Angel Oak Mortgage (AOMR) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 09, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-40495
Entity Registrant Name	Angel Oak Mortgage REIT, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	37-1892154
Entity Address, Address Line One	3344 Peachtree Road Northeast
Entity Address, Address Line Two	Suite 1725
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326
City Area Code	404
Local Phone Number	953-4900
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	AOMR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,955,566
Entity Central Index Key	0001766478
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 59,140	$ 29,272
Restricted cash	9,577	10,589
Principal and interest receivable	9,836	17,497
Unrealized appreciation on TBAs and interest rate futures contracts - at fair value	3,294	14,756
Other assets	17,418	4,767
Total assets	2,413,783	2,946,212
LIABILITIES
Notes payable	233,970	639,870
Securities sold under agreements to repurchase	340,701	52,544
Due to broker	390,380	1,006,022
Interest payable	705	2,551
Total liabilities	2,181,107	2,709,733
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value. As of June 30, 2023: 350,000,000 shares authorized, 24,924,886 shares issued and outstanding. As of December 31, 2022: 350,000,000 shares authorized, 24,925,357 shares issued and outstanding.	249	249
Additional paid-in capital	476,127	475,379
Accumulated other comprehensive loss	(6,565)	(21,127)
Retained earnings (deficit)	(237,135)	(218,022)
Total stockholders’ equity	232,676	236,479
Total liabilities and stockholders’ equity	2,413,783	2,946,212
Nonrelated Party
LIABILITIES
Accrued expenses	1,372	1,288
Related Party
LIABILITIES
Accrued expenses	1,055	2,006
Management fee payable to affiliate	1,483	1,967
Non-recourse
LIABILITIES
Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (see Note 2)	1,211,441	1,003,485
RMBS
ASSETS
Debt securities, at fair value	459,972	1,055,338
LIABILITIES
Securities sold under agreements to repurchase	42,773	52,544
CMBS
ASSETS
Debt securities, at fair value	6,853	6,111
U.S. Treasury securities
ASSETS
Debt securities, at fair value	299,581	0
LIABILITIES
Securities sold under agreements to repurchase	297,928
Residential mortgage loans
ASSETS
Financing receivable, principal balance	296,529	770,982
Residential mortgage loans in securitization trusts
ASSETS
Financing receivable, principal balance	1,241,994	1,027,442
Commercial mortgage loans
ASSETS
Financing receivable, principal balance	$ 9,589	$ 9,458

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock authorized (shares)	350,000,000	350,000,000
Common stock issued (shares)	24,924,886	24,925,357
Common stock outstanding (shares)	24,924,886	24,925,357

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST INCOME, NET
Interest income	$ 23,763	$ 29,702	$ 47,503	$ 56,811
Interest expense	17,311	13,271	34,252	23,441
NET INTEREST INCOME	6,452	16,431	13,251	33,370
REALIZED AND UNREALIZED GAINS (LOSSES), NET
Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS	(4,169)	12,718	(15,012)	39,133
Net unrealized gain (loss) on trading securities, mortgage loans, debt at fair value option (see Note 2), and derivative contracts	379	(73,985)	10,569	(154,166)
TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET	(3,790)	(61,267)	(4,443)	(115,033)
EXPENSES
Operating expenses	2,214	2,977	4,418	6,723
Operating expenses incurred with affiliate	607	838	1,073	1,838
Due diligence and transaction costs	21	519	21	1,182
Stock compensation	207	968	748	1,839
Securitization costs	1,027	0	1,910	2,019
Management fee incurred with affiliate	1,493	2,006	3,015	3,879
Total operating expenses	5,569	7,308	11,185	17,480
INCOME (LOSS) BEFORE INCOME TAXES	(2,907)	(52,144)	(2,377)	(99,143)
Income tax expense (benefit)	781	0	781	(3,457)
NET INCOME (LOSS)	(3,688)	(52,144)	(3,158)	(95,686)
Preferred dividends	0	(4)	0	(8)
NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS	(3,688)	(52,148)	(3,158)	(95,694)
Other comprehensive income (loss)	(242)	11,235	14,562	(1,752)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (3,930)	$ (40,913)	$ 11,404	$ (97,446)
Basic earnings (loss) per common share (USD per share)	$ (0.15)	$ (2.13)	$ (0.13)	$ (3.90)
Diluted earnings (loss) per common share (USD per share)	$ (0.15)	$ (2.13)	$ (0.13)	$ (3.90)
Weighted average number of common shares outstanding:
Basic (shares)	24,686,881	24,458,015	24,674,875	24,549,977
Diluted (shares)	24,686,881	24,458,015	24,674,875	24,549,977

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock at Par	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Retained Earnings (Deficit)
Balance at beginning of period at Dec. 31, 2021	$ 491,390	$ 101	$ 252	$ 476,510	$ 3,000	$ 11,527
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid on common stock	(22,503)					(22,503)
Stock Repurchased During Period, Value	(5,996)		(3)	(5,993)
Non-cash equity compensation	1,839			1,839
Dividends declared - preferred	(8)					(8)
Unrealized gain on RMBS and CMBS	(1,752)				(1,752)
Net income (loss)	(95,686)					(95,686)
Balance at end of period at Jun. 30, 2022	367,284	101	249	472,356	1,248	(106,670)
Balance at beginning of period at Mar. 31, 2022	421,437	101	252	474,377	(9,987)	(43,306)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid on common stock	(11,216)					(11,216)
Stock Repurchased During Period, Value	(2,992)		(3)	(2,989)
Non-cash equity compensation	968			968
Dividends declared - preferred	(4)					(4)
Unrealized gain on RMBS and CMBS	11,235				11,235
Net income (loss)	(52,144)					(52,144)
Balance at end of period at Jun. 30, 2022	367,284	$ 101	249	472,356	1,248	(106,670)
Balance at beginning of period at Dec. 31, 2022	236,479		249	475,379	(21,127)	(218,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid on common stock	(15,955)					(15,955)
Non-cash equity compensation	748			748
Unrealized gain on RMBS and CMBS	14,562				14,562
Net income (loss)	(3,158)					(3,158)
Balance at end of period at Jun. 30, 2023	232,676		249	476,127	(6,565)	(237,135)
Balance at beginning of period at Mar. 31, 2023	244,378		249	475,920	(6,323)	(225,468)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid on common stock	(7,979)					(7,979)
Non-cash equity compensation	207			207
Unrealized gain on RMBS and CMBS	(242)				(242)
Net income (loss)	(3,688)					(3,688)
Balance at end of period at Jun. 30, 2023	$ 232,676		$ 249	$ 476,127	$ (6,565)	$ (237,135)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends paid on common stock (USD per share)	$ 0.32	$ 0.32

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$ (3,158)	$ (95,686)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS		15,012	(39,133)
Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts		(10,569)	154,166
Accretion of discount on U.S. Treasury securities		(659)	0
Amortization of debt issuance costs		733	1,031
Net amortization of premiums and discounts on mortgage loans		1,635	7,284
Non-cash equity compensation		748	1,839
Net change in:
Principal payments on residential mortgage loans in securitization trusts		44,658	156,031
Principal payments on residential mortgage loans		24,963	49,229
Collateral due to counterparties		0	0
Margin received from interest rate futures contracts and TBAs		2,353	73,171
Sale of residential mortgage loans into affiliate’s securitization trust		229,569	0
Principal and interest receivable on residential mortgage loans		7,662	(10,975)
Other assets		(12,651)	(296)
Accrued expenses		(697)	2,143
Accrued expenses payable to affiliate		(951)	114
Interest payable		(1,846)	1,380
Management fee payable to affiliate		(484)	160
Income tax expense (benefit)		781	(3,457)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		280,560	(635,830)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments in RMBS, available for sale		(1,006,023)	(419,748)
Purchases of investments in RMBS, trading		(458,068)	0
Sale of investments in RMBS, available for sale		1,006,196	669,913
Sale of investments in RMBS, trading		449,891	0
Purchase of investment in U.S. Treasury securities		(698,880)	(349,992)
Maturity of U.S. Treasury securities		400,000	600,000
Principal payments on RMBS		202	4,936
Purchases of commercial mortgage loans		0	(3,180)
Sale of commercial mortgage loans		0	578
Principal payments on commercial mortgage loans		17	34
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(306,666)	502,541
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to common stockholders		(15,955)	(22,503)
Dividends paid to preferred shareholders		0	(8)
Repurchases of common stock		0	(5,996)
Principal payments on non-recourse securitization obligation		(44,658)	(156,031)
Cash paid for debt issuance costs		0	(457)
Proceeds from securitization		233,318	520,044
Net proceeds from (payments on) securities sold under agreements to repurchase		288,157	(480,886)
Net proceeds from (payments on) notes payable		(405,900)	248,693
NET CASH PROVIDED BY FINANCING ACTIVITIES		54,962	102,856
CHANGE IN CASH AND RESTRICTED CASH		28,857	(30,433)
CASH AND RESTRICTED CASH, beginning of period	[1]	39,861	52,309
CASH AND RESTRICTED CASH, end of period	[1]	68,717	21,876
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest		32,406	22,061
Nonrelated Party
Net change in:
Purchases of residential mortgage loans		(5,024)	(390,956)
Related Party
Net change in:
Purchases of residential mortgage loans		$ (11,515)	$ (541,875)
[1]Cash, cash equivalents, and restricted cash as of June 30, 2023 included cash and cash equivalents of $59.1 million and restricted cash of $9.6 million, and as of June 30, 2022 included cash and cash equivalents of $16.1 million and restricted cash of $5.8 million.

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 59,140	$ 29,272	$ 16,100
Restricted cash	$ 9,577	$ 10,589	$ 5,800

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Angel Oak Mortgage REIT, Inc. (together with its subsidiaries the “Company”), is a real estate finance company focused on acquiring and investing in first lien non-qualified residential mortgage (“non-QM”) loans and other mortgage‑related assets in the U.S. mortgage market. The Company’s strategy is to make credit-sensitive investments primarily in newly-originated first lien non‑QM loans that are primarily made to higher‑quality non‑QM loan borrowers and primarily sourced from the proprietary mortgage lending platform of affiliates, Angel Oak Mortgage Solutions LLC and Angel Oak Home Loans LLC (together, “Angel Oak Mortgage Lending”), which currently operates primarily through a wholesale channel operated by Angel Oak Mortgage Solutions, LLC and has a national origination footprint. The Company may also invest in other residential mortgage loans, residential mortgage‑backed securities (“RMBS”), and other mortgage‑related assets. The Company’s objective is to generate attractive risk‑adjusted returns for its stockholders, through cash distributions and capital appreciation, across interest rate and credit cycles. The Company is a Maryland corporation incorporated on March 20, 2018. The Company achieves certain of its investment objectives by investing a portion of its assets in its wholly‑owned taxable REIT subsidiary, Angel Oak Mortgage REIT TRS, LLC (“AOMR TRS”), a Delaware limited liability company formed on March 21, 2018, which invests its assets in Angel Oak Mortgage Fund TRS, a Delaware statutory trust formed on June 15, 2018. The Company is traded on the New York Stock Exchange under the ticker symbol AOMR. The Operating Partnership On February 5, 2020, the Company formed Angel Oak Mortgage Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), through which substantially all of its assets are held and substantially all of its operations are conducted, either directly or through subsidiaries. The Company holds all of the limited partnership interests in the Operating Partnership and indirectly holds the sole general partnership interest in the Operating Partnership through the general partner, which is the Company’s wholly-owned subsidiary. The Company’s Manager and REIT status The Company is externally managed and advised by Falcons I, LLC (the “Manager”), a Securities and Exchange Commission-registered investment adviser and an affiliate of Angel Oak Capital Advisors, LLC (“Angel Oak Capital”). The Company has elected to be taxed as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 2019. Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with the instructions to Article 10-01 of Regulation S-X for interim financial statements. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report on Form 10-K”). In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim periods or the entire year. The condensed consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., fair value changes due to inputs and underlying assumptions as described in Note 10 — Fair Value Measurements , credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from the Company’s estimates and the differences could be material. New Accounting Standards and Interpretations As of June 30, 2023, there were no new accounting standards or interpretations adopted by the Company that had a material effect on its condensed consolidated financial statements. Reclassifications Certain amounts reported in prior periods in the financial statements have been reclassified to conform to the current year’s presentation. For comparative purposes, and to simplify the presentation of the Company’s condensed consolidated balance sheet, the deferred tax asset has been reclassified to “other assets” on the condensed consolidated balance sheet as of December 31, 2022. See Note 14 — Other Assets . Certain comparative period amounts have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Condensed Consolidated Statements of Cash Flows for the six months-ended June 30, 2022, to identify amortization of debt issuance costs, net amortization of premiums and discounts of mortgage loans, and principal payments on residential mortgage loans in securitization trusts. Summary of Significant Accounting Policies The Company’s summary of significant accounting policies as set forth in its Annual Report on Form 10-K remain unchanged. During the six months ended June 30, 2023, the Company elected a new accounting classification regarding certain of its investments in debt securities, as further described below, as the Company classifies securities on a trade-by-trade basis upon purchase. The Company did not transfer any securities between classifications. The Company classifies its investments in debt securities in accordance with Accounting Standards Codification 320 - Investments - Debt Securities

