Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32136 | |
Entity Registrant Name | Arbor Realty Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-0057959 | |
Entity Address, Address Line One | 333 Earle Ovington Boulevard | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Uniondale | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11553 | |
City Area Code | 516 | |
Local Phone Number | 506-4200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,131,077 | |
Entity Central Index Key | 0001253986 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABR | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 8.25% Series A Cumulative Redeemable, par value $0.01 per share | |
Trading Symbol | ABR-PA | |
Security Exchange Name | NYSE | |
Series B Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 7.75% Series B Cumulative Redeemable, par value $0.01 per share | |
Trading Symbol | ABR-PB | |
Security Exchange Name | NYSE | |
Series C Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 8.50% Series C Cumulative Redeemable, par value $0.01 per share | |
Trading Symbol | ABR-PC | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 192,204 | $ 299,687 |
Restricted cash | 110,263 | 210,875 |
Loans and investments, net (allowance for credit losses: $146,745 and $71,069, respectively) | 4,910,872 | 4,189,960 |
Loans held-for-sale, net | 631,138 | 861,360 |
Capitalized mortgage servicing rights, net | 335,235 | 286,420 |
Securities held-to-maturity, net (allowance for credit losses: $1,628 and $0, respectively) | 118,260 | 88,699 |
Investments in equity affiliates | 82,322 | 41,800 |
Real estate owned, net | 2,894 | 13,220 |
Due from related party | 23,814 | 10,651 |
Goodwill and other intangible assets | 106,716 | 110,700 |
Other assets | 175,500 | 125,788 |
Total assets | 6,689,218 | 6,239,160 |
Liabilities and Equity: | ||
Credit facilities and repurchase agreements | 1,449,940 | 1,678,288 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Debt fund | 68,629 | |
Senior unsecured notes | 662,289 | 319,799 |
Convertible senior unsecured notes, net | 266,706 | 284,152 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 141,470 | 140,949 |
Due to related party | 802 | 13,100 |
Due to borrowers | 76,304 | 79,148 |
Allowance for loss-sharing obligations | 71,160 | 34,648 |
Other liabilities | 181,279 | 134,299 |
Total liabilities | 5,365,982 | 4,883,133 |
Commitments and contingencies (Note 14) | ||
Arbor Realty Trust, Inc. stockholders' equity: | ||
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized; special voting preferred shares; 17,632,371 and 20,369,265 shares issued and outstanding, respectively; 8.25% Series A, $38,788 aggregate liquidation preference; 1,551,500 shares issued and outstanding; 7.75% Series B, $31,500 aggregate liquidation preference; 1,260,000 shares issued and outstanding; 8.50% Series C, $22,500 aggregate liquidation preference; 900,000 shares issued and outstanding | 89,472 | 89,501 |
Common stock, $0.01 par value: 500,000,000 shares authorized; 115,930,351 and 109,706,214 shares issued and outstanding, respectively | 1,159 | 1,097 |
Additional paid-in capital | 1,222,945 | 1,154,932 |
Accumulated deficit | (120,539) | (60,920) |
Total Arbor Realty Trust, Inc. stockholders' equity | 1,193,037 | 1,184,610 |
Noncontrolling interest | 130,199 | 171,417 |
Total equity | 1,323,236 | 1,356,027 |
Total liabilities and equity | $ 6,689,218 | $ 6,239,160 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loans and investments, net allowance for credit losses | $ 146,745 | $ 71,069 |
Securities held-to-maturity, net allowance for credit losses | $ 1,628 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 115,930,351 | 109,706,214 |
Common stock, shares outstanding (in shares) | 115,930,351 | 109,706,214 |
Assets | $ 6,689,218 | $ 6,239,160 |
Liabilities | 5,365,982 | 4,883,133 |
Consolidated variable interest entities | ||
Assets | 3,112,755 | 2,784,756 |
Liabilities | $ 2,518,745 | $ 2,209,599 |
Special voting preferred shares | ||
Preferred stock, shares issued (in shares) | 17,632,371 | 20,369,265 |
Preferred stock, shares outstanding (in shares) | 17,632,371 | 20,369,265 |
8.25% Series A preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% |
Preferred stock, aggregate liquidation preference | $ 38,788 | $ 38,788 |
Preferred stock, shares issued (in shares) | 1,551,500 | 1,551,500 |
Preferred stock, shares outstanding (in shares) | 1,551,500 | 1,551,500 |
7.75% Series B preferred stock | ||
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% |
Preferred stock, aggregate liquidation preference | $ 31,500 | $ 31,500 |
Preferred stock, shares issued (in shares) | 1,260,000 | 1,260,000 |
Preferred stock, shares outstanding (in shares) | 1,260,000 | 1,260,000 |
8.50% Series C preferred stock | ||
Preferred stock, dividend rate (as a percent) | 8.50% | 8.50% |
Preferred stock, aggregate liquidation preference | $ 22,500 | $ 22,500 |
Preferred stock, shares issued (in shares) | 900,000 | 900,000 |
Preferred stock, shares outstanding (in shares) | 900,000 | 900,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME | ||||
Interest income | $ 81,701 | $ 80,509 | $ 253,307 | $ 233,957 |
Interest expense | 37,888 | 48,064 | 129,172 | 138,213 |
Net interest income | 43,813 | 32,445 | 124,135 | 95,744 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 19,895 | 21,298 | 60,566 | 51,897 |
Mortgage servicing rights | 42,357 | 29,911 | 96,708 | 62,852 |
Servicing revenue, net | 13,348 | 13,790 | 40,156 | 39,954 |
Property operating income | 1,033 | 2,237 | 3,976 | 8,187 |
Loss on derivative instruments, net | (753) | (5,003) | (58,852) | (6,726) |
Other income, net | 1,050 | 325 | 3,404 | 1,314 |
Total other revenue | 76,930 | 62,558 | 145,958 | 157,478 |
Other expenses: | ||||
Employee compensation and benefits | 32,962 | 32,861 | 101,652 | 93,647 |
Selling and administrative | 9,356 | 10,882 | 29,013 | 31,122 |
Property operating expenses | 1,300 | 2,563 | 4,778 | 7,649 |
Depreciation and amortization | 1,922 | 1,841 | 5,830 | 5,663 |
Impairment loss on real estate owned | 1,000 | |||
Provision for loss sharing (net of recoveries) | (2,227) | 735 | 21,706 | 1,557 |
Provision for credit losses (net of recoveries) | (7,586) | 59,510 | ||
Total other expenses | 35,727 | 48,882 | 222,489 | 140,638 |
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 85,016 | 46,121 | 47,604 | 112,584 |
Loss on extinguishment of debt | (3,546) | (128) | ||
Loss on sale of real estate | (1,868) | (1,868) | ||
Income from equity affiliates | 32,358 | 3,718 | 56,758 | 9,133 |
Provision for income taxes | (17,785) | (6,623) | (15,493) | (10,963) |
Net income | 97,721 | 43,216 | 83,455 | 110,626 |
Preferred stock dividends | 1,888 | 1,888 | 5,665 | 5,665 |
Net income attributable to noncontrolling interest | 13,836 | 7,363 | 11,012 | 19,429 |
Net income attributable to common stockholders | $ 81,997 | $ 33,965 | $ 66,778 | $ 85,532 |
Basic earnings per common share (in dollars per share) | $ 0.72 | $ 0.36 | $ 0.60 | $ 0.95 |
Diluted earnings per common share (in dollars per share) | $ 0.72 | $ 0.35 | $ 0.59 | $ 0.93 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 113,766,446 | 94,486,839 | 111,775,436 | 89,899,074 |
Diluted (in shares) | 133,997,087 | 117,468,044 | 132,401,315 | 113,033,968 |
Dividends declared per common share (in dollars per share) | $ 0.31 | $ 0.29 | $ 0.91 | $ 0.84 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Preferred StockBalance as adjusted for the adoption of ASU 2016-13 | Preferred Stock | Common StockBalance as adjusted for the adoption of ASU 2016-13 | Common Stock | Additional Paid-in CapitalBalance as adjusted for the adoption of ASU 2016-13 | Additional Paid-in Capital | Accumulated DeficitCumulative-effect adjustment | Accumulated DeficitBalance as adjusted for the adoption of ASU 2016-13 | Accumulated Deficit | Total Arbor Realty Trust, Inc. Stockholders' EquityCumulative-effect adjustment | Total Arbor Realty Trust, Inc. Stockholders' EquityBalance as adjusted for the adoption of ASU 2016-13 | Total Arbor Realty Trust, Inc. Stockholders' Equity | Noncontrolling InterestCumulative-effect adjustment | Noncontrolling InterestBalance as adjusted for the adoption of ASU 2016-13 | Noncontrolling Interest | Cumulative-effect adjustment | Balance as adjusted for the adoption of ASU 2016-13 | Total |
Balance at Dec. 31, 2018 | $ 89,502 | $ 840 | $ 879,029 | $ (74,133) | $ 895,238 | $ 170,328 | $ 1,065,566 | |||||||||||
Balance (in shares) at Dec. 31, 2018 | 24,365,084 | 83,987,707 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Issuance of common stock | $ 93 | 117,786 | 117,879 | 117,879 | ||||||||||||||
Issuance of common stock (in shares) | 9,387,000 | |||||||||||||||||
Repurchase of common stock | $ (9) | (11,565) | (11,574) | (11,574) | ||||||||||||||
Repurchase of common stock (in shares) | (920,000) | |||||||||||||||||
Issuance of common stock from convertible debt | $ 2 | 2,505 | 2,507 | 2,507 | ||||||||||||||
Issuance of common stock from convertible debt (in shares) | 214,029 | |||||||||||||||||
Extinguishment of convertible senior unsecured notes | (1,337) | (1,337) | (1,337) | |||||||||||||||
Stock-based compensation, net | $ 10 | 3,930 | 3,940 | 3,940 | ||||||||||||||
Stock-based compensation, net (in shares) | 963,865 | |||||||||||||||||
Forfeiture of unvested restricted stock (in shares) | (18,120) | |||||||||||||||||
Issuance of common stock from special dividend | $ 9 | 10,070 | 10,079 | 10,079 | ||||||||||||||
Issuance of common stock from special dividend (in shares) | 901,432 | |||||||||||||||||
Issuance of OP Units and special voting preferred stock from special dividend | $ 2 | 2 | 2,476 | 2,478 | ||||||||||||||
Issuance of OP Units and special voting preferred stock from special dividend (in shares) | 221,666 | |||||||||||||||||
Distributions - common stock | (77,178) | (77,178) | (77,178) | |||||||||||||||
Distributions - preferred stock | (5,676) | (5,676) | (5,676) | |||||||||||||||
Distributions - noncontrolling interest | (17,242) | (17,242) | ||||||||||||||||
Redemption of OP Units | $ (3) | $ 3 | 2,937 | 2,937 | (4,609) | (1,672) | ||||||||||||
Redemption of OP Units (in shares) | (391,156) | 258,677 | ||||||||||||||||
Net income | 91,197 | 91,197 | 19,429 | 110,626 | ||||||||||||||
Balance at Sep. 30, 2019 | $ 89,501 | $ 948 | 1,003,355 | (65,790) | 1,028,014 | 170,382 | 1,198,396 | |||||||||||
Balance (in shares) at Sep. 30, 2019 | 24,195,594 | 94,774,590 | ||||||||||||||||
Balance at Jun. 30, 2019 | $ 89,501 | $ 942 | 998,897 | (72,321) | 1,017,019 | 168,959 | 1,185,978 | |||||||||||
Balance (in shares) at Jun. 30, 2019 | 24,195,594 | 94,225,567 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Issuance of common stock | $ 2 | 2,292 | 2,294 | 2,294 | ||||||||||||||
Issuance of common stock (in shares) | 187,000 | |||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 3,563 | |||||||||||||||||
Stock-based compensation, net | $ 4 | 2,166 | 2,170 | 2,170 | ||||||||||||||
Stock-based compensation, net (in shares) | 358,460 | |||||||||||||||||
Distributions - common stock | (27,431) | (27,431) | (27,431) | |||||||||||||||
Distributions - preferred stock | (1,891) | (1,891) | (1,891) | |||||||||||||||
Distributions - noncontrolling interest | (5,940) | (5,940) | ||||||||||||||||
Net income | 35,853 | 35,853 | 7,363 | 43,216 | ||||||||||||||
Balance at Sep. 30, 2019 | $ 89,501 | $ 948 | 1,003,355 | (65,790) | 1,028,014 | 170,382 | 1,198,396 | |||||||||||
Balance (in shares) at Sep. 30, 2019 | 24,195,594 | 94,774,590 | ||||||||||||||||
Balance at Dec. 31, 2019 | $ 89,501 | $ 89,501 | $ 1,097 | $ 1,097 | $ 1,154,932 | 1,154,932 | $ (24,106) | $ (85,026) | (60,920) | $ (24,106) | $ 1,160,504 | 1,184,610 | $ (4,501) | $ 166,916 | 171,417 | $ (28,607) | $ 1,327,420 | 1,356,027 |
Balance (in shares) at Dec. 31, 2019 | 24,195,594 | 24,195,594 | 109,706,214 | 109,706,214 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Issuance of common stock | $ 69 | 78,481 | 78,550 | 78,550 | ||||||||||||||
Issuance of common stock (in shares) | 6,887,274 | |||||||||||||||||
Repurchase of common stock | $ (16) | (12,745) | (12,761) | (12,761) | ||||||||||||||
Repurchase of common stock (in shares) | (1,625,777) | |||||||||||||||||
Issuance of common stock from convertible debt | $ 3 | 90 | 93 | 93 | ||||||||||||||
Issuance of common stock from convertible debt (in shares) | 363,013 | |||||||||||||||||
Stock-based compensation, net | $ 6 | 3,786 | 3,792 | 3,792 | ||||||||||||||
Stock-based compensation, net (in shares) | 599,627 | |||||||||||||||||
Distributions - common stock | (102,283) | (102,283) | (102,283) | |||||||||||||||
Distributions - preferred stock | (5,673) | (5,673) | (5,673) | |||||||||||||||
Distributions - noncontrolling interest | (18,102) | (18,102) | ||||||||||||||||
Redemption of OP Units | $ (29) | (1,599) | (1,628) | (29,627) | (31,255) | |||||||||||||
Redemption of OP Units (in shares) | (2,851,723) | |||||||||||||||||
Net income | 72,443 | 72,443 | 11,012 | 83,455 | ||||||||||||||
Balance at Sep. 30, 2020 | $ 89,472 | $ 1,159 | 1,222,945 | (120,539) | 1,193,037 | 130,199 | (28,607) | 1,323,236 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 21,343,871 | 115,930,351 | ||||||||||||||||
Balance at Jun. 30, 2020 | $ 89,500 | $ 1,122 | 1,182,449 | (167,165) | 1,105,906 | 151,870 | 1,257,776 | |||||||||||
Balance (in shares) at Jun. 30, 2020 | 24,080,765 | 112,211,461 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Issuance of common stock | $ 36 | 40,506 | 40,542 | 40,542 | ||||||||||||||
Issuance of common stock (in shares) | 3,579,266 | |||||||||||||||||
Stock-based compensation, net | $ 1 | (10) | (9) | (9) | ||||||||||||||
Stock-based compensation, net (in shares) | 139,624 | |||||||||||||||||
Distributions - common stock | (35,371) | (35,371) | (35,371) | |||||||||||||||
Distributions - preferred stock | (1,888) | (1,888) | (1,888) | |||||||||||||||
Distributions - noncontrolling interest | (5,880) | (5,880) | ||||||||||||||||
Redemption of OP Units | $ (28) | (28) | (29,627) | (29,655) | ||||||||||||||
Redemption of OP Units (in shares) | (2,736,894) | |||||||||||||||||
Net income | 83,885 | 83,885 | 13,836 | 97,721 | ||||||||||||||
Balance at Sep. 30, 2020 | $ 89,472 | $ 1,159 | $ 1,222,945 | $ (120,539) | $ 1,193,037 | $ 130,199 | $ (28,607) | $ 1,323,236 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 21,343,871 | 115,930,351 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating activities: | ||||||
Net income | $ 97,721 | $ 43,216 | $ 83,455 | $ 110,626 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 1,922 | 1,841 | 5,830 | 5,663 | ||
Stock-based compensation | 7,286 | 7,574 | ||||
Amortization and accretion of interest and fees, net | 3,172 | 3,113 | ||||
Amortization of capitalized mortgage servicing rights | 12,416 | 12,126 | 36,129 | 36,731 | ||
Originations of loans held-for-sale | (3,940,322) | (3,358,750) | ||||
Proceeds from sales of loans held-for-sale, net of gain on sale | 4,169,411 | 3,301,918 | ||||
Payoffs and paydowns of loans held-for-sale | 117 | 75 | ||||
Loss on sale of real estate | 1,868 | 1,868 | ||||
Mortgage servicing rights | (42,357) | (29,911) | (96,708) | (62,852) | ||
Write-off of capitalized mortgage servicing rights from payoffs | 12,610 | 15,827 | ||||
Impairment loss on real estate owned | 1,000 | |||||
Provision for loss sharing (net of recoveries) | (2,227) | 735 | 21,706 | 1,557 | ||
Provision for credit losses (net of recoveries) | (7,586) | 59,510 | ||||
Net recoveries (charge-offs) for loss sharing obligations | 399 | (330) | ||||
Deferred tax benefit | (3,900) | (2,200) | (5,172) | (1,026) | ||
Income from equity affiliates | (32,358) | (3,718) | (56,758) | (9,133) | ||
Loss on extinguishment of debt | 3,546 | 128 | ||||
Changes in operating assets and liabilities | (2,378) | 5,030 | ||||
Net cash provided by operating activities | 303,701 | 57,151 | ||||
Investing Activities: | ||||||
Loans and investments funded, originated and purchased, net | (1,425,051) | (1,895,092) | ||||
Payoffs and paydowns of loans and investments | 674,929 | 1,243,791 | ||||
Deferred fees | 10,338 | 16,806 | ||||
Investments in real estate, net | (131) | (207) | ||||
Contributions to equity affiliates | (98) | (9,140) | ||||
Proceeds from sale of real estate, net | 7,499 | |||||
Purchase of securities held-to-maturity, net | (37,927) | (20,000) | ||||
Payoffs and paydowns of securities held-to-maturity | 8,914 | 4,590 | ||||
Due to borrowers and reserves | (50,168) | (23,276) | ||||
Net cash used in investing activities | (811,695) | (682,528) | ||||
Financing activities: | ||||||
Proceeds from repurchase agreements and credit facilities | 7,565,743 | 6,866,169 | ||||
Paydowns and payoffs of repurchase agreements and credit facilities | (7,792,471) | (6,616,055) | ||||
Proceeds from issuance of collateralized loan obligations | 668,000 | 533,000 | ||||
Payoffs and paydowns of collateralized loan obligations | (282,874) | (250,250) | ||||
Payoffs of debt fund | (70,000) | |||||
Proceeds from issuance of common stock | 78,550 | 117,879 | ||||
Settlements of convertible senior unsecured notes | (22,145) | (3,149) | ||||
Proceeds from issuance of senior unsecured notes | 345,750 | 90,000 | ||||
Redemption of OP Units | (31,255) | (1,673) | ||||
Payments of withholding taxes on net settlement of vested stock | (3,494) | (3,634) | ||||
Repurchase of common stock | (12,761) | (11,574) | ||||
Distributions paid on common stock | (102,283) | (77,178) | ||||
Distributions paid on noncontrolling interest | (18,102) | (17,242) | ||||
Distributions paid on preferred stock | (5,673) | (5,676) | ||||
Payment of deferred financing costs | (17,086) | (10,578) | ||||
Net cash provided by financing activities | 299,899 | 610,039 | ||||
Net decrease in cash, cash equivalents and restricted cash | (208,095) | (15,338) | ||||
Cash, cash equivalents and restricted cash at beginning of period | $ 325,331 | 510,562 | 340,669 | $ 340,669 | ||
Cash, cash equivalents and restricted cash at end of period | 302,467 | 510,562 | 325,331 | 302,467 | 325,331 | 510,562 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||||
Cash and cash equivalents at beginning of period | 135,285 | 299,687 | 160,063 | 160,063 | ||
Restricted cash at beginning of period | 190,046 | 210,875 | 180,606 | 180,606 | ||
Cash, cash equivalents and restricted cash at beginning of period | 325,331 | 510,562 | 340,669 | 340,669 | ||
Cash and cash equivalents at end of period | 192,204 | 299,687 | 135,285 | 192,204 | 135,285 | 299,687 |
Restricted cash at end of period | 110,263 | 210,875 | 190,046 | 110,263 | 190,046 | 210,875 |
Cash, cash equivalents and restricted cash at end of period | 302,467 | 510,562 | 325,331 | 302,467 | 325,331 | 510,562 |
Supplemental cash flow information: | ||||||
Cash used to pay interest | 108,573 | 121,972 | ||||
Cash used to pay taxes | 22,810 | 15,686 | ||||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Cumulative-effect adjustment (Note 2) | (1,323,236) | (1,356,027) | (1,198,396) | (1,323,236) | (1,198,396) | (1,356,027) |
Issuance of common stock from convertible debt | 93 | 2,507 | ||||
Settlements of convertible senior unsecured notes | 4,778 | 1,337 | ||||
Fair value of conversion feature of convertible senior unsecured notes | 185 | $ 1,175 | 185 | 1,175 | ||
Special dividend - common stock issued | 10,079 | |||||
Redemption of OP Units for common stock | 2,939 | |||||
Special dividend - special voting preferred stock and OP Units issued | 2,478 | |||||
Cumulative-effect adjustment | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Cumulative-effect adjustment (Note 2) | $ 28,607 | $ 28,607 | 28,607 | $ 28,607 | ||
8.25% Series A preferred stock | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Distributions accrued on preferred stock | 267 | 267 | ||||
7.75% Series B preferred stock | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Distributions accrued on preferred stock | 203 | 203 | ||||
8.50% Series C preferred stock | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||
Distributions accrued on preferred stock | $ 159 | $ 159 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
