,444 | |
Allowance for Credit Losses | $ 3,603 | $ 1,159 | $ 370 |
Securities Held-To-Maturity - R
Securities Held-To-Maturity - Rollforward of Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | $ 4,534 | $ 3,153 |
Provision for credit loss expense/(reversal) | 1,409 | 2,790 |
Allowance for credit loss, Ending balance | 5,943 | 5,943 |
APL certificates | ||
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | 3,375 | 2,783 |
Provision for credit loss expense/(reversal) | (1,035) | (443) |
Allowance for credit loss, Ending balance | 2,340 | 2,340 |
B Piece bonds | ||
Changes in the allowance for credit losses | ||
Allowance for credit loss, Beginning balance | 1,159 | 370 |
Provision for credit loss expense/(reversal) | 2,444 | 3,233 |
Allowance for credit loss, Ending balance | $ 3,603 | $ 3,603 |
Investments in Equity Affilia_3
Investments in Equity Affiliates - Summary of Equity Method Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 62,795 | $ 79,130 |
UPB of Loans to Equity Affiliates | 1,688 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 33,447 | 46,951 |
Fifth Wall Ventures | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 13,422 | 13,584 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 13,156 | 15,825 |
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 | 450 |
JT Prime | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 425 | $ 425 |
West Shore Café | ||
Investment in Equity Affiliates | ||
UPB of Loans to Equity Affiliates | $ 1,688 |
Investments in Equity Affilia_4
Investments in Equity Affiliates - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Investment in Equity Affiliates | |||||
Income (loss) from equity affiliates | $ 809 | $ 4,748 | $ 20,694 | $ 18,507 | |
Indirect ownership percentage | 9.20% | ||||
Arbor Residential Investor LLC | |||||
Investment in Equity Affiliates | |||||
Income (loss) from equity affiliates | (1,300) | 300 | $ 1,300 | 6,400 | |
Indirect ownership percentage | 12.30% | ||||
Arbor Residential Investor LLC | Other Related Party Transactions | |||||
Investment in Equity Affiliates | |||||
Distribution from investment classified as return capital | 7,500 | 7,300 | $ 15,000 | 22,300 | |
Fifth Wall Ventures | |||||
Investment in Equity Affiliates | |||||
Distribution from investment classified as return capital | 700 | 1,600 | |||
Noncontrolling interest | 800 | 8,700 | |||
Loss on investment | 800 | 1,000 | |||
AMAC Holdings III LLC | |||||
Investment in Equity Affiliates | |||||
Noncontrolling interest | $ 4,900 | ||||
Loss on investment | 700 | 700 | 1,600 | 1,800 | |
Distribution received | 200 | 1,100 | 400 | ||
Lexford Portfolio | |||||
Investment in Equity Affiliates | |||||
Distribution received | 5,000 | 7,200 | $ 11,000 | ||
Equity Participation Interest | |||||
Investment in Equity Affiliates | |||||
Proceeds from sale | $ 3,500 | $ 2,600 | $ 14,500 |
Debt Obligations - Credit and R
Debt Obligations - Credit and Repurchase Facilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||||||||
Jun. 30, 2024 | Dec. 31, 2023 | Aug. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Mar. 01, 2024 | Jul. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Obligations | |||||||||||
Debt Carrying Value | $ 3,391,441 | $ 3,841,814 | |||||||||
Collateral Carrying Value | $ 4,731,093 | 5,185,293 | |||||||||
Wtd. Avg. Note Rate | 7.59% | ||||||||||
Outstanding principal balance repaid | $ 44,400 | ||||||||||
Repurchase Facility | |||||||||||
Debt Obligations | |||||||||||
Line of credit facility, committed amount | 514,500 | ||||||||||
Repurchase facility - securities | B Piece bonds | |||||||||||
Debt Obligations | |||||||||||
Collateral Carrying Value | 33,100 | ||||||||||
Structured Business | |||||||||||
Debt Obligations | |||||||||||
Debt Carrying Value | 3,036,855 | 3,536,371 | |||||||||
Collateral Carrying Value | $ 4,370,593 | 4,845,753 | |||||||||
Wtd. Avg. Note Rate | 7.70% | ||||||||||
Deferred financing fees | $ 6,600 | $ 13,300 | |||||||||
Weighted average note rate including certain fees and costs, percentage | 8.14% | 6.95% | |||||||||
Leverage on loans and investment portfolio financed through credit and repurchase facilities, excluding securities repurchase facility and working capital facility | 69% | 73% | |||||||||
Structured Business | Forecast | Minimum | |||||||||||
Debt Obligations | |||||||||||
Weighted average loan spread | 0.0240 | ||||||||||
Structured Business | $2.5B joint repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 2,500,000 | ||||||||||
Debt Carrying Value | 923,599 | $ 1,516,657 | |||||||||
Collateral Carrying Value | $ 1,438,971 | 2,099,447 | |||||||||
Wtd. Avg. Note Rate | 7.72% | ||||||||||
Structured Business | $1B repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 1,000,000 | $ 1,000,000 | |||||||||
Debt Carrying Value | 418,206 | 498,666 | |||||||||
Collateral Carrying Value | $ 621,759 | 703,740 | |||||||||
Wtd. Avg. Note Rate | 7.58% | ||||||||||
Structured Business | $1B repurchase facility | SOFR | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 2.50% | ||||||||||
Structured Business | $1B repurchase facility | SOFR | Forecast | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 2.50% | 2.25% | |||||||||
Structured Business | $500M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 500,000 | ||||||||||
Debt Carrying Value | 374,072 | 154,653 | |||||||||
Collateral Carrying Value | $ 505,139 | 188,563 | |||||||||
Wtd. Avg. Note Rate | 8.34% | ||||||||||
Expiration period after the lender provides written notice | 6 months | ||||||||||
Additional period to repurchase the underlying loans | 6 months | ||||||||||
Structured Business | $499M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 499,000 | ||||||||||
Debt Carrying Value | 343,726 | 351,056 | |||||||||
Collateral Carrying Value | $ 491,190 | 504,506 | |||||||||
Wtd. Avg. Note Rate | 7.67% | ||||||||||
Structured Business | $450M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 450,000 | $ 450,000 | |||||||||
Debt Carrying Value | 328,650 | 344,237 | |||||||||
Collateral Carrying Value | $ 452,318 | 450,736 | |||||||||
Wtd. Avg. Note Rate | 7.50% | ||||||||||
Structured Business | $450M repurchase facility | SOFR | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 2% | ||||||||||
Structured Business | $450M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 450,000 | ||||||||||
Debt Carrying Value | 93,410 | 186,639 | |||||||||
Collateral Carrying Value | $ 120,947 | 239,678 | |||||||||
Wtd. Avg. Note Rate | 7.01% | ||||||||||
Structured Business | $250M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 250,000 | $ 250,000 | |||||||||
Debt Carrying Value | 18,438 | 33,221 | |||||||||
Collateral Carrying Value | $ 23,088 | 43,238 | |||||||||
Wtd. Avg. Note Rate | 7.28% | ||||||||||
Structured Business | $250M credit facility | Multifamily | SOFR | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 2.50% | ||||||||||
Structured Business | $250M credit facility | Non-Multifamily Loans | SOFR | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 3.20% | ||||||||||
Structured Business | $250M credit facility | Non-Multifamily Loans | SOFR | Minimum | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 2.95% | ||||||||||
Structured Business | $225M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 225,000 | ||||||||||
Debt Carrying Value | 94,913 | 47,398 | |||||||||
Collateral Carrying Value | $ 148,041 | 81,119 | |||||||||
Wtd. Avg. Note Rate | 7.97% | ||||||||||
Structured Business | $200M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||||
Debt Carrying Value | 73,751 | 32,494 | |||||||||
Collateral Carrying Value | $ 105,076 | 47,750 | |||||||||
Wtd. Avg. Note Rate | 7.97% | ||||||||||
Structured Business | $200M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||||
Debt Carrying Value | 115,748 | 154,516 | |||||||||
Collateral Carrying Value | $ 151,890 | 200,099 | |||||||||
Wtd. Avg. Note Rate | 7.36% | ||||||||||
Structured Business | $174M loan specific credit facilities | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 174,000 | ||||||||||
Debt Carrying Value | 173,862 | 156,107 | |||||||||
Collateral Carrying Value | $ 251,049 | 225,805 | |||||||||
Wtd. Avg. Note Rate | 7.45% | ||||||||||
Structured Business | $50M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 50,000 | ||||||||||
Debt Carrying Value | 29,200 | 29,194 | |||||||||
Collateral Carrying Value | $ 36,500 | 36,500 | |||||||||
Wtd. Avg. Note Rate | 7.51% | ||||||||||
Structured Business | $40M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 40,000 | $ 40,000 | |||||||||
Debt Carrying Value | 0 | 0 | |||||||||
Collateral Carrying Value | $ 0 | 0 | |||||||||
Wtd. Avg. Note Rate | 0% | ||||||||||
Structured Business | $35M working capital facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 35,000 | ||||||||||
Debt Carrying Value | 0 | 0 | |||||||||
Collateral Carrying Value | $ 0 | 0 | |||||||||
Wtd. Avg. Note Rate | 0% | ||||||||||
Structured Business | $25M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 25,000 | ||||||||||
Debt Carrying Value | 18,248 | 18,701 | |||||||||
Collateral Carrying Value | $ 24,625 | 24,572 | |||||||||
Wtd. Avg. Note Rate | 8.02% | ||||||||||
Total committed amount | $ 25,000 | ||||||||||
Structured Business | Repurchase facility - securities | |||||||||||
Debt Obligations | |||||||||||
Debt Carrying Value | $ 31,032 | 12,832 | |||||||||
Collateral Carrying Value | $ 0 | 0 | |||||||||
Wtd. Avg. Note Rate | 7.11% | ||||||||||
Structured Business | $400M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 400,000 | ||||||||||
Structured and Agency Business | $3 Billion joint repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 3,000,000 | ||||||||||
Structured and Agency Business | $2 Billion Joint Repurchase Facility | Forecast | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 2,000,000 | ||||||||||
Agency Business | |||||||||||
Debt Obligations | |||||||||||
Debt Carrying Value | $ 354,586 | 305,443 | |||||||||
Collateral Carrying Value | $ 360,500 | 339,540 | |||||||||
Wtd. Avg. Note Rate | 6.69% | ||||||||||
Deferred financing fees | $ 500 | 900 | |||||||||
Agency Business | $500M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | 500,000 | ||||||||||
Debt Carrying Value | 144,818 | 66,778 | |||||||||