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities Since its inception, the Company has utilized Variable Interest Entities (“VIEs”) for the purpose of securitizing whole mortgage loans to obtain long-term non-recourse financing. The Company evaluates its interest in each VIE to determine if it is the primary beneficiary. Below are descriptions of VIEs for which the Company is and is not the primary beneficiary. VIEs for Which the Company is the Primary Beneficiary In 2021, 2022 and 2023, the Company entered into securitization transactions where it was determined that the Company was the primary beneficiary, as, with respect to each securitization vehicle, it controls the class of securities with call rights, or “controlling class” of securities, the XS tranche. The Company was the sole entity to contribute residential whole mortgage loans to these securitization vehicles. The retained beneficial interest in VIEs for which the Company is the primary beneficiary is the subordinated tranches of the securitization and further interests in additional interest‑only tranches. The table below sets forth the fair values of the assets and liabilities recorded in the condensed consolidated balance sheets related to these consolidated VIEs as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Assets: (in thousands) Residential mortgage loans in securitization trusts - cost $ 1,440,100 $ 1,193,879 Fair value adjustment (198,106) (166,437) Residential mortgage loans in securitization trusts - at fair value $ 1,241,994 $ 1,027,442 Accrued interest receivable $ 1,745 $ 1,995 Liabilities (1) : Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, amortized cost $ 448,774 $ 474,070 Less: debt issuance costs capitalized (411) (1,145) Non-recourse securitization obligations, collateralized by residential mortgage loans, amortized cost, net $ 448,363 $ 472,925 Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, subject to fair value adjustment $ 851,103 $ 611,114 Fair value adjustment (88,025) (80,554) Non-recourse securitization obligations, collateralized by residential mortgage loans - at fair value, net $ 763,078 $ 530,560 Total non-recourse securitization obligations, collateralized by residential mortgage loans, net $ 1,211,441 $ 1,003,485 (1) Debt issuance costs for non-recourse securitization obligations electing the fair value option are recorded to expense upon issuance of the securitization. Debt issuance costs incurred with the issuances of non-recourse securitization obligations for which the fair value option was not elected are presented at amortized cost. Income and expense amounts related to the consolidated VIEs recorded in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022 is set forth as follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (in thousands) Interest income $ 12,819 $ 11,469 $ 25,480 $ 21,887 Interest expense, non-recourse liabilities (1) (7,518) (5,679) (15,165) (10,262) Net interest income $ 5,301 $ 5,790 $ 10,315 $ 11,625 Net unrealized gain (loss) on mortgage loans in securitization trusts - at fair value (13,982) (24,578) 7,459 (79,752) Unrealized gain (loss) on mark-to-market of non-recourse securitization obligation - at fair value 9,205 14,361 (18,563) 32,673 Securitization expenses — — — (2,019) Realized losses and operating expenses (439) (252) (1,196) (448) Net loss from consolidated VIEs $ 85 $ (4,679) $ (1,985) $ (37,921) (1) Interest expense includes amortization of debt issuance expense. VIEs for Which the Company is Not the Primary Beneficiary In 2019, 2020 and 2023, the Company sponsored or participated along with other affiliates of Angel Oak Capital in the formation of various entities that were considered to be VIEs. These VIEs were formed to facilitate securitization issuances that were comprised of secured residential whole loans and/or small balance commercial loans contributed to securitization trusts. These securities were issued as a result of the unconsolidated securitizations where the Company retained bonds from the issuances of securitizations issued by a depositor that the Company does not control. The Company determined that it was not then and is not now the primary beneficiary of any of these securitization entities, and thus has not consolidated the operating results or statements of financial position of any of these entities. The Company performs ongoing reassessments of all VIEs in which the Company has participated since its inception as to whether changes in the facts and circumstances regarding the Company’s involvement with a VIE would cause the Company’s consolidation conclusion to change, and the Company’s assessment of these VIEs remains unchanged. The securities received in the securitization transactions were classified as “available for sale” upon receipt and are included in “RMBS - at fair value” and “CMBS - at fair value” on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, and details on the accounting treatment and fair value methodology of the securities can be found in Note 10 — Fair Value Measurements . See also Note 5 — Investment Securities , for the fair value of AOMT securities held by the Company as of June 30, 2023 and December 31, 2022 that were retained by the Company as a result of these securitization transactions.

Residential Mortgage Loans

Residential Mortgage Loans	6 Months Ended
	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Residential Mortgage Loans	Residential Mortgage Loans Residential mortgage loans are mortgage loans on residences located in various states with concentrations in California, Florida, Texas, and Georgia. Residential mortgage loans are measured at fair value. The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s residential mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 337,756 $ 886,661 Unpaid principal balance $ 330,403 $ 864,171 Net premium on mortgage loans purchased 7,353 22,489 Change in fair value (41,227) (115,678) Fair value $ 296,529 $ 770,982 Weighted average interest rate 4.84 % 4.80 % Weighted average remaining maturity (years) 30 30 At times, various forms of margin maintenance on residential mortgage loans may be required by certain financing facility counterparties. See Note 6 — Notes Payable . The following table sets forth data regarding the number of consumer mortgage loans secured by residential real property 90 or more days past due and also those in formal foreclosure proceedings, and the recorded investment and unpaid principal balance of such loans as of June 30, 2023 and December 31, 2022: As of: June 30, 2023 December 31, 2022 ($ in thousands) Number of mortgage loans 90 or more days past due 7 11 Recorded investment in mortgage loans 90 or more days past due $ 5,750 $ 7,230 Unpaid principal balance of loans 90 or more days past due $ 5,600 $ 7,043 Number of mortgage loans in foreclosure 4 2 Recorded investment in mortgage loans in foreclosure $ 1,798 $ 820 Unpaid principal balance of loans in foreclosure $ 1,741 $ 849 Commercial mortgage loans are mortgage loans on commercial properties located in various states with concentrations in Georgia, California, and Tennessee. Commercial mortgage loans are measured at fair value. The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s commercial mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 9,911 $ 9,928 Unpaid principal balance $ 9,911 $ 9,928 Change in fair value (322) (470) Fair value $ 9,589 $ 9,458 Weighted average interest rate 9.17 % 7.03 % Weighted average remaining maturity (years) 7 8 The net discount on commercial mortgage loans was fully amortized as of December 31, 2022. As of June 30, 2023, one commercial mortgage loan, representing $4.3 million in unpaid principal balance, was in foreclosure. On July 3, 2023, this loan was sold for $4.6 million representing the full outstanding principal balance and carrying amount, and accrued costs and fees (see Note 16 — Subsequent Events

Commercial Mortgage Loans

Commercial Mortgage Loans	6 Months Ended
	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Commercial Mortgage Loans	Residential Mortgage Loans Residential mortgage loans are mortgage loans on residences located in various states with concentrations in California, Florida, Texas, and Georgia. Residential mortgage loans are measured at fair value. The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s residential mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 337,756 $ 886,661 Unpaid principal balance $ 330,403 $ 864,171 Net premium on mortgage loans purchased 7,353 22,489 Change in fair value (41,227) (115,678) Fair value $ 296,529 $ 770,982 Weighted average interest rate 4.84 % 4.80 % Weighted average remaining maturity (years) 30 30 At times, various forms of margin maintenance on residential mortgage loans may be required by certain financing facility counterparties. See Note 6 — Notes Payable . The following table sets forth data regarding the number of consumer mortgage loans secured by residential real property 90 or more days past due and also those in formal foreclosure proceedings, and the recorded investment and unpaid principal balance of such loans as of June 30, 2023 and December 31, 2022: As of: June 30, 2023 December 31, 2022 ($ in thousands) Number of mortgage loans 90 or more days past due 7 11 Recorded investment in mortgage loans 90 or more days past due $ 5,750 $ 7,230 Unpaid principal balance of loans 90 or more days past due $ 5,600 $ 7,043 Number of mortgage loans in foreclosure 4 2 Recorded investment in mortgage loans in foreclosure $ 1,798 $ 820 Unpaid principal balance of loans in foreclosure $ 1,741 $ 849 Commercial mortgage loans are mortgage loans on commercial properties located in various states with concentrations in Georgia, California, and Tennessee. Commercial mortgage loans are measured at fair value. The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s commercial mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 9,911 $ 9,928 Unpaid principal balance $ 9,911 $ 9,928 Change in fair value (322) (470) Fair value $ 9,589 $ 9,458 Weighted average interest rate 9.17 % 7.03 % Weighted average remaining maturity (years) 7 8 The net discount on commercial mortgage loans was fully amortized as of December 31, 2022. As of June 30, 2023, one commercial mortgage loan, representing $4.3 million in unpaid principal balance, was in foreclosure. On July 3, 2023, this loan was sold for $4.6 million representing the full outstanding principal balance and carrying amount, and accrued costs and fees (see Note 16 — Subsequent Events