8.25% Series A preferred stock | |||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% | 8.25% |
7.75% Series B preferred stock | |||
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% | 7.75% |
8.50% Series C preferred stock | |||
Preferred stock, dividend rate (as a percent) | 8.50% | 8.50% | 8.50% |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Description of Business | |
Description of Business | Note 1 — Description of Business Arbor Realty Trust, Inc. (“we,” “us,” or “our”) is a Maryland corporation formed in 2003. We operate through two business segments: our Structured Loan Origination and Investment Business, or "Structured Business," and our Agency Loan Origination and Servicing Business, or "Agency Business." Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. We also invest in real estate-related joint ventures and may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac," and together with Fannie Mae, the government-sponsored enterprises, or "GSEs"), the Government National Mortgage Association ("Ginnie Mae"), Federal Housing Authority ("FHA") and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, "HUD"). We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing ("DUS") lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer, in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and small balance loan ("SBL") lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and sell finance products through conduit/commercial mortgage-backed securities ("CMBS") programs and during the third quarter of 2019, we began to originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as "Private Label" loans. We pool and securitize the Private Label loans and sell certain securities in the securitizations to third-party investors, while retaining the highest risk bottom tranche certificate. Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership ("ARLP"), for which we serve as the general partner, and ARLP's subsidiaries. We are organized to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes. A REIT is generally not subject to federal income tax on that portion of its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries ("TRS"), which is part of our TRS consolidated group (the "TRS Consolidated Group") and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. See Note 17 for details. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | Note 2 — Basis of Presentation and Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2019 Annual Report. Principles of Consolidation These consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant inter-company transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. During the nine months ended September 30, 2020, there has been a global outbreak of COVID-19, which has forced many countries, including the United States, to declare national emergencies, to institute "stay-at-home" orders, to close financial markets and to restrict operations of non-essential businesses. Such actions are creating significant disruptions in global supply chains, and adversely impacting many industries. COVID-19 has had, and may continue to have, a prolonged adverse impact on economic and market conditions, which could lead to an extended period of global economic slowdown. The impact of COVID-19 on companies is evolving rapidly, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results could differ from those estimates. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. The net gain/loss from changes in fair value of derivative instruments previously recorded to other income, net is now recorded to loss on derivative instruments, net. These reclassifications had no effect on the previously reported net income. Recently Adopted Accounting Pronouncements Credit Losses On January 1, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which utilizes a current expected credit loss methodology (“CECL”) for the recognition of credit losses for our structured loans and investments, held-to-maturity debt securities and our loss-sharing obligations related to the Fannie Mae DUS program, at the time the financial asset is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected credit losses. This methodology replaces the multiple existing impairment methods in GAAP and generally requires that a loss be incurred before it is recognized. We adopted ASU 2016-13 using the modified retrospective method, therefore, the results for reporting periods prior to January 1, 2020 are unadjusted and reported in accordance with previously applicable GAAP. In connection with the adoption of ASU 2016-13, we recorded a $28.6 million increase to accumulated deficit, which was net of a deferred tax asset of $3.6 million at January 1, 2020. The following table illustrates the impact of adopting January 1, 2020 As Reported Under As Reported Impact of ASU 2016-13 Pre-Adoption Adoption Assets: Allowance for credit losses: Structured loans and investments (1) $ 88,363 $ 71,069 $ 17,294 Held-to-maturity debt securities 501 — 501 Deferred tax assets 27,307 23,713 3,594 Liabilities: Allowance for loss-sharing obligations 16,847 2,441 14,406 (1) See Note 3 for details by asset class. Other Accounting Pronouncements Adopted Description Adoption Date Effect on Financial Statements In November 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest and requires companies to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required under GAAP). First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with changes between hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. Early adoption is permitted upon issuance of the update. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. This ASU eliminates step two from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value with the carrying amount of goodwill. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40), which includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity's own equity. The guidance also simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models in Subtopic 470-20 and requires entities to use the "if-converted" method when calculating diluted earnings per share for convertible instruments. First quarter of 2022, with early adoption permitted beginning in the first quarter of 2021 We are currently evaluating the timing of our adoption and the impact this guidance may have on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022 We have not adopted any of the optional expedients or exceptions through September 30, 2020 Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2019 Annual Report for a description of our significant accounting policies. Upon the adoption of ASU 2016-13 on January 1, 2020, we adjusted certain significant accounting policies, as follows: Allowance for Credit Losses. Our method for calculating the estimate of expected credit loss takes into account historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the US economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may make adjustments to historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates, and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e. refinance, sale, bankruptcy) which allows us to more accurately and reasonably determine the amount of the expected loss for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we consider that loan impaired. We evaluate the capitalization and market discount rates, as well as the borrower's operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We may also obtain a third party appraisal, which may value the collateral through an "as-is" or "stabilized value" methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses, and remove the impaired loan from the CECL analysis described above. If the loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. Loss on restructured loans is recorded when we have granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of operations in the period in which the loan was sold. |
Loans and Investments
Loans and Investments | 9 Months Ended |
Sep. 30, 2020 | |
Loans and Investments | |
Loans and Investments | Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar September 30, 2020 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 4,648,098 91 % 234 5.24 % 15.5 0 % 77 % Preferred equity investments 216,882 4 % 12 7.03 % 53.2 66 % 89 % Mezzanine loans 171,148 4 % 29 7.52 % 45.2 31 % 81 % Other (5) 60,759 1 % 20 4.89 % 79.9 0 % 70 % 5,096,887 100 % 295 5.39 % 18.9 4 % 78 % Allowance for credit losses (146,745) Unearned revenue (39,270) Loans and investments, net $ 4,910,872 December 31, 2019 Bridge loans (4) $ 3,836,832 90 % 217 5.77 % 18.0 0 % 75 % Preferred equity investments 181,058 4 % 10 7.62 % 68.8 69 % 89 % Mezzanine loans 191,575 4 % 24 9.70 % 36.7 22 % 73 % Other (5) 70,146 2 % 21 2.88 % 84.8 0 % 70 % 4,279,611 100 % 272 5.98 % 22.1 4 % 76 % Allowance for credit losses (71,069) Unearned revenue (18,582) Loans and investments, net $ 4,189,960 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of September 30, 2020 and December 31, 2019, bridge loans included 9 and 11, respectively, single-family rental loans with an aggregate UPB of $150.8 million and $66.7 million, respectively, of which $53.7 million and $30.0 million, respectively, was funded. (5) As of September 30, 2020 and December 31, 2019, other included 20 and 12 , respectively, single-family rental permanent loans with an aggregate UPB of $60.8 million and $41.6 million, respectively, and, at December 31, 2019, there were 9 purchased loans with an aggregate UPB of $28.6 million. Concentration of Credit Risk We are subject to concentration risk in that, at September 30, 2020, the UPB related to 22 loans with five different borrowers represented 13% of total assets. At December 31, 2019, the UPB related to 24 loans with five different borrowers represented 13% of total assets. During both the nine months ended September 30, 2020 and the year ended December 31, 2019, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 18 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality. Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the loan agreement. A risk rating of substandard indicates we anticipate the loan may require a modification of some kind. A risk rating of doubtful indicates we expect the loan to underperform over its term, and there could be loss of interest and/or principal. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, market strength or asset quality may result in a rating that is higher or lower than might be indicated by any risk rating matrix. A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of September 30, 2020 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2020 2019 2018 2017 2016 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 646,448 $ 354,257 $ 19,300 $ 47,100 $ — $ 853 $ 1,067,958 Pass/Watch 512,494 1,108,036 139,300 159,000 — 28,800 1,947,630 Special Mention 34,548 587,393 150,903 117,800 — — 890,644 Substandard — 42,100 66,546 34,200 8,250 — 151,096 Total Multifamily $ 1,193,490 $ 2,091,786 $ 376,049 $ 358,100 $ 8,250 $ 29,653 $ 4,057,328 4 % 77 % Land: Percentage of portfolio 80 % Special Mention $ 71,018 $ 19,523 $ — $ 19,975 $ — $ — $ 110,516 Substandard — — — — — 127,928 127,928 Total Land $ 71,018 $ 19,523 $ — $ 19,975 $ — $ 127,928 $ 238,444 0 % 92 % Healthcare: Percentage of portfolio 5 % Pass $ — $ 6,600 $ 10,000 $ — $ — $ — $ 16,600 Pass/Watch — — — 41,650 — — 41,650 Special Mention — 65,819 51,500 — — — 117,319 Substandard — 8,500 — — — — 8,500 Doubtful — — — 4,625 — — 4,625 Total Healthcare $ — $ 80,919 $ 61,500 $ 46,275 $ — $ — $ 188,694 0 % 79 % Student Housing: Percentage of portfolio 4 % Special Mention $ — $ 44,500 $ 3,350 $ — $ — $ — $ 47,850 Substandard 23,500 — 13,000 67,250 — — 103,750 Total Student Housing $ 23,500 $ 44,500 $ 16,350 $ 67,250 $ — $ — $ 151,600 12 % 79 % Hotel: Percentage of portfolio 3 % Substandard $ 60,000 $ 91,000 $ — $ — $ — $ — $ 151,000 Total Hotel $ 60,000 $ 91,000 $ — $ — $ — $ — $ 151,000 0 % 90 % Office: Percentage of portfolio 3 % Pass $ — $ — $ 5,000 $ — $ — $ — $ 5,000 Pass/Watch 35,410 — — — — — 35,410 Special Mention — — 42,799 43,151 — 9,681 95,631 Doubtful — — — — — 880 880 Total Office $ 35,410 $ — $ 47,799 $ 43,151 $ — $ 10,561 $ 136,921 3 % 80 % Single-Family Rental: Percentage of portfolio 3 % Pass $ 29,804 $ 34,640 $ — $ — $ — $ — $ 64,444 Pass/Watch 1,611 38,061 — — — — 39,672 Special Mention 10,351 — — — — — 10,351 Total Single-Family Rental $ 41,766 $ 72,701 $ — $ — $ — $ — $ 114,467 0 % 64 % Other: Percentage of portfolio 1 % Pass $ — $ 4,000 $ — $ 3,574 $ — $ — $ 7,574 Pass/Watch — — 9,000 10,006 — — 19,006 Special Mention — — 26,600 — — — 26,600 Substandard — — — — — 3,553 3,553 Doubtful — — — — — 1,700 1,700 Total Other $ — $ 4,000 $ 35,600 $ 13,580 $ — $ 5,253 $ 58,433 7 % 65 % Percentage of portfolio 1 % Grand Total $ 1,425,184 $ 2,404,429 $ 537,298 $ 548,331 $ 8,250 $ 173,395 $ 5,096,887 4 % 78 % Geographic Concentration Risk As of September 30, 2020, 16% and 12% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. As of December 31, 2019, 18% and 12% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. No other states represented 10% or more of the total loan and investment portfolio. Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows (in thousands): Three Months Ended September 30, 2020 Land Multifamily Retail Office Hotel Student Housing Healthcare Other Total Allowance for credit losses: Beginning balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 7,672 $ 4,110 $ 3,930 $ 1,886 $ 152,811 Provision for credit losses (net of recoveries) (84) 103 (40) (6,589) (133) 675 (21) 23 (6,066) Ending balance $ 78,010 $ 34,709 $ 13,941 $ 1,943 $ 7,539 $ 4,785 $ 3,909 $ 1,909 $ 146,745 Three Months Ended September 30, 2019 Allowance for credit losses $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 Nine Months Ended September 30, 2020 Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 Impact of adopting CECL - January 1, 2020 77 16,322 335 287 29 68 64 112 17,294 Provision for credit losses (net of recoveries) 10,064 18,387 13,606 156 7,510 4,717 3,845 97 58,382 Ending balance $ 78,010 $ 34,709 $ 13,941 $ 1,943 $ 7,539 $ 4,785 $ 3,909 $ 1,909 $ 146,745 Nine Months Ended September 30, 2019 Allowance for credit losses $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 The decrease in the provision for credit losses during the three months ended September 30, 2020 of $6.1 million was due to improved market conditions and expected future forecasts during the third quarter of 2020. The increase in the provision for credit losses during the nine months ended September 30, 2020 of $58.4 million, compared to the January 1, 2020 cumulative-effect adjustment upon adoption of CECL of $17.3 million, is primarily attributed to the significant adverse change in the economic outlook during the first half of 2020 due to the COVID-19 pandemic. Our estimate of allowance for credit losses on our structured loans and investments, including related unfunded loan commitments, during 2020 was based on a reasonable and supportable forecast period that was adjusted for the expectations that the markets we operate in will experience declines in economic conditions, increases in unemployment rates and other market driven factors largely the result of the COVID-19 pandemic that will likely impact loan delinquencies, modifications and potential risk of loss. For the periods beyond the reasonable and supportable forecast, we reverted to our historical loss rate, which was adjusted to address for factors that are not present in our existing portfolio. We also made adjustments for loans that are expected to extend based on available extension options and the timing of their maturities in relation to current economic conditions. The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our CECL allowance for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. As of September 30, 2020, we had outstanding unfunded commitments of $194.9 million that we are obligated to fund as borrowers meet certain requirements. As of September 30, 2020, accrued interest receivable related to our loans totaling $38.1 million was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheet. All of our structured loans and investments are collateral dependent, and as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands): September 30, 2020 Wtd. Avg. First Wtd. Avg. Last Carrying Allowance for Dollar LTV Dollar LTV Asset Class UPB (1) Value Credit Losses Ratio Ratio Land $ 134,215 $ 127,378 $ 77,869 0 % 98 % Hotel 110,000 89,216 7,500 0 % 94 % Retail 30,154 28,774 13,926 11 % 74 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,181 2,181 1,500 0 % 73 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,875 $ 253,922 $ 106,340 0 % 87 % December 31, 2019 Land $ 134,215 $ 126,800 $ 67,869 0 % 97 % Office 2,226 2,226 1,500 0 % 78 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 138,141 $ 130,726 $ 71,069 1 % 96 % (1) Represents the UPB of ten and five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2020 and December 31, 2019, respectively. There were no loans for which the fair value of the collateral securing the loan was less than the carrying value of the loan for which we had not recorded a provision for credit loss as of September 30, 2020 and December 31, 2019. At September 30, 2020, eight loans with an aggregate net carrying value of $53.8 million, net of related loan loss reserves of $9.1 million, were classified as non-performing and, at December 31, 2019, three loans with an aggregate net carrying value of $1.8 million, net of related loan loss reserves of $1.7 million, were classified as non-performing. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. A summary of our non-performing loans by asset class is as follows (in thousands): September 30, 2020 December 31, 2019 Less Than Greater Than Less Than Greater Than 90 Days 90 Days 90 Days 90 Days UPB Past Due Past Due UPB Past Due Past Due Student Housing $ 36,500 $ — $ 36,500 $ — $ — $ — Multifamily 17,700 — 17,700 — — — Healthcare 4,625 — 4,625 — — — Retail 3,553 — 3,553 1,000 — 1,000 Commercial 1,700 — 1,700 1,700 — 1,700 Office 880 — 880 880 — 880 Total $ 64,958 $ — $ 64,958 $ 3,580 $ — $ 3,580 In addition, we have six loans with a carrying value totaling $120.9 million at September 30, 2020, that are collateralized by a land development project. These loans were scheduled to mature in September 2020 and we are currently in negotiations with the borrower to extend the maturity. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $111.5 million entitle us to a weighted average accrual rate of interest of 7.86%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At September 30, 2020 and December 31, 2019, we had a cumulative allowance for credit losses of $71.4 million and $61.4 million, respectively, related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development's outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is in compliance with all of the terms and conditions of the loans. At both September 30, 2020 and December 31, 2019, we had no loans contractually past due 90 days or more that are still accruing interest. During both the three and nine months ended September 30, 2020 and 2019, interest income recognized on nonaccrual loans was de minimis. In the fourth quarter of 2019, we purchased $50.0 million of a $110.0 million bridge loan, which is collateralized by a hotel property and scheduled to mature in December 2022. In the first quarter of 2020, we recorded a $7.5 million allowance for credit losses due to a reduction in the appraisal value of the property. In August 2020, we purchased the remaining $60.0 million bridge loan at a discount for $39.9 million, which we determined had experienced a more than insignificant deterioration in credit quality since origination and, therefore, deemed to be a purchased loan with credit deterioration. The total discount received of $20.1 million was classified as a noncredit discount and no portion of the discount was allocated to allowance for credit losses at the date of purchase since the appraised value of the property is greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid-off by March 2, 2021. The temporary reduction in the interest rate is deferred to payoff. In August 2020, we entered into a loan modification agreement on a $26.5 million bridge loan with an interest rate of LIBOR plus 6.00% with a 2.375% LIBOR floor and a $6.1 million mezzanine loan with a fixed rate of 12% collateralized by a retail property to: (1) reduce the interest rate on both loans to the greater of: (i) LIBOR plus 5.50% and (ii) 6.50%, and (2) to extend the maturity date three years to December 2024. A portion of the foregoing interest equal to 2.00% will be deferred to payoff and will be waived if the loan is paid-off by December 31, 2022. The loan modification agreement also includes a $6.0 million required principal paydown, which occurred at the closing of the modification transaction, and an $8.0 million principal reduction once the borrower deposits an additional reserve deposit of approximately $4.6 million by December 31, 2021. We have the ability to potentially recapture up to $8.0 million of the principal reduction to the extent that the property is sold or refinanced in excess of the debt. These two loan modifications were deemed troubled debt restructurings. There were no loan modifications, refinancing's and/or extensions during 2019 that were considered troubled debt restructurings. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. At September 30, 2020 and December 31, 2019, we had total interest reserves of $56.6 million and $37.0 million, respectively, on 152 loans and 131 loans, respectively, with an aggregate UPB of $2.99 billion and $2.43 billion, respectively. |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 9 Months Ended |