Collateral Carrying Value | $ 145,618 | 66,866 | |||||||||
Wtd. Avg. Note Rate | 6.69% | ||||||||||
Agency Business | $200M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||||
Debt Carrying Value | 143,654 | 31,475 | |||||||||
Collateral Carrying Value | $ 144,168 | 33,177 | |||||||||
Wtd. Avg. Note Rate | 6.71% | ||||||||||
Total committed amount | $ 200,000 | ||||||||||
Agency Business | $200M repurchase facility | SOFR | |||||||||||
Debt Obligations | |||||||||||
Variable rate, spread | 1.40% | ||||||||||
Agency Business | $50M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 50,000 | ||||||||||
Debt Carrying Value | 3,264 | 14,664 | |||||||||
Collateral Carrying Value | $ 3,264 | 14,671 | |||||||||
Wtd. Avg. Note Rate | 6.66% | ||||||||||
Agency Business | $750M ASAP agreement | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 750,000 | ||||||||||
Debt Carrying Value | 54,618 | 29,476 | |||||||||
Collateral Carrying Value | $ 55,220 | 30,291 | |||||||||
Wtd. Avg. Note Rate | 6.46% | ||||||||||
Agency Business | $500M joint repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 500,000 | ||||||||||
Debt Carrying Value | 7,701 | 104,629 | |||||||||
Collateral Carrying Value | $ 11,350 | 135,641 | |||||||||
Wtd. Avg. Note Rate | 7.74% | ||||||||||
Agency Business | $100M credit facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 100,000 | ||||||||||
Debt Carrying Value | 0 | 57,887 | |||||||||
Collateral Carrying Value | $ 0 | 57,974 | |||||||||
Wtd. Avg. Note Rate | 0% | ||||||||||
Agency Business | $1M repurchase facility | |||||||||||
Debt Obligations | |||||||||||
Maximum borrowing capacity | $ 1,000 | ||||||||||
Debt Carrying Value | 531 | 534 | |||||||||
Collateral Carrying Value | $ 880 | $ 920 | |||||||||
Wtd. Avg. Note Rate | 7.67% |
Debt Obligations - Collateraliz
Debt Obligations - Collateralized Loan Obligations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) loan | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Obligations | |||||||
Debt, Carrying Value | $ 7,004,634 | $ 7,004,634 | $ 7,849,270 | ||||
Debt, Wtd. Avg. Rate | 7.59% | 7.59% | |||||
Payoffs and paydowns of collateralized loan obligations | $ 856,864 | $ 441,000 | |||||
Loss on extinguishment of debt | $ 314 | $ 3,262 | 1,561 | $ 4,612 | |||
Collateralized loan obligations | |||||||
Debt Obligations | |||||||
Debt, Face Value | 6,807,136 | 6,807,136 | 7,649,188 | ||||
Debt, Carrying Value | $ 6,784,544 | $ 6,784,544 | $ 7,615,364 | ||||
Debt, Wtd. Avg. Rate | 7.08% | 7.08% | 6.10% | ||||
Collateral, Loans, UPB | $ 7,695,762 | $ 7,695,762 | $ 8,619,210 | ||||
Collateral, Loans, Carrying Value | 7,673,865 | 7,673,865 | 8,586,139 | ||||
Collateral, Cash, Restricted Cash | 299,784 | 299,784 | 480,817 | ||||
Deferred financing fees | $ 24,600 | $ 24,600 | 36,800 | ||||
Number of loans under the loan portfolio | loan | 4 | 4 | |||||
Collateral at risk | $ 89,800 | $ 89,800 | 0 | ||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | 108,500 | 230,000 | |||||
Loss on extinguishment of debt | $ 1,400 | ||||||
CLO 19 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 872,812 | 872,812 | 872,812 | ||||
Debt, Carrying Value | $ 867,904 | $ 867,904 | $ 866,605 | ||||
Debt, Wtd. Avg. Rate | 7.77% | 7.77% | 6.75% | ||||
Collateral, Loans, UPB | $ 1,014,554 | $ 1,014,554 | $ 952,268 | ||||
Collateral, Loans, Carrying Value | 1,010,753 | 1,010,753 | 947,336 | ||||
Collateral, Cash, Restricted Cash | 4,527 | 4,527 | 64,300 | ||||
CLO 18 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 1,652,812 | 1,652,812 | 1,652,812 | ||||
Debt, Carrying Value | $ 1,647,326 | $ 1,647,326 | $ 1,645,711 | ||||
Debt, Wtd. Avg. Rate | 7.22% | 7.22% | 6.19% | ||||
Collateral, Loans, UPB | $ 1,908,793 | $ 1,908,793 | $ 1,899,174 | ||||
Collateral, Loans, Carrying Value | 1,903,837 | 1,903,837 | 1,891,215 | ||||
Collateral, Cash, Restricted Cash | 20,983 | 20,983 | 85,970 | ||||
CLO 17 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 1,714,125 | 1,714,125 | 1,714,125 | ||||
Debt, Carrying Value | $ 1,709,255 | $ 1,709,255 | $ 1,707,676 | ||||
Debt, Wtd. Avg. Rate | 7.10% | 7.10% | 6.16% | ||||
Collateral, Loans, UPB | $ 1,901,897 | $ 1,901,897 | $ 1,911,866 | ||||
Collateral, Loans, Carrying Value | 1,896,347 | 1,896,347 | 1,904,732 | ||||
Collateral, Cash, Restricted Cash | 149,206 | 149,206 | 145,726 | ||||
CLO 16 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 1,237,500 | 1,237,500 | 1,237,500 | ||||
Debt, Carrying Value | $ 1,233,286 | $ 1,233,286 | $ 1,231,887 | ||||
Debt, Wtd. Avg. Rate | 6.73% | 6.73% | 5.79% | ||||
Collateral, Loans, UPB | $ 1,343,886 | $ 1,343,886 | $ 1,307,244 | ||||
Collateral, Loans, Carrying Value | 1,340,303 | 1,340,303 | 1,301,794 | ||||
Collateral, Cash, Restricted Cash | 91,434 | 91,434 | 106,495 | ||||
CLO 15 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 674,412 | 674,412 | 674,412 | ||||
Debt, Carrying Value | $ 672,897 | $ 672,897 | $ 671,532 | ||||
Debt, Wtd. Avg. Rate | 6.78% | 6.78% | 5.84% | ||||
Collateral, Loans, UPB | $ 770,602 | $ 770,602 | $ 797,755 | ||||
Collateral, Loans, Carrying Value | 768,436 | 768,436 | 795,078 | ||||
Collateral, Cash, Restricted Cash | 19,714 | 19,714 | 2,861 | ||||
CLO 14 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 655,475 | 655,475 | 655,475 | ||||
Debt, Carrying Value | $ 653,876 | $ 653,876 | $ 652,617 | ||||
Debt, Wtd. Avg. Rate | 6.74% | 6.74% | 5.80% | ||||
Collateral, Loans, UPB | $ 756,030 | $ 756,030 | $ 732,247 | ||||
Collateral, Loans, Carrying Value | 754,189 | 754,189 | 730,057 | ||||
Collateral, Cash, Restricted Cash | 13,920 | 13,920 | 37,090 | ||||
CLO 13 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 462,769 | ||||||
Debt, Carrying Value | $ 461,005 | ||||||
Debt, Wtd. Avg. Rate | 6.03% | ||||||
Collateral, Loans, UPB | $ 552,182 | ||||||
Collateral, Loans, Carrying Value | 550,924 | ||||||
Collateral, Cash, Restricted Cash | 37,875 | ||||||
Payoffs and paydowns of collateralized loan obligations | $ 1,200 | ||||||
CLO 12 | |||||||
Debt Obligations | |||||||
Debt, Face Value | 379,283 | ||||||
Debt, Carrying Value | $ 378,331 | ||||||
Debt, Wtd. Avg. Rate | 6.09% | ||||||
Collateral, Loans, UPB | $ 466,474 | ||||||
Collateral, Loans, Carrying Value | 465,003 | ||||||
Collateral, Cash, Restricted Cash | 500 | ||||||
Payoffs and paydowns of collateralized loan obligations | 300 | ||||||
Q Series securitization | |||||||
Debt Obligations | |||||||
Debt, Face Value | 222,066 | 222,066 | 236,878 | ||||
Debt, Carrying Value | $ 220,090 | $ 220,090 | $ 233,906 | ||||
Debt, Wtd. Avg. Rate | 7.31% | 7.31% | 6.30% | ||||
Collateral, Loans, UPB | $ 296,088 | $ 296,088 | $ 315,837 | ||||
Collateral, Loans, Carrying Value | 294,876 | 294,876 | 313,965 | ||||
Collateral, Cash, Restricted Cash | 0 | 0 | 0 | ||||
Total securitized debt | |||||||
Debt Obligations | |||||||
Debt, Face Value | 7,029,202 | 7,029,202 | 7,886,066 | ||||
Debt, Carrying Value | $ 7,004,634 | $ 7,004,634 | $ 7,849,270 | ||||
Debt, Wtd. Avg. Rate | 7.09% | 7.09% | 6.11% | ||||
Collateral, Loans, UPB | $ 7,991,850 | $ 7,991,850 | $ 8,935,047 | ||||
Collateral, Loans, Carrying Value | 7,968,741 | 7,968,741 | 8,900,104 | ||||
Collateral, Cash, Restricted Cash | $ 299,784 | $ 299,784 | $ 480,817 | ||||
Weighted average note rate including certain fees and costs, percentage | 7.34% | 7.34% | 6.32% |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2023 | May 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Debt Obligations | |||||
Wtd. Avg. Note Rate | 7.59% | ||||
Redemption of aggregate principal amount, percentage | 100% | ||||
7.75% Notes | |||||
Debt Obligations | |||||
Interest rate | 7.75% | ||||
Debt, Face Value | $ 95,000 | $ 0 | |||
Carrying value | $ 93,552 | $ 0 | |||
Wtd. Avg. Note Rate | 7.75% | 0% | |||
8.50% Notes | |||||
Debt Obligations | |||||
Interest rate | 8.50% | ||||
Debt, Face Value | $ 150,000 | $ 150,000 | |||
Carrying value | $ 147,904 | $ 147,519 | |||
Wtd. Avg. Note Rate | 8.50% | 8.50% | |||
5.00% Notes | |||||
Debt Obligations | |||||
Interest rate | 5% | ||||
Debt, Face Value | $ 180,000 | $ 180,000 | |||
Carrying value | $ 177,769 | $ 177,450 | |||
Wtd. Avg. Note Rate | 5% | 5% | |||
4.50% Notes | |||||
Debt Obligations | |||||
Interest rate | 4.50% | ||||
Debt, Face Value | $ 270,000 | $ 270,000 | |||
Carrying value | $ 267,555 | $ 266,926 | |||
Wtd. Avg. Note Rate | 4.50% | 4.50% | |||
5.00% Notes | |||||
Debt Obligations | |||||
Interest rate | 5% | ||||
Debt, Face Value | $ 175,000 | $ 175,000 | |||
Carrying value | $ 173,386 | $ 172,917 | |||
Wtd. Avg. Note Rate | 5% | 5% | |||
4.50% Notes | |||||
Debt Obligations | |||||
Interest rate | 4.50% | ||||
Debt, Face Value | $ 275,000 | $ 275,000 | |||
Carrying value | $ 273,322 | $ 272,960 | |||
Wtd. Avg. Note Rate | 4.50% | 4.50% | |||
4.75% Notes | |||||
Debt Obligations | |||||
Interest rate | 4.75% | 4.75% | |||
Debt, Face Value | $ 110,000 | $ 110,000 | |||
Carrying value | $ 109,633 | $ 109,369 | |||
Wtd. Avg. Note Rate | 4.75% | 4.75% | |||
5.75% Notes | |||||
Debt Obligations | |||||
Interest rate | 5.75% | ||||
Debt, Face Value | $ 90,000 | $ 90,000 | |||
Carrying value | $ 89,805 | $ 89,514 | |||
Wtd. Avg. Note Rate | 5.75% | 5.75% | |||
8.00% Notes | |||||
Debt Obligations | |||||
Interest rate | 8% | ||||
Debt, Face Value | $ 0 | $ 70,750 | |||
Carrying value | $ 0 | $ 70,613 | |||
Wtd. Avg. Note Rate | 0% | 8% | |||
5.625% Notes | |||||
Debt Obligations | |||||
Interest rate | 5.625% | 5.625% | |||
Debt, Face Value | $ 0 | $ 78,850 | |||
Carrying value | $ 0 | $ 78,726 | |||
Wtd. Avg. Note Rate | 0% | 5.63% | |||
Senior unsecured notes | |||||
Debt Obligations | |||||
Debt, Face Value | $ 1,345,000 | $ 1,399,600 | |||
Carrying value | $ 1,332,926 | $ 1,385,994 | |||
Wtd. Avg. Note Rate | 5.41% | 5.40% | |||
Deferred financing fees | $ 12,100 | $ 13,600 | |||
Weighted average note rate including certain fees and costs, percentage | 5.70% | 5.69% | |||
7.75% senior unsecured notes | |||||
Debt Obligations | |||||
Interest rate | 7.75% | ||||
Carrying value | $ 95,000 | ||||
Senior Unsecured Notes | |||||
Debt Obligations | |||||
Interest rate | 8% | ||||
Proceeds from issuance of unsecured notes | $ 93,400 | ||||
Amount utilized to repurchase a portion of unsecured notes | $ 70,800 |
Debt Obligations - Convertible
