Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32136 | ||
Entity Registrant Name | Arbor Realty Trust, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-0057959 | ||
Entity Address, Address Line One | 333 Earle Ovington Boulevard | ||
Entity Address, Address Line Two | Suite 900 | ||
Entity Address, City or Town | Uniondale | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11553 | ||
City Area Code | 516 | ||
Local Phone Number | 506-4200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,620 | ||
Entity Common Stock, Shares Outstanding | 188,505,264 | ||
Entity Central Index Key | 0001253986 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Document and Entity Information | |||
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 | |||
Document and Entity Information | |||
Title of 12(b) Security | Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PD | ||
Security Exchange Name | NYSE | ||
Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share | |||
Document and Entity Information | |||
Title of 12(b) Security | Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PE | ||
Security Exchange Name | NYSE | ||
Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | |||
Document and Entity Information | |||
Title of 12(b) Security | Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | ||
Trading Symbol | ABR-PF | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets: | |||
Cash and cash equivalents | $ 928,974 | $ 534,357 | |
Restricted cash | 608,233 | 713,808 | |
Loans and investments, net (allowance for credit losses of $195,664 and $132,559) | 12,377,806 | 14,254,674 | |
Loans held-for-sale, net | 551,707 | 354,070 | |
Capitalized mortgage servicing rights, net | 391,254 | 401,471 | |
Securities held-to-maturity, net (allowance for credit losses of $6,256 and $3,153) | 155,279 | 156,547 | |
Investments in equity affiliates | 79,303 | 79,130 | |
Due from related party | 64,421 | 77,419 | |
Goodwill and other intangible assets | 91,378 | 96,069 | |
Other assets | 490,281 | 371,440 | |
Total assets | [1] | 15,738,636 | 17,038,985 |
Liabilities and Equity: | |||
Credit and repurchase facilities | 3,237,827 | 3,841,814 | |
Securitized debt | 6,935,010 | 7,849,270 | |
Senior unsecured notes | 1,333,968 | 1,385,994 | |
Convertible senior unsecured notes, net | 283,118 | 280,356 | |
Junior subordinated notes to subsidiary trust issuing preferred securities | 143,896 | 143,128 | |
Due to related party | 13,799 | 12,350 | |
Due to borrowers | 121,707 | 61,237 | |
Allowance for loss-sharing obligations | 71,634 | 57,168 | |
Other liabilities | 343,072 | 335,789 | |
Total liabilities | [1] | 12,484,031 | 13,967,106 |
Commitments and contingencies (Note 14) | |||
Arbor Realty Trust, Inc. stockholders’ equity: | |||
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: Special voting preferred shares - 16,293,589 and 16,325,095 shares, 6.375% Series D - 9,200,000 shares, 6.25% Series E - 5,750,000 shares, 6.25% Series F - 11,342,000 and 8,050,000 shares | 633,684 | 633,684 | |
Common stock, $0.01 par value: 500,000,000 shares authorized - 188,505,264 and 178,230,522 shares issued and outstanding | 1,885 | 1,782 | |
Additional paid-in capital | 2,367,188 | 2,204,481 | |
Retained earnings | 115,216 | 97,049 | |
Total Arbor Realty Trust, Inc. stockholders’ equity | 3,117,973 | 2,936,996 | |
Noncontrolling interest | 136,632 | 134,883 | |
Total equity | 3,254,605 | 3,071,879 | |
Total liabilities and equity | $ 15,738,636 | $ 17,038,985 | |
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. At December 31, 2023 and 2022, assets of our consolidated VIEs totaled $8,614,571 and $9,785,261, respectively, and the liabilities of our consolidated VIEs totaled $6,967,876 and $7,876,024, respectively. See Note 15 for discussion of our VIEs. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Allowance for credit losses | $ 195,664 | $ 132,559 | |
Securities held-to-maturity, allowance for credit losses | $ 6,256 | $ 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) | 188,505,264 | 178,230,522 | |
Common stock, shares outstanding (in shares) | 188,505,264 | 178,230,522 | |
Assets of consolidated VIEs | [1] | $ 15,738,636 | $ 17,038,985 |
Liabilities of consolidated VIEs | [1] | 12,484,031 | 13,967,106 |
Consolidated VIEs | |||
Assets of consolidated VIEs | 8,614,571 | 9,785,261 | |
Liabilities of consolidated VIEs | $ 6,967,876 | $ 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% | |
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. At December 31, 2023 and 2022, assets of our consolidated VIEs totaled $8,614,571 and $9,785,261, respectively, and the liabilities of our consolidated VIEs totaled $6,967,876 and $7,876,024, respectively. See Note 15 for discussion of our VIEs. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Interest income | $ 1,331,219 | $ 948,401 | $ 466,087 |
Interest expense | 903,228 | 557,617 | 212,005 |
Net interest income | 427,991 | 390,784 | 254,082 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 72,522 | 55,816 | 123,037 |
Mortgage servicing rights | 69,912 | 69,346 | 130,230 |
Servicing revenue, net | 130,449 | 92,192 | 74,814 |
Property operating income | 5,708 | 1,877 | 185 |
Gain (loss) on derivative instruments, net | 6,763 | 26,609 | (2,684) |
Other income (loss), net | 7,667 | (17,563) | 7,566 |
Total other revenue | 293,021 | 228,277 | 333,148 |
Other expenses: | |||
Employee compensation and benefits | 159,788 | 161,825 | 171,796 |
Selling and administrative | 51,260 | 53,990 | 45,575 |
Property operating expenses | 5,897 | 2,136 | 718 |
Depreciation and amortization | 9,743 | 8,732 | 7,215 |
Provision for loss sharing (net of recoveries) | 15,695 | 1,862 | (6,167) |
Provision for credit losses (net of recoveries) | 73,446 | 21,169 | (21,113) |
Litigation settlement | 0 | 7,350 | 0 |
Total other expenses | 315,829 | 257,064 | 198,024 |
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 405,183 | 361,997 | 389,206 |
Loss on extinguishment of debt | (1,561) | (4,933) | (3,374) |
Gain on sale of real estate | 0 | 0 | 3,693 |
Income from equity affiliates | 24,281 | 14,247 | 34,567 |
Provision for income taxes | (27,347) | (17,484) | (46,285) |
Net income | 400,556 | 353,827 | 377,807 |
Preferred stock dividends | 41,369 | 40,954 | 21,888 |
Net income attributable to noncontrolling interest | 29,122 | 28,044 | 38,507 |
Net income attributable to common stockholders | $ 330,065 | $ 284,829 | $ 317,412 |
Earnings per common share | |||
Basic earnings per common share (in dollars per share) | $ 1.79 | $ 1.72 | $ 2.30 |
Diluted earnings per common share (in dollars per share) | $ 1.75 | $ 1.67 | $ 2.28 |
Weighted average shares outstanding: | |||
Basic (in shares) | 184,641,642 | 165,355,167 | 137,830,691 |
Diluted (in shares) | 218,843,613 | 199,112,630 | 156,089,595 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect adjustment | [1] | Balance as adjusted for the adoption of ASU 2020-06 | Series D preferred stock | Series E preferred stock | Series F preferred stock | Preferred Stock | Preferred Stock Balance as adjusted for the adoption of ASU 2020-06 | Preferred Stock Series D preferred stock | Preferred Stock Series E preferred stock | Preferred Stock Series F preferred stock | Common Stock | Common Stock Balance as adjusted for the adoption of ASU 2020-06 | Additional Paid‑in Capital | Additional Paid‑in Capital Cumulative-effect adjustment | [1] | Additional Paid‑in Capital Balance as adjusted for the adoption of ASU 2020-06 | (Accumulated Deficit) / Retained Earnings | (Accumulated Deficit) / Retained Earnings Cumulative-effect adjustment | [1] | (Accumulated Deficit) / Retained Earnings Balance as adjusted for the adoption of ASU 2020-06 | Total Arbor Realty Trust, Inc. Stockholders’ Equity | Total Arbor Realty Trust, Inc. Stockholders’ Equity Cumulative-effect adjustment | [1] | Total Arbor Realty Trust, Inc. Stockholders’ Equity Balance as adjusted for the adoption of ASU 2020-06 | Total Arbor Realty Trust, Inc. Stockholders’ Equity Series D preferred stock | Total Arbor Realty Trust, Inc. Stockholders’ Equity Series E preferred stock | Total Arbor Realty Trust, Inc. Stockholders’ Equity Series F preferred stock | Noncontrolling Interest | Noncontrolling Interest Cumulative-effect adjustment | [1] | Noncontrolling Interest Balance as adjusted for the adoption of ASU 2020-06 |
Beginning balance (in shares) at Dec. 31, 2020 | 21,272,133 | 123,181,173 | |||||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,482,685 | $ 89,472 | $ 1,232 | $ 1,317,109 | $ (63,442) | $ 1,344,371 | $ 138,314 | ||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||||||||
Issuance of stock (in shares) | 9,200,000 | 5,750,000 | 8,050,000 | 29,140,369 | |||||||||||||||||||||||||||||
Issuance of stock | 514,593 | $ 222,438 | $ 138,886 | $ 194,675 | $ 222,438 | $ 138,886 | $ 194,675 | $ 291 | 514,302 | 514,593 | $ 222,438 | $ 138,886 | $ 194,675 | ||||||||||||||||||||
Repurchase - common stock (in shares) | (1,962,499) | ||||||||||||||||||||||||||||||||
Repurchase - common stock | (34,404) | $ (19) | (34,385) | (34,404) | |||||||||||||||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 386,459 | ||||||||||||||||||||||||||||||||
Issuance - common stock from convertible debt | 0 | $ 4 | (4) | ||||||||||||||||||||||||||||||
Redemption - preferred stock (in shares) | (3,711,500) | ||||||||||||||||||||||||||||||||
Redemption - preferred stock | (92,789) | $ (89,296) | (3,493) | (92,789) | |||||||||||||||||||||||||||||
Stock-based compensation, net (in shares) | 616,679 | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 897 | $ 6 | 891 | 897 | |||||||||||||||||||||||||||||
Distributions - common stock | (191,423) | (191,423) | (191,423) | ||||||||||||||||||||||||||||||
Distributions - preferred stock | (18,410) | (18,410) | (18,410) | ||||||||||||||||||||||||||||||
Distributions - noncontrolling interest | (23,366) | (23,366) | |||||||||||||||||||||||||||||||
Redemption - OP units (in shares) | (1,235,538) | ||||||||||||||||||||||||||||||||
Redemption - OP Units | (21,605) | $ (12) | (12) | (21,593) | |||||||||||||||||||||||||||||
Net income | 377,807 | 339,300 | 339,300 | 38,507 | |||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 39,325,095 | 39,325,095 | 151,362,181 | 151,362,181 | |||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | 2,549,984 | $ (2,447) | $ 2,547,537 | $ 556,163 | $ 556,163 | $ 1,514 | $ 1,514 | 1,797,913 | $ (8,684) | $ 1,789,229 | 62,532 | $ 5,612 | $ 68,144 | 2,418,122 | $ (3,072) | $ 2,415,050 | 131,862 | $ 625 | $ 132,487 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||||||||
Issuance of stock (in shares) | 3,292,000 | 26,335,788 | |||||||||||||||||||||||||||||||
Issuance of stock | 408,735 | $ 77,522 | $ 77,522 | $ 263 | 408,472 | 408,735 | $ 77,522 | ||||||||||||||||||||||||||
Stock-based compensation, net (in shares) | 532,553 | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 6,785 | $ 5 | 6,780 | 6,785 | |||||||||||||||||||||||||||||
Distributions - common stock | (255,913) | (255,913) | (255,913) | ||||||||||||||||||||||||||||||
Distributions - preferred stock | (40,965) | (40,965) | (40,965) | ||||||||||||||||||||||||||||||
Distributions - noncontrolling interest | (25,103) | (25,103) | |||||||||||||||||||||||||||||||
Redemption - OP units (in shares) | (31,506) | ||||||||||||||||||||||||||||||||
Redemption - OP Units | (546) | $ (1) | (1) | (545) | |||||||||||||||||||||||||||||
Net income | 353,827 | 325,783 | 325,783 | 28,044 | |||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 42,585,589 | 178,230,522 | |||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2022 | 3,071,879 | $ 633,684 | $ 1,782 | 2,204,481 | 97,049 | 2,936,996 | 134,883 | ||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||||||||
Issuance of stock (in shares) | 13,113,296 | ||||||||||||||||||||||||||||||||
Issuance of stock | 193,661 | $ 131 | 193,530 | 193,661 | |||||||||||||||||||||||||||||
Repurchase - common stock (in shares) | (3,545,604) | ||||||||||||||||||||||||||||||||
Repurchase - common stock | (37,431) | $ (35) | (37,396) | (37,431) | |||||||||||||||||||||||||||||
Stock-based compensation, net (in shares) | 707,050 | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | 6,580 | $ 7 | 6,573 | 6,580 | |||||||||||||||||||||||||||||
Distributions - common stock | (311,884) | (311,884) | (311,884) | ||||||||||||||||||||||||||||||
Distributions - preferred stock | (41,383) | (41,383) | (41,383) | ||||||||||||||||||||||||||||||
Distributions - noncontrolling interest | (27,373) | (27,373) | |||||||||||||||||||||||||||||||
Net income | 400,556 | 371,434 | 371,434 | 29,122 | |||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 42,585,589 | 188,505,264 | |||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2023 | $ 3,254,605 | $ 633,684 | $ 1,885 | $ 2,367,188 | $ 115,216 | $ 3,117,973 | $ 136,632 | ||||||||||||||||||||||||||
[1]In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to additional paid-in capital and a $5.6 million increase to retained earnings at January 1, 2022. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2022 | Aug. 31, 2020 |
Cumulative-effect adjustment | ||
Aggregate decrease to additional paid-in capital | $ (8,700) | |
Cumulative-effect adjustment | ASU 2020-06 | ||
Increase in convertible debt | $ 2,500 | |
Retained earnings | $ 5,600 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | |||
Net income | $ 400,556 | $ 353,827 | $ 377,807 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 9,743 | 8,732 | 7,215 |
Stock-based compensation | 14,940 | 14,973 | 9,929 |
Amortization and accretion of interest and fees, net | (3,612) | (13,547) | (2,487) |
Amortization of capitalized mortgage servicing rights | 63,093 | 59,876 | 58,615 |
Originations of loans held-for-sale | (5,074,445) | (4,788,202) | (6,461,023) |
Proceeds from sales of loans held-for-sale, net of gain on sale | 4,878,021 | 5,438,623 | 6,415,169 |
Mortgage servicing rights | (69,912) | (69,346) | (130,230) |
Write-off of capitalized mortgage servicing rights from payoffs | 14,736 | 44,502 | 32,741 |
Provision for loss sharing (net of recoveries) | 15,695 | 1,862 | (6,167) |
Provision for credit losses (net of recoveries) | 73,446 | 21,169 | (21,113) |
Net (charge-offs) recoveries for loss sharing obligations | (1,229) | (758) | (2,072) |
Deferred tax (benefit) provision | (7,349) | (1,741) | 10,892 |
Income from equity affiliates | (24,281) | (14,247) | (34,567) |
Distributions from operations of equity affiliates | 27,542 | 16,594 | 32,953 |
Loss on extinguishment of debt | 1,561 | 4,933 | 3,374 |
Payoffs and paydowns of loans held-for-sale | 987 | 58,751 | 2,425 |
Change in fair value of held-for-sale loans | (2,536) | 15,703 | 0 |
(Gain) loss on derivative instruments, net | (6,763) | (26,609) | 2,684 |
Loss on sale of loans | 0 | 11,180 | 0 |
Litigation settlement | 0 | 7,350 | 0 |
Gain on sale of real estate | 0 | 0 | (3,693) |
Changes in operating assets and liabilities | (74,336) | (43,976) | (75,605) |
Net cash provided by operating activities | 235,857 | 1,099,649 | 216,847 |
Investing Activities: | |||
Loans and investments funded, originated and purchased, net | (1,362,171) | (5,955,061) | (9,209,475) |
Payoffs and paydowns of loans and investments | 3,359,810 | 3,423,498 | 2,370,570 |
Deferred fees | 21,299 | 57,098 | 72,182 |
Contributions to equity affiliates | (18,986) | (17,809) | (48,071) |
Distributions from equity affiliates | 15,552 | 26,008 | 34,283 |
Payoffs and paydowns of securities held-to-maturity | 4,626 | 19,030 | 13,317 |
Due to borrowers and reserves | (141,152) | (239,626) | (57,249) |
Proceeds from sale of loans and investments | 0 | 397,338 | 127,700 |
Purchase of securities held-to-maturity, net | 0 | (27,598) | (53,511) |
Net cash provided by (used in) investing activities | 1,878,978 | (2,317,122) | (6,750,254) |
Financing activities: | |||
Proceeds from credit and repurchase facilities | 9,148,451 | 11,536,220 | 15,688,353 |
Payoffs and paydowns of credit and repurchase facilities | (9,747,252) | (12,153,215) | (13,433,376) |
Proceeds from issuance of securitized debt | 0 | 2,762,502 | 4,281,512 |
Payoffs and paydowns of securitized debt | (929,782) | (801,141) | (889,150) |
Proceeds from issuance of common stock | 193,661 | 408,735 | 514,593 |
Proceeds from issuance of preferred stock | 0 | 77,522 | 555,999 |
Proceeds from issuance of senior unsecured notes | 95,000 | 437,500 | 625,000 |
Payoffs and paydowns of senior unsecured notes | (149,600) | (312,920) | 0 |
Redemption of OP Units | 0 | (546) | (21,605) |
Payments of withholding taxes on net settlement of vested stock | (8,360) | (8,188) | (9,032) |
Repurchase of common stock | (37,431) | 0 | (34,404) |
Distributions to stockholders and non-controlling interest | (380,640) | (321,739) | (227,062) |
Payment of deferred financing costs | (9,840) | (50,362) | (56,060) |
Redemption of preferred stock | 0 | 0 | (92,789) |
Extinguishment of convertible senior unsecured notes | 0 | 0 | (14,300) |
Net cash (used in) provided by financing activities | (1,825,793) | 1,574,368 | 6,887,679 |
Net increase in cash, cash equivalents and restricted cash | 289,042 | 356,895 | 354,272 |
Cash, cash equivalents and restricted cash at beginning of period | 1,248,165 | 891,270 | 536,998 |
Cash, cash equivalents and restricted cash at end of period | 1,537,207 | 1,248,165 | 891,270 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents at beginning of period | 534,357 | 404,580 | 339,528 |
Restricted cash at beginning of period | 713,808 | 486,690 | 197,470 |
Cash, cash equivalents and restricted cash at beginning of period | 1,248,165 | 891,270 | 536,998 |
Cash and cash equivalents at end of period | 928,974 | 534,357 | 404,580 |
Restricted cash at end of period | 608,233 | 713,808 | 486,690 |
Cash, cash equivalents and restricted cash at end of period | 1,537,207 | 1,248,165 | 891,270 |
Supplemental cash flow information: | |||
Cash used to pay interest | 861,141 | 486,826 | 175,912 |
Cash used to pay taxes | 30,129 | 27,560 | 37,797 |
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 7,010 | 7,010 | 6,767 |
Investment in real estate, net | 39,400 | 31,200 | 0 |
Cumulative - effect adjustment (adoption of convertible debt standard) | 0 | 2,447 | 0 |
Loans transferred from loans and investment, net to loans held-for-sale | $ 0 | $ 0 | $ 65,144 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Arbor is a Maryland corporation formed in 2003. We are a nationwide REIT and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Business and our Agency Business. Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, 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 Fannie Mae and Freddie Mac, Ginnie Mae, FHA and HUD. We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae DUS lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer, in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and SBL lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and retain the servicing rights on permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans and originate and sell finance products through CMBS programs. We either sell the Private Label loans instantaneously or pool and securitize them and sell certificates in the securitizations to third party investors, while retaining the highest risk bottom tranche certificate of the securitization. Substantially all of our operations are conducted through our operating partnership, ARLP, for which we serve as the indirect general partner, and ARLP’s subsidiaries. We are organized to qualify as a REIT for U.S. federal income tax purposes. 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 TRS entities, which are part of our TRS Consolidated Group and are subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 and accompanying notes have been prepared in accordance with GAAP. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The COVID-19 pandemic caused significant disruptions to the U.S. and global economies. Although vaccine availability and its usage have led to less negative short-term effects, such as travel bans, quarantines, layoffs and shutdowns, the ongoing longer-term macroeconomic effects on inflation, interest rates, capital markets, labor shortages, property values and global supply chains continue to negatively impact many industries, including the U.S. commercial real estate market. In addition, new strains of COVID-19 continue to emerge, which may cause governments and businesses to re-impose aggressive measures to help slow its spread, making the future impact difficult to predict. The ultimate impact of COVID-19 on the economy, including rising inflation, increasing interest rates, tightening of capital markets and reduced property values, both globally and to our business, makes any estimate or assumption at December 31, 2023 inherently less certain. Significant Accounting Policies Cash and Cash Equivalents . All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. We place our cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed FDIC insurance coverage limits and we believe that this risk is not significant. Loans, Investments and Securities. Loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for credit losses. We invest in preferred equity interests that, in some cases, allow us to participate in a percentage of the underlying property’s cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, we determine whether such investment should be accounted for as a loan, equity interest or as real estate. To date, we have determined that all such investments are properly accounted for and reported as loans. At the time of purchase, we designate a debt security as available-for-sale, held-to-maturity, or trading depending on our ability and intent for the security. Securities available-for-sale, which is included as a component of other assets in the consolidated balance sheets, is reported at fair value with the fluctuations in fair value recognized through earnings. Held-to-maturity securities are carried at cost net of any unamortized premiums or discounts, which are amortized or accreted over the life of the securities. For securities classified as held-to-maturity, an evaluation is performed as to whether a decline in fair value below the amortized cost basis is other-than-temporary. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The process includes, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as our ability and intent to hold the investment to maturity. We closely monitor market conditions on which we base such decisions. Allowance for Credit Losses. We estimate allowances for credit losses on our structured loans and investments (including unfunded loan commitments), loss-sharing obligations related to the Fannie Mae DUS program and our held-to-maturity debt securities under CECL based on current expected credit losses for the life of the loan and investment. Our estimation of credit losses utilizes information obtained from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts about the future. We have licensed a third party model to assist with the measurement of expected credit losses, which utilizes incurred losses inherent in the portfolio. The loss factors are determined through the generation of probability of defaults and loss given defaults for similar loans with similar credit. These results require a significant amount of judgment applied in selecting inputs and analyzing the results produced by the models to determine the allowance for credit losses. Changes in such estimates can significantly affect our expected credit losses. Our method for calculating the estimate of expected credit loss considers historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may adjust historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including, but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight-line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e., refinance, sale, loan modification, bankruptcy) which allows us to determine the amount of the expected loss more accurately and reasonably for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications, and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we evaluate whether that loan is impaired. We consider the capitalization and market discount rates, as well as the borrower’s operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We may also obtain a third party appraisal, which may value the collateral through an “as-is” or “stabilized value” methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If, upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses and remove the impaired loan from the CECL analysis described above. If a loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. We record a loss on a restructured loan when we grant a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of income in the period in which the loan was sold. Loans Held-for-Sale, Net. Loans held-for-sale, net represents our Agency Business commercial real estate loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as our Private Label loans, which are either sold instantaneously or pooled and securitized, or sold, within 180 days of loan origination. Such loans are reported at the lower of cost or market on an aggregate basis and include the value allocated to the associated future MSRs. During the period prior to its sale, interest income on a loan held-for-sale is calculated in accordance with the terms of the individual loan and the loan origination fees and direct loan origination costs are deferred until the loan is sold. All of our held-for-sale loans are financed with matched borrowings from credit facilities contracted to finance such loans. Interest income and expense are earned or incurred after a loan is closed and before a loan is sold. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated, put presumptively beyond the reach of the entity, even in bankruptcy, (2) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and the entity is constrained from pledging or exchanging the assets it receives, each third party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (3) we or our agents do not maintain effective control over the transferred financial assets or third party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. We have determined that all loans sold have met these specific conditions and account for all transfers of mortgage loans as completed sales. Allowance for Loss-Sharing Obligations. When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. Generally, we are responsible for losses equal to the first 5% of the UPB and a portion of any additional losses to an overall maximum of 20% of the original principal balance. Fannie Mae bears any remaining loss. In addition, under the terms of the master loss-sharing agreement with Fannie Mae, we are responsible for funding 100% of mortgage delinquencies (principal and interest) and servicing advances (taxes, insurance and foreclosure costs) until the amounts advanced exceed 5% of the UPB at the date of default. Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25% of such advances until final settlement. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. In determining the fair value of the guaranty obligation, we consider the risk profile of the collateral and the historical loss experience in our portfolio. The guaranty obligation is removed only upon either the expiration or settlement of the guaranty. We evaluate the allowance for loss-sharing obligations by monitoring the performance of each loss-sharing loan for events or conditions that may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated allowance for loss-sharing (a “specific reserve”) by transferring the guarantee obligation recorded on the loan to the specific reserve with any adjustments to this reserve amount recorded in provision for loss sharing in the statements of income. The amount of the allowance considers our assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan’s risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the specific reserves and update loss estimates as current information is received. Capitalized Mortgage Servicing Rights. We recognize, as separate assets, rights to service mortgage loans for others, including such rights from our origination of mortgage loans sold with the servicing rights retained, as well as rights associated with acquired MSRs. Income from MSRs related to loans we originate are recognized when we record a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value based on the discounted expected net cash flows associated with the servicing of the loan. When a mortgage loan we originate is sold, we retain the right to service the loan and recognize the MSR at the initial capitalized valuation. We amortize our MSRs using the amortization method, which requires the MSRs to be amortized over the period of estimated net servicing income or loss and that the servicing assets or liabilities be assessed for impairment, or increased obligation, based on the fair value at each reporting date. Amortization of MSRs is recorded as a reduction of servicing revenues, net in the consolidated statements of income. The following assumptions were used in calculating the fair value of our MSRs for the periods presented: Key rates: We used discount rates ranging from 9% to 13%, representing a weighted average discount rate of 12%, based on our best estimate of market discount rates to determine the present value of MSRs. Servicing Cost: A market participant’s estimated future cost to service the loan for the estimated life of the MSR is subtracted from the estimated future cash flows. Estimated Life: We estimate the life of our MSRs based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and are reduced using prepayment rates that consider the note rate of the loan and the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MRSs from loans we originate and sell are estimated considering market prices for similar MSRs, when available, and by estimating the present value of the future net cash flows of the capitalized MSRs, net of adequate compensation for servicing. Adequate compensation is based on the market rate of similar servicing contracts. The fair value of MSRs acquired approximate the purchase price paid. We evaluate the MSR portfolio for impairment on a quarterly basis based on the difference between the aggregate carrying amount of the MSRs and their aggregate fair value. We engage an independent third party valuation expert to assist in determining an estimated fair value of our MSR portfolio on a quarterly basis. For purposes of impairment evaluation, the MSRs are stratified based on predominant risk characteristics of the underlying loans, which we have identified as loan type, note rate and yield maintenance provisions. To the extent that the carrying value of the MSRs exceeds fair value, a valuation allowance is established. We record write-offs of MSRs related to loans that were repaid prior to their expected maturity and loans that have defaulted and determined to be unrecoverable. When this occurs, the write-off is recorded as a direct write-down to the carrying value of MSRs and is included as a component of servicing revenue, net in the consolidated statements of income. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries. For loans that payoff prior to maturity, we may collect a prepayment fee which is included as a component of servicing revenue, net. Investments in Equity Affiliates. We invest in joint ventures that are formed to invest in real estate-related assets or businesses. These joint ventures are not majority owned or controlled by us or are VIEs for which we are not the primary beneficiary, and are not consolidated in our financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. We recognize an impairment loss if the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other-than-temporary. We record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income. Goodwill and Other Intangible Assets. Significant judgement is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as broker and borrower relationships and below market rent have been deemed to have finite lives. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired product lines, scarcity of available GSE licenses, retention trends and our operating plans, among other factors. Goodwill and indefinite-lived intangible assets are not amortized, while finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis. Indefinite-lived intangible assets, including goodwill, are tested for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. In addition, with respect to goodwill, an impairment analysis is performed at least annually. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step goodwill impairment test is performed. Based on the impairment analysis performed as of October 1, 2023, there were no indicators that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2023. Real Estate Owned and Held-For-Sale. Real estate acquired is recorded at its estimated fair value, less costs to sell, at acquisition and is shown net of accumulated depreciation and impairment charges. Costs incurred in connection with the acquisition of a property are capitalized. Real estate acquired is recorded in other assets on our consolidated balance sheets. We allocate the purchase price of our real estate acquisitions to land, building, tenant improvements, origination asset of the in-place leases, intangibles for the value of any above or below market leases at fair value and to any other identified intangible assets or liabilities. We amortize the value allocated to in-place leases over the remaining lease term, which is reported in depreciation and amortization expense on our consolidated statements of income. The value allocated to above or below market leases are amortized over the remaining lease term as an adjustment to rental income. Real estate assets are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. Our properties are reviewed for impairment each quarter if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. We recognize impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset’s estimated fair value. In evaluating for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business. Impairment charges may be necessary in the event discount rates, capitalization rates, lease-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. Real estate is classified as held-for-sale when we commit to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Real estate assets that are expected to be disposed of are valued at the lower of the asset’s carrying amount or its fair value less costs to sell. We recognize sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. A gain or loss on real estate sold is recognized when the collectability of the sale price is reasonably assured, we are not obligated to perform significant activities after the sale and when control of the asset transfers to the buyer. A gain may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. Hedging Activities and Derivatives . We measure derivative instruments at fair value and record them as assets or liabilities. Fair value adjustments will affect either accumulated other comprehensive income until the hedged item is recognized in earnings, or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use derivatives for hedging purposes rather than trading or speculation. Fair values are estimated based on current market data from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. These derivative instruments must be effective in reducing risk exposure to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in earnings. In cases where a derivative instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. We may also enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply, or we elect not to apply hedge accounting. The ineffective portion of a derivative’s change in fair value is recognized immediately in earnings. In connection with our interest rate risk management, we may hedge a portion of our interest rate risk by entering into derivative instrument contracts to manage differences in the amount, timing, and duration of our expected cash receipts and our expected cash payments principally related to our investments and borrowings. Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we have used, and may again in the future, use treasury futures and interest rate and credit default swaps as part of our interest rate risk management strategy. Instruments designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our rate lock and forward sales commitments associated with the Agency Business meet the definition of a derivative and are recorded at fair value. The estimated fair value of rate lock commitments includes the effects of interest rate movements as well as the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Our treasury futures associated with (1) our held-for-sale Agency Business Private Label loans, and (2) our Structured Business SFR loans, do not meet the criteria for hedge accounting and are tied to the five-year and ten-year treasury rates. Our treasury futures are cleared by a central clearing house and variation margin payments (made in cash) are treated as a legal settlement of the derivative itself, as opposed to a pledge of collateral. Realized and unrealized gains and losses related to our treasury futures are recorded through earnings. Revenue Recognition. Interest income is recognized on the accrual basis as it is earned. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or “interest” method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in our opinion, a full recovery of all contractual principal and/or interest is not probable. Income recognition is resumed when the loan becomes contractually current, and performance is resumed. We record interest income on certain impaired loans to the extent cash is received, as the borrower continues to make interest payments. We record loan loss reserves related to these loans when it is deemed that full recovery of principal and accrued interest is not probable. Several of our loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to our determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If we cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. Given the transitional nature of some of our real estate l |
Loans and Investments
Loans and Investments | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Investments | |