Sep. 30, 2020 | |
Loans Held-for-Sale, Net | |
Loans Held-for-Sale, Net | Note 4 — Loans Held-for-Sale, Net Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our Private Label loans are generally expected to be sold and securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands): September 30, 2020 December 31, 2019 Fannie Mae $ 392,343 $ 408,534 Freddie Mac 155,729 36,303 FHA 58,546 1,082 Private Label 11,302 401,207 617,920 847,126 Fair value of future MSR 14,577 16,519 Unearned discount (1,359) (2,285) Loans held-for-sale, net $ 631,138 $ 861,360 During the three and nine months ended September 30, 2020, we sold $1.22 billion and $4.17 billion, respectively, of loans held-for-sale and recorded gain on sales of $19.2 million and $57.3 million, respectively. Included in the total loans sold in the second quarter of 2020 were Private Label loans totaling $727.2 million, which were sold to an unconsolidated affiliate of ours who pooled and securitized the loans in May 2020. We retained the most subordinate class of certificates in the securitization totaling $63.6 million in satisfaction of credit risk retention requirements (see Note 7 for details), and are the primary servicer of the mortgage loans. During the three and nine months ended September 30, 2019, we sold $1.49 billion and $3.51 billion, respectively, of loans held-for-sale and recorded gain on sales of $20.1 million and $48.1 million, respectively. At September 30, 2020 and December 31, 2019, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status. |
Capitalized Mortgage Servicing
Capitalized Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2020 | |
Capitalized Mortgage Servicing Rights | |
Capitalized Mortgage Servicing Rights | Note 5 — Capitalized Mortgage Servicing Rights Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of our MSRs throughout the periods presented for all MSRs were between 8% - 13% (representing a weighted average discount rate of 11%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 8.3 years and 8.0 years at September 30, 2020 and December 31, 2019, respectively. A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Originated Acquired Total Originated Acquired Total Beginning balance $ 260,452 $ 52,836 $ 313,288 $ 221,901 $ 64,519 $ 286,420 Additions 37,403 — 37,403 97,554 — 97,554 Amortization (8,811) (3,605) (12,416) (24,425) (11,704) (36,129) Write-downs and payoffs (2,081) (959) (3,040) (8,067) (4,543) (12,610) Ending balance $ 286,963 $ 48,272 $ 335,235 $ 286,963 $ 48,272 $ 335,235 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 197,156 $ 79,492 $ 276,648 $ 176,686 $ 97,084 $ 273,770 Additions 25,945 — 25,945 62,477 — 62,477 Amortization (7,084) (5,041) (12,125) (20,229) (16,502) (36,731) Write-downs and payoffs (3,772) (3,008) (6,780) (6,689) (9,139) (15,828) Ending balance $ 212,245 $ 71,443 $ 283,688 $ 212,245 $ 71,443 $ 283,688 We collected prepayment fees totaling $2.0 million and $10.1 million during the three and nine months ended September 30, 2020, respectively, and $5.3 million and $13.8 million during the three and nine months ended September 30, 2019, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. As of September 30, 2020 and December 31, 2019, we had no valuation allowance recorded on any of our MSRs. The expected amortization of capitalized MSRs recorded as of September 30, 2020 is as follows (in thousands): Year Amortization 2020 (three months ending 12/31/2020) $ 12,869 2021 49,613 2022 45,577 2023 41,522 2024 37,388 2025 34,236 Thereafter 114,030 Total $ 335,235 Actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 9 Months Ended |
Sep. 30, 2020 | |
Mortgage Servicing | |
Mortgage Servicing | Note 6 — Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): September 30, 2020 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 16,462,041 73 % Texas 17 % Freddie Mac 4,687,197 21 % New York 9 % Private Label (2) 727,063 3 % North Carolina 9 % FHA 685,263 3 % California 8 % Total $ 22,561,564 100 % Florida 7 % Georgia 6 % Other (3) 44 % Total 100 % December 31, 2019 Fannie Mae $ 14,832,844 74 % Texas 19 % Freddie Mac 4,534,714 23 % North Carolina 9 % FHA 691,519 3 % New York 9 % Total $ 20,059,077 100 % California 9 % Florida 6 % Georgia 6 % Other (3) 42 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) Represents loans we service in connection with our Private Label securitization in May 2020 (see Note 4 for details). (3) No other individual state represented 4% or more of the total. At September 30, 2020 and December 31, 2019, our weighted average servicing fee was 44.8 basis points and 43.8 basis points, respectively. At September 30, 2020 and December 31, 2019, we held total escrow balances of $1.15 billion and $947.1 million, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $784.4 million and $562.1 million at September 30, 2020 and December 31, 2019, respectively, related to loans we are servicing within our Agency Business. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, was $1.3 million and $5.8 million during the three and nine months ended September 30, 2020, respectively, and $4.7 million and $12.9 million during the three and nine months ended September 30, 2019, respectively, and is a component of servicing revenue, net in the consolidated statements of income. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 9 Months Ended |
Sep. 30, 2020 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 7 — Securities Held-to-Maturity Agency B Piece Bonds. Agency Private Label Certificates. Structured Single-Family Rental Bonds (“SFR bonds”). A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain/(Loss) Fair Value Credit Losses September 30, 2020 B Piece bonds $ 80,929 $ 60,662 $ 953 $ 61,615 $ 861 APL certificates 63,627 37,598 (2,012) 35,586 767 SFR bonds 20,000 20,000 (1,588) 18,412 — Total $ 164,556 $ 118,260 $ (2,647) $ 115,613 $ 1,628 December 31, 2019 B Piece bonds $ 91,028 $ 68,699 $ 2,965 $ 71,664 $ — SFR bonds 20,000 20,000 74 20,074 — Total $ 111,028 $ 88,699 $ 3,039 $ 91,738 $ — A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands): Three Months Ended September 30, 2020 APL B Piece Certificates Bonds Total Beginning balance $ 2,079 $ 1,069 $ 3,148 Provision for credit loss expense (1,312) (208) (1,520) Ending balance $ 767 $ 861 $ 1,628 Nine Months Ended September 30, 2020 APL B Piece Total Beginning balance, prior to adoption of CECL $ — $ — $ — Impact of adopting CECL - January 1, 2020 — 501 501 Provision for credit loss expense 767 360 1,127 Ending balance $ 767 $ 861 $ 1,628 The allowance for credit losses on our held-to-maturity securities was estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities. The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities. As of September 30, 2020, no other-than-temporary impairment was recorded on our held-to-maturity securities. We recorded interest income (including the amortization of discount) related to these investments of $2.9 million and $6.9 million during the three and nine months ended September 30, 2020, respectively, and $2.3 million and $6.8 million during the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, accrued interest receivable related to these bonds totaling $0.6 million was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheet. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 9 Months Ended |
Sep. 30, 2020 | |
Investments in Equity Affiliates | |
Investments in Equity Affiliates | Note 8 — Investments in Equity Affiliates We account for all investments in equity affiliates under the equity method. A summary of our investments in equity affiliates is as follows (in thousands): UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates September 30, 2020 December 31, 2019 September 30, 2020 Arbor Residential Investor LLC $ 67,783 $ 26,520 $ — AMAC Holdings III LLC 9,746 10,520 — North Vermont Avenue 2,473 2,440 — Lightstone Value Plus REIT L.P 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 82,322 $ 41,800 $ 1,687 Arbor Residential Investor LLC (“ARI”). income of $32.3 million and $56.1 million, respectively, and to income from equity affiliates in our consolidated statements of income. During the third quarter of 2020, we received a $15.0 million cash distribution from this equity investment, which was classified as a return on capital. Summarized statements of income for our investment in ARI are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Statements of Income: Total revenues $ 1,050,946 $ 335,610 Total expenses 665,552 294,660 Net income $ 385,394 $ 40,950 Lexford Portfolio. See Note 18 for details of certain investments described above. |
Real Estate Owned
Real Estate Owned | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate Owned | |
Real Estate Owned | Note 9 — Real Estate Owned A summary of our real estate assets is as follows (in thousands): September 30, 2020 December 31, 2019 Office Hotel Office Building Property Building Total Land $ 4,509 $ 3,294 $ 4,509 $ 7,803 Building and intangible assets 2,010 31,541 2,010 33,551 Less: (2,500) (14,307) (2,500) (16,807) Less: (1,125) (10,320) (1,007) (11,327) Real estate owned, net $ 2,894 $ 10,208 $ 3,012 $ 13,220 In September 2020, we sold our hotel property for $8.4 million and recorded a $1.9 million loss, which was included in loss on sale of real estate. In addition, we recorded a $2.5 million charge for a litigation settlement, which is included in selling and administrative expenses. Our office building was fully occupied by a single tenant until April 2017 when the lease expired. The building is currently vacant. At December 31, 2019, our hotel property had a restricted cash balance totaling $0.5 million due to escrow requirements. |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Allowance for Loss-Sharing Obligations | |
Allowance for Loss-Sharing Obligations | Note 11 — Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning balance $ 73,220 $ 34,417 $ 34,648 $ 34,298 Impact of adopting CECL - January 1, 2020 — — 14,406 — Provisions for loss sharing (2,031) 1,326 22,538 3,880 Provisions reversal for loan repayments (196) (591) (832) (2,323) Recoveries (charge-offs), net 167 373 400 (330) Ending balance $ 71,160 $ 35,525 $ 71,160 $ 35,525 When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At September 30, 2020 and 2019, guarantee obligations of $33.2 million and $32.1 million, respectively, were included in the allowance for loss-sharing obligations. In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The current expected loss related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio. The increase in the provision for credit losses during the nine months ended September 30, 2020 of $22.5 million, compared to the January 1, 2020 cumulative-effect adjustment upon adoption of CECL of $14.4 million, is primarily attributed to the significant adverse change in the economic outlook due to the COVID-19 pandemic. When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At September 30, 2020 and December 31, 2019, we had outstanding advances of $0.1 million and $0.5 million, respectively, which were netted against the allowance for loss-sharing obligations. At September 30, 2020, our allowance for loss-sharing obligations, associated with expected losses under CECL was $38.0 million and represented 0.23% of the Fannie Mae servicing portfolio. At September 30, 2020 and December 31, 2019, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.06 billion and $2.73 billion, respectively. The maximum quantifiable liability is not representative of the actual loss we would incur. We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 12 — Derivative Financial Instruments We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. We do not use these derivatives for speculative purposes, but are instead using them to manage our exposure to interest rate risk. Agency Rate Lock and Forward Sale Commitments. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower "rate locks" a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment. These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of other income, net in the consolidated statements of operations. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of operations. During the three and nine months ended September 30, 2020, we recorded a net loss of $0.9 million and a net gain of $3.3 million, respectively, from changes in the fair value of these derivatives in loss on derivative instruments, net and $42.4 million and $96.7 million, respectively, of income from MSRs. During the three and nine months ended September 30, 2019, we recorded a net loss of $4.7 million and $6.1 million, respectively, from changes in the fair value of these derivatives in loss on derivative instruments, net and $29.9 million and $62.9 million, respectively, of income from MSRs. See Note 13 for details. Interest Rate Swap Futures. During the three months ended September 30, 2020, we recorded realized losses of $0.2 million and unrealized gains of $0.4 million to our Structured Business and realized losses of $0.1 million and unrealized gains of $0.1 million to our Agency Business related to our Swap Futures. During the nine months ended September 30, 2020, we recorded realized losses of $3.0 million and unrealized losses of $0.1 million to our Structured Business and realized losses of $57.3 million and unrealized losses of $1.5 million to our Agency Business related to our Swap Futures. During the three and nine months ended September 30, 2019, we recorded realized losses of $0.4 million and $0.6 million, respectively, and unrealized gains of $0.1 million and unrealized losses of less than $0.1 million, respectively, to our Structured Business related to our Swap Futures. During both the three and nine months ended September 30, 2019, we recorded realized gains of $0.2 million and unrealized losses of $0.2 million to our Agency Business related to our Swap Futures. The realized and unrealized gains and losses are recorded in loss on derivative instruments, net on our consolidated statements of income. A summary of our non-qualifying derivative financial instruments is as follows ($ in thousands): September 30, 2020 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Agency Business Rate Lock Commitments 14 $ 81,743 Other Assets/Other Liabilities $ 2,160 $ (110) Forward Sale Commitments 79 688,361 Other Assets/Other Liabilities 1,387 (742) Swap Futures 84 8,400 — — $ 778,504 $ 3,547 $ (852) Structured Business Swap Futures 345 $ 34,500 — — December 31, 2019 Agency Business Rate Lock Commitments 5 $ 37,657 Other Assets/Other Liabilities $ 1,066 $ (202) Forward Sale Commitments 79 483,576 Other Assets/Other Liabilities 369 (2,895) Swap Futures 3,274 327,400 — — $ 848,633 $ 1,435 $ (3,097) Structured Business Swap Futures 271 $ 27,100 — — |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value | |
Fair Value | Note 13 — Fair Value Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands): September 30, 2020 December 31, 2019 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 5,096,887 $ 4,910,872 $ 5,033,017 $ 4,279,611 $ 4,189,960 $ 4,228,071 Loans held-for-sale, net 617,920 631,138 641,616 847,126 861,360 876,975 Capitalized mortgage servicing rights, net n/a 335,235 363,819 n/a 286,420 328,995 Securities held-to-maturity, net 164,556 118,260 115,613 111,028 88,699 91,738 Derivative financial instruments 394,432 3,547 3,547 173,532 1,435 1,435 Financial liabilities: Credit and repurchase facilities $ 1,454,419 $ 1,449,940 $ 1,451,759 $ 1,681,146 $ 1,678,288 $ 1,677,658 Collateralized loan obligations 2,532,593 2,516,032 2,478,949 2,147,467 2,130,121 2,147,944 Senior unsecured notes 670,750 662,289 650,235 325,000 319,799 331,225 Convertible senior unsecured notes, net 278,490 266,706 264,803 300,914 284,152 310,778 Junior subordinated notes 154,336 141,470 99,106 154,336 140,949 97,668 Derivative financial instruments 375,672 852 852 347,701 3,097 3,097 Debt fund — — — 70,000 68,629 70,138 Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows: Level 1—Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Loans and investments, net. Loans held-for-sale, net. Capitalized mortgage servicing rights, net. Securities held-to-maturity, net. Derivative financial instruments. Credit facilities and repurchase agreements. Collateralized loan obligations, junior subordinated notes and Debt Fund. Senior unsecured notes. Fair values are estimated at current market quotes received from active markets when available (Level 1). If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2). Convertible senior unsecured notes, net. We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels as of September 30, 2020 (in thousands): Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 3,547 $ 3,547 $ — $ 1,387 $ 2,160 Financial liabilities: Derivative financial instruments $ 852 $ 852 $ — $ 852 $ — We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, are determined using the following input levels as of September 30, 2020 (in thousands): Fair Value Measurements Using Fair Net Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 147,583 $ 147,583 $ — $ — $ 147,583 (1) We had an allowance for loan losses of $106.3 million relating to ten impaired loans with an aggregate carrying value, before loan loss reserves, of $253.9 million at September 30, 2020. Loan impairment assessments. Quantitative information about Level 3 fair value measurements at September 30, 2020 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Hotel $ 81,716 Discounted cash flows / Discount rate 7.50 % direct capitalization Capitalization rate 5.00 % Revenue growth rate 25.00 % Land 49,510 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Retail 14,848 Discounted cash flows Discount rate 10.21 % Capitalization rate 9.25 % Revenue growth rate 1.76 % Healthcare 828 Discounted cash flows Capitalization rate 14.30 % Office 681 Discounted cash flows Discount rate 11.00 % Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 2,160 Discounted cash flows W/A discount rate 12.75 % The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivative assets and liabilities, net Beginning balance $ 549 $ 745 $ 1,066 $ 324 Settlements (40,746) (30,067) (95,614) (62,587) Realized gains recorded in earnings 40,197 29,322 94,548 62,263 Unrealized gains recorded in earnings 2,160 589 2,160 589 Ending balance $ 2,160 $ 589 $ 2,160 $ 589 The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands): Notional/ Fair Value of Interest Rate Total Fair Value September 30, 2020 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 81,743 $ 2,160 $ (110) $ 2,050 Forward sale commitments 688,361 — 110 110 Loans held-for-sale, net (1) 617,920 14,704 — 14,704 Total $ 16,864 $ — $ 16,864 (1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. We measure certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities are determined using the following input levels as of September 30, 2020 (in thousands): Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 4,910,872 $ 5,033,017 $ — $ — $ 5,033,017 Loans held-for-sale, net 631,138 641,616 — 626,912 14,704 Capitalized mortgage servicing rights, net 335,235 363,819 — — 363,819 Securities held-to-maturity, net 118,260 115,613 — — 115,613 Financial liabilities: Credit and repurchase facilities $ 1,449,940 $ 1,451,759 $ — $ 567,552 $ 884,207 Collateralized loan obligations 2,516,032 2,478,949 — — 2,478,949 Senior unsecured notes 662,289 650,235 650,235 — — Convertible senior unsecured notes, net 266,706 264,803 — 264,803 — Junior subordinated notes 141,470 99,106 — — 99,106 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 — Commitments and Contingencies Impact of COVID-19. Agency Business Commitments. As of September 30, 2020, we were required to maintain at least $16.1 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement. We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier, which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. As of September 30, 2020, we met the restricted liquidity requirement with a $45.0 million letter of credit and $6.9 million of cash collateral. As of September 30, 2020, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $39.7 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash. We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. As of September 30, 2020, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. We are not subject to capital requirements on a quarterly basis for Ginnie Mae or FHA, as such requirements for these investors are only required on an annual basis. As an approved designated seller/servicer under Freddie Mac's SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit. We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 12 and Note 13. Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2020 (three months ending December 31, 2020) $ 691,917 $ 1,327 $ 693,244 2021 710,547 4,861 715,408 2022 1,809,657 7,986 1,817,643 2023 938,641 7,754 946,395 2024 456,905 7,652 464,557 2025 18,334 7,696 26,030 Thereafter 464,587 34,041 498,628 Total $ 5,090,588 $ 71,317 $ 5,161,905 During both the three months ended September 30, 2020 and 2019, we recorded lease expense of $1.5 million, and during the nine months ended September 30, 2020 and 2019, we recorded lease expense of $4.6 million and $4.5 million, respectively. Unfunded Commitments. Litigation. In June 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the “Trust”), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc. and the Homestead Village L.L.C. family of companies (together “ESI”) (formerly Chapter 11 debtors, together the "Debtors") that have emerged from bankruptcy. Two of the lawsuits were filed in the U.S. Bankruptcy Court for the Southern District of New York, and the third in the Supreme Court of the State of New York, New York County. There were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain other entities that are affiliates of ours are included as defendants. The New York State Court action has been removed to the Bankruptcy Court. The lawsuits all allege, as a factual basis and background, certain facts surrounding the June 2007 leveraged buyout of ESI from affiliates of Blackstone Capital. Our subsidiary, Arbor ESH II, LLC, had a $115.0 million investment in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. The New York State Court action and one of the two federal court actions name as defendants Arbor ESH II, LLC, Arbor Commercial Mortgage, LLC ("ACM ") and ABT-ESI LLC, an entity in which we have a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged in these complaints, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. These two complaints also allege that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment (“Fiduciary Duty Claims”) and name a director of ours, and a former general counsel of ACM, each of whom had served on the Board of Directors of ESI for a period of time. We are defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors' bankruptcy filing. In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, has named ACM and ABT-ESI LLC, together with a number of other defendants and asserts claims, including constructive and fraudulent conveyance claims under state and federal statutes, as well as a claim under the Federal Debt Collection Procedure Act. In June 2013, the Trust filed a motion to amend the lawsuits, to, among other things, (i) consolidate the lawsuits into one lawsuit, (ii) remove 47 defendants, none of whom are related to us, from the lawsuits so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (iii) reduce the counts within the lawsuits from over 100 down to 17. The remaining counts in the sole remaining amended complaint against our affiliates are principally state law claims for breach of fiduciary duties, waste, unlawful dividends and unjust enrichment, and claims under the Bankruptcy Code for avoidance and recovery actions, among others. The bankruptcy court granted the motion and the amended complaint has been filed. The amended complaint seeks approximately We moved to dismiss the referenced remaining action in December 2013. After supplemental briefing and multiple adjourned conferences, in August 2020, the Court issued a decision granting our motion to dismiss in part, dismissing 9 of the 17 counts. The Court permitted claims against director designees to proceed on theories of authorization of illegal dividends and breach of fiduciary duty. The Court permitted claims against the defendant entities, including our affiliated entities, to proceed on theories of constructive fraudulent transfer and fraudulent transfer under state and federal law. Moreover, the Court affirmatively dismissed four counts against the defendant entities to the extent they are based on distributions from certain so-called LIBOR Floor Certificates. According to the amended complaint, the total LIBOR Floor Certificate transfers were $74.0 million in value. As a result, with what remains of the amended complaint, total possible liability against the affiliated entities has correspondingly fallen, whereas total possible liability against the director designees remains at approximately $139.0 million. The parties have stipulated to a schedule for discovery and we intend to vigorously defend against the remaining claims. We have not made a loss accrual for this litigation because we believe that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated. Due to Borrowers. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities | |
Variable Interest Entities | Note 15 — Variable Interest Entities Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs. Our CLO consolidated entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We, or one of our affiliates, are named collateral manager, servicer, and special servicer for all collateral assets held in CLOs, which we believe gives us the power to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests and also have rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued to third parties by the CLOs and Debt Fund, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the CLOs and Debt Fund, prior to the unwind, as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands): September 30, 2020 December 31, 2019 Assets: Restricted cash $ 103,411 $ 208,467 Loans and investments, net 2,993,596 2,557,909 Other assets 15,748 18,380 Total assets $ 3,112,755 $ 2,784,756 Liabilities: Collateralized loan obligations $ 2,516,032 $ 2,130,121 Debt fund — 68,629 Other liabilities 2,713 10,849 Total liabilities $ 2,518,745 $ 2,209,599 Assets held by the CLOs are restricted and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to us and can only be satisfied from each respective asset pool. See Note 10 for details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the consolidated CLOs. Unconsolidated VIEs A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of September 30, 2020 is as follows (in thousands): Type Carrying Amount (1) Loans $ 481,422 B Piece and SFR bonds 81,523 APL certificates 38,365 Equity investments 12,219 Agency interest only strips 2,084 Total $ 615,613 (1) Represents the carrying amount of loans and investments before reserves. At September 30, 2020, $218.8 million of loans to VIEs had corresponding specific loan loss reserves of $86.9 million. The maximum loss exposure as of September 30, 2020 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $4.88 billion at September 30, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 17 — Income Taxes As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT-taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. The Agency Business is operated through our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. In the three and nine months ended September 30, 2020, we recorded a tax provision of $17.8 million and $15.5 million, respectively. In the three and nine months ended September 30, 2019, we recorded a tax provision of $6.6 million and $11.0 million, respectively. The tax provision recorded in the three months ended September 30, 2020 consisted of a current tax provision of $13.9 million and a deferred tax provision of Current and deferred taxes are primarily recorded on the portion of earnings (losses) recognized by us with respect to our interest in the TRS’s. Deferred income tax assets and liabilities are calculated based on temporary differences between our U.S. GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2020 | |
Agreements and Transactions with Related Parties | |
Agreements and Transactions with Related Parties | Note 18 — Agreements and Transactions with Related Parties Shared Services Agreement. Other Related Party Transactions. Due to related party was $ 0.1 We have a $35.0 million bridge loan and a $7.8 million preferred equity interest on an office building in New York City. The property is controlled by a third party and, beginning in June 2020, its day-to-day operations are managed by an entity owned by an immediate family member of our chief executive officer, which is entitled to an annual fee of $0.3 million and a 33% equity participation interest. In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. In October 2019, we entered into an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives' charter. During the nine months ended September 30, 2020, we reimbursed the aircraft owner $0.4 million for the flights chartered by our executives pursuant the agreement. In the first quarter of 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC Holdings III LLC ("AMAC III"), a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment (of which $10.9 million was funded as of September 30, 2020) for an 18% interest in AMAC III. We recorded a loss of less than $0.1 million and $0.6 million in the three and nine months ended September 30, 2020, respectively, related to this investment. In July 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower with which we have an outstanding $34.0 million bridge loan. In June 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property. In August 2020, the $34.0 million bridge loan was refinanced with a $35.3 million bridge loan, which bears interest at a rate of 350 basis points over LIBOR and matures in August 2022. We also originated a $15.6 million Private Label loan in December 2019 to a borrower which is 100% owned by AMAC III, which bears interest at a fixed rate of 3.735% and matures in January 2030. In May 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from our bridge and Private Label loans totaled $1.6 million for the nine months ended September 30, 2020. In 2018, we originated a $61.2 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 10% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.50% with a LIBOR floor of 2.00% and matures in October 2021. In the fourth quarter of 2019, the related party investors liquidated their equity investment. Interest income recorded from this loan totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2019, respectively. In 2018, we originated a $37.5 million bridge loan, which was used to purchase several multifamily properties. In January 2019, an entity owned, in part, by an immediate family member of our chief executive officer, purchased a 23.9% interest in the borrowing entity. The loan had an interest rate of LIBOR plus 4.25% with a LIBOR floor of 2.375% and was scheduled to mature in October 2020. In May 2020, the borrower repaid this loan in full. Interest income recorded from this loan totaled $1.4 million for the nine months ended September 30, 2020 and $0.7 million and $2.0 million for the three and nine months ended September 30, 2019, respectively. In 2018, we acquired a $19.5 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 85% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.0% with a LIBOR floor of 2.125% and matures in July 2021. Interest income recorded from this loan totaled $0.3 million and $0.9 million for the three and nine months ended September 30, 2020, respectively, and $0.3 million and $1.0 million for the three and nine months ended September 30, 2019, respectively. In 2018, we originated a $17.7 million bridge loan to an entity owned, in part, by an immediate family member of our chief executive officer, who owned a 10.8% interest in the borrowing entity. The loan was used to purchase several undeveloped parcels of land. The loan had a fixed interest rate of 10% and was scheduled to mature in February 2020. In September 2019, the borrower made a partial paydown of principal totaling $4.7 million and the remaining balance was paid off in January 2020. Interest income recorded from this loan totaled $0.1 million for the nine months ended September 30, 2020 and $0.4 million and $1.5 million for the three and nine months ended September 30, 2019, respectively. In 2018, we originated a $21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% in the borrowing entity. The loan has an interest rate of LIBOR plus 4.75% with a LIBOR floor of 1.25% and matures in June 2021. Interest income recorded from this loan totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, and $0.4 million and $1.0 million for the three and nine months ended September 30,2019, respectively. In 2018, we acquired a $9.4 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and matures in January 2021. Interest income recorded from this loan totaled $0.1 million and $0.4 million for the three and nine months ended September 30, 2020, respectively, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2019, respectively. In 2017, we acquired a $32.8 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owned 90% of the borrowing entity. The loan had an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.13% and was scheduled to mature in June 2020. In October 2019, the borrower repaid this loan in full. Interest income recorded from this loan totaled $0.6 million and $1.9 million for the three and nine months ended September 30, 2019, respectively. In 2017, we originated two bridge loans totaling $28.0 million on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 45% of the borrowing entity. The loans had an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and were scheduled to mature in the fourth quarter of 2020. The borrower refinanced these loans with a $31.1 million bridge loan we originated in November 2019 with an interest rate of LIBOR plus 4.0%, a LIBOR floor of 1.80% and a maturity date in October 2021. Interest income recorded from these loans totaled $0.5 million and $1.4 million for the three and nine months ended September 30, 2020, respectively, and $0.6 million and $1.7 million for the three and nine months ended September 30, 2019, respectively. In 2017, we originated a $46.9 million Fannie Mae loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers) which owns a 17.6% interest in the borrowing entity. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 5% of the original UPB. Servicing revenue recorded from this loan was less than $0.1 million for all periods presented. In 2017, Ginkgo Investment Company LLC (“Ginkgo”), of which one of our directors is a 33% managing member, purchased a multifamily apartment complex which assumed an existing $8.3 million Fannie Mae loan that we service. Ginkgo subsequently sold the majority of its interest in this property and owned a 3.6% interest at September 30, 2020. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 20% of the original UPB. Upon the sale, we received a 1% loan assumption fee which was governed by existing loan agreements that were in place when the loan was originated in 2015, prior to such purchase. Servicing revenue recorded from this loan was less than $0.1 million for all periods presented. In 2016, we originated $48.0 million of bridge loans on six multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12.0% in the borrowing entities. The loans had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and were scheduled to mature in September 2019. In 2017, a $6.8 million loan on one property paid off in full and in 2018 four additional loans totaling $28.3 million paid off in full. In January 2019, $10.9 million of the $12.9 million remaining bridge loan paid off, with the $2.0 million remaining UPB converting to a mezzanine loan with a fixed interest rate of 10.0% and a January 2024 maturity. Interest income recorded from the remaining mezzanine loan totaled $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2019, respectively. In 2016, we originated a $12.7 million bridge loan and a $5.2 million preferred equity investment on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. The bridge loan had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and the preferred equity investment had a fixed interest rate of 10%. The bridge loan and the preferred equity investment paid off in full in May 2019. In March 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan to the properties. The Private Label loan bears interest at a fixed rate of 3.10% and the mezzanine loan bears interest at a fixed rate of 9.00% and both loans mature in April 2030. In May 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.3 million for the nine months ended September 30, 2020 and $0.6 million for the nine months ended September 30, 2019. In 2015, we invested $9.6 million for 50% of ACM's indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in this entity. We recorded income from these investments of $32.3 million and $56.1 million in the three and nine months ended September 30, 2020, respectively, and $2.6 million and $6.1 million in the three and nine months ended September 30, 2019, respectively . In connection with a litigation settlement related to this investment, we provided a guaranty of up to 50% of any amounts payable in connection with the settlement. ACM has also provided us with a guaranty to pay up to 50% of any amounts we may pay under this guaranty. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In June 2018, the owners of Lexford restructured part of its debt and we originated twelve bridge loans totaling $280.5 million, which were used to repay in full certain existing mortgage debt and to renovate 72 multifamily properties included in the portfolio. The loans were originated in June 2018, had interest rates of LIBOR plus 4.0% and were scheduled to mature in June 2021. During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million. In March 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which bears interest at a fixed rate of 3.30% and matures in March 2030. In May 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.5 million for the nine months ended September 30, 2020 and $1.1 million and $9.1 million for the three and nine months ended September 30, 2019, respectively. Further, as part of this June 2018 restructuring, $50.0 million in unsecured financing was provided by an unsecured lender to certain parent entities of the property owners. ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing. In addition, in connection with our equity investment, we received distributions totaling $1.1 million during the nine months ended September 30, 2020 and $1.2 million and $0.7 million during the three and nine months ended September 30, 2019, respectively, which were recorded as income from equity affiliates. Separate from the loans we originated in June 2018, we provide limited ("bad boy") guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard "bad" acts such as fraud or a material misrepresentation by Lexford or us. At September 30, 2020, this debt had an aggregate outstanding balance of $613.9 million and is scheduled to mature between 2020 and 2029. Several of our executives, including our chief financial officer, general counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. Upon the closing of the Acquisition in 2016, we issued OP Units, each paired with one share of our special voting preferred shares. At September 30, 2020, ACM holds 3,898,554 shares of our common stock and 11,932,207 OP Units, which represents 11.9% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Information | |