Debt Obligations - Convertible Senior Unsecured Notes (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Sep. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | |
Debt Obligations | ||||||
Total | $ 12,214,489 | $ 12,214,489 | ||||
Loss on extinguishment of debt | 314 | $ 3,262 | $ 1,561 | $ 4,612 | ||
Convertible senior unsecured notes | ||||||
Debt Obligations | ||||||
Percentage of notes required to be repurchased if the agreement is fundamentally changed | 100% | |||||
Debt, Face Value | 287,500 | $ 287,500 | $ 287,500 | |||
Unamortized Deferred Financing Fees | 5,072 | 7,144 | 5,072 | |||
Total | 282,428 | $ 280,356 | 282,428 | |||
Interest expense | 6,100 | 5,800 | 18,200 | 13,400 | ||
Interest expense related to cash coupon | 5,400 | 5,000 | 16,100 | 11,300 | ||
Deferred fees expensed as interest expense | $ 700 | $ 800 | $ 2,100 | $ 2,100 | ||
Weighted average cost of notes, percentage | 8.42% | 8.42% | 8.42% | |||
7.50% convertible notes | ||||||
Debt Obligations | ||||||
Interest rate | 7.50% | 7.50% | ||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 60.2170 | |||||
Conversion price per share of common stock (in dollars per share) | $ / shares | $ 16.61 | $ 16.61 | ||||
7.50% convertible notes | First Offering | ||||||
Debt Obligations | ||||||
Deferred fees expensed as interest expense | $ 1,000 | |||||
4.75% Notes | ||||||
Debt Obligations | ||||||
Debt, Face Value | $ 110,000 | $ 110,000 | $ 110,000 | |||
Interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||
Loss on extinguishment of debt | $ 3,300 |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Obligations | ||
Junior subordinated notes | $ 143,695 | $ 143,128 |
Debt, Wtd. Avg. Rate | 7.59% | |
Junior subordinated notes | ||
Debt Obligations | ||
Junior subordinated notes | $ 143,700 | 143,100 |
Deferred amount due at maturity | 9,100 | 9,600 |
Deferred fees expensed as interest expense | $ 1,500 | $ 1,600 |
Debt, Wtd. Avg. Rate | 8.55% | 7.65% |
Weighted average note rate including certain fees and costs, percentage | 8.63% | 7.74% |
Debt Obligations - Debt Covenan
Debt Obligations - Debt Covenants (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Sep. 30, 2023 | |
CLO 14 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 119.76% | 119.76% | 119.76% | 119.76% | 119.76% | |
Limit | 118.76% | |||||
Interest Coverage [Abstract] | ||||||
Current | 153.74% | |||||
Limit | 120% | |||||
CLO 14 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 119.76% | |||||
CLO 15 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.85% | 120.85% | 120.85% | 120.85% | 120.85% | |
Limit | 119.85% | |||||
Interest Coverage [Abstract] | ||||||
Current | 151.78% | |||||
Limit | 120% | |||||
CLO 15 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.85% | |||||
CLO 16 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 121.21% | 121.21% | 121.21% | 121.21% | 121.21% | |
Limit | 120.21% | |||||
Interest Coverage [Abstract] | ||||||
Current | 148.88% | |||||
Limit | 120% | |||||
CLO 16 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 121.21% | |||||
CLO 17 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 122.51% | 122.51% | 122.51% | 122.51% | 122.51% | |
Limit | 121.51% | |||||
Interest Coverage [Abstract] | ||||||
Current | 143.35% | |||||
Limit | 120% | |||||
CLO 17 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 122.51% | |||||
CLO 18 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 124.03% | 124.03% | 124.03% | 124.03% | 124.03% | |
Limit | 123.03% | |||||
Interest Coverage [Abstract] | ||||||
Current | 148.56% | |||||
Limit | 120% | |||||
CLO 18 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 124.03% | |||||
CLO 19 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.30% | 120.30% | 120.30% | 120.30% | 120.30% | |
Limit | 119.30% | |||||
Interest Coverage [Abstract] | ||||||
Current | 132.54% | |||||
Limit | 120% | |||||
CLO 19 | Forecast | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.30% | |||||
Junior subordinated notes | ||||||
Interest Coverage [Abstract] | ||||||
Amount payable on default of senior debt | $ 0 |
Allowance for Loss - Sharing Ob
Allowance for Loss - Sharing Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Roll forward of loss contingency accrual | |||||
Provisions for loss sharing | $ 1,679 | $ 412 | $ 12,528 | $ (2,199) | |
Guarantee obligations | 34,600 | 34,200 | 34,600 | 34,200 | |
Allowance for loss sharing obligations | 34,700 | $ 34,700 | $ 22,700 | ||
Loss-sharing obligations (as a percent) | 0.17% | 0.12% | |||
Impact of adopting CECL | 2,500 | $ 11,900 | |||
Loss-Sharing Obligation | |||||
Roll forward of loss contingency accrual | |||||
Outstanding advances under the Fannie Mae DUS program | 300 | 300 | $ 800 | ||
Loss-Sharing Obligation | Fannie Mae Mortgage | |||||
Roll forward of loss contingency accrual | |||||
Beginning balance | 66,681 | 53,053 | 57,168 | 56,064 | 56,064 |
Provisions for loss sharing | 1,703 | 2,346 | 13,992 | 2,593 | |
Provisions reversal for loan repayments | (24) | (1,934) | (1,464) | (4,792) | |
Recoveries (charge-offs), net | 901 | 46 | (435) | (354) | |
Ending balance | 69,261 | $ 53,511 | 69,261 | $ 53,511 | 57,168 |
Maximum quantifiable liability | $ 3,790,000 | $ 3,790,000 | $ 3,490,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Financial Instruments | ||||
Net loss from changes in the fair value of derivatives | $ 1,000 | $ 22,900 | $ 2,000 | $ 20,500 |
Mortgage servicing rights | 14,109 | 19,408 | $ 48,769 | 52,287 |
Swaps | ||||
Derivative Financial Instruments | ||||
Derivative, maturity term | 3 months | |||
Derivative swap default credit | 5 years | |||
Swaps | Other Income | Agency Business | ||||
Derivative Financial Instruments | ||||
Realized gain on derivatives | 400 | 3,600 | $ 1,500 | 27,200 |
Unrealized gains (losses) on derivatives | $ 200 | $ 3,400 | $ (3,000) | $ 3,400 |
Swaps | Minimum | ||||
Derivative Financial Instruments | ||||
Derivative swap rate period | 5 years | |||
Swaps | Maximum | ||||
Derivative Financial Instruments | ||||
Derivative swap rate period | 10 years |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Non-Qualifying Derivative Financial Instruments (Details) $ in Thousands | Sep. 30, 2023 USD ($) count | Dec. 31, 2022 USD ($) count |
Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Notional Value | $ 570,656 | $ 515,723 |
Derivative Assets | 3,341 | 1,505 |
Derivative Liabilities | (8,161) | $ (4,897) |
Rate lock commitments | ||
Derivative Financial Instruments | ||
Notional Value | $ 107,093 | |
Rate lock commitments | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | count | 4 | 6 |
Notional Value | $ 107,093 | $ 91,472 |
Derivative Assets | 962 | 354 |
Derivative Liabilities | (2,339) | $ (1,070) |
Forward sale commitments | ||
Derivative Financial Instruments | ||
Notional Value | $ 455,363 | |
Forward sale commitments | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | count | 36 | 27 |
Notional Value | $ 455,363 | $ 294,451 |
Derivative Assets | 2,379 | 1,151 |
Derivative Liabilities | $ (5,822) | $ (3,827) |
Swaps | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | count | 82 | 1,298 |
Notional Value | $ 8,200 | $ 129,800 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financial assets: | ||
Loans and investments, net, Principal/Notional Amount | $ 13,122,395 | $ 14,456,123 |
Loans and investments, net | 12,892,796 | 14,254,674 |
Loans held-for-sale, net, Principal/Notional Amount | 368,330 | 368,066 |
Loans held-for-sale, net | 368,330 | 368,066 |
Securities, held-to-maturity, net, Principal/Notional Amount | 231,577 | 234,255 |
Securities held-to-maturity, net | 155,172 | 156,547 |
Derivative financial instruments, Principal/Notional Amount | 130,778 | 111,950 |
Financial liabilities: | ||
Credit and repurchase facilities, Principal/Notional Amount | 3,398,451 | 3,856,009 |
Credit and repurchase facilities | 3,391,441 | 3,841,814 |
Securitized debt | 7,004,634 | 7,849,270 |
Senior unsecured notes | 1,332,926 | 1,385,994 |
Convertible senior unsecured notes | 282,428 | 280,356 |
Junior subordinated notes | 143,695 | 143,128 |
Derivative financial instruments, Principal/Notional Amount | $ 431,678 | 273,973 |
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 | $ 12,892,796 | 14,254,674 |
Loans held-for-sale, net | 364,320 | 354,070 |
Capitalized mortgage servicing rights, net | 392,203 | 401,471 |
Securities held-to-maturity, net | 155,172 | 156,547 |
Derivative financial instruments | 3,341 | 1,505 |
Financial liabilities: | ||
Credit and repurchase facilities | 3,391,441 | 3,841,814 |
Securitized debt | 7,004,634 | 7,849,270 |
Senior unsecured notes | 1,332,926 | 1,385,994 |
Convertible senior unsecured notes | 282,428 | 280,356 |
Junior subordinated notes | 143,695 | 143,128 |
Derivative financial instruments | 8,161 | 4,897 |
Estimated Fair Value | ||
Financial assets: | ||
Loans and investments, net | 12,911,172 | 14,468,418 |
Loans held-for-sale, net | 374,534 | 362,054 |
Capitalized mortgage servicing rights, net | 538,078 | 530,913 |
Securities held-to-maturity, net | 126,608 | 144,571 |
Derivative financial instruments | 3,341 | 1,505 |
Financial liabilities: | ||
Credit and repurchase facilities | 3,382,933 | 3,828,192 |
Securitized debt | 6,899,147 | 7,560,541 |
Senior unsecured notes | 1,211,633 | 1,262,560 |
Convertible senior unsecured notes | 290,019 | 287,834 |
Junior subordinated notes | 105,821 | 103,977 |
Derivative financial instruments | 8,161 | 4,897 |
Securitized debt | ||
Financial liabilities: | ||
Debt face value issued to third parties | 7,029,202 | 7,886,066 |
Senior unsecured notes | ||
Financial liabilities: | ||
Debt face value issued to third parties | 1,345,000 | 1,399,600 |
Convertible senior unsecured notes | ||
Financial liabilities: | ||
Debt face value issued to third parties | 287,500 | 287,500 |
Junior subordinated notes | ||
Financial liabilities: | ||
Debt face value issued to third parties | 154,336 | 154,336 |
Junior subordinated notes | $ 143,700 | $ 143,100 |
Fair Value - Measurement on Rec
Fair Value - Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Financial assets: | ||
Impaired loans, net | $ 280,258 | $ 147,131 |
Financial liabilities: | ||
Allowance for credit losses on impaired loans | $ 111,100 | |
Number of impaired loans | loan | 13 | |
Aggregate carrying value of impaired loans before reserves | $ 280,300 | |