Loans and Investments | Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): December 31, 2023 Percent of Loan Wtd. Avg. Wtd. Avg. Wtd. Avg. Wtd. Avg. Bridge loans (5) $ 12,273,244 97 % 679 8.45 % 12.0 0 % 78 % Mezzanine loans 248,457 2 % 49 8.41 % 56.6 48 % 80 % Preferred equity investments 85,741 1 % 17 3.95 % 60.3 53 % 82 % SFR permanent loans 7,564 <1% 2 9.84 % 13.9 0 % 56 % 12,615,006 100 % 747 8.42 % 13.2 1 % 78 % Allowance for credit losses (195,664) Unearned revenue (41,536) Loans and investments, net $ 12,377,806 December 31, 2022 Bridge loans (5) $ 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 % SFR permanent loans 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 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) Including extension options, the weighted average remaining months to maturity at December 31, 2023 and 2022 was 29.4 and 37.9, respectively. (3) 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. (4) 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. (5) At December 31, 2023 and 2022, bridge loans included 354 and 241, respectively, of SFR loans with a total gross loan commitment of $2.51 billion and $1.57 billion, respectively, of which $1.32 billion and $927.4 million, respectively, was funded. Concentration of Credit Risk We are subject to concentration risk in that, at December 31, 2023, the UPB related to 31 loans with five different borrowers represented 11% of total assets. At December 31, 2022, the UPB related to 38 loans with five different borrowers represented 11% of total assets. During both 2023 and 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 18 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality. Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the loan agreement. A risk rating of substandard indicates we anticipate the loan may require a modification of some kind. A risk rating of doubtful indicates we expect the loan to underperform over its term, and there could be loss of interest and/or principal. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, market strength or asset quality may result in a rating that is higher or lower than might be indicated by any risk rating matrix. A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2023, and charge-offs recorded during 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 $ 80,814 $ 53,316 $ 26,185 $ 2,010 $ 4,598 $ 20,300 $ 187,223 Pass/Watch 317,358 2,561,938 2,223,155 119,860 84,600 58,044 5,364,955 Special Mention 24,424 1,762,539 2,631,689 180,750 140,685 350 4,740,437 Substandard — 435,878 322,987 8,006 — — 766,871 Doubtful — — 13,930 14,800 9,765 — 38,495 Total Multifamily $ 422,596 $ 4,813,671 $ 5,217,946 $ 325,426 $ 239,648 $ 78,694 $11,097,981 1 % 80 % Single-Family Rental: Percentage of portfolio 88 % Pass $ 9,709 $ 608 $ — $ — $ — $ — $ 10,317 Pass/Watch 289,482 465,057 144,846 119,692 — — 1,019,077 Special Mention 31,131 45,145 218,697 — — — 294,973 Total Single-Family Rental $ 330,322 $ 510,810 $ 363,543 $ 119,692 $ — $ — $ 1,324,367 0 % 62 % Land: Percentage of portfolio 10 % 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 % 97 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ — $ 35,410 $ — $ — $ 35,410 Total Office $ — $ — $ — $ 35,410 $ — $ — $ 35,410 0 % 80 % Retail: Percentage of portfolio <1% Substandard $ — $ — $ — $ — $ — $ 19,520 $ 19,520 Total Retail $ — $ — $ — $ — $ — $ 19,520 $ 19,520 0 % 88 % Commercial: Percentage of portfolio < 1% Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Commercial $ — $ — $ — $ — $ — $ 1,700 $ 1,700 63 % 66 % Percentage of portfolio < 1% Grand Total $ 752,918 $ 5,324,481 $ 5,581,489 $ 488,628 $ 239,648 $ 227,842 $ 12,615,006 1 % 78 % Charge-offs $ — $ — $ — $ — $ — $ 5,700 $ 5,700 Geographic Concentration Risk At December 31, 2023, underlying properties in Texas and Florida represented 24% and 17%, 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 state represented 10% or more of the total loan and investment portfolio. Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows (in thousands): Year Ended December 31, 2023 Multifamily Land Retail Commercial Single- Family Rental Office Other Total Allowance for credit losses: Beginning balance $ 37,961 $ 78,068 $ 5,819 $ 1,700 $ 780 $ 8,162 $ 69 $ 132,559 Provision for credit losses (net of recoveries) 72,886 (10) (2,526) — 844 (2,320) (69) 68,805 Charge-offs — — — — — (5,700) — (5,700) Ending balance $ 110,847 $ 78,058 $ 3,293 $ 1,700 $ 1,624 $ 142 $ — $ 195,664 Year Ended December 31, 2022 Allowance for credit losses: Beginning balance $ 18,707 $ 77,970 $ 5,819 $ 1,700 $ 319 $ 8,073 $ 653 $ 113,241 Provision for credit losses (net of recoveries) 19,254 98 — — 461 89 (584) 19,318 Ending balance $ 37,961 $ 78,068 $ 5,819 $ 1,700 $ 780 $ 8,162 $ 69 $ 132,559 Year Ended December 31, 2021 Allowance for credit losses: Beginning balance $ 36,468 $ 78,150 $ 13,861 $ 1,700 $ 586 $ 1,846 $ 15,718 $ 148,329 Provision for credit losses (net of recoveries) (17,761) (180) (42) — (267) 6,227 (12,292) (24,315) Charge-offs — — (8,000) — — — (2,773) (10,773) Ending balance $ 18,707 $ 77,970 $ 5,819 $ 1,700 $ 319 $ 8,073 $ 653 $ 113,241 During 2023, we recorded a $68.8 million provision for credit losses, which was net of $4.8 million of loan loss recovery. The loan loss recovery included $2.5 million for a retail loan that paid off and $2.3 million for a loan on an office building that was converted to a common equity investment, for which the fair value of the property exceeded the carrying value. The increase in the provision for credit losses during 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 increases 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 December 31, 2023 and 2022, we had outstanding unfunded commitments of $1.31 billion and $1.15 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. At December 31, 2023 and 2022, accrued interest receivable related to our loans totaling $124.2 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): December 31, 2023 Asset Class UPB (1) Carrying Allowance for Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multifamily $ 272,493 $ 260,291 $ 37,750 0 % 100 % Land 134,215 127,868 77,869 0 % 99 % Retail 19,521 15,037 3,292 0 % 88 % Commercial 1,700 1,700 1,700 63 % 66 % Total $ 427,929 $ 404,896 $ 120,611 0 % 99 % 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 nineteen and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2023 and 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 December 31, 2023 and 2022. Non-performing and Other Non-accrued Loans Loans are classified as non-performing once the contractual payments exceed 60 days past due. At December 31, 2023, sixteen loans with an aggregate net carrying value of $235.6 million, net of related loan loss reserves of $27.1 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. Income from non-performing loans is recognized on a cash basis when payments are received. Full income recognition will resume when the loan becomes contractually current, and performance has recommenced. A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2023 December 31, 2022 UPB Less Than Greater Than UPB Less Than Greater Than Multifamily $ 271,532 $ — $ 271,532 $ 2,605 $ — $ 2,605 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 3,445 — 3,445 Total $ 274,152 $ — $ 274,152 $ 7,750 $ — $ 7,750 In this challenging economic environment, we have recently experienced late and partial payments on certain loans in our structured portfolio. At December 31, 2023, these loans included twenty-four multifamily bridge loans with an aggregate UPB of $956.9 million that were 60 days or less past due. We are recognizing income on these loans to the extent cash is received. These loans include one specifically reserved loan with a $3.0 million loan loss reserve and a UPB of $32.6 million. At both December 31, 2023 and 2022, we had no loans contractually past due 90 days or more that are still accruing interest. During 2023, we recognized $92.5 million of interest income on loans classified as non-accrual at December 31, 2023. During 2022, there was no interest income recognized on loans classified as non-accrual at December 31, 2022. In addition, we have six loans with a carrying value totaling $121.4 million at December 31, 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 December 31, 2023 and 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. Loan Modifications In the fourth quarter of 2023, we entered into loan modification agreements with the borrowers of three multifamily bridge loans with an aggregate UPB of $241.0 million, interest rates over SOFR ranging from 4.00% to 4.30% and maturities between October 2024 to January 2025 to: (1) defer a portion of the foregoing interest ranging from 2.00% to 2.15% to payoff, and (2) extend the maturity of each loan by one year. We also agreed to waive 25% of the deferred interest if the loans are paid off by the extended maturity dates. In the fourth quarter of 2023, we entered into a loan modification agreement on an $86.9 million multifamily bridge loan with an interest rate of SOFR plus 4.25% and a maturity in November 2023 to: (1) change the pay rate of interest to $0.5 million per year, and (2) extend the maturity one year. The remaining interest will be deferred to payoff. In the fourth quarter of 2023, we converted a first mortgage loan and a preferred equity investment in an office building to a common equity investment, which is included in other assets in our consolidated balance sheets. On the date of the conversion, the investment had a net carrying value of $37.1 million, net of an $8.0 million reserve. Upon conversion, we recognized a $2.3 million loan loss recovery as a result of the fair value of the property exceeding the carrying value of our loan and preferred equity investment. We intend to convert the building to residential condominiums. 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 in 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 reverts back 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. In 2020, we entered into a loan modification agreement on a $26.5 million bridge loan with an interest rate of LIBOR plus 6.00% with a 2.375% LIBOR floor and a $6.1 million mezzanine loan with a fixed rate of 12% collateralized by a retail property to: (1) reduce the interest rate on both loans to the greater of: (i) LIBOR plus 5.50% and (ii) 6.50%, and (2) to extend the maturity three years to December 2024. A portion of the foregoing interest equal to 2.00% was deferred to payoff and would have been waived if the loan was paid off by December 31, 2022, which did not take place. The loan modification agreement also included a $6.0 million required principal paydown, which occurred at the closing of the modification transaction, and an $8.0 million principal reduction once the borrower deposited an additional reserve of $4.6 million, which took place in 2021 and was charged-off against the previously recorded allowance for credit losses. In 2019, we purchased $50.0 million of a $110.0 million bridge loan, which was collateralized by a hotel property and scheduled to mature in December 2023. In 2021, we recorded a $7.5 million allowance for credit losses due to a reduction in the appraised value of the property. In 2021, we purchased the remaining $60.0 million bridge loan at a discount for $39.9 million, which we determined had experienced a more than insignificant deterioration in credit quality since origination and, therefore, deemed to be a purchased loan with credit deterioration. The $20.1 million discount was classified as a noncredit discount and no portion of the discount was allocated to allowance for credit losses at the date of purchase, since the appraised value of the property was greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid off by March 2, 2021. In 2021, we entered into a second forbearance agreement that temporarily eliminated the pay rate, extended the principal reduction payoff deadline to June 30, 2021 and increased the interest rate to an unaccrued default rate of 9.50%, which was deferred until payoff. In June 2021, we received $95.0 million for full satisfaction of these loans, reversed the $7.5 million allowance for credit losses and recorded interest income of $3.5 million. There were no other loan modifications, refinancings and/or extensions during 2023, 2022 or 2021 to borrowers experiencing financial difficulty. Loan Sales 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. In 2022, we sold 4 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 recaptured $78.0 million of capital to be used for future investments. The $2.0 million in fees and costs were recorded as an unrealized impairment loss and included in other income (loss), net on the consolidated statements of income. We retained the right to service these loans. During 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 recaptured $66.3 million of capital to be used for 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. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. At December 31, 2023 and 2022, we had total interest reserves of $156.1 million and $123.7 million, respectively, on 537 loans and 480 loans, respectively, |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 12 Months Ended |
Dec. 31, 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): December 31, 2023 December 31, 2022 Fannie Mae $ 477,212 $ 173,020 Private Label 50,235 152,735 FHA 11,350 21,021 SFR - Fixed Rate 8,696 12,352 Freddie Mac 4,832 8,938 552,325 368,066 Fair value of future MSR 7,784 5,557 Unrealized impairment loss (1,989) (15,703) Unearned discount (6,413) (3,850) Loans held-for-sale, net $ 551,707 $ 354,070 During 2023, 2022 and 2021, we sold $4.89 billion, $5.44 billion and $6.42 billion, respectively, of loans held-for-sale. Included in the total loans sold during 2022 and 2021 were Private Label loans totaling $489.3 million and $985.1 million, respectively, which were sold to unconsolidated affiliates of ours who securitized the loans. We retained the most subordinate class of certificates in these securitizations totaling $43.4 million and $85.7 million during 2022 and 2021, respectively, in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans. During 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, recorded unrealized impairment losses of $15.7 million which was included in other income (loss), net on the consolidated statements of income. During the first quarter of 2023, we sold several of these impaired loans above the net carrying value and recorded a net gain of $0.9 million. At December 31, 2023 and 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 | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Capitalized Mortgage Servicing Rights | Capitalized Mortgage Servicing Rights Our capitalized MSRs reflect commercial real estate MSRs derived primarily from loans sold in our Agency Business or acquired MSRs. The weighted average estimated life remaining of our MSRs was 8.0 years and 8.6 years at December 31, 2023 and 2022, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Originated Acquired Total Originated Acquired Total Beginning balance $ 386,878 $ 14,593 $ 401,471 $ 395,573 $ 27,161 $ 422,734 Additions 67,612 — 67,612 83,115 — 83,115 Amortization (59,182) (3,911) (63,093) (53,449) (6,427) (59,876) Write-downs and payoffs (12,726) (2,010) (14,736) (38,361) (6,141) (44,502) Ending balance $ 382,582 $ 8,672 $ 391,254 $ 386,878 $ 14,593 $ 401,471 We collected prepayment fees totaling $6.4 million and $48.2 million during 2023 and 2022, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At December 31, 2023 and 2022, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded at December 31, 2023 is as follows (in thousands): Year Amortization 2024 $ 65,500 2025 62,514 2026 56,969 2027 52,366 2028 45,188 Thereafter 108,717 Total $ 391,254 Based on scheduled maturities, actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing | Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2023 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total Fannie Mae $ 21,264,578 69 % Texas 11 % Freddie Mac 5,181,933 17 % New York 11 % Private Label 2,510,449 8 % California 8 % FHA 1,359,624 4 % North Carolina 8 % Bridge (2) 379,425 1 % Georgia 6 % SFR - Fixed Rate 287,446 1 % Florida 6 % Total $ 30,983,455 100 % 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 four bridge loans sold by our Structured Business that we are servicing, see Note 3 for details. (3) No other individual state represented 4% or more of the total. At December 31, 2023 and 2022, our weighted average servicing fee was 39.1 basis points and 41.1 basis points, respectively. At December 31, 2023 and 2022, we held total escrow balances (including unfunded collateralized loan obligation hold backs) of approximately $1.6 billion and $1.7 billion, respectively, of which approximately $1.5 billion is not included in our consolidated balance sheets at both December 31, 2023 and 2022. 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): Year Ended December 31, 2023 2022 2021 Servicing fees $ 123,975 $ 123,937 $ 123,758 Interest earned on escrows 77,916 24,436 4,191 Prepayment fees 6,387 48,197 38,221 Write-offs of MSRs (14,736) (44,502) (32,741) Amortization of MSRs (63,093) (59,876) (58,615) Servicing revenue, net $ 130,449 $ 92,192 $ 74,814 |
Securities Held-to-Maturity
Securities Held-to-Maturity | 12 Months Ended |
Dec. 31, 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. 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 December 31, 2023, we retained 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 6.6 years. The weighted average effective interest rate was 8.85% at both December 31, 2023 and 2022, including the accretion of a portion of the discount deemed collectible. Approximately $19.7 million is estimated to mature after one year through five years and $173.1 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 December 31, 2023, we retained 49%, or $106.2 million initial face value, of seven B Piece bonds, which were previously 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 6.1 years. The weighted average effective interest rate was 11.28% and 12.20% at December 31, 2023 and 2022, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $5.9 million is estimated to mature within one year, $11.4 million is estimated to mature after one year through five years and $20.4 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 December 31, 2023 APL certificates $ 192,791 $ 128,865 $ (31,331) $ 97,534 $ 2,272 B Piece bonds 37,704 26,414 5,442 31,856 3,984 Total $ 230,495 $ 155,279 $ (25,889) $ 129,390 $ 6,256 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): Year Ended December 31, 2023 APL B Piece Total Beginning balance $ 2,783 $ 370 $ 3,153 Provision for credit loss expense/(reversal) (511) 3,614 3,103 Ending balance $ 2,272 $ 3,984 $ 6,256 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. At December 31, 2023, no other-than-temporary impairment was recorded on our held-to-maturity securities. We recorded interest income (including the amortization of discount) related to these investments of $13.6 million, $18.6 million and $13.2 million during 2023, 2022 and 2021, respectively. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 12 Months Ended |
Dec. 31, 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 December 31, 2023 Equity Affiliates December 31, 2023 December 31, 2022 Arbor Residential Investor LLC $ 32,743 $ 46,951 $ — AMAC Holdings III LLC 13,591 15,825 — Fifth Wall Ventures 13,365 13,584 — AWC Real Estate Opportunity Partners I LP 11,671 — — ARSR DPREF I LLC 5,163 — — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 450 — JT Prime 425 425 — West Shore Café — — 1,688 Lexford Portfolio — — — East River Portfolio — — — Total $ 79,303 $ 79,130 $ 1,688 Arbor Residential Investor LLC (“ARI”). We invested $9.6 million for a 50% interest in ARI, with our former manager (ACM) holding the remaining 50%. ARI was formed to hold a 50% interest in Wakefield Investment Holdings LLC (“Wakefield”), an entity that was formed with a third party to hold a controlling interest (65%) in a residential mortgage banking business. ARI has no other assets, liabilities or activity other than its investment in Wakefield. At December 31, 2023, our indirect interest in this business was 12.3%. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% at December 31, 2023. We account for our ownership interest in ARI under the equity method of accounting and ARI accounts for its ownership interest in Wakefield under the equity method of accounting. During 2023, 2022 and 2021, we recorded income of $0.6 million, $4.9 million and $34.6 million, respectively, to income from equity affiliates in the consolidated statements of income. We also received $15.0 million and $23.8 million in cash distributions from this investment during 2023 and 2022, respectively, which were classified as returns of capital. AMAC III. We committed to a $30.0 million investment for an 18% interest in a multifamily-focused commercial real estate investment fund that is sponsored and managed by our chief executive officer and one of his immediate family members. During 2023, 2022 and 2021, we recorded losses associated with this investment of $1.9 million, $2.4 million and $1.3 million, respectively. During 2023 and 2022, we made contributions of $0.7 million and $4.9 million, respectively, and received cash distributions totaling $1.1 million and $0.5 million, respectively, which were classified as returns of capital, related to this investment. Fifth Wall. We committed to a $25.0 million investment for a 7.6% interest in two related private equity funds whose investment objective is to invest primarily in technology, technology-enabled or technology-related companies that are relevant or complementary to the build environment, including real estate or real estate-related industries. We have no role in the management of the investment funds. During 2023 and 2022, we made contributions of $1.0 million and $9.7 million, respectively, and, during 2022 we received cash distributions totaling $1.6 million, which was classified as returns of capital, related to this investment. During 2023, we recorded a loss associated with this investment of $1.2 million. Operating results from this investment were de minimis for 2022 and 2021. AWC Real Estate Opportunity Partners I LP ("AWC"). In the fourth quarter of 2023, we committed to a $24.0 million investment (of which $13.0 million was funded at December 31, 2023) for an initial 99% noncontrolling interest in a fund whose objective is to make investments in sustainable affordable housing structures, with the intention to bring in additional partners. In addition, we entered into an agreement with the general partner to provide a loan, up to a maximum of $0.9 million, to fund a portion of their equity contributions. In the fourth quarter of 2023, this fund purchased our equity interest in North Vermont Avenue (described below) at a discount for $1.3 million, which was recorded as a reduction to our investment in AWC. The remaining capital contribution was used to fund additional qualified purchases. ARSR DPREF I LLC. In the fourth quarter of 2023, we entered into a joint venture whose objective is to invest in preferred equity investments in commercial real estate and we contributed 50% of a $10.2 million preferred equity loan originated by us to the joint venture. We hold a 50% interest in the joint venture which is structured to reflect joint control, allocation of profits and losses and capital contributions. The agreement provides for a total joint venture contribution of $70.0 million, which may be upsized to $140.0 million. Lightstone Value Plus REIT L.P. / JT Prime. We own a $1.9 million interest in a joint venture that holds common operating partnership units of Lightstone Value Plus REIT L.P. (“Lightstone”). We also own a 50% noncontrolling interest in a joint venture, JT Prime, which holds common operating partnership units of Lightstone at a carrying value of $0.4 million. Operating results from these investments were de minimis for all periods presented. Docsumo Pte. Ltd. (“Docsumo”). We invested $0.5 million for a noncontrolling interest in Docsumo, a startup company that converts unstructured documents, such as bank statements and pay stubs, to accurate structured data and checks documents for fraud, such as photoshopped layers and font changes, using artificial intelligence. Operating results from this investment were de minimis for all periods presented. West Shore Café. We own a 50% noncontrolling interest in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California. We provided a $1.7 million first mortgage loan to an affiliated entity to acquire property adjacent to the original property, which matures in September 2025 and bears interest at SOFR plus 4.0% with a SOFR floor of 0.15%. In 2018, we determined that this investment exhibited indicators of impairment and recorded an other-than-temporary impairment of $2.2 million for the full carrying amount of this investment and fully reserved the $1.7 million first mortgage loan. Operating results from this investment were de minimis for all periods presented. Lexford Portfolio. We own a less than $0.1 million noncontrolling equity interest in Lexford, a portfolio of multifamily assets. In 2023 and 2022, we received distributions from this investment and recognized income totaling $12.2 million and $11.1 million, net of expenses, respectively. As a result of COVID-19, Lexford did not make any distributions to its equity holders in 2021. East River Portfolio. We invested $0.1 million for a 5% interest in a joint venture that owns two multifamily properties. The joint venture is comprised of a consortium of investors (which includes, among other unaffiliated investors, certain of our officers, our chief executive officer and certain other related parties) who together own an interest of 95%. Operating results from this investment were de minimis for all periods presented. Equity Participation Interest. During 2023 and 2022, we received $14.5 million and $2.6 million, respectively, 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. North Vermont Avenue. We invested $2.4 million for an initial 85% noncontrolling interest in a joint venture that acquired three parcels of land with multiple structures, with the intent to tear down the existing structures and construct a new 202-unit multifamily complex with ground floor retail. Operating results from this investment were de minimis for all periods presented. During 2022, we determined that this investment exhibited indicators of impairment and, as a result of an impairment analysis performed; we recorded an other-than-temporary impairment of $2.4 million to income from equity affiliates for the full carrying amount of this investment. In the fourth quarter of 2023, AWC purchased our equity interest in North Vermont Avenue at a discount for $1.3 million (described above). See Note 18 for details of certain investments described above. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill. The goodwill balance at both December 31, 2023 and 2022 was $56.6 million. Other Intangible Assets. The following table sets forth the other intangible assets activity (in thousands): December 31, 2023 December 31, 2022 Gross Accumulated Total Gross Accumulated Total Finite‑lived intangible assets: Broker relationships $ 25,000 $ (23,307) $ 1,693 $ 25,000 $ (20,182) $ 4,818 Borrower relationships 14,400 (10,740) 3,660 14,400 (9,300) 5,100 Below market leases 4,010 (3,611) 399 4,010 (3,485) 525 Infinite‑lived intangible assets: Fannie Mae DUS license 17,100 — 17,100 17,100 — 17,100 Freddie Mac Program Plus license 8,700 — 8,700 8,700 — 8,700 FHA license 3,200 — 3,200 3,200 — 3,200 $ 72,410 $ (37,658) $ 34,752 $ 72,410 $ (32,967) $ 39,443 The amortization expense recorded for these intangible assets was $4.7 million in each of 2023, 2022 and 2021. At December 31, 2023, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated annual amortization expense are as follows ($ in thousands): Wtd. Avg. Estimated Amortization Expense for the 2024 2025 2026 2027 Finite‑lived intangible assets: Broker relationships 0.5 $ 1,693 $ — $ — $ — Borrower relationships 2.5 1,440 1,440 780 — Below market leases 3.2 126 126 126 21 2.0 $ 3,259 $ 1,566 $ 906 $ 21 See Note 20 for details of goodwill and other intangible assets by segment. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): December 31, 2023 December 31, 2022 UPB Debt Collateral Wtd. Avg. UPB Debt Collateral Wtd. Avg. Structured Business $2.5B joint repurchase facility (2) $ 870,073 $ 868,077 $ 1,371,436 7.81 % $ 1,524,831 $ 1,516,657 $ 2,099,447 6.73 % $1B repurchase facility (2) 386,576 385,779 589,533 7.68 % 499,891 498,666 703,740 6.39 % $500M repurchase facility 448,411 447,490 597,205 8.38 % 155,121 154,653 188,563 7.16 % $499M repurchase facility (2)(3) 355,328 355,328 506,753 7.83 % 351,056 351,056 504,506 6.64 % $450M repurchase facility 263,061 262,820 362,465 7.55 % 344,576 344,237 450,736 6.36 % $250M credit facility 17,997 17,964 23,088 7.32 % 33,246 33,221 43,238 6.25 % $250M repurchase facility — — — — — — — — $225M credit facility 103,552 103,552 139,252 8.04 % 47,398 47,398 81,119 6.90 % $200M repurchase facility 32,599 32,579 41,522 7.03 % 187,428 186,639 239,678 6.18 % $200M repurchase facility 46,403 45,969 68,762 8.04 % 33,155 32,494 47,750 6.95 % $200M repurchase facility 107,355 107,324 141,130 7.44 % 155,240 154,516 200,099 6.33 % $121M loan specific credit facilities 120,660 120,328 161,700 6.91 % 156,543 156,107 225,805 6.42 % $50M credit facility 29,200 29,200 36,500 7.58 % 29,200 29,194 36,500 6.48 % $40M credit facility — — — — — — — — $35M working capital facility — — — — — — — — $25M credit facility 17,093 17,058 22,816 8.09 % 19,177 18,701 24,572 6.99 % Repurchase facility - securities (2)(4) 31,033 31,033 — 7.15 % 12,832 12,832 — 6.99 % Structured Business total $ 2,829,341 $ 2,824,501 $ 4,062,162 7.80 % $ 3,549,694 $ 3,536,371 $ 4,845,753 6.59 % Agency Business $750M ASAP agreement $ 73,011 $ 73,011 $ 73,781 6.49 % $ 29,476 $ 29,476 $ 30,291 5.21 % $500M joint repurchase facility (2) 7,945 7,833 11,350 7.77 % 105,275 104,629 135,641 6.52 % $500M repurchase facility 115,841 115,730 241,895 6.83 % 66,866 66,778 66,866 5.73 % $200M credit facility 187,185 187,138 187,185 6.78 % 31,519 31,475 33,177 5.76 % $100M credit facility — — — — 57,974 57,887 57,974 5.76 % $50M credit facility 29,085 29,083 29,418 6.73 % 14,671 14,664 14,671 5.65 % $1M repurchase facility (2)(3) 531 531 866 7.86 % 534 534 920 6.66 % Agency Business total $ 413,598 $ 413,326 $ 544,495 6.76 % $ 306,315 $ 305,443 $ 339,540 5.96 % Consolidated total $ 3,242,939 $ 3,237,827 $ 4,606,657 7.67 % $ 3,856,009 $ 3,841,814 $ 5,185,293 6.54 % ________________________________________ (1) At December 31, 2023 and 2022, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $4.8 million and $13.3 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $0.3 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 December 31, 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 $43.1 million. At December 31, 2022, this facility was collateralized by B Piece bonds with a carrying value of $33.1 million. During 2023, several of our credit and repurchase facilities, in both our Structured Business and Agency Business, converted from a LIBOR-based interest rate to a SOFR-based interest rate for new financings. At December 31, 2023, all of our credit and repurchase facilities are at a SOFR-based interest rate. Usually, our credit and repurchase facilities have extension options that are at the discretion of the financial institutions in which we have long standing relationships with. These facilities typically renew annually and also include a "wind-down" feature. Joint Repurchase Facility. We have a $3.00 billion joint repurchase facility that will reduce to $2.00 billion in March 2024, which is shared between the Structured Business and the Agency Business, and matures in July 2025 with a one-year extension option. This facility is used to finance both structured and Private Label loans. The interest rate under the facility is determined on a loan-by-loan basis and may include a floor equal to a pro rata share of the floors included in our originated loans. The facility has a maximum advance rate of 80% on all loans. If the estimated market value of the loans financed in this facility decrease, we may be required to pay down borrowings under this facility. Structured Business. We utilize credit and repurchase facilities with various financial institutions to finance our loans and investments as described below. Many of these facilities have a maximum advance rate between 70% to 83%, depending on the asset type financed. At December 31, 2023 and 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 8.26% 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 working capital facility, was 69% and 73% at December 31, 2023 and 2022, respectively. We have a $1.00 billion repurchase facility used to finance bridge loans that matures in August 2025, with a one-year extension option. The facility bears interest ranging from SOFR plus 2.25% to 2.50%, with a weighted average spread that must be at least 2.40%. We have a $500.0 million repurchase facility to finance SFR loans that has an interest rate ranging from SOFR plus 2.76% to 3.26%. The commitment amount under this facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans. We have a $500.0 million repurchase facility to finance SFR loans that has an interest rate ranging from SOFR plus 2.46% to 3.11%, with a 0.25% SOFR floor, and matures in October 2024. We have a $450.0 million repurchase facility to finance bridge loans that matures in March 2024, with two one-year extension options. The interest rate under the facility is determined on a loan-by-loan basis and includes a floor of SOFR plus 2.00%. We have a $250.0 million credit facility to finance bridge loans that matures in July 2024 and bears interest at a rate ranging from SOFR plus 2.61% to 3.31% depending on the type of loan financed. This facility includes a $25.0 million sublimit to finance healthcare related loans. We have a $250.0 million repurchase facility to finance bridge loans that bears interest at a rate ranging from SOFR plus 2.00% to 2.40% depending on the duration of time the loan is being financed. The facility matures in October 2025, with a one-year extension option. We have a $225.0 million credit facility to finance SFR loans that bears interest at a rate of SOFR plus 2.55%, with an all-in floor rate range of 3.00% to 4.10%, depending on our deposit balance. The facility matures in October 2025. We have a $200.0 million repurchase facility to finance bridge loans that matures in April 2024, with a six-month extension option, and bears interest at a rate ranging from SOFR plus 1.50% to 1.86%. We have a $200.0 million repurchase facility to finance SFR loans that matures in March 2025, with a one-year extension option. This facility has an interest rate of SOFR plus 2.55%. We have a $200.0 million repurchase facility to finance bridge and construction loans that matures in January 2025. This facility has interest rates ranging from SOFR plus 1.75% to 3.50% depending on the type of loan financed, with a SOFR floor determined on a loan-by-loan basis. We have several loan specific credit facilities totaling $120.7 million used to finance individual bridge loans. The facilities bear interest at rates ranging from SOFR plus 1.91% to 2.60% and a 3.00% fixed rate. The facilities mature between March 2024 and September 2025. We have a $50.0 million credit facility to finance bridge loans that bears interest at a rate of SOFR plus 2.10% and matures in April 2024, with a one-year extension option. We have a $40.0 million credit facility used to purchase loans that bears interest at a rate of SOFR plus 2.35% and matures in April 2026, with a one-year extension option. We have a $35.0 million unsecured working capital line of credit that bears interest at a rate of SOFR plus 3.00%. This line matures in April 2024 and is typically renewed annually. We have a $25.0 million credit facility to finance SFR loans that bears interest at a rate of SOFR plus 2.60%, with an all-in floor rate of 4.25%, which matures in October 2025. We have an uncommitted repurchase facility that is used to finance certificates retained by us from our Q Series securitization and our purchases of B Piece bonds from SBL program securitizations. This facility bears interest at a rate of SOFR plus 2.60% and has no stated maturity date. Agency Business. We utilize credit and repurchase facilities with various financial institutions to finance substantially all of our loans held-for-sale as described below. The financial institutions that provide these facilities generally have a security interest in the underlying mortgage notes that serve as collateral for these facilities. We have a $750.0 million ASAP agreement with Fannie Mae providing us with a warehousing credit facility for mortgage loans that are to be sold to Fannie Mae and serviced under the Fannie Mae DUS program. The ASAP agreement is not a committed line, has no expiration date and bears interest at a rate of SOFR plus 1.15%, with a 0.25% SOFR floor. We have a $500.0 million repurchase facility that bears interest at a rate of SOFR plus 1.48% and matures in November 2024. We have a $200.0 million credit facility that bears interest at a rate of SOFR plus 1.40% and matures in March 2024. We have a $100.0 million credit facility that bears interest at a rate of SOFR plus 1.46% and matures in July 2024. This facility includes a $37.5 million sublimit for principal and interest advances we make as the primary servicer to Fannie Mae in connection with potential delinquent loans under the Fannie Mae forbearance program, which bears interest at a rate of SOFR plus 1.86%. We have a $50.0 million credit facility that bears interest at a rate of SOFR plus 1.35% and matures in September 2024. We have a letter of credit facility to secure obligations under the Fannie Mae DUS program and the Freddie Mac SBL program with a total committed amount of up to $75.0 million. The facility bears interest at a fixed rate of 2.875%, matures in September 2025, and is primarily collateralized by our servicing revenue as approved by Fannie Mae and Freddie Mac. The facility includes a $5.0 million sublimit for obligations under the Freddie Mac SBL program. At December 31, 2023, the letters of credit outstanding include $64.0 million for the Fannie Mae DUS program and $5.0 million for the Freddie Mac SBL program. Securitized Debt We account for securitized debt transactions on our consolidated balance sheet as financing facilities. These transactions are considered VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade notes and guaranteed certificates issued to third parties are treated as secured financings and are non-recourse to us. Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash December 31, 2023 Face Value Carrying Wtd. Avg. UPB Carrying Restricted CLO 19 $ 872,812 $ 868,359 7.84 % $ 1,031,772 $ 1,028,669 $ 4,527 CLO 18 1,652,812 1,647,885 7.29 % 1,784,921 1,780,930 244,629 CLO 17 1,714,125 1,709,800 7.14 % 1,870,388 1,865,878 203,938 CLO 16 1,237,500 1,233,769 6.76 % 1,456,872 1,453,297 847 CLO 15 (5) 674,412 673,367 6.82 % 734,120 732,498 42,600 CLO 14 (5) 589,345 588,176 6.82 % 680,814 679,469 33,271 Total CLOs 6,741,006 6,721,356 7.14 % 7,558,887 7,540,741 529,812 Q Series securitization 215,278 213,654 7.38 % 287,038 286,053 — Total securitized debt $ 6,956,284 $ 6,935,010 7.15 % $ 7,845,925 $ 7,826,794 $ 529,812 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 $21.3 million and $36.8 million of deferred financing fees at December 31, 2023 and 2022, respectively. (2) At December 31, 2023 and 2022, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 7.37% and 6.32%, respectively, and the Q Series securitization was 7.99% and 6.66%, respectively. (3) At December 31, 2023, twelve loans with an aggregate UPB of $308.3 million were deemed a "credit risk" as defined by the collateralized loan obligations ("CLO") indentures. At December 31, 2022, there were no collateral deemed a “credit risk” as defined by the CLO indentures. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $63.9 million and $230.0 million at December 31, 2023 and 2022, respectively. (5) The replenishment periods of CLO 14 and CLO 15 ended in September 2023 and December 2023, respectively. CLO 19. In 2022, we completed CLO 19, issuing nine tranches of CLO notes through a wholly-owned subsidiary totaling $1.05 billion. Of the total CLO notes issued, $872.8 million were investment grade notes issued to third party investors and $177.2 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $976.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing has an approximate two-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $73.1 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $1.05 billion, representing leverage of 83%. The notes sold to third parties had an initial weighted average interest rate of 2.36% plus term SOFR and interest payments on the notes are payable monthly. CLO 18. In 2022, we completed CLO 18, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.86 billion. Of the total CLO notes issued, $1.65 billion were investment grade notes issued to third party investors and $210.1 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $1.70 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing has an approximate two-and-a-half-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $347.3 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $2.05 billion, representing leverage of 81%. We retained a residual interest in the portfolio with a notional amount of $397.2 million, including the $210.1 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.81% plus compounded SOFR and interest payments on the notes are payable monthly. CLO 17. In 2021, we completed CLO 17, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.91 billion. Of the total CLO notes issued, $1.71 billion were investment grade notes issued to third party investors and $194.3 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $1.79 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing has an approximate two-and-a-half-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $315.0 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $2.10 billion, representing leverage of 82%. We retained a residual interest in the portfolio with a notional amount of $385.9 million, including the $194.3 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.68% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 16. In 2021, we completed CLO 16, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.37 billion. Of the total CLO notes issued, $1.24 billion were investment grade notes issued to third party investors and $135.0 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $1.19 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing has an approximate two-and-a-half-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $313.0 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $1.50 billion, representing leverage of 83%. We retained a residual interest in the portfolio with a notional amount of $262.5 million, including the $135.0 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.31% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 15. In 2021, we completed CLO 15, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $747.8 million. Of the total CLO notes issued, $674.4 million were investment grade notes issued to third party investors and $73.4 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $653.0 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing had an approximate two-and-a-half-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance is being reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $162.0 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $815.0 million, representing leverage of 83%. We retained a residual interest in the portfolio with a notional amount of $140.6 million, including the $73.4 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.37% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 14. In 2021, we completed CLO 14, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $724.2 million. Of the total CLO notes issued, $655.5 million were investment grade notes issued to third party investors and $68.7 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $635.2 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio, and cash. The financing had a two-and-a-half-year replacement period that allowed the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance is being reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $149.8 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $785.0 million, representing leverage of 84%. We retained a residual interest in the portfolio with a notional amount of $129.5 million, including the $68.7 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.33% plus one-month LIBOR and interest payments on the notes are payable monthly. CLO 13 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 $1.5 million of deferred financing fees in 2023 related to the unwind of these CLOs, into loss on extinguishment of debt on the consolidated statements of income. Freddie Mac Q Series Securitization. In December 2022, we completed a Q Series securitization, by which we sold to Freddie Mac 11 floating rate loans totaling $315.8 million that are secured by first priority mortgage liens on 21 multifamily properties that qualify as mission-driven under the Federal Housing Finance Agency guidelines. The Q Series securitization is represented through a series of pass-through certificates (the “Certificates”) issued under a pooling and servicing agreement. We retained certain subordinate and interest-only classes of the Certificates aggregating $79.0 million and the remaining Certificates totaling $236.9 million were purchased by third party investors, representing leverage of 75%. The Certificates sold to third parties pay interest at a rate of 2.00% plus one-month SOFR, excluding fees and transaction costs, and are payable monthly. As part of the securitization transaction, we released all mortgage servicing obligations and rights to Freddie Mac who was designated as the master servicer. As master servicer, Freddie Mac appointed us as its subservicer, which includes obligations to collect and remit payments and otherwise administer the underlying loans, and a third party as the special servicer. We may, subject to certain limitations, terminate the special servicer, with or without cause, and appoint a successor. In addition, the special servicer must receive our consent prior to certain decisions with respect to a specially serviced mortgage loan. Senior Unsecured Notes A summary of our senior unsecured notes is as follows ($ in thousands): December 31, 2023 December 31, 2022 Senior Issuance Maturity UPB Carrying Wtd. Avg. UPB Carrying Wtd. Avg. 7.75% Notes (3) Mar. 2023 Mar. 2026 $ 95,000 $ 93,697 7.75 % $ — $ — — 8.50% Notes (3) Oct. 2022 Oct. 2027 150,000 148,023 8.50 % 150,000 147,519 8.50 % 5.00% Notes (3) Dec. 2021 Dec. 2028 180,000 177,875 5.00 % 180,000 177,450 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 267,763 4.50 % 270,000 266,926 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 173,542 5.00 % 175,000 172,917 5.