Segment Information | Note 19 — Segment Information The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation. Three Months Ended September 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 75,471 $ 6,230 $ — $ 81,701 Interest expense 35,252 2,636 — 37,888 Net interest income 40,219 3,594 — 43,813 Other revenue: Gain on sales, including fee-based services, net — 19,895 — 19,895 Mortgage servicing rights — 42,357 — 42,357 Servicing revenue — 25,764 — 25,764 Amortization of MSRs — (12,416) — (12,416) Property operating income 1,033 — — 1,033 Gain (loss) on derivative instruments, net 118 (871) — (753) Other income, net 1,050 — — 1,050 Total other revenue 2,201 74,729 — 76,930 Other expenses: Employee compensation and benefits 8,873 24,089 — 32,962 Selling and administrative 4,665 4,691 — 9,356 Property operating expenses 1,300 — — 1,300 Depreciation and amortization 598 1,324 — 1,922 Provision for loss sharing (net of recoveries) — (2,227) — (2,227) Provision for credit losses (net of recoveries) (6,065) (1,521) — (7,586) Total other expenses 9,371 26,356 — 35,727 Income before sale of real estate, income from equity affiliates and income taxes 33,049 51,967 — 85,016 Loss on sale of real estate (1,868) — — (1,868) Income from equity affiliates 32,358 — — 32,358 Provision for income taxes (6,494) (11,291) — (17,785) Net income 57,045 40,676 — 97,721 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 13,836 13,836 Net income attributable to common stockholders $ 55,157 $ 40,676 $ (13,836) $ 81,997 Three Months Ended September 30, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 73,829 $ 6,680 $ — $ 80,509 Interest expense 43,209 4,855 — 48,064 Net interest income 30,620 1,825 — 32,445 Other revenue: Gain on sales, including fee-based services, net — 21,298 — 21,298 Mortgage servicing rights — 29,911 — 29,911 Servicing revenue — 25,916 — 25,916 Amortization of MSRs — (12,126) — (12,126) Property operating income 2,237 — — 2,237 Loss on derivative instruments, net (308) (4,695) — (5,003) Other income, net 325 — — 325 Total other revenue 2,254 60,304 — 62,558 Other expenses: Employee compensation and benefits 7,769 25,092 — 32,861 Selling and administrative 5,352 5,530 — 10,882 Property operating expenses 2,563 — — 2,563 Depreciation and amortization 503 1,338 — 1,841 Provision for loss sharing (net of recoveries) — 735 — 735 Total other expenses 16,187 32,695 — 48,882 Income before income from equity affiliates and income taxes 16,687 29,434 — 46,121 Income from equity affiliates 3,718 — — 3,718 Provision for income taxes — (6,623) — (6,623) Net income 20,405 22,811 — 43,216 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 7,363 7,363 Net income attributable to common stockholders $ 18,517 $ 22,811 $ (7,363) $ 33,965 Nine Months Ended September 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 228,243 $ 25,064 $ — $ 253,307 Interest expense 115,390 13,782 — 129,172 Net interest income 112,853 11,282 — 124,135 Other revenue: Gain on sales, including fee-based services, net — 60,566 — 60,566 Mortgage servicing rights — 96,708 — 96,708 Servicing revenue — 76,285 — 76,285 Amortization of MSRs — (36,129) — (36,129) Property operating income 3,976 — — 3,976 Loss on derivative instruments, net (3,176) (55,676) — (58,852) Other income, net 3,347 57 — 3,404 Total other revenue 4,147 141,811 — 145,958 Other expenses: Employee compensation and benefits 28,880 72,772 — 101,652 Selling and administrative 12,647 16,366 — 29,013 Property operating expenses 4,778 — — 4,778 Depreciation and amortization 1,845 3,985 — 5,830 Provision for loss sharing (net of recoveries) — 21,706 — 21,706 Provision for credit losses (net of recoveries) 58,383 1,127 — 59,510 Total other expenses 106,533 115,956 — 222,489 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 10,467 37,137 — 47,604 Loss on extinguishment of debt (3,546) — — (3,546) Loss on sale of real estate (1,868) — — (1,868) Income from equity affiliates 56,758 — — 56,758 Provision for income taxes (9,337) (6,156) — (15,493) Net income 52,474 30,981 — 83,455 Preferred stock dividends 5,665 — — 5,665 Net income attributable to noncontrolling interest — — 11,012 11,012 Net income attributable to common stockholders $ 46,809 $ 30,981 $ (11,012) $ 66,778 Nine Months Ended September 30, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 215,782 $ 18,175 $ — $ 233,957 Interest expense 126,182 12,031 — 138,213 Net interest income 89,600 6,144 — 95,744 Other revenue: Gain on sales, including fee-based services, net — 51,897 — 51,897 Mortgage servicing rights — 62,852 — 62,852 Servicing revenue — 76,685 — 76,685 Amortization of MSRs — (36,731) — (36,731) Property operating income 8,187 — — 8,187 Loss on derivative instruments, net (668) (6,058) — (6,726) Other income, net 1,314 — — 1,314 Total other revenue 8,833 148,645 — 157,478 Other expenses: Employee compensation and benefits 23,048 70,599 — 93,647 Selling and administrative 15,101 16,021 — 31,122 Property operating expenses 7,649 — — 7,649 Depreciation and amortization 1,524 4,139 — 5,663 Impairment loss on real estate owned 1,000 — — 1,000 Provision for loss sharing (net of recoveries) — 1,557 — 1,557 Total other expenses 48,322 92,316 — 140,638 Income before extinguishment of debt, income from equity affiliates and income taxes 50,111 62,473 — 112,584 Loss on extinguishment of debt (128) — — (128) Income from equity affiliates 9,133 — — 9,133 Provision for income taxes — (10,963) — (10,963) Net income 59,116 51,510 — 110,626 Preferred stock dividends 5,665 — — 5,665 Net income attributable to noncontrolling interest — — 19,429 19,429 Net income attributable to common stockholders $ 53,451 $ 51,510 $ (19,429) $ 85,532 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. September 30, 2020 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 103,655 $ 88,549 $ 192,204 Restricted cash 103,412 6,851 110,263 Loans and investments, net 4,910,872 — 4,910,872 Loans held-for-sale, net — 631,138 631,138 Capitalized mortgage servicing rights, net — 335,235 335,235 Securities held-to-maturity, net 20,000 98,260 118,260 Investments in equity affiliates 82,322 — 82,322 Goodwill and other intangible assets 12,500 94,216 106,716 Other assets 154,509 47,699 202,208 Total assets $ 5,387,270 $ 1,301,948 $ 6,689,218 Liabilities: Debt obligations $ 4,468,886 $ 567,551 $ 5,036,437 Allowance for loss-sharing obligations — 71,160 71,160 Other liabilities 194,289 64,096 258,385 Total liabilities $ 4,663,175 $ 702,807 $ 5,365,982 December 31, 2019 Assets: Cash and cash equivalents $ 264,468 $ 35,219 $ 299,687 Restricted cash 208,926 1,949 210,875 Loans and investments, net 4,189,960 — 4,189,960 Loans held-for-sale, net — 861,360 861,360 Capitalized mortgage servicing rights, net — 286,420 286,420 Securities held-to-maturity, net 20,000 68,699 88,699 Investments in equity affiliates 41,800 — 41,800 Goodwill and other intangible assets 12,500 98,200 110,700 Other assets 118,175 31,484 149,659 Total assets $ 4,855,829 $ 1,383,331 $ 6,239,160 Liabilities: Debt obligations $ 3,878,343 $ 743,595 $ 4,621,938 Allowance for loss-sharing obligations — 34,648 34,648 Other liabilities 171,004 55,543 226,547 Total liabilities $ 4,049,347 $ 833,786 $ 4,883,133 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Origination Data: Structured Business New loan originations (1) $ 291,758 $ 541,474 $ 1,448,468 $ 1,971,872 Loan payoffs / paydowns 206,028 456,847 640,494 1,239,449 (1) We committed to fund two SFR build-to-rent bridge loans totaling $75.3 million in the third quarter of 2020. Agency Business Origination Volumes by Investor: Fannie Mae $ 1,117,679 $ 1,097,095 $ 2,839,833 $ 2,581,958 Freddie Mac 252,014 203,981 587,445 631,324 FHA 100,345 — 193,821 44,668 Private Label 5,840 80,740 337,307 80,740 CMBS/Conduit — 34,000 — 211,325 Total $ 1,475,878 $ 1,415,816 $ 3,958,406 $ 3,550,015 Total loan commitment volume $ 1,528,551 $ 1,477,436 $ 4,002,492 $ 3,626,528 Loan Sales Data: Agency Business Fannie Mae $ 1,038,053 $ 1,141,780 $ 2,856,020 $ 2,556,781 Private Label — — 727,154 — Freddie Mac 116,628 262,735 468,019 663,053 FHA 64,781 49,915 118,218 82,085 CMBS/Conduit — 34,000 — 211,324 Total $ 1,219,462 $ 1,488,430 $ 4,169,411 $ 3,513,243 Sales margin (fee-based services as a % of loan sales) 1.63 % 1.43 % 1.45 % 1.48 % MSR rate (MSR income as a % of loan commitments) 2.77 % 2.02 % 2.42 % 1.73 % September 30, 2020 Wtd. Avg. Servicing Wtd. Avg. Life of UPB of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio (basis points) (in years) Fannie Mae $ 16,462,041 51.6 8.4 Freddie Mac 4,687,197 28.8 10.4 Private Label 727,063 20.0 9.4 FHA 685,263 17.1 20.4 Total $ 22,561,564 44.8 9.2 December 31, 2019 Fannie Mae $ 14,832,844 49.3 7.8 Freddie Mac 4,534,714 30.0 10.6 FHA 691,519 15.4 18.7 Total $ 20,059,077 43.8 8.8 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2019 Annual Report. |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant inter-company transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. During the nine months ended September 30, 2020, there has been a global outbreak of COVID-19, which has forced many countries, including the United States, to declare national emergencies, to institute "stay-at-home" orders, to close financial markets and to restrict operations of non-essential businesses. Such actions are creating significant disruptions in global supply chains, and adversely impacting many industries. COVID-19 has had, and may continue to have, a prolonged adverse impact on economic and market conditions, which could lead to an extended period of global economic slowdown. The impact of COVID-19 on companies is evolving rapidly, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results could differ from those estimates. |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. The net gain/loss from changes in fair value of derivative instruments previously recorded to other income, net is now recorded to loss on derivative instruments, net. These reclassifications had no effect on the previously reported net income. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Credit Losses On January 1, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which utilizes a current expected credit loss methodology (“CECL”) for the recognition of credit losses for our structured loans and investments, held-to-maturity debt securities and our loss-sharing obligations related to the Fannie Mae DUS program, at the time the financial asset is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected credit losses. This methodology replaces the multiple existing impairment methods in GAAP and generally requires that a loss be incurred before it is recognized. We adopted ASU 2016-13 using the modified retrospective method, therefore, the results for reporting periods prior to January 1, 2020 are unadjusted and reported in accordance with previously applicable GAAP. In connection with the adoption of ASU 2016-13, we recorded a $28.6 million increase to accumulated deficit, which was net of a deferred tax asset of $3.6 million at January 1, 2020. The following table illustrates the impact of adopting January 1, 2020 As Reported Under As Reported Impact of ASU 2016-13 Pre-Adoption Adoption Assets: Allowance for credit losses: Structured loans and investments (1) $ 88,363 $ 71,069 $ 17,294 Held-to-maturity debt securities 501 — 501 Deferred tax assets 27,307 23,713 3,594 Liabilities: Allowance for loss-sharing obligations 16,847 2,441 14,406 (1) See Note 3 for details by asset class. Other Accounting Pronouncements Adopted Description Adoption Date Effect on Financial Statements In November 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest and requires companies to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required under GAAP). First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with changes between hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. Early adoption is permitted upon issuance of the update. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. This ASU eliminates step two from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value with the carrying amount of goodwill. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40), which includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity's own equity. The guidance also simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models in Subtopic 470-20 and requires entities to use the "if-converted" method when calculating diluted earnings per share for convertible instruments. First quarter of 2022, with early adoption permitted beginning in the first quarter of 2021 We are currently evaluating the timing of our adoption and the impact this guidance may have on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022 We have not adopted any of the optional expedients or exceptions through September 30, 2020 Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2019 Annual Report for a description of our significant accounting policies. Upon the adoption of ASU 2016-13 on January 1, 2020, we adjusted certain significant accounting policies, as follows: Allowance for Credit Losses. Our method for calculating the estimate of expected credit loss takes into account historical experience and current conditions for similar loans and reasonable and supportable forecasts about the future. The reasonable and supportable forecast period is determined based on our assessment of the most likely scenario of assumptions and plausible outcomes for the US economy, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect our loss experience. We regularly evaluate the reasonable and supportable forecast period to determine if a change is needed. Beyond our reasonable and supportable forecast period, we generally revert to historical loss information over the remaining loan/asset period, taken from a period that most accurately reflects the expectation of conditions expected to exist during the period of reversion. We may make adjustments to historical loss information for differences in risk that may not reflect the characteristics of our current portfolio, including but not limited to, loan-to-value and debt service coverage ratios, among other relevant factors. The method of reversion selected represents the best estimate of the collectability of the investments and is reevaluated each reporting period. We generally expect to use an average historical loss for reversion, utilizing an immediate or straight line method for the remaining life of the investments. We also perform a qualitative assessment beyond model estimates, and apply qualitative adjustments as necessary. Our qualitative analysis includes a review of data that may directly impact our estimates including internal and external information about the loan or property including current market conditions, asset specific conditions, property operations or borrower/sponsor details (i.e. refinance, sale, bankruptcy) which allows us to more accurately and reasonably determine the amount of the expected loss for these investments. We also evaluate the contractual life of our assets to determine if changes are needed for contractual extension options, renewals, modifications and prepayments. To the extent possible, we estimate our allowance for credit losses using a pooling approach for homogeneous assets with similar risk characteristics with the goal of enhancing the precision of their estimate. If particular assets no longer display risk characteristics that are similar to those of the pool, we may decide to revise our pools or perform an individual assessment of expected credit losses. If it is determined that a foreclosure is probable, or we expect repayment through the operation or sale of the collateral and the borrower is experiencing financial difficulty, we calculate expected credit losses based on the fair value of the collateral as of the reporting date. During the loan review process, if we determine that it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of a loan, we consider that loan impaired. We evaluate the capitalization and market discount rates, as well as the borrower's operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. We may also obtain a third party appraisal, which may value the collateral through an "as-is" or "stabilized value" methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, we record a specific allowance for credit losses with a corresponding charge to the provision for credit losses, and remove the impaired loan from the CECL analysis described above. If the loan modification constitutes a concession whereas we do not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by us to be a troubled debt restructuring. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current. The allowance for credit losses on a troubled debt restructuring is measured using the same method as all other loans held for investment. Charge-offs to the allowance for credit losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which we grant a concession to a borrower or agree to a discount in full or partial satisfaction of the loan; when we take ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. Loss on restructured loans is recorded when we have granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when we incur costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, we record our investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. In addition, a gain or loss may be recorded upon the sale of a loan to a third party in the consolidated statements of operations in the period in which the loan was sold. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation and Significant Accounting Policies | |
Schedule of impact of adopting ASU 2016-13 | The following table illustrates the impact of adopting January 1, 2020 As Reported Under As Reported Impact of ASU 2016-13 Pre-Adoption Adoption Assets: Allowance for credit losses: Structured loans and investments (1) $ 88,363 $ 71,069 $ 17,294 Held-to-maturity debt securities 501 — 501 Deferred tax assets 27,307 23,713 3,594 Liabilities: Allowance for loss-sharing obligations 16,847 2,441 14,406 (1) See Note 3 for details by asset class. |
Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Description Adoption Date Effect on Financial Statements In November 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. This ASU amends the guidance for determining whether a decision-making fee is a variable interest and requires companies to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required under GAAP). First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with changes between hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. Early adoption is permitted upon issuance of the update. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. This ASU eliminates step two from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value with the carrying amount of goodwill. First quarter of 2020 The adoption of this guidance did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40), which includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity's own equity. The guidance also simplifies the accounting for convertible instruments which include beneficial conversion features or cash conversion features by removing certain separation models in Subtopic 470-20 and requires entities to use the "if-converted" method when calculating diluted earnings per share for convertible instruments. First quarter of 2022, with early adoption permitted beginning in the first quarter of 2021 We are currently evaluating the timing of our adoption and the impact this guidance may have on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022 We have not adopted any of the optional expedients or exceptions through September 30, 2020 |
Loans and Investments (Tables)
Loans and Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans and Investments | |
Schedule of Structured Business loan and investment portfolio | Our Structured Business loan and investment portfolio consists of ($ in thousands): Wtd. Avg. Remaining Wtd. Avg. Wtd. Avg. Percent of Loan Wtd. Avg. Months to First Dollar Last Dollar September 30, 2020 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 4,648,098 91 % 234 5.24 % 15.5 0 % 77 % Preferred equity investments 216,882 4 % 12 7.03 % 53.2 66 % 89 % Mezzanine loans 171,148 4 % 29 7.52 % 45.2 31 % 81 % Other (5) 60,759 1 % 20 4.89 % 79.9 0 % 70 % 5,096,887 100 % 295 5.39 % 18.9 4 % 78 % Allowance for credit losses (146,745) Unearned revenue (39,270) Loans and investments, net $ 4,910,872 December 31, 2019 Bridge loans (4) $ 3,836,832 90 % 217 5.77 % 18.0 0 % 75 % Preferred equity investments 181,058 4 % 10 7.62 % 68.8 69 % 89 % Mezzanine loans 191,575 4 % 24 9.70 % 36.7 22 % 73 % Other (5) 70,146 2 % 21 2.88 % 84.8 0 % 70 % 4,279,611 100 % 272 5.98 % 22.1 4 % 76 % Allowance for credit losses (71,069) Unearned revenue (18,582) Loans and investments, net $ 4,189,960 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of September 30, 2020 and December 31, 2019, bridge loans included 9 and 11, respectively, single-family rental loans with an aggregate UPB of $150.8 million and $66.7 million, respectively, of which $53.7 million and $30.0 million, respectively, was funded. (5) As of September 30, 2020 and December 31, 2019, other included 20 and 12 , respectively, single-family rental permanent loans with an aggregate UPB of $60.8 million and $41.6 million, respectively, and, at December 31, 2019, there were 9 purchased loans with an aggregate UPB of $28.6 million. |
Summary of the loan portfolio's internal risk ratings and LTV ratios by asset class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of September 30, 2020 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2020 2019 2018 2017 2016 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 646,448 $ 354,257 $ 19,300 $ 47,100 $ — $ 853 $ 1,067,958 Pass/Watch 512,494 1,108,036 139,300 159,000 — 28,800 1,947,630 Special Mention 34,548 587,393 150,903 117,800 — — 890,644 Substandard — 42,100 66,546 34,200 8,250 — 151,096 Total Multifamily $ 1,193,490 $ 2,091,786 $ 376,049 $ 358,100 $ 8,250 $ 29,653 $ 4,057,328 4 % 77 % Land: Percentage of portfolio 80 % Special Mention $ 71,018 $ 19,523 $ — $ 19,975 $ — $ — $ 110,516 Substandard — — — — — 127,928 127,928 Total Land $ 71,018 $ 19,523 $ — $ 19,975 $ — $ 127,928 $ 238,444 0 % 92 % Healthcare: Percentage of portfolio 5 % Pass $ — $ 6,600 $ 10,000 $ — $ — $ — $ 16,600 Pass/Watch — — — 41,650 — — 41,650 Special Mention — 65,819 51,500 — — — 117,319 Substandard — 8,500 — — — — 8,500 Doubtful — — — 4,625 — — 4,625 Total Healthcare $ — $ 80,919 $ 61,500 $ 46,275 $ — $ — $ 188,694 0 % 79 % Student Housing: Percentage of portfolio 4 % Special Mention $ — $ 44,500 $ 3,350 $ — $ — $ — $ 47,850 Substandard 23,500 — 13,000 67,250 — — 103,750 Total Student Housing $ 23,500 $ 44,500 $ 16,350 $ 67,250 $ — $ — $ 151,600 12 % 79 % Hotel: Percentage of portfolio 3 % Substandard $ 60,000 $ 91,000 $ — $ — $ — $ — $ 151,000 Total Hotel $ 60,000 $ 91,000 $ — $ — $ — $ — $ 151,000 0 % 90 % Office: Percentage of portfolio 3 % Pass $ — $ — $ 5,000 $ — $ — $ — $ 5,000 Pass/Watch 35,410 — — — — — 35,410 Special Mention — — 42,799 43,151 — 9,681 95,631 Doubtful — — — — — 880 880 Total Office $ 35,410 $ — $ 47,799 $ 43,151 $ — $ 10,561 $ 136,921 3 % 80 % Single-Family Rental: Percentage of portfolio 3 % Pass $ 29,804 $ 34,640 $ — $ — $ — $ — $ 64,444 Pass/Watch 1,611 38,061 — — — — 39,672 Special Mention 10,351 — — — — — 10,351 Total Single-Family Rental $ 41,766 $ 72,701 $ — $ — $ — $ — $ 114,467 0 % 64 % Other: Percentage of portfolio 1 % Pass $ — $ 4,000 $ — $ 3,574 $ — $ — $ 7,574 Pass/Watch — — 9,000 10,006 — — 19,006 Special Mention — — 26,600 — — — 26,600 Substandard — — — — — 3,553 3,553 Doubtful — — — — — 1,700 1,700 Total Other $ — $ 4,000 $ 35,600 $ 13,580 $ — $ 5,253 $ 58,433 7 % 65 % Percentage of portfolio 1 % Grand Total $ 1,425,184 $ 2,404,429 $ 537,298 $ 548,331 $ 8,250 $ 173,395 $ 5,096,887 4 % 78 % |
Summary of the changes in the allowance for credit losses for our loan portfolio | A summary of the changes in the allowance for credit losses is as follows (in thousands): Three Months Ended September 30, 2020 Land Multifamily Retail Office Hotel Student Housing Healthcare Other Total Allowance for credit losses: Beginning balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 7,672 $ 4,110 $ 3,930 $ 1,886 $ 152,811 Provision for credit losses (net of recoveries) (84) 103 (40) (6,589) (133) 675 (21) 23 (6,066) Ending balance $ 78,010 $ 34,709 $ 13,941 $ 1,943 $ 7,539 $ 4,785 $ 3,909 $ 1,909 $ 146,745 Three Months Ended September 30, 2019 Allowance for credit losses $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 Nine Months Ended September 30, 2020 Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 Impact of adopting CECL - January 1, 2020 77 16,322 335 287 29 68 64 112 17,294 Provision for credit losses (net of recoveries) 10,064 18,387 13,606 156 7,510 4,717 3,845 97 58,382 Ending balance $ 78,010 $ 34,709 $ 13,941 $ 1,943 $ 7,539 $ 4,785 $ 3,909 $ 1,909 $ 146,745 Nine Months Ended September 30, 2019 Allowance for credit losses $ 67,869 $ — $ — $ 1,500 $ — $ — $ — $ 1,700 $ 71,069 |
Summary of our loans considered impaired by asset class | September 30, 2020 Wtd. Avg. First Wtd. Avg. Last Carrying Allowance for Dollar LTV Dollar LTV Asset Class UPB (1) Value Credit Losses Ratio Ratio Land $ 134,215 $ 127,378 $ 77,869 0 % 98 % Hotel 110,000 89,216 7,500 0 % 94 % Retail 30,154 28,774 13,926 11 % 74 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,181 2,181 1,500 0 % 73 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,875 $ 253,922 $ 106,340 0 % 87 % December 31, 2019 Land $ 134,215 $ 126,800 $ 67,869 0 % 97 % Office 2,226 2,226 1,500 0 % 78 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 138,141 $ 130,726 $ 71,069 1 % 96 % (1) Represents the UPB of ten and five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2020 and December 31, 2019, respectively. |
Summary of our non-performing loans by asset class | A summary of our non-performing loans by asset class is as follows (in thousands): September 30, 2020 December 31, 2019 Less Than Greater Than Less Than Greater Than 90 Days 90 Days 90 Days 90 Days UPB Past Due Past Due UPB Past Due Past Due Student Housing $ 36,500 $ — $ 36,500 $ — $ — $ — Multifamily 17,700 — 17,700 — — — Healthcare 4,625 — 4,625 — — — Retail 3,553 — 3,553 1,000 — 1,000 Commercial 1,700 — 1,700 1,700 — 1,700 Office 880 — 880 880 — 880 Total $ 64,958 $ — $ 64,958 $ 3,580 $ — $ 3,580 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans Held-for-Sale, Net | |
Summary of loans held-for-sale, net | September 30, 2020 December 31, 2019 Fannie Mae $ 392,343 $ 408,534 Freddie Mac 155,729 36,303 FHA 58,546 1,082 Private Label 11,302 401,207 617,920 847,126 Fair value of future MSR 14,577 16,519 Unearned discount (1,359) (2,285) Loans held-for-sale, net $ 631,138 $ 861,360 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Capitalized Mortgage Servicing Rights | |
Summary of capitalized MSR activity | A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Originated Acquired Total Originated Acquired Total Beginning balance $ 260,452 $ 52,836 $ 313,288 $ 221,901 $ 64,519 $ 286,420 Additions 37,403 — 37,403 97,554 — 97,554 Amortization (8,811) (3,605) (12,416) (24,425) (11,704) (36,129) Write-downs and payoffs (2,081) (959) (3,040) (8,067) (4,543) (12,610) Ending balance $ 286,963 $ 48,272 $ 335,235 $ 286,963 $ 48,272 $ 335,235 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 197,156 $ 79,492 $ 276,648 $ 176,686 $ 97,084 $ 273,770 Additions 25,945 — 25,945 62,477 — 62,477 Amortization (7,084) (5,041) (12,125) (20,229) (16,502) (36,731) Write-downs and payoffs (3,772) (3,008) (6,780) (6,689) (9,139) (15,828) Ending balance $ 212,245 $ 71,443 $ 283,688 $ 212,245 $ 71,443 $ 283,688 |
Schedule of expected amortization of capitalized MSRs recorded | The expected amortization of capitalized MSRs recorded as of September 30, 2020 is as follows (in thousands): Year Amortization 2020 (three months ending 12/31/2020) $ 12,869 2021 49,613 2022 45,577 2023 41,522 2024 37,388 2025 34,236 Thereafter 114,030 Total $ 335,235 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
MSRs | |
Concentration Risk [Line Items] | |
Schedule of product and geographic concentrations in servicing revenue | Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): September 30, 2020 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 16,462,041 73 % Texas 17 % Freddie Mac 4,687,197 21 % New York 9 % Private Label (2) 727,063 3 % North Carolina 9 % FHA 685,263 3 % California 8 % Total $ 22,561,564 100 % Florida 7 % Georgia 6 % Other (3) 44 % Total 100 % December 31, 2019 Fannie Mae $ 14,832,844 74 % Texas 19 % Freddie Mac 4,534,714 23 % North Carolina 9 % FHA 691,519 3 % New York 9 % Total $ 20,059,077 100 % California 9 % Florida 6 % Georgia 6 % Other (3) 42 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) Represents loans we service in connection with our Private Label securitization in May 2020 (see Note 4 for details). (3) No other individual state represented 4% or more of the total. |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Securities Held-to-Maturity | |
Schedule of securities held-to-maturity | A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain/(Loss) Fair Value Credit Losses September 30, 2020 B Piece bonds $ 80,929 $ 60,662 $ 953 $ 61,615 $ 861 APL certificates 63,627 37,598 (2,012) 35,586 767 SFR bonds 20,000 20,000 (1,588) 18,412 — Total $ 164,556 $ 118,260 $ (2,647) $ 115,613 $ 1,628 December 31, 2019 B Piece bonds $ 91,028 $ 68,699 $ 2,965 $ 71,664 $ — SFR bonds 20,000 20,000 74 20,074 — Total $ 111,028 $ 88,699 $ 3,039 $ 91,738 $ — |
Schedule of changes in the allowance for credit losses | A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands): Three Months Ended September 30, 2020 APL B Piece Certificates Bonds Total Beginning balance $ 2,079 $ 1,069 $ 3,148 Provision for credit loss expense (1,312) (208) (1,520) Ending balance $ 767 $ 861 $ 1,628 Nine Months Ended September 30, 2020 APL B Piece Total Beginning balance, prior to adoption of CECL $ — $ — $ — Impact of adopting CECL - January 1, 2020 — 501 501 Provision for credit loss expense 767 360 1,127 Ending balance $ 767 $ 861 $ 1,628 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments in Equity Affiliates | |
Summary of the company's investments in equity affiliates | A summary of our investments in equity affiliates is as follows (in thousands): UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates September 30, 2020 December 31, 2019 September 30, 2020 Arbor Residential Investor LLC $ 67,783 $ 26,520 $ — AMAC Holdings III LLC 9,746 10,520 — North Vermont Avenue 2,473 2,440 — Lightstone Value Plus REIT L.P 1,895 1,895 — JT Prime 425 425 — West Shore Café — — 1,687 Lexford Portfolio — — — East River Portfolio — — — Total $ 82,322 $ 41,800 $ 1,687 |
Summary of statements of income for the Company's investment in ARI | Summarized statements of income for our investment in ARI are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Statements of Income: Total revenues $ 1,050,946 $ 335,610 Total expenses 665,552 294,660 Net income $ 385,394 $ 40,950 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate Owned | |
Schedule of real estate owned | A summary of our real estate assets is as follows (in thousands): September 30, 2020 December 31, 2019 Office Hotel Office Building Property Building Total Land $ 4,509 $ 3,294 $ 4,509 $ 7,803 Building and intangible assets 2,010 31,541 2,010 33,551 Less: (2,500) (14,307) (2,500) (16,807) Less: (1,125) (10,320) (1,007) (11,327) Real estate owned, net $ 2,894 $ 10,208 $ 3,012 $ 13,220 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Obligations | |
Schedule of face value, unamortized discount and net carrying value of the liability and equity components | The UPB, unamortized discount and net carrying amount of the liability and equity components of our convertible notes are as follows (in thousands): Liability Equity Component Component Unamortized Debt Unamortized Deferred Net Carrying Net Carrying Period UPB Discount Financing Fees Value Value September 30, 2020 $ 278,490 $ 6,439 $ 5,345 $ 266,706 $ 9,962 December 31, 2019 $ 300,914 $ 9,235 $ 7,527 $ 284,152 $ 9,962 |
Schedule of senior unsecured notes | A summary of our senior unsecured notes is as follows (in thousands): Senior September 30, 2020 December 31, 2019 Unsecured Issuance Carrying Wtd. Avg. Carrying Wtd. Avg. Notes Date Maturity UPB Value (1) Rate (2) UPB Value (1) Rate (2) 8.00% Notes (3) Apr. 2020 Apr. 2023 $ 70,750 $ 69,691 8.00 % $ — $ — — 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 271,873 4.50 % — — — 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 108,580 4.75 % 110,000 108,370 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 88,655 5.75 % 90,000 88,369 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 123,490 5.63 % 125,000 123,060 5.63 % $ 670,750 $ 662,289 5.29 % $ 325,000 $ 319,799 5.44 % (1) At September 30, 2020 and December 31, 2019, the carrying value is net of deferred financing fees of $8.5 million and $5.2 million, respectively. (2) At September 30, 2020 and December 31, 2019, the aggregate weighted average note rate, including certain fees and costs, was 5.65% and 5.82% , respectively. (3) These notes can be redeemed by us prior to three months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a "make-whole" premium and accrued and unpaid interest. We have the right to redeem the notes three months prior to or after the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. (4) These notes can be redeemed by us at any time prior to the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes on or after the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. |
Credit Facilities and Repurchase Agreements | |
Debt Obligations | |
Schedule of borrowings | Borrowings under our credit facilities and repurchase agreements are as follows ($ in thousands): September 30, 2020 December 31, 2019 Debt Collateral Debt Collateral Current Extended Carrying Carrying Wtd. Avg. Carrying Carrying Wtd. Avg. Maturity Maturity Note Rate Value (1) Value Note Rate Value (1) Value Note Rate Structured Business $500 million joint repurchase facility (2) Mar. 2022 N/A L + 1.75 % to 3.50 % $ 315,181 $ 485,250 2.82 % $ 224,658 $ 339,378 4.06 % $400 million repurchase facility June. 2021 Mar. 2023 L + 2.20 %; L floor 0.75 % 180,642 254,068 2.99 % 218,418 291,292 3.76 % $200 million repurchase facility Sept. 2021 N/A L + 2.40 % to 3.00 %; L floor 0.25 % 58,112 70,377 2.71 % 40,530 48,086 4.22 % $149.6 million loan specific credit facilities Nov. 2020 to May 2022 June 2021 to Dec. 2021 L + 2.20 % to 2.50 %; 3.50 % 149,377 200,549 2.68 % 133,528 190,716 4.14 % $100 million credit facility July 2021 N/A L+ 2.30 % to 3.00 %; L floor 0.50 % 25,633 32,079 1.92 % 4,570 7,000 3.56 % $100 million repurchase facility Sept. 2021 N/A L + 1.75 % to 2.50 %; L floor 0.50 % 50,309 66,486 1.92 % 45,843 63,800 3.56 % $50 million credit facility April 2021 April 2022 L + 2.00 % 24,785 32,300 2.18 % 14,933 17,650 3.81 % $50 million credit facility Oct. 2022 Oct. 2023 L + 2.50 %; 4.00 % all in floor rate 23,414 31,374 4.06 % 12,191 16,499 4.32 % $25 million credit facility June 2022 June 2023 L + 2.25 % 10,894 17,022 2.43 % 19,651 28,572 4.07 % $25 million working capital facility Nov. 2020 N/A L + 2.25 % — — — — — — $1.8 million master security agreements Dec. 2022 N/A 2.97 % to 4.60 % 1,815 — 4.14 % 3,267 — 4.08 % Repurchase facilities - securities (3) N/A N/A L + 2.25 % to 5.00 % 42,226 — 4.72 % 217,105 — 3.90 % Structured Business total $ 882,388 $ 1,189,505 2.85 % $ 934,694 $ 1,002,993 3.94 % Agency Business $750 million ASAP agreement N/A N/A L + 1.05 %; L floor 0.35 % $ 163,851 $ 163,851 1.40 % $ 148,725 $ 148,725 2.81 % $600 million joint repurchase facility Mar. 2021 Mar. 2022 L + 2.50 % to 2.75 % 6,927 11,302 2.77 % 299,824 300,446 3.26 % $300 million repurchase facility (4) Oct. 2020 N/A L + 1.15 % 160,398 183,177 1.30 % 187,698 187,742 2.91 % $150 million credit facility Mar. 2021 N/A L + 1.15 % 54,586 77,676 1.30 % 89,657 89,673 2.91 % $150 million credit facility July 2021 N/A L + 1.40 %; L floor 0.25 % 117,413 117,537 1.65 % 17,690 17,792 2.91 % $100 million credit facility June 2021 N/A L + 1.15 %; L floor 0.50 % 64,377 64,377 1.65 % — — — Agency Business total $ 567,552 $ 617,920 2.98 % $ 743,594 $ 744,378 3.03 % Consolidated total $ 1,449,940 $ 1,807,425 2.90 % $ 1,678,288 $ 1,747,371 3.54 % (1) The debt carrying value for the Structured Business at September 30, 2020 and December 31, 2019 was net of unamortized deferred finance costs of $3.5 million and $2.1 million, respectively. The debt carrying value for the Agency Business at September 30, 2020 and December 31, 2019 was net of unamortized deferred finance costs of $0.9 million and $0.2 million, respectively. (2) This facility includes a LIBOR floor equal to 75 % of the LIBOR floors included in our originated loans. (3) These repurchase facilities are subject to margin call provisions associated with changes in interest spreads. As of September 30, 2020 and December 31, 2019, these facilities were collateralized by our CLO bonds retained and consolidated by us with a principal balance of $275.7 million and $234.9 million, respectively, B Piece bonds held-to-maturity with a carrying value of $60.7 million and $68.7 million, respectively, and SFR bonds with a carrying value of $20.0 million at both September 30, 2020 and December 31, 2019. During the nine months ended September 30, 2020, we significantly reduced the UPB of these facilities by $175.0 million to $42.2 million through a debt restructuring and the use of proceeds from our senior notes issued in the second quarter of 2020. (4) This facility was amended in October 2020 to increase the facility to $400.0 million, extend the maturity to October 2021 and increase the interest rate to LIBOR plus 150 basis points. |
CLOs | |
Debt Obligations | |