Unrealized impairment losses on held-for-sale | $ 2,900 | |
Number of impaired loans held-for-sale | loan | 6 | |
Unrealized impairment losses | $ 20,100 | |
Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 3,341 | 1,505 |
Financial liabilities: | ||
Derivative financial instruments | 8,161 | 4,897 |
Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 3,341 | 1,505 |
Financial liabilities: | ||
Derivative financial instruments | 8,161 | $ 4,897 |
Recurring basis | Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 3,341 | |
Financial liabilities: | ||
Derivative financial instruments | 8,161 | |
Recurring basis | Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 3,341 | |
Financial liabilities: | ||
Derivative financial instruments | 8,161 | |
Nonrecurring basis | Carrying Value | ||
Financial assets: | ||
Loans held-for-investment | 169,171 | |
Loans held-for-sale | 17,169 | |
Impaired loans, net | 186,340 | |
Nonrecurring basis | Fair Value | ||
Financial assets: | ||
Loans held-for-investment | 169,171 | |
Loans held-for-sale | 17,169 | |
Impaired loans, net | 186,340 | |
Level 1 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 0 | |
Financial liabilities: | ||
Derivative financial instruments | 0 | |
Level 1 | Nonrecurring basis | ||
Financial assets: | ||
Loans held-for-investment | 0 | |
Loans held-for-sale | 0 | |
Impaired loans, net | 0 | |
Level 2 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 2,379 | |
Financial liabilities: | ||
Derivative financial instruments | 8,161 | |
Level 2 | Nonrecurring basis | ||
Financial assets: | ||
Loans held-for-investment | 0 | |
Loans held-for-sale | 17,169 | |
Impaired loans, net | 17,169 | |
Level 3 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 962 | |
Financial liabilities: | ||
Derivative financial instruments | 0 | |
Level 3 | Nonrecurring basis | ||
Financial assets: | ||
Loans held-for-investment | 169,171 | |
Loans held-for-sale | 0 | |
Impaired loans, net | $ 169,171 |
Fair Value - Level 3 Inputs (De
Fair Value - Level 3 Inputs (Details) - Level 3 $ in Thousands | Sep. 30, 2023 USD ($) |
Multifamily | |
Fair Value | |
Impaired loans, fair value | $ 70,246 |
Multifamily | Capitalization rate | |
Fair Value | |
Impaired loans, measurement input | 6.53 |
Land | |
Fair Value | |
Impaired loans, fair value | $ 50,000 |
Land | Discount rate | |
Fair Value | |
Impaired loans, measurement input | 21.50 |
Land | Revenue growth rate | |
Fair Value | |
Impaired loans, measurement input | 3 |
Office | |
Fair Value | |
Impaired loans, fair value | $ 37,074 |
Office | Discount rate | |
Fair Value | |
Impaired loans, measurement input | 7.50 |
Office | Capitalization rate | |
Fair Value | |
Impaired loans, measurement input | 5.25 |
Office | Revenue growth rate | |
Fair Value | |
Impaired loans, measurement input | 3 |
Retail | |
Fair Value | |
Impaired loans, fair value | $ 11,851 |
Retail | Discount rate | |
Fair Value | |
Impaired loans, measurement input | 11.25 |
Retail | Capitalization rate | |
Fair Value | |
Impaired loans, measurement input | 9.25 |
Retail | Revenue growth rate | |
Fair Value | |
Impaired loans, measurement input | 3 |
Rate lock commitments | |
Fair Value | |
Derivative financial instruments | $ 962 |
Derivative Asset, Valuation Technique [Extensible List] | Valuation Technique, Discounted Cash Flow [Member] |
Derivative Asset, Measurement Input [Extensible List] | Discount rate |
Rate lock commitments | Discount rate | |
Fair Value | |
Impaired loans, measurement input | 12.27 |
Fair Value - Level 3 Derivative
Fair Value - Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative assets | ||||
Beginning balance | $ 757 | $ 1,035 | $ 354 | $ 295 |
Settlements | (13,369) | (16,554) | (46,123) | (47,491) |
Realized gains recorded in earnings | 12,612 | 15,519 | 45,769 | 47,196 |
Unrealized gains recorded in earnings | 962 | 1,554 | 962 | 1,554 |
Ending balance | $ 962 | $ 1,554 | $ 962 | $ 1,554 |
Fair Value - Components of fair
Fair Value - Components of fair value and other relevant information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Sep. 30, 2023 | |
Fair Value | ||
Fair Value of Servicing Rights | $ 5,264 | |
Interest Rate Movement Effect | 0 | |
Unrealized Impairment Loss | $ (4,100) | (2,891) |
Total Fair Value Adjustment | 2,373 | |
Rate lock commitments | ||
Fair Value | ||
Notional/ Principal Amount | 107,093 | |
Fair Value of Servicing Rights | 962 | |
Interest Rate Movement Effect | (2,339) | |
Unrealized Impairment Loss | 0 | |
Total Fair Value Adjustment | (1,377) | |
Forward sale commitments | ||
Fair Value | ||
Notional/ Principal Amount | 455,363 | |
Fair Value of Servicing Rights | 0 | |
Interest Rate Movement Effect | 2,339 | |
Unrealized Impairment Loss | 0 | |
Total Fair Value Adjustment | 2,339 | |
Loans held-for-sale, net | ||
Fair Value | ||
Notional/ Principal Amount | 368,330 | |
Fair Value of Servicing Rights | 4,302 | |
Interest Rate Movement Effect | 0 | |
Unrealized Impairment Loss | (2,891) | |
Total Fair Value Adjustment | $ 1,411 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Loans and investments, net | $ 12,892,796 | $ 14,254,674 |
Loans held-for-sale, net | 368,330 | 368,066 |
Securities held-to-maturity, net | 155,172 | 156,547 |
Financial liabilities: | ||
Credit and repurchase facilities | 3,391,441 | 3,841,814 |
Securitized debt | 7,004,634 | 7,849,270 |
Senior unsecured notes | 1,332,926 | 1,385,994 |
Convertible senior unsecured notes | 282,428 | 280,356 |
Junior subordinated notes | 143,695 | 143,128 |
Level 1 | ||
Financial assets: | ||
Loans and investments, net | 0 | |
Loans held-for-sale, net | 0 | |
Capitalized mortgage servicing rights, net | 0 | |
Securities held-to-maturity, net | 0 | |
Financial liabilities: | ||
Credit and repurchase facilities | 0 | |
Securitized debt | 0 | |
Senior unsecured notes | 1,211,633 | |
Convertible senior unsecured notes | 0 | |
Junior subordinated notes | 0 | |
Level 2 | ||
Financial assets: | ||
Loans and investments, net | 0 | |
Loans held-for-sale, net | 370,232 | |
Capitalized mortgage servicing rights, net | 0 | |
Securities held-to-maturity, net | 0 | |
Financial liabilities: | ||
Credit and repurchase facilities | 354,586 | |
Securitized debt | 0 | |
Senior unsecured notes | 0 | |
Convertible senior unsecured notes | 290,019 | |
Junior subordinated notes | 0 | |
Level 3 | ||
Financial assets: | ||
Loans and investments, net | 12,911,172 | |
Loans held-for-sale, net | 4,302 | |
Capitalized mortgage servicing rights, net | 538,078 | |
Securities held-to-maturity, net | 126,608 | |
Financial liabilities: | ||
Credit and repurchase facilities | 3,028,347 | |
Securitized debt | 6,899,147 | |
Senior unsecured notes | 0 | |
Convertible senior unsecured notes | 0 | |
Junior subordinated notes | 105,821 | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | 12,892,796 | 14,254,674 |
Loans held-for-sale, net | 364,320 | 354,070 |
Capitalized mortgage servicing rights, net | 392,203 | |
Securities held-to-maturity, net | 155,172 | 156,547 |
Financial liabilities: | ||
Credit and repurchase facilities | 3,391,441 | 3,841,814 |
Securitized debt | 7,004,634 | 7,849,270 |
Senior unsecured notes | 1,332,926 | 1,385,994 |
Convertible senior unsecured notes | 282,428 | 280,356 |
Junior subordinated notes | 143,695 | 143,128 |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 12,911,172 | 14,468,418 |
Loans held-for-sale, net | 374,534 | 362,054 |
Capitalized mortgage servicing rights, net | 538,078 | |
Securities held-to-maturity, net | 126,608 | 144,571 |
Financial liabilities: | ||
Credit and repurchase facilities | 3,382,933 | 3,828,192 |
Securitized debt | 6,899,147 | 7,560,541 |
Senior unsecured notes | 1,211,633 | 1,262,560 |
Convertible senior unsecured notes | 290,019 | 287,834 |
Junior subordinated notes | $ 105,821 | $ 103,977 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Agency Business Commitments | ||||
Cash collateral per securitization | $ 5,000 | $ 5,000 | ||
Outstanding letters of credit | 5,000 | 5,000 | ||
Debt Obligations | ||||
2023 (three months ending December 31, 2023) | 858,768 | 858,768 | ||
2024 | 2,004,350 | 2,004,350 | ||
2025 | 3,378,563 | 3,378,563 | ||
2026 | 4,523,241 | 4,523,241 | ||
2027 | 1,115,231 | 1,115,231 | ||
2028 | 180,000 | 180,000 | ||
Thereafter | 154,336 | 154,336 | ||
Total | 12,214,489 | 12,214,489 | ||
Minimum Annual Operating Lease Payments | ||||
2023 (three months ending December 31, 2023) | 2,300 | 2,300 | ||
2024 | 10,188 | 10,188 | ||
2025 | 10,555 | 10,555 | ||
2026 | 10,627 | 10,627 | ||
2027 | 9,225 | 9,225 | ||
2028 | 8,624 | 8,624 | ||
Thereafter | 27,755 | 27,755 | ||
Total | 79,274 | 79,274 | ||
Total | ||||
2023 (three months ending December 31, 2023) | 861,068 | 861,068 | ||
2024 | 2,014,538 | 2,014,538 | ||
2025 | 3,389,118 | 3,389,118 | ||
2026 | 4,533,868 | 4,533,868 | ||
2027 | 1,124,456 | 1,124,456 | ||
2028 | 188,624 | 188,624 | ||
Thereafter | 182,091 | 182,091 | ||
Total | 12,293,763 | 12,293,763 | ||
Operating lease expense | 2,800 | $ 2,400 | 8,000 | $ 7,200 |
Fannie Mae Mortgage | ||||
Agency Business Commitments | ||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | 19,800 | $ 19,800 | ||
Period of funding for collateral requirement | 48 months | |||
Letter of credit required | 72,600 | $ 72,600 | ||
Letter of credit assigned | 64,000 | 64,000 | ||
Reserve required to fund additional restricted liquidity over the next 48 months | $ 37,300 | $ 37,300 | ||
Period of additional funding for collateral requirement | 48 months | |||
Forward Contracts | ||||
Agency Business Commitments | ||||
Period of contractual commitment | 60 days |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 USD ($) | Jun. 30, 2013 lawsuit defendant | Jun. 30, 2011 defendant lawsuit | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Commitments and Contingencies | |||||||
Operating lease expense | $ | $ 2.8 | $ 2.4 | $ 8 | $ 7.2 | |||
Litigation settlement amount | $ | $ 38 | ||||||
Land | |||||||
Commitments and Contingencies | |||||||
Outstanding unfunded commitments | $ | 1,150 | $ 1,080 | $ 1,080 | ||||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | |||||||
Commitments and Contingencies | |||||||
Number of lawsuits or complaints filed | lawsuit | 3 | ||||||