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 273,444 4.50 % 275,000 272,960 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,721 4.75 % 110,000 109,369 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,903 5.75 % 90,000 89,514 5.75 % 8.00% Notes Apr. 2020 Apr. 2023 — — — 70,750 70,613 8.00 % 5.625% Notes Mar. 2018 May 2023 — — — 78,850 78,726 5.63 % $ 1,345,000 $ 1,333,968 5.41 % $ 1,399,600 $ 1,385,994 5.40 % ________________________________________ (1) At December 31, 2023 and 2022, the carrying value is net of deferred financing fees of $11.0 million and $13.6 million, respectively. (2) At December 31, 2023 and 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. Except as noted below, we used the proceeds of our senior unsecured debt offerings to make investments and for general corporate purposes. 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 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 October 2022, we issued $150.0 million aggregate principal amount of 8.50% senior unsecured notes due in 2027 in a private offering. We received proceeds of $147.5 million from the issuance, after deducting the underwriting discount and other offering expenses. We used $47.5 million of the proceeds, which included accrued interest and other fees, to repurchase a portion of our 5.625% senior unsecured notes. In 2021, we issued $180.0 million aggregate principal amount of 5.00% senior unsecured notes due in 2028 in a private offering. We received proceeds of $177.2 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2021, we issued $270.0 million aggregate principal amount of 4.50% senior unsecured notes due in 2026 in a private offering. We received proceeds of $265.8 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2021, we issued $175.0 million aggregate principal amount of 5.00% senior unsecured notes due in 2026 in a private offering. We received proceeds of $172.3 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2020, we issued $70.8 million aggregate principal amount of 8.00% senior unsecured notes due in April 2023 in a private offering. We received proceeds of $69.6 million from the issuance, after deducting the underwriting discount and other offering expenses. We used a portion of the proceeds from the issuance to repay secured indebtedness. In 2020, we issued $275.0 million aggregate principal amount of 4.50% senior unsecured notes due in March 2027 in a private offering. We received proceeds of $271.8 million from the issuance, after deducting the underwriting discount and other offering expenses. We used a significant portion of the proceeds to repay secured indebtedness. In 2019, we issued $110.0 million aggregate principal amount of 4.75% senior unsecured notes due in October 2024 in a private offering. We received proceeds of $108.2 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2019, we issued $90.0 million aggregate principal amount of 5.75% senior unsecured notes due in April 2024 in a private offering. We received proceeds of $88.2 million from the issuance, after deducting the underwriting discount and other offering expenses. In 2018, we issued $125.0 million aggregate principal amount of 5.625% senior unsecured notes due in May 2023 in a private offering. We received proceeds of $122.3 million from the issuance, after deducting the underwriting discount and other offering expenses. We used a significant portion of the proceeds to fully redeem our 7.375% senior unsecured notes. In October 2022, we repaid $46.2 million of the outstanding principal balance as noted above. In May 2023, the remaining balance of these notes matured and were redeemed with cash. Convertible Senior Unsecured Notes In 2022, we issued $287.5 million in aggregate principal amount of 7.50% convertible senior notes (the “7.50% Convertible Notes”) through a private placement offering. The 7.50% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in August 2025, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 59.8480 shares of common stock per $1,000 of principal representing a conversion price of $16.71 per share of common stock. We received proceeds of $279.3 million, net of discounts and fees. We used $203.1 million of the net proceeds to repurchase a portion of our 4.75% convertible senior notes (the “4.75% Convertible Notes”), which included $5.2 million of accrued interest and repurchase premiums, and expensed $3.3 million of deferred financing fees into loss on extinguishment of debt on the consolidated statements of income. At December 31, 2023, the 7.50% Convertible Notes had a conversion rate of 60.3915 shares of common stock per $1,000 of principal, which represented a conversion price of $16.56 per share of common stock. In 2022, the remaining $66.1 million principal amount of our 4.75% Convertible Notes matured and were fully settled with cash. Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible by the holder into, at our election, cash, shares of our common stock or a combination of both, subject to the satisfaction of certain conditions and during specified periods. The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their n |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2023 2022 Beginning balance $ 57,168 $ 56,064 Provisions for loss sharing 17,864 3,592 Provisions reversal for loan repayments (2,169) (1,730) Recoveries (charge-offs), net (1,229) (758) Ending balance $ 71,634 $ 57,168 When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At December 31, 2023 and 2022, we had $34.6 million and $34.4 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 December 31, 2023 and 2022, we had outstanding advances of $1.1 million and $0.8 million, respectively, which were netted against the allowance for loss-sharing obligations. At December 31, 2023 and 2022, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $37.0 million and $22.7 million, respectively, and represented 0.17% and 0.12%, respectively, of our Fannie Mae servicing portfolio. During 2023, we recorded a $14.3 million increase in CECL reserves. At December 31, 2023 and 2022, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.95 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 | 12 Months Ended |
Dec. 31, 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 aspects, 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 2023, 2022 and 2021, we recorded net gains net losses net losses $69.9 million, $69.3 million and $130.2 million, respectively, of income from MSRs. See Note 13 for details Treasury Futures and Credit Default Swaps. We enter into over-the-counter treasury futures and credit default 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 treasury futures typically have a three-month maturity and are tied to the five-year and ten-year treasury 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. These instruments do not meet the criteria for hedge accounting, are cleared by a central clearing house and variation margin payments, made in cash, and are treated as a legal settlement of the derivative itself. Our agreements with the counterparties provide for bilateral collateral pledging based on the counterparties' market value. The counterparties have the right to re-pledge the collateral posted, but have the obligation to return the pledged collateral as the market value of the treasury futures change. Our policy is to record the asset and liability positions on a net basis. At December 31, 2023 and 2022, we had $1.5 million and $9.5 million, respectively, included in others assets, which was comprised of cash posted as collateral of $1.9 million and $6.3 million, respectively, and a $0.4 million loss and a $3.2 million gain, respectively, from the fair value of our treasury futures. During 2023, 2022 and 2021 we recorded realized gains and unrealized losses of $1.6 million and $3.7 million, realized and unrealized gains of $26.9 million and $3.5 million and realized and unrealized losses of less than $0.1 million and $1.5 million, respectively, to our Agency Business. A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands): December 31, 2023 Fair Value Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities Rate lock commitments 3 $ 26,800 Other assets/other liabilities $ 428 $ (759) Forward sale commitments 33 559,079 Other assets/other liabilities 6,119 (262) Treasury futures 82 8,200 — — $ 594,079 $ 6,547 $ (1,021) 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) Treasury futures 1,298 129,800 — — $ 515,723 $ 1,505 $ (4,897) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 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): December 31, 2023 December 31, 2022 Principal / Carrying Estimated Principal / Carrying Estimated Financial assets: Loans and investments, net $ 12,615,006 $ 12,377,806 $ 12,452,563 $ 14,456,123 $ 14,254,674 $ 14,468,418 Loans held-for-sale, net 552,325 551,707 566,451 368,066 354,070 362,054 Capitalized mortgage servicing rights, net n/a 391,254 510,472 n/a 401,471 530,913 Securities held-to-maturity, net 230,495 155,279 129,390 234,255 156,547 144,571 Derivative financial instruments 447,609 6,547 6,547 111,950 1,505 1,505 Financial liabilities: Credit and repurchase facilities $ 3,242,939 $ 3,237,827 $ 3,228,324 $ 3,856,009 $ 3,841,814 $ 3,828,192 Securitized debt 6,956,284 6,935,010 6,864,557 7,886,066 7,849,270 7,560,541 Senior unsecured notes 1,345,000 1,333,968 1,214,331 1,399,600 1,385,994 1,262,560 Convertible senior unsecured notes, net 287,500 283,118 301,156 287,500 280,356 287,834 Junior subordinated notes 154,336 143,896 106,444 154,336 143,128 103,977 Derivative financial instruments 138,270 1,021 1,021 273,973 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 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. 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, net. 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 December 31, 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 $ 6,547 $ 6,547 $ — $ 6,119 $ 428 Financial liabilities: Derivative financial instruments $ 1,021 $ 1,021 $ — $ 1,021 $ — We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at December 31, 2023 (in thousands): Fair Value Measurements Using Fair Value Hierarchy Net Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 284,285 $ 284,285 $ — $ — $ 284,285 Loans held-for-sale (2) 18,057 18,057 — 18,057 — $ 302,342 $ 302,342 $ — $ 18,057 $ 284,285 ________________________________________ (1) We had an allowance for credit losses of $120.6 million relating to nineteen impaired loans with an aggregate carrying value, before loan loss reserves, of $404.9 million at December 31, 2023. (2) We have an impairment of $2.0 million related to 6 loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $20.0 million. Loan impairment assessments. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for credit losses, when such loan or investment is deemed to be impaired. We consider a loan impaired when, based upon current information, it is probable that all amounts due for both principal and interest will not be collected according to the contractual terms of the loan agreement. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance, and corresponding charge to the provision for credit losses, or an impairment loss. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors. Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics. The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized. Quantitative information about Level 3 fair value measurements at December 31, 2023 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Multifamily $ 222,540 Discounted cash flows Capitalization rate 6.35 % Land 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,745 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Derivative financial instruments: Rate lock commitments 428 Discounted cash flows W/A discount rate 13.38 % 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 2023 2022 2021 Derivative assets and liabilities, net Beginning balance $ 354 $ 295 $ 1,967 Settlements (66,407) (64,896) (112,836) Realized gains recorded in earnings 66,053 64,601 110,869 Unrealized gains recorded in earnings 428 354 295 Ending balance $ 428 $ 354 $ 295 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): December 31, 2023 Notional/ Fair Value of Interest Rate Unrealized Total Fair Value Rate lock commitments $ 26,800 $ 428 $ 759 $ — $ 1,187 Forward sale commitments 559,079 — (759) — (759) Loans held-for-sale, net (1) 552,325 7,784 — (1,989) 5,795 Total $ 8,212 $ — $ (1,989) $ 6,223 ________________________________________ (1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. We measure certain assets and liabilities for which fair value is only disclosed. The fair values of these assets and liabilities are determined using the following input levels at December 31, 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 $ 12,377,806 $ 12,452,563 $ — $ — $ 12,452,563 Loans held-for-sale, net 551,707 566,451 — 558,667 7,784 Capitalized mortgage servicing rights, net 391,254 510,472 — — 510,472 Securities held-to-maturity, net 155,279 129,390 — — 129,390 Financial liabilities: Credit and repurchase facilities $ 3,237,827 $ 3,228,324 $ — $ 413,326 $ 2,814,998 Securitized debt 6,935,010 6,864,557 — — 6,864,557 Senior unsecured notes 1,333,968 1,214,331 1,214,331 — — Convertible senior unsecured notes, net 283,118 301,156 — 301,156 — Junior subordinated notes 143,896 106,444 — — 106,444 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Impact of COVID-19. The extent and duration of the economic fallout from the COVID-19 pandemic to our business and our borrowers, particularly rising inflation, increasing interest rates and dislocation in capital markets, remains unclear and presents risk with respect to our financial condition, results of operations, liquidity, and our ability to pay distributions. See Item 1A. Risk Factors and Note 2 for further discussion of COVID-19. Agency Business Commitments. Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements. At December 31, 2023, we were required to maintain at least $20.3 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 December 31, 2023, the restricted liquidity requirement totaled $76.2 million and was satisfied with a $64.0 million letter of credit and cash issued to Fannie Mae. At December 31, 2023, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $36.6 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 December 31, 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 also subject to capital requirements on an annual basis for Ginnie Mae and FHA, and we believe we have met all requirements at December 31, 2023. As an approved designated seller/servicer under Freddie Mac’s SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit. We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 12 and Note 13. Debt Obligations and Operating Leases. At December 31, 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 2024 $ 1,855,247 $ 10,820 $ 1,866,067 2025 2,523,024 11,206 2,534,230 2026 1,996,721 11,297 2,008,018 2027 4,510,642 9,782 4,520,424 2028 946,089 9,064 955,153 Thereafter 154,336 27,755 182,091 Total $ 11,986,059 $ 79,924 $ 12,065,983 At December 31, 2023 and 2022, our leases had remaining lease terms of 0.8 – 10.1 years and 0.2 – 10.4 years, respectively, with a weighted average remaining lease term of 7.6 years and 8.2 years, respectively, and a weighted average discount rate of 5.7% and 6.8%, respectively. We recorded lease expense of $10.9 million, $9.6 million and $9.3 million during 2023, 2022 and 2021, respectively. Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $1.31 billion at December 31, 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. We are currently neither subject to any material litigation nor, to the best of our knowledge, threatened by any material litigation. The following are details of a litigation that was settled and discontinued in 2023. 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 then 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. 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 | 12 Months Ended |
Dec. 31, 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): December 31, 2023 December 31, 2022 Assets: Restricted cash $ 593,956 $ 710,775 Loans and investments, net 7,826,793 8,900,104 Other assets 193,822 174,382 Total assets $ 8,614,571 $ 9,785,261 Liabilities: Securitized debt $ 6,935,010 $ 7,849,270 Other liabilities 32,867 26,754 Total liabilities $ 6,967,877 $ 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 10 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 31 VIEs in which we have a variable interest at December 31, 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 December 31, 2023 is as follows (in thousands): Type Carrying Amount (1) Loans $ 524,915 APL certificates 131,137 B Piece bonds 30,398 Equity investments 29,876 Agency interest only strips 162 Total $ 716,488 ________________________________________ (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2023, $127.9 million of loans to VIEs had corresponding specific loan loss reserves of $77.9 million. The maximum loss exposure at December 31, 2023 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $3.91 billion at December 31, 2023. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Preferred Stock. In the first quarter of 2022, we completed a public offering of an additional 3,292,000 shares of 6.25% Series F fixed-to-floating rate cumulative redeemable preferred stock, generating net proceeds of $77.1 million after deducting the underwriting discount and other offering expenses. The additional shares issued have the same terms as the original issuance. The Series D, Series E and Series F preferred stock are not redeemable by us prior to June 2, 2026, August 11, 2026 and October 12, 2026, respectively. Common Stock. We have an equity distribution agreement with JMP Securities LLC ("JMP") where we may offer and sell up to 25,000,000 shares of our common stock in "At-The-Market" equity offerings through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. During 2023, we sold 13,113,296 shares of our common stock at an average price of $14.77 per share for net proceeds of $193.7 million. At December 31, 2023, we had 5,176,704 shares available under the agreement. 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. During 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. In December 2023, the Board of Directors authorized an increase to the remaining availability under the share repurchase program to $150.0 million. At December 31, 2023, there was $150.0 million available for repurchase under this program. Noncontrolling Interest. Noncontrolling interest relates to the OP Units issued to satisfy a portion of the purchase price in connection with the Acquisition. Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one-for-one basis. At December 31, 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) for the year ended December 31, 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 October 25, 2023 $ 0.43 September 29, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 December 29, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 Common Stock – On February 14, 2024, the Board of Directors declared a cash dividend of $0.43 per share of common stock. The dividend is payable on March 15, 2024 to common stockholders of record as of the close of business on March 4, 2024. We have determined that 100% of the common stock and preferred stock dividends paid during 2023, 2022 and 2021 represented ordinary income to our stockholders for income tax purposes. For stockholders that may be required to report excess inclusion income to the Internal Revenue Service, we will not pass through any excess inclusion income to our stockholders for 2023. As a result, no portion of the 2023 dividends should be treated as excess inclusion income for federal income tax purposes. Deferred Compensation. We have a stock incentive plan under which the Board of Directors has the authority to issue shares of stock to certain employees, officers and directors. During 2023, we issued 943,788 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $11.3 million, of which: (1) 299,710 shares with a grant date fair value of $3.6 million were fully vested on the grant date; (2) 277,751 shares with a grant date fair value of $3.4 million will vest in 2024; (3) 253,479 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 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. The deferred awards have no voting rights and are eligible to receive dividend equivalents equal to the dividends on our common stock as, and when, declared by our Board of Directors. During 2022, we issued 652,596 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $11.1 million, of which: (1) 232,899 shares with a grant date fair value of $4.0 million were fully vested on the grant date; (2) 217,840 shares with a grant date fair value of $3.7 million vested in 2023; (3) 181,968 shares with a grant date fair value of $3.1 million will vest in 2024; (4) 9,951 shares with a grant date fair value of $0.2 million will vest in 2025; and (5) 9,938 shares with a grant date fair value of $0.2 million will vest in 2026. We issued 25,012 fully vested restricted stock units (“RSUs”) with a grant date fair value of $0.4 million to certain members of our Board of Directors and 189,873 RSUs with a grant date fair value of $3.3 million that vest in full in the first quarter of 2025 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. The deferred awards have no voting rights and are eligible to receive dividend equivalents equal to the dividends on our common stock as, and when, declared by our Board of Directors. In 2021, we issued 384,758 shares of restricted common stock to our employees and members of our Board of Directors under the 2020 Plan with a total grant date fair value of $6.4 million, of which: (1) 144,951 shares with a grant date fair value of $2.4 million vested on the grant date; (2) 101,475 shares with a grant date fair value of $1.7 million vested in 2022; (3) 88,788 shares with a grant date fair value of $1.5 million vested in 2023; (4) 25,479 shares with a grant date fair value of $0.4 million will vest in 2024; and (5) 24,065 shares with a grant date fair value of $0.4 million will vest in 2025. In April 2021, we granted our chief executive officer 184,729 shares of restricted common stock with a grant date fair value of $3.1 million that vest in full in April 2024. In July 2021, we granted our chief executive officer 165,746 shares of performance based restricted stock with a grant date fair value of $3.0 million, which vest in full in July 2024. In 2023, 2022 and 2021, previously granted performance-based restricted stock units of 352,427 units, 381,503 units and 448,980 units, respectively, fully vested based on achieving the performance objectives for the four-year periods ended December 31, 2022, 2021 and 2020, respectively. The 352,427 units, 381,503 units and 448,980 units vested in full and were net settled for 172,513 shares, 186,772 shares and 229,083 shares, respectively, of common stock in 2023, 2022 and 2021. respectively. In addition, 313,152 shares, 246,508 shares and 294,985 shares of performance-based restricted stock granted in 2020, 2019 and 2018, respectively, vested in 2023, 2022 and 2021, respectively, which were net settled for 153,287 shares, 120,665 shares and 150,530 shares, respectively, of common stock. During 2023, 2022 and 2021, we recorded total stock-based compensation expense of $14.2 million, $14.2 million and $9.3 million, respectively, to employee compensation and benefits and $0.7 million, $0.8 million and $0.6 million, respectively, to selling and administrative expense. During 2023, a total of 874,611 shares of restricted stock and restricted stock units vested with a grant date fair value of $11.1 million. At December 31, 2023 and 2022, there were 1,657,078 shares and 1,389,427 shares, respectively, of unvested restricted common stock with a grant date fair value of $23.7 million and $21.3 million, respectively. At December 31, 2023, total unrecognized compensation cost related to unvested restricted common stock was $8.1 million, which is expected to be recognized ratably over the remaining weighted-average vesting period of 1.8 years. Earnings Per Share. Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of restricted stock units granted to our chief executive officer, OP Units and convertible senior unsecured notes. A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 330,065 $ 330,065 $ 284,829 $ 284,829 $ 317,412 $ 317,412 Net income attributable to noncontrolling interest (2) — 29,122 — 28,044 — 38,507 Interest expense on convertible notes (3) — 24,832 — 20,166 — — Net income attributable to common stockholders and noncontrolling interest $ 330,065 $ 384,019 $ 284,829 $ 333,039 $ 317,412 $ 355,919 Weighted average shares outstanding 184,641,642 184,641,642 165,355,167 165,355,167 137,830,691 137,830,691 Dilutive effect of OP Units (2) — 16,293,589 — 16,304,638 — 16,818,722 Dilutive effect of convertible notes (3) — 17,294,392 — 16,900,204 — 506,949 Dilutive effect of restricted stock units (4) — 613,990 — 552,621 — 933,233 Weighted average shares outstanding 184,641,642 218,843,613 165,355,167 199,112,630 137,830,691 156,089,595 Net income per common share (1) $ 1.79 $ 1.75 $ 1.72 $ 1.67 $ 2.30 $ 2.28 ________________________________________ (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior notes impacted diluted EPS if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. (4) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are organized and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code. A REIT is generally not subject to federal income tax on taxable income which it distributes to its stockholders, provided that it distributes at least 90% of its REIT–taxable income and meets certain other requirements. Certain REIT income may be subject to state and local income taxes. We did not have any REIT–federal taxable income, net of dividends paid and net operating loss deductions, for 2023, 2022 and 2021, and therefore, have not provided for REIT federal income tax expense in any of those years. In 2023, 2022 and 2021, the REIT incurred no state income tax expense. We have elected to retain excess inclusion income rather than passing it through to our stockholders. Certain of our assets and operations that would not otherwise comply with the REIT requirements, such as the Agency Business and our residential mortgage banking joint venture, are owned or conducted through our TRS Consolidated Group, the majority of the income of which is subject to U.S. federal, state and local income taxes. The TRS Consolidated Group had no federal net operating losses remaining from prior years. For 2023, 2022 and 2021, we recorded a provision for income taxes related to the assets held in the TRS Consolidated Group and the REIT in the amount of $27.3 million, $17.5 million and $46.3 million, respectively. In 2023, the change in the valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets was released in the amount of $0.3 million. In 2022, the change in the valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets was due to the impact of state tax rate changes. In 2021, valuation allowance previously recorded at the TRS Consolidated Group on the deferred tax assets subject to loss limitation rules was released in the amount of $0.1 million. A summary of our pre-tax GAAP income is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Pre‑tax GAAP income: REIT $ 320,045 $ 303,320 $ 239,356 TRS Consolidated Group 107,858 67,991 184,736 Total pre‑tax GAAP income $ 427,903 $ 371,311 $ 424,092 Our provision for income taxes is comprised as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current tax provision: Federal $ 26,269 $ 14,167 $ 27,454 State 8,427 5,058 7,939 Total 34,696 19,225 35,393 Deferred tax (benefit) provision: Federal $ (5,272) $ (1,373) $ 8,287 State (1,783) (370) 2,744 Valuation allowance (294) 2 (139) Total (7,349) (1,741) 10,892 Total income tax expense $ 27,347 $ 17,484 $ 46,285 A reconciliation of our effective income tax rate as a percentage of pre-tax income to the U.S. federal statutory rate is as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % REIT non‑taxable income (15.7) % (17.2) % (11.9) % State and local income taxes, net of federal tax benefit 1.2 % 1.0 % 2.0 % Other (0.1) % (0.1) % (0.2) % Effective income tax rate 6.4 % 4.7 % 10.9 % The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Expenses not currently deductible $ 27,144 $ 22,755 Loan loss reserves 7,088 7,159 Net operating and capital loss carryforwards 188 454 Valuation allowance — (294) Other 346 441 Deferred tax assets, net $ 34,766 $ 30,515 Deferred tax liabilities: Mortgage servicing rights $ 28,286 $ 26,975 Intangibles 5,565 6,457 Interest in equity affiliates—net 2,719 6,237 Deferred tax liabilities, net $ 36,570 $ 39,669 At both December 31, 2023 and 2022, the REIT (excluding the TRS Consolidated Group) had no federal net operating loss carryforwards and no capital loss carryforwards. At both December 31, 2023 and 2022, the TRS Consolidated Group had no federal net operating loss carryforwards remaining. During 2023, the TRS Consolidation Group utilized in full its capital loss carryforward of approximately $1.1 million. At both December 31, 2023 and 2022, the TRS Consolidated Group had state net operating loss carryforwards of $0.2 million, which will begin to expire in 2036. The TRS Consolidated Group is currently under audit in certain state and local jurisdictions for tax years 2017-2021. While the impact of the current income tax examinations were undetermined, it is not expected to be material to our consolidated financial statements. We have assessed our tax positions for all open years, which includes 2017-2023, and have concluded that there were no material uncertainties to be recognized. We have not recognized any interest and penalties related to tax uncertainties for the years ended 2017 through 2023. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 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 2023, 2022 and 2021, we incurred $3.2 million, $3.3 million and $3.2 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which are reimbursable to us and included in due from related party on the consolidated balance sheets. Other Related Party Transactions. Due from related party was $64.4 million and $77.4 million at December 31, 2023 and 2022, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of 2023 and 2022 and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above. Due to related party was $13.8 million and $12.4 million at December 31, 2023 and 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 2023, 2022 and 2021, we reimbursed the aircraft owner $0.8 million, $1.1 million and $0.2 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 ($6.0 million was funded at December 31, 2023) for an SFR build-to-rent construction project. Two of our officers made minority equity investments totaling $0.5 million, representing approximately 4% 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 $0.4 million for 2023. In July 2022, we purchased a $46.2 million bridge loan originated by ACM at par ($6.3 million was funded at December 31, 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 5.50% and matures in March 2025. Interest income recorded from this loan was $0.2 million for 2023. In April 2022, we committed to fund a $67.1 million bridge loan (none of which was funded at December 31, 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 $0.2 million and $0.1 million for 2023 and 2022, respectively. In February 2022, we committed to fund a $39.4 million bridge loan ($9.4 million was funded at December 31, 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 4.00% with a LIBOR floor of 0.25%, that was changed to SOFR in July 2023, and matures in March 2025. Interest income recorded from this loan was $0.4 million and $0.1 million for 2023 and 2022, respectively. 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 obtain the right to occupy, in part. An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10% 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%, that was changed to SOFR in July 2023, and was scheduled to mature in March 2024. In December 2023, this loan paid off in full. Interest income recorded from this loan was $5.6 million, $3.7 million and $2.1 million for 2023, 2022 and 2021, respectively. In 2020, we committed to fund a $32.5 million bridge loan, 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 5.50% with a LIBOR floor of 0.75%, that was changed to SOFR in July 2023, and the preferred equity investment has a 12.00% fixed rate. Both loans were scheduled to mature in December 2023. In November 2023, the bridge loan was upsized to a maximum of $39.9 million ($31.4 million was funded at December 31, 2023) and the maturity date for both loans was extended to October 2024. Interest income recorded from these loans was $2.8 million, $1.3 million and $0.5 million for 2023, 2022 and 2021, respectively. In 2020, we committed to fund a $30.5 million bridge loan , and we made a $4.6 million preferred equity investment in a SFR build-to-rent construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9% equity interest in the borrowing entity. The bridge loan had an interest rate of LIBOR plus 5.50% with a LIBOR floor of 0.75% and was scheduled to mature in May 2023. The preferred equity investment has a 12.00% fixed rate and was scheduled to mature in April 2023. In April 2023, the bridge loan was upsized to a maximum of $38.8 million ($36.3 million was funded at December 31, 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 $3.6 million, $1.6 million and $0.6 million for 2023, 2022 and 2021, respectively. In 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. The mezzanine loan bears interest at a 9.00% fixed rate and matures in April 2030. Interest income recorded from the mezzanine loan was $0.3 million for all periods presented. We had 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 October 2023 and the preferred equity investment was scheduled to mature in June 2027. The day-to-day operations were being managed by an affiliated entity of an immediate family member of our chief executive officer. In September 2021, we entered into a forbearance agreement with the borrower on the outstanding bridge loan to defer all interest owed until maturity or early payoff. Interest income recorded from these loans was $1.3 million for 2021. In the fourth quarter of 2023, we converted these loans in the building to a common equity investment. See Note 3 for details. 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 ($25.9 million was funded at December 31, 2023) for an 18% interest in AMAC III. During 2023, 2022 and 2021, we recorded losses of $1.9 million, $2.4 million and $1.3 million, respectively, and received cash distributions totaling $1.1 million and $0.5 million in 2023 and 2022, respectively, associated with this investment. 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 3.50%, that was changed to SOFR in July 2023, and was scheduled to mature in August 2023, which was extended to August 2024. Interest income recorded from the bridge loan was $3.1 million, $1.9 million and $1.3 million for 2023, 2022 and 2021, 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%, that was changed to SOFR in July 2023, and was scheduled to mature in August 2023, which was extended to August 2024. Interest income recorded from this loan was $2.2 million, $1.4 million and $1.3 million for 2023, 2022 and 2021, 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 4.00% and a LIBOR floor of 1.80%, 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 and $1.9 million for 2022 and 2021, respectively. 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 December 31, 2023. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 20% of the original UPB. Upon the sale, we received a 1% loan assumption fee which was governed by existing loan agreements that were in place when the loan was originated in 2015, prior to such purchase. 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 2019, we converted an existing bridge loan into a $2.0 million mezzanine loan with a fixed interest rate of 10.00% and a January 2024 maturity. In January 2024, the maturity was extended one year to January 2025. Interest income recorded from this loan was $0.2 million for all period presented. The underlying multifamily property is owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12.0% in the borrowing entities . 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 December 31, 2023, we had an indirect interest of 12.3% in this entity. We recorded income from equity affiliates related to this investment of $0.6 million, $4.9 million and $34.6 million for 2023, 2022 and 2021, respectively. During 2023 and 2022, we also received cash distributions totaling $15.0 million and $23.8 million, respectively, from this investment, 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 4.00% 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 3.30% and matures in March 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.5 million during 2020. 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 $12.2 million and $11.1 million during 2023 and 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 December 31, 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, senior counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. At December 31, 2023, ACM holds 2,535,870 shares of our common stock and 10,615,085 OP Units, which represents approximately 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. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits 401(k). We have a 401(k) defined contribution plan (the “401(k) Plan”) which is available to all employees who have completed six months of continuous service. The 401(k) Plan matches 25% of the first 6% of each employee’s contribution. We have the option to increase the employer match based on our operating results. In 2023, 2022 and 2021, we recorded $1.2 million, $1.0 million and $0.8 million, respectively, of expenses associated with the 401(k) Plan, which is included in employee compensation and benefits in our consolidated statements of income. Deferred Compensation. We have a non-qualified deferred compensation plan (the “Deferred Comp Plan”) which is offered to certain full-time employees and is subject to the rules of section 409A of the Internal Revenue Code. The Deferred Comp Plan can be modified or discontinued at any time. All eligible participating employees may defer a portion of their compensation and, depending on the participant eligibility requirements met, we are contractually obligated to: (1) match the contribution, as specified in the Deferred Comp Plan, and fund such amounts upon vesting and an election by participants to redeem their interests; and/or (2) supply additional life insurance benefits. All employee deferrals vest immediately and the matching contributions, where applicable, vest over a nine-year period beginning after year five. For 2023, 2022 and 2021, there were $3.1 million, $3.3 million and $2.2 million, respectively, of employee deferrals. At December 31, 2023 and 2022, we had recorded liabilities totaling $37.6 million and $28.7 million, respectively, and assets of $30.2 million and $24.7 million, respectively, related to the Deferred Comp Plan, which is included in other liabilities and other assets, respectively, in our consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ 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. Year Ended December 31, 2023 Structured Agency Other (1) Consolidated Interest income $ 1,279,433 $ 51,786 $ — $ 1,331,219 Interest expense 880,602 22,626 — 903,228 Net interest income 398,831 29,160 — 427,991 Other revenue: Gain on sales, including fee-based services, net — 72,522 — 72,522 Mortgage servicing rights — 69,912 — 69,912 Servicing revenue — 193,542 — 193,542 Amortization of MSRs — (63,093) — (63,093) Property operating income 5,708 — — 5,708 Gain on derivative instruments, net — 6,763 — 6,763 Other income, net 4,868 2,799 — 7,667 Total other revenue 10,576 282,445 — 293,021 Other expenses: Employee compensation and benefits 53,507 106,281 — 159,788 Selling and administrative 23,234 28,026 — 51,260 Property operating expenses 5,897 — — 5,897 Depreciation and amortization 5,052 4,691 — 9,743 Provision for loss sharing (net of recoveries) — 15,695 — 15,695 Provision for credit losses (net of recoveries) 70,344 3,102 — 73,446 Total other expenses 158,034 157,795 — 315,829 Income before extinguishment of debt, income from equity affiliates and income taxes 251,373 153,810 — 405,183 Loss on extinguishment of debt (1,561) — — (1,561) Income from equity affiliates 24,281 — — 24,281 Benefit from (provision for) income taxes 803 (28,150) — (27,347) Net income 274,896 125,660 — 400,556 Preferred stock dividends 41,369 — — 41,369 Net income attributable to noncontrolling interest — — 29,122 29,122 Net income attributable to common stockholders $ 233,527 $ 125,660 $ (29,122) $ 330,065 Year Ended December 31, 2022 Structured Agency Other (1) Consolidated Interest income $ 903,622 $ 44,779 $ — $ 948,401 Interest expense 538,659 18,958 — 557,617 Net interest income 364,963 25,821 — 390,784 Other revenue: Gain on sales, including fee-based services, net — 55,816 — 55,816 Mortgage servicing rights — 69,346 — 69,346 Servicing revenue — 152,068 — 152,068 Amortization of MSRs — (59,876) — (59,876) Property operating income 1,877 — — 1,877 Gain on derivative instruments, net — 26,609 — 26,609 Other income (loss), net (2,360) (15,203) — (17,563) Total other revenue (483) 228,760 — 228,277 Other expenses: Employee compensation and benefits 56,032 105,793 — 161,825 Selling and administrative 26,059 27,931 — 53,990 Property operating expenses 2,136 — — 2,136 Depreciation and amortization 4,041 4,691 — 8,732 Provision for loss sharing (net of recoveries) — 1,862 — 1,862 Provision for credit losses (net of recoveries) 19,770 1,399 — 21,169 Litigation settlement 7,350 — — 7,350 Total other expenses 115,388 141,676 — 257,064 Income before extinguishment of debt, income from equity affiliates and income taxes 249,092 112,905 — 361,997 Loss on extinguishment of debt (4,933) — — (4,933) Income from equity affiliates 14,247 — — 14,247 Provision for income taxes (821) (16,663) — (17,484) Net income 257,585 96,242 — 353,827 Preferred stock dividends 40,954 — — 40,954 Net income attributable to noncontrolling interest — — 28,044 28,044 Net income attributable to common stockholders $ 216,631 $ 96,242 $ (28,044) $ 284,829 Year Ended December 31, 2021 Structured Agency Other (1) Consolidated Interest income $ 427,039 $ 39,048 $ — $ 466,087 Interest expense 194,435 17,570 — 212,005 Net interest income 232,604 21,478 — 254,082 Other revenue: Gain on sales, including fee-based services, net — 123,037 — 123,037 Mortgage servicing rights — 130,230 — 130,230 Servicing revenue — 133,429 — 133,429 Amortization of MSRs — (58,615) — (58,615) Property operating income 185 — — 185 Loss on derivative instruments, net — (2,684) — (2,684) Other income, net 7,491 75 — 7,566 Total other revenue 7,676 325,472 — 333,148 Other expenses: Employee compensation and benefits 51,225 120,571 — 171,796 Selling and administrative 21,064 24,511 — 45,575 Property operating expenses 718 — — 718 Depreciation and amortization 2,524 4,691 — 7,215 Provision for loss sharing (net of recoveries) — (6,167) — (6,167) Provision for credit losses (net of recoveries) (21,223) 110 — (21,113) Total other expenses 54,308 143,716 — 198,024 Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 185,972 203,234 — 389,206 Loss on extinguishment of debt (3,374) — — (3,374) Gain on real estate 2,466 1,227 — 3,693 Income from equity affiliates 34,567 — — 34,567 Provision for income taxes (5,940) (40,345) — (46,285) Net income 213,691 164,116 — 377,807 Preferred stock dividends 21,888 — — 21,888 Net income attributable to noncontrolling interest — — 38,507 38,507 Net income attributable to common stockholders $ 191,803 $ 164,116 $ (38,507) $ 317,412 ________________________________________ (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. December 31, 2023 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 619,487 $ 309,487 $ 928,974 Restricted cash 595,342 12,891 608,233 Loans and investments, net 12,377,806 — 12,377,806 Loans held-for-sale, net — 551,707 551,707 Capitalized mortgage servicing rights, net — 391,254 391,254 Securities held-to-maturity, net — 155,279 155,279 Investments in equity affiliates 79,303 — 79,303 Goodwill and other intangible assets 12,500 78,878 91,378 Other assets and due from related party 453,073 101,629 554,702 Total assets $ 14,137,511 $ 1,601,125 $ 15,738,636 Liabilities: Debt obligations $ 11,520,492 $ 413,327 $ 11,933,819 Allowance for loss-sharing obligations — 71,634 71,634 Other liabilities and due to related parties 369,588 108,990 478,578 Total liabilities $ 11,890,080 $ 593,951 $ 12,484,031 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 Year Ended December 31, 2023 2022 2021 Origination Data: Structured Business Bridge: Multifamily $ 415,330 $ 5,468,222 $ 9,101,139 SFR 524,060 613,819 415,501 939,390 6,082,041 9,516,640 Mezzanine / Preferred Equity 43,953 69,606 203,875 Total new loan originations $ 983,343 $ 6,151,647 $ 9,720,515 Number of Loans Originated 150 318 422 SFR Commitments $ 1,150,687 $ 1,086,833 $ 760,448 Loan runoff $ 3,354,055 $ 3,818,554 $ 2,516,771 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,773,532 $ 2,919,566 $ 3,389,312 Freddie Mac 756,827 1,353,001 1,016,142 Private Label 299,934 217,542 1,436,853 FHA 257,199 188,394 430,320 SFR - Fixed Rate 19,328 89,683 136,931 Total $ 5,106,820 $ 4,768,186 $ 6,409,558 Total loan commitment volume $ 5,207,148 $ 5,146,718 $ 6,347,752 Agency Business Loan Sales Data: Fannie Mae $ 3,469,340 $ 3,139,414 $ 3,675,763 Freddie Mac 715,530 1,456,595 1,081,702 Private Label 441,319 515,086 985,094 FHA 240,079 241,457 480,275 SFR - Fixed Rate 22,931 86,071 192,335 Total $ 4,889,199 $ 5,438,623 $ 6,415,169 Sales margin (fee-based services as a % of loan sales) (1) 1.48 % 1.34 % 1.92 % MSR rate (MSR income as a % of loan commitments) 1.34 % 1.35 % 2.05 % ________________________________________ (1) 2022 includes $17.1 million of gains recognized on treasury futures related to Private Label loans sold, which is included in gain (loss) on derivative instruments, net in the consolidated statements of income. December 31, 2023 Key Servicing Metrics for Agency Business: Servicing Wtd. Avg. Servicing Wtd. Avg. Life of Fannie Mae $ 21,264,578 47.4 7.4 Freddie Mac 5,181,933 24.0 8.5 Private Label 2,510,449 19.5 6.7 FHA 1,359,624 14.4 19.2 Bridge 379,425 10.9 3.2 SFR - Fixed Rate 287,446 20.1 5.1 Total $ 30,983,455 39.1 8.0 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 |