Schedule of borrowings | Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted September 30, 2020 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO XIII $ 668,000 $ 663,506 1.58 % $ 764,080 $ 760,847 $ 21 CLO XII 534,193 530,361 1.67 % 613,702 611,790 9,210 CLO XI 533,000 529,554 1.61 % 632,441 630,452 414 CLO X 441,000 438,169 1.62 % 520,153 518,537 32,276 CLO IX 356,400 354,442 1.53 % 473,158 471,970 3,369 Total CLOs $ 2,532,593 $ 2,516,032 1.61 % $ 3,003,534 $ 2,993,596 $ 45,290 December 31, 2019 CLO XII $ 534,193 $ 529,448 3.30 % $ 596,366 $ 593,652 $ 17,800 CLO XI 533,000 528,690 3.25 % 624,443 621,508 15,550 CLO X 441,000 437,391 3.26 % 509,887 507,854 37,287 CLO IX 356,400 353,473 3.17 % 407,696 406,463 47,230 CLO VIII 282,874 281,119 3.12 % 359,186 357,914 544 Total CLOs $ 2,147,467 $ 2,130,121 3.23 % $ 2,497,578 $ 2,487,391 $ 118,411 (1) Debt carrying value is net of $16.6 million and $17.3 million of deferred financing fees at September 30, 2020 and December 31, 2019, respectively. (2) At September 30, 2020 and December 31, 2019, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 1.94% and 3.63%, respectively. (3) As of September 30, 2020, there was one loan with a UPB of $16.6 million deemed at risk of default or a “credit risk” as defined by the CLO indenture, which we repurchased from the respective CLOs in October 2020. As of December 31, 2019, there was no collateral deemed a credit risk. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $58.1 million and $58.6 million at September 30, 2020 and December 31, 2019, respectively. |
Schedule of company's CLO compliance tests as of the most recent determination dates | Our CLO compliance tests as of the most recent determination dates in October 2020 are as follows: Cash Flow Triggers CLO IX CLO X CLO XI CLO XII CLO XIII Overcollateralization (1) Current 134.68 % 126.98 % 121.95 % 118.87 % 119.76 % Limit 133.68 % 125.98 % 120.95 % 117.87 % 118.76 % Pass / Fail Pass Pass Pass Pass Pass Interest Coverage (2) Current 522.55 % 445.37 % 403.28 % 377.12 % 371.60 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass Pass Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. |
Schedule of company's CLO overcollateralization ratios | Determination (1) CLO IX CLO X CLO XI CLO XII CLO XIII October 2020 134.68 % 126.98 % 121.95 % 118.87 % 119.76 % July 2020 134.68 % 126.98 % 121.95 % 118.87 % 119.76 % April 2020 134.68 % 126.98 % 121.95 % 118.87 % 119.76 % January 2020 134.68 % 126.98 % 121.95 % 118.87 % — October 2019 134.68 % 126.98 % 121.95 % — — (1) The table above represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented. |
Allowance for Loss-Sharing Ob_2
Allowance for Loss-Sharing Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Allowance for Loss-Sharing Obligations | |
Schedule of allowance for loss-sharing obligations related to Fannie Mae DUS program | Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning balance $ 73,220 $ 34,417 $ 34,648 $ 34,298 Impact of adopting CECL - January 1, 2020 — — 14,406 — Provisions for loss sharing (2,031) 1,326 22,538 3,880 Provisions reversal for loan repayments (196) (591) (832) (2,323) Recoveries (charge-offs), net 167 373 400 (330) Ending balance $ 71,160 $ 35,525 $ 71,160 $ 35,525 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Agency Business | |
Derivatives, Fair Value [Line Items] | |
Schedule of non-qualifying derivative financial instruments | A summary of our non-qualifying derivative financial instruments is as follows ($ in thousands): September 30, 2020 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Agency Business Rate Lock Commitments 14 $ 81,743 Other Assets/Other Liabilities $ 2,160 $ (110) Forward Sale Commitments 79 688,361 Other Assets/Other Liabilities 1,387 (742) Swap Futures 84 8,400 — — $ 778,504 $ 3,547 $ (852) Structured Business Swap Futures 345 $ 34,500 — — December 31, 2019 Agency Business Rate Lock Commitments 5 $ 37,657 Other Assets/Other Liabilities $ 1,066 $ (202) Forward Sale Commitments 79 483,576 Other Assets/Other Liabilities 369 (2,895) Swap Futures 3,274 327,400 — — $ 848,633 $ 1,435 $ (3,097) Structured Business Swap Futures 271 $ 27,100 — — |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value | |
Schedule of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | September 30, 2020 December 31, 2019 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 5,096,887 $ 4,910,872 $ 5,033,017 $ 4,279,611 $ 4,189,960 $ 4,228,071 Loans held-for-sale, net 617,920 631,138 641,616 847,126 861,360 876,975 Capitalized mortgage servicing rights, net n/a 335,235 363,819 n/a 286,420 328,995 Securities held-to-maturity, net 164,556 118,260 115,613 111,028 88,699 91,738 Derivative financial instruments 394,432 3,547 3,547 173,532 1,435 1,435 Financial liabilities: Credit and repurchase facilities $ 1,454,419 $ 1,449,940 $ 1,451,759 $ 1,681,146 $ 1,678,288 $ 1,677,658 Collateralized loan obligations 2,532,593 2,516,032 2,478,949 2,147,467 2,130,121 2,147,944 Senior unsecured notes 670,750 662,289 650,235 325,000 319,799 331,225 Convertible senior unsecured notes, net 278,490 266,706 264,803 300,914 284,152 310,778 Junior subordinated notes 154,336 141,470 99,106 154,336 140,949 97,668 Derivative financial instruments 375,672 852 852 347,701 3,097 3,097 Debt fund — — — 70,000 68,629 70,138 |
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 3,547 $ 3,547 $ — $ 1,387 $ 2,160 Financial liabilities: Derivative financial instruments $ 852 $ 852 $ — $ 852 $ — |
Schedule of certain financial assets and financial liabilities measured at fair value on a nonrecurring basis | Fair Value Measurements Using Fair Net Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ 147,583 $ 147,583 $ — $ — $ 147,583 (1) We had an allowance for loan losses of $106.3 million relating to ten impaired loans with an aggregate carrying value, before loan loss reserves, of $253.9 million at September 30, 2020. |
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at September 30, 2020 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Hotel $ 81,716 Discounted cash flows / Discount rate 7.50 % direct capitalization Capitalization rate 5.00 % Revenue growth rate 25.00 % Land 49,510 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Retail 14,848 Discounted cash flows Discount rate 10.21 % Capitalization rate 9.25 % Revenue growth rate 1.76 % Healthcare 828 Discounted cash flows Capitalization rate 14.30 % Office 681 Discounted cash flows Discount rate 11.00 % Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 2,160 Discounted cash flows W/A discount rate 12.75 % |
Schedule of roll forward of Level 3 derivative instruments | Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivative assets and liabilities, net Beginning balance $ 549 $ 745 $ 1,066 $ 324 Settlements (40,746) (30,067) (95,614) (62,587) Realized gains recorded in earnings 40,197 29,322 94,548 62,263 Unrealized gains recorded in earnings 2,160 589 2,160 589 Ending balance $ 2,160 $ 589 $ 2,160 $ 589 |
Schedule of components of fair value and other relevant information | The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands): Notional/ Fair Value of Interest Rate Total Fair Value September 30, 2020 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 81,743 $ 2,160 $ (110) $ 2,050 Forward sale commitments 688,361 — 110 110 Loans held-for-sale, net (1) 617,920 14,704 — 14,704 Total $ 16,864 $ — $ 16,864 (1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs. |
Schedule of fair value of assets and liabilities | Fair Value Measurements Using Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ 4,910,872 $ 5,033,017 $ — $ — $ 5,033,017 Loans held-for-sale, net 631,138 641,616 — 626,912 14,704 Capitalized mortgage servicing rights, net 335,235 363,819 — — 363,819 Securities held-to-maturity, net 118,260 115,613 — — 115,613 Financial liabilities: Credit and repurchase facilities $ 1,449,940 $ 1,451,759 $ — $ 567,552 $ 884,207 Collateralized loan obligations 2,516,032 2,478,949 — — 2,478,949 Senior unsecured notes 662,289 650,235 650,235 — — Convertible senior unsecured notes, net 266,706 264,803 — 264,803 — Junior subordinated notes 141,470 99,106 — — 99,106 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of maturities of operating lease liabilities | Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2020 (three months ending December 31, 2020) $ 691,917 $ 1,327 $ 693,244 2021 710,547 4,861 715,408 2022 1,809,657 7,986 1,817,643 2023 938,641 7,754 946,395 2024 456,905 7,652 464,557 2025 18,334 7,696 26,030 Thereafter 464,587 34,041 498,628 Total $ 5,090,588 $ 71,317 $ 5,161,905 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities | |
Schedule of the assets and liabilities related to the consolidated CLOs and Debt Fund | The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands): September 30, 2020 December 31, 2019 Assets: Restricted cash $ 103,411 $ 208,467 Loans and investments, net 2,993,596 2,557,909 Other assets 15,748 18,380 Total assets $ 3,112,755 $ 2,784,756 Liabilities: Collateralized loan obligations $ 2,516,032 $ 2,130,121 Debt fund — 68,629 Other liabilities 2,713 10,849 Total liabilities $ 2,518,745 $ 2,209,599 |
Summary of the Company's variable interests in identified VIEs, of which the company is not the primary beneficiary | A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of September 30, 2020 is as follows (in thousands): Type Carrying Amount (1) Loans $ 481,422 B Piece and SFR bonds 81,523 APL certificates 38,365 Equity investments 12,219 Agency interest only strips 2,084 Total $ 615,613 (1) Represents the carrying amount of loans and investments before reserves. At September 30, 2020, $218.8 million of loans to VIEs had corresponding specific loan loss reserves of $86.9 million. The maximum loss exposure as of September 30, 2020 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity | |
Schedule of dividends declared by the Company (on a per share basis) | Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C February 13, 2020 $ 0.30 January 31, 2020 $ 0.515625 $ 0.484375 $ 0.53125 May 6, 2020 $ 0.30 May 1, 2020 $ 0.515625 $ 0.484375 $ 0.53125 July 29, 2020 $ 0.31 July 29, 2020 $ 0.515625 $ 0.484375 $ 0.53125 (1) The dividend declared on July 29, 2020 was for June 1, 2020 through August 31, 2020, the dividend declared on May 1, 2020 was for March 1, 2020 through May 31, 2020 and the dividend declared on January 31, 2020 was for December 1, 2019 through February 29, 2020. |
Schedule of reconciliation of the numerator and denominator of the basic and diluted EPS computations | Three Months Ended September 30, 2020 2019 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 81,997 $ 81,997 $ 33,965 $ 33,965 Net income attributable to noncontrolling interest (2) — 13,836 — 7,363 Net income attributable to common stockholders and noncontrolling interest $ 81,997 $ 95,833 $ 33,965 $ 41,328 Weighted average shares outstanding 113,766,446 113,766,446 94,486,839 94,486,839 Dilutive effect of OP Units (2) — 19,196,660 — 20,484,094 Dilutive effect of restricted stock units (3) — 1,029,668 — 1,427,329 Dilutive effect of convertible notes (4) — 4,313 — 1,069,782 Weighted average shares outstanding 113,766,446 133,997,087 94,486,839 117,468,044 Net income per common share (1) $ 0.72 $ 0.72 $ 0.36 $ 0.35 Nine Months Ended September 30, 2020 2019 Net income attributable to common stockholders (1) $ 66,778 $ 66,778 $ 85,532 $ 85,532 Net income attributable to noncontrolling interest (2) — 11,012 — 19,429 Net income attributable to common stockholders and noncontrolling interest $ 66,778 $ 77,790 $ 85,532 $ 104,961 Weighted average shares outstanding 111,775,436 111,775,436 89,899,074 89,899,074 Dilutive effect of OP Units (2) — 19,993,983 — 20,508,205 Dilutive effect of restricted stock units (3) — 600,648 — 1,405,776 Dilutive effect of convertible notes (4) — 31,248 — 1,220,913 Weighted average shares outstanding 111,775,436 132,401,315 89,899,074 113,033,968 Net income per common share (1) $ 0.60 $ 0.59 $ 0.95 $ 0.93 (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Mr. Kaufman is granted restricted stock units annually, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives. (4) The convertible senior unsecured notes impact diluted earnings per share if the average price of our common stock exceeds the conversion price, as calculated in accordance with the terms of the indenture. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Information | |
Schedule of statement of income and balance sheet by segment | Three Months Ended September 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 75,471 $ 6,230 $ — $ 81,701 Interest expense 35,252 2,636 — 37,888 Net interest income 40,219 3,594 — 43,813 Other revenue: Gain on sales, including fee-based services, net — 19,895 — 19,895 Mortgage servicing rights — 42,357 — 42,357 Servicing revenue — 25,764 — 25,764 Amortization of MSRs — (12,416) — (12,416) Property operating income 1,033 — — 1,033 Gain (loss) on derivative instruments, net 118 (871) — (753) Other income, net 1,050 — — 1,050 Total other revenue 2,201 74,729 — 76,930 Other expenses: Employee compensation and benefits 8,873 24,089 — 32,962 Selling and administrative 4,665 4,691 — 9,356 Property operating expenses 1,300 — — 1,300 Depreciation and amortization 598 1,324 — 1,922 Provision for loss sharing (net of recoveries) — (2,227) — (2,227) Provision for credit losses (net of recoveries) (6,065) (1,521) — (7,586) Total other expenses 9,371 26,356 — 35,727 Income before sale of real estate, income from equity affiliates and income taxes 33,049 51,967 — 85,016 Loss on sale of real estate (1,868) — — (1,868) Income from equity affiliates 32,358 — — 32,358 Provision for income taxes (6,494) (11,291) — (17,785) Net income 57,045 40,676 — 97,721 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 13,836 13,836 Net income attributable to common stockholders $ 55,157 $ 40,676 $ (13,836) $ 81,997 Three Months Ended September 30, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 73,829 $ 6,680 $ — $ 80,509 Interest expense 43,209 4,855 — 48,064 Net interest income 30,620 1,825 — 32,445 Other revenue: Gain on sales, including fee-based services, net — 21,298 — 21,298 Mortgage servicing rights — 29,911 — 29,911 Servicing revenue — 25,916 — 25,916 Amortization of MSRs — (12,126) — (12,126) Property operating income 2,237 — — 2,237 Loss on derivative instruments, net (308) (4,695) — (5,003) Other income, net 325 — — 325 Total other revenue 2,254 60,304 — 62,558 Other expenses: Employee compensation and benefits 7,769 25,092 — 32,861 Selling and administrative 5,352 5,530 — 10,882 Property operating expenses 2,563 — — 2,563 Depreciation and amortization 503 1,338 — 1,841 Provision for loss sharing (net of recoveries) — 735 — 735 Total other expenses 16,187 32,695 — 48,882 Income before income from equity affiliates and income taxes 16,687 29,434 — 46,121 Income from equity affiliates 3,718 — — 3,718 Provision for income taxes — (6,623) — (6,623) Net income 20,405 22,811 — 43,216 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 7,363 7,363 Net income attributable to common stockholders $ 18,517 $ 22,811 $ (7,363) $ 33,965 Nine Months Ended September 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 228,243 $ 25,064 $ — $ 253,307 Interest expense 115,390 13,782 — 129,172 Net interest income 112,853 11,282 — 124,135 Other revenue: Gain on sales, including fee-based services, net — 60,566 — 60,566 Mortgage servicing rights — 96,708 — 96,708 Servicing revenue — 76,285 — 76,285 Amortization of MSRs — (36,129) — (36,129) Property operating income 3,976 — — 3,976 Loss on derivative instruments, net (3,176) (55,676) — (58,852) Other income, net 3,347 57 — 3,404 Total other revenue 4,147 141,811 — 145,958 Other expenses: Employee compensation and benefits 28,880 72,772 — 101,652 Selling and administrative 12,647 16,366 — 29,013 Property operating expenses 4,778 — — 4,778 Depreciation and amortization 1,845 3,985 — 5,830 Provision for loss sharing (net of recoveries) — 21,706 — 21,706 Provision for credit losses (net of recoveries) 58,383 1,127 — 59,510 Total other expenses 106,533 115,956 — 222,489 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 10,467 37,137 — 47,604 Loss on extinguishment of debt (3,546) — — (3,546) Loss on sale of real estate (1,868) — — (1,868) Income from equity affiliates 56,758 — — 56,758 Provision for income taxes (9,337) (6,156) — (15,493) Net income 52,474 30,981 — 83,455 Preferred stock dividends 5,665 — — 5,665 Net income attributable to noncontrolling interest — — 11,012 11,012 Net income attributable to common stockholders $ 46,809 $ 30,981 $ (11,012) $ 66,778 Nine Months Ended September 30, 2019 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 215,782 $ 18,175 $ — $ 233,957 Interest expense 126,182 12,031 — 138,213 Net interest income 89,600 6,144 — 95,744 Other revenue: Gain on sales, including fee-based services, net — 51,897 — 51,897 Mortgage servicing rights — 62,852 — 62,852 Servicing revenue — 76,685 — 76,685 Amortization of MSRs — (36,731) — (36,731) Property operating income 8,187 — — 8,187 Loss on derivative instruments, net (668) (6,058) — (6,726) Other income, net 1,314 — — 1,314 Total other revenue 8,833 148,645 — 157,478 Other expenses: Employee compensation and benefits 23,048 70,599 — 93,647 Selling and administrative 15,101 16,021 — 31,122 Property operating expenses 7,649 — — 7,649 Depreciation and amortization 1,524 4,139 — 5,663 Impairment loss on real estate owned 1,000 — — 1,000 Provision for loss sharing (net of recoveries) — 1,557 — 1,557 Total other expenses 48,322 92,316 — 140,638 Income before extinguishment of debt, income from equity affiliates and income taxes 50,111 62,473 — 112,584 Loss on extinguishment of debt (128) — — (128) Income from equity affiliates 9,133 — — 9,133 Provision for income taxes — (10,963) — (10,963) Net income 59,116 51,510 — 110,626 Preferred stock dividends 5,665 — — 5,665 Net income attributable to noncontrolling interest — — 19,429 19,429 Net income attributable to common stockholders $ 53,451 $ 51,510 $ (19,429) $ 85,532 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. September 30, 2020 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 103,655 $ 88,549 $ 192,204 Restricted cash 103,412 6,851 110,263 Loans and investments, net 4,910,872 — 4,910,872 Loans held-for-sale, net — 631,138 631,138 Capitalized mortgage servicing rights, net — 335,235 335,235 Securities held-to-maturity, net 20,000 98,260 118,260 Investments in equity affiliates 82,322 — 82,322 Goodwill and other intangible assets 12,500 94,216 106,716 Other assets 154,509 47,699 202,208 Total assets $ 5,387,270 $ 1,301,948 $ 6,689,218 Liabilities: Debt obligations $ 4,468,886 $ 567,551 $ 5,036,437 Allowance for loss-sharing obligations — 71,160 71,160 Other liabilities 194,289 64,096 258,385 Total liabilities $ 4,663,175 $ 702,807 $ 5,365,982 December 31, 2019 Assets: Cash and cash equivalents $ 264,468 $ 35,219 $ 299,687 Restricted cash 208,926 1,949 210,875 Loans and investments, net 4,189,960 — 4,189,960 Loans held-for-sale, net — 861,360 861,360 Capitalized mortgage servicing rights, net — 286,420 286,420 Securities held-to-maturity, net 20,000 68,699 88,699 Investments in equity affiliates 41,800 — 41,800 Goodwill and other intangible assets 12,500 98,200 110,700 Other assets 118,175 31,484 149,659 Total assets $ 4,855,829 $ 1,383,331 $ 6,239,160 Liabilities: Debt obligations $ 3,878,343 $ 743,595 $ 4,621,938 Allowance for loss-sharing obligations — 34,648 34,648 Other liabilities 171,004 55,543 226,547 Total liabilities $ 4,049,347 $ 833,786 $ 4,883,133 |
Schedule of origination data and loan sales data | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Origination Data: Structured Business New loan originations (1) $ 291,758 $ 541,474 $ 1,448,468 $ 1,971,872 Loan payoffs / paydowns 206,028 456,847 640,494 1,239,449 (1) We committed to fund two SFR build-to-rent bridge loans totaling $75.3 million in the third quarter of 2020. Agency Business Origination Volumes by Investor: Fannie Mae $ 1,117,679 $ 1,097,095 $ 2,839,833 $ 2,581,958 Freddie Mac 252,014 203,981 587,445 631,324 FHA 100,345 — 193,821 44,668 Private Label 5,840 80,740 337,307 80,740 CMBS/Conduit — 34,000 — 211,325 Total $ 1,475,878 $ 1,415,816 $ 3,958,406 $ 3,550,015 Total loan commitment volume $ 1,528,551 $ 1,477,436 $ 4,002,492 $ 3,626,528 Loan Sales Data: Agency Business Fannie Mae $ 1,038,053 $ 1,141,780 $ 2,856,020 $ 2,556,781 Private Label — — 727,154 — Freddie Mac 116,628 262,735 468,019 663,053 FHA 64,781 49,915 118,218 82,085 CMBS/Conduit — 34,000 — 211,324 Total $ 1,219,462 $ 1,488,430 $ 4,169,411 $ 3,513,243 Sales margin (fee-based services as a % of loan sales) 1.63 % 1.43 % 1.45 % 1.48 % MSR rate (MSR income as a % of loan commitments) 2.77 % 2.02 % 2.42 % 1.73 % |