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities As of June 30, 2023, investment securities were comprised of non‑agency RMBS (“AOMT RMBS”), Whole Pool Agency RMBS, commercial mortgage backed securities (“CMBS”), and U.S. Treasury securities. The U.S. Treasury securities held by the Company as of June 30, 2023 subsequently matured on July 13, 2023. The Company did not hold any U.S. Treasury securities as of December 31, 2022. The following table sets forth a summary of AOMT RMBS, Whole Pool Agency RMBS, and CMBS at cost as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (in thousands) AOMT RMBS $ 68,419 $ 69,922 Whole Pool Agency RMBS $ 390,380 $ 1,006,022 CMBS $ 6,419 $ 6,329 The following table sets forth certain information about the Company’s investments in RMBS and CMBS at fair value as of June 30, 2023 and December 31, 2022: Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital June 30, 2023: (in thousands) AOMT RMBS (1) Mezzanine $ 9,533 $ (1,335) $ 8,198 Subordinate 49,938 (21,219) 28,719 Interest Only/Excess 12,438 (1,873) 10,565 Retained RMBS in VIEs (2) — (18,346) (18,346) Total AOMT RMBS $ 71,909 $ (42,773) $ 29,136 Whole Pool Agency RMBS Fannie Mae $ 271,714 $ — $ 271,714 Freddie Mac 116,349 — 116,349 Whole Pool Total Agency RMBS $ 388,063 $ — $ 388,063 Total RMBS $ 459,972 $ (42,773) $ 417,199 AOMT CMBS Subordinate $ 3,083 $ — $ 3,083 Interest Only/Excess 3,770 — 3,770 Total AOMT CMBS $ 6,853 $ — $ 6,853 (1) AOMT RMBS held as of June 30, 2023 included both retained tranches of securitizations in which the Company participated where the Company was not deemed to be the primary beneficiary, and additional securities issued by affiliates of Angel Oak Capital which were purchased in secondary market transactions. (2) A portion of repurchase debt includes borrowings against retained bonds received from securitizations involving consolidated VIEs. These bonds have a fair value of $134.8 million. The Company reflects the underlying assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets rather than the bonds, due to the accounting rules around this type of securitization. Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital December 31, 2022: (in thousands) AOMT RMBS (1) Mezzanine $ 1,958 $ (1,470) $ 488 Subordinate 49,578 (24,982) 24,596 Interest Only/Excess 10,424 (1,506) 8,918 Retained RMBS in VIEs (2) — (24,586) (24,586) Total AOMT RMBS $ 61,960 $ (52,544) $ 9,416 Whole Pool Agency RMBS Fannie Mae $ 501,458 $ — $ 501,458 Freddie Mac 491,920 — 491,920 Whole Pool Total Agency RMBS $ 993,378 $ — $ 993,378 Total RMBS $ 1,055,338 $ (52,544) $ 1,002,794 AOMT CMBS Subordinate $ 2,901 $ — $ 2,901 Interest Only/Excess 3,210 — 3,210 Total AOMT CMBS $ 6,111 $ — $ 6,111 (1) AOMT RMBS held as of December 31, 2022 included both retained tranches of securitizations in which the Company participated where the Company was not deemed to be the primary beneficiary, and additional securities issued by affiliates of Angel Oak Capital which were purchased in secondary market transactions. (2) A portion of repurchase debt includes borrowings against retained bonds received from securitizations involving consolidated VIEs. These bonds have a fair value of $110.5 million. The Company reflects the underlying assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets rather than the bonds, due to the accounting rules around this type of securitization. The following table sets forth certain information about the Company’s investments in U.S. Treasury securities as of June 30, 2023 (1) : Date Face Value Unamortized Discount, net Amortized Cost Unrealized Gain (Loss) Fair Value Net Effective Yield ($ in thousands) June 30, 2023 $ 300,000 $ 460 $ 299,540 $ 41 $ 299,581 5.01 % (1) There were no U.S. Treasury securities held as of December 31, 2022.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2023
Notes Payable [Abstract]
Notes Payable	Notes Payable The Company has the ability to finance residential and commercial whole loans utilizing repurchase agreements with various counterparties (“notes payable”), as further described below. Outstanding borrowings bear interest at floating rates depending on the lending counterparty, the collateral pledged, and the rate in effect for each interest period, as the same may change from time to time at the end of each interest period. Some agreements include upfront fees, fees on unused balances, covenants and concentration limits on types of collateral pledged. Each of these vary based on the counterparty. One of these agreements, as noted below, is a “static pool” financing facility, where the lender has agreed to finance a certain pool of loans contributed to such financing facility, which does not allow for any revolving financing terms. Occasionally, a lender may require cash collateral to be posted as margin collateral on such agreements. As of June 30, 2023, cash collateral for margin maintenance requirements of approximately $4.2 million was held for the benefit of Global Investment Bank 3 within “restricted cash” on the condensed consolidated balance sheet. The majority of this restricted cash balance is in an economic interest rate hedging account under the control of Global Investment Bank 3, and may be drawn by Global Investment Bank 3 at its discretion. As of December 31, 2022, cash collateral for margin maintenance requirements by whole loan financing counterparties was $5.6 million within “restricted cash” on the condensed consolidated balance sheet, of which $3.8 million was held in a segregated restricted cash account and released to the Company by the applicable lender subsequent to December 31, 2022; the remainder of which was held in the economic interest rate hedging account referred to above. The following table sets forth the details of the Company’s notes payable and drawn amounts for whole loan purchases as of June 30, 2023 and December 31, 2022: Interest Drawn Amount Note Payable Base Interest Rate June 30, 2023 December 31, 2022 ($ in thousands) Multinational Bank 1 (1) Average Daily SOFR 2.15% $ 154,779 $ 352,038 Global Investment Bank 2 (2) 1 month SOFR 2.20% - 3.45% — — Global Investment Bank 3 (3) Compound SOFR 2.80% - 4.00% 79,191 119,137 Institutional Investors A and B (4) 1 month Term SOFR 3.50% N/A 168,695 Regional Bank 1 (5) 1 month SOFR 2.50% - 3.50% N/A — Total $ 233,970 $ 639,870 (1) On January 25, 2023, this financing facility was extended through July 25, 2023 in accordance with the terms of the agreement, which contemplates six-month renewals. On April 26, 2023, the Company extended this financing facility through October 25, 2023, with an interest rate pricing spread of 2.15%. Subsequent to June 30, 2023, the Company extended this financing facility through January 25, 2024 with an interest rate pricing spread of 2.10% (see Note 16 — Subsequent Events ). (2) This financing facility expires on February 2, 2024. (3) This static pool financing facility expires on December 19, 2023. The interest rate pricing spread per the agreement began at 2.80% for the first three months following December 19, 2022, exclusive of a 20 basis point index spread adjustment, and increases by an additional 50 basis points every three months thereafter; however, the facility does not, in general, contain “mark to market” provisions. The agreement requires an economic interest rate hedging account (“interest rate futures account”) to be maintained to the reasonable satisfaction of Global Investment Bank 3, as described above, which account is for its benefit and under its sole control. (4) On October 4, 2022, the Company and a subsidiary entered into two separate master repurchase facilities with two affiliates of an institutional investor (“Institutional Investors A and B”) regarding a specific pool of whole loans with financing of approximately $168.7 million on approximately $239.3 million of unpaid principal balance. The master repurchase agreements were set to expire on January 4, 2023, subject to a one-time option to extend for three months, which the Company did not utilize. The Company repaid this financing facility in full on January 4, 2023. The Company held restricted cash pertaining to this lender’s cash collateral requirements included in “restricted cash” on the Company’s condensed consolidated balance sheet as of December 31, 2022, as described above, which was released on January 4, 2023. (5) This agreement expired by its terms on March 16, 2023. The following table sets forth the total unused borrowing capacity of each financing line as of June 30, 2023: Note Payable Borrowing Capacity Balance Outstanding Available Financing (in thousands) Multinational Bank 1 (1) $ 600,000 $ 154,779 $ 445,221 Global Investment Bank 2 (1) 250,000 — 250,000 Global Investment Bank 3 (2) 79,191 79,191 — Total $ 929,191 $ 233,970 $ 695,221 (1) Although available financing is uncommitted, the Company’s unused borrowing capacity is available if it has eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements. (2) As of June 30, 2023, this financing facility had no unused borrowing capacity as the outstanding borrowings were based on a static pool of mortgage loans.

Due to Broker

Due to Broker	6 Months Ended
	Jun. 30, 2023
Broker-Dealer [Abstract]
Due to Broker	Due to Broker The “Due to broker” account on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, respective in the amounts of $390.4 million and $1.0 billion, relates to the purchase of Whole Pool Agency RMBS at quarter-end in the second and fourth quarters of 2023 and 2022, respectively. Purchases are accounted for on a trade date basis, and, at times, there may be a timing difference between the trade date and the settlement date of a trade. The trade dates of these purchases were prior to the applicable quarter-end dates. These trades settled on July 13, 2023 and January 13, 2023, respectively, at which time these assets were simultaneously sold. The purchase transactions of these Whole Pool Agency RMBS are excluded from the condensed consolidated statements of cash flows as they are noncash transactions.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	6 Months Ended
	Jun. 30, 2023
Banking and Thrift, Interest [Abstract]
Securities Sold Under Agreements to Repurchase	Securities Sold Under Agreements to Repurchase Transactions involving securities sold under agreements to repurchase are treated as collateralized financial transactions, and are recorded at their contracted repurchase amounts. Margin (if required) for securities sold under agreements to repurchase represents margin collateral amounts held to ensure that the Company has sufficient coverage for securities sold under agreements to repurchase in case of adverse price changes. Restricted cash of margin collateral for securities sold under agreements to repurchase was $5.0 million and $3.9 million as of June 30, 2023 and December 31, 2022, respectively. The following table summarizes certain characteristics of the Company’s repurchase agreements as of June 30, 2023 and December 31, 2022: June 30, 2023 Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days) ($ in thousands) U.S. Treasury securities $ 297,928 5.15 % 14 RMBS (1) $ 42,773 6.95 % 14 Total $ 340,701 5.38 % 14 December 31, 2022 Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days) ($ in thousands) RMBS (1) 52,544 6.07 % 13 Total $ 52,544 6.07 % 13 (1) A portion of repurchase debt outstanding as of both June 30, 2023 and December 31, 2022 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). See Note 5 — Investment Securities. The repurchase debt against the U.S. Treasury securities was repaid in full upon the maturity of the U.S. Treasury securities.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments In the normal course of business, the Company enters into derivative financial instruments to manage its exposure to market risk, including interest rate risk and prepayment risk on its whole loan investments. The derivatives in which the Company invests, and the market risk that the economic hedge is intended to mitigate are further discussed below. Derivative instruments as of June 30, 2023 and December 31, 2022 included both To-Be-Announced (“TBA”) securities and interest rate futures contracts. Restricted cash relating to interest rate futures margin collateral in interest rate futures accounts under the Company’s sole control as of June 30, 2023 and December 31, 2022 included $0.4 million and $1.1 million, respectively. There was no TBA margin collateral required as of either June 30, 2023 or December 31, 2022. The Company uses interest rate futures as economic hedges to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. The Company’s credit risk with respect to economic hedges is the risk of default on its investments that result from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. The Company may at times hold TBAs in order to mitigate its interest rate risk on certain specified mortgage-backed securities. Amounts or obligations owed by or to the Company are subject to the right of set-off with the TBA counterparty. As part of executing these trades, the Company may enter into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions. Changes in the value of derivatives designed to protect against mortgage-backed securities fair value fluctuations, or economic hedging gains and losses, are reflected in the tables below. All realized and unrealized gains and losses on derivative contracts are recognized in earnings, in “net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS” for realized gains and losses, and “net unrealized gain (loss) gain on trading securities, mortgage loans, debt at fair value option, and derivative contracts” for unrealized gains and losses. The Company considers the notional amounts, categorized by primary underlying risk, to be representative of the volume of its derivative activities. The following table sets forth the derivative instruments presented on the condensed consolidated balance sheets and notional amounts as of June 30, 2023 and December 31, 2022: Notional Amounts As of: Derivatives Not Designated as Hedging Instruments Number of Contracts Assets Liabilities Long Exposure Short Exposure ($ in thousands) June 30, 2023 Interest rate futures 1,462 $ 1,055 $ — $ — $ 146,200 June 30, 2023 TBAs N/A $ 2,239 $ — $ — $ 402,400 December 31, 2022 Interest rate futures 4,928 $ 2,211 $ — $ — $ 492,800 December 31, 2022 TBAs N/A $ 12,545 $ — $ — $ 1,041,700 The gains and losses arising from these derivative instruments in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and June 30, 2022 are set forth as follows: Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments (in thousands) Three Months Ended June 30, 2023 Interest rate futures $ (2,604) $ 8,432 Three Months Ended June 30, 2023 TBAs $ (2,172) $ 3,746 Three Months Ended June 30, 2022 Interest rate futures $ 29,429 $ (13,413) Three Months Ended June 30, 2022 TBAs $ (964) $ (9,577) Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments (in thousands) Six Months Ended June 30, 2023 Interest rate futures $ 5,770 $ (2,052) Six Months Ended June 30, 2023 TBAs $ (2,522) $ (10,306) Six Months Ended June 30, 2022 Interest rate futures $ 49,113 $ 1,322 Six Months Ended June 30, 2022 TBAs $ 13,179 $ (10,686)