SCHEDULE IV - LOANS AND OTHER L
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | Type Location Periodic Maturity Interest Pay Prior Liens Face Carrying Carrying Bridge Loans: Bridge loans less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2024 - 2026 SOFR+ 0.00% to 5.75% $ — $ 10,789,936 $ 10,665,252 $ — SOFR Floor 0.10% to 5.36% Fixed 3.00% to 12.00% Single‑Family Rental Various IO / PI 2024 - 2026 SOFR+ 0.00% to 6.25% — 1,316,803 1,301,522 — SOFR Floor 0.10% to 5.36% Land CA IO 2025 SOFR+ 4.00% — 118,595 40,726 — SOFR Floor 0.15% Fixed 0.00% Office NY IO 2024 SOFR+ 3.50% — 35,410 35,268 — Retail CT IO 2024 SOFR+ 3.50% — 12,500 10,127 — SOFR Floor 1.00% Total Bridge Loans less than 3% of carrying amount of total loans — 12,273,244 12,052,895 — Total Bridge Loans — 12,273,244 12,052,895 — Mezzanine Loans: Mezzanine loans less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2024 - 2034 Fixed 3.50% to 14.00% 1,203,261 232,104 223,008 — Land CA IO 2024 Fixed 0.00% — 9,333 9,333 — Retail Various IO 2024 SOFR+ 3.50% — 7,020 6,100 — SOFR Floor 1.00% Fixed 12.00% Total Mezzanine Loans 1,203,261 248,457 238,441 — Preferred Equity Investments: Preferred equity investments less than 3% of carrying amount of total loans (6): Multifamily Various IO / PI 2024 - 2033 Fixed 0.00% to 16.00% 439,722 75,941 71,020 — Land TX IO 2024 - 2025 Fixed 0.00% — 8,100 7,910 — Commercial NY IO 2024 Fixed 6.00% 29,792 1,700 — — Total Preferred Equity Investments 469,514 85,741 78,930 — Other Loans: Other loans less than 3% of carrying amount of total loans (6): Single‑Family Rental Various IO / PI 2024 - 2025 SOFR + 3.98% to 4.90% — 7,564 7,540 — SOFR Floor 0.25% — 7,564 7,540 — Total Loans $ 1,672,775 $ 12,615,006 $ 12,377,806 $ — ________________________________________ (1) IO = Interest Only, PI = Principal and Interest. (2) Maturity date does not include possible extensions. (3) References to SOFR are to one-month SOFR unless specifically stated otherwise. (4) During 2023, $1.74 billion of loans were extended. (5) The federal income tax basis is approximately $12.62 billion. (6) Individual loans each have a carrying value less than 3% of total loans. The following table reconciles our loans and investments carrying amounts for the periods indicated (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of year $ 14,254,674 $ 11,981,048 $ 5,285,868 Additions during period: New loan originations 983,343 6,151,647 9,720,515 Funding of unfunded loan commitments (1) 835,484 381,831 200,694 Accretion of unearned revenue 41,125 37,468 25,618 Recoveries of reserves 4,776 1,500 24,315 Loan charge‑offs — — 10,773 Deductions during period: Loan payoffs and paydowns (3,354,055) (3,818,554) (2,516,771) Unfunded loan commitments (1) (260,789) (376,404) (623,639) Unearned revenue and costs (13,772) (51,808) (69,528) Reclassification to real estate owned (39,400) (31,200) (880) Provision for loan losses (73,580) (20,818) — Reclassification to held-for-sale loans — (36) (65,144) Use of loan charge‑offs — — (10,773) Balance at end of year $ 12,377,806 $ 14,254,674 $ 11,981,048 ________________________________________ (1) In accordance with certain loans and investments, we have outstanding unfunded commitments that we are obligated to fund as the borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The COVID-19 pandemic caused significant disruptions to the U.S. and global economies. Although vaccine availability and its usage have led to less negative short-term effects, such as travel bans, quarantines, layoffs and shutdowns, the ongoing longer-term macroeconomic effects on inflation, interest rates, capital markets, labor shortages, property values and global supply chains continue to negatively impact many industries, including the U.S. commercial real estate market. In addition, new strains of COVID-19 continue to emerge, which may cause governments and businesses to re-impose aggressive measures to help slow its spread, making the future impact difficult to predict. The ultimate impact of COVID-19 on the economy, including rising inflation, increasing interest rates, tightening of capital markets and reduced property values, both globally and to our business, makes any estimate or assumption at December 31, 2023 inherently less certain. |
Cash and Cash Equivalents | Cash and Cash Equivalents . All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. We place our cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed FDIC insurance coverage limits and we believe that this risk is not significant. |
Loans, Investments and Securities | Loans, Investments and Securities. Loans held-for-investment are intended to be held-to-maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for credit losses. We invest in preferred equity interests that, in some cases, allow us to participate in a percentage of the underlying property’s cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, we determine whether such investment should be accounted for as a loan, equity interest or as real estate. To date, we have determined that all such investments are properly accounted for and reported as loans. At the time of purchase, we designate a debt security as available-for-sale, held-to-maturity, or trading depending on our ability and intent for the security. Securities available-for-sale, which is included as a component of other assets in the consolidated balance sheets, is reported at fair value with the fluctuations in fair value recognized through earnings. Held-to-maturity securities are carried at cost net of any unamortized premiums or discounts, which are amortized or accreted over the life of the securities. For securities classified as held-to-maturity, an evaluation is performed as to whether a decline in fair value below the amortized cost basis is other-than-temporary. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The process includes, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as our ability and intent to hold the investment to maturity. We closely monitor market conditions on which we base such decisions. |
Allowance for Credit Losses | Allowance for Credit Losses. We estimate allowances for credit losses on our structured loans and investments (including unfunded loan commitments), loss-sharing obligations related to the Fannie Mae DUS program and our held-to-maturity debt securities under CECL based on current expected credit losses for the life of the loan and investment. Our estimation of credit losses utilizes information obtained from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts about the future. We have licensed a third party model to assist with the measurement of expected credit losses, which utilizes incurred losses inherent in the portfolio. The loss factors are determined through the generation of probability of defaults and loss given defaults for similar loans with similar credit. These results require a significant amount of judgment applied in selecting inputs and analyzing the results produced by the models to determine the allowance for credit losses. Changes in such estimates can significantly affect our expected credit losses. Our method for calculating the estimate of expected credit loss considers historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may adjust historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including, but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight-line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e., refinance, sale, loan modification, bankruptcy) which allows us to determine the amount of the expected loss more accurately and reasonably for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications, and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we evaluate whether that loan is impaired. We consider the capitalization and market discount rates, as well as the borrower’s operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We may also obtain a third party appraisal, which may value the collateral through an “as-is” or “stabilized value” methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If, upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses and remove the impaired loan from the CECL analysis described above. If a loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. We record a loss on a restructured loan when we grant a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of income in the period in which the loan was sold. |
Loans Held-for-Sale, Net | Loans Held-for-Sale, Net. Loans held-for-sale, net represents our Agency Business commercial real estate loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as our Private Label loans, which are either sold instantaneously or pooled and securitized, or sold, within 180 days of loan origination. Such loans are reported at the lower of cost or market on an aggregate basis and include the value allocated to the associated future MSRs. During the period prior to its sale, interest income on a loan held-for-sale is calculated in accordance with the terms of the individual loan and the loan origination fees and direct loan origination costs are deferred until the loan is sold. All of our held-for-sale loans are financed with matched borrowings from credit facilities contracted to finance such loans. Interest income and expense are earned or incurred after a loan is closed and before a loan is sold. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated, put presumptively beyond the reach of the entity, even in bankruptcy, (2) the transferee (or if the transferee is an entity whose sole purpose is to engage in securitization and the entity is constrained from pledging or exchanging the assets it receives, each third party holder of its beneficial interests) has the right to pledge or exchange the transferred financial assets, and (3) we or our agents do not maintain effective control over the transferred financial assets or third party beneficial interest related to those transferred assets through an agreement to repurchase them before their maturity. We have determined that all loans sold have met these specific conditions and account for all transfers of mortgage loans as completed sales. |
Allowance for Loss-Sharing Obligations | Allowance for Loss-Sharing Obligations. When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. Generally, we are responsible for losses equal to the first 5% of the UPB and a portion of any additional losses to an overall maximum of 20% of the original principal balance. Fannie Mae bears any remaining loss. In addition, under the terms of the master loss-sharing agreement with Fannie Mae, we are responsible for funding 100% of mortgage delinquencies (principal and interest) and servicing advances (taxes, insurance and foreclosure costs) until the amounts advanced exceed 5% of the UPB at the date of default. Thereafter, we may request interim loss-sharing adjustments which allow us to fund 25% of such advances until final settlement. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. In determining the fair value of the guaranty obligation, we consider the risk profile of the collateral and the historical loss experience in our portfolio. The guaranty obligation is removed only upon either the expiration or settlement of the guaranty. We evaluate the allowance for loss-sharing obligations by monitoring the performance of each loss-sharing loan for events or conditions that may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a loan is determined to be probable and estimable (as the loan is probable of, or is, in foreclosure), we record a liability for the estimated allowance for loss-sharing (a “specific reserve”) by transferring the guarantee obligation recorded on the loan to the specific reserve with any adjustments to this reserve amount recorded in provision for loss sharing in the statements of income. The amount of the allowance considers our assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan’s risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the specific reserves and update loss estimates as current information is received. |
Capitalized Mortgage Servicing Rights | Capitalized Mortgage Servicing Rights. We recognize, as separate assets, rights to service mortgage loans for others, including such rights from our origination of mortgage loans sold with the servicing rights retained, as well as rights associated with acquired MSRs. Income from MSRs related to loans we originate are recognized when we record a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value based on the discounted expected net cash flows associated with the servicing of the loan. When a mortgage loan we originate is sold, we retain the right to service the loan and recognize the MSR at the initial capitalized valuation. We amortize our MSRs using the amortization method, which requires the MSRs to be amortized over the period of estimated net servicing income or loss and that the servicing assets or liabilities be assessed for impairment, or increased obligation, based on the fair value at each reporting date. Amortization of MSRs is recorded as a reduction of servicing revenues, net in the consolidated statements of income. The following assumptions were used in calculating the fair value of our MSRs for the periods presented: Key rates: We used discount rates ranging from 9% to 13%, representing a weighted average discount rate of 12%, based on our best estimate of market discount rates to determine the present value of MSRs. Servicing Cost: A market participant’s estimated future cost to service the loan for the estimated life of the MSR is subtracted from the estimated future cash flows. Estimated Life: We estimate the life of our MSRs based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and are reduced using prepayment rates that consider the note rate of the loan and the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MRSs from loans we originate and sell are estimated considering market prices for similar MSRs, when available, and by estimating the present value of the future net cash flows of the capitalized MSRs, net of adequate compensation for servicing. Adequate compensation is based on the market rate of similar servicing contracts. The fair value of MSRs acquired approximate the purchase price paid. We evaluate the MSR portfolio for impairment on a quarterly basis based on the difference between the aggregate carrying amount of the MSRs and their aggregate fair value. We engage an independent third party valuation expert to assist in determining an estimated fair value of our MSR portfolio on a quarterly basis. For purposes of impairment evaluation, the MSRs are stratified based on predominant risk characteristics of the underlying loans, which we have identified as loan type, note rate and yield maintenance provisions. To the extent that the carrying value of the MSRs exceeds fair value, a valuation allowance is established. We record write-offs of MSRs related to loans that were repaid prior to their expected maturity and loans that have defaulted and determined to be unrecoverable. When this occurs, the write-off is recorded as a direct write-down to the carrying value of MSRs and is included as a component of servicing revenue, net in the consolidated statements of income. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries. For loans that payoff prior to maturity, we may collect a prepayment fee which is included as a component of servicing revenue, net. |
Investments in Equity Affiliates | Investments in Equity Affiliates. We invest in joint ventures that are formed to invest in real estate-related assets or businesses. These joint ventures are not majority owned or controlled by us or are VIEs for which we are not the primary beneficiary, and are not consolidated in our financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. We evaluate these investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. We recognize an impairment loss if the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other-than-temporary. We record our share of the net income and losses from the underlying properties of our equity method investments and any other-than-temporary impairment on these investments as income or losses from equity affiliates in the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Significant judgement is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Certain intangible assets, such as GSE licenses, have been deemed to have indefinite lives while other intangible assets, such as broker and borrower relationships and below market rent have been deemed to have finite lives. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired product lines, scarcity of available GSE licenses, retention trends and our operating plans, among other factors. Goodwill and indefinite-lived intangible assets are not amortized, while finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis. Indefinite-lived intangible assets, including goodwill, are tested for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. In addition, with respect to goodwill, an impairment analysis is performed at least annually. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. We first assess qualitative factors to determine whether it is more likely than not that the fair value is less than the carrying value. If, based on that assessment, we believe it is more likely than not that the fair value is less than the carrying value, then a two-step goodwill impairment test is performed. Based on the impairment analysis performed as of October 1, 2023, there were no indicators that the indefinite-lived intangible assets, including goodwill, were impaired and there were no events or changes in circumstances indicating impairment at December 31, 2023. |
Real Estate Owned and Held-For-Sale | Real Estate Owned and Held-For-Sale. Real estate acquired is recorded at its estimated fair value, less costs to sell, at acquisition and is shown net of accumulated depreciation and impairment charges. Costs incurred in connection with the acquisition of a property are capitalized. Real estate acquired is recorded in other assets on our consolidated balance sheets. We allocate the purchase price of our real estate acquisitions to land, building, tenant improvements, origination asset of the in-place leases, intangibles for the value of any above or below market leases at fair value and to any other identified intangible assets or liabilities. We amortize the value allocated to in-place leases over the remaining lease term, which is reported in depreciation and amortization expense on our consolidated statements of income. The value allocated to above or below market leases are amortized over the remaining lease term as an adjustment to rental income. Real estate assets are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. Our properties are reviewed for impairment each quarter if events or circumstances change indicating that the carrying amount of an asset may not be recoverable. We recognize impairment if the undiscounted estimated cash flows to be generated by an asset is less than the carrying amount of such asset. Measurement of impairment is based on the asset’s estimated fair value. In evaluating for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of the asset in the ordinary course of business. Impairment charges may be necessary in the event discount rates, capitalization rates, lease-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. Real estate is classified as held-for-sale when we commit to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Real estate assets that are expected to be disposed of are valued at the lower of the asset’s carrying amount or its fair value less costs to sell. We recognize sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. A gain or loss on real estate sold is recognized when the collectability of the sale price is reasonably assured, we are not obligated to perform significant activities after the sale and when control of the asset transfers to the buyer. A gain may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. |
Hedging Activities and Derivatives | Hedging Activities and Derivatives . We measure derivative instruments at fair value and record them as assets or liabilities. Fair value adjustments will affect either accumulated other comprehensive income until the hedged item is recognized in earnings, or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. We use derivatives for hedging purposes rather than trading or speculation. Fair values are estimated based on current market data from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. These derivative instruments must be effective in reducing risk exposure to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in earnings. In cases where a derivative instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. We may also enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply, or we elect not to apply hedge accounting. The ineffective portion of a derivative’s change in fair value is recognized immediately in earnings. In connection with our interest rate risk management, we may hedge a portion of our interest rate risk by entering into derivative instrument contracts to manage differences in the amount, timing, and duration of our expected cash receipts and our expected cash payments principally related to our investments and borrowings. Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we have used, and may again in the future, use treasury futures and interest rate and credit default swaps as part of our interest rate risk management strategy. Instruments designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our rate lock and forward sales commitments associated with the Agency Business meet the definition of a derivative and are recorded at fair value. The estimated fair value of rate lock commitments includes the effects of interest rate movements as well as the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Our treasury futures associated with (1) our held-for-sale Agency Business Private Label loans, and (2) our Structured Business SFR loans, do not meet the criteria for hedge accounting and are tied to the five-year and ten-year treasury rates. Our treasury futures are cleared by a central clearing house and variation margin payments (made in cash) are treated as a legal settlement of the derivative itself, as opposed to a pledge of collateral. Realized and unrealized gains and losses related to our treasury futures are recorded through earnings. |
Revenue Recognition | Revenue Recognition. Interest income is recognized on the accrual basis as it is earned. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or “interest” method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in our opinion, a full recovery of all contractual principal and/or interest is not probable. Income recognition is resumed when the loan becomes contractually current, and performance is resumed. We record interest income on certain impaired loans to the extent cash is received, as the borrower continues to make interest payments. We record loan loss reserves related to these loans when it is deemed that full recovery of principal and accrued interest is not probable. Several of our loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to our determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If we cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. We will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves. We do not recognize interest income on loans in which the borrower has failed to make the contractual interest payment due or has not replenished the interest reserve account. Loans are classified as non-performing once the contractual payments exceed 60 days past due and income from the loans is generally recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current, and performance has recommenced. Additionally, interest income is recorded when earned from equity participation interests, referred to as equity kickers. These equity kickers have the potential to generate additional revenues to us as a result of excess cash flow distributions and/or as appreciated properties are sold or refinanced. Gain on sales, including fee-based services, net — Gain on sales, including fee-based services, net includes commitment fees, broker fees, loan assumption fees, loan origination fees and gains on sale of loans of our Agency Business. In some instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, net of any direct loan origination costs incurred, which is recognized upon the sale of the loan. Revenue recognition occurs when the related services are performed, unless significant contingencies exist, and for the sale of loans, when all the incidence of ownership passes to the buyer. Interest income is recognized on the accrual basis as it is earned from loans held-for-sale. Property operating income — Property operating income represents income associated with the operations of commercial real estate properties classified as real estate owned and included in other assets on our consolidated balance sheets. We recognize revenue for these activities when the fees are fixed or determinable, or are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. Other income (loss), net — Other income (loss), net represents loan structuring, modification and defeasance, as well as broker fees and miscellaneous asset management fees associated with our loan and investment portfolio. We recognize these forms of income when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. |
Leases | Leases. We determine if an arrangement is a lease at inception. Our right to use an underlying asset for the lease term is recorded as an operating lease right-of-use (“ROU”) asset and our obligation to make lease payments arising from the lease is recorded as a lease liability. Operating lease ROU assets and lease liabilities are included in other assets and other liabilities, respectively, in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation. We grant stock awards to certain of our employees and directors, consisting of shares of our common stock that vest immediately or annually over a multi-year period, subject to the recipient’s continued service to us. We record stock-based compensation expense at the grant date fair value of the related stock-based award at the grant date (for the portion that vests immediately) or ratably over the respective vesting periods. Dividends are paid on restricted stock as dividends are paid on shares of our common stock whether or not they are vested. Stock-based compensation is disclosed in our consolidated statements of income under “employee compensation and benefits” for employees and under “selling and administrative” expense for the Board of Directors. |
Income Taxes | Income Taxes. We organize and conduct our operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto. A REIT is generally not subject to federal income tax on its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of its REIT-taxable income is distributed and provided that certain other requirements are met. Certain REIT income may be subject to state and local income taxes. The Agency Business mainly operates through a TRS, which is a part of our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. Current and deferred taxes are recorded on the portion of earnings (losses) recognized by us with respect to our interest in TRSs. Deferred income tax assets and liabilities are calculated based on temporary differences between our GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. We evaluate the realizability of our deferred tax assets (e.g., net operating loss and capital loss carryforwards) and recognize a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all our deferred tax assets will not be realized. When evaluating the realizability of our deferred tax assets, we consider estimates of expected future taxable income, existing and projected book/tax differences, tax planning strategies available and the general and industry specific economic outlook. We periodically evaluate tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. We report interest and penalties related to tax uncertainties as a component of the income tax provision. |
Earnings Per Share | Earnings Per Share. We present both basic and diluted earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Effective Date Effect on Financial Statements In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the 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 Description Effective Date Effect on Financial Statements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires public entities to disclose significant expense categories and amounts for each reportable segment, along with information regarding the composition of "other segment items." Additionally, the guidance requires the disclosure of the title and position of the entity's Chief Operating Decision Maker (“CODM”), an explanation of how the CODM utilizes reported profit or loss measures to assess segment performance, and certain segment-related disclosures on an interim basis, which were previously required only annually. Fiscal year 2024, with early adoption permitted The adoption of this guidance will not have a In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance focuses on disclosures around effective tax rates and cash income taxes paid and to improve the usefulness of income tax disclosures for investors. This guidance requires public entities to disclose, on an annual basis, a rate reconciliation presented in both dollars and percentages and to include specific categories and provides further guidance on disaggregation of those categories based on a quantitative threshold equal to 5% or more. This guidance also makes changes to annual disclosures of income taxes paid for all entities by requiring entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. First quarter of 2025, with early adoption permitted The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. We do not expect to early adopt and will add the necessary disclosures upon adoption. Other 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. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Effective Date Effect on Financial Statements In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the 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 Description Effective Date Effect on Financial Statements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires public entities to disclose significant expense categories and amounts for each reportable segment, along with information regarding the composition of "other segment items." Additionally, the guidance requires the disclosure of the title and position of the entity's Chief Operating Decision Maker (“CODM”), an explanation of how the CODM utilizes reported profit or loss measures to assess segment performance, and certain segment-related disclosures on an interim basis, which were previously required only annually. Fiscal year 2024, with early adoption permitted The adoption of this guidance will not have a In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance focuses on disclosures around effective tax rates and cash income taxes paid and to improve the usefulness of income tax disclosures for investors. This guidance requires public entities to disclose, on an annual basis, a rate reconciliation presented in both dollars and percentages and to include specific categories and provides further guidance on disaggregation of those categories based on a quantitative threshold equal to 5% or more. This guidance also makes changes to annual disclosures of income taxes paid for all entities by requiring entities to disclose the amount of income taxes paid, net of refunds received, disaggregated by federal, state and foreign jurisdiction. First quarter of 2025, with early adoption permitted The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. We do not expect to early adopt and will add the necessary disclosures upon adoption. |
Loans and Investments (Tables)
Loans and Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Investments | |
Summary of Structured Business Loan and Investment Portfolio | Our Structured Business loan and investment portfolio consists of ($ in thousands): December 31, 2023 Percent of Loan Wtd. Avg. Wtd. Avg. Wtd. Avg. Wtd. Avg. Bridge loans (5) $ 12,273,244 97 % 679 8.45 % 12.0 0 % 78 % Mezzanine loans 248,457 2 % 49 8.41 % 56.6 48 % 80 % Preferred equity investments 85,741 1 % 17 3.95 % 60.3 53 % 82 % SFR permanent loans 7,564 <1% 2 9.84 % 13.9 0 % 56 % 12,615,006 100 % 747 8.42 % 13.2 1 % 78 % Allowance for credit losses (195,664) Unearned revenue (41,536) Loans and investments, net $ 12,377,806 December 31, 2022 Bridge loans (5) $ 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 % SFR permanent loans 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 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) Including extension options, the weighted average remaining months to maturity at December 31, 2023 and 2022 was 29.4 and 37.9, respectively. (3) 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. (4) 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. (5) At December 31, 2023 and 2022, bridge loans included 354 and 241, respectively, of SFR loans with a total gross loan commitment of $2.51 billion and $1.57 billion, respectively, of which $1.32 billion and $927.4 million, respectively, was funded. |
Schedule of the Loan Portfolio's Internal Risk Ratings and LTV Ratios by Asset Class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2023, and charge-offs recorded during 2023 is as follows ($ in thousands): UPB by Origination Year Total Wtd. Avg. Wtd. Avg. Asset Class / Risk Rating 2023 2022 2021 2020 2019 Prior Multifamily: Pass $ 80,814 $ 53,316 $ 26,185 $ 2,010 $ 4,598 $ 20,300 $ 187,223 Pass/Watch 317,358 2,561,938 2,223,155 119,860 84,600 58,044 5,364,955 Special Mention 24,424 1,762,539 2,631,689 180,750 140,685 350 4,740,437 Substandard — 435,878 322,987 8,006 — — 766,871 Doubtful — — 13,930 14,800 9,765 — 38,495 Total Multifamily $ 422,596 $ 4,813,671 $ 5,217,946 $ 325,426 $ 239,648 $ 78,694 $11,097,981 1 % 80 % Single-Family Rental: Percentage of portfolio 88 % Pass $ 9,709 $ 608 $ — $ — $ — $ — $ 10,317 Pass/Watch 289,482 465,057 144,846 119,692 — — 1,019,077 Special Mention 31,131 45,145 218,697 — — — 294,973 Total Single-Family Rental $ 330,322 $ 510,810 $ 363,543 $ 119,692 $ — $ — $ 1,324,367 0 % 62 % Land: Percentage of portfolio 10 % 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 % 97 % Office: Percentage of portfolio 1 % Special Mention $ — $ — $ — $ 35,410 $ — $ — $ 35,410 Total Office $ — $ — $ — $ 35,410 $ — $ — $ 35,410 0 % 80 % Retail: Percentage of portfolio <1% Substandard $ — $ — $ — $ — $ — $ 19,520 $ 19,520 Total Retail $ — $ — $ — $ — $ — $ 19,520 $ 19,520 0 % 88 % Commercial: Percentage of portfolio < 1% Doubtful $ — $ — $ — $ — $ — $ 1,700 $ 1,700 Total Commercial $ — $ — $ — $ — $ — $ 1,700 $ 1,700 63 % 66 % Percentage of portfolio < 1% Grand Total $ 752,918 $ 5,324,481 $ 5,581,489 $ 488,628 $ 239,648 $ 227,842 $ 12,615,006 1 % 78 % Charge-offs $ — $ — $ — $ — $ — $ 5,700 $ 5,700 |
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): Year Ended December 31, 2023 Multifamily Land Retail Commercial Single- Family Rental Office Other Total Allowance for credit losses: Beginning balance $ 37,961 $ 78,068 $ 5,819 $ 1,700 $ 780 $ 8,162 $ 69 $ 132,559 Provision for credit losses (net of recoveries) 72,886 (10) (2,526) — 844 (2,320) (69) 68,805 Charge-offs — — — — — (5,700) — (5,700) Ending balance $ 110,847 $ 78,058 $ 3,293 $ 1,700 $ 1,624 $ 142 $ — $ 195,664 Year Ended December 31, 2022 Allowance for credit losses: Beginning balance $ 18,707 $ 77,970 $ 5,819 $ 1,700 $ 319 $ 8,073 $ 653 $ 113,241 Provision for credit losses (net of recoveries) 19,254 98 — — 461 89 (584) 19,318 Ending balance $ 37,961 $ 78,068 $ 5,819 $ 1,700 $ 780 $ 8,162 $ 69 $ 132,559 Year Ended December 31, 2021 Allowance for credit losses: Beginning balance $ 36,468 $ 78,150 $ 13,861 $ 1,700 $ 586 $ 1,846 $ 15,718 $ 148,329 Provision for credit losses (net of recoveries) (17,761) (180) (42) — (267) 6,227 (12,292) (24,315) Charge-offs — — (8,000) — — — (2,773) (10,773) Ending balance $ 18,707 $ 77,970 $ 5,819 $ 1,700 $ 319 $ 8,073 $ 653 $ 113,241 |
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): December 31, 2023 Asset Class UPB (1) Carrying Allowance for Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multifamily $ 272,493 $ 260,291 $ 37,750 0 % 100 % Land 134,215 127,868 77,869 0 % 99 % Retail 19,521 15,037 3,292 0 % 88 % Commercial 1,700 1,700 1,700 63 % 66 % Total $ 427,929 $ 404,896 $ 120,611 0 % 99 % 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 nineteen and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2023 and 2022, respectively. |
Schedule of our Non-Performing Loans by Asset Class | A summary of our non-performing loans by asset class is as follows (in thousands): December 31, 2023 December 31, 2022 UPB Less Than Greater Than UPB Less Than Greater Than Multifamily $ 271,532 $ — $ 271,532 $ 2,605 $ — $ 2,605 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 3,445 — 3,445 Total $ 274,152 $ — $ 274,152 $ 7,750 $ — $ 7,750 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivable, Held-for-Sale [Abstract] | |