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 | ||||||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Maximum | |||||||
Commitments and Contingencies | |||||||
Litigation settlement, expense | $ | $ 7.4 | ||||||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits | |||||||
Commitments and Contingencies | |||||||
Number of defendants who are corporate and partnership entities | 16 | ||||||
Number of defendants named in a legal action who are individuals | 10 | ||||||
Number of lawsuits consolidated | lawsuit | 1 | ||||||
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 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 USD ($) entity | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Assets: | ||||
Restricted cash | $ 419,158 | $ 713,808 | $ 922,531 | $ 486,690 |
Loans and investments, net | 12,892,796 | 14,254,674 | ||
Other assets | 416,741 | 371,440 | ||
Total assets | 15,902,689 | 17,038,985 | ||
Liabilities: | ||||
Securitized debt | 7,004,634 | 7,849,270 | ||
Other liabilities | 320,973 | 335,789 | ||
Total liabilities | 12,662,188 | 13,967,106 | ||
CLOs and Debt Fund | ||||
Assets: | ||||
Restricted cash | 408,569 | 710,775 | ||
Loans and investments, net | 7,968,741 | 8,900,104 | ||
Other assets | 311,988 | 174,382 | ||
Total assets | 8,689,298 | 9,785,261 | ||
Liabilities: | ||||
Securitized debt | 7,004,634 | 7,849,270 | ||
Other liabilities | 23,259 | 26,754 | ||
Total liabilities | 7,027,893 | $ 7,876,024 | ||
Unconsolidated VIEs | ||||
Assets: | ||||
Total assets | $ 612,595 | |||
Liabilities: | ||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | entity | 27 | |||
Carrying amount of loans and investments before reserves related to VIEs | $ 172,900 | |||
Loan loss reserves related to VIEs | 85,800 | |||
Exposure to real estate debt | 3,860,000 | |||
Unconsolidated VIEs | Loans | ||||
Assets: | ||||
Total assets | 433,532 | |||
Unconsolidated VIEs | APL certificates | ||||
Assets: | ||||
Total assets | 129,887 | |||
Unconsolidated VIEs | B Piece bonds | ||||
Assets: | ||||
Total assets | 31,228 | |||
Unconsolidated VIEs | Equity investments | ||||
Assets: | ||||
Total assets | 17,771 | |||
Unconsolidated VIEs | Agency interest only strips | ||||
Assets: | ||||
Total assets | $ 177 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Oct. 25, 2023 $ / shares | Sep. 30, 2023 USD ($) Vote $ / shares shares | Jul. 26, 2023 $ / shares | May 03, 2023 $ / shares | Feb. 15, 2023 $ / shares | Sep. 30, 2023 Vote $ / shares shares | Mar. 31, 2023 USD ($) shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2023 USD ($) Vote $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares | |
Common stock | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Proceeds from issuance of shares under public offering | $ | $ 193,660 | $ 312,766 | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | 0.01 | 0.01 | $ 0.01 | $ 0.01 | |||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.43 | $ 0.39 | $ 1.25 | $ 1.14 | |||||||
Subsequent event | |||||||||||
Common stock | |||||||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.43 | ||||||||||
Restricted common stock | Chief executive officer | |||||||||||
Common stock | |||||||||||
Restricted stock vested during period (in shares) | 313,152 | ||||||||||
Restricted common stock | Chief executive officer | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 247,275 | ||||||||||
Total grant date fair value | $ | $ 2,900 | ||||||||||
Restricted common stock | Employees | |||||||||||
Common stock | |||||||||||
Shares withheld for taxes (in shares) | 220,315 | ||||||||||
Restricted common stock | Employees | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 939,325 | ||||||||||
Total grant date fair value | $ | $ 11,200 | ||||||||||
Restricted common stock | Employees | Vested on grant date | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 297,182 | ||||||||||
Total grant date fair value | $ | $ 3,600 | ||||||||||
Restricted common stock | Employees | First anniversaries | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 276,785 | ||||||||||
Total grant date fair value | $ | $ 3,300 | ||||||||||
Restricted common stock | Employees | Second anniversaries | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 252,510 | ||||||||||
Total grant date fair value | $ | $ 3,000 | ||||||||||
Restricted common stock | Employees | Third anniversaries | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 78,126 | ||||||||||
Total grant date fair value | $ | $ 900 | ||||||||||
Restricted common stock | Employees | Fourth anniversaries | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 34,722 | ||||||||||
Total grant date fair value | $ | $ 400 | ||||||||||
RSUs | Director | 2020 Plan | |||||||||||
Common stock | |||||||||||
Grants during the period (in shares) | 40,796 | ||||||||||
Total grant date fair value | $ | $ 500 | ||||||||||
Performance-based restricted stock | Chief executive officer | |||||||||||
Common stock | |||||||||||
Restricted stock vested during period (in shares) | 352,427 | ||||||||||
Common stock | Chief executive officer | |||||||||||
Common stock | |||||||||||
Restricted stock vested during period (in shares) | 153,287 | 172,513 | |||||||||
Common stock | |||||||||||
Common stock | |||||||||||
Number of common stock sold (in shares) | 5,576,496 | 3,170,688 | 13,113,296 | 19,625,788 | |||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.43 | $ 0.42 | $ 0.40 | ||||||||
Operating Partnership Units | |||||||||||
Common stock | |||||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | ||||||||||
Operating Partnership Units | Special voting preferred shares | |||||||||||
Common stock | |||||||||||
Number of preferred stock shares paired with each OP units (in shares) | 1 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Number of vote per share of special voting preferred shares (in shares) | Vote | 1 | 1 | 1 | ||||||||
OP units outstanding (in shares) | 16,293,589 | 16,293,589 | 16,293,589 | ||||||||
Voting power of outstanding stock, percentage | 8% | ||||||||||
Share repurchase program | |||||||||||
Common stock | |||||||||||
Authorized amount to repurchase | $ | $ 50,000 | ||||||||||
Number of shares repurchased (in shares) | 3,545,604 | ||||||||||
Value of shares repurchased | $ | $ 37,400 | ||||||||||
Average cost per share (in dollars per share) | $ / shares | $ 10.56 | ||||||||||
Public offering | Common stock | |||||||||||
Common stock | |||||||||||
Number of common stock sold (in shares) | 13,113,296 | ||||||||||
Proceeds from issuance of shares under public offering | $ | $ 193,600 | ||||||||||
At-The-Market | Common stock | |||||||||||
Common stock | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 14.77 | $ 14.77 | $ 14.77 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends Payable (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 29, 2023 | Jul. 26, 2023 | Jun. 30, 2023 | May 03, 2023 | Mar. 31, 2023 | Feb. 15, 2023 | Jan. 03, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Common Stock, Dividend (in dollars per share) | $ 0.43 | $ 0.39 | $ 1.25 | $ 1.14 | |||||||
Common stock | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Common Stock, Dividend (in dollars per share) | $ 0.43 | $ 0.42 | $ 0.40 | ||||||||
Preferred Stock | Series D | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ 0.3984375 | $ 0.3984375 | $ 0.3984375 | $ 0.3984375 | |||||||
Preferred Stock | Series E | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | 0.390625 | 0.390625 | 0.390625 | 0.390625 | |||||||
Preferred Stock | Series F | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ 0.390625 | $ 0.390625 | $ 0.390625 | $ 0.390625 |
Equity - Earnings Per Share ("E
Equity - Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic | ||||
Net income attributable to common stockholders | $ 77,924 | $ 62,710 | $ 238,407 | $ 196,678 |
Net income attributable to common stockholders and noncontrolling interest | $ 77,924 | $ 62,710 | $ 238,407 | $ 196,678 |
Weighted average shares outstanding (in shares) | 187,023,395 | 170,227,553 | 183,340,149 | 162,292,235 |
Weighted average shares outstanding (in shares) | 187,023,395 | 170,227,553 | 183,340,149 | 162,292,235 |
Net income per common share (in dollars per share) | $ 0.42 | $ 0.37 | $ 1.30 | $ 1.21 |
Diluted | ||||
Net income attributable to common stockholders | $ 77,924 | $ 62,710 | $ 238,407 | $ 196,678 |
Net income attributable to noncontrolling interest | 6,789 | 6,002 | 21,200 | 19,811 |
Interest expense on convertible notes | 6,081 | 5,797 | 18,244 | 13,786 |
Net income attributable to common stockholders and noncontrolling interest | $ 90,794 | $ 74,509 | $ 277,851 | $ 230,275 |
Weighted average shares outstanding (in shares) | 187,023,395 | 170,227,553 | 183,340,149 | 162,292,235 |
Dilutive effect of OP Units (in shares) | 16,293,589 | 16,293,589 | 16,293,589 | 16,308,361 |
Dilutive effect of convertible notes (in shares) | 17,312,382 | 18,815,399 | 17,271,419 | 16,370,528 |
Dilutive effect of restricted stock units (in shares) | 699,452 | 528,475 | 552,242 | 558,216 |
Weighted average shares outstanding ( in shares) | 221,328,818 | 205,865,016 | 217,457,399 | 195,529,340 |
Diluted earnings per common share (in dollars per share) | $ 0.41 | $ 0.36 | $ 1.28 | $ 1.18 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Taxes | ||||
Provision (benefit) for income taxes | $ 5,854 | $ (374) | $ 19,436 | $ 13,166 |
Current tax provision | 8,300 | 5,000 | 26,000 | 21,000 |
Deferred tax benefit | $ 2,400 | $ 5,400 | $ 6,630 | $ 7,833 |
Minimum | ||||
Income Taxes | ||||
Federal income tax rate | 90% |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties - Shared Services Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party | Other Related Party Transactions | ||||
Agreements and Transactions with Related Parties | ||||
Costs for services to related party | $ 0.9 | $ 0.9 | $ 2.3 | $ 2.5 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Other Related Party (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 01, 2023 | May 30, 2023 USD ($) | Apr. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Sep. 30, 2023 USD ($) entity shares | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) entity shares | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) property | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) loan property | Dec. 31, 2017 USD ($) loan property | Dec. 31, 2016 USD ($) property | Dec. 31, 2015 USD ($) | May 31, 2023 USD ($) officer | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 336,474 | $ 259,778 | $ 1,000,159 | $ 627,804 | |||||||||||||||||