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. As of June 30, 2023, our valuation policy and processes had not changed from those described in our consolidated financial statements for the year ended December 31, 2022 included in the Annual Report on Form 10-K. Included in Note 11 — Fair Value Measurements to the Consolidated Financial Statements for the year ended December 31, 2022 included in the Annual Report on Form 10-K is a detailed description of our other financial instruments measured at fair value and their significant inputs, as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy. The fair value of cash, restricted cash, principal and interest receivable, other assets (excluding investment in majority-owned affiliate), notes payable, securities sold under agreements to repurchase, amounts due to broker and accrued expenses (including those payable to an affiliate and management fees payable to an affiliate), and interest payable approximate their carrying values due to the nature of these assets and liabilities. The Company’s “investment in majority-owned affiliate” included in other assets (see Note 14 — Other Assets ) and a portion of “non-recourse securitization obligations, collateralized by residential mortgage loans” are held at amortized cost. The fair value of these assets and liabilities is disclosed further below in the section titled “ Assets and Liabilities Held at Amortized Cost - Fair Value Disclosure ”. The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2023: Level 1 Level 2 Level 3 Total (in thousands) Assets, at fair value Residential mortgage loans $ — $ 290,240 $ 6,289 $ 296,529 Residential mortgage loans in securitization trusts — 1,236,836 5,158 1,241,994 Commercial mortgage loans — 9,589 — 9,589 Investments in securities Non-Agency RMBS (1) — 71,909 — 71,909 Whole Pool Agency RMBS — 388,063 — 388,063 AOMT CMBS (1) — 6,853 — 6,853 U.S Treasury Securities 299,581 — — 299,581 Unrealized appreciation on futures contracts 1,055 — — 1,055 Unrealized appreciation on TBAs 2,239 — — 2,239 Total assets, at fair value $ 302,875 $ 2,003,490 $ 11,447 $ 2,317,812 Liabilities, at fair value Non-recourse securitization obligation, collateralized by residential mortgage loans (2) — 763,078 — 763,078 Total liabilities, at fair value $ — $ 763,078 $ — $ 763,078 (1) Non‑Agency RMBS held as of June 30, 2023 included both retained tranches of securitizations in which the Company participated and additional AOMT securities purchased in secondary market transactions. All AOMT CMBS held as of June 30, 2023 were comprised of a small-balance commercial loan securitization issuance in which the Company participated. (2) Only the portion subject to fair value measurement, as adjusted for fair value, is presented above. See below for the disclosure of the full debt at fair value. Transfers from Level 2 to Level 3 were comprised of residential loans more than 90 days overdue (including those in foreclosure). Transfers between Levels are deemed to take place on the first day of the reporting period in which the transfer has taken place. These transfers were not material. We use third‑party valuation firms who utilize proprietary methodologies to value our residential and commercial loans. These firms generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets. Use of these techniques requires determination of relevant input and assumptions, some of which represent significant unobservable inputs such as anticipated credit losses, prepayment rates, default rates, or other valuation assumptions. Accordingly, a significant increase or decrease in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The following table sets forth information regarding the Company’s significant Level 3 inputs as of June 30, 2023: Input Values Asset Fair Value Unobservable Input Range Average ($ in thousands) Residential mortgage loans, at fair value $ 6,289 Prepayment rate (annual CPR) 4.23% - 11.54% 8.15% Default rate 7.17% - 32.15% 19.00% Loss severity 5.21% - 30.40% 12.60% Expected remaining life 1.76 - 3.39 years 2.33 years Residential mortgage loans in securitization trust, at fair value $ 5,158 Prepayment rate (annual CPR) 3.06% - 12.60% 7.72% Default rate 0.04% - 38.03% 21.58% Loss severity 0.00%- 10.00% 9.33% Expected remaining life 1.30 - 4.37 years 2.22 years Assets and Liabilities Held at Amortized Cost — Fair Value Disclosure Portion of Non-Recourse Securitization Obligations, Collateralized by Residential Mortgage Loans — Held at Amortized Cost To determine the fair value of the Company’s non-recourse securitization obligations, collateralized by residential mortgage loans, net, held at amortized cost, the Company uses the same method of valuation as described in the Annual Report on Form 10-K, Note 11 — Fair Value for both the portion of the obligation measured at fair value and the portion of the obligation held at amortized cost, for which fair value is disclosed below. As of June 30, 2023, the total amortized cost basis and fair value of our non-recourse securitization obligations was $1.4 billion and $1.1 billion, respectively, a difference of approximately $274.7 million (which includes AOMT 2022-1, AOMT 2022-4, and AOMT 2023-4, which are marked to fair value; and AOMT 2021-7 and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations). The fair value solely attributable to AOMT 2021-4 and 2021-7 is approximately $119.2 million less than the amortized cost. The difference between the amortized cost basis value and the fair value is derived from the difference between the period-end market pricing of the underlying bonds, as referred to above, and the amortized cost of the obligation. The fair value of the non-recourse securitization debt is not indicative of the amounts at which we could settle this debt. As of December 31, 2022, the total amortized cost basis and fair value of our non-recourse securitization obligations was $1.1 billion and $914.3 million, respectively, a difference of approximately $170.9 million (which includes AOMT 2022-1 and AOMT 2022-4, which are marked to fair value; and AOMT 2021-7, and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations). The difference between the amortized cost and fair value solely attributable to AOMT 2021-4 and 2021-7 is approximately $90.3 million. The difference between the amortized cost basis value and the fair value is derived from the difference between the period-end market pricing of the underlying bonds, as referred to above, and the amortized cost of the obligation. The fair value of the non-recourse securitization debt is not indicative of the amounts at which we could settle this debt. Investment in Majority-Owned Affiliate To determine the fair value of the Company’s investment in majority-owned affiliate, which is held at amortized cost and is included in “other assets”, the Company uses the prices of the underlying bonds in the investment to determine fair value. The Company utilizes PriceServe, Bank of America’s independent fixed income pricing service, as the primary valuation source for these bonds. PriceServe obtains its price quotes from actual sales or quotes for sale of the same or similar securities and/or provides model‑based valuations that consider inputs derived from recent market activity including default rates, conditional prepayment rates, loss severity, expected yield to maturity, baseline discount margin/yield, recovery assumptions, tranche type, collateral coupon, age and loan size, and other inputs specific to each security. We believe that these quotes are most reflective of the price that would be achieved if the bonds were sold to an independent third party on the date of the condensed consolidated financial statements. The amortized cost and fair value of this investment as of June 30, 2023 was approximately $11.5 million and $11.0 million, respectively. The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total (in thousands) Assets, at fair value Residential mortgage loans $ — $ 763,786 $ 7,196 $ 770,982 Residential mortgage loans in securitization trusts — 1,018,686 8,756 1,027,442 Commercial mortgage loans — 9,458 — 9,458 Investments in securities Non-Agency RMBS (1) — 61,960 — 61,960 Whole Pool Agency RMBS — 993,378 — 993,378 AOMT CMBS (1) — 6,111 — 6,111 Unrealized appreciation on futures contracts 2,211 — — 2,211 Unrealized appreciation on TBAs 12,545 — — 12,545 Total assets, at fair value $ 14,756 $ 2,853,379 $ 15,952 $ 2,884,087 Liabilities, at fair value Non-recourse securitization obligation, collateralized by residential mortgage loans (2) $ — $ 530,560 $ — $ 530,560 Total liabilities, at fair value $ — $ 530,560 $ — $ 530,560 (1) Non‑Agency RMBS held as of December 31, 2022 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions. All AOMT CMBS held as of December 31, 2022 was comprised of a small-balance commercial loan securitization issuance in which the Company participated. (2) Only the portion subject to fair value measurement, as adjusted for fair value, is presented above. Transfers from Level 2 to Level 3 were comprised of residential loans more than 90 days overdue (including those in foreclosure) and commercial mortgage loans in special servicing or otherwise considered “non‑performing” by the Company’s third‑party valuation providers. Transfers between Levels are deemed to take place on the first day of the reporting period in which the transfer has taken place. These transfers were not material. We use third‑party valuation firms who utilize proprietary methodologies to value our residential and commercial loans. These firms generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets. Use of these techniques requires determination of relevant input and assumptions, some of which represent significant unobservable inputs such as anticipated credit losses, prepayment rates, default rates, or other valuation assumptions. Accordingly, a significant increase or decrease in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The following table sets forth information regarding the Company’s significant Level 3 inputs as of December 31, 2022: Input Values Asset Fair Value Unobservable Input Range Average ($ in thousands) Residential mortgage loans, at fair value $ 7,196 Prepayment rate (annual CPR) 4.92% - 14.99% 9.39% Default rate 4.56% - 24.36% 11.43% Loss severity (0.25)% - 12.54% 7.84% Expected remaining life 0.62 - 3.43 years 2.75 years Residential mortgage loans in securitization trust, at fair value $ 8,756 Prepayment rate (annual CPR) 3.24% - 14.55% 7.84% Default rate 7.42% - 35.78% 19.07% Loss severity 0% - 10.00% 9.23% Expected remaining life 1.42 - 3.72 years 2.32 years

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Residential Mortgage Loan Purchases The Company has residential loan purchase agreements with various affiliates of the Company. The purchase price of the loans is generally equal to the outstanding principal of the mortgage, adjusted by a premium or discount, depending on market conditions. The Company purchases the mortgage loans on a servicing retained basis. The following table sets forth certain financial information pertaining to whole loan activity purchased from affiliates during the six month period ended June 30, 2023 and 12 month period ended December 31, 2022: As of and for the Year-to-Date/Year Ended: Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Ended Number of Loans Purchased from Affiliates during the Year-to-Date/Year Ended Number of Loans Purchased from Affiliates, Owned and Held as of the Periods Ended (1) ($ in thousands) June 30, 2023 $ 11,515 38 563 December 31, 2022 $ 567,324 1,141 845 (1) Excludes loans held in consolidated securitizations. Commercial Mortgage Loan Purchases The Company has commercial loan purchase agreements with various affiliates of the Company. The Company did not purchase any commercial loans in either the six month period ended June 30, 2023 or the 12 month period ended December 31, 2022. Securitization Transactions and Majority-Owned Affiliate From time to time, the Company participates in securitization transactions with other affiliates of Angel Oak Capital. See Note 2 — Variable Interest Entities , “ VIEs for Which the Company is Not the Primary Beneficiary” and Note 14 — Other Assets . Management Fee The Company’s management agreement, effective as of June 21, 2021, by and among the Company, the Operating Partnership, and the Manager (the “Management Agreement”), provides that the Company will pay the Manager, in arrears, an aggregate fixed management fee equal to 1.5% per annum of the Company’s Equity (as is defined in the Management Agreement). Incentive Fee Under the Management Agreement, the Manager is also entitled to an incentive fee, which is calculated and payable in cash with respect to each calendar quarter (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the excess of (1) the product of (a) 15% and (b) the excess of (i) the Company’s Distributable Earnings (as defined in the Management Agreement) for the previous 12-month period, over (ii) the product of (A) the Company’s Equity (as defined in the Management Agreement) in the previous 12-month period, and (B) 8% per annum, over (2) the sum of any incentive fee earned by the Manager with respect to the first three calendar quarters of such previous 12-month period. To date, the incentive fee has not been earned. Operating Expense Reimbursements The Company is also required to pay the Manager reimbursements for certain general and administrative expenses pursuant to the Management Agreement. Accrued expenses payable to affiliate and operating expenses incurred with affiliate are substantially comprised of payroll reimbursements to an affiliate of the Manager.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company, from time to time, may be party to litigation relating to claims arising in the normal course of business. As of June 30, 2023, the Company was not aware of any legal claims that could materially impact its financial condition. As of June 30, 2023, the Company had no unfunded commitments. The Company has a loan release obligation on the facility with Global Investment Bank 3 that is eligible for up to a 100% reduction based on certain criteria that may extended beyond the current term of the financing facility. The maximum potential liability is $1.1 million, which has not been recorded in the condensed consolidated financial statements as the actual liability is not currently determinable.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income /(Loss)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Accumulated Other Comprehensive Income /(Loss)	Accumulated Other Comprehensive Income/(Loss) The following table sets forth the net unrealized gain/(loss) on AFS securities for the three months ended June 30, 2023 and 2022, which is the sole component of the changes in the Company’s Accumulated Other Comprehensive Income/(Loss) (“AOCI”) for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (in thousands) AOCI balance, beginning of period $ (6,323) $ (9,987) Net unrealized gain/(loss) on AFS securities (242) 11,235 AOCI balance, end of period $ (6,565) $ 1,248 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (in thousands) AOCI balance, beginning of period $ (21,127) $ 3,000 Net unrealized gain/(loss) on AFS securities 14,562 (1,752) AOCI balance, end of period $ (6,565) $ 1,248

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets The following table sets forth the detail of other assets included in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Investment in Majority-Owned Affiliate $ 11,510 $ — Deferred tax asset 3,457 3,457 Prepaid expenses 2,172 1,310 Protective advances and other assets 279 — Total other assets $ 17,418 $ 4,767 Investment in Majority-Owned Affiliate (“MOA”) In the first quarter of 2023, the Company participated in a securitization transaction, AOMT 2023-1, which involved a MOA in which the Company received a 41.21% investment, proportional to its share of the unpaid principal balance of the residential whole loans contributed to the securitization. The purpose of the MOA is to retain and hold risk retention bonds issued by the securitization trust. The MOA is an LLC and is accounted for as an equity method investment and held at amortized cost. The investment will be tested for impairment at least annually utilizing undiscounted cash flows of the underlying risk retention bonds. See Note 10 — Fair Value Measurements .

Equity and Earnings per Share (

Equity and Earnings per Share ("EPS")	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Equity and Earnings per Share ("EPS")	Equity and Earnings per Share (“EPS”) In the calculations of basic and diluted earnings per common share for the three and six month periods ended June 30, 2023 and 2022, the Company included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. For the three and six month periods ended June 30, 2023, there were 165,473 anti-dilutive outstanding restricted stock awards and 49,370 performance shares, although the market-based “total stockholder return” conditions for performance share units had not been achieved and thus these units were not included in the diluted weighted average common shares outstanding. For the three and six month periods ended June 30, 2022, there were 362,536 outstanding restricted stock awards that were anti-dilutive and thus not included in the diluted weighted average common shares outstanding. There were no market-based performance share units outstanding as of June 30, 2022. The following table sets forth the calculation of basic and diluted earnings per share for the three months ended June 30, 2023 and 2022: June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Basic Earnings (Loss) per Common Share: Net income (loss) to common stockholders $ (3,688) $ (52,148) Dividends allocated to participating securities (45) — Net income (loss) to common stockholders - basic $ (3,733) $ (52,148) Basic weighted average common shares outstanding 24,686,881 24,458,015 Basic earnings (loss) per common share $ (0.15) $ (2.13) Diluted Earnings (Loss) per Common Share: Net income (loss) to common stockholders - basic $ (3,688) $ (52,148) Dividends allocated to participating securities (45) — Net income (loss) to common stockholders - diluted $ (3,733) $ (52,148) Basic weighted average common shares outstanding 24,686,881 24,458,015 Net effect of dilutive equity awards — — Diluted weighted average common shares outstanding 24,686,881 24,458,015 Diluted earnings (loss) per common share $ (0.15) $ (2.13) The following table sets forth the calculation of basic and diluted earnings per share for the six months ended June 30, 2023 and 2022: June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Basic Earnings (Loss) per Common Share: Net income (loss) to common stockholders $ (3,158) $ (95,694) Dividends allocated to participating securities (81) — Net income (loss) to common stockholders - basic $ (3,239) $ (95,694) Basic weighted average common shares outstanding 24,674,875 24,549,977 Basic earnings (loss) per common share $ (0.13) $ (3.90) Diluted Earnings (Loss) per Common Share: Net income (loss) to common stockholders - basic $ (3,158) $ (95,694) Dividends allocated to participating securities (81) — Net income (loss) to common stockholders - diluted $ (3,239) $ (95,694) Basic weighted average common shares outstanding 24,674,875 24,549,977 Net effect of dilutive equity awards — — Diluted weighted average common shares outstanding 24,674,875 24,549,977 Diluted earnings (loss) per common share $ (0.13) $ (3.90)