Schedule of Loans Held-For-Sale, Net | December 31, 2023 December 31, 2022 Fannie Mae $ 477,212 $ 173,020 Private Label 50,235 152,735 FHA 11,350 21,021 SFR - Fixed Rate 8,696 12,352 Freddie Mac 4,832 8,938 552,325 368,066 Fair value of future MSR 7,784 5,557 Unrealized impairment loss (1,989) (15,703) Unearned discount (6,413) (3,850) Loans held-for-sale, net $ 551,707 $ 354,070 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Capitalized MSR Activity | A summary of our capitalized MSR activity is as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Originated Acquired Total Originated Acquired Total Beginning balance $ 386,878 $ 14,593 $ 401,471 $ 395,573 $ 27,161 $ 422,734 Additions 67,612 — 67,612 83,115 — 83,115 Amortization (59,182) (3,911) (63,093) (53,449) (6,427) (59,876) Write-downs and payoffs (12,726) (2,010) (14,736) (38,361) (6,141) (44,502) Ending balance $ 382,582 $ 8,672 $ 391,254 $ 386,878 $ 14,593 $ 401,471 |
Summary of Expected Amortization of Capitalized MSRs Recorded | The expected amortization of capitalized MSRs recorded at December 31, 2023 is as follows (in thousands): Year Amortization 2024 $ 65,500 2025 62,514 2026 56,969 2027 52,366 2028 45,188 Thereafter 108,717 Total $ 391,254 At December 31, 2023, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated annual amortization expense are as follows ($ in thousands): Wtd. Avg. Estimated Amortization Expense for the 2024 2025 2026 2027 Finite‑lived intangible assets: Broker relationships 0.5 $ 1,693 $ — $ — $ — Borrower relationships 2.5 1,440 1,440 780 — Below market leases 3.2 126 126 126 21 2.0 $ 3,259 $ 1,566 $ 906 $ 21 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Product and Geographic Concentrations in Servicing Revenue | Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): December 31, 2023 Product Concentrations Geographic Concentrations Product UPB (1) % of Total State UPB % of Total Fannie Mae $ 21,264,578 69 % Texas 11 % Freddie Mac 5,181,933 17 % New York 11 % Private Label 2,510,449 8 % California 8 % FHA 1,359,624 4 % North Carolina 8 % Bridge (2) 379,425 1 % Georgia 6 % SFR - Fixed Rate 287,446 1 % Florida 6 % Total $ 30,983,455 100 % 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 four bridge loans sold by our Structured Business that we are servicing, see Note 3 for details. (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): Year Ended December 31, 2023 2022 2021 Servicing fees $ 123,975 $ 123,937 $ 123,758 Interest earned on escrows 77,916 24,436 4,191 Prepayment fees 6,387 48,197 38,221 Write-offs of MSRs (14,736) (44,502) (32,741) Amortization of MSRs (63,093) (59,876) (58,615) Servicing revenue, net $ 130,449 $ 92,192 $ 74,814 |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 APL certificates $ 192,791 $ 128,865 $ (31,331) $ 97,534 $ 2,272 B Piece bonds 37,704 26,414 5,442 31,856 3,984 Total $ 230,495 $ 155,279 $ (25,889) $ 129,390 $ 6,256 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): Year Ended December 31, 2023 APL B Piece Total Beginning balance $ 2,783 $ 370 $ 3,153 Provision for credit loss expense/(reversal) (511) 3,614 3,103 Ending balance $ 2,272 $ 3,984 $ 6,256 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 Equity Affiliates December 31, 2023 December 31, 2022 Arbor Residential Investor LLC $ 32,743 $ 46,951 $ — AMAC Holdings III LLC 13,591 15,825 — Fifth Wall Ventures 13,365 13,584 — AWC Real Estate Opportunity Partners I LP 11,671 — — ARSR DPREF I LLC 5,163 — — Lightstone Value Plus REIT L.P. 1,895 1,895 — Docsumo Pte. Ltd. 450 450 — JT Prime 425 425 — West Shore Café — — 1,688 Lexford Portfolio — — — East River Portfolio — — — Total $ 79,303 $ 79,130 $ 1,688 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | The following table sets forth the other intangible assets activity (in thousands): December 31, 2023 December 31, 2022 Gross Accumulated Total Gross Accumulated Total Finite‑lived intangible assets: Broker relationships $ 25,000 $ (23,307) $ 1,693 $ 25,000 $ (20,182) $ 4,818 Borrower relationships 14,400 (10,740) 3,660 14,400 (9,300) 5,100 Below market leases 4,010 (3,611) 399 4,010 (3,485) 525 Infinite‑lived intangible assets: Fannie Mae DUS license 17,100 — 17,100 17,100 — 17,100 Freddie Mac Program Plus license 8,700 — 8,700 8,700 — 8,700 FHA license 3,200 — 3,200 3,200 — 3,200 $ 72,410 $ (37,658) $ 34,752 $ 72,410 $ (32,967) $ 39,443 |
Summary of Future Amortization Expense | The expected amortization of capitalized MSRs recorded at December 31, 2023 is as follows (in thousands): Year Amortization 2024 $ 65,500 2025 62,514 2026 56,969 2027 52,366 2028 45,188 Thereafter 108,717 Total $ 391,254 At December 31, 2023, the weighted average remaining lives of our amortizable finite-lived intangible assets and the estimated annual amortization expense are as follows ($ in thousands): Wtd. Avg. Estimated Amortization Expense for the 2024 2025 2026 2027 Finite‑lived intangible assets: Broker relationships 0.5 $ 1,693 $ — $ — $ — Borrower relationships 2.5 1,440 1,440 780 — Below market leases 3.2 126 126 126 21 2.0 $ 3,259 $ 1,566 $ 906 $ 21 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | Borrowings under our credit and repurchase facilities are as follows ($ in thousands): December 31, 2023 December 31, 2022 UPB Debt Collateral Wtd. Avg. UPB Debt Collateral Wtd. Avg. Structured Business $2.5B joint repurchase facility (2) $ 870,073 $ 868,077 $ 1,371,436 7.81 % $ 1,524,831 $ 1,516,657 $ 2,099,447 6.73 % $1B repurchase facility (2) 386,576 385,779 589,533 7.68 % 499,891 498,666 703,740 6.39 % $500M repurchase facility 448,411 447,490 597,205 8.38 % 155,121 154,653 188,563 7.16 % $499M repurchase facility (2)(3) 355,328 355,328 506,753 7.83 % 351,056 351,056 504,506 6.64 % $450M repurchase facility 263,061 262,820 362,465 7.55 % 344,576 344,237 450,736 6.36 % $250M credit facility 17,997 17,964 23,088 7.32 % 33,246 33,221 43,238 6.25 % $250M repurchase facility — — — — — — — — $225M credit facility 103,552 103,552 139,252 8.04 % 47,398 47,398 81,119 6.90 % $200M repurchase facility 32,599 32,579 41,522 7.03 % 187,428 186,639 239,678 6.18 % $200M repurchase facility 46,403 45,969 68,762 8.04 % 33,155 32,494 47,750 6.95 % $200M repurchase facility 107,355 107,324 141,130 7.44 % 155,240 154,516 200,099 6.33 % $121M loan specific credit facilities 120,660 120,328 161,700 6.91 % 156,543 156,107 225,805 6.42 % $50M credit facility 29,200 29,200 36,500 7.58 % 29,200 29,194 36,500 6.48 % $40M credit facility — — — — — — — — $35M working capital facility — — — — — — — — $25M credit facility 17,093 17,058 22,816 8.09 % 19,177 18,701 24,572 6.99 % Repurchase facility - securities (2)(4) 31,033 31,033 — 7.15 % 12,832 12,832 — 6.99 % Structured Business total $ 2,829,341 $ 2,824,501 $ 4,062,162 7.80 % $ 3,549,694 $ 3,536,371 $ 4,845,753 6.59 % Agency Business $750M ASAP agreement $ 73,011 $ 73,011 $ 73,781 6.49 % $ 29,476 $ 29,476 $ 30,291 5.21 % $500M joint repurchase facility (2) 7,945 7,833 11,350 7.77 % 105,275 104,629 135,641 6.52 % $500M repurchase facility 115,841 115,730 241,895 6.83 % 66,866 66,778 66,866 5.73 % $200M credit facility 187,185 187,138 187,185 6.78 % 31,519 31,475 33,177 5.76 % $100M credit facility — — — — 57,974 57,887 57,974 5.76 % $50M credit facility 29,085 29,083 29,418 6.73 % 14,671 14,664 14,671 5.65 % $1M repurchase facility (2)(3) 531 531 866 7.86 % 534 534 920 6.66 % Agency Business total $ 413,598 $ 413,326 $ 544,495 6.76 % $ 306,315 $ 305,443 $ 339,540 5.96 % Consolidated total $ 3,242,939 $ 3,237,827 $ 4,606,657 7.67 % $ 3,856,009 $ 3,841,814 $ 5,185,293 6.54 % ________________________________________ (1) At December 31, 2023 and 2022, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $4.8 million and $13.3 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $0.3 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 December 31, 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 $43.1 million. At December 31, 2022, this facility was collateralized by B Piece bonds with a carrying value of $33.1 million. Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands): Debt Collateral (3) Loans Cash December 31, 2023 Face Value Carrying Wtd. Avg. UPB Carrying Restricted CLO 19 $ 872,812 $ 868,359 7.84 % $ 1,031,772 $ 1,028,669 $ 4,527 CLO 18 1,652,812 1,647,885 7.29 % 1,784,921 1,780,930 244,629 CLO 17 1,714,125 1,709,800 7.14 % 1,870,388 1,865,878 203,938 CLO 16 1,237,500 1,233,769 6.76 % 1,456,872 1,453,297 847 CLO 15 (5) 674,412 673,367 6.82 % 734,120 732,498 42,600 CLO 14 (5) 589,345 588,176 6.82 % 680,814 679,469 33,271 Total CLOs 6,741,006 6,721,356 7.14 % 7,558,887 7,540,741 529,812 Q Series securitization 215,278 213,654 7.38 % 287,038 286,053 — Total securitized debt $ 6,956,284 $ 6,935,010 7.15 % $ 7,845,925 $ 7,826,794 $ 529,812 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 $21.3 million and $36.8 million of deferred financing fees at December 31, 2023 and 2022, respectively. (2) At December 31, 2023 and 2022, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 7.37% and 6.32%, respectively, and the Q Series securitization was 7.99% and 6.66%, respectively. (3) At December 31, 2023, twelve loans with an aggregate UPB of $308.3 million were deemed a "credit risk" as defined by the collateralized loan obligations ("CLO") indentures. At December 31, 2022, there were no collateral deemed a “credit risk” as defined by the CLO indentures. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $63.9 million and $230.0 million at December 31, 2023 and 2022, respectively. (5) The replenishment periods of CLO 14 and CLO 15 ended in September 2023 and December 2023, respectively. |
Summary of Senior Unsecured Notes | A summary of our senior unsecured notes is as follows ($ in thousands): December 31, 2023 December 31, 2022 Senior Issuance Maturity UPB Carrying Wtd. Avg. UPB Carrying Wtd. Avg. 7.75% Notes (3) Mar. 2023 Mar. 2026 $ 95,000 $ 93,697 7.75 % $ — $ — — 8.50% Notes (3) Oct. 2022 Oct. 2027 150,000 148,023 8.50 % 150,000 147,519 8.50 % 5.00% Notes (3) Dec. 2021 Dec. 2028 180,000 177,875 5.00 % 180,000 177,450 5.00 % 4.50% Notes (3) Aug. 2021 Sept. 2026 270,000 267,763 4.50 % 270,000 266,926 4.50 % 5.00% Notes (3) Apr. 2021 Apr. 2026 175,000 173,542 5.00 % 175,000 172,917 5.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 273,444 4.50 % 275,000 272,960 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 109,721 4.75 % 110,000 109,369 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 89,903 5.75 % 90,000 89,514 5.75 % 8.00% Notes Apr. 2020 Apr. 2023 — — — 70,750 70,613 8.00 % 5.625% Notes Mar. 2018 May 2023 — — — 78,850 78,726 5.63 % $ 1,345,000 $ 1,333,968 5.41 % $ 1,399,600 $ 1,385,994 5.40 % ________________________________________ (1) At December 31, 2023 and 2022, the carrying value is net of deferred financing fees of $11.0 million and $13.6 million, respectively. (2) At December 31, 2023 and 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 December 31, 2023 $ 287,500 $ 4,382 $ 283,118 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 January 2024 are as follows: Cash Flow Triggers CLO 14 CLO 15 CLO 16 CLO 17 CLO 18 CLO 19 Overcollateralization (1) Current 120.00 % 120.85 % 120.81 % 121.71 % 123.87 % 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 151.42 % 157.34 % 150.93 % 136.66 % 137.10 % 134.89 % 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 January 2024 120.00 % 120.85 % 120.81 % 121.71 % 123.87 % 120.30 % 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 % ________________________________________ (1) This table represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented. |
Allowance for Loss-Sharing Ob_2
Allowance for Loss-Sharing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loss Contingency Accrual, Disclosures [Abstract] | |
Schedule of Allowance for Loss-Sharing Obligations | Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Year Ended December 31, 2023 2022 Beginning balance $ 57,168 $ 56,064 Provisions for loss sharing 17,864 3,592 Provisions reversal for loan repayments (2,169) (1,730) Recoveries (charge-offs), net (1,229) (758) Ending balance $ 71,634 $ 57,168 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2023 Fair Value Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities Rate lock commitments 3 $ 26,800 Other assets/other liabilities $ 428 $ (759) Forward sale commitments 33 559,079 Other assets/other liabilities 6,119 (262) Treasury futures 82 8,200 — — $ 594,079 $ 6,547 $ (1,021) 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) Treasury futures 1,298 129,800 — — $ 515,723 $ 1,505 $ (4,897) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2023 December 31, 2022 Principal / Carrying Estimated Principal / Carrying Estimated Financial assets: Loans and investments, net $ 12,615,006 $ 12,377,806 $ 12,452,563 $ 14,456,123 $ 14,254,674 $ 14,468,418 Loans held-for-sale, net 552,325 551,707 566,451 368,066 354,070 362,054 Capitalized mortgage servicing rights, net n/a 391,254 510,472 n/a 401,471 530,913 Securities held-to-maturity, net 230,495 155,279 129,390 234,255 156,547 144,571 Derivative financial instruments 447,609 6,547 6,547 111,950 1,505 1,505 Financial liabilities: Credit and repurchase facilities $ 3,242,939 $ 3,237,827 $ 3,228,324 $ 3,856,009 $ 3,841,814 $ 3,828,192 Securitized debt 6,956,284 6,935,010 6,864,557 7,886,066 7,849,270 7,560,541 Senior unsecured notes 1,345,000 1,333,968 1,214,331 1,399,600 1,385,994 1,262,560 Convertible senior unsecured notes, net 287,500 283,118 301,156 287,500 280,356 287,834 Junior subordinated notes 154,336 143,896 106,444 154,336 143,128 103,977 Derivative financial instruments 138,270 1,021 1,021 273,973 4,897 4,897 |
Schedule of Certain Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The fair values of these financial assets and liabilities are determined using the following input levels at December 31, 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 $ 6,547 $ 6,547 $ — $ 6,119 $ 428 Financial liabilities: Derivative financial instruments $ 1,021 $ 1,021 $ — $ 1,021 $ — |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at December 31, 2023 (in thousands): Fair Value Measurements Using Fair Value Hierarchy Net Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net Loans held-for-investment (1) $ 284,285 $ 284,285 $ — $ — $ 284,285 Loans held-for-sale (2) 18,057 18,057 — 18,057 — $ 302,342 $ 302,342 $ — $ 18,057 $ 284,285 ________________________________________ (1) We had an allowance for credit losses of $120.6 million relating to nineteen impaired loans with an aggregate carrying value, before loan loss reserves, of $404.9 million at December 31, 2023. (2) We have an impairment of $2.0 million related to 6 loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $20.0 million. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | Quantitative information about Level 3 fair value measurements at December 31, 2023 is as follows ($ in thousands): Fair Value Valuation Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Multifamily $ 222,540 Discounted cash flows Capitalization rate 6.35 % Land 50,000 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 11.25 % Retail 11,745 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 3.00 % Derivative financial instruments: Rate lock commitments 428 Discounted cash flows W/A discount rate 13.38 % |
Schedule of Roll Forward of Level 3 Derivative Instruments | Fair Value Measurements Using Significant Unobservable Inputs 2023 2022 2021 Derivative assets and liabilities, net Beginning balance $ 354 $ 295 $ 1,967 Settlements (66,407) (64,896) (112,836) Realized gains recorded in earnings 66,053 64,601 110,869 Unrealized gains recorded in earnings 428 354 295 Ending balance $ 428 $ 354 $ 295 |
Schedule of Components of Fair Value and Other Relevant Information | The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands): December 31, 2023 Notional/ Fair Value of Interest Rate Unrealized Total Fair Value Rate lock commitments $ 26,800 $ 428 $ 759 $ — $ 1,187 Forward sale commitments 559,079 — (759) — (759) Loans held-for-sale, net (1) 552,325 7,784 — (1,989) 5,795 Total $ 8,212 $ — $ (1,989) $ 6,223 ________________________________________ (1) |
Schedule of Fair Value Measurements, Recurring and Nonrecurring | Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 12,377,806 $ 12,452,563 $ — $ — $ 12,452,563 Loans held-for-sale, net 551,707 566,451 — 558,667 7,784 Capitalized mortgage servicing rights, net 391,254 510,472 — — 510,472 Securities held-to-maturity, net 155,279 129,390 — — 129,390 Financial liabilities: Credit and repurchase facilities $ 3,237,827 $ 3,228,324 $ — $ 413,326 $ 2,814,998 Securitized debt 6,935,010 6,864,557 — — 6,864,557 Senior unsecured notes 1,333,968 1,214,331 1,214,331 — — Convertible senior unsecured notes, net 283,118 301,156 — 301,156 — Junior subordinated notes 143,896 106,444 — — 106,444 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | Year Debt Obligations Minimum Annual Operating Lease Payments Total 2024 $ 1,855,247 $ 10,820 $ 1,866,067 2025 2,523,024 11,206 2,534,230 2026 1,996,721 11,297 2,008,018 2027 4,510,642 9,782 4,520,424 2028 946,089 9,064 955,153 Thereafter 154,336 27,755 182,091 Total $ 11,986,059 $ 79,924 $ 12,065,983 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2023 December 31, 2022 Assets: Restricted cash $ 593,956 $ 710,775 Loans and investments, net 7,826,793 8,900,104 Other assets 193,822 174,382 Total assets $ 8,614,571 $ 9,785,261 Liabilities: Securitized debt $ 6,935,010 $ 7,849,270 Other liabilities 32,867 26,754 Total liabilities $ 6,967,877 $ 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 December 31, 2023 is as follows (in thousands): Type Carrying Amount (1) Loans $ 524,915 APL certificates 131,137 B Piece bonds 30,398 Equity investments 29,876 Agency interest only strips 162 Total $ 716,488 ________________________________________ (1) Represents the carrying amount of loans and investments before reserves. At December 31, 2023, $127.9 million of loans to VIEs had corresponding specific loan loss reserves of $77.9 million. The maximum loss exposure at December 31, 2023 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Payable | Distributions. Dividends declared (on a per share basis) for the year ended December 31, 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 October 25, 2023 $ 0.43 September 29, 2023 $ 0.3984375 $ 0.390625 $ 0.390625 December 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): Year Ended December 31, 2023 2022 2021 Basic Diluted Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 330,065 $ 330,065 $ 284,829 $ 284,829 $ 317,412 $ 317,412 Net income attributable to noncontrolling interest (2) — 29,122 — 28,044 — 38,507 Interest expense on convertible notes (3) — 24,832 — 20,166 — — Net income attributable to common stockholders and noncontrolling interest $ 330,065 $ 384,019 $ 284,829 $ 333,039 $ 317,412 $ 355,919 Weighted average shares outstanding 184,641,642 184,641,642 165,355,167 165,355,167 137,830,691 137,830,691 Dilutive effect of OP Units (2) — 16,293,589 — 16,304,638 — 16,818,722 Dilutive effect of convertible notes (3) — 17,294,392 — 16,900,204 — 506,949 Dilutive effect of restricted stock units (4) — 613,990 — 552,621 — 933,233 Weighted average shares outstanding 184,641,642 218,843,613 165,355,167 199,112,630 137,830,691 156,089,595 Net income per common share (1) $ 1.79 $ 1.75 $ 1.72 $ 1.67 $ 2.30 $ 2.28 ________________________________________ (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior notes impacted diluted EPS if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. (4) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax GAAP Income | A summary of our pre-tax GAAP income is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Pre‑tax GAAP income: REIT $ 320,045 $ 303,320 $ 239,356 TRS Consolidated Group 107,858 67,991 184,736 Total pre‑tax GAAP income $ 427,903 $ 371,311 $ 424,092 |
Schedule of Provision for Income Taxes | Our provision for income taxes is comprised as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current tax provision: Federal $ 26,269 $ 14,167 $ 27,454 State 8,427 5,058 7,939 Total 34,696 19,225 35,393 Deferred tax (benefit) provision: Federal $ (5,272) $ (1,373) $ 8,287 State (1,783) (370) 2,744 Valuation allowance (294) 2 (139) Total (7,349) (1,741) 10,892 Total income tax expense $ 27,347 $ 17,484 $ 46,285 |
Schedule of Reconciliation of Income Tax Rate | A reconciliation of our effective income tax rate as a percentage of pre-tax income to the U.S. federal statutory rate is as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % REIT non‑taxable income (15.7) % (17.2) % (11.9) % State and local income taxes, net of federal tax benefit 1.2 % 1.0 % 2.0 % Other (0.1) % (0.1) % (0.2) % Effective income tax rate 6.4 % 4.7 % 10.9 % |
Schedule of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities of our TRS Consolidated Group are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Expenses not currently deductible $ 27,144 $ 22,755 Loan loss reserves 7,088 7,159 Net operating and capital loss carryforwards 188 454 Valuation allowance — (294) Other 346 441 Deferred tax assets, net $ 34,766 $ 30,515 Deferred tax liabilities: Mortgage servicing rights $ 28,286 $ 26,975 Intangibles 5,565 6,457 Interest in equity affiliates—net 2,719 6,237 Deferred tax liabilities, net $ 36,570 $ 39,669 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year Ended December 31, 2023 Structured Agency Other (1) Consolidated Interest income $ 1,279,433 $ 51,786 $ — $ 1,331,219 Interest expense 880,602 22,626 — 903,228 Net interest income 398,831 29,160 — 427,991 Other revenue: Gain on sales, including fee-based services, net — 72,522 — 72,522 Mortgage servicing rights — 69,912 — 69,912 Servicing revenue — 193,542 — 193,542 Amortization of MSRs — (63,093) — (63,093) Property operating income 5,708 — — 5,708 Gain on derivative instruments, net — 6,763 — 6,763 Other income, net 4,868 2,799 — 7,667 Total other revenue 10,576 282,445 — 293,021 Other expenses: Employee compensation and benefits 53,507 106,281 — 159,788 Selling and administrative 23,234 28,026 — 51,260 Property operating expenses 5,897 — — 5,897 Depreciation and amortization 5,052 4,691 — 9,743 Provision for loss sharing (net of recoveries) — 15,695 — 15,695 Provision for credit losses (net of recoveries) 70,344 3,102 — 73,446 Total other expenses 158,034 157,795 — 315,829 Income before extinguishment of debt, income from equity affiliates and income taxes 251,373 153,810 — 405,183 Loss on extinguishment of debt (1,561) — — (1,561) Income from equity affiliates 24,281 — — 24,281 Benefit from (provision for) income taxes 803 (28,150) — (27,347) Net income 274,896 125,660 — 400,556 Preferred stock dividends 41,369 — — 41,369 Net income attributable to noncontrolling interest — — 29,122 29,122 Net income attributable to common stockholders $ 233,527 $ 125,660 $ (29,122) $ 330,065 Year Ended December 31, 2022 Structured Agency Other (1) Consolidated Interest income $ 903,622 $ 44,779 $ — $ 948,401 Interest expense 538,659 18,958 — 557,617 Net interest income 364,963 25,821 — 390,784 Other revenue: Gain on sales, including fee-based services, net — 55,816 — 55,816 Mortgage servicing rights — 69,346 — 69,346 Servicing revenue — 152,068 — 152,068 Amortization of MSRs — (59,876) — (59,876) Property operating income 1,877 — — 1,877 Gain on derivative instruments, net — 26,609 — 26,609 Other income (loss), net (2,360) (15,203) — (17,563) Total other revenue (483) 228,760 — 228,277 Other expenses: Employee compensation and benefits 56,032 105,793 — 161,825 Selling and administrative 26,059 27,931 — 53,990 Property operating expenses 2,136 — — 2,136 Depreciation and amortization 4,041 4,691 — 8,732 Provision for loss sharing (net of recoveries) — 1,862 — 1,862 Provision for credit losses (net of recoveries) 19,770 1,399 — 21,169 Litigation settlement 7,350 — — 7,350 Total other expenses 115,388 141,676 — 257,064 Income before extinguishment of debt, income from equity affiliates and income taxes 249,092 112,905 — 361,997 Loss on extinguishment of debt (4,933) — — (4,933) Income from equity affiliates 14,247 — — 14,247 Provision for income taxes (821) (16,663) — (17,484) Net income 257,585 96,242 — 353,827 Preferred stock dividends 40,954 — — 40,954 Net income attributable to noncontrolling interest — — 28,044 28,044 Net income attributable to common stockholders $ 216,631 $ 96,242 $ (28,044) $ 284,829 Year Ended December 31, 2021 Structured Agency Other (1) Consolidated Interest income $ 427,039 $ 39,048 $ — $ 466,087 Interest expense 194,435 17,570 — 212,005 Net interest income 232,604 21,478 — 254,082 Other revenue: Gain on sales, including fee-based services, net — 123,037 — 123,037 Mortgage servicing rights — 130,230 — 130,230 Servicing revenue — 133,429 — 133,429 Amortization of MSRs — (58,615) — (58,615) Property operating income 185 — — 185 Loss on derivative instruments, net — (2,684) — (2,684) Other income, net 7,491 75 — 7,566 Total other revenue 7,676 325,472 — 333,148 Other expenses: Employee compensation and benefits 51,225 120,571 — 171,796 Selling and administrative 21,064 24,511 — 45,575 Property operating expenses 718 — — 718 Depreciation and amortization 2,524 4,691 — 7,215 Provision for loss sharing (net of recoveries) — (6,167) — (6,167) Provision for credit losses (net of recoveries) (21,223) 110 — (21,113) Total other expenses 54,308 143,716 — 198,024 Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes 185,972 203,234 — 389,206 Loss on extinguishment of debt (3,374) — — (3,374) Gain on real estate 2,466 1,227 — 3,693 Income from equity affiliates 34,567 — — 34,567 Provision for income taxes (5,940) (40,345) — (46,285) Net income 213,691 164,116 — 377,807 Preferred stock dividends 21,888 — — 21,888 Net income attributable to noncontrolling interest — — 38,507 38,507 Net income attributable to common stockholders $ 191,803 $ 164,116 $ (38,507) $ 317,412 ________________________________________ (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. December 31, 2023 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 619,487 $ 309,487 $ 928,974 Restricted cash 595,342 12,891 608,233 Loans and investments, net 12,377,806 — 12,377,806 Loans held-for-sale, net — 551,707 551,707 Capitalized mortgage servicing rights, net — 391,254 391,254 Securities held-to-maturity, net — 155,279 155,279 Investments in equity affiliates 79,303 — 79,303 Goodwill and other intangible assets 12,500 78,878 91,378 Other assets and due from related party 453,073 101,629 554,702 Total assets $ 14,137,511 $ 1,601,125 $ 15,738,636 Liabilities: Debt obligations $ 11,520,492 $ 413,327 $ 11,933,819 Allowance for loss-sharing obligations — 71,634 71,634 Other liabilities and due to related parties 369,588 108,990 478,578 Total liabilities $ 11,890,080 $ 593,951 $ 12,484,031 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 Loan Sales Data | Year Ended December 31, 2023 2022 2021 Origination Data: Structured Business Bridge: Multifamily $ 415,330 $ 5,468,222 $ 9,101,139 SFR 524,060 613,819 415,501 939,390 6,082,041 9,516,640 Mezzanine / Preferred Equity 43,953 69,606 203,875 Total new loan originations $ 983,343 $ 6,151,647 $ 9,720,515 Number of Loans Originated 150 318 422 SFR Commitments $ 1,150,687 $ 1,086,833 $ 760,448 Loan runoff $ 3,354,055 $ 3,818,554 $ 2,516,771 Agency Business Origination Volumes by Investor: Fannie Mae $ 3,773,532 $ 2,919,566 $ 3,389,312 Freddie Mac 756,827 1,353,001 1,016,142 Private Label 299,934 217,542 1,436,853 FHA 257,199 188,394 430,320 SFR - Fixed Rate 19,328 89,683 136,931 Total $ 5,106,820 $ 4,768,186 $ 6,409,558 Total loan commitment volume $ 5,207,148 $ 5,146,718 $ 6,347,752 Agency Business Loan Sales Data: Fannie Mae $ 3,469,340 $ 3,139,414 $ 3,675,763 Freddie Mac 715,530 1,456,595 1,081,702 Private Label 441,319 515,086 985,094 FHA 240,079 241,457 480,275 SFR - Fixed Rate 22,931 86,071 192,335 Total $ 4,889,199 $ 5,438,623 $ 6,415,169 Sales margin (fee-based services as a % of loan sales) (1) 1.48 % 1.34 % 1.92 % MSR rate (MSR income as a % of loan commitments) 1.34 % 1.35 % 2.05 % ________________________________________ (1) 2022 includes $17.1 million of gains recognized on treasury futures related to 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 | December 31, 2023 Key Servicing Metrics for Agency Business: Servicing Wtd. Avg. Servicing Wtd. Avg. Life of Fannie Mae $ 21,264,578 47.4 7.4 Freddie Mac 5,181,933 24.0 8.5 Private Label 2,510,449 19.5 6.7 FHA 1,359,624 14.4 19.2 Bridge 379,425 10.9 3.2 SFR - Fixed Rate 287,446 20.1 5.1 Total $ 30,983,455 39.1 8.0 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) | 12 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Line Items] | |
Period of a loan past due becomes delinquent | 60 days |
Period following acquisition in which the entity finalizes the purchase price allocation of the real estate properties acquired | 1 year |
Fannie Mae | |
Summary of Significant Accounting Policies [Line Items] | |
Percentage of loss obligation on UPB | 5% |
Obligated funding percentage of mortgage delinquencies | 100% |
Percentage of additional loss obligation on UPB | 5% |
Loss sharing funding percentage of advances until final settlement | 25% |
Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Maximum number of days held-for-sale loans are generally transferred or sold | 60 days |
Minimum | Treasury futures | |
Summary of Significant Accounting Policies [Line Items] | |
Treasury futures rate period | 5 years |
Minimum | MSRs | Commercial Loan | Discount rate | |
Summary of Significant Accounting Policies [Line Items] | |
Derivative financial instruments measurement input | 0.09 |
Maximum | |
Summary of Significant Accounting Policies [Line Items] | |
Maximum number of days held-for-sale loans are generally transferred or sold | 180 days |
Maximum | Treasury futures | |
Summary of Significant Accounting Policies [Line Items] | |
Treasury futures rate period | 10 years |
Maximum | MSRs | Commercial Loan | Discount rate | |
Summary of Significant Accounting Policies [Line Items] | |
Derivative financial instruments measurement input | 0.13 |
Maximum | Fannie Mae | |
Summary of Significant Accounting Policies [Line Items] | |
Percentage of loss obligation on UPB | 20% |
Weighted average | MSRs | Commercial Loan | Discount rate | |
Summary of Significant Accounting Policies [Line Items] | |
Derivative financial instruments measurement input | 0.12 |
Loans and Investments - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loans and Investments | |||||
Loans and investments, gross | $ 12,615,006 | $ 14,456,123 | |||
Allowance for credit losses | (195,664) | (132,559) | $ (113,241) | $ (148,329) | |
Unearned revenue | (41,536) | (68,890) | |||
Loans and investments, net | $ 12,377,806 | $ 14,254,674 | 11,981,048 | 5,285,868 | |
Percent of Total | 100% | 100% | |||
Loan Count | loan | 747 | 747 | |||
Wtd. Avg. Pay Rate (as a percent) | 8.42% | 8.17% | |||
Wtd. Avg. Remaining Months to Maturity | 13 months 6 days | 20 months 18 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | 1% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78% | 76% | |||
Mortgage loans on real estate remaining maturity period, including extension options | 29 months 12 days | 37 months 27 days | |||
Single- Family Rental | |||||
Loans and Investments | |||||
Allowance for credit losses | $ (1,624) | $ (780) | $ (319) | $ (586) | |
Bridge Loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 12,273,244 | $ 14,096,054 | $ 70,500 | ||
Percent of Total | 97% | 98% | |||
Loan Count | loan | 679 | 692 | |||
Wtd. Avg. Pay Rate (as a percent) | 8.45% | 8.17% | |||
Wtd. Avg. Remaining Months to Maturity | 12 months | 19 months 24 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | 0% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78% | 76% | |||
Bridge Loans | Single- Family Rental | |||||
Loans and Investments | |||||
Number of loans under the loan portfolio | loan | 354 | 241 | |||
Total loan commitment | $ 2,510,000 | $ 1,570,000 | |||
Mezzanine loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 248,457 | $ 213,499 | |||
Percent of Total | 2% | 1% | |||
Loan Count | loan | 49 | 44 | |||
Wtd. Avg. Pay Rate (as a percent) | 8.41% | 8.13% | |||
Wtd. Avg. Remaining Months to Maturity | 56 months 18 days | 63 months 3 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 48% | 42% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 80% | 77% | |||
Preferred equity investments | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 85,741 | $ 110,725 | |||
Percent of Total | 1% | 1% | |||
Loan Count | loan | 17 | 8 | |||
Wtd. Avg. Pay Rate (as a percent) | 3.95% | 7.63% | |||
Wtd. Avg. Remaining Months to Maturity | 60 months 9 days | 39 months 6 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 53% | 46% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 82% | 79% | |||
SFR Permanent Loans | |||||
Loans and Investments | |||||
Loans and investments, gross | $ 7,564 | $ 35,845 | |||
Percent of Total | 1% | 1% | |||
Loan Count | loan | 2 | 3 | |||
Wtd. Avg. Pay Rate (as a percent) | 9.84% | 8.76% | |||
Wtd. Avg. Remaining Months to Maturity | 13 months 27 days | 32 months 24 days | |||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | 0% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 56% | 58% | |||
SFR Permanent Loans | Single- Family Rental | |||||
Loans and Investments | |||||
Total loan commitment | $ 1,320,000 | $ 927,400 |
Loans and Investments - Concent
Loans and Investments - Concentration Risk (Details) | 12 Months Ended | |
Dec. 31, 2023 loan property | Dec. 31, 2022 property loan | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | 747 | 747 |
Total Assets | Credit Risk Concentration | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | 31 | 38 |
Number of different borrowers | property | 5 | 5 |
Concentration risk threshold percentage | 0.11 | 0.11 |
Total Assets | Credit Risk Concentration | Five Borrowers | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Loans And Investments Portfolio | Credit Risk Concentration | Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Concentration risk, percentage | 24% | 14% |
Loans And Investments Portfolio | Credit Risk Concentration | Florida | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Concentration risk, percentage | 17% | |
Loans And Investments Portfolio | Credit Risk Concentration | New York | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Concentration risk, percentage | 22% | |
Loans And Investments Portfolio | Credit Risk Concentration | No Other State | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Investments | ||
Loans and investments, gross | $ 12,615,006 | $ 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) | 78% | 76% |
Charge-offs, 2023 | $ 0 | |
Charge-offs, 2022 | 0 | |
Charge-offs, 2021 | 0 | |
Charge-offs, 2020 | 0 | |
Charge-offs, 2019 | 0 | |
Charge-offs, Prior | 5,700 | |
Charge-offs, Total | 5,700 | |
Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 752,918 | |
Origination Year 2022 | 5,324,481 | |
Origination year 2021 | 5,581,489 | |
Origination Year 2020 | 488,628 | |
Origination Year 2019 | 239,648 | |
Origination Year Prior | 227,842 | |
Loans and investments, gross | $ 12,615,006 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78% | |
Multifamily | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | $ 422,596 | |
Origination Year 2022 | 4,813,671 | |
Origination year 2021 | 5,217,946 | |
Origination Year 2020 | 325,426 | |
Origination Year 2019 | 239,648 | |
Origination Year Prior | 78,694 | |
Loans and investments, gross | $ 11,097,981 | |
Percentage of Portfolio | 88% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 1% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 80% | |
Multifamily | Credit Risk Concentration | Pass | ||
Loans and Investments | ||
Origination Year 2023 | $ 80,814 | |
Origination Year 2022 | 53,316 | |
Origination year 2021 | 26,185 | |
Origination Year 2020 | 2,010 | |
Origination Year 2019 | 4,598 | |
Origination Year Prior | 20,300 | |
Loans and investments, gross | 187,223 | |
Multifamily | Credit Risk Concentration | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2023 | 317,358 | |
Origination Year 2022 | 2,561,938 | |
Origination year 2021 | 2,223,155 | |
Origination Year 2020 | 119,860 | |
Origination Year 2019 | 84,600 | |
Origination Year Prior | 58,044 | |
Loans and investments, gross | 5,364,955 | |
Multifamily | Credit Risk Concentration | Special Mention | ||
Loans and Investments | ||
Origination Year 2023 | 24,424 | |
Origination Year 2022 | 1,762,539 | |
Origination year 2021 | 2,631,689 | |
Origination Year 2020 | 180,750 | |
Origination Year 2019 | 140,685 | |
Origination Year Prior | 350 | |
Loans and investments, gross | 4,740,437 | |
Multifamily | Credit Risk Concentration | Substandard | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 435,878 | |
Origination year 2021 | 322,987 | |
Origination Year 2020 | 8,006 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 766,871 | |
Multifamily | Credit Risk Concentration | Doubtful | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 13,930 | |
Origination Year 2020 | 14,800 | |
Origination Year 2019 | 9,765 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 38,495 | |
Single- Family Rental | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 330,322 | |
Origination Year 2022 | 510,810 | |
Origination year 2021 | 363,543 | |
Origination Year 2020 | 119,692 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | $ 1,324,367 | |
Percentage of Portfolio | 10% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 62% | |
Single- Family Rental | Credit Risk Concentration | Pass | ||
Loans and Investments | ||
Origination Year 2023 | $ 9,709 | |
Origination Year 2022 | 608 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 10,317 | |
Single- Family Rental | Credit Risk Concentration | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2023 | 289,482 | |
Origination Year 2022 | 465,057 | |
Origination year 2021 | 144,846 | |
Origination Year 2020 | 119,692 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 1,019,077 | |
Single- Family Rental | Credit Risk Concentration | Special Mention | ||
Loans and Investments | ||
Origination Year 2023 | 31,131 | |
Origination Year 2022 | 45,145 | |
Origination year 2021 | 218,697 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 294,973 | |
Land | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 8,100 | |
Origination Year 2019 | 0 | |
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) | 97% | |
Land | Credit Risk Concentration | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2023 | $ 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 4,600 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 4,600 | |
Land | Credit Risk Concentration | Special Mention | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 3,500 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 3,500 | |
Land | Credit Risk Concentration | Substandard | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 127,928 | |
Loans and investments, gross | 127,928 | |
Office | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 35,410 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | $ 35,410 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 80% | |
Office | Credit Risk Concentration | Special Mention | ||
Loans and Investments | ||
Origination Year 2023 | $ 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 35,410 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 0 | |
Loans and investments, gross | 35,410 | |
Retail | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 19,520 | |
Loans and investments, gross | $ 19,520 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 88% | |
Retail | Credit Risk Concentration | Substandard | ||
Loans and Investments | ||
Origination Year 2023 | $ 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 19,520 | |
Loans and investments, gross | 19,520 | |
Commercial | Credit Risk Concentration | ||
Loans and Investments | ||
Origination Year 2023 | 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
Origination Year Prior | 1,700 | |
Loans and investments, gross | $ 1,700 | |
Percentage of Portfolio | 1% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 63% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 66% | |
Commercial | Credit Risk Concentration | Doubtful | ||
Loans and Investments | ||
Origination Year 2023 | $ 0 | |
Origination Year 2022 | 0 | |
Origination year 2021 | 0 | |
Origination Year 2020 | 0 | |
Origination Year 2019 | 0 | |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | $ 132,559 | $ 113,241 | $ 148,329 |
Provision for credit losses (net of recoveries) | 68,805 | 19,318 | (24,315) |
Charge-offs | (5,700) | (10,773) | |
Allowance for credit losses, ending balance | 195,664 | 132,559 | 113,241 |
Multifamily | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 37,961 | 18,707 | 36,468 |
Provision for credit losses (net of recoveries) | 72,886 | 19,254 | (17,761) |
Charge-offs | 0 | 0 | |
Allowance for credit losses, ending balance | 110,847 | 37,961 | 18,707 |
Land | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 78,068 | 77,970 | 78,150 |
Provision for credit losses (net of recoveries) | (10) | 98 | (180) |
Charge-offs | 0 | 0 | |
Allowance for credit losses, ending balance | 78,058 | 78,068 | 77,970 |
Retail | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 5,819 | 5,819 | 13,861 |
Provision for credit losses (net of recoveries) | (2,526) | 0 | (42) |
Charge-offs | 0 | (8,000) | |
Allowance for credit losses, ending balance | 3,293 | 5,819 | 5,819 |
Commercial | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 1,700 | 1,700 | 1,700 |
Provision for credit losses (net of recoveries) | 0 | 0 | 0 |
Charge-offs | 0 | 0 | |
Allowance for credit losses, ending balance | 1,700 | 1,700 | 1,700 |
Single- Family Rental | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 780 | 319 | 586 |
Provision for credit losses (net of recoveries) | 844 | 461 | (267) |
Charge-offs | 0 | 0 | |
Allowance for credit losses, ending balance | 1,624 | 780 | 319 |
Office | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 8,162 | 8,073 | 1,846 |
Provision for credit losses (net of recoveries) | (2,320) | 89 | 6,227 |
Charge-offs | (5,700) | 0 | |
Allowance for credit losses, ending balance | 142 | 8,162 | 8,073 |
Other | |||
Allowance for credit losses: | |||
Allowance for credit losses, beginning balance | 69 | 653 | 15,718 |
Provision for credit losses (net of recoveries) | (69) | (584) | (12,292) |
Charge-offs | 0 | (2,773) | |
Allowance for credit losses, ending balance | $ 0 | $ 69 | $ 653 |
Loans and Investments - Allow_2
Loans and Investments - Allowance for Credit Losses Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amount of provision for credit losses | $ 68,805 | $ 19,318 | $ (24,315) | |
Recoveries of reserves | 4,776 | 1,500 | 24,315 | |
Unfunded commitments related to structured loans and investments | $ 1,310,000 | 1,310,000 | 1,150,000 | |
Accrued interest receivable related to loans | $ 124,200 | $ 124,200 | $ 108,500 | |
Number of loans for which no provision for loan loss made | loan | 0 | 0 | 0 | |