Investment made | 1,061,865 | 5,418,113 | |||||||||||||||||||
Loans and investments, allowance for credit losses | 184,069 | $ 169,054 | 122,296 | 184,069 | 122,296 | $ 113,241 | $ 132,559 | $ 121,331 | |||||||||||||
Servicing revenue | 51,363 | 37,526 | $ 144,296 | 109,045 | |||||||||||||||||
Indirect ownership percentage | 9.20% | ||||||||||||||||||||
Arbor Residential Investor LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Indirect ownership percentage | 12.30% | ||||||||||||||||||||
Lexford Portfolio | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Distribution received | 5,000 | $ 7,200 | 11,000 | ||||||||||||||||||
AMAC Holdings III LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Gain (loss) on investments | (700) | (700) | (1,600) | (1,800) | |||||||||||||||||
Distribution received | 200 | 1,100 | 400 | ||||||||||||||||||
Other Related Party Transactions | Arbor Residential Investor LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Distribution from investment classified as return capital | 7,500 | 7,300 | 15,000 | 22,300 | |||||||||||||||||
Multifamily | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loans and investments, allowance for credit losses | 89,179 | 74,295 | 27,283 | 89,179 | 27,283 | 18,707 | 37,961 | 27,958 | |||||||||||||
Single-Family Rental | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loans and investments, allowance for credit losses | 1,239 | $ 1,077 | 2,051 | 1,239 | 2,051 | 320 | 781 | $ 725 | |||||||||||||
Maturity date of March 2025 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.50% | ||||||||||||||||||||
Bridge loans | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Variable rate, spread | 3.40% | ||||||||||||||||||||
Bridge loans | Matures In May 2025 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.25% | ||||||||||||||||||||
SOFR floor, percentage | 1% | ||||||||||||||||||||
Bridge loan, six multifamily properties | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
UPB converted to a mezzanine loan | $ 2,000 | ||||||||||||||||||||
Related Party | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Due from related party | 211,655 | 211,655 | 77,419 | ||||||||||||||||||
Due to related party | 2,170 | 2,170 | 12,350 | ||||||||||||||||||
Amount invested | $ 4,200 | ||||||||||||||||||||
Related Party | LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Ownership interest, percentage | 49.30% | ||||||||||||||||||||
Related Party | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Due from related party | 211,700 | 211,700 | 77,400 | ||||||||||||||||||
Due to related party | 2,200 | 2,200 | 12,400 | ||||||||||||||||||
Related Party | Other Related Party Transactions | AMAC III | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 800 | 500 | 2,300 | 1,200 | |||||||||||||||||
Amount invested | 25,200 | $ 25,200 | $ 30,000 | ||||||||||||||||||
Ownership interest, percentage | 18% | ||||||||||||||||||||
Related Party | Other Related Party Transactions | Lexford Portfolio | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Management fee, percentage of gross revenues of underlying properties | 4.75% | ||||||||||||||||||||
Related Party | Commercial Mortgage Backed Security | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loans assumed | $ 26,000 | ||||||||||||||||||||
Related Party | Residential mortgage banking business | Other Related Party Transactions | ACM | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Noncontrolling interest in equity method investment acquired (as a percent) | 50% | ||||||||||||||||||||
Related Party | Residential mortgage banking business | Other Related Party Transactions | Noncontrolling Interest | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Gain (loss) on investments | $ (1,300) | 300 | $ 1,300 | 6,400 | |||||||||||||||||
Indirect ownership percentage | 12.30% | ||||||||||||||||||||
Related Party | Residential mortgage banking business | Other Related Party Transactions | ACM | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Acquisition purchase price | $ 9,600 | ||||||||||||||||||||
Related Party | ACM Acquisition | Other Related Party Transactions | ACM | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Number of shares held by related party (in shares) | shares | 2,535,870 | 2,535,870 | |||||||||||||||||||
OP units hold as part of acquisition (in shares) | shares | 10,615,085 | ||||||||||||||||||||
Aggregate percentage of voting power held by related party | 6.40% | 6.40% | |||||||||||||||||||
Related Party | Multifamily | Fannie Mae Mortgage | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 46,900 | ||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 17.60% | ||||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 5% | ||||||||||||||||||||
Servicing revenue | $ 100 | 100 | $ 100 | 100 | |||||||||||||||||
Related Party | Retail property | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Property purchased | 32,500 | ||||||||||||||||||||
Related Party | Maturity Date April 2030 | Multifamily | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||||
Related Party | Maturity date of August 2023 | One multifamily property | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 35,400 | ||||||||||||||||||||
Related Party | Maturity date of March 2030 | Private Label | Other Related Party Transactions | Lexford Portfolio | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 34,600 | ||||||||||||||||||||
Related Party | Preferred equity investments | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loans and investments, allowance for credit losses | 8,000 | 8,000 | $ 8,000 | ||||||||||||||||||
Related Party | Preferred equity investments | Single-Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Investment made | $ 4,600 | ||||||||||||||||||||
Related Party | Preferred equity investments | Matures in April 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest | 12% | ||||||||||||||||||||
Related Party | Preferred equity investments | Maturity Date April 2030 | Multifamily | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity investment | $ 3,400 | ||||||||||||||||||||
Related Party | Preferred equity investments | Maturity Date June 2027 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity investment | 10,000 | 10,000 | |||||||||||||||||||
Related Party | Mezzanine Loans | Maturity Date April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest | 9% | ||||||||||||||||||||
Related Party | Bridge loans | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 18.90% | ||||||||||||||||||||
Related Party | Bridge loans | Single-Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loan committed | 24,500 | ||||||||||||||||||||
Investment made | $ 3,500 | ||||||||||||||||||||
Loan committed upsized | $ 38,400 | ||||||||||||||||||||
Related Party | Bridge loans | Maturity Date December 2025 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 100 | 200 | |||||||||||||||||||
Related Party | Bridge loans | Maturity Date December 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 56,900 | ||||||||||||||||||||
Loan committed | $ 3,800 | ||||||||||||||||||||
Number of officers making minority equity investments | officer | 2 | ||||||||||||||||||||
Equity investment | $ 500 | ||||||||||||||||||||
Equity participation interest (as a percentage) | 4% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity Date December 2025 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.50% | ||||||||||||||||||||
SOFR floor, percentage | 3.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 100 | 100 | |||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 46,200 | ||||||||||||||||||||
Loan committed | 3,500 | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 70% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of May 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 67,100 | ||||||||||||||||||||
Interest income | 100 | 200 | |||||||||||||||||||
Related Party | Bridge loans | Maturity date of May 2025 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4.63% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Equity participation interest (as a percentage) | 2.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of May 2025 | Single-Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loan committed | 30,500 | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of May 2025 | Maximum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 100 | 100 | |||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025, Committed February 2022 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 39,400 | ||||||||||||||||||||
Loan committed | 3,100 | ||||||||||||||||||||
Interest income | 100 | 100 | 100 | 100 | |||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025, Committed February 2022 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2025, Committed February 2022 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Equity participation interest (as a percentage) | 2.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2024 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loan committed | $ 63,400 | ||||||||||||||||||||
Interest income | 1,500 | 1,000 | 4,300 | 2,500 | |||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2024 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 3.75% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity date of March 2024 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 3.75% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity Date December 2023 | Single-Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loan committed | $ 32,500 | ||||||||||||||||||||
Related Party | Bridge loans | Matures in May 2023 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.50% | ||||||||||||||||||||
SOFR floor, percentage | 0.75% | ||||||||||||||||||||
Amount invested | 34,200 | 34,200 | |||||||||||||||||||
Related Party | Bridge loans | Matures in April 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 1,000 | 500 | 2,500 | 1,000 | |||||||||||||||||
Related Party | Bridge loans | Maturity Date July 2023 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 35,000 | 35,000 | |||||||||||||||||||