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 3, 2023, a commercial mortgage loan representing $4.3 million in principal balance was sold for $4.6 million representing the full outstanding principal balance and carrying amount, and accrued costs and fees. On July 25, 2023, the Company renewed its loan financing facility with Multinational Bank 1 in accordance with the mechanism for six-month renewal periods provided for in the original Master Repurchase Agreement with Multinational Bank 1, dated April 13, 2022. This loan financing facility has been extended to January 25, 2024 with an updated interest rate pricing spread of 2.10%. On August 8, 2023, the Company declared a dividend of $0.32 per share of common stock, to be paid on August 31, 2023 to common stockholders of record as of August 22, 2023.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The Company is a Maryland corporation incorporated on March 20, 2018. The Company achieves certain of its investment objectives by investing a portion of its assets in its wholly‑owned taxable REIT subsidiary, Angel Oak Mortgage REIT TRS, LLC (“AOMR TRS”), a Delaware limited liability company formed on March 21, 2018, which invests its assets in Angel Oak Mortgage Fund TRS, a Delaware statutory trust formed on June 15, 2018. The Company is traded on the New York Stock Exchange under the ticker symbol AOMR. The Operating Partnership On February 5, 2020, the Company formed Angel Oak Mortgage Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), through which substantially all of its assets are held and substantially all of its operations are conducted, either directly or through subsidiaries. The Company holds all of the limited partnership interests in the Operating Partnership and indirectly holds the sole general partnership interest in the Operating Partnership through the general partner, which is the Company’s wholly-owned subsidiary. The Company’s Manager and REIT status The Company is externally managed and advised by Falcons I, LLC (the “Manager”), a Securities and Exchange Commission-registered investment adviser and an affiliate of Angel Oak Capital Advisors, LLC (“Angel Oak Capital”). The Company has elected to be taxed as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 2019.
Interim Financial Statements	Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with the instructions to Article 10-01 of Regulation S-X for interim financial statements. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report on Form 10-K”). In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim periods or the entire year. The condensed consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., fair value changes due to inputs and underlying assumptions as described in Note 10 — Fair Value Measurements , credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from the Company’s estimates and the differences could be material.
New Accounting Standards and Interpretations and Summary of Significant Accounting Policies	New Accounting Standards and Interpretations As of June 30, 2023, there were no new accounting standards or interpretations adopted by the Company that had a material effect on its condensed consolidated financial statements. Summary of Significant Accounting Policies The Company’s summary of significant accounting policies as set forth in its Annual Report on Form 10-K remain unchanged. During the six months ended June 30, 2023, the Company elected a new accounting classification regarding certain of its investments in debt securities, as further described below, as the Company classifies securities on a trade-by-trade basis upon purchase. The Company did not transfer any securities between classifications. The Company classifies its investments in debt securities in accordance with Accounting Standards Codification 320 - Investments - Debt Securities
Reclassifications	Reclassifications Certain amounts reported in prior periods in the financial statements have been reclassified to conform to the current year’s presentation. For comparative purposes, and to simplify the presentation of the Company’s condensed consolidated balance sheet, the deferred tax asset has been reclassified to “other assets” on the condensed consolidated balance sheet as of December 31, 2022. See Note 14 — Other Assets .
VIEs for Which the Company is Not the Primary Beneficiary	VIEs for Which the Company is Not the Primary Beneficiary In 2019, 2020 and 2023, the Company sponsored or participated along with other affiliates of Angel Oak Capital in the formation of various entities that were considered to be VIEs. These VIEs were formed to facilitate securitization issuances that were comprised of secured residential whole loans and/or small balance commercial loans contributed to securitization trusts. These securities were issued as a result of the unconsolidated securitizations where the Company retained bonds from the issuances of securitizations issued by a depositor that the Company does not control. The Company determined that it was not then and is not now the primary beneficiary of any of these securitization entities, and thus has not consolidated the operating results or statements of financial position of any of these entities. The Company performs ongoing reassessments of all VIEs in which the Company has participated since its inception as to whether changes in the facts and circumstances regarding the Company’s involvement with a VIE would cause the Company’s consolidation conclusion to change, and the Company’s assessment of these VIEs remains unchanged.

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The table below sets forth the fair values of the assets and liabilities recorded in the condensed consolidated balance sheets related to these consolidated VIEs as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Assets: (in thousands) Residential mortgage loans in securitization trusts - cost $ 1,440,100 $ 1,193,879 Fair value adjustment (198,106) (166,437) Residential mortgage loans in securitization trusts - at fair value $ 1,241,994 $ 1,027,442 Accrued interest receivable $ 1,745 $ 1,995 Liabilities (1) : Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, amortized cost $ 448,774 $ 474,070 Less: debt issuance costs capitalized (411) (1,145) Non-recourse securitization obligations, collateralized by residential mortgage loans, amortized cost, net $ 448,363 $ 472,925 Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, subject to fair value adjustment $ 851,103 $ 611,114 Fair value adjustment (88,025) (80,554) Non-recourse securitization obligations, collateralized by residential mortgage loans - at fair value, net $ 763,078 $ 530,560 Total non-recourse securitization obligations, collateralized by residential mortgage loans, net $ 1,211,441 $ 1,003,485 (1) Debt issuance costs for non-recourse securitization obligations electing the fair value option are recorded to expense upon issuance of the securitization. Debt issuance costs incurred with the issuances of non-recourse securitization obligations for which the fair value option was not elected are presented at amortized cost. Income and expense amounts related to the consolidated VIEs recorded in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022 is set forth as follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (in thousands) Interest income $ 12,819 $ 11,469 $ 25,480 $ 21,887 Interest expense, non-recourse liabilities (1) (7,518) (5,679) (15,165) (10,262) Net interest income $ 5,301 $ 5,790 $ 10,315 $ 11,625 Net unrealized gain (loss) on mortgage loans in securitization trusts - at fair value (13,982) (24,578) 7,459 (79,752) Unrealized gain (loss) on mark-to-market of non-recourse securitization obligation - at fair value 9,205 14,361 (18,563) 32,673 Securitization expenses — — — (2,019) Realized losses and operating expenses (439) (252) (1,196) (448) Net loss from consolidated VIEs $ 85 $ (4,679) $ (1,985) $ (37,921) (1) Interest expense includes amortization of debt issuance expense.

Residential Mortgage Loans (Tab

Residential Mortgage Loans (Tables)	6 Months Ended
	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule of Residential Mortgage Loans	The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s residential mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 337,756 $ 886,661 Unpaid principal balance $ 330,403 $ 864,171 Net premium on mortgage loans purchased 7,353 22,489 Change in fair value (41,227) (115,678) Fair value $ 296,529 $ 770,982 Weighted average interest rate 4.84 % 4.80 % Weighted average remaining maturity (years) 30 30 June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 9,911 $ 9,928 Unpaid principal balance $ 9,911 $ 9,928 Change in fair value (322) (470) Fair value $ 9,589 $ 9,458 Weighted average interest rate 9.17 % 7.03 % Weighted average remaining maturity (years) 7 8
Schedule of Financing Receivables Past Due	The following table sets forth data regarding the number of consumer mortgage loans secured by residential real property 90 or more days past due and also those in formal foreclosure proceedings, and the recorded investment and unpaid principal balance of such loans as of June 30, 2023 and December 31, 2022: As of: June 30, 2023 December 31, 2022 ($ in thousands) Number of mortgage loans 90 or more days past due 7 11 Recorded investment in mortgage loans 90 or more days past due $ 5,750 $ 7,230 Unpaid principal balance of loans 90 or more days past due $ 5,600 $ 7,043 Number of mortgage loans in foreclosure 4 2 Recorded investment in mortgage loans in foreclosure $ 1,798 $ 820 Unpaid principal balance of loans in foreclosure $ 1,741 $ 849

Commercial Mortgage Loans (Tabl

Commercial Mortgage Loans (Tables)	6 Months Ended
	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule of Commercial Mortgage Loans	The following table sets forth the cost, fair value, weighted average interest rate, and weighted average remaining maturity of the Company’s residential mortgage loan portfolio as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 337,756 $ 886,661 Unpaid principal balance $ 330,403 $ 864,171 Net premium on mortgage loans purchased 7,353 22,489 Change in fair value (41,227) (115,678) Fair value $ 296,529 $ 770,982 Weighted average interest rate 4.84 % 4.80 % Weighted average remaining maturity (years) 30 30 June 30, 2023 December 31, 2022 ($ in thousands) Cost $ 9,911 $ 9,928 Unpaid principal balance $ 9,911 $ 9,928 Change in fair value (322) (470) Fair value $ 9,589 $ 9,458 Weighted average interest rate 9.17 % 7.03 % Weighted average remaining maturity (years) 7 8

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of RMBS and CMBS Securities at Cost and Investments in U.S. Treasury Bills	The following table sets forth a summary of AOMT RMBS, Whole Pool Agency RMBS, and CMBS at cost as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (in thousands) AOMT RMBS $ 68,419 $ 69,922 Whole Pool Agency RMBS $ 390,380 $ 1,006,022 CMBS $ 6,419 $ 6,329 The following table sets forth certain information about the Company’s investments in U.S. Treasury securities as of June 30, 2023 (1) : Date Face Value Unamortized Discount, net Amortized Cost Unrealized Gain (Loss) Fair Value Net Effective Yield ($ in thousands) June 30, 2023 $ 300,000 $ 460 $ 299,540 $ 41 $ 299,581 5.01 % (1) There were no U.S. Treasury securities held as of December 31, 2022.
Schedule of Investments in RMBS and CMBS at Fair Value	The following table sets forth certain information about the Company’s investments in RMBS and CMBS at fair value as of June 30, 2023 and December 31, 2022: Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital June 30, 2023: (in thousands) AOMT RMBS (1) Mezzanine $ 9,533 $ (1,335) $ 8,198 Subordinate 49,938 (21,219) 28,719 Interest Only/Excess 12,438 (1,873) 10,565 Retained RMBS in VIEs (2) — (18,346) (18,346) Total AOMT RMBS $ 71,909 $ (42,773) $ 29,136 Whole Pool Agency RMBS Fannie Mae $ 271,714 $ — $ 271,714 Freddie Mac 116,349 — 116,349 Whole Pool Total Agency RMBS $ 388,063 $ — $ 388,063 Total RMBS $ 459,972 $ (42,773) $ 417,199 AOMT CMBS Subordinate $ 3,083 $ — $ 3,083 Interest Only/Excess 3,770 — 3,770 Total AOMT CMBS $ 6,853 $ — $ 6,853 (1) AOMT RMBS held as of June 30, 2023 included both retained tranches of securitizations in which the Company participated where the Company was not deemed to be the primary beneficiary, and additional securities issued by affiliates of Angel Oak Capital which were purchased in secondary market transactions. (2) A portion of repurchase debt includes borrowings against retained bonds received from securitizations involving consolidated VIEs. These bonds have a fair value of $134.8 million. The Company reflects the underlying assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets rather than the bonds, due to the accounting rules around this type of securitization. Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital December 31, 2022: (in thousands) AOMT RMBS (1) Mezzanine $ 1,958 $ (1,470) $ 488 Subordinate 49,578 (24,982) 24,596 Interest Only/Excess 10,424 (1,506) 8,918 Retained RMBS in VIEs (2) — (24,586) (24,586) Total AOMT RMBS $ 61,960 $ (52,544) $ 9,416 Whole Pool Agency RMBS Fannie Mae $ 501,458 $ — $ 501,458 Freddie Mac 491,920 — 491,920 Whole Pool Total Agency RMBS $ 993,378 $ — $ 993,378 Total RMBS $ 1,055,338 $ (52,544) $ 1,002,794 AOMT CMBS Subordinate $ 2,901 $ — $ 2,901 Interest Only/Excess 3,210 — 3,210 Total AOMT CMBS $ 6,111 $ — $ 6,111 (1) AOMT RMBS held as of December 31, 2022 included both retained tranches of securitizations in which the Company participated where the Company was not deemed to be the primary beneficiary, and additional securities issued by affiliates of Angel Oak Capital which were purchased in secondary market transactions. (2) A portion of repurchase debt includes borrowings against retained bonds received from securitizations involving consolidated VIEs. These bonds have a fair value of $110.5 million. The Company reflects the underlying assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets rather than the bonds, due to the accounting rules around this type of securitization.