Retail | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amount of provision for credit losses | $ (2,526) | $ 0 | (42) | |
Recoveries of reserves | 2,500 | |||
Office | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amount of provision for credit losses | $ (2,320) | $ 89 | $ 6,227 | |
Recoveries of reserves | $ 2,300 |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Loans and Investments | ||
UPB | $ 427,929 | $ 157,960 |
Carrying Value | 404,896 | 147,131 |
Allowance for Credit Losses | $ 120,611 | $ 85,386 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0.03 |
Wtd. Avg. Last Dollar LTV Ratio | 0.99 | 0.96 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | item | 19 | 7 |
Multifamily | ||
Loans and Investments | ||
UPB | $ 272,493 | |
Carrying Value | 260,291 | |
Allowance for Credit Losses | $ 37,750 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 1 | |
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 |
Retail | ||
Loans and Investments | ||
UPB | $ 19,521 | $ 22,045 |
Carrying Value | 15,037 | 17,563 |
Allowance for Credit Losses | $ 3,292 | $ 5,817 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0.14 |
Wtd. Avg. Last Dollar LTV Ratio | 0.88 | 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 | 0.66 | 0.63 |
Loans and Investments - Non-per
Loans and Investments - Non-performing and other Non-Accrued Loans (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Financing Receivable, Past Due [Line Items] | ||||
Number of loans | loan | 747 | 747 | ||
Carrying value of loans | $ 12,615,006,000 | |||
Accrued interest receivable related to loans | 124,200,000 | $ 108,500,000 | ||
Loans and investments, net allowance for credit losses | $ 195,664,000 | 132,559,000 | $ 113,241,000 | $ 148,329,000 |
Six Loans Collateralized by a Land Development Project | ||||
Financing Receivable, Past Due [Line Items] | ||||
Number of loans with unpaid principal balance | loan | 6 | |||
Unpaid principal balance on loans | $ 121,400,000 | |||
Five Loans Collateralized by a Land Development Project | ||||
Financing Receivable, Past Due [Line Items] | ||||
Number of loans with unpaid principal balance | loan | 5 | |||
Unpaid principal balance on loans | $ 112,100,000 | |||
Weighted average accrual rate of interest (as a percent) | 7.91% | |||
Loans and investments, net allowance for credit losses | $ 71,400,000 | $ 71,400,000 | ||
Bridge Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Number of loans | loan | 679 | 692 | ||
Carrying value of loans | $ 12,273,244,000 | |||
Unpaid principal balance on loans | $ 296,900,000 | |||
Multifamily | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans and investments, net allowance for credit losses | 110,847,000 | $ 37,961,000 | $ 18,707,000 | $ 36,468,000 |
Multifamily | Bridge Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Specifically reserved loan, loan loss reserve | 3,000,000 | |||
Specifically reserved loan, UPB | $ 32,600,000 | |||
Multifamily | Bridge Loans | Financial Asset, Less Than 60 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Number of loans with late and partial payments | loan | 24 | |||
Accrued interest receivable related to loans | $ 956,900,000 | |||
Non-performing loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Number of loans | loan | 16 | 4 | ||
Carrying value of loans | $ 235,600,000 | $ 2,600,000 | ||
Loan loss reserves | 27,100,000 | 5,100,000 | ||
Interest receivable | 92,500,000 | 0 | ||
Non-performing loans | Greater Than 90 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Interest receivable | $ 0 | $ 0 |
Loans and Investments - Non-p_2
Loans and Investments - Non-performing loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
UPB | $ 427,929 | $ 157,960 |
Loans and investments, gross | 12,615,006 | 14,456,123 |
Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 274,152 | 7,750 |
Less Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 0 | 0 |
Greater Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 274,152 | 7,750 |
Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 272,493 | |
Multifamily | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 271,532 | 2,605 |
Multifamily | Less Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 0 | 0 |
Multifamily | Greater Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 271,532 | 2,605 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 1,700 | 1,700 |
Commercial | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 1,700 | 1,700 |
Commercial | Less Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 0 | 0 |
Commercial | Greater Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 1,700 | 1,700 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 19,521 | 22,045 |
Retail | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
UPB | 920 | 3,445 |
Retail | Less Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | 0 | 0 |
Retail | Greater Than 90 Days Past Due | Non-performing loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and investments, gross | $ 920 | $ 3,445 |
Loans and Investments - Loan Mo
Loans and Investments - Loan Modifications (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) loan | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Recoveries of reserves | $ 4,776 | $ 1,500 | $ 24,315 | ||||||
Loans and investments, gross | $ 12,615,006 | 12,615,006 | 14,456,123 | ||||||
Interest reserve | 156,100 | 123,700 | |||||||
Principal paydowns | 3,354,055 | 3,818,554 | 2,516,771 | ||||||
Purchase of loan | 1,362,171 | 5,955,061 | 9,209,475 | ||||||
Loans and investments, net allowance for credit losses | 195,664 | $ 195,664 | $ 132,559 | $ 113,241 | $ 148,329 | ||||
Proceeds from full satisfaction of loans | $ 95,000 | ||||||||
Reversal of allowance for credit losses | 7,500 | ||||||||
Interest income from loans | $ 3,500 | ||||||||
Loan modification, refinancing, and extensions | loan | 0 | 0 | 0 | ||||||
Bridge Loans | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 3.40% | ||||||||
Loans and investments, gross | 12,273,244 | $ 70,500 | $ 12,273,244 | $ 14,096,054 | |||||
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 | ||||||||
Mezzanine Loans | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Loans and investments, gross | 248,457 | 248,457 | 213,499 | ||||||
Multifamily | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Loans and investments, net allowance for credit losses | $ 110,847 | 110,847 | 37,961 | $ 18,707 | 36,468 | ||||
Multifamily | Bridge Loans | Interest Deferral, Extended Maturity, And Interest Forgiveness | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Number of financing receivables modified during period | loan | 3 | ||||||||
Financing receivable, amount modified in period | $ 241,000 | ||||||||
Financing receivable modified, weighted average term increase from modification | 1 year | ||||||||
Percentage of deferred interest waived | 0.25 | ||||||||
Multifamily | Bridge Loans | Interest Deferral, Extended Maturity, And Interest Forgiveness | Minimum | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Percentage of interest foregone | 0.0200 | ||||||||
Multifamily | Bridge Loans | Interest Deferral, Extended Maturity, And Interest Forgiveness | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 4% | ||||||||
Multifamily | Bridge Loans | Interest Deferral, Extended Maturity, And Interest Forgiveness | Maximum | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Percentage of interest foregone | 0.0215 | ||||||||
Multifamily | Bridge Loans | Interest Deferral, Extended Maturity, And Interest Forgiveness | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 4.30% | ||||||||
Multifamily | Bridge Loans | Rate of Interest and Extended Maturity | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing receivable, amount modified in period | $ 86,900 | ||||||||
Financing receivable modified, weighted average term increase from modification | 1 year | ||||||||
Financing receivable modified, pay rate of interest | $ 500 | ||||||||
Multifamily | Bridge Loans | Rate of Interest and Extended Maturity | Secured Overnight Financing Rate (SOFR) | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 4.25% | ||||||||
Office | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Financing receivable, net of reserve | $ 37,100 | 37,100 | |||||||
Loan reserve | 8,000 | 8,000 | |||||||
Recoveries of reserves | 2,300 | ||||||||
Loans and investments, net allowance for credit losses | 142 | 142 | 8,162 | 8,073 | 1,846 | ||||
Retail | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Recoveries of reserves | 2,500 | ||||||||
Loans and investments, net allowance for credit losses | $ 3,293 | $ 3,293 | $ 5,819 | 5,819 | $ 13,861 | ||||
Retail | Loan Modification Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Percentage of interest foregone | 2 | ||||||||
Maturity period (in years) | 3 years | ||||||||
Principal paydowns | $ 6,000 | ||||||||
Principal reduction | 8,000 | ||||||||
Additional reserve deposit | $ 4,600 | ||||||||
Retail | LIBOR | Loan Modification Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 5.50% | ||||||||
LIBOR floor rate | 6.50% | ||||||||
Retail | Bridge Loans | Loan Modification Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Principal amount | $ 26,500 | ||||||||
Retail | Bridge Loans | LIBOR | Loan Modification Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 6% | ||||||||
LIBOR floor rate | 2.375% | ||||||||
Retail | Mezzanine Loans | Loan Modification Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Principal amount | $ 6,100 | ||||||||
Fixed rate of interest (as a percent) | 12% | ||||||||
Hotel | Forbearance Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Fixed rate of interest (as a percent) | 9.50% | ||||||||
Principal reduction | $ 10,000 | ||||||||
Pay rate (as a percent) | 1% | ||||||||
Hotel | LIBOR | Forbearance Agreement | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Variable rate, spread (as a percent) | 3% | ||||||||
LIBOR floor rate | 1.50% | ||||||||
Hotel | Bridge Loans | |||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||
Principal amount | $ 110,000 | ||||||||
Purchase of loan | 60,000 | $ 50,000 | |||||||
Loans and investments, net allowance for credit losses | 7,500 | ||||||||
Loan discount | $ 39,900 | ||||||||
Total discount received | $ 20,100 |
Loans and Investments - Loan Sa
Loans and Investments - Loan Sales (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Apr. 30, 2023 USD ($) loan | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Number of loans sold | loan | 4 | ||||
Bridge loans, total UPB | $ 427,929 | $ 157,960 | |||
Gain on sales, including fee-based services, net | 72,522 | 55,816 | $ 123,037 | ||
Interest reserve | $ 156,100 | $ 123,700 | |||
Number of loans covered under interest reserve | loan | 537 | 480 | |||
Interest reserve, unpaid principal balance | $ 8,440,000 | $ 7,700,000 | |||
Bridge Loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Number of loans sold | loan | 4 | ||||
Bridge loans, total UPB | $ 217,400 | ||||
Unpaid principal balance on loans | $ 296,900 | ||||
Gain on sales, including fee-based services, net | 2,000 | ||||
Financing receivable | 78,000 | ||||
Interest reserve | $ 2,500 | ||||
Bridge Loan and Mezzanine Loan | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Total mortgage loans and mezzanine loan sold | 110,500 | ||||
Loan discount | 102,200 | ||||
Capital investment to be used for future | 66,300 | ||||
Fees and expenses | 9,200 | ||||
Additional potential loan recover | $ 2,800 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | $ 552,325 | $ 368,066 |
Fair value of future MSR | 7,784 | 5,557 |
Unrealized impairment loss | (1,989) | (15,703) |
Unearned discount | (6,413) | (3,850) |
Loans held-for-sale, net | 551,707 | 354,070 |
Fannie Mae | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale, net | 477,212 | 173,020 |
Private Label | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale, net | 50,235 | 152,735 |
FHA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | 11,350 | 21,021 |
SFR - Fixed Rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale, net | 8,696 | 12,352 |
Freddie Mac | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | $ 4,832 | $ 8,938 |
Loans Held-for-Sale, Net - Narr
Loans Held-for-Sale, Net - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sale of loans held-for-sale excluding acquired loans | $ 4,890,000,000 | $ 5,440,000,000 | $ 6,420,000,000 | |
Amount of securitizations | 43,400,000 | 85,700,000 | ||
Unrealized impairment loss | (1,989,000) | (15,703,000) | ||
Loans held-for-sale, nonaccrual | 0 | 0 | ||
Greater Than 90 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-sale 90 or more days past due | $ 0 | 0 | ||
US Government Sponsored-Enterprise Insured Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Period of loans held for sale sold | 60 days | |||
Private Label | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Period of loans held for sale sold | 180 days | |||
Sale of loans held-for-sale excluding acquired loans | $ 489,300,000 | $ 985,100,000 | ||
Gain on sale of financing receivable | $ 900,000 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights - Narrative (Details) - MSRs - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Asset at Amortized Cost [Line Items] | ||
Prepayment fees collected | $ 6,400,000 | $ 48,200,000 |
Valuation allowance | $ 0 | $ 0 |
Weighted average | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Estimated life remaining | 8 years | 8 years 7 months 6 days |
Capitalized Mortgage Servicin_4
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Beginning balance | $ 401,471 | |
Ending balance | 391,254 | $ 401,471 |
MSRs | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Beginning balance | 401,471 | 422,734 |
Additions | 67,612 | 83,115 |
Amortization | (63,093) | (59,876) |
Write-downs and payoffs | (14,736) | (44,502) |
Ending balance | 391,254 | 401,471 |
Expected amortization of capitalized MSRs balances | ||
2024 | 65,500 | |
2025 | 62,514 | |
2026 | 56,969 | |
2027 | 52,366 | |
2028 | 45,188 | |
Thereafter | 108,717 | |
Total | 391,254 | |
Originated | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Beginning balance | 386,878 | 395,573 |
Additions | 67,612 | 83,115 |
Amortization | (59,182) | (53,449) |
Write-downs and payoffs | (12,726) | (38,361) |
Ending balance | 382,582 | 386,878 |
Acquired | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Beginning balance | 14,593 | 27,161 |
Amortization | (3,911) | (6,427) |
Write-downs and payoffs | (2,010) | (6,141) |
Ending balance | $ 8,672 | $ 14,593 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) state | |
Mortgage Servicing [Line Items] | ||
Escrow deposit | $ 1,600,000 | $ 1,700,000 |
Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Escrow deposit | 1,500,000 | 1,500,000 |
MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 30,983,455 | $ 27,998,029 |
MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 100% | 100% |
Texas | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 11% | 11% |
New York | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 11% | 11% |
California | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 8% | 8% |
North Carolina | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 8% | 8% |
Georgia | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 6% | 6% |
Florida | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 6% | 5% |
New Jersey | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 5% | 5% |
Illinois | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 4% | 4% |
Other | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 41% | 42% |
Number of states | state | 0 | 0 |
Fannie Mae | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 21,264,578 | $ 19,038,124 |
Fannie Mae | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 69% | 68% |
Freddie Mac | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 5,181,933 | $ 5,153,207 |
Freddie Mac | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 17% | 18% |
Private Label | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 2,510,449 | $ 2,074,859 |
Private Label | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 8% | 8% |
FHA | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 1,359,624 | $ 1,155,893 |
FHA | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 4% | 4% |
Bridge | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 379,425 | $ 301,182 |
Bridge | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 1% | 1% |
SFR - Fixed Rate | MSRs | ||
Mortgage Servicing [Line Items] | ||
Product Concentrations, UPB | $ 287,446 | $ 274,764 |
SFR - Fixed Rate | MSRs | Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Product and Geographic Concentrations, % of Total | 1% | 1% |
Mortgage Servicing - Narrative
Mortgage Servicing - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Mortgage Servicing [Line Items] | ||
Escrow deposit | $ 1,600 | $ 1,700 |
Fee-based servicing portfolio | ||
Mortgage Servicing [Line Items] | ||
Escrow deposit | $ 1,500 | $ 1,500 |
MSRs | ||
Mortgage Servicing [Line Items] | ||
Weighted average servicing fee (as a percent) | 39.10% | 41.10% |
Mortgage Servicing - Schedule o
Mortgage Servicing - Schedule of Components of Servicing Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Servicing fees | $ 123,975 | $ 123,937 | $ 123,758 |
Interest earned on escrows | 77,916 | 24,436 | 4,191 |
Prepayment fees | 6,387 | 48,197 | 38,221 |
Write-offs of MSRs | (14,736) | (44,502) | (32,741) |
Amortization of MSRs | (63,093) | (59,876) | (58,615) |
Servicing revenue, net | $ 130,449 | $ 92,192 | $ 74,814 |
Securities Held-to-Maturity - N
Securities Held-to-Maturity - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Held-to-Maturity Securities [Line Items] | |||
Held-to-maturity securities, face value | $ 230,495,000 | $ 234,255,000 | |
Impairment of held-to-maturity securities | 0 | ||
Interest income (including the amortization of discount) | 13,600,000 | 18,600,000 | $ 13,200,000 |
APL certificates | |||
Schedule of Held-to-Maturity Securities [Line Items] | |||
Held-to-maturity securities, face value | 192,791,000 | $ 192,791,000 | |
Amount purchased at a discount | $ 119,000,000 | ||
Weighted average variable interest rate (as a percent) | 3.94% | ||
Estimated weighted average remaining maturity period | 6 years 7 months 6 days | ||
Weighted average fixed interest rate | 8.85% | 8.85% | |
After one year through five years | $ 19,700,000 | ||
After five years through ten years | $ 173,100,000 | ||
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 | 6 years 1 month 6 days | ||
Bonds retained percentage | 49% | ||
Initial face value of bonds purchased | $ 106,200,000 | ||
Discounted value of bonds purchased | $ 74,700,000 | ||
Held-to-maturity securities sold, percentage | 51% | ||
Agency B Piece Bonds | |||
Schedule of Held-to-Maturity Securities [Line Items] | |||
Weighted average variable interest rate (as a percent) | 3.74% | ||
After one year through five years | $ 11,400,000 | ||
Weighted average effective interest rate | 11.28% | 12.20% | |
Within one year | $ 5,900,000 | ||
After ten years | $ 20,400,000 |
Securities Held-to-Maturity - S
Securities Held-to-Maturity - Summary of Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Face Value | $ 230,495 | $ 234,255 |
Net Carrying Value | 155,279 | 156,547 |
Unrealized loss | (25,889) | (11,976) |
Estimated Fair Value | 129,390 | 144,571 |
Allowance for Credit Losses | 6,256 | 3,153 |
APL certificates | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Face Value | 192,791 | 192,791 |
Net Carrying Value | 128,865 | 123,475 |
Unrealized loss | (31,331) | (13,348) |
Estimated Fair Value | 97,534 | 110,127 |
Allowance for Credit Losses | 2,272 | 2,783 |
B Piece bonds | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Face Value | 37,704 | 41,464 |
Net Carrying Value | 26,414 | 33,072 |
Unrealized gain | 5,442 | 1,372 |
Estimated Fair Value | 31,856 | 34,444 |
Allowance for Credit Losses | $ 3,984 | $ 370 |
Securities Held-to-Maturity - R
Securities Held-to-Maturity - Roll forward of Allowance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Changes in the allowance for credit losses | |
Allowance for credit loss, beginning balance | $ 3,153 |
Provision for credit loss expense/(reversal) | 3,103 |
Allowance for credit loss, ending balance | 6,256 |
APL certificates | |
Changes in the allowance for credit losses | |
Allowance for credit loss, beginning balance | 2,783 |
Provision for credit loss expense/(reversal) | (511) |
Allowance for credit loss, ending balance | 2,272 |
B Piece bonds | |
Changes in the allowance for credit losses | |
Allowance for credit loss, beginning balance | 370 |
Provision for credit loss expense/(reversal) | 3,614 |
Allowance for credit loss, ending balance | $ 3,984 |
Investments in Equity Affilia_3
Investments in Equity Affiliates (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | $ 79,303 | $ 79,130 |
UPB of Loans to Equity Affiliates | 1,688 | |
Arbor Residential Investor LLC | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 32,743 | 46,951 |
UPB of Loans to Equity Affiliates | 0 | |
AMAC Holdings III LLC | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 13,591 | 15,825 |
UPB of Loans to Equity Affiliates | 0 | |
Fifth Wall Ventures | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 13,365 | 13,584 |
UPB of Loans to Equity Affiliates | 0 | |
AWC Real Estate Opportunity Partners I LP | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 11,671 | 0 |
UPB of Loans to Equity Affiliates | 0 | |
ARSR DPREF I LLC | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 5,163 | 0 |
UPB of Loans to Equity Affiliates | 0 | |
Lightstone Value Plus REIT L.P. | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 1,895 | 1,895 |
UPB of Loans to Equity Affiliates | 0 | |
Docsumo Pte. Ltd. | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 450 | 450 |
UPB of Loans to Equity Affiliates | 0 | |
JT Prime | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 425 | 425 |
UPB of Loans to Equity Affiliates | 0 | |
West Shore Café | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 0 | 0 |
UPB of Loans to Equity Affiliates | 1,688 | |
Lexford Portfolio | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 0 | 0 |
UPB of Loans to Equity Affiliates | 0 | |
East River Portfolio | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in Equity Affiliates | 0 | $ 0 |
UPB of Loans to Equity Affiliates | $ 0 |
Investments in Equity Affilia_4
Investments in Equity Affiliates - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2018 USD ($) | |
Investments in and Advances to Affiliates [Line Items] | |||||
Indirect ownership percentage | 9.20% | ||||
Income from equity affiliates | $ 24,281 | $ 14,247 | $ 34,567 | ||
Upsized amount | $ 140,000 | ||||
Amount of provision for credit losses | 68,805 | 19,318 | (24,315) | ||
Noncontrolling interest invested | $ 18,986 | 17,809 | 48,071 | ||
ARSR DPREF I LLC | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Proceeds from issued debt | 10,200 | ||||
ACM | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Percentage of ownership interest of related party in the entity | 50% | ||||
Arbor Residential Investor LLC | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity investment | 9,600 | $ 9,600 | |||
Percentage of ownership interest of related party in the entity | 50% | ||||
Indirect ownership percentage | 12.30% | ||||
Income from equity affiliates | $ 600 | 4,900 | 34,600 | ||
Distribution received | $ 15,000 | 23,800 | |||
Arbor Residential Investor LLC | Wakefield Investment Holdings Llc | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Percentage of ownership interest of related party in the entity | 50% | ||||
Residential Mortgage Banking Business | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Indirect ownership percentage | 65% | ||||
AMAC Holdings III LLC | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Income from equity affiliates | $ 1,900 | 2,400 | $ 1,300 | ||
Investment in real estate committed | $ 30,000 | ||||
Interest in a real estate investment (as a percent) | 18% | ||||
Contributions made | 700 | $ 700 | 4,900 | ||
Distribution from investment classified as return capital | 1,100 | 500 | |||
Fifth Wall Ventures | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Investment in real estate committed | $ 25,000 | ||||
Interest in a real estate investment (as a percent) | 7.60% | ||||
Contributions made | 1,000 | $ 1,000 | 9,700 | ||
Distribution from investment classified as return capital | 1,600 | ||||
Number of investments | item | 2 | ||||
Loss on investment | $ 1,200 | ||||
AWC Real Estate Opportunity Partners I LP | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Investment in real estate committed | $ 24,000 | ||||
Interest in a real estate investment (as a percent) | 99% | ||||
Investment in real estate | $ 13,000 | $ 13,000 | |||
Affiliate loans, maximum committed amount | 900 | ||||
North Vermont Avenue | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity method investments sold | $ 1,300 | ||||
Noncontrolling interest in equity method investment (as a percent) | 85% | ||||
Other-than-temporary impairment recorded | $ 2,400 | ||||
Noncontrolling interest invested | $ 2,400 | ||||
ARSR DPREF I LLC | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest (as a percent) | 50% | 50% | |||
Total contribution | $ 70,000 | $ 70,000 | |||
Lightstone Value Plus REIT L.P. | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity investment | 1,900 | 1,900 | |||
JT Prime | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity investment | $ 400 | $ 400 | |||
Noncontrolling interest in equity method investment (as a percent) | 50% | ||||
Docsumo Pte. Ltd. | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Noncontrolling interest | 500 | ||||
West Shore Café | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest (as a percent) | 50% | 50% | |||
Loans to affiliates | $ 1,700 | ||||
Other-than-temporary impairment recorded | $ 2,200 | ||||
Amount of provision for credit losses | $ 1,700 | ||||
West Shore Café | Secured Overnight Financing Rate (SOFR) | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Variable rate, spread (as a percent) | 4% | ||||
West Shore Café | Secured Overnight Financing Rate (SOFR) | Minimum | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Variable rate, spread (as a percent) | 0.15% | ||||
Lexford Portfolio | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Distribution received | $ 12,200 | 11,100 | |||
Noncontrolling interest | $ 100 | ||||
East River Portfolio | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest (as a percent) | 5% | 5% | |||
Equity investment made | $ 100 | ||||
Number of properties owned | item | 2 | 2 | |||
East River Portfolio | Chief Executive Officer And Other Related Parties | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Percentage of ownership interest of related party in the entity | 95% | ||||
Equity Participation Interest | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Proceeds from sale | $ 14,500 | $ 14,500 | $ 2,600 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 56.6 | $ 56.6 | |
Amortization expense | $ 4.7 | $ 4.7 | $ 4.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangibles Asset Activity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-lived intangible assets: | ||
Accumulated Amortization | $ (37,658) | $ (32,967) |
Intangible assets | ||
Gross Carrying Value | 72,410 | 72,410 |
Total | 34,752 | 39,443 |
Fannie Mae DUS license | ||
Infinite-lived intangible assets: | ||
Carrying Value | 17,100 | 17,100 |
Freddie Mac Program Plus license | ||
Infinite-lived intangible assets: | ||
Carrying Value | 8,700 | 8,700 |
FHA license | ||
Infinite-lived intangible assets: | ||
Carrying Value | 3,200 | 3,200 |
Broker relationships | ||
Finite-lived intangible assets: | ||
Gross Carrying Value | 25,000 | 25,000 |
Accumulated Amortization | (23,307) | (20,182) |
Total | 1,693 | 4,818 |
Borrower relationships | ||
Finite-lived intangible assets: | ||
Gross Carrying Value | 14,400 | 14,400 |
Accumulated Amortization | (10,740) | (9,300) |
Total | 3,660 | 5,100 |
Below market leases | ||
Finite-lived intangible assets: | ||
Gross Carrying Value | 4,010 | 4,010 |
Accumulated Amortization | (3,611) | (3,485) |
Total | $ 399 | $ 525 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Finite-Lived Intangible Assets, Excluding Servicing Contracts | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Wtd. Avg. Remaining Life (in years) | 2 years |
2024 | $ 3,259 |
2025 | 1,566 |
2026 | 906 |
2027 | $ 21 |
Broker relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Wtd. Avg. Remaining Life (in years) | 6 months |
2024 | $ 1,693 |
2025 | 0 |
2026 | 0 |
2027 | $ 0 |
Borrower relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Wtd. Avg. Remaining Life (in years) | 2 years 6 months |
2024 | $ 1,440 |
2025 | 1,440 |
2026 | 780 |
2027 | $ 0 |
Below market leases | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Wtd. Avg. Remaining Life (in years) | 3 years 2 months 12 days |
2024 | $ 126 |
2025 | 126 |
2026 | 126 |
2027 | $ 21 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Credit and Repurchase Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
UPB | $ 3,242,939 | $ 3,856,009 |
Credit and repurchase facilities | 3,237,827 | 3,841,814 |
Collateral Carrying Value | $ 4,606,657 | $ 5,185,293 |
Debt, Wtd. Avg. Rate | 7.67% | 6.54% |
Structured Business | ||
Debt Instrument [Line Items] | ||
UPB | $ 2,829,341 | $ 3,549,694 |
Credit and repurchase facilities | 2,824,501 | 3,536,371 |
Collateral Carrying Value | $ 4,062,162 | $ 4,845,753 |
Debt, Wtd. Avg. Rate | 7.80% | 6.59% |
Deferred financing fees | $ 4,800 | $ 13,300 |
Structured Business | B Piece bonds | ||
Debt Instrument [Line Items] | ||
Value of portfolio loans and cash as collateral | 43,100 | 33,100 |
Agency Business | ||
Debt Instrument [Line Items] | ||
UPB | 413,598 | 306,315 |
Credit and repurchase facilities | 413,326 | 305,443 |
Collateral Carrying Value | $ 544,495 | $ 339,540 |
Debt, Wtd. Avg. Rate | 6.76% | 5.96% |
Deferred financing fees | $ 300 | $ 900 |
$2.5B joint repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 2,500,000 | |
UPB | 870,073 | 1,524,831 |
Credit and repurchase facilities | 868,077 | 1,516,657 |
Collateral Carrying Value | $ 1,371,436 | $ 2,099,447 |
Debt, Wtd. Avg. Rate | 7.81% | 6.73% |
$1B repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000 | |
UPB | 386,576 | $ 499,891 |
Credit and repurchase facilities | 385,779 | 498,666 |
Collateral Carrying Value | $ 589,533 | $ 703,740 |
Debt, Wtd. Avg. Rate | 7.68% | 6.39% |
$500M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
UPB | 448,411 | $ 155,121 |
Credit and repurchase facilities | 447,490 | 154,653 |
Collateral Carrying Value | $ 597,205 | $ 188,563 |
Debt, Wtd. Avg. Rate | 8.38% | 7.16% |
$500M repurchase facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
UPB | 115,841 | $ 66,866 |
Credit and repurchase facilities | 115,730 | 66,778 |
Collateral Carrying Value | $ 241,895 | $ 66,866 |
Debt, Wtd. Avg. Rate | 6.83% | 5.73% |
$499M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 499,000 | |
UPB | 355,328 | $ 351,056 |
Credit and repurchase facilities | 355,328 | 351,056 |
Collateral Carrying Value | $ 506,753 | $ 504,506 |
Debt, Wtd. Avg. Rate | 7.83% | 6.64% |
$450M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 450,000 | |
UPB | 263,061 | $ 344,576 |
Credit and repurchase facilities | 262,820 | 344,237 |
Collateral Carrying Value | $ 362,465 | $ 450,736 |
Debt, Wtd. Avg. Rate | 7.55% | 6.36% |
$250M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000 | |
UPB | 17,997 | $ 33,246 |
Credit and repurchase facilities | 17,964 | 33,221 |
Collateral Carrying Value | $ 23,088 | $ 43,238 |
Debt, Wtd. Avg. Rate | 7.32% | 6.25% |
$250M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000 | |
UPB | 0 | $ 0 |
Credit and repurchase facilities | 0 | 0 |
Collateral Carrying Value | $ 0 | $ 0 |
Debt, Wtd. Avg. Rate | 0% | 0% |
$225M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 225,000 | |
UPB | 103,552 | $ 47,398 |
Credit and repurchase facilities | 103,552 | 47,398 |
Collateral Carrying Value | $ 139,252 | $ 81,119 |
Debt, Wtd. Avg. Rate | 8.04% | 6.90% |
$200M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
UPB | 32,599 | $ 187,428 |
Credit and repurchase facilities | 32,579 | 186,639 |
Collateral Carrying Value | $ 41,522 | $ 239,678 |
Debt, Wtd. Avg. Rate | 7.03% | 6.18% |
$200M repurchase facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
$200M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
UPB | 46,403 | $ 33,155 |
Credit and repurchase facilities | 45,969 | 32,494 |
Collateral Carrying Value | $ 68,762 | $ 47,750 |
Debt, Wtd. Avg. Rate | 8.04% | 6.95% |
$200M repurchase facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
UPB | 107,355 | $ 155,240 |
Credit and repurchase facilities | 107,324 | 154,516 |
Collateral Carrying Value | $ 141,130 | $ 200,099 |
Debt, Wtd. Avg. Rate | 7.44% | 6.33% |
$121M loan specific credit facilities | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 121,000 | |
UPB | 120,660 | $ 156,543 |
Credit and repurchase facilities | 120,328 | 156,107 |
Collateral Carrying Value | $ 161,700 | $ 225,805 |
Debt, Wtd. Avg. Rate | 6.91% | 6.42% |
$50M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000 | |
UPB | 29,200 | $ 29,200 |
Credit and repurchase facilities | 29,200 | 29,194 |
Collateral Carrying Value | $ 36,500 | $ 36,500 |
Debt, Wtd. Avg. Rate | 7.58% | 6.48% |
$50M credit facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000 | |
UPB | 29,085 | $ 14,671 |
Credit and repurchase facilities | 29,083 | 14,664 |
Collateral Carrying Value | $ 29,418 | $ 14,671 |
Debt, Wtd. Avg. Rate | 6.73% | 5.65% |
$40M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 40,000 | |
UPB | 0 | $ 0 |
Credit and repurchase facilities | 0 | 0 |
Collateral Carrying Value | $ 0 | $ 0 |
Debt, Wtd. Avg. Rate | 0% | 0% |
$35M working capital facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 35,000 | |
UPB | 0 | $ 0 |
Credit and repurchase facilities | 0 | 0 |
Collateral Carrying Value | $ 0 | $ 0 |
Debt, Wtd. Avg. Rate | 0% | 0% |
$25M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 25,000 | |
UPB | 17,093 | $ 19,177 |
Credit and repurchase facilities | 17,058 | 18,701 |
Collateral Carrying Value | $ 22,816 | $ 24,572 |
Debt, Wtd. Avg. Rate | 8.09% | 6.99% |
Repurchase facility - securities | Structured Business | ||
Debt Instrument [Line Items] | ||
UPB | $ 31,033 | $ 12,832 |
Credit and repurchase facilities | 31,033 | 12,832 |
Collateral Carrying Value | $ 0 | $ 0 |
Debt, Wtd. Avg. Rate | 7.15% | 6.99% |
$750M ASAP agreement | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 750,000 | |
UPB | 73,011 | $ 29,476 |
Credit and repurchase facilities | 73,011 | 29,476 |
Collateral Carrying Value | $ 73,781 | $ 30,291 |
Debt, Wtd. Avg. Rate | 6.49% | 5.21% |
Value of portfolio loans and cash as collateral | $ 750,000 | |
$500M joint repurchase facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 500,000 | |
UPB | 7,945 | $ 105,275 |
Credit and repurchase facilities | 7,833 | 104,629 |
Collateral Carrying Value | $ 11,350 | $ 135,641 |
Debt, Wtd. Avg. Rate | 7.77% | 6.52% |
$200M credit facility | Structured Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
$200M credit facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
UPB | 187,185 | $ 31,519 |
Credit and repurchase facilities | 187,138 | 31,475 |
Collateral Carrying Value | $ 187,185 | $ 33,177 |
Debt, Wtd. Avg. Rate | 6.78% | 5.76% |
$100M credit facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 100,000 | |
UPB | 0 | $ 57,974 |
Credit and repurchase facilities | 0 | 57,887 |
Collateral Carrying Value | $ 0 | $ 57,974 |
Debt, Wtd. Avg. Rate | 0% | 5.76% |
$1M repurchase facility | Agency Business | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000 | |
UPB | 531 | $ 534 |
Credit and repurchase facilities | 531 | 534 |
Collateral Carrying Value | $ 866 | $ 920 |
Debt, Wtd. Avg. Rate | 7.86% | 6.66% |
Debt Obligations - Credit and R
Debt Obligations - Credit and Repurchase Facilities Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 15 Months Ended | ||||
Dec. 31, 2023 USD ($) | Aug. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 USD ($) extension | Dec. 31, 2023 USD ($) | Mar. 01, 2024 USD ($) | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | $ 5 | $ 5 | $ 5 | ||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Advance rate (as a percent) | 70% | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Advance rate (as a percent) | 83% | ||||||
Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 8.26% | 8.26% | 8.26% | 6.95% | |||
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreement used to finance leasehold and capital expenditure improvements at corporate office (as a percent) | 69% | 69% | 69% | 73% | |||
Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 2.60% | ||||||
Agency Business | Freddie Mac Mortgage | |||||||
Debt Instrument [Line Items] | |||||||
Committed amount | $ 5 | ||||||
Outstanding letters of credit | $ 5 | 5 | $ 5 | ||||
Agency Business | Fannie Mae Mortgage | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | 64 | 64 | 64 | ||||
Joint Repurchase Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 3,000 | $ 3,000 | 3,000 | ||||
Extension of maturity date (in years) | 1 year | ||||||
Joint Repurchase Facility | Private Label | |||||||
Debt Instrument [Line Items] | |||||||
Advance rate (as a percent) | 80% | ||||||
$2 Billion Joint Repurchase Facility | Forecast | Structured and Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 2,000 | ||||||
$1B repurchase facility | |||||||
Debt Instrument [Line Items] | |||||||
Extension of maturity date (in years) | 1 year | ||||||
$1B repurchase facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000 | $ 1,000 | 1,000 | ||||
$1B repurchase facility | Structured Business | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average loan spread | 0.0240 | ||||||
$1B repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.50% | ||||||
$1B repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.25% | ||||||
$500M repurchase facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500 | $ 500 | $ 500 | ||||
$500M repurchase facility | Structured Business | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.76% | ||||||
$500M repurchase facility | Structured Business | Minimum | Multi Family | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 3.26% | ||||||
$500M repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 0.25% | ||||||
$500M repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.46% | ||||||
$500M repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 3.11% | ||||||
$500M repurchase facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 500 | $ 500 | $ 500 | ||||
$450M Credit Facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 450 | $ 450 | 450 | ||||
Number of extension options | extension | 2 | ||||||
Maturity period extension (in years) | 1 year | ||||||
$450M Credit Facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2% | ||||||
$250M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 250 | $ 250 | 250 | ||||
$250M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Additional borrowing capacity | 25 | $ 25 | 25 | ||||
$250M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.61% | ||||||
$250M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 3.31% | ||||||
$250M repurchase facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 250 | $ 250 | 250 | ||||
Maturity period extension (in years) | 1 year | ||||||
$250M repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2% | ||||||
$250M repurchase facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.40% | ||||||
$225M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 225 | $ 225 | 225 | ||||
$225M credit facility | Structured Business | Minimum | SFR - Fixed Rate | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 3% | ||||||
$225M credit facility | Structured Business | Maximum | SFR - Fixed Rate | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 4.10% | ||||||
$225M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.55% | ||||||
$200M repurchase facility | |||||||
Debt Instrument [Line Items] | |||||||
Extension of maturity date (in years) | 6 months | ||||||
$200M repurchase facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 200 | $ 200 | 200 | ||||
$200M repurchase facility | Structured Business | Minimum | Multi Family | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 1.50% | ||||||
$200M repurchase facility | Structured Business | Maximum | Multi Family | |||||||
Debt Instrument [Line Items] | |||||||
LIBOR floor rate | 1.86% | ||||||
$200M repurchase facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 200 | $ 200 | 200 | ||||
Extension of maturity date (in years) | 1 year | ||||||
$200M repurchase facility | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate increase | 2.55% | ||||||
$200M repurchase facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 200 | $ 200 | 200 | ||||
$200M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 200 | $ 200 | 200 | ||||
$200M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 1.40% | ||||||
$200M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Multi Family | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 1.75% | ||||||
$200M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | Independent living facilities | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 3.50% | ||||||
$200M credit facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 200 | $ 200 | 200 | ||||
Loan Specific Credit Facility $156.5 Million | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 120.7 | $ 120.7 | $ 120.7 | ||||
Loan Specific Credit Facility $156.5 Million | Structured Business | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 1.91% | ||||||
Loan Specific Credit Facility $156.5 Million | Structured Business | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.60% | ||||||
Loan Specific Credit Facility $156.5 Million | Structured Business | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3% | 3% | 3% | ||||
$50M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 50 | $ 50 | $ 50 | ||||
Maturity period extension (in years) | 1 year | ||||||
$50M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.10% | ||||||
$50M credit facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 50 | $ 50 | 50 | ||||
Variable rate, spread (as a percent) | 1.35% | ||||||
$25M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 25 | $ 25 | 25 | ||||
$25M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.60% | ||||||