Related Party | Bridge loans | Maturity date of August 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 600 | 400 | 1,600 | 1,000 | |||||||||||||||||
Percentage of ownership interest of related party in the entity | 75% | ||||||||||||||||||||
Related Party | Bridge loans | Maturity Date Of June 2021 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 280,500 | ||||||||||||||||||||
Number of bridge loans originated | loan | 12 | ||||||||||||||||||||
Number of multifamily properties renovated | property | 72 | ||||||||||||||||||||
Related Party | Bridge loans | Maturity Date Of June 2021 | Other Related Party Transactions | Lexford Portfolio | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4% | ||||||||||||||||||||
Distribution received | 5,000 | 7,200 | 11,000 | ||||||||||||||||||
Paydowns of principal made by borrower | $ 250,000 | ||||||||||||||||||||
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners | 50,000 | 50,000 | |||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Maturity date of August 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 21,700 | ||||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Maturity date of August 2023 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Variable rate, spread | 3.50% | ||||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Maturity date of August 2023 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Variable rate, spread | 3.50% | ||||||||||||||||||||
Related Party | Bridge loan, several multifamily properties | Maturity date of August 2023 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4.75% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Related Party | Bridge loan, several multifamily properties | Maturity date of August 2023 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4.75% | ||||||||||||||||||||
SOFR floor, percentage | 0.25% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity Date April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 14,800 | ||||||||||||||||||||
Interest income | 100 | 100 | 200 | 200 | |||||||||||||||||
Percentage of ownership interest of related party in the entity | 50% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2022 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 28,000 | ||||||||||||||||||||
Base spread, percentage | 1.80% | ||||||||||||||||||||
Interest income | 800 | ||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 45% | ||||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||||
Number of bridge loans originated | loan | 2 | ||||||||||||||||||||
Refinanced loan amount | $ 31,100 | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2022 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 4% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2022 | Minimum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
SOFR floor, percentage | 1.24% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2022 | Maximum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
SOFR floor, percentage | 1.54% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of 2020 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.25% | ||||||||||||||||||||
Related Party | AMAC III | Mezzanine Loans | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 7,000 | ||||||||||||||||||||
Related Party | AMAC III | Bridge loan, one multifamily property | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 34,000 | ||||||||||||||||||||
Related Party | Lexford Portfolio | Maturity date of March 2030 | Private Label | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest | 3.30% | ||||||||||||||||||||
Related Party | Lexford Portfolio | Bridge loans | Maturity date December 2029 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Maximum exposure under guaranty | $ 600,000 | 600,000 | |||||||||||||||||||
Chief executive officer | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Reimbursement for flights chartered by the company's executives | $ 600 | 1,000 | |||||||||||||||||||
Chief executive officer | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of our former manager's outstanding membership interest of related party in another related party | 35% | 35% | |||||||||||||||||||
Chief executive officer | Minimum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Ownership percentage limit of our common stock under company charter | 5% | 5% | |||||||||||||||||||
Chief executive officer | Mezzanine Loans | Maturity date of January 2024 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest | 10% | ||||||||||||||||||||
Chief executive officer | Bridge loan, six multifamily properties | Maturity date of 2019 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 48,000 | ||||||||||||||||||||
Base spread, percentage | 4.50% | ||||||||||||||||||||
Number of properties owned | property | 6 | ||||||||||||||||||||
Proceeds from repayment in full | $ 10,900 | $ 6,800 | |||||||||||||||||||
Number of bridge loans paid off | loan | 4 | 1 | |||||||||||||||||||
Proceeds from repayment of debt | $ 28,300 | ||||||||||||||||||||
Remaining bridge loan from repayment | $ 12,900 | ||||||||||||||||||||
Chief executive officer | Bridge loan, six multifamily properties | Maturity date of 2019 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 0.25% | ||||||||||||||||||||
Chief executive officer | Bridge loan, six multifamily properties | Maturity date of 2019 | Minimum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.50% | ||||||||||||||||||||
Chief executive officer | Bridge loan, six multifamily properties | Maturity date of 2019 | Maximum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 12% | ||||||||||||||||||||
Chief executive officer | Bridge loan, six multifamily properties | Maturity date of January 2024 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 100 | 100 | $ 100 | 100 | |||||||||||||||||
Immediate Family Member of Management or Principal Owner | LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Maturity date of March 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 10% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Maturity Date December 2023 | Preferred equity interest financing agreement | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 800 | $ 2,000 | 800 | ||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Preferred equity investments | Maturity Date December 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest | 12% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge loans | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 21.80% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge loans | Maturity Date December 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread, percentage | 5.50% | 5.50% | |||||||||||||||||||
Interest income | 300 | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge loans | Maturity Date December 2023 | SOFR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
SOFR floor, percentage | 0.75% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge loans | Maturity Date December 2023 | London Interbank Offered Rate (LIBOR) 1 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
SOFR floor, percentage | 0.75% | ||||||||||||||||||||
Director | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Number of Kaufman Entities | entity | 2 | 2 | |||||||||||||||||||
Director | Fannie Mae Mortgage | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 20% | ||||||||||||||||||||
Servicing revenue | $ 100 | $ 100 | $ 100 | $ 100 | |||||||||||||||||
Loan purchased a multifamily apartment complex which assumed | $ 8,300 | ||||||||||||||||||||
Percentage of ownership after transaction | 3.60% | ||||||||||||||||||||
Percentage of loan assumption fee | 1% | ||||||||||||||||||||
Director | Ginkgo Investment Company LLC | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of managing member | 33% |
Segment Information - Statement
Segment Information - Statements of Income (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) segment | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) segment | |
Segment Information | ||||
Interest income | $ 336,474 | $ 259,778 | $ 1,000,159 | $ 627,804 |
Interest expense | 229,180 | 160,452 | 675,749 | 350,079 |
Net interest income | 107,294 | 99,326 | 324,410 | 277,725 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 18,619 | 14,360 | 55,795 | 32,526 |
Mortgage servicing rights | 14,109 | 19,408 | 48,769 | 52,287 |
Servicing revenue | 51,363 | 37,526 | 144,296 | 109,045 |
Amortization of MSRs | (15,900) | (14,782) | (46,920) | (44,532) |
Property operating income | 1,450 | 445 | 4,261 | 1,031 |
Gain (loss) on derivative instruments, net | (421) | (15,909) | (3,582) | 10,083 |
Other income (loss), net | 173 | (6,014) | 5,099 | (16,061) |
Total other revenue | 69,393 | 35,034 | 207,718 | 144,379 |
Other expenses: | ||||
Employee compensation and benefits | 39,810 | 38,811 | 123,518 | 119,736 |
Selling and administrative | 12,367 | 13,225 | 38,574 | 40,960 |
Property operating expenses | 1,479 | 366 | 4,227 | 1,443 |
Depreciation and amortization | 2,286 | 2,078 | 7,297 | 6,092 |
Provision for loss sharing (net of recoveries) | 1,679 | 412 | 12,528 | (2,199) |
Provision for credit losses (net of recoveries) | 18,652 | 2,274 | 55,047 | 9,700 |
Total other expenses | 76,273 | 57,166 | 241,191 | 175,732 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 100,414 | 77,194 | 290,937 | 246,372 |
Loss on extinguishment of debt | (314) | (3,262) | (1,561) | (4,612) |
Income from equity affiliates | 809 | 4,748 | 20,694 | 18,507 |
(Provision for) benefit from income taxes | (5,854) | 374 | (19,436) | (13,166) |
Net income | 95,055 | 79,054 | 290,634 | 247,101 |
Preferred stock dividends | 10,342 | 10,342 | 31,027 | 30,612 |
Net income attributable to noncontrolling interest | 6,789 | 6,002 | 21,200 | 19,811 |
Net income attributable to common stockholders | $ 77,924 | $ 62,710 | $ 238,407 | $ 196,678 |
Reporting segments | segment | 2 | 2 | 2 | 2 |
Operating segments | Structured Business | ||||
Segment Information | ||||
Interest income | $ 322,819 | $ 249,539 | $ 962,301 | $ 597,847 |
Interest expense | 222,996 | 157,325 | 658,856 | 338,692 |
Net interest income | 99,823 | 92,214 | 303,445 | 259,155 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 0 | 0 | 0 | 0 |