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Payable [Abstract]
Schedule of Lines of Credit Available and Drawn Amounts for Whole Loan Purchases	The following table sets forth the details of the Company’s notes payable and drawn amounts for whole loan purchases as of June 30, 2023 and December 31, 2022: Interest Drawn Amount Note Payable Base Interest Rate June 30, 2023 December 31, 2022 ($ in thousands) Multinational Bank 1 (1) Average Daily SOFR 2.15% $ 154,779 $ 352,038 Global Investment Bank 2 (2) 1 month SOFR 2.20% - 3.45% — — Global Investment Bank 3 (3) Compound SOFR 2.80% - 4.00% 79,191 119,137 Institutional Investors A and B (4) 1 month Term SOFR 3.50% N/A 168,695 Regional Bank 1 (5) 1 month SOFR 2.50% - 3.50% N/A — Total $ 233,970 $ 639,870 (1) On January 25, 2023, this financing facility was extended through July 25, 2023 in accordance with the terms of the agreement, which contemplates six-month renewals. On April 26, 2023, the Company extended this financing facility through October 25, 2023, with an interest rate pricing spread of 2.15%. Subsequent to June 30, 2023, the Company extended this financing facility through January 25, 2024 with an interest rate pricing spread of 2.10% (see Note 16 — Subsequent Events ). (2) This financing facility expires on February 2, 2024. (3) This static pool financing facility expires on December 19, 2023. The interest rate pricing spread per the agreement began at 2.80% for the first three months following December 19, 2022, exclusive of a 20 basis point index spread adjustment, and increases by an additional 50 basis points every three months thereafter; however, the facility does not, in general, contain “mark to market” provisions. The agreement requires an economic interest rate hedging account (“interest rate futures account”) to be maintained to the reasonable satisfaction of Global Investment Bank 3, as described above, which account is for its benefit and under its sole control. (4) On October 4, 2022, the Company and a subsidiary entered into two separate master repurchase facilities with two affiliates of an institutional investor (“Institutional Investors A and B”) regarding a specific pool of whole loans with financing of approximately $168.7 million on approximately $239.3 million of unpaid principal balance. The master repurchase agreements were set to expire on January 4, 2023, subject to a one-time option to extend for three months, which the Company did not utilize. The Company repaid this financing facility in full on January 4, 2023. The Company held restricted cash pertaining to this lender’s cash collateral requirements included in “restricted cash” on the Company’s condensed consolidated balance sheet as of December 31, 2022, as described above, which was released on January 4, 2023. (5) This agreement expired by its terms on March 16, 2023. The following table sets forth the total unused borrowing capacity of each financing line as of June 30, 2023: Note Payable Borrowing Capacity Balance Outstanding Available Financing (in thousands) Multinational Bank 1 (1) $ 600,000 $ 154,779 $ 445,221 Global Investment Bank 2 (1) 250,000 — 250,000 Global Investment Bank 3 (2) 79,191 79,191 — Total $ 929,191 $ 233,970 $ 695,221 (1) Although available financing is uncommitted, the Company’s unused borrowing capacity is available if it has eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements. (2) As of June 30, 2023, this financing facility had no unused borrowing capacity as the outstanding borrowings were based on a static pool of mortgage loans.

Securities Sold Under Agreeme_2

Securities Sold Under Agreements to Repurchase (Tables)	6 Months Ended
	Jun. 30, 2023
Banking and Thrift, Interest [Abstract]
Schedule of Repurchase Agreements	The following table summarizes certain characteristics of the Company’s repurchase agreements as of June 30, 2023 and December 31, 2022: June 30, 2023 Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days) ($ in thousands) U.S. Treasury securities $ 297,928 5.15 % 14 RMBS (1) $ 42,773 6.95 % 14 Total $ 340,701 5.38 % 14 December 31, 2022 Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days) ($ in thousands) RMBS (1) 52,544 6.07 % 13 Total $ 52,544 6.07 % 13 (1) A portion of repurchase debt outstanding as of both June 30, 2023 and December 31, 2022 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs). See Note 5 — Investment Securities.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments Presented on the Balance Sheet and Notional Amounts	The following table sets forth the derivative instruments presented on the condensed consolidated balance sheets and notional amounts as of June 30, 2023 and December 31, 2022: Notional Amounts As of: Derivatives Not Designated as Hedging Instruments Number of Contracts Assets Liabilities Long Exposure Short Exposure ($ in thousands) June 30, 2023 Interest rate futures 1,462 $ 1,055 $ — $ — $ 146,200 June 30, 2023 TBAs N/A $ 2,239 $ — $ — $ 402,400 December 31, 2022 Interest rate futures 4,928 $ 2,211 $ — $ — $ 492,800 December 31, 2022 TBAs N/A $ 12,545 $ — $ — $ 1,041,700
Schedule of Derivatives Not Designated as Hedging Instruments	The gains and losses arising from these derivative instruments in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and June 30, 2022 are set forth as follows: Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments (in thousands) Three Months Ended June 30, 2023 Interest rate futures $ (2,604) $ 8,432 Three Months Ended June 30, 2023 TBAs $ (2,172) $ 3,746 Three Months Ended June 30, 2022 Interest rate futures $ 29,429 $ (13,413) Three Months Ended June 30, 2022 TBAs $ (964) $ (9,577) Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments (in thousands) Six Months Ended June 30, 2023 Interest rate futures $ 5,770 $ (2,052) Six Months Ended June 30, 2023 TBAs $ (2,522) $ (10,306) Six Months Ended June 30, 2022 Interest rate futures $ 49,113 $ 1,322 Six Months Ended June 30, 2022 TBAs $ 13,179 $ (10,686)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value	The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2023: Level 1 Level 2 Level 3 Total (in thousands) Assets, at fair value Residential mortgage loans $ — $ 290,240 $ 6,289 $ 296,529 Residential mortgage loans in securitization trusts — 1,236,836 5,158 1,241,994 Commercial mortgage loans — 9,589 — 9,589 Investments in securities Non-Agency RMBS (1) — 71,909 — 71,909 Whole Pool Agency RMBS — 388,063 — 388,063 AOMT CMBS (1) — 6,853 — 6,853 U.S Treasury Securities 299,581 — — 299,581 Unrealized appreciation on futures contracts 1,055 — — 1,055 Unrealized appreciation on TBAs 2,239 — — 2,239 Total assets, at fair value $ 302,875 $ 2,003,490 $ 11,447 $ 2,317,812 Liabilities, at fair value Non-recourse securitization obligation, collateralized by residential mortgage loans (2) — 763,078 — 763,078 Total liabilities, at fair value $ — $ 763,078 $ — $ 763,078 (1) Non‑Agency RMBS held as of June 30, 2023 included both retained tranches of securitizations in which the Company participated and additional AOMT securities purchased in secondary market transactions. All AOMT CMBS held as of June 30, 2023 were comprised of a small-balance commercial loan securitization issuance in which the Company participated. (2) Only the portion subject to fair value measurement, as adjusted for fair value, is presented above. See below for the disclosure of the full debt at fair value. The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total (in thousands) Assets, at fair value Residential mortgage loans $ — $ 763,786 $ 7,196 $ 770,982 Residential mortgage loans in securitization trusts — 1,018,686 8,756 1,027,442 Commercial mortgage loans — 9,458 — 9,458 Investments in securities Non-Agency RMBS (1) — 61,960 — 61,960 Whole Pool Agency RMBS — 993,378 — 993,378 AOMT CMBS (1) — 6,111 — 6,111 Unrealized appreciation on futures contracts 2,211 — — 2,211 Unrealized appreciation on TBAs 12,545 — — 12,545 Total assets, at fair value $ 14,756 $ 2,853,379 $ 15,952 $ 2,884,087 Liabilities, at fair value Non-recourse securitization obligation, collateralized by residential mortgage loans (2) $ — $ 530,560 $ — $ 530,560 Total liabilities, at fair value $ — $ 530,560 $ — $ 530,560 (1) Non‑Agency RMBS held as of December 31, 2022 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions. All AOMT CMBS held as of December 31, 2022 was comprised of a small-balance commercial loan securitization issuance in which the Company participated. (2) Only the portion subject to fair value measurement, as adjusted for fair value, is presented above.
Schedule of Significant Level 3 Inputs	The following table sets forth information regarding the Company’s significant Level 3 inputs as of June 30, 2023: Input Values Asset Fair Value Unobservable Input Range Average ($ in thousands) Residential mortgage loans, at fair value $ 6,289 Prepayment rate (annual CPR) 4.23% - 11.54% 8.15% Default rate 7.17% - 32.15% 19.00% Loss severity 5.21% - 30.40% 12.60% Expected remaining life 1.76 - 3.39 years 2.33 years Residential mortgage loans in securitization trust, at fair value $ 5,158 Prepayment rate (annual CPR) 3.06% - 12.60% 7.72% Default rate 0.04% - 38.03% 21.58% Loss severity 0.00%- 10.00% 9.33% Expected remaining life 1.30 - 4.37 years 2.22 years The following table sets forth information regarding the Company’s significant Level 3 inputs as of December 31, 2022: Input Values Asset Fair Value Unobservable Input Range Average ($ in thousands) Residential mortgage loans, at fair value $ 7,196 Prepayment rate (annual CPR) 4.92% - 14.99% 9.39% Default rate 4.56% - 24.36% 11.43% Loss severity (0.25)% - 12.54% 7.84% Expected remaining life 0.62 - 3.43 years 2.75 years Residential mortgage loans in securitization trust, at fair value $ 8,756 Prepayment rate (annual CPR) 3.24% - 14.55% 7.84% Default rate 7.42% - 35.78% 19.07% Loss severity 0% - 10.00% 9.23% Expected remaining life 1.42 - 3.72 years 2.32 years

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table sets forth certain financial information pertaining to whole loan activity purchased from affiliates during the six month period ended June 30, 2023 and 12 month period ended December 31, 2022: As of and for the Year-to-Date/Year Ended: Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Ended Number of Loans Purchased from Affiliates during the Year-to-Date/Year Ended Number of Loans Purchased from Affiliates, Owned and Held as of the Periods Ended (1) ($ in thousands) June 30, 2023 $ 11,515 38 563 December 31, 2022 $ 567,324 1,141 845 (1) Excludes loans held in consolidated securitizations.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income /(Loss) (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income /(Loss)	The following table sets forth the net unrealized gain/(loss) on AFS securities for the three months ended June 30, 2023 and 2022, which is the sole component of the changes in the Company’s Accumulated Other Comprehensive Income/(Loss) (“AOCI”) for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (in thousands) AOCI balance, beginning of period $ (6,323) $ (9,987) Net unrealized gain/(loss) on AFS securities (242) 11,235 AOCI balance, end of period $ (6,565) $ 1,248 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (in thousands) AOCI balance, beginning of period $ (21,127) $ 3,000 Net unrealized gain/(loss) on AFS securities 14,562 (1,752) AOCI balance, end of period $ (6,565) $ 1,248

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	The following table sets forth the detail of other assets included in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 ($ in thousands) Investment in Majority-Owned Affiliate $ 11,510 $ — Deferred tax asset 3,457 3,457 Prepaid expenses 2,172 1,310 Protective advances and other assets 279 — Total other assets $ 17,418 $ 4,767

Equity and Earnings per Share_2

Equity and Earnings per Share ("EPS") (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the calculation of basic and diluted earnings per share for the three months ended June 30, 2023 and 2022: June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Basic Earnings (Loss) per Common Share: Net income (loss) to common stockholders $ (3,688) $ (52,148) Dividends allocated to participating securities (45) — Net income (loss) to common stockholders - basic $ (3,733) $ (52,148) Basic weighted average common shares outstanding 24,686,881 24,458,015 Basic earnings (loss) per common share $ (0.15) $ (2.13) Diluted Earnings (Loss) per Common Share: Net income (loss) to common stockholders - basic $ (3,688) $ (52,148) Dividends allocated to participating securities (45) — Net income (loss) to common stockholders - diluted $ (3,733) $ (52,148) Basic weighted average common shares outstanding 24,686,881 24,458,015 Net effect of dilutive equity awards — — Diluted weighted average common shares outstanding 24,686,881 24,458,015 Diluted earnings (loss) per common share $ (0.15) $ (2.13) The following table sets forth the calculation of basic and diluted earnings per share for the six months ended June 30, 2023 and 2022: June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Basic Earnings (Loss) per Common Share: Net income (loss) to common stockholders $ (3,158) $ (95,694) Dividends allocated to participating securities (81) — Net income (loss) to common stockholders - basic $ (3,239) $ (95,694) Basic weighted average common shares outstanding 24,674,875 24,549,977 Basic earnings (loss) per common share $ (0.13) $ (3.90) Diluted Earnings (Loss) per Common Share: Net income (loss) to common stockholders - basic $ (3,158) $ (95,694) Dividends allocated to participating securities (81) — Net income (loss) to common stockholders - diluted $ (3,239) $ (95,694) Basic weighted average common shares outstanding 24,674,875 24,549,977 Net effect of dilutive equity awards — — Diluted weighted average common shares outstanding 24,674,875 24,549,977 Diluted earnings (loss) per common share $ (0.13) $ (3.90)