LIBOR floor rate | 4.25% | ||||||
$40M credit facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 40 | $ 40 | 40 | ||||
Maturity period extension (in years) | 1 year | ||||||
$40M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 2.35% | ||||||
$35M working capital facility | Structured Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 35 | $ 35 | 35 | ||||
$35M working capital facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate, spread (as a percent) | 3% | ||||||
$750M ASAP agreement | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 750 | $ 750 | 750 | ||||
LIBOR floor rate | 0.25% | ||||||
Value of portfolio loans and cash as collateral | 750 | $ 750 | 750 | ||||
Debt instrument, reduced basis spread on variable rate | 1.15% | ||||||
$100M credit facility | Structured Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 100 | $ 100 | 100 | ||||
Variable rate, spread (as a percent) | 1.46% | ||||||
Additional borrowing capacity | 37.5 | $ 37.5 | 37.5 | ||||
Interest rate increase | 1.86% | ||||||
$100M credit facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 100 | $ 100 | 100 | ||||
$75 Million credit facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 75 | $ 75 | $ 75 | ||||
Interest rate | 2.875% | 2.875% | 2.875% | ||||
$500M joint repurchase facility | Agency Business | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500 | $ 500 | $ 500 | ||||
$500M joint repurchase facility | Agency Business | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500 | $ 500 | $ 500 | ||||
Debt instrument, reduced basis spread on variable rate | 1.48% |
Debt Obligations - Collateraliz
Debt Obligations - Collateralized Loan Obligations (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) loan | May 31, 2022 subsidiary | Feb. 28, 2022 | Dec. 31, 2021 USD ($) subsidiary tranche | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) subsidiary tranche | Dec. 31, 2021 USD ($) item tranche | |
Debt Instrument [Line Items] | |||||||
Debt, Carrying Value | $ 7,849,270 | $ 6,935,010 | $ 7,849,270 | ||||
Debt, Wtd. Avg. Rate | 6.54% | 7.67% | 6.54% | ||||
Credit and repurchase facilities, principal/notional amount | $ 3,856,009 | $ 3,242,939 | $ 3,856,009 | ||||
Proceeds from issuance of securitized debt | 0 | 2,762,502 | $ 4,281,512 | ||||
Payoffs and paydowns of collateralized loan obligations | 929,782 | $ 801,141 | 889,150 | ||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Leverage (as a percent) | 75% | 75% | |||||
Number of floating rate loans sold | loan | 11 | ||||||
Notional amount of secured floating rate notes | $ 315,800 | $ 315,800 | |||||
Secured Debt | Multifamily | |||||||
Debt Instrument [Line Items] | |||||||
Number of mortgage liens that were qualified for loan | loan | 21 | ||||||
Secured Debt | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate, excluding fees and costs | 2% | ||||||
Collateralized loan obligations | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | $ 7,649,188 | 6,741,006 | 7,649,188 | ||||
Debt, Carrying Value | $ 7,615,364 | $ 6,721,356 | $ 7,615,364 | ||||
Debt, Wtd. Avg. Rate | 6.10% | 7.14% | 6.10% | ||||
Collateral, UPB | $ 8,619,210 | $ 7,558,887 | $ 8,619,210 | ||||
Collateral, Carrying Value | 8,586,139 | 7,540,741 | 8,586,139 | ||||
Collateral, Restricted Cash | 480,817 | 529,812 | 480,817 | ||||
Deferred financing fees | 36,800 | $ 21,300 | 36,800 | ||||
Number of loans | loan | 12 | ||||||
Collateral at risk | 0 | $ 308,300 | 0 | ||||
CLO 19 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 872,812 | 872,812 | 872,812 | ||||
Debt, Carrying Value | $ 866,605 | $ 868,359 | $ 866,605 | ||||
Debt, Wtd. Avg. Rate | 6.75% | 7.84% | 6.75% | ||||
Collateral, UPB | $ 952,268 | $ 1,031,772 | $ 952,268 | ||||
Collateral, Carrying Value | 947,336 | 1,028,669 | 947,336 | ||||
Collateral, Restricted Cash | $ 64,300 | 4,527 | $ 64,300 | ||||
Weighted average note rate including certain fees and costs (as a percent) | 2.36% | 2.36% | |||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 73,100 | ||||||
Number of tranches of CLO notes issued | tranche | 9 | ||||||
Value of the tranches issued | $ 1,050,000 | $ 1,050,000 | |||||
Credit and repurchase facilities, principal/notional amount | 177,200 | 177,200 | |||||
Value of portfolio loans and cash as collateral | 976,900 | $ 976,900 | |||||
Replacement period | 2 years | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 1,050,000 | $ 1,050,000 | |||||
Leverage (as a percent) | 83% | 83% | |||||
Number of newly-formed wholly-owned subsidiaries | subsidiary | 1 | ||||||
CLO 18 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | $ 1,652,812 | 1,652,812 | $ 1,652,812 | ||||
Debt, Carrying Value | $ 1,645,711 | $ 1,647,885 | $ 1,645,711 | ||||
Debt, Wtd. Avg. Rate | 6.19% | 7.29% | 6.19% | ||||
Collateral, UPB | $ 1,899,174 | $ 1,784,921 | $ 1,899,174 | ||||
Collateral, Carrying Value | 1,891,215 | 1,780,930 | 1,891,215 | ||||
Collateral, Restricted Cash | 85,970 | 244,629 | 85,970 | ||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 347,300 | ||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||
Value of portfolio loans and cash as collateral | 1,700,000 | $ 1,700,000 | |||||
Replacement period | 2 years 6 months | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 2,050,000 | $ 2,050,000 | |||||
Leverage (as a percent) | 81% | 81% | |||||
Number of newly-formed wholly-owned subsidiaries | subsidiary | 2 | ||||||
Proceeds from issuance of securitized debt | $ 1,860,000 | ||||||
Notional amount of residual interest retained | $ 397,200 | $ 397,200 | |||||
CLO 18 | One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.81% | 1.81% | |||||
CLO 18 | External Credit Rating, Non Investment Grade | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Carrying Value | $ 210,100 | $ 210,100 | |||||
Notional amount of residual interest retained | 210,100 | 210,100 | |||||
CLO 17 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 1,714,125 | $ 1,710,000 | 1,714,125 | 1,714,125 | 1,710,000 | ||
Debt, Carrying Value | $ 1,707,676 | $ 1,709,800 | $ 1,707,676 | ||||
Debt, Wtd. Avg. Rate | 6.16% | 7.14% | 6.16% | ||||
Collateral, UPB | $ 1,911,866 | $ 1,870,388 | $ 1,911,866 | ||||
Collateral, Carrying Value | 1,904,732 | 1,865,878 | 1,904,732 | ||||
Collateral, Restricted Cash | 145,726 | 203,938 | 145,726 | ||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 315,000 | ||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||
Value of the tranches issued | $ 1,910,000 | 1,910,000 | |||||
Credit and repurchase facilities, principal/notional amount | 194,300 | 194,300 | |||||
Value of portfolio loans and cash as collateral | $ 1,790,000 | 1,790,000 | |||||
Replacement period | 2 years 6 months | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 2,100,000 | $ 2,100,000 | |||||
Leverage (as a percent) | 82% | 82% | |||||
Number of newly-formed wholly-owned subsidiaries | subsidiary | 2 | ||||||
Notional amount of residual interest retained | $ 385,900 | $ 385,900 | |||||
CLO 17 | One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.68% | 1.68% | |||||
CLO 17 | External Credit Rating, Non Investment Grade | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount of residual interest retained | $ 194,300 | $ 194,300 | |||||
CLO 16 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 1,237,500 | 1,240,000 | 1,237,500 | 1,237,500 | 1,240,000 | ||
Debt, Carrying Value | $ 1,231,887 | $ 1,233,769 | $ 1,231,887 | ||||
Debt, Wtd. Avg. Rate | 5.79% | 6.76% | 5.79% | ||||
Collateral, UPB | $ 1,307,244 | $ 1,456,872 | $ 1,307,244 | ||||
Collateral, Carrying Value | 1,301,794 | 1,453,297 | 1,301,794 | ||||
Collateral, Restricted Cash | 106,495 | 847 | 106,495 | ||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 313,000 | ||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||
Value of the tranches issued | 1,370,000 | $ 1,370,000 | |||||
Credit and repurchase facilities, principal/notional amount | 135,000 | 135,000 | |||||
Value of portfolio loans and cash as collateral | 1,190,000 | $ 1,190,000 | |||||
Replacement period | 2 years 6 months | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 1,500,000 | $ 1,500,000 | |||||
Leverage (as a percent) | 83% | 83% | |||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||
Notional amount of residual interest retained | $ 262,500 | $ 262,500 | |||||
CLO 16 | One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Wtd. Avg. Rate | 1.31% | 1.31% | |||||
CLO 16 | External Credit Rating, Non Investment Grade | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount of residual interest retained | $ 135,000 | $ 135,000 | |||||
CLO 15 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 674,412 | $ 674,400 | 674,412 | 674,412 | $ 674,400 | ||
Debt, Carrying Value | $ 671,532 | $ 673,367 | $ 671,532 | ||||
Debt, Wtd. Avg. Rate | 5.84% | 6.82% | 5.84% | ||||
Collateral, UPB | $ 797,755 | $ 734,120 | $ 797,755 | ||||
Collateral, Carrying Value | 795,078 | 732,498 | 795,078 | ||||
Collateral, Restricted Cash | 2,861 | 42,600 | 2,861 | ||||
Weighted average note rate including certain fees and costs (as a percent) | 1.37% | 1.37% | |||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 162,000 | ||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||
Value of the tranches issued | $ 747,800 | $ 747,800 | |||||
Credit and repurchase facilities, principal/notional amount | 73,400 | 73,400 | |||||
Value of portfolio loans and cash as collateral | 653,000 | $ 653,000 | |||||
Replacement period | 2 years 6 months | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 815,000 | $ 815,000 | |||||
Leverage (as a percent) | 83% | 83% | |||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||
Notional amount of residual interest retained | $ 140,600 | $ 140,600 | |||||
CLO 15 | External Credit Rating, Non Investment Grade | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount of residual interest retained | 73,400 | 73,400 | |||||
CLO 14 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 655,475 | 655,500 | 589,345 | 655,475 | 655,500 | ||
Debt, Carrying Value | $ 652,617 | $ 588,176 | $ 652,617 | ||||
Debt, Wtd. Avg. Rate | 5.80% | 6.82% | 5.80% | ||||
Collateral, UPB | $ 732,247 | $ 680,814 | $ 732,247 | ||||
Collateral, Carrying Value | 730,057 | 679,469 | 730,057 | ||||
Collateral, Restricted Cash | 37,090 | 33,271 | 37,090 | ||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 149,800 | ||||||
Number of tranches of CLO notes issued | tranche | 8 | ||||||
Value of the tranches issued | 724,200 | $ 724,200 | |||||
Credit and repurchase facilities, principal/notional amount | 68,700 | 68,700 | |||||
Value of portfolio loans and cash as collateral | 635,200 | $ 635,200 | |||||
Replacement period | 2 years 6 months | ||||||
Maximum period to acquire additional loan obligations | 180 days | ||||||
Face value of loan obligations will be owned by the issuer | $ 785,000 | $ 785,000 | |||||
Leverage (as a percent) | 84% | 84% | |||||
Number of newly-formed wholly-owned subsidiaries | item | 2 | ||||||
Notional amount of residual interest retained | $ 129,500 | $ 129,500 | |||||
CLO 14 | One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.33% | 1.33% | |||||
CLO 14 | External Credit Rating, Non Investment Grade | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount of residual interest retained | $ 68,700 | $ 68,700 | |||||
CLO 13 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 462,769 | 462,769 | |||||
Debt, Carrying Value | $ 461,005 | $ 461,005 | |||||
Debt, Wtd. Avg. Rate | 6.03% | 6.03% | |||||
Collateral, UPB | $ 552,182 | $ 552,182 | |||||
Collateral, Carrying Value | 550,924 | 550,924 | |||||
Collateral, Restricted Cash | 37,875 | 37,875 | |||||
Payoffs and paydowns of collateralized loan obligations | 1,500 | ||||||
CLO 12 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 379,283 | 379,283 | |||||
Debt, Carrying Value | $ 378,331 | $ 378,331 | |||||
Debt, Wtd. Avg. Rate | 6.09% | 6.09% | |||||
Collateral, UPB | $ 466,474 | $ 466,474 | |||||
Collateral, Carrying Value | 465,003 | 465,003 | |||||
Collateral, Restricted Cash | 500 | 500 | |||||
Q Series securitization | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | 236,878 | 215,278 | 236,878 | ||||
Debt, Carrying Value | $ 233,906 | $ 213,654 | $ 233,906 | ||||
Debt, Wtd. Avg. Rate | 6.30% | 7.38% | 6.30% | ||||
Collateral, UPB | $ 315,837 | $ 287,038 | $ 315,837 | ||||
Collateral, Carrying Value | 313,965 | 286,053 | 313,965 | ||||
Collateral, Restricted Cash | $ 0 | $ 0 | $ 0 | ||||
Weighted average note rate including certain fees and costs (as a percent) | 6.66% | 7.99% | 6.66% | ||||
Total securitized debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | $ 7,886,066 | $ 6,956,284 | $ 7,886,066 | ||||
Debt, Carrying Value | $ 7,849,270 | $ 6,935,010 | $ 7,849,270 | ||||
Debt, Wtd. Avg. Rate | 6.11% | 7.15% | 6.11% | ||||
Collateral, UPB | $ 8,935,047 | $ 7,845,925 | $ 8,935,047 | ||||
Collateral, Carrying Value | 8,900,104 | 7,826,794 | 8,900,104 | ||||
Collateral, Restricted Cash | $ 480,817 | $ 529,812 | $ 480,817 | ||||
Weighted average note rate including certain fees and costs (as a percent) | 6.32% | 7.37% | 6.32% | ||||
CLO VII | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 63,900 | $ 230,000 | |||||
Subordinate Certificates | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt, Face Value | $ 236,900 | 236,900 | |||||
Debt, Carrying Value | $ 79,000 | $ 79,000 |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt, Wtd. Avg. Rate | 7.67% | 6.54% | ||||||
Redemption of aggregate principal amount (as a percent) | 100% | |||||||
Outstanding principal balance repaid | $ 46,200 | |||||||
Structured Business | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Wtd. Avg. Rate | 7.80% | 6.59% | ||||||
Deferred financing fees | $ 4,800 | $ 13,300 | ||||||
Weighted average note rate including certain fees and costs (as a percent) | 8.26% | 6.95% | ||||||
7.75% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.75% | |||||||
Debt, Face Value | $ 95,000 | $ 0 | ||||||
Carrying value | $ 93,697 | $ 0 | ||||||
Debt, Wtd. Avg. Rate | 7.75% | 0% | ||||||
8.50% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8.50% | 8.50% | ||||||
Debt, Face Value | $ 150,000 | $ 150,000 | $ 150,000 | |||||
Carrying value | $ 148,023 | $ 147,519 | ||||||
Debt, Wtd. Avg. Rate | 8.50% | 8.50% | ||||||
Proceeds from issued debt | $ 147,500 | |||||||
5.00% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5% | 5% | ||||||
Debt, Face Value | $ 180,000 | $ 180,000 | $ 180,000 | |||||
Carrying value | $ 177,875 | $ 177,450 | ||||||
Debt, Wtd. Avg. Rate | 5% | 5% | ||||||
Proceeds from issued debt | $ 177,200 | |||||||
4.50% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.50% | 4.50% | 4.50% | |||||
Debt, Face Value | $ 270,000 | $ 270,000 | $ 270,000 | $ 275,000 | ||||
Carrying value | $ 267,763 | $ 266,926 | ||||||
Debt, Wtd. Avg. Rate | 4.50% | 4.50% | ||||||
Proceeds from issued debt | $ 265,800 | $ 271,800 | ||||||
5.00% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5% | 5% | ||||||
Debt, Face Value | $ 175,000 | $ 175,000 | $ 175,000 | |||||
Carrying value | $ 173,542 | $ 172,917 | ||||||
Debt, Wtd. Avg. Rate | 5% | 5% | ||||||
Proceeds from issued debt | $ 172,300 | |||||||
4.50% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.50% | |||||||
Debt, Face Value | $ 275,000 | $ 275,000 | ||||||
Carrying value | $ 273,444 | $ 272,960 | ||||||
Debt, Wtd. Avg. Rate | 4.50% | 4.50% | ||||||
4.75% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.75% | |||||||
Debt, Face Value | $ 110,000 | $ 110,000 | ||||||
Carrying value | $ 109,721 | $ 109,369 | ||||||
Debt, Wtd. Avg. Rate | 4.75% | 4.75% | ||||||
Redemption of aggregate principal amount (as a percent) | 100% | |||||||
5.75% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.75% | 5.75% | ||||||
Debt, Face Value | $ 90,000 | $ 90,000 | $ 90,000 | |||||
Carrying value | $ 89,903 | $ 89,514 | ||||||
Debt, Wtd. Avg. Rate | 5.75% | 5.75% | ||||||
Proceeds from issued debt | $ 88,200 | |||||||
8.00% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8% | 8% | ||||||
Debt, Face Value | $ 0 | $ 70,750 | $ 70,800 | |||||
Carrying value | $ 0 | $ 70,613 | ||||||
Debt, Wtd. Avg. Rate | 0% | 8% | ||||||
Proceeds from issued debt | $ 69,600 | |||||||
5.625% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.625% | 5.625% | 5.625% | |||||
Debt, Face Value | $ 0 | $ 78,850 | $ 125,000 | |||||
Carrying value | $ 0 | $ 78,726 | ||||||
Debt, Wtd. Avg. Rate | 0% | 5.63% | ||||||
Proceeds from issued debt | $ 122,300 | |||||||
Proceeds from issuance of unsecured notes | $ 47,500 | |||||||
Senior unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Face Value | $ 1,345,000 | $ 1,399,600 | ||||||
Carrying value | $ 1,333,968 | $ 1,385,994 | ||||||
Debt, Wtd. Avg. Rate | 5.41% | 5.40% | ||||||
Deferred financing fees | $ 11,000 | $ 13,600 | ||||||
Luxembourg Debt Fund | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average note rate including certain fees and costs (as a percent) | 5.70% | 5.69% | ||||||
4.75% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.75% | 4.75% | ||||||
Debt, Face Value | $ 110,000 | |||||||
Proceeds from issued debt | $ 108,200 | |||||||
Conversion price per share of common stock (in dollars per share) | $ / shares | $ 16.56 | |||||||
Proceeds from convertible debt | $ 203,100 | |||||||
7.375% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.375% | |||||||
7.50% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.50% | |||||||
Debt, Face Value | $ 287,500 | |||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes (in shares) | 0.0603915 | 0.0598480 | ||||||
Conversion price per share of common stock (in dollars per share) | $ / shares | $ 16.71 | |||||||
Proceeds from convertible debt | $ 279,300 | |||||||
4.75% and 5.25% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes and accrued interest settled | $ 5,200 | |||||||
Common stock exchanged (in shares) | shares | 3.3 | |||||||
5.25% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Face Value | $ 66,100 | |||||||
Convertible senior unsecured notes, net | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, Face Value | $ 287,500 | 287,500 | ||||||
Deferred financing fees | $ 4,382 | $ 7,144 | ||||||
Percentage of notes required to be repurchased | 100% | |||||||
7.75% senior unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.75% | |||||||
Carrying value | $ 95,000 | |||||||
Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8% | |||||||
Proceeds from issuance of unsecured notes | $ 93,400 | |||||||
Amount utilized from proceeds of issuance of unsecured note | $ 70,800 |
Debt Obligations - Convertible
Debt Obligations - Convertible Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Net Carrying Value | $ 11,986,059 | ||
Convertible senior unsecured notes, net | |||
Debt Instrument [Line Items] | |||
Debt, Face Value | 287,500 | $ 287,500 | |
Unamortized deferred financing fees | 4,382 | 7,144 | |
Net Carrying Value | 283,118 | 280,356 | |
Interest expense | 24,800 | 19,800 | $ 18,600 |
Interest expense related to cash coupon | 22,100 | 16,900 | 12,800 |
Debt discount | $ 2,700 | $ 2,900 | 2,600 |
Deferred fees expensed as interest expense | $ 3,200 | ||
Cost of the notes (as a percent) | 8.42% | 8.42% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 143,896 | $ 143,128 |
Debt, Wtd. Avg. Rate | 7.67% | 6.54% |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 143,900 | $ 143,100 |
Deferred amount due at maturity | 9,000 | 9,600 |
Deferred fees expensed as interest expense | $ 1,500 | $ 1,600 |
Debt, Wtd. Avg. Rate | 8.48% | 7.65% |
Weighted average note rate including certain fees and costs (as a percent) | 8.56% | 7.74% |
Debt Obligations - Debt Covenan
Debt Obligations - Debt Covenants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Dec. 31, 2023 | |
CLO 14 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120% | |||||
Limit | 118.76% | |||||
Interest Coverage [Abstract] | ||||||
Current | 119.76% | 119.76% | 119.76% | 119.76% | 151.42% | |
Limit | 120% | |||||
CLO 14 | Forecast | ||||||
Interest Coverage [Abstract] | ||||||
Current | 120% | |||||
CLO 15 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.85% | |||||
Limit | 119.85% | |||||
Interest Coverage [Abstract] | ||||||
Current | 120.85% | 120.85% | 120.85% | 120.85% | 157.34% | |
Limit | 120% | |||||
CLO 15 | Forecast | ||||||
Interest Coverage [Abstract] | ||||||
Current | 120.85% | |||||
CLO 16 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.81% | |||||
Limit | 120.21% | |||||
Interest Coverage [Abstract] | ||||||
Current | 121.21% | 121.21% | 121.21% | 121.21% | 150.93% | |
Limit | 120% | |||||
CLO 16 | Forecast | ||||||
Interest Coverage [Abstract] | ||||||
Current | 120.81% | |||||
CLO 17 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 121.71% | |||||
Limit | 121.51% | |||||
Interest Coverage [Abstract] | ||||||
Current | 122.51% | 122.51% | 122.51% | 122.51% | 136.66% | |
Limit | 120% | |||||
CLO 17 | Forecast | ||||||
Interest Coverage [Abstract] | ||||||
Current | 121.71% | |||||
CLO 18 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 123.87% | |||||
Limit | 123.03% | |||||
Interest Coverage [Abstract] | ||||||
Current | 124.03% | 124.03% | 124.03% | 124.03% | 137.10% | |
Limit | 120% | |||||
CLO 18 | Forecast | ||||||
Interest Coverage [Abstract] | ||||||
Current | 123.87% | |||||
CLO 19 | ||||||
Overcollateralization [Abstract] | ||||||
Current | 120.30% | |||||
Limit | 119.30% | |||||
Interest Coverage [Abstract] | ||||||
Current | 120.30% | 120.30% | 120.30% | 120.30% | 134.89% | |
Limit | 120% | |||||
CLO 19 | Forecast | ||||||
Interest Coverage [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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingency Accrual [Roll Forward] | |||
Provisions for loss sharing | $ 15,695 | $ 1,862 | $ (6,167) |
Guarantee obligations | 34,600 | 34,400 | |
Allowance for loss sharing obligations | $ 37,000 | $ 22,700 | |
Loss-sharing obligations (as a percent) | 0.17% | 0.12% | |
Impact of adopting CECL | $ 14,300 | ||
Loss-Sharing Obligation | |||
Loss Contingency Accrual [Roll Forward] | |||
Beginning balance | 57,168 | $ 56,064 | |
Provisions for loss sharing | 17,864 | 3,592 | |
Provisions reversal for loan repayments | (2,169) | (1,730) | |
Recoveries (charge-offs), net | (1,229) | (758) | |
Ending balance | 71,634 | 57,168 | $ 56,064 |
Outstanding advances under the Fannie Mae DUS program | 1,100 | 800 | |
Maximum quantifiable liability | $ 3,950,000 | $ 3,490,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Financial Instruments | |||
Net gain (loss) from changes in the fair value of derivatives | $ 8,800 | $ (3,600) | $ (800) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (loss) on derivative instruments, net | Gain (loss) on derivative instruments, net | Gain (loss) on derivative instruments, net |
Mortgage servicing rights | $ 69,912 | $ 69,346 | $ 130,230 |
Income from Mortgage Service Rights | |||
Derivative Financial Instruments | |||
Mortgage servicing rights | 69,900 | 69,300 | 130,200 |
Agency Business | Other Income | |||
Derivative Financial Instruments | |||
Unrealized gain (loss) on derivatives | (3,700) | 3,500 | (1,500) |
Realized (loss) gain on derivatives | $ (1,600) | (26,900) | $ 100 |
Treasury futures | |||
Derivative Financial Instruments | |||
Derivative, maturity term | 3 months | ||
Derivative asset, treasury futures | $ 1,500 | 9,500 | |
Cash posted as collateral | 1,900 | 6,300 | |
Unrealized gain (loss) on derivatives | $ (400) | $ 3,200 | |
Treasury futures | Minimum | |||
Derivative Financial Instruments | |||
Treasury futures rate period | 5 years | ||
Treasury futures | Maximum | |||
Derivative Financial Instruments | |||
Treasury futures rate period | 10 years | ||
Credit Default Swap | |||
Derivative Financial Instruments | |||
Derivative swap default credit | 5 years |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Non-Qualifying Derivative Financial Instruments (Details) $ in Thousands | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item |
Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Notional Value | $ 594,079 | $ 515,723 |
Fair Value, Derivative Assets | 6,547 | 1,505 |
Fair Value, Derivative Liabilities | (1,021) | $ (4,897) |
Rate lock commitments | ||
Derivative Financial Instruments | ||
Notional Value | $ 26,800 | |
Rate lock commitments | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | item | 3 | 6 |
Notional Value | $ 26,800 | $ 91,472 |
Fair Value, Derivative Assets | 428 | 354 |
Fair Value, Derivative Liabilities | (759) | $ (1,070) |
Forward sale commitments | ||
Derivative Financial Instruments | ||
Notional Value | $ 559,079 | |
Forward sale commitments | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | item | 33 | 27 |
Notional Value | $ 559,079 | $ 294,451 |
Fair Value, Derivative Assets | 6,119 | 1,151 |
Fair Value, Derivative Liabilities | $ (262) | $ (3,827) |
Treasury futures | Non-Qualifying | Agency Business | ||
Derivative Financial Instruments | ||
Count | item | 82 | 1,298 |
Notional Value | $ 8,200 | $ 129,800 |
Fair Value, Derivative Assets | 0 | 0 |
Fair Value, Derivative Liabilities | $ 0 | $ 0 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets: | ||||
Loans and investments, net - Principal/Notional Amount | $ 12,615,006 | $ 14,456,123 | ||
Loans and investments, net | 12,377,806 | 14,254,674 | $ 11,981,048 | $ 5,285,868 |
Loans held-for-sale, net - Principal/Notional Amount | 552,325 | 368,066 | ||
Loans held-for-sale, net | 552,325 | 368,066 | ||
Securities, held-to-maturity, net - Principal/Notional Amount | 230,495 | 234,255 | ||
Securities held-to-maturity, net | 155,279 | 156,547 | ||
Derivative financial instruments - Principal/Notional Amount | $ 447,609 | $ 111,950 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Financial liabilities: | ||||
Credit and repurchase facilities, principal/notional amount | $ 3,242,939 | $ 3,856,009 | ||
Credit and repurchase facilities | 3,237,827 | 3,841,814 | ||
Securitized debt | 6,935,010 | 7,849,270 | ||
Senior unsecured notes | 1,333,968 | 1,385,994 | ||
Convertible senior unsecured notes, net | 283,118 | 280,356 | ||
Junior subordinated notes | 143,896 | 143,128 | ||
Derivative financial instruments - Principal/Notional Amount | $ 138,270 | $ 273,973 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | ||
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 | $ 12,377,806 | $ 14,254,674 | ||
Loans held-for-sale, net | 551,707 | 354,070 | ||
Capitalized mortgage servicing rights, net | 391,254 | 401,471 | ||
Securities held-to-maturity, net | 155,279 | 156,547 | ||
Derivative financial instruments | 6,547 | 1,505 | ||
Financial liabilities: | ||||
Credit and repurchase facilities | 3,237,827 | 3,841,814 | ||
Securitized debt | 6,935,010 | 7,849,270 | ||
Senior unsecured notes | 1,333,968 | 1,385,994 | ||
Convertible senior unsecured notes, net | 283,118 | 280,356 | ||
Junior subordinated notes | 143,896 | 143,128 | ||
Derivative financial instruments | 1,021 | 4,897 | ||
Estimated Fair Value | ||||
Financial assets: | ||||
Loans and investments, net | 12,452,563 | 14,468,418 | ||
Loans held-for-sale, net | 566,451 | 362,054 | ||
Capitalized mortgage servicing rights, net | 510,472 | 530,913 | ||
Securities held-to-maturity, net | 129,390 | 144,571 | ||
Derivative financial instruments | 6,547 | 1,505 | ||
Financial liabilities: | ||||
Credit and repurchase facilities | 3,228,324 | 3,828,192 | ||
Securitized debt | 6,864,557 | 7,560,541 | ||
Senior unsecured notes | 1,214,331 | 1,262,560 | ||
Convertible senior unsecured notes, net | 301,156 | 287,834 | ||
Junior subordinated notes | 106,444 | 103,977 | ||
Derivative financial instruments | 1,021 | 4,897 | ||
Securitized debt | ||||
Financial liabilities: | ||||
Debt face value issued to third parties | 6,956,284 | 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, net | ||||
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 | $ 143,900 | $ 143,100 |
Fair Value - Measurement on Rec
Fair Value - Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Financial assets: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Impaired loans, net | $ 404,896 | $ 147,131 |
Allowance for credit losses on impaired loans | $ 120,600 | |
Number of impaired loans | loan | 19 | |
Aggregate carrying value of impaired loans before reserves | $ 404,900 | |
Impairment loss | $ (2,000) | |
Number of impaired loans held-for-sale | loan | 6 | |
Unrealized impairment losses | $ 20,000 | |
Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 6,547 | 1,505 |
Impaired loans, net | 302,342 | |
Financial liabilities: | ||
Derivative financial instruments | 1,021 | 4,897 |
Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 6,547 | 1,505 |
Impaired loans, net | 302,342 | |
Financial liabilities: | ||
Derivative financial instruments | 1,021 | $ 4,897 |
Recurring Basis | Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 6,547 | |
Financial liabilities: | ||
Derivative financial instruments | 1,021 | |
Recurring Basis | Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 6,547 | |
Financial liabilities: | ||
Derivative financial instruments | 1,021 | |
Nonrecurring Basis | Carrying Value | ||
Financial assets: | ||
Loans held-for-investment | 284,285 | |
Loans held-for-sale | 18,057 | |
Nonrecurring Basis | Fair Value | ||
Financial assets: | ||
Loans held-for-investment | 284,285 | |
Loans held-for-sale | 18,057 | |
Level 1 | ||
Financial assets: | ||
Impaired loans, net | 0 | |
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 | |
Level 2 | ||
Financial assets: | ||
Impaired loans, net | 18,057 | |
Level 2 | Recurring Basis | ||
Financial assets: | ||
Derivative financial instruments | 6,119 | |
Financial liabilities: | ||
Derivative financial instruments | 1,021 | |
Level 2 | Nonrecurring Basis | ||
Financial assets: | ||
Loans held-for-investment | 0 | |
Loans held-for-sale | 18,057 | |
Level 3 | ||
Financial assets: | ||
Impaired loans, net | 284,285 | |
Level 3 | Recurring Basis | ||
Financial assets: | ||
Derivative financial instruments | 428 | |
Financial liabilities: | ||
Derivative financial instruments | 0 | |
Level 3 | Nonrecurring Basis | ||
Financial assets: | ||
Loans held-for-investment | 284,285 | |
Loans held-for-sale | $ 0 |
Fair Value - Level 3 Inputs (De
Fair Value - Level 3 Inputs (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Multifamily | Capitalization rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.0635 |
Land | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.2150 |
Land | Revenue growth rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.0300 |
Retail | Capitalization rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.0925 |
Retail | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.1125 |
Retail | Revenue growth rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.0300 |
Rate lock commitments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Asset, Measurement Input [Extensible List] | Discount rate |
Rate lock commitments | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments measurement input | 0.1338 |
Level 3 | Multifamily | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impaired loans, fair value | $ 222,540 |
Level 3 | Land | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impaired loans, fair value | 50,000 |
Level 3 | Retail | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impaired loans, fair value | 11,745 |
Level 3 | Rate lock commitments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative financial instruments | $ 428 |
Derivative Asset, Valuation Technique [Extensible List] | Valuation Technique, Discounted Cash Flow [Member] |
Fair Value - Level 3 Derivative
Fair Value - Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 354 | $ 295 | $ 1,967 |
Settlements | (66,407) | (64,896) | (112,836) |
Realized gains recorded in earnings | 66,053 | 64,601 | 110,869 |
Unrealized gains recorded in earnings | 428 | 354 | 295 |
Ending balance | $ 428 | $ 354 | $ 295 |
Fair Value - Components of Fair
Fair Value - Components of Fair Value and Other Relevant Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value of Servicing Rights | $ 8,212 |
Interest Rate Movement Effect | 0 |
Unrealized Impairment Loss | (1,989) |
Total Fair Value Adjustment | 6,223 |
Rate lock commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/ Principal Amount | 26,800 |
Fair Value of Servicing Rights | 428 |
Interest Rate Movement Effect | 759 |
Unrealized Impairment Loss | 0 |
Total Fair Value Adjustment | 1,187 |
Forward sale commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/ Principal Amount | 559,079 |
Fair Value of Servicing Rights | 0 |
Interest Rate Movement Effect | (759) |
Unrealized Impairment Loss | 0 |
Total Fair Value Adjustment | (759) |
Loans held-for-sale, net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/ Principal Amount | 552,325 |
Fair Value of Servicing Rights | 7,784 |
Interest Rate Movement Effect | 0 |
Unrealized Impairment Loss | (1,989) |
Total Fair Value Adjustment | $ 5,795 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||||
Loans and investments, net | $ 12,377,806 | $ 14,254,674 | $ 11,981,048 | $ 5,285,868 |
Loans held-for-sale, net | 552,325 | 368,066 | ||
Securities held-to-maturity, net | 155,279 | 156,547 | ||
Financial liabilities: | ||||
Credit and repurchase facilities | 3,237,827 | 3,841,814 | ||
Securitized debt | 6,935,010 | 7,849,270 | ||
Senior unsecured notes | 1,333,968 | 1,385,994 | ||
Convertible senior unsecured notes, net | 283,118 | 280,356 | ||
Junior subordinated notes | 143,896 | 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 | 1,214,331 | |||
Convertible senior unsecured notes, net | 0 | |||
Junior subordinated notes | 0 | |||
Level 2 | ||||
Financial assets: | ||||
Loans and investments, net | 0 | |||
Loans held-for-sale, net | 558,667 | |||
Capitalized mortgage servicing rights, net | 0 | |||
Securities held-to-maturity, net | 0 | |||
Financial liabilities: | ||||
Credit and repurchase facilities | 413,326 | |||
Securitized debt | 0 | |||
Senior unsecured notes | 0 | |||
Convertible senior unsecured notes, net | 301,156 | |||
Junior subordinated notes | 0 | |||
Level 3 | ||||
Financial assets: | ||||
Loans and investments, net | 12,452,563 | |||
Loans held-for-sale, net | 7,784 | |||
Capitalized mortgage servicing rights, net | 510,472 | |||
Securities held-to-maturity, net | 129,390 | |||
Financial liabilities: | ||||
Credit and repurchase facilities | 2,814,998 | |||
Securitized debt | 6,864,557 | |||
Senior unsecured notes | 0 | |||
Convertible senior unsecured notes, net | 0 | |||
Junior subordinated notes | 106,444 | |||
Carrying Value | ||||
Financial assets: | ||||
Loans and investments, net | 12,377,806 | 14,254,674 | ||
Loans held-for-sale, net | 551,707 | 354,070 | ||
Capitalized mortgage servicing rights, net | 391,254 | |||
Securities held-to-maturity, net | 155,279 | 156,547 | ||
Financial liabilities: | ||||
Credit and repurchase facilities | 3,237,827 | 3,841,814 | ||
Securitized debt | 6,935,010 | 7,849,270 | ||
Senior unsecured notes | 1,333,968 | 1,385,994 | ||
Convertible senior unsecured notes, net | 283,118 | 280,356 | ||
Junior subordinated notes | 143,896 | 143,128 | ||
Fair Value | ||||
Financial assets: | ||||
Loans and investments, net | 12,452,563 | 14,468,418 | ||
Loans held-for-sale, net | 566,451 | 362,054 | ||
Capitalized mortgage servicing rights, net | 510,472 | |||
Securities held-to-maturity, net | 129,390 | 144,571 | ||
Financial liabilities: | ||||
Credit and repurchase facilities | 3,228,324 | 3,828,192 | ||
Securitized debt | 6,864,557 | 7,560,541 | ||
Senior unsecured notes | 1,214,331 | 1,262,560 | ||
Convertible senior unsecured notes, net | 301,156 | 287,834 | ||
Junior subordinated notes | $ 106,444 | $ 103,977 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Agency Business Commitments [Line Items] | |||
Cash collateral per securitization | $ 5,000 | ||
Outstanding letters of credit | 5,000 | ||
Debt Obligations | |||
2024 | 1,855,247 | ||
2025 | 2,523,024 | ||
2026 | 1,996,721 | ||
2027 | 4,510,642 | ||
2028 | 946,089 | ||
Thereafter | 154,336 | ||
Net Carrying Value | 11,986,059 | ||
Minimum Annual Operating Lease Payments | |||
2024 | 10,820 | ||
2025 | 11,206 | ||
2026 | 11,297 | ||
2027 | 9,782 | ||
2028 | 9,064 | ||
Thereafter | 27,755 | ||
Total | 79,924 | ||
Total | |||
2024 | 1,866,067 | ||
2025 | 2,534,230 | ||
2026 | 2,008,018 | ||
2027 | 4,520,424 | ||
2028 | 955,153 | ||
Thereafter | 182,091 | ||
Total | $ 12,065,983 | ||
Operating Lease, Weighted average remaining lease term (in years) | 7 years 7 months 6 days | 8 years 2 months 12 days | |
Operating Lease, Weighted average discount rate (as a percent) | 5.70% | 6.80% | |
Operating lease expense | $ 10,900 | $ 9,600 | $ 9,300 |
Unfunded CLO Commitments | |||
Unfunded commitments related to structured loans and investments | 1,310,000 | $ 1,150,000 | |
Fannie Mae Mortgage | |||
Agency Business Commitments [Line Items] | |||
Minimum liquid assets to be maintained to meet operational liquidity requirements | $ 20,300 | ||
Period of funding for collateral requirement | 48 months | ||
Letter of credit required amount | $ 76,200 | ||
Letter of credit assigned | 64,000 | ||
Reserve required to fund additional restricted liquidity over the next 48 months | $ 36,600 | ||
Period of additional funding for collateral requirement | 48 months | ||
Forward Contracts | |||
Agency Business Commitments [Line Items] | |||
Period of contractual commitment | 60 days | ||
Minimum | |||
Total | |||
Remaining lease term | 9 months 18 days | 2 months 12 days | |
Maximum | |||
Total | |||
Remaining lease term | 10 years 1 month 6 days | 10 years 4 months 24 days |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Jun. 30, 2013 lawsuit defendant | Jun. 30, 2011 defendant lawsuit | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies | ||||||
Litigation settlement | $ | $ 0 | $ 7,350 | $ 0 | |||
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) | Motion to Amend 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 | |||||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 38,000 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) entity | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Assets: | |||||
Restricted cash | $ 608,233 | $ 713,808 | $ 486,690 | $ 197,470 | |
Loans and investments, net | 12,377,806 | 14,254,674 | $ 11,981,048 | $ 5,285,868 | |
Other assets | 490,281 | 371,440 | |||
Total assets | [1] | 15,738,636 | 17,038,985 | ||
Liabilities: | |||||
Securitized debt | 6,935,010 | 7,849,270 | |||
Other liabilities | 343,072 | 335,789 | |||
Total liabilities | [1] | 12,484,031 | 13,967,106 | ||
Carrying amount of loans and investments before reserves related to VIEs | 12,615,006 | ||||
CLOs and Debt Fund | |||||
Assets: | |||||
Restricted cash | 593,956 | 710,775 | |||
Loans and investments, net | 7,826,793 | 8,900,104 | |||
Other assets | 193,822 | 174,382 | |||
Total assets | 8,614,571 | 9,785,261 | |||
Liabilities: | |||||
Securitized debt | 6,935,010 | 7,849,270 | |||
Other liabilities | 32,867 | 26,754 | |||
Total liabilities | 6,967,877 | $ 7,876,024 | |||
Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | $ 716,488 | ||||
Liabilities: | |||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | entity | 31 | ||||
Carrying amount of loans and investments before reserves related to VIEs | $ 127,900 | ||||
Loan loss reserves related to VIEs | 77,900 | ||||
Exposure to real estate debt | 3,910,000 | ||||
Loans | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 524,915 | ||||
APL certificates | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 131,137 | ||||
B Piece bonds | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 30,398 | ||||
Equity investments | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | 29,876 | ||||
Agency interest only strips | Unconsolidated VIEs | |||||
Assets: | |||||
Total assets | $ 162 | ||||
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. At December 31, 2023 and 2022, assets of our consolidated VIEs totaled $8,614,571 and $9,785,261, respectively, and the liabilities of our consolidated VIEs totaled $6,967,876 and $7,876,024, respectively. See Note 15 for discussion of our VIEs. |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 0 | $ 77,522 | $ 555,999 | |
Series F | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% | 6.25% | ||
Series F | Preferred Stock | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 77,100 | |||
Series F | Preferred Stock | Public Offering | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Issuance of preferred stock (in shares) | 3,292,000 | |||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.25% |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Nov. 30, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Proceeds from issuance of common stock | $ 193,661 | $ 408,735 | $ 514,593 | |||
Amount available for repurchase | $ 150,000 | 150,000 | ||||
Share Repurchase Program | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | $ 150,000 | $ 50,000 | |||
Shares repurchased (in shares) | 3,545,604 | |||||
Shares repurchased, value | $ 37,400 | |||||
Accelerated share repurchases, final price paid per share (in dollars per share) | $ 10.56 | |||||
Common Stock | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Issuance of stock (in shares) | 13,113,296 | 26,335,788 | 29,140,369 | |||
Common Stock | At-The-Market | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Number of shares available under the amended agreement (in shares) | 5,176,704 | 5,176,704 | 25,000,000 | |||
Issuance of stock (in shares) | 13,113,296 | |||||
Common stock, par value (in dollars per share) | $ 14.77 | $ 14.77 | ||||
Proceeds from issuance of common stock | $ 193,700 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interest (Details) | 12 Months Ended | |||||||
Feb. 14, 2024 $ / shares | Oct. 25, 2023 $ / shares | Jul. 26, 2023 $ / shares | May 03, 2023 $ / shares | Feb. 15, 2023 $ / shares | Dec. 31, 2023 Vote $ / shares shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||
Percentage of dividend paid to common stock and preferred stock shareholders represented ordinary income to our stockholders | 100% | 100% | 100% | |||||
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 | $ 0.43 | $ 0.42 | $ 0.40 | ||||
Common Stock | Subsequent Event | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Common Stock, Dividend (in dollars per share) | $ 0.43 | |||||||
Operating Partnership Units | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | |||||||
Operating Partnership Units | Special voting preferred shares | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | |||||||
Number of votes per share (in shares) | Vote | 1 | |||||||