Mortgage servicing rights | 0 | 0 | 0 | 0 |
Servicing revenue | 0 | 0 | 0 | 0 |
Amortization of MSRs | 0 | 0 | 0 | 0 |
Property operating income | 1,450 | 445 | 4,261 | 1,031 |
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 |
Other income (loss), net | 751 | 1,763 | 3,420 | (4,370) |
Total other revenue | 2,201 | 2,208 | 7,681 | (3,339) |
Other expenses: | ||||
Employee compensation and benefits | 12,912 | 13,342 | 41,991 | 42,694 |
Selling and administrative | 5,291 | 5,961 | 17,835 | 19,799 |
Property operating expenses | 1,479 | 366 | 4,227 | 1,443 |
Depreciation and amortization | 1,114 | 906 | 3,779 | 2,574 |
Provision for loss sharing (net of recoveries) | 0 | 0 | 0 | 0 |
Provision for credit losses (net of recoveries) | 17,243 | 2,206 | 52,257 | 9,363 |
Total other expenses | 38,039 | 22,781 | 120,089 | 75,873 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 63,985 | 71,641 | 191,037 | 179,943 |
Loss on extinguishment of debt | (314) | (3,262) | (1,561) | (4,612) |
Income from equity affiliates | 809 | 4,748 | 20,694 | 18,507 |
(Provision for) benefit from income taxes | 1,078 | 319 | 307 | (1,368) |
Net income | 65,558 | 73,446 | 210,477 | 192,470 |
Preferred stock dividends | 10,342 | 10,342 | 31,027 | 30,612 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 55,216 | 63,104 | 179,450 | 161,858 |
Operating segments | Agency Business | ||||
Segment Information | ||||
Interest income | 13,655 | 10,239 | 37,858 | 29,957 |
Interest expense | 6,184 | 3,127 | 16,893 | 11,387 |
Net interest income | 7,471 | 7,112 | 20,965 | 18,570 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 18,619 | 14,360 | 55,795 | 32,526 |
Mortgage servicing rights | 14,109 | 19,408 | 48,769 | 52,287 |
Servicing revenue | 51,363 | 37,526 | 144,296 | 109,045 |
Amortization of MSRs | (15,900) | (14,782) | (46,920) | (44,532) |
Property operating income | 0 | 0 | 0 | 0 |
Gain (loss) on derivative instruments, net | (421) | (15,909) | (3,582) | 10,083 |
Other income (loss), net | (578) | (7,777) | 1,679 | (11,691) |
Total other revenue | 67,192 | 32,826 | 200,037 | 147,718 |
Other expenses: | ||||
Employee compensation and benefits | 26,898 | 25,469 | 81,527 | 77,042 |
Selling and administrative | 7,076 | 7,264 | 20,739 | 21,161 |
Property operating expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 1,172 | 1,172 | 3,518 | 3,518 |
Provision for loss sharing (net of recoveries) | 1,679 | 412 | 12,528 | (2,199) |
Provision for credit losses (net of recoveries) | 1,409 | 68 | 2,790 | 337 |
Total other expenses | 38,234 | 34,385 | 121,102 | 99,859 |
Income before extinguishment of debt, income from equity affiliates and income taxes | 36,429 | 5,553 | 99,900 | 66,429 |
Loss on extinguishment of debt | 0 | 0 | 0 | 0 |
Income from equity affiliates | 0 | 0 | 0 | 0 |
(Provision for) benefit from income taxes | (6,932) | 55 | (19,743) | (11,798) |
Net income | 29,497 | 5,608 | 80,157 | 54,631 |
Preferred stock dividends | 0 | 0 | 0 | 0 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 29,497 | 5,608 | 80,157 | 54,631 |
Other/Eliminations | ||||
Other expenses: | ||||
Net income attributable to noncontrolling interest | 6,789 | 6,002 | 21,200 | 19,811 |
Net income attributable to common stockholders | $ (6,789) | $ (6,002) | $ (21,200) | $ (19,811) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||
Cash and cash equivalents | $ 895,298 | $ 534,357 | $ 389,651 | $ 404,580 |
Restricted cash | 419,158 | 713,808 | $ 922,531 | $ 486,690 |
Loans and investments, net | 12,892,796 | 14,254,674 | ||
Loans held-for-sale, net | 364,320 | 354,070 | ||
Capitalized mortgage servicing rights, net | 392,203 | 401,471 | ||
Securities held-to-maturity, net | 155,172 | 156,547 | ||
Investments in equity affiliates | 62,795 | 79,130 | ||
Goodwill and other intangible assets | 92,551 | 96,069 | ||
Other assets and due from related party | 628,396 | 448,859 | ||
Total assets | 15,902,689 | 17,038,985 | ||
Liabilities: | ||||
Debt obligations | 12,155,124 | 13,500,562 | ||
Allowance for loss-sharing obligations | 69,261 | 57,168 | ||
Other liabilities and due to related parties | 437,803 | 409,376 | ||
Total liabilities | 12,662,188 | 13,967,106 | ||
Structured Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 499,511 | 200,514 | ||
Restricted cash | 410,056 | 713,615 | ||
Loans and investments, net | 12,892,796 | 14,254,674 | ||
Loans held-for-sale, net | 0 | 0 | ||
Capitalized mortgage servicing rights, net | 0 | 0 | ||
Securities held-to-maturity, net | 0 | 0 | ||
Investments in equity affiliates | 62,795 | 79,130 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets and due from related party | 536,789 | 367,837 | ||
Total assets | 14,414,447 | 15,628,270 | ||
Liabilities: | ||||
Debt obligations | 11,800,537 | 13,195,120 | ||
Allowance for loss-sharing obligations | 0 | 0 | ||
Other liabilities and due to related parties | 323,061 | 299,559 | ||
Total liabilities | 12,123,598 | 13,494,679 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 395,787 | 333,843 | ||
Restricted cash | 9,102 | 193 | ||
Loans and investments, net | 0 | 0 | ||
Loans held-for-sale, net | 364,320 | 354,070 | ||
Capitalized mortgage servicing rights, net | 392,203 | 401,471 | ||
Securities held-to-maturity, net | 155,172 | 156,547 | ||
Investments in equity affiliates | 0 | 0 | ||
Goodwill and other intangible assets | 80,051 | 83,569 | ||
Other assets and due from related party | 91,607 | 81,022 | ||
Total assets | 1,488,242 | 1,410,715 | ||
Liabilities: | ||||
Debt obligations | 354,587 | 305,442 | ||
Allowance for loss-sharing obligations | 69,261 | 57,168 | ||
Other liabilities and due to related parties | 114,742 | 109,817 | ||
Total liabilities | $ 538,590 | $ 472,427 |
Segment Information - Originati
Segment Information - Origination Data (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | |
Segment Information | ||||
Origination Volumes | $ 1,211,347 | $ 1,464,235 | $ 3,844,769 | $ 3,623,649 |
Agency Business Loan Sales Data: | ||||
Gain (loss) on derivative instruments, net | (421) | (15,909) | (3,582) | 10,083 |
Structured Business | ||||
Segment Information | ||||
Total new loan originations | 240,158 | 774,665 | 717,186 | 5,651,119 |
Loan runoff | 664,792 | 911,790 | 2,536,661 | 2,700,748 |
Structured Business | Bridge loan | ||||
Segment Information | ||||
Total new loan originations | 232,379 | 756,695 | 702,062 | 5,625,010 |
Structured Business | Mezzanine loans | ||||
Segment Information | ||||
Total new loan originations | 7,779 | 17,970 | 15,124 | 26,109 |
Structured Business | Multifamily | Bridge loan | ||||
Segment Information | ||||
Total new loan originations | 92,000 | 592,844 | 376,630 | 5,172,770 |
Structured Business | SFR - Fixed Rate | Bridge loan | ||||
Segment Information | ||||
Total new loan originations | $ 140,379 | $ 163,851 | $ 325,432 | $ 452,240 |
Number of Loans Originated | loan | 42 | 52 | 92 | 268 |
SFR Commitments | $ 429,452 | $ 457,564 | $ 683,984 | $ 726,071 |
Agency Business | ||||
Segment Information | ||||
Origination Volumes | 1,149,849 | 1,111,321 | 3,664,149 | 3,219,014 |
Agency Business Loan Sales Data: | ||||
Loan Sales | $ 1,275,420 | $ 1,082,136 | $ 3,618,843 | $ 3,699,554 |
Sales margin (fee-based services as a % of loan sales) | 1.46% | 1.33% | 1.54% | 1.34% |
MSR rate (MSR income as a % of loan commitments) | 1.16% | 1.33% | 1.27% | 1.44% |
Agency Business | SFR - Fixed Rate | ||||
Segment Information | ||||
Origination Volumes | $ 2,030 | $ 16,678 | $ 19,328 | $ 55,883 |
Agency Business Loan Sales Data: | ||||
Loan Sales | 8,759 | 43,012 | 22,931 | 55,874 |
Agency Business | Fannie Mae | ||||
Segment Information | ||||
Origination Volumes | 721,398 | 629,610 | 2,596,329 | 1,744,739 |
Agency Business Loan Sales Data: | ||||
Loan Sales | 837,132 | 700,690 | 2,511,978 | 1,936,282 |
Agency Business | Freddie Mac | ||||
Segment Information | ||||
Origination Volumes | 339,241 | 350,980 | 658,457 | 1,057,743 |
Agency Business Loan Sales Data: | ||||
Loan Sales | 337,507 | 288,029 | 581,306 | 1,009,557 |
Agency Business | FHA | ||||
Segment Information | ||||
Origination Volumes | 19,215 | 78,382 | 230,707 | 168,736 |
Agency Business Loan Sales Data: | ||||
Loan Sales | 24,057 | 35,838 | 201,915 | 182,755 |
Agency Business | Private Label | ||||
Segment Information | ||||
Origination Volumes | 67,965 | 35,671 | 159,328 | 191,913 |
Agency Business Loan Sales Data: | ||||
Loan Sales | $ 67,965 | $ 14,567 | $ 300,713 | 515,086 |
Gain (loss) on derivative instruments, net | $ 17,100 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Segment Information | ||
Servicing Portfolio UPB | $ 29,936,707 | $ 27,998,029 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.397% | 0.411% |
Wtd. Avg. Life of Servicing Portfolio (years) | 8 years 3 months 18 days | 8 years 7 months 6 days |
SFR - Fixed Rate | ||
Segment Information | ||
Servicing Portfolio UPB | $ 287,942 | $ 274,764 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.201% | 0.198% |
Wtd. Avg. Life of Servicing Portfolio (years) | 5 years 9 months 18 days | 6 years |
Fannie Mae | ||
Segment Information | ||
Servicing Portfolio UPB | $ 20,463,620 | $ 19,038,124 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.483% | 0.502% |
Wtd. Avg. Life of Servicing Portfolio (years) | 7 years 8 months 12 days | 8 years |
Freddie Mac | ||
Segment Information | ||
Servicing Portfolio UPB | $ 5,184,888 | $ 5,153,207 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.242% | 0.25% |
Wtd. Avg. Life of Servicing Portfolio (years) | 8 years 6 months | 9 years |
Private Label | ||
Segment Information | ||
Servicing Portfolio UPB | $ 2,371,475 | $ 2,074,859 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.192% | 0.185% |
Wtd. Avg. Life of Servicing Portfolio (years) | 7 years 3 months 18 days | 7 years 7 months 6 days |
FHA | ||
Segment Information | ||
Servicing Portfolio UPB | $ 1,322,832 | $ 1,155,893 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.145% | 0.149% |
Wtd. Avg. Life of Servicing Portfolio (years) | 19 years 10 months 24 days | 19 years 6 months |
Bridge loan | ||
Segment Information | ||
Servicing Portfolio UPB | $ 305,950 | $ 301,182 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.112% | 0.125% |
Wtd. Avg. Life of Servicing Portfolio (years) | 3 years 7 months 6 days | 1 year 8 months 12 days |