Variable Interest Entities - Co

Variable Interest Entities - Consolidated Balance Sheet Related to This Consolidated VIE (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Residential mortgage loans in securitization trusts
ASSETS
Fair value	$ 1,241,994	$ 1,027,442
VIE - Primary Beneficiary
ASSETS
Accrued interest receivable	1,745	1,995
LIABILITIES
Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, amortized cost	448,774	474,070
Less: debt issuance costs capitalized	(411)	(1,145)
Non-recourse securitization obligations, collateralized by residential mortgage loans, amortized cost, net	448,363	472,925
Non-recourse securitization obligations, collateralized by residential mortgage loans - principal balance, subject to fair value adjustment	851,103	611,114
Fair value adjustment	(88,025)	(80,554)
Non-recourse securitization obligations, collateralized by residential mortgage loans - at fair value, net	763,078	530,560
Total non-recourse securitization obligations, collateralized by residential mortgage loans, net	1,211,441	1,003,485
VIE - Primary Beneficiary | Residential mortgage loans in securitization trusts
ASSETS
Residential mortgage loans in securitization trusts - cost	1,440,100	1,193,879
Fair value adjustment	(198,106)	(166,437)
Fair value	$ 1,241,994	$ 1,027,442

Variable Interest Entities - In

Variable Interest Entities - Income and Expense Amounts Related to the Consolidated VIE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Variable Interest Entity [Line Items]
Interest income	$ 23,763	$ 29,702	$ 47,503	$ 56,811
Interest expense, non-recourse liabilities	(17,311)	(13,271)	(34,252)	(23,441)
NET INTEREST INCOME	6,452	16,431	13,251	33,370
VIE - Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	12,819	11,469	25,480	21,887
Interest expense, non-recourse liabilities	(7,518)	(5,679)	(15,165)	(10,262)
NET INTEREST INCOME	5,301	5,790	10,315	11,625
Net unrealized gain (loss) on mortgage loans in securitization trusts - at fair value	(13,982)	(24,578)	7,459	(79,752)
Unrealized gain (loss) on mark-to-market of non-recourse securitization obligation - at fair value	9,205	14,361	(18,563)	32,673
Securitization expenses	0	0	0	(2,019)
Realized losses and operating expenses	(439)	(252)	(1,196)	(448)
Net loss from consolidated VIEs	$ 85	$ (4,679)	$ (1,985)	$ (37,921)

Residential Mortgage Loans - Su

Residential Mortgage Loans - Summary (Details) - Residential mortgage loans $ in Thousands	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
Financing Receivables [Abstract]
Cost	$ 337,756	$ 886,661
Unpaid principal balance	330,403	864,171
Net premium on mortgage loans purchased	7,353	22,489
Change in fair value	(41,227)	(115,678)
Fair value	$ 296,529	$ 770,982
Weighted average interest rate	4.84%	4.80%
Weighted average remaining maturity (years)	30 years	30 years
Financing Receivables, Past Due [Abstract]
Number of mortgage loans 90 or more days past due | loan	7	11
Recorded investment in mortgage loans 90 or more days past due	$ 5,750	$ 7,230
Unpaid principal balance of loans 90 or more days past due	$ 5,600	$ 7,043
Number of mortgage loans in foreclosure | loan	4	2
Recorded investment in mortgage loans in foreclosure	$ 1,798	$ 820
Unpaid principal balance of loans in foreclosure	$ 1,741	$ 849

Commercial Mortgage Loans - Sum

Commercial Mortgage Loans - Summary (Details) - Commercial mortgage loans - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Cost	$ 9,911	$ 9,928
Unpaid principal balance	9,911	9,928
Change in fair value	(322)	(470)
Fair value	$ 9,589	$ 9,458
Weighted average interest rate	9.17%	7.03%
Weighted average remaining maturity (years)	7 years	8 years

Commercial Mortgage Loans - Nar

Commercial Mortgage Loans - Narrative (Details) - Commercial mortgage loans $ in Millions	Jul. 03, 2023 USD ($)	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of mortgage loans 90 or more days past due | loan		1	0
Unpaid principal balance foreclosure		$ 4.3
Subsequent Event
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Proceeds from sales of mortgages	$ 4.6

Investment Securities - Securit

Investment Securities - Securities at Cost (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
AOMT RMBS
Debt Securities, Available-for-sale [Line Items]
Cost of mortgage-backed securities	$ 68,419	$ 69,922
Whole Pool Agency RMBS
Debt Securities, Available-for-sale [Line Items]
Cost of mortgage-backed securities	390,380	1,006,022
CMBS
Debt Securities, Available-for-sale [Line Items]
Cost of mortgage-backed securities	$ 6,419	$ 6,329

Investment Securities - Schedul

Investment Securities - Schedule of Investments in RMBS and CMBS at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	$ (340,701)	$ (52,544)
Mezzanine
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	9,533	1,958
Allocated Capital	8,198	488
Subordinate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	49,938	49,578
Allocated Capital	28,719	24,596
Interest Only/Excess
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	12,438	10,424
Allocated Capital	10,565	8,918
Retained RMBS in VIEs | VIE - Primary Beneficiary
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	0	0
Allocated Capital	(18,346)	(24,586)
Total AOMT RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	71,909	61,960
Allocated Capital	29,136	9,416
Fannie Mae
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	271,714	501,458
Allocated Capital	271,714	501,458
Freddie Mac
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	116,349	491,920
Allocated Capital	116,349	491,920
Whole Pool Total Agency RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	388,063	993,378
Allocated Capital	388,063	993,378
RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	459,972	1,055,338
Securities Sold Under Agreements to Repurchase	(42,773)	(52,544)
Allocated Capital	417,199	1,002,794
Subordinate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	3,083	2,901
Allocated Capital	3,083	2,901
Interest Only/Excess
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	3,770	3,210
Allocated Capital	3,770	3,210
Total AOMT CMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real Estate Securities at Fair Value	6,853	6,111
Allocated Capital	6,853	6,111
Mezzanine
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(1,335)	(1,470)
Subordinate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(21,219)	(24,982)
Interest Only/Excess
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(1,873)	(1,506)
Retained RMBS in VIEs | VIE - Primary Beneficiary
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(18,346)	(24,586)
Retained RMBS in VIEs | VIE - Primary Beneficiary | Eliminations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	134,800	110,500
Total AOMT RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(42,773)	(52,544)
Fannie Mae
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	0	0
Freddie Mac
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	0	0
Whole Pool Total Agency RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	0	0
RMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	(42,773)	(52,544)
Subordinate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	0	0
Interest Only/Excess
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	0	0
Total AOMT CMBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Sold Under Agreements to Repurchase	$ 0	$ 0

Investment Securities - U.S. Tr

Investment Securities - U.S. Treasury Securities (Details) - U.S. Treasury Bills - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Face Value	$ 300,000
Unamortized Discount, net	460
Amortized Cost	299,540
Unrealized Gain (Loss)	41
Fair Value	$ 299,581	$ 0
Net Effective Yield	5.01%

Notes Payable - Narrative (Deta

Notes Payable - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Restricted cash	$ 9,577	$ 10,589	$ 5,800
Collateral Pledged
Debt Instrument [Line Items]
Restricted cash		5,600
Segregated restricted cash account		$ 3,800
Collateral Pledged | Global Investment Bank 3
Debt Instrument [Line Items]
Restricted cash	$ 4,200

Notes Payable - Summary (Detail

Notes Payable - Summary (Details) $ in Thousands					6 Months Ended
	Apr. 26, 2023	Jan. 25, 2023	Dec. 19, 2022	Oct. 04, 2022 USD ($) facility affiliate	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Drawn Amount					$ 233,970		$ 639,870
Securities sold under agreements to repurchase					340,701		52,544
Proceeds from securitization					233,318	$ 520,044
Institutional Investors A and B | Master Repurchase Agreements
Debt Instrument [Line Items]
Number of master repurchase facilities | facility				2
Number of affiliated institutional investors | affiliate				2
Securities sold under agreements to repurchase				$ 168,700
Proceeds from securitization				$ 239,300
Notes Payable | Line of Credit
Debt Instrument [Line Items]
Drawn Amount					233,970		639,870
Borrowing Capacity					929,191
Available Financing					695,221
Notes Payable | Line of Credit | Multinational Bank 1
Debt Instrument [Line Items]
Drawn Amount					154,779		352,038
Borrowing Capacity					600,000
Available Financing					$ 445,221
Notes Payable | Line of Credit | Multinational Bank 1 | SOFR
Debt Instrument [Line Items]
Interest Rate Pricing Spread	2.10%				2.15%
Renewal period		6 months
Notes Payable | Line of Credit | Multinational Bank 1 | Secured Overnight Financing Rate (SOFR) Index Spread
Debt Instrument [Line Items]
Interest Rate Pricing Spread	2.15%
Notes Payable | Line of Credit | Global Investment Bank 2
Debt Instrument [Line Items]
Drawn Amount					$ 0		0
Borrowing Capacity					250,000
Available Financing					$ 250,000
Notes Payable | Line of Credit | Global Investment Bank 2 | SOFR | Minimum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					2.20%
Notes Payable | Line of Credit | Global Investment Bank 2 | SOFR | Maximum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					3.45%
Notes Payable | Line of Credit | Global Investment Bank 3
Debt Instrument [Line Items]
Drawn Amount					$ 79,191		119,137
Borrowing Capacity					79,191
Available Financing					$ 0
Notes Payable | Line of Credit | Global Investment Bank 3 | SOFR
Debt Instrument [Line Items]
Interest Rate Pricing Spread			2.80%
Variable rate increase			0.50%
Notes Payable | Line of Credit | Global Investment Bank 3 | SOFR | Minimum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					2.80%
Notes Payable | Line of Credit | Global Investment Bank 3 | SOFR | Maximum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					4%
Notes Payable | Line of Credit | Global Investment Bank 3 | Secured Overnight Financing Rate (SOFR) Index Spread
Debt Instrument [Line Items]
Interest Rate Pricing Spread			0.20%
Notes Payable | Line of Credit | Institutional Investors A and B
Debt Instrument [Line Items]
Drawn Amount							168,695
Notes Payable | Line of Credit | Institutional Investors A and B | SOFR
Debt Instrument [Line Items]
Interest Rate Pricing Spread					3.50%
Notes Payable | Line of Credit | Regional Bank 1
Debt Instrument [Line Items]
Drawn Amount							$ 0
Notes Payable | Line of Credit | Regional Bank 1 | SOFR | Minimum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					2.50%
Notes Payable | Line of Credit | Regional Bank 1 | SOFR | Maximum
Debt Instrument [Line Items]
Interest Rate Pricing Spread					3.50%

Due to Broker (Details)

Due to Broker (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Broker-Dealer [Abstract]
Due to broker	$ 390,380	$ 1,006,022

Securities Sold Under Agreeme_3

Securities Sold Under Agreements to Repurchase - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents Items [Line Items]
Margin cash collateral	$ 5	$ 3.9

Securities Sold Under Agreeme_4

Securities Sold Under Agreements to Repurchase - Summary (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 340,701	$ 52,544
Weighted Average Interest Rate	5.38%	6.07%
Weighted Average Remaining Maturity (Days)	14 days	13 days
U.S. Treasury securities
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 297,928
Weighted Average Interest Rate	5.15%
Weighted Average Remaining Maturity (Days)	14 days
RMBS
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 42,773	$ 52,544
Weighted Average Interest Rate	6.95%	6.07%
Weighted Average Remaining Maturity (Days)	14 days	13 days

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Derivative [Line Items]
Restricted cash	$ 9,577,000	$ 10,589,000	$ 5,800,000
Interest rate futures
Derivative [Line Items]
Restricted cash	400,000	1,100,000
TBAs
Derivative [Line Items]
Restricted cash	$ 0	$ 0