OP units outstanding (in shares) | shares | 16,293,589 | |||||||
Voting power of outstanding stock (as a percent) | 8% |
Equity - Deferred Compensation
Equity - Deferred Compensation (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Compensation And Benefits | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Share-based compensation expense | $ 14.2 | $ 14.2 | $ 9.3 | |||||
Selling and Administrative Expense | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Share-based compensation expense | $ 0.7 | $ 0.8 | $ 0.6 | |||||
Chief Executive Officer | Common Stock | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Restricted stock vested during period, net settled (in shares) | 153,287 | 120,665 | 150,530 | |||||
Chief Executive Officer | ACM Acquisition | Common Stock | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Restricted stock vested during period, net settled (in shares) | 172,513 | 186,772 | 229,083 | |||||
Restricted Common Stock | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Total grant date fair value | $ 23.7 | $ 21.3 | ||||||
Restricted stock vested with grant date fair value (in shares) | 874,611 | |||||||
Restricted stock vested during the period, grant date fair value | $ 11.1 | |||||||
Unvested restricted common stock outstanding (in shares) | 1,657,078 | 1,389,427 | ||||||
Unrecognized compensation cost | $ 8.1 | |||||||
Remaining weighted-average vesting period | 1 year 9 months 18 days | |||||||
Restricted Common Stock | 2020 Plan | Chief Executive Officer | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 247,275 | |||||||
Total grant date fair value | $ 2.9 | |||||||
Restricted Common Stock | Employees | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 652,596 | |||||||
Total grant date fair value | $ 11.1 | |||||||
Restricted Common Stock | Employees | 2020 Plan | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 943,788 | 384,758 | ||||||
Total grant date fair value | $ 11.3 | $ 6.4 | ||||||
Restricted Common Stock | Employees | 2020 Plan | Vested on Grant Date | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 299,710 | 232,899 | 144,951 | |||||
Total grant date fair value | $ 3.6 | $ 4 | $ 2.4 | |||||
Restricted Common Stock | Employees | 2020 Plan | First Anniversaries | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 277,751 | 101,475 | ||||||
Total grant date fair value | $ 3.4 | $ 3.7 | $ 1.7 | |||||
Restricted Common Stock | Employees | 2020 Plan | Second Anniversaries | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 253,479 | 181,968 | 88,788 | |||||
Total grant date fair value | $ 3 | $ 3.1 | $ 1.5 | |||||
Restricted Common Stock | Employees | 2020 Plan | Third anniversaries | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 78,126 | 9,951 | 25,479 | |||||
Total grant date fair value | $ 0.9 | $ 0.2 | $ 0.4 | |||||
Restricted Common Stock | Employees | 2020 Plan | Fourth Anniversaries | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 34,722 | 9,938 | 24,065 | |||||
Total grant date fair value | $ 0.4 | $ 0.2 | $ 0.4 | |||||
RSUs | 2020 Plan | Director | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 40,796 | 25,012 | ||||||
Total grant date fair value | $ 0.5 | $ 0.4 | ||||||
RSUs | 2020 Plan | Chief Executive Officer | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 189,873 | |||||||
Total grant date fair value | $ 3.3 | |||||||
RSUs | Employees | First Anniversaries | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 217,840 | |||||||
Time Based Vesting Equity Award | Chief Executive Officer | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 165,746 | 184,729 | ||||||
Total grant date fair value | $ 3 | $ 3.1 | ||||||
Performance-Based Restricted Stock | Chief Executive Officer | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 352,427 | 294,985 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 381,503 | 448,980 | ||||||
Vesting period (in years) | 4 years | 4 years | ||||||
Performance-Based Restricted Stock | Chief Executive Officer | ACM Acquisition | ||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||
Grants during the period (in shares) | 313,152 | 246,508 | 294,985 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends Payable (Details) - $ / shares | Dec. 29, 2023 | Oct. 25, 2023 | Sep. 29, 2023 | Jul. 26, 2023 | Jun. 30, 2023 | May 03, 2023 | Mar. 31, 2023 | Feb. 15, 2023 | Jan. 03, 2023 |
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 | $ 0.43 | $ 0.42 | $ 0.40 | |||||
Preferred Stock | Series D | |||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||
Preferred Stock, Dividends (in dollars per share) | $ 0.3984375 | $ 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] | |||||||||
Preferred Stock, Dividends (in dollars per share) | 0.390625 | 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] | |||||||||
Preferred Stock, Dividends (in dollars per share) | $ 0.390625 | $ 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net income attributable to common stockholders | $ 330,065 | $ 284,829 | $ 317,412 |
Net income attributable to common stockholders and noncontrolling interest | $ 330,065 | $ 284,829 | $ 317,412 |
Weighted average shares outstanding (in shares) | 184,641,642 | 165,355,167 | 137,830,691 |
Weighted average shares outstanding (in shares) | 184,641,642 | 165,355,167 | 137,830,691 |
Net income per common share (in dollars per share) | $ 1.79 | $ 1.72 | $ 2.30 |
Diluted | |||
Net income attributable to common stockholders | $ 330,065 | $ 284,829 | $ 317,412 |
Net income attributable to noncontrolling interest | 29,122 | 28,044 | 38,507 |
Interest expense on convertible notes | 24,832 | 20,166 | |
Net income attributable to common stockholders and noncontrolling interest | $ 384,019 | $ 333,039 | $ 355,919 |
Weighted average shares outstanding (in shares) | 184,641,642 | 165,355,167 | 137,830,691 |
Dilutive effect of OP Units (in shares) | 16,293,589 | 16,304,638 | 16,818,722 |
Dilutive effect of restricted stock units (in shares) | 17,294,392 | 16,900,204 | 933,233 |
Dilutive effect of convertible notes (in shares) | 613,990 | 552,621 | 506,949 |
Weighted average shares outstanding (in shares) | 218,843,613 | 199,112,630 | 156,089,595 |
Diluted earnings per common share (in dollars per share) | $ 1.75 | $ 1.67 | $ 2.28 |
Mr. Ivan Kaufman | Performance-Based Restricted Stock | |||
Diluted | |||
Vesting period (in years) | 4 years |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Provision for (benefit) from income taxes | $ 27,347,000 | $ 17,484,000 | $ 46,285,000 |
Valuation allowance | 294,000 | (2,000) | 139,000 |
REIT | |||
Income Taxes | |||
REIT state income tax expense | 0 | 0 | $ 0 |
Federal and state net operating loss carryforwards | 0 | 0 | |
Capital loss carryforwards | 0 | 0 | |
TRS Consolidated Group | |||
Income Taxes | |||
Federal and state net operating loss carryforwards | 0 | 0 | |
Capital loss carryforwards | 1,100,000 | 1,100,000 | |
TRS Consolidated Group | State | |||
Income Taxes | |||
Federal and state net operating loss carryforwards | $ 200,000 | $ 200,000 |
Income Taxes - Schedule of Pre-
Income Taxes - Schedule of Pre-Tax GAAP Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Total pre‑tax GAAP income | $ 427,903 | $ 371,311 | $ 424,092 |
REIT | |||
Income Taxes | |||
Total pre‑tax GAAP income | 320,045 | 303,320 | 239,356 |
TRS Consolidated Group | |||
Income Taxes | |||
Total pre‑tax GAAP income | $ 107,858 | $ 67,991 | $ 184,736 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax provision: | |||
Federal | $ 26,269 | $ 14,167 | $ 27,454 |
State | 8,427 | 5,058 | 7,939 |
Total | 34,696 | 19,225 | 35,393 |
Deferred tax (benefit) provision: | |||
Federal | (5,272) | (1,373) | 8,287 |
State | (1,783) | (370) | 2,744 |
Valuation allowance | (294) | 2 | (139) |
Total | (7,349) | (1,741) | 10,892 |
Total income tax expense | $ 27,347 | $ 17,484 | $ 46,285 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21% | 21% | 21% |
REIT non‑taxable income | (15.70%) | (17.20%) | (11.90%) |
State and local income taxes, net of federal tax benefit | 1.20% | 1% | 2% |
Other | (0.10%) | (0.10%) | (0.20%) |
Effective income tax rate | 6.40% | 4.70% | 10.90% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Expenses not currently deductible | $ 27,144 | $ 22,755 |
Loan loss reserves | 7,088 | 7,159 |
Net operating and capital loss carryforwards | 188 | 454 |
Valuation allowance | 0 | (294) |
Other | 346 | 441 |
Deferred tax assets, net | 34,766 | 30,515 |
Deferred tax liabilities: | ||
Mortgage servicing rights | 28,286 | 26,975 |
Intangibles | 5,565 | 6,457 |
Interest in equity affiliates—net | 2,719 | 6,237 |
Deferred tax liabilities, net | $ 36,570 | $ 39,669 |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties - Shared Services Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party | Other Related Party Transactions | |||
Agreements and Transactions with Related Parties | |||
Costs for services to related party | $ 3.2 | $ 3.3 | $ 3.2 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties- Other Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Agreements and Transactions with Related Parties | |||
Due from related party | $ 64,421 | $ 77,419 | |
Due to related party | 13,799 | 12,350 | |
Other Related Party Transactions | Related Party | |||
Agreements and Transactions with Related Parties | |||
Due from related party | 64,400 | 77,400 | |
Due to related party | 13,800 | 12,400 | |
Reimbursement for flights chartered by the company's executives | $ 800 | $ 1,100 | $ 200 |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Other Related Party (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Jul. 01, 2023 | Jan. 31, 2024 | May 31, 2023 USD ($) officer | Apr. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) property | Jan. 31, 2019 USD ($) | Jun. 30, 2023 | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) property | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) loan property | Dec. 31, 2017 USD ($) property loan | Dec. 31, 2016 | Dec. 31, 2015 USD ($) | Nov. 30, 2023 USD ($) | Feb. 28, 2022 USD ($) | |
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 1,331,219 | $ 948,401 | $ 466,087 | ||||||||||||||||||
Investment made | 1,362,171 | 5,955,061 | 9,209,475 | ||||||||||||||||||
Income from equity affiliates | 24,281 | 14,247 | 34,567 | ||||||||||||||||||
Servicing revenue | $ 193,542 | 152,068 | 133,429 | ||||||||||||||||||
Indirect ownership percentage | 9.20% | ||||||||||||||||||||
Paydowns of principal made by borrower | $ 3,354,055 | 3,818,554 | 2,516,771 | ||||||||||||||||||
Lexford Portfolio | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Distribution received | 12,200 | 11,100 | |||||||||||||||||||
Mezzanine Loans | Other Related Party Transactions | Subsequent Event | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Extension of maturity date (in years) | 1 year | ||||||||||||||||||||
Bridge Loans | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Variable rate, spread (as a percent) | 3.40% | ||||||||||||||||||||
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 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Amount invested | $ 4,200 | $ 4,200 | |||||||||||||||||||
Income from equity affiliates | 12,200 | 11,100 | |||||||||||||||||||
Maximum exposure under guaranty | 600,000 | ||||||||||||||||||||
Related Party | Other Related Party Transactions | LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Ownership interest (as a percent) | 49.30% | 49.30% | |||||||||||||||||||
Related Party | Other Related Party Transactions | AMAC III | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 3,100 | 1,900 | $ 1,300 | ||||||||||||||||||
Amount invested | 25,900 | $ 30,000 | |||||||||||||||||||
Ownership interest (as a percent) | 18% | ||||||||||||||||||||
Income from equity affiliates | 1,900 | 2,400 | 1,300 | ||||||||||||||||||
Distribution received | $ 1,100 | 500 | |||||||||||||||||||
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 | CMBS/Conduit | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loans assumed | $ 26,000 | ||||||||||||||||||||
Related Party | Residential mortgage banking business | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Income from equity affiliates | $ 600 | 4,900 | 34,600 | ||||||||||||||||||
Acquisition purchase price | $ 9,600 | ||||||||||||||||||||
Noncontrolling interest in equity method investment acquired (as a percent) | 50% | ||||||||||||||||||||
Indirect ownership percentage | 12.30% | ||||||||||||||||||||
Related Party | ACM Acquisition | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Distribution received | $ 15,000 | 23,800 | |||||||||||||||||||
Number of shares held by related party (in shares) | shares | 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% | ||||||||||||||||||||
Related Party | Retail property | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Property purchased | $ 32,500 | 32,500 | |||||||||||||||||||
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 | ||||||||||||||||||||
Related Party | Maturity date of March 2025 | Secured Overnight Financing Rate (SOFR) | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||||
Related Party | Mature date of April 2030 | Multifamily | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Number of properties owned | property | 2 | 2 | |||||||||||||||||||
Related Party | Maturity Date Of June 2021 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 500 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Fixed rate of interest (as a percent) | 3.30% | ||||||||||||||||||||
Related Party | Preferred equity investments | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity investment | $ 10,000 | ||||||||||||||||||||
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 (as a percent) | 12% | ||||||||||||||||||||
Related Party | Preferred equity investments | Maturity date of September 2019 | Multifamily | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity investment | $ 3,400 | $ 3,400 | |||||||||||||||||||
Related Party | Mezzanine Loans | Other Related Party Transactions | AMAC III | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 7,000 | ||||||||||||||||||||
Related Party | Mezzanine Loans | Single- Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 300 | 300 | 300 | ||||||||||||||||||
Related Party | Mezzanine Loans | Mature date of April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 9% | ||||||||||||||||||||
Related Party | Bridge Loans | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 35,000 | ||||||||||||||||||||
Equity participation interest (as a percentage) | 18.90% | 18.90% | |||||||||||||||||||
Related Party | Bridge Loans | Other Related Party Transactions | AMAC III | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 34,000 | ||||||||||||||||||||
Related Party | Bridge Loans | Single- Family Rental | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Loan committed | $ 32,500 | 31,400 | $ 30,500 | ||||||||||||||||||
Interest income | 1,300 | ||||||||||||||||||||
Investment made | $ 3,500 | ||||||||||||||||||||
Loan committed upsized | $ 38,800 | $ 39,900 | |||||||||||||||||||
Related Party | Bridge Loans | Matures in December 2025 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 400 | ||||||||||||||||||||
Related Party | Bridge Loans | Matures in December 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 56,900 | ||||||||||||||||||||
Loan committed | $ 6,000 | ||||||||||||||||||||
Number of officers | officer | 2 | ||||||||||||||||||||
Equity investment | $ 500 | ||||||||||||||||||||
Equity participation interest (as a percentage) | 4% | ||||||||||||||||||||
Related Party | Bridge Loans | Matures in December 2025 | Secured Overnight Financing Rate (SOFR) | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 3.25% | ||||||||||||||||||||
Related Party | Bridge Loans | Maturity date of March 2025 | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 200 | ||||||||||||||||||||
Related Party | Bridge Loans | Maturity date of March 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 46,200 | $ 39,400 | |||||||||||||||||||
Loan committed | $ 6,300 | ||||||||||||||||||||
Interest income | 400 | 100 | |||||||||||||||||||
Related Party | Bridge Loans | Maturity date of March 2025 | Secured Overnight Financing Rate (SOFR) | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 70% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||
Related Party | Bridge Loans | Maturity date of March 2025 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 2.25% | ||||||||||||||||||||
Base spread (as a percent) | 4% | ||||||||||||||||||||
Related Party | Bridge Loans | Maturity date of May 2025 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 67,100 | ||||||||||||||||||||
Loan committed | $ 9,400 | ||||||||||||||||||||
Interest income | 200 | 100 | |||||||||||||||||||
Related Party | Bridge Loans | Maturity date of May 2025 | Secured Overnight Financing Rate (SOFR) | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 2.25% | ||||||||||||||||||||
Base spread (as a percent) | 4.63% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||
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 | 5,600 | 3,700 | $ 2,100 | ||||||||||||||||||
Related Party | Bridge Loans | Maturity date of March 2024 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 3.75% | 3.75% | |||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||
Related Party | Bridge Loans | Matures in May 2023 | Secured Overnight Financing Rate (SOFR) | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 5.25% | ||||||||||||||||||||
Related Party | Bridge Loans | Matures in May 2023 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | 5.50% | |||||||||||||||||||
LIBOR floor (as a percentage) | 1% | 0.75% | |||||||||||||||||||
Amount invested | 36,300 | ||||||||||||||||||||
Related Party | Bridge Loans | Matures in April 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 3,600 | $ 600 | |||||||||||||||||||
Related Party | Bridge Loans | Mature date of April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 1,600 | ||||||||||||||||||||
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 (as a percent) | 4% | ||||||||||||||||||||
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 | ||||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 21,700 | ||||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Mature date of April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 35,400 | $ 35,400 | |||||||||||||||||||
Related Party | Bridge loan, one multifamily property | Mature date of April 2030 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Variable rate, spread (as a percent) | 3.50% | ||||||||||||||||||||
Related Party | Bridge loan, several multifamily properties | Maturity Date Of June 2021 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 4.75% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% | ||||||||||||||||||||
Interest income | $ 2,200 | 1,400 | 1,300 | ||||||||||||||||||
Percentage of ownership interest of related party in the entity | 75% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Mature date of April 2030 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | 14,800 | $ 14,800 | |||||||||||||||||||
Percentage of ownership interest of related party in the entity | 50% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 28,000 | ||||||||||||||||||||
Base spread (as a percent) | 5.25% | ||||||||||||||||||||
Interest income | $ 1,900 | ||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 45% | ||||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||||
Number of mortgage loans secured by property purchased from related party | loan | 2 | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | Minimum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
LIBOR floor (as a percentage) | 1.24% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of fourth quarter 2020 | Maximum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
LIBOR floor (as a percentage) | 1.54% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2021 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Principal amount | $ 31,100 | $ 31,100 | |||||||||||||||||||
LIBOR floor (as a percentage) | 1.80% | ||||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of October 2021 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 4% | 4% | |||||||||||||||||||
Related Party | Bridge loan, two multifamily properties | Maturity date of 2020 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | 800 | ||||||||||||||||||||
Related Party | Ginkgo Investment Company LLC | 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 | ||||||||||||||||||||
Loan purchased a multifamily apartment complex which assumed | $ 8,300 | ||||||||||||||||||||
Percentage of ownership after transaction | 3.60% | ||||||||||||||||||||
Percentage of loan assumption fee | 1% | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Other Related Party Transactions | LLC | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Ownership interest (as a percent) | 10% | 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 | Matures in October 2023 | Preferred equity interest financing agreement | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 2,800 | 1,300 | |||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Preferred equity investments | Matures in October 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 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% | 21.80% | |||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge Loans | Matures in October 2023 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 500 | ||||||||||||||||||||
Immediate Family Member of Management or Principal Owner | Bridge Loans | Matures in October 2023 | LIBOR | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | 5.50% | |||||||||||||||||||
LIBOR floor (as a percentage) | 0.75% | ||||||||||||||||||||
Director | Ginkgo Investment Company LLC | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of managing member | 33% | ||||||||||||||||||||
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% | ||||||||||||||||||||
Chief Executive Officer | Chief Executive Officer | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5% | ||||||||||||||||||||
Chief Executive Officer | Mezzanine Loans | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 10% | ||||||||||||||||||||
Chief Executive Officer | Bridge loan, six multifamily properties | Maturity date of September 2019 | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Interest income | $ 200 | $ 200 | $ 200 | ||||||||||||||||||
Chief Executive Officer | Bridge loan, six multifamily properties | Maturity date of September 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 September 2019 | Maximum | Other Related Party Transactions | |||||||||||||||||||||
Agreements and Transactions with Related Parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 12% |
Employee Benefits - 401(k) Plan
Employee Benefits - 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefits | |||
Minimum period of continuous service required under 401(k) plan | 6 months | ||
Employer's match of the first 6% of employee's contributions (as a a percent) | 25% | ||
Percentage of eligible compensation, matched 25% by employer | 6% | ||
Employee Compensation And Benefits | |||
Employee Benefits | |||
Expense recorded under 401(k) plan | $ 1.2 | $ 1 | $ 0.8 |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Comp Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefits | |||
Period over which matching contributions vest after year 5 | 9 years | ||
Deferred compensation expense | $ 3.1 | $ 3.3 | $ 2.2 |
Other liabilities | |||
Employee Benefits | |||
Liabilities related to deferred comp plan | 37.6 | 28.7 | |
Other assets | |||
Employee Benefits | |||
Assets related to deferred comp plan | $ 30.2 | $ 24.7 |
Segment Information - Statement
Segment Information - Statements of Income (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 1,331,219 | $ 948,401 | $ 466,087 |
Interest expense | 903,228 | 557,617 | 212,005 |
Net interest income | 427,991 | 390,784 | 254,082 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 72,522 | 55,816 | 123,037 |
Mortgage servicing rights | 69,912 | 69,346 | 130,230 |
Servicing revenue | 193,542 | 152,068 | 133,429 |
Amortization of MSRs | (63,093) | (59,876) | (58,615) |
Property operating income | 5,708 | 1,877 | 185 |
Gain (loss) on derivative instruments, net | 6,763 | 26,609 | (2,684) |
Other income (loss), net | 7,667 | (17,563) | 7,566 |
Total other revenue | 293,021 | 228,277 | 333,148 |
Other expenses: | |||
Employee compensation and benefits | 159,788 | 161,825 | 171,796 |
Selling and administrative | 51,260 | 53,990 | 45,575 |
Property operating expenses | 5,897 | 2,136 | 718 |
Depreciation and amortization | 9,743 | 8,732 | 7,215 |
Provision for loss sharing (net of recoveries) | 15,695 | 1,862 | (6,167) |
Provision for credit losses (net of recoveries) | 73,446 | 21,169 | (21,113) |
Litigation settlement | 7,350 | ||
Total other expenses | 315,829 | 257,064 | 198,024 |
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 405,183 | 361,997 | 389,206 |
Loss on extinguishment of debt | (1,561) | (4,933) | (3,374) |
Gain on sale of real estate | 0 | 0 | 3,693 |
Income from equity affiliates | 24,281 | 14,247 | 34,567 |
Provision for income taxes | (27,347) | (17,484) | (46,285) |
Net income | 400,556 | 353,827 | 377,807 |
Preferred stock dividends | 41,369 | 40,954 | 21,888 |
Net income attributable to noncontrolling interest | 29,122 | 28,044 | 38,507 |
Net income attributable to common stockholders | $ 330,065 | 284,829 | 317,412 |
Reporting segments | segment | 2 | ||
Operating segments | Structured Business | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 1,279,433 | 903,622 | 427,039 |
Interest expense | 880,602 | 538,659 | 194,435 |
Net interest income | 398,831 | 364,963 | 232,604 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 0 | 0 | 0 |
Mortgage servicing rights | 0 | 0 | 0 |
Servicing revenue | 0 | 0 | 0 |
Amortization of MSRs | 0 | 0 | 0 |
Property operating income | 5,708 | 1,877 | 185 |
Gain (loss) on derivative instruments, net | 0 | 0 | 0 |
Other income (loss), net | 4,868 | (2,360) | 7,491 |
Total other revenue | 10,576 | (483) | 7,676 |
Other expenses: | |||
Employee compensation and benefits | 53,507 | 56,032 | 51,225 |
Selling and administrative | 23,234 | 26,059 | 21,064 |
Property operating expenses | 5,897 | 2,136 | 718 |
Depreciation and amortization | 5,052 | 4,041 | 2,524 |
Provision for loss sharing (net of recoveries) | 0 | 0 | 0 |
Provision for credit losses (net of recoveries) | 70,344 | 19,770 | (21,223) |
Litigation settlement | 7,350 | ||
Total other expenses | 158,034 | 115,388 | 54,308 |
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 251,373 | 249,092 | 185,972 |
Loss on extinguishment of debt | (1,561) | (4,933) | (3,374) |
Gain on sale of real estate | 2,466 | ||
Income from equity affiliates | 24,281 | 14,247 | 34,567 |
Provision for income taxes | 803 | (821) | (5,940) |
Net income | 274,896 | 257,585 | 213,691 |
Preferred stock dividends | 41,369 | 40,954 | 21,888 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 |
Net income attributable to common stockholders | 233,527 | 216,631 | 191,803 |
Operating segments | Agency Business | |||
Segment Reporting Information [Line Items] | |||
Interest income | 51,786 | 44,779 | 39,048 |
Interest expense | 22,626 | 18,958 | 17,570 |
Net interest income | 29,160 | 25,821 | 21,478 |
Other revenue: | |||
Gain on sales, including fee-based services, net | 72,522 | 55,816 | 123,037 |
Mortgage servicing rights | 69,912 | 69,346 | 130,230 |
Servicing revenue | 193,542 | 152,068 | 133,429 |
Amortization of MSRs | (63,093) | (59,876) | (58,615) |
Property operating income | 0 | 0 | 0 |
Gain (loss) on derivative instruments, net | 6,763 | 26,609 | (2,684) |
Other income (loss), net | 2,799 | (15,203) | 75 |
Total other revenue | 282,445 | 228,760 | 325,472 |
Other expenses: | |||
Employee compensation and benefits | 106,281 | 105,793 | 120,571 |
Selling and administrative | 28,026 | 27,931 | 24,511 |
Property operating expenses | 0 | 0 | 0 |
Depreciation and amortization | 4,691 | 4,691 | 4,691 |
Provision for loss sharing (net of recoveries) | 15,695 | 1,862 | (6,167) |
Provision for credit losses (net of recoveries) | 3,102 | 1,399 | 110 |
Litigation settlement | 0 | ||
Total other expenses | 157,795 | 141,676 | 143,716 |
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes | 153,810 | 112,905 | 203,234 |
Loss on extinguishment of debt | 0 | 0 | 0 |
Gain on sale of real estate | 1,227 | ||
Income from equity affiliates | 0 | 0 | 0 |
Provision for income taxes | (28,150) | (16,663) | (40,345) |
Net income | 125,660 | 96,242 | 164,116 |
Preferred stock dividends | 0 | 0 | 0 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 |
Net income attributable to common stockholders | 125,660 | 96,242 | 164,116 |
Other | |||
Other expenses: | |||
Net income attributable to noncontrolling interest | 29,122 | 28,044 | 38,507 |
Net income attributable to common stockholders | $ (29,122) | $ (28,044) | $ (38,507) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | |||||
Cash and cash equivalents | $ 928,974 | $ 534,357 | $ 404,580 | $ 339,528 | |
Restricted cash | 608,233 | 713,808 | 486,690 | 197,470 | |
Loans and investments, net | 12,377,806 | 14,254,674 | $ 11,981,048 | $ 5,285,868 | |
Loans held-for-sale, net | 551,707 | 354,070 | |||
Capitalized mortgage servicing rights, net | 391,254 | 401,471 | |||
Securities held-to-maturity, net | 155,279 | 156,547 | |||
Investments in equity affiliates | 79,303 | 79,130 | |||
Goodwill and other intangible assets | 91,378 | 96,069 | |||
Other assets and due from related party | 554,702 | 448,859 | |||
Total assets | [1] | 15,738,636 | 17,038,985 | ||
Liabilities: | |||||
Debt obligations | 11,933,819 | 13,500,562 | |||
Allowance for loss-sharing obligations | 71,634 | 57,168 | |||
Other liabilities and due to related parties | 478,578 | 409,376 | |||
Total liabilities | [1] | 12,484,031 | 13,967,106 | ||
Structured Business | Operating segments | |||||
Assets: | |||||
Cash and cash equivalents | 619,487 | 200,514 | |||
Restricted cash | 595,342 | 713,615 | |||
Loans and investments, net | 12,377,806 | 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 | 79,303 | 79,130 | |||
Goodwill and other intangible assets | 12,500 | 12,500 | |||
Other assets and due from related party | 453,073 | 367,837 | |||
Total assets | 14,137,511 | 15,628,270 | |||
Liabilities: | |||||
Debt obligations | 11,520,492 | 13,195,120 | |||
Allowance for loss-sharing obligations | 0 | 0 | |||
Other liabilities and due to related parties | 369,588 | 299,559 | |||
Total liabilities | 11,890,080 | 13,494,679 | |||
Agency Business | Operating segments | |||||
Assets: | |||||
Cash and cash equivalents | 309,487 | 333,843 | |||
Restricted cash | 12,891 | 193 | |||
Loans and investments, net | 0 | 0 | |||
Loans held-for-sale, net | 551,707 | 354,070 | |||
Capitalized mortgage servicing rights, net | 391,254 | 401,471 | |||
Securities held-to-maturity, net | 155,279 | 156,547 | |||
Investments in equity affiliates | 0 | 0 | |||
Goodwill and other intangible assets | 78,878 | 83,569 | |||
Other assets and due from related party | 101,629 | 81,022 | |||
Total assets | 1,601,125 | 1,410,715 | |||
Liabilities: | |||||
Debt obligations | 413,327 | 305,442 | |||
Allowance for loss-sharing obligations | 71,634 | 57,168 | |||
Other liabilities and due to related parties | 108,990 | 109,817 | |||
Total liabilities | $ 593,951 | $ 472,427 | |||
[1]Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. At December 31, 2023 and 2022, assets of our consolidated VIEs totaled $8,614,571 and $9,785,261, respectively, and the liabilities of our consolidated VIEs totaled $6,967,876 and $7,876,024, respectively. See Note 15 for discussion of our VIEs. |
Segment Information - Originati
Segment Information - Origination Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Segment Reporting Information [Line Items] | ||||
Origination Volumes | $ 5,207,148 | $ 5,146,718 | $ 6,347,752 | |
Agency Business Loan Sales Data: | ||||
Gain (loss) on derivative instruments, net | 6,763 | 26,609 | (2,684) | |
Structured Business | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total new loan originations | 983,343 | 6,151,647 | 9,720,515 | |
Loan runoff | 3,354,055 | 3,818,554 | 2,516,771 | |
Agency Business Loan Sales Data: | ||||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | |
Structured Business | Bridge | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total new loan originations | 939,390 | 6,082,041 | 9,516,640 | |
Structured Business | Mezzanine loans | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total new loan originations | 43,953 | 69,606 | 203,875 | |
Structured Business | Multifamily | Bridge | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total new loan originations | 415,330 | 5,468,222 | 9,101,139 | |
Structured Business | SFR - Fixed Rate | Bridge | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total new loan originations | $ 524,060 | $ 613,819 | $ 415,501 | |
Number of Loans Originated | loan | 150 | 318 | 422 | |
SFR Commitments | $ 1,150,687 | $ 1,086,833 | $ 760,448 | |
Agency Business | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | $ 4,889,199 | $ 5,438,623 | $ 6,415,169 | |
Sales margin (fee-based services as a % of loan sales) | 1.48% | 1.34% | 1.92% | |
MSR rate (MSR income as a % of loan commitments) | 1.34% | 1.35% | 2.05% | |
Agency Business | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | $ 5,106,820 | $ 4,768,186 | $ 6,409,558 | |
Agency Business Loan Sales Data: | ||||
Gain (loss) on derivative instruments, net | 6,763 | 26,609 | (2,684) | |
Agency Business | SFR - Fixed Rate | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | 22,931 | 86,071 | 192,335 | |
Agency Business | SFR - Fixed Rate | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | 19,328 | 89,683 | 136,931 | |
Agency Business | Fannie Mae | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | 3,469,340 | 3,139,414 | 3,675,763 | |
Agency Business | Fannie Mae | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | 3,773,532 | 2,919,566 | 3,389,312 | |
Agency Business | Freddie Mac | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | 715,530 | 1,456,595 | 1,081,702 | |
Agency Business | Freddie Mac | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | 756,827 | 1,353,001 | 1,016,142 | |
Agency Business | Private Label | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | 441,319 | 515,086 | 985,094 | |
Gain (loss) on derivative instruments, net | $ 17,100 | |||
Agency Business | Private Label | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | 299,934 | 217,542 | 1,436,853 | |
Agency Business | FHA | ||||
Agency Business Loan Sales Data: | ||||
Loan Sales | 240,079 | 241,457 | 480,275 | |
Agency Business | FHA | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Origination Volumes | $ 257,199 | $ 188,394 | $ 430,320 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 30,983,455 | $ 27,998,029 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.391% | 0.411% |
Wtd. Avg. Life of Portfolio (years) | 8 years | 8 years 7 months 6 days |
SFR - Fixed Rate | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 287,446 | $ 274,764 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.201% | 0.198% |
Wtd. Avg. Life of Portfolio (years) | 5 years 1 month 6 days | 6 years |
Fannie Mae | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 21,264,578 | $ 19,038,124 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.474% | 0.502% |
Wtd. Avg. Life of Portfolio (years) | 7 years 4 months 24 days | 8 years |
Freddie Mac | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 5,181,933 | $ 5,153,207 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.24% | 0.25% |
Wtd. Avg. Life of Portfolio (years) | 8 years 6 months | 9 years |
Private Label | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 2,510,449 | $ 2,074,859 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.195% | 0.185% |
Wtd. Avg. Life of Portfolio (years) | 6 years 8 months 12 days | 7 years 7 months 6 days |
FHA | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 1,359,624 | $ 1,155,893 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.144% | 0.149% |
Wtd. Avg. Life of Portfolio (years) | 19 years 2 months 12 days | 19 years 6 months |
Bridge | ||
Segment Reporting Information [Line Items] | ||
Servicing Portfolio UPB | $ 379,425 | $ 301,182 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.109% | 0.125% |
Wtd. Avg. Life of Portfolio (years) | 3 years 2 months 12 days | 1 year 8 months 12 days |
SCHEDULE IV - LOANS AND OTHER_2
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 1,672,775 |
Carrying value of loans | 12,615,006 |
Carrying Amount | 12,377,806 |
Amount of loans extended | 1,740,000 |
Federal income tax basis | $ 12,620,000 |
Threshold for reporting loans (as a percent) | 3% |
Bridge Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | $ 12,273,244 |
Carrying Amount | 12,052,895 |
Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | 12,273,244 |
Carrying Amount | 12,052,895 |
Mezzanine Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 1,203,261 |
Carrying value of loans | 248,457 |
Carrying Amount | 238,441 |
Preferred Equity Investments | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 469,514 |
Carrying value of loans | 85,741 |
Carrying Amount | 78,930 |
Other Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | 7,564 |
Carrying Amount | 7,540 |
Multifamily | Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | 10,789,936 |
Carrying Amount | $ 10,665,252 |
Multifamily | Bridge Loans | Loans less than 3% | Minimum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 3% |
Multifamily | Bridge Loans | Loans less than 3% | Minimum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 0% |
Floor rate (as a percent) | 0.10% |
Multifamily | Bridge Loans | Loans less than 3% | Maximum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 12% |
Multifamily | Bridge Loans | Loans less than 3% | Maximum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 5.75% |
Floor rate (as a percent) | 5.36% |
Multifamily | Mezzanine Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 1,203,261 |
Carrying value of loans | 232,104 |
Carrying Amount | $ 223,008 |
Multifamily | Mezzanine Loans | Loans less than 3% | Minimum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 3.50% |
Multifamily | Mezzanine Loans | Loans less than 3% | Maximum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 14% |
Multifamily | Preferred Equity Investments | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $ 439,722 |
Carrying value of loans | 75,941 |
Carrying Amount | $ 71,020 |
Multifamily | Preferred Equity Investments | Loans less than 3% | Minimum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 0% |
Multifamily | Preferred Equity Investments | Loans less than 3% | Maximum | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 16% |
Single‑Family Rental | Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | $ 1,316,803 |
Carrying Amount | $ 1,301,522 |
Single‑Family Rental | Bridge Loans | Loans less than 3% | Minimum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 0% |
Floor rate (as a percent) | 0.10% |
Single‑Family Rental | Bridge Loans | Loans less than 3% | Maximum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 6.25% |
Floor rate (as a percent) | 5.36% |
Single‑Family Rental | Other Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | $ 7,564 |
Carrying Amount | $ 7,540 |
Single‑Family Rental | Other Loans | Loans less than 3% | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Floor rate (as a percent) | 0.25% |
Single‑Family Rental | Other Loans | Loans less than 3% | Minimum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 3.98% |
Single‑Family Rental | Other Loans | Loans less than 3% | Maximum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 4.90% |
Land | Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 0% |
Carrying value of loans | $ 118,595 |
Carrying Amount | $ 40,726 |
Land | Bridge Loans | Loans less than 3% | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 4% |
Floor rate (as a percent) | 0.15% |
Land | Mezzanine Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 0% |
Carrying value of loans | $ 9,333 |
Carrying Amount | $ 9,333 |
Land | Preferred Equity Investments | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 0% |
Carrying value of loans | $ 8,100 |
Carrying Amount | 7,910 |
Office | Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | 35,410 |
Carrying Amount | $ 35,268 |
Office | Bridge Loans | Loans less than 3% | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 3.50% |
Retail | Bridge Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Carrying value of loans | $ 12,500 |
Carrying Amount | $ 10,127 |
Retail | Bridge Loans | Loans less than 3% | Minimum | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 3.50% |
Floor rate (as a percent) | 1% |
Retail | Mezzanine Loans | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 12% |
Prior Liens | $ 0 |
Carrying value of loans | 7,020 |
Carrying Amount | $ 6,100 |
Retail | Mezzanine Loans | Loans less than 3% | Secured Overnight Financing Rate (SOFR) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Base spread (as a percent) | 3.50% |
Floor rate (as a percent) | 1% |
Commercial | Preferred Equity Investments | Loans less than 3% | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Fixed interest rate (as a percent) | 6% |
Prior Liens | $ 29,792 |
Carrying value of loans | $ 1,700 |
SCHEDULE IV - LOANS AND OTHER_3
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS - Loans and investments carrying amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the Company's loans and investments carrying amounts | |||
Balance at beginning of year | $ 14,254,674 | $ 11,981,048 | $ 5,285,868 |
Additions during period: | |||
New loan originations | 983,343 | 6,151,647 | 9,720,515 |
Funding of unfunded loan commitments | 835,484 | 381,831 | 200,694 |
Accretion of unearned revenue | 41,125 | 37,468 | 25,618 |
Recoveries of reserves | 4,776 | 1,500 | 24,315 |
Loan charge‑offs | 0 | 0 | 10,773 |
Deductions during period: | |||
Loan payoffs and paydowns | (3,354,055) | (3,818,554) | (2,516,771) |
Unfunded loan commitments | (260,789) | (376,404) | (623,639) |
Unearned revenue and costs | (13,772) | (51,808) | (69,528) |
Reclassification to real estate owned | (39,400) | (31,200) | (880) |
Provision for loan losses | (73,580) | (20,818) | 0 |
Reclassification to held-for-sale loans | 0 | (36) | (65,144) |
Use of loan charge‑offs | 0 | 0 | (10,773) |
Balance at end of year | $ 12,377,806 | $ 14,254,674 | $ 11,981,048 |