Derivative Financial Instrume_4

Derivative Financial Instruments - Derivative Instruments Presented on the Balance Sheet and Notional Amounts (Details) $ in Thousands	Jun. 30, 2023 USD ($) contract	Dec. 31, 2022 USD ($) contract
Derivative [Line Items]
Assets	$ 3,294	$ 14,756
Derivatives Not Designated as Hedging Instruments | Interest rate futures
Derivative [Line Items]
Number of Contracts | contract	1,462	4,928
Assets	$ 1,055	$ 2,211
Liabilities	0	0
Derivatives Not Designated as Hedging Instruments | TBAs
Derivative [Line Items]
Assets	2,239	12,545
Liabilities	0	0
Derivatives Not Designated as Hedging Instruments | Long Exposure | Interest rate futures
Derivative [Line Items]
Notional Amounts	0	0
Derivatives Not Designated as Hedging Instruments | Long Exposure | TBAs
Derivative [Line Items]
Notional Amounts	0	0
Derivatives Not Designated as Hedging Instruments | Short Exposure | Interest rate futures
Derivative [Line Items]
Notional Amounts	146,200	492,800
Derivatives Not Designated as Hedging Instruments | Short Exposure | TBAs
Derivative [Line Items]
Notional Amounts	$ 402,400	$ 1,041,700

Derivative Financial Instrume_5

Derivative Financial Instruments - Gains and Losses Arising from Derivative Instruments (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest rate futures
Derivative [Line Items]
Net Realized Gains (Losses) on Derivative Instruments	$ (2,604)	$ 29,429	$ 5,770	$ 49,113
Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments	8,432	(13,413)	(2,052)	1,322
TBAs
Derivative [Line Items]
Net Realized Gains (Losses) on Derivative Instruments	(2,172)	(964)	(2,522)	13,179
Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments	$ 3,746	$ (9,577)	$ (10,306)	$ (10,686)

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	$ 3,294	$ 14,756
Total assets, at fair value	2,317,812	2,884,087
Liabilities, at fair value
Non-recourse securitization obligation, collateralized by residential mortgage loans	763,078	530,560
Total liabilities, at fair value	763,078	530,560
Non-Agency RMBS
Assets, at fair value
Fair Value	71,909	61,960
Whole Pool Agency RMBS
Assets, at fair value
Fair Value	388,063	993,378
AOMT CMBS
Assets, at fair value
Fair Value	6,853	6,111
U.S. Treasury Bills
Assets, at fair value
Fair Value	299,581	0
Future Contracts
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	1,055	2,211
TBAs
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	2,239	12,545
Residential mortgage loans
Assets, at fair value
Assets, at fair value	296,529	770,982
Residential mortgage loans in securitization trusts
Assets, at fair value
Assets, at fair value	1,241,994	1,027,442
Commercial mortgage loans
Assets, at fair value
Assets, at fair value	9,589	9,458
Level 1
Assets, at fair value
Total assets, at fair value	302,875	14,756
Liabilities, at fair value
Non-recourse securitization obligation, collateralized by residential mortgage loans	0	0
Total liabilities, at fair value	0	0
Level 1 | Non-Agency RMBS
Assets, at fair value
Fair Value	0	0
Level 1 | Whole Pool Agency RMBS
Assets, at fair value
Fair Value	0	0
Level 1 | AOMT CMBS
Assets, at fair value
Fair Value	0	0
Level 1 | U.S. Treasury Bills
Assets, at fair value
Fair Value	299,581
Level 1 | Future Contracts
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	1,055	2,211
Level 1 | TBAs
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	2,239	12,545
Level 1 | Residential mortgage loans
Assets, at fair value
Assets, at fair value	0	0
Level 1 | Residential mortgage loans in securitization trusts
Assets, at fair value
Assets, at fair value	0	0
Level 1 | Commercial mortgage loans
Assets, at fair value
Assets, at fair value	0	0
Level 2
Assets, at fair value
Total assets, at fair value	2,003,490	2,853,379
Liabilities, at fair value
Non-recourse securitization obligation, collateralized by residential mortgage loans	763,078	530,560
Total liabilities, at fair value	763,078	530,560
Level 2 | Non-Agency RMBS
Assets, at fair value
Fair Value	71,909	61,960
Level 2 | Whole Pool Agency RMBS
Assets, at fair value
Fair Value	388,063	993,378
Level 2 | AOMT CMBS
Assets, at fair value
Fair Value	6,853	6,111
Level 2 | U.S. Treasury Bills
Assets, at fair value
Fair Value	0
Level 2 | Future Contracts
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	0	0
Level 2 | TBAs
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	0	0
Level 2 | Residential mortgage loans
Assets, at fair value
Assets, at fair value	290,240	763,786
Level 2 | Residential mortgage loans in securitization trusts
Assets, at fair value
Assets, at fair value	1,236,836	1,018,686
Level 2 | Commercial mortgage loans
Assets, at fair value
Assets, at fair value	9,589	9,458
Level 3
Assets, at fair value
Total assets, at fair value	11,447	15,952
Liabilities, at fair value
Non-recourse securitization obligation, collateralized by residential mortgage loans	0	0
Total liabilities, at fair value	0	0
Level 3 | Non-Agency RMBS
Assets, at fair value
Fair Value	0	0
Level 3 | Whole Pool Agency RMBS
Assets, at fair value
Fair Value	0	0
Level 3 | AOMT CMBS
Assets, at fair value
Fair Value	0	0
Level 3 | U.S. Treasury Bills
Assets, at fair value
Fair Value	0
Level 3 | Future Contracts
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	0	0
Level 3 | TBAs
Assets, at fair value
Unrealized appreciation/depreciation on futures contracts and TBAs	0	0
Level 3 | Residential mortgage loans
Assets, at fair value
Assets, at fair value	6,289	7,196
Level 3 | Residential mortgage loans in securitization trusts
Assets, at fair value
Assets, at fair value	5,158	8,756
Level 3 | Commercial mortgage loans
Assets, at fair value
Assets, at fair value	$ 0	$ 0

Fair Value Measurements - Signi

Fair Value Measurements - Significant Level 3 Inputs (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Residential mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 296,529	$ 770,982
Level 3 | Residential mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 6,289	$ 7,196
Level 3 | Residential mortgage loans | Minimum | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0423	0.0492
Level 3 | Residential mortgage loans | Minimum | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0717	0.0456
Level 3 | Residential mortgage loans | Minimum | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0521	0.25
Level 3 | Residential mortgage loans | Minimum | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	1 year 9 months 3 days	7 months 13 days
Level 3 | Residential mortgage loans | Maximum | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.1154	0.1499
Level 3 | Residential mortgage loans | Maximum | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.3215	0.2436
Level 3 | Residential mortgage loans | Maximum | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.3040	0.1254
Level 3 | Residential mortgage loans | Maximum | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	3 years 4 months 20 days	3 years 5 months 4 days
Level 3 | Residential mortgage loans | Average | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0815	0.0939
Level 3 | Residential mortgage loans | Average | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.1900	0.1143
Level 3 | Residential mortgage loans | Average | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.1260	0.0784
Level 3 | Residential mortgage loans | Average | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	2 years 3 months 29 days	2 years 9 months
Level 3 | Residential mortgage loans in securitization trusts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 5,158	$ 8,756
Level 3 | Residential mortgage loans in securitization trusts | Minimum | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0306	0.0324
Level 3 | Residential mortgage loans in securitization trusts | Minimum | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0004	0.0742
Level 3 | Residential mortgage loans in securitization trusts | Minimum | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0	0
Level 3 | Residential mortgage loans in securitization trusts | Minimum | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	1 year 3 months 18 days	1 year 5 months 1 day
Level 3 | Residential mortgage loans in securitization trusts | Maximum | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.1260	0.1455
Level 3 | Residential mortgage loans in securitization trusts | Maximum | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.3803	0.3578
Level 3 | Residential mortgage loans in securitization trusts | Maximum | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.1000	0.1000
Level 3 | Residential mortgage loans in securitization trusts | Maximum | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	4 years 4 months 13 days	3 years 8 months 19 days
Level 3 | Residential mortgage loans in securitization trusts | Average | Prepayment rate (annual CPR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0772	0.0784
Level 3 | Residential mortgage loans in securitization trusts | Average | Default rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.2158	0.1907
Level 3 | Residential mortgage loans in securitization trusts | Average | Loss severity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Input Values	0.0933	0.0923
Level 3 | Residential mortgage loans in securitization trusts | Average | Expected remaining life
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected remaining life	2 years 2 months 19 days	2 years 3 months 25 days

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost of investment	$ 11.5
Fair value of investment	11
Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost of non-recourse securitization obligations	1,400	$ 1,100
Fair value of non-recourse securitization obligations	1,100	914.3
Difference between amortized cost and fair value of non-recourse securitization obligations	274.7	170.9
Residential mortgage loans in securitization trusts | Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Difference between amortized cost and fair value of non-recourse securitization obligations	$ 119.2	$ 90.3

Related Party Transactions - Fi

Related Party Transactions - Financial Information on Whole Loans Purchased from Affiliates (Details) - Affiliates - Residential mortgage loans - Loans Purchased from Affiliates $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
Related Party Transaction [Line Items]
Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Ended | $	$ 11,515	$ 567,324
Number of Loans Purchased from Affiliates during the Year-to-Date/Year Ended	38	1,141
Number of Loans Purchased from Affiliates, Owned and Held as of the Periods Ended	563	845

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - Management Agreement - Affiliates	Jun. 21, 2021 USD ($) calendarQuarter
Related Party Transaction [Line Items]
Fixed management fee per annum (as a percent)	1.50%
Minimum incentive fee | $	$ 0
Incentive fee (as a percent)	15%
Period for determining incentive fee by distributed earnings	12 months
Period for determining incentive fee by equity	12 months
Incentive fee per annum (as a percent)	8%
Incentive fee, number of quarters | calendarQuarter	3
Period for determining incentive fee	12 months

Commitment and Contingencies (D

Commitment and Contingencies (Details) - Global Investment Bank 3 $ in Millions	Jun. 30, 2023 USD ($)
Loss Contingencies [Line Items]
Maximum eligibility reduction percentage	100%
Maximum loan release obligation	$ 1.1

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income /(Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 244,378	$ 421,437	$ 236,479	$ 491,390
Balance at end of period	232,676	367,284	232,676	367,284
Net unrealized gain/(loss) on AFS securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(6,323)	(9,987)	(21,127)	3,000
Net unrealized gain/(loss) on AFS securities	(242)	11,235	14,562	(1,752)
Balance at end of period	$ (6,565)	$ 1,248	$ (6,565)	$ 1,248

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Investment in Majority-Owned Affiliate	$ 11,510		$ 0
Deferred tax asset	3,457		3,457
Prepaid expenses	2,172		1,310
Protective advances and other assets	279		0
Total other assets	$ 17,418		$ 4,767
MOA | AOMT 2023-1
Noncontrolling Interest [Line Items]
Investment percentage		41.21%

Equity and Earnings per Share_3

Equity and Earnings per Share ("EPS") - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	165,473	362,536	165,473	362,536
Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	49,370		49,370

Equity and Earnings per Share_4

Equity and Earnings per Share ("EPS") - Calculation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic Earnings (Loss) per Common Share:
Net income (loss) to common stockholders - basic	$ (3,688)	$ (52,148)	$ (3,158)	$ (95,694)
Dividends allocated to participating securities	(45)	0	(81)	0
Net income (loss) to common stockholders - basic	$ (3,733)	$ (52,148)	$ (3,239)	$ (95,694)
Basic weighted average common shares outstanding (shares)	24,686,881	24,458,015	24,674,875	24,549,977
Basic earnings (loss) per common share (USD per share)	$ (0.15)	$ (2.13)	$ (0.13)	$ (3.90)
Diluted Earnings (Loss) per Common Share:
Net income (loss) to common stockholders - basic	$ (3,688)	$ (52,148)	$ (3,158)	$ (95,694)
Dividends allocated to participating securities	(45)	0	(81)	0
Net income (loss) to common stockholders - diluted	$ (3,733)	$ (52,148)	$ (3,239)	$ (95,694)
Basic weighted average common shares outstanding (shares)	24,686,881	24,458,015	24,674,875	24,549,977
Net effect of dilutive equity awards (shares)	0	0	0	0
Diluted weighted average common shares outstanding (shares)	24,686,881	24,458,015	24,674,875	24,549,977
Diluted earnings (loss) per common share (USD per share)	$ (0.15)	$ (2.13)	$ (0.13)	$ (3.90)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands					6 Months Ended
	Aug. 08, 2023	Jul. 25, 2023	Jul. 03, 2023	Apr. 26, 2023	Jun. 30, 2023	Dec. 31, 2022
Line of Credit | Multinational Bank 1 | Notes Payable | SOFR
Subsequent Event [Line Items]
Interest rate pricing spread				2.10%	2.15%
Commercial mortgage loans
Subsequent Event [Line Items]
Financing receivable, principal balance					$ 9,589	$ 9,458
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of common stock (USD per share)	$ 0.32
Subsequent Event | Line of Credit | Multinational Bank 1 | Notes Payable | SOFR
Subsequent Event [Line Items]
Interest rate pricing spread		2.10%
Subsequent Event | Commercial mortgage loans
Subsequent Event [Line Items]
Financing receivable, principal balance			$ 4,300
Proceeds from sales of mortgages			$ 4,600