Schedule of key servicing metrics for Agency Business | September 30, 2020 Wtd. Avg. Servicing Wtd. Avg. Life of UPB of Servicing Fee Rate Servicing Portfolio Key Servicing Metrics for Agency Business: Portfolio (basis points) (in years) Fannie Mae $ 16,462,041 51.6 8.4 Freddie Mac 4,687,197 28.8 10.4 Private Label 727,063 20.0 9.4 FHA 685,263 17.1 20.4 Total $ 22,561,564 44.8 9.2 December 31, 2019 Fannie Mae $ 14,832,844 49.3 7.8 Freddie Mac 4,534,714 30.0 10.6 FHA 691,519 15.4 18.7 Total $ 20,059,077 43.8 8.8 |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Description of Business | |
Number of business segments | 2 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies, Credit Losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of impact of adopting ASU 2016-13 | ||||
Accumulated deficit | $ 120,539 | $ 60,920 | ||
Allowance for credit losses: | ||||
Securities held-to-maturity, net | 118,260 | 88,699 | ||
Liabilities: | ||||
Allowance for loss-sharing obligations | $ 71,160 | $ 34,648 | ||
Impact of adopting CECL | ||||
Schedule of impact of adopting ASU 2016-13 | ||||
Accumulated deficit | $ 28,600 | |||
Allowance for credit losses: | ||||
Structured loans and investments (1) | [1] | 88,363 | ||
Securities held-to-maturity, net | 501 | |||
Deferred tax asset | 27,307 | |||
Liabilities: | ||||
Allowance for loss-sharing obligations | 16,847 | |||
As Reported Pre-Adoption | ||||
Allowance for credit losses: | ||||
Structured loans and investments (1) | [1] | 71,069 | ||
Deferred tax asset | 23,713 | |||
Liabilities: | ||||
Allowance for loss-sharing obligations | 2,441 | |||
Impact of Adoption | ||||
Allowance for credit losses: | ||||
Structured loans and investments (1) | [1] | 17,294 | ||
Securities held-to-maturity, net | 501 | |||
Deferred tax asset | 3,594 | |||
Liabilities: | ||||
Allowance for loss-sharing obligations | $ 14,406 | |||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List] | us-gaap:ModifiedRetrospective | |||
Impact of Adoption | Impact of adopting CECL | ||||
Allowance for credit losses: | ||||
Deferred tax asset | $ 3,600 | |||
[1] | See Note 3 for details by asset class. |
Loans and Investments - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)loanborrower | Dec. 31, 2019USD ($)loanborrower | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Loans and Investments | ||||
Loans and investments, gross | $ 5,096,887 | $ 4,279,611 | ||
Allowance for credit losses | (146,745) | (71,069) | $ (152,811) | $ (71,069) |
Unearned revenue | (39,270) | (18,582) | ||
Loans and investments, net | $ 4,910,872 | $ 4,189,960 | ||
Percent of Total | 100.00% | 100.00% | ||
Loan Count | loan | 295 | 272 | ||
Wtd. Avg. Pay Rate (as a percent) | 5.39% | 5.98% | ||
Wtd. Avg. Remaining Months to Maturity | 18 months 27 days | 22 months 3 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 4.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78.00% | 76.00% | ||
Credit risk concentration | ||||
Loans and Investments | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78.00% | |||
Credit risk concentration | Single-Family Rental | ||||
Loans and Investments | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 64.00% | |||
Total assets | Credit risk concentration | ||||
Loans and Investments | ||||
Loan Count | loan | 22 | 24 | ||
Number of different borrowers | borrower | 5 | 5 | ||
Concentration risk, percentage | 13.00% | 13.00% | ||
Bridge loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 4,648,098 | $ 3,836,832 | ||
Percent of Total | 91.00% | 90.00% | ||
Loan Count | loan | 234 | 217 | ||
Wtd. Avg. Pay Rate (as a percent) | 5.24% | 5.77% | ||
Wtd. Avg. Remaining Months to Maturity | 15 months 15 days | 18 months | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77.00% | 75.00% | ||
Bridge loans | Single-Family Rental | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 9 | 11 | ||
Total loan commitment | $ 150,800 | $ 66,700 | ||
Preferred equity investments | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 216,882 | $ 181,058 | ||
Percent of Total | 4.00% | 4.00% | ||
Loan Count | loan | 12 | 10 | ||
Wtd. Avg. Pay Rate (as a percent) | 7.03% | 7.62% | ||
Wtd. Avg. Remaining Months to Maturity | 53 months 6 days | 68 months 24 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 66.00% | 69.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 89.00% | 89.00% | ||
Mezzanine loans | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 171,148 | $ 191,575 | ||
Percent of Total | 4.00% | 4.00% | ||
Loan Count | loan | 29 | 24 | ||
Wtd. Avg. Pay Rate (as a percent) | 7.52% | 9.70% | ||
Wtd. Avg. Remaining Months to Maturity | 45 months 6 days | 36 months 21 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 31.00% | 22.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 81.00% | 73.00% | ||
Other | ||||
Loans and Investments | ||||
Loans and investments, gross | $ 60,759 | $ 70,146 | ||
Percent of Total | 1.00% | 2.00% | ||
Loan Count | loan | 20 | 21 | ||
Wtd. Avg. Pay Rate (as a percent) | 4.89% | 2.88% | ||
Wtd. Avg. Remaining Months to Maturity | 79 months 27 days | 84 months 24 days | ||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 70.00% | 70.00% | ||
Other | Single-Family Rental | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 20 | 12 | ||
Total loan commitment | $ 60,800 | $ 41,600 | ||
Unpaid principal balance, funded | $ 53,700 | $ 30,000 | ||
Other | Purchased Loans [Member] | ||||
Loans and Investments | ||||
Number of loans under the loan portfolio | loan | 9 | |||
Total loan commitment | $ 28,600 |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loans and Investments | ||
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | 4.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78.00% | 76.00% |
Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2020 | $ 1,425,184 | |
Origination Year 2019 | 2,404,429 | |
Origination Year 2018 | 537,298 | |
Origination Year 2017 | 548,331 | |
Origination Year 2016 | 8,250 | |
Origination Year Prior | 173,395 | |
Amortized cost basis | $ 5,096,887 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 78.00% | |
Credit risk concentration | Loans and investments portfolio | New York | ||
Loans and Investments | ||
Concentration risk, percentage | 16.00% | 18.00% |
Credit risk concentration | Loans and investments portfolio | Texas | ||
Loans and Investments | ||
Concentration risk, percentage | 12.00% | 12.00% |
Credit risk concentration | Multifamily | ||
Loans and Investments | ||
Origination Year 2020 | $ 1,193,490 | |
Origination Year 2019 | 2,091,786 | |
Origination Year 2018 | 376,049 | |
Origination Year 2017 | 358,100 | |
Origination Year 2016 | 8,250 | |
Origination Year Prior | 29,653 | |
Amortized cost basis | $ 4,057,328 | |
Percentage of Portfolio | 80.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 4.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 77.00% | |
Credit risk concentration | Multifamily | Pass | ||
Loans and Investments | ||
Origination Year 2020 | $ 646,448 | |
Origination Year 2019 | 354,257 | |
Origination Year 2018 | 19,300 | |
Origination Year 2017 | 47,100 | |
Origination Year Prior | 853 | |
Amortized cost basis | 1,067,958 | |
Credit risk concentration | Multifamily | Pass/watch | ||
Loans and Investments | ||
Origination Year 2020 | 512,494 | |
Origination Year 2019 | 1,108,036 | |
Origination Year 2018 | 139,300 | |
Origination Year 2017 | 159,000 | |
Origination Year Prior | 28,800 | |
Amortized cost basis | 1,947,630 | |
Credit risk concentration | Multifamily | Special mention | ||
Loans and Investments | ||
Origination Year 2020 | 34,548 | |
Origination Year 2019 | 587,393 | |
Origination Year 2018 | 150,903 | |
Origination Year 2017 | 117,800 | |
Amortized cost basis | 890,644 | |
Credit risk concentration | Multifamily | Substandard | ||
Loans and Investments | ||
Origination Year 2019 | 42,100 | |
Origination Year 2018 | 66,546 | |
Origination Year 2017 | 34,200 | |
Origination Year 2016 | 8,250 | |
Amortized cost basis | 151,096 | |
Credit risk concentration | Land | ||
Loans and Investments | ||
Origination Year 2020 | 71,018 | |
Origination Year 2019 | 19,523 | |
Origination Year 2017 | 19,975 | |
Origination Year Prior | 127,928 | |
Amortized cost basis | $ 238,444 | |
Percentage of Portfolio | 5.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 92.00% | |
Credit risk concentration | Land | Special mention | ||
Loans and Investments | ||
Origination Year 2020 | $ 71,018 | |
Origination Year 2019 | 19,523 | |
Origination Year 2017 | 19,975 | |
Amortized cost basis | 110,516 | |
Credit risk concentration | Land | Substandard | ||
Loans and Investments | ||
Origination Year Prior | 127,928 | |
Amortized cost basis | 127,928 | |
Credit risk concentration | Healthcare | ||
Loans and Investments | ||
Origination Year 2019 | 80,919 | |
Origination Year 2018 | 61,500 | |
Origination Year 2017 | 46,275 | |
Amortized cost basis | $ 188,694 | |
Percentage of Portfolio | 4.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 79.00% | |
Credit risk concentration | Healthcare | Pass | ||
Loans and Investments | ||
Origination Year 2019 | $ 6,600 | |
Origination Year 2018 | 10,000 | |
Amortized cost basis | 16,600 | |
Credit risk concentration | Healthcare | Pass/watch | ||
Loans and Investments | ||
Origination Year 2017 | 41,650 | |
Amortized cost basis | 41,650 | |
Credit risk concentration | Healthcare | Special mention | ||
Loans and Investments | ||
Origination Year 2019 | 65,819 | |
Origination Year 2018 | 51,500 | |
Amortized cost basis | 117,319 | |
Credit risk concentration | Healthcare | Substandard | ||
Loans and Investments | ||
Origination Year 2019 | 8,500 | |
Amortized cost basis | 8,500 | |
Credit risk concentration | Healthcare | Doubtful | ||
Loans and Investments | ||
Origination Year 2017 | 4,625 | |
Amortized cost basis | 4,625 | |
Credit risk concentration | Student Housing | ||
Loans and Investments | ||
Origination Year 2020 | 23,500 | |
Origination Year 2019 | 44,500 | |
Origination Year 2018 | 16,350 | |
Origination Year 2017 | 67,250 | |
Amortized cost basis | $ 151,600 | |
Percentage of Portfolio | 3.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 12.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 79.00% | |
Credit risk concentration | Student Housing | Special mention | ||
Loans and Investments | ||
Origination Year 2019 | $ 44,500 | |
Origination Year 2018 | 3,350 | |
Amortized cost basis | 47,850 | |
Credit risk concentration | Student Housing | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 23,500 | |
Origination Year 2018 | 13,000 | |
Origination Year 2017 | 67,250 | |
Amortized cost basis | 103,750 | |
Credit risk concentration | Office | ||
Loans and Investments | ||
Origination Year 2020 | 35,410 | |
Origination Year 2018 | 47,799 | |
Origination Year 2017 | 43,151 | |
Origination Year Prior | 10,561 | |
Amortized cost basis | $ 136,921 | |
Percentage of Portfolio | 3.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 80.00% | |
Credit risk concentration | Office | Pass | ||
Loans and Investments | ||
Origination Year 2018 | $ 5,000 | |
Amortized cost basis | 5,000 | |
Credit risk concentration | Office | Pass/watch | ||
Loans and Investments | ||
Origination Year 2020 | 35,410 | |
Amortized cost basis | 35,410 | |
Credit risk concentration | Office | Special mention | ||
Loans and Investments | ||
Origination Year 2018 | 42,799 | |
Origination Year 2017 | 43,151 | |
Origination Year Prior | 9,681 | |
Amortized cost basis | 95,631 | |
Credit risk concentration | Office | Doubtful | ||
Loans and Investments | ||
Origination Year Prior | 880 | |
Amortized cost basis | 880 | |
Credit risk concentration | Single-Family Rental | ||
Loans and Investments | ||
Origination Year 2020 | 41,766 | |
Origination Year 2019 | 72,701 | |
Amortized cost basis | $ 114,467 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 64.00% | |
Credit risk concentration | Single-Family Rental | Pass | ||
Loans and Investments | ||
Origination Year 2020 | $ 29,804 | |
Origination Year 2019 | 34,640 | |
Amortized cost basis | 64,444 | |
Credit risk concentration | Single-Family Rental | Pass/watch | ||
Loans and Investments | ||
Origination Year 2020 | 1,611 | |
Origination Year 2019 | 38,061 | |
Amortized cost basis | 39,672 | |
Credit risk concentration | Single-Family Rental | Special mention | ||
Loans and Investments | ||
Origination Year 2020 | 10,351 | |
Amortized cost basis | 10,351 | |
Credit risk concentration | Hotel | ||
Loans and Investments | ||
Origination Year 2020 | 60,000 | |
Origination Year 2019 | 91,000 | |
Amortized cost basis | $ 151,000 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 90.00% | |
Credit risk concentration | Hotel | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | $ 60,000 | |
Origination Year 2019 | 91,000 | |
Amortized cost basis | 151,000 | |
Credit risk concentration | Other | ||
Loans and Investments | ||
Origination Year 2019 | 4,000 | |
Origination Year 2018 | 35,600 | |
Origination Year 2017 | 13,580 | |
Origination Year Prior | 5,253 | |
Amortized cost basis | $ 58,433 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 7.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 65.00% | |
Credit risk concentration | Other | Pass | ||
Loans and Investments | ||
Origination Year 2019 | $ 4,000 | |
Origination Year 2017 | 3,574 | |
Amortized cost basis | 7,574 | |
Credit risk concentration | Other | Pass/watch | ||
Loans and Investments | ||
Origination Year 2018 | 9,000 | |
Origination Year 2017 | 10,006 | |
Amortized cost basis | 19,006 | |
Credit risk concentration | Other | Special mention | ||
Loans and Investments | ||
Origination Year 2018 | 26,600 | |
Amortized cost basis | 26,600 | |
Credit risk concentration | Other | Substandard | ||
Loans and Investments | ||
Origination Year Prior | 3,553 | |
Amortized cost basis | 3,553 | |
Credit risk concentration | Other | Doubtful | ||
Loans and Investments | ||
Origination Year Prior | 1,700 | |
Amortized cost basis | $ 1,700 |
Loans and Investments - Allowan
Loans and Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Changes in allowance for loan losses | |||||
Allowance at beginning of period | $ 152,811 | $ 71,069 | |||
Provision for credit loss expense | (6,066) | 58,400 | |||
Allowance at end of period | 146,745 | 146,745 | |||
Allowance for credit losses | 152,811 | 71,069 | $ 146,745 | $ 71,069 | |
Accrued interest receivable related to loans | 38,100 | ||||
Unfunded commitments related to structured loans and investments | 194,900 | ||||
As Reported Pre-Adoption | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 71,069 | ||||
Provision for credit loss expense | 58,382 | ||||
Allowance at end of period | 146,745 | 146,745 | |||
Allowance for credit losses | 146,745 | 146,745 | 146,745 | 71,069 | |
Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 17,294 | ||||
Allowance at end of period | 17,300 | 17,300 | |||
Allowance for credit losses | 17,300 | 17,300 | 17,300 | ||
Land | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 78,094 | ||||
Provision for credit loss expense | (84) | 10,064 | |||
Allowance at end of period | 78,010 | 78,010 | |||
Allowance for credit losses | 78,010 | 78,010 | 78,010 | 67,869 | |
Land | As Reported Pre-Adoption | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 67,869 | ||||
Allowance for credit losses | 67,869 | ||||
Land | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 77 | ||||
Allowance for credit losses | 77 | ||||
Multifamily | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 34,606 | ||||
Provision for credit loss expense | 103 | 18,387 | |||
Allowance at end of period | 34,709 | 34,709 | |||
Allowance for credit losses | 34,709 | 34,709 | 34,709 | ||
Multifamily | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 16,322 | ||||
Allowance for credit losses | 16,322 | ||||
Retail | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 13,981 | ||||
Provision for credit loss expense | (40) | 13,606 | |||
Allowance at end of period | 13,941 | 13,941 | |||
Allowance for credit losses | 13,941 | 13,941 | 13,941 | ||
Retail | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 335 | ||||
Allowance for credit losses | 335 | ||||
Office | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 8,532 | ||||
Provision for credit loss expense | (6,589) | 156 | |||
Allowance at end of period | 1,943 | 1,943 | |||
Allowance for credit losses | 1,943 | 1,943 | 1,943 | 1,500 | |
Office | As Reported Pre-Adoption | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 1,500 | ||||
Allowance for credit losses | 1,500 | ||||
Office | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 287 | ||||
Allowance for credit losses | 287 | ||||
Hotel | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 7,672 | ||||
Provision for credit loss expense | (133) | 7,510 | |||
Allowance at end of period | 7,539 | 7,539 | |||
Allowance for credit losses | 7,539 | 7,539 | 7,539 | ||
Hotel | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 29 | ||||
Allowance for credit losses | 29 | ||||
Student Housing | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 4,110 | ||||
Provision for credit loss expense | 675 | 4,717 | |||
Allowance at end of period | 4,785 | 4,785 | |||
Allowance for credit losses | 4,785 | 4,785 | 4,785 | ||
Student Housing | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 68 | ||||
Allowance for credit losses | 68 | ||||
Healthcare | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 3,930 | ||||
Provision for credit loss expense | (21) | 3,845 | |||
Allowance at end of period | 3,909 | 3,909 | |||
Allowance for credit losses | 3,909 | 3,909 | 3,909 | ||
Healthcare | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 64 | ||||
Allowance for credit losses | 64 | ||||
Other | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 1,886 | ||||
Provision for credit loss expense | 23 | 97 | |||
Allowance at end of period | 1,909 | 1,909 | |||
Allowance for credit losses | $ 1,909 | 1,909 | $ 1,909 | $ 1,700 | |
Other | As Reported Pre-Adoption | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 1,700 | ||||
Allowance for credit losses | 1,700 | ||||
Other | Impact of Adoption | Impact of adopting CECL | |||||
Changes in allowance for loan losses | |||||
Allowance at beginning of period | 112 | ||||
Allowance for credit losses | $ 112 | ||||
Bridge loans | Hotel | |||||
Changes in allowance for loan losses | |||||
Allowance for credit losses | $ 7,500 |
Loans and Investments - Charge-
Loans and Investments - Charge-offs and Recoveries Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)loan | Sep. 30, 2020USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($) | |
Loans and Investments | |||||
Provision for credit loss expense | $ (6,066) | $ 58,400 | |||
Number of loans for which no provision for loan loss made | loan | 0 | 0 | 0 | ||
Allowance for credit losses | $ 146,745 | $ 146,745 | $ 152,811 | $ 71,069 | $ 71,069 |
Six loans collateralized by a land development project | Maturity date of March 2020 | |||||
Loans and Investments | |||||
Number of loans with unpaid principal balance | loan | 6 | 6 | |||
Unpaid principal balance on loans | $ 120,900 | $ 120,900 | |||
Five loans collateralized by a land development project | Maturity date of March 2020 | |||||
Loans and Investments | |||||
Number of loans with unpaid principal balance | loan | 5 | 5 | |||
Unpaid principal balance on loans | $ 111,500 | $ 111,500 | |||
Weighted average accrual rate of interest (as a percent) | 7.86% | ||||
Allowance for credit losses | $ 71,400 | $ 71,400 | $ 61,400 |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loans and Investments | ||
UPB | $ 282,875 | $ 138,141 |
Carrying Value | 253,922 | 130,726 |
Allowance for Credit Losses | $ 106,340 | $ 71,069 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 1 |
Wtd. Avg. Last Dollar LTV Ratio | 87 | 96 |
Land | ||
Loans and Investments | ||
UPB | $ 134,215 | $ 134,215 |
Carrying Value | 127,378 | 126,800 |
Allowance for Credit Losses | $ 77,869 | $ 67,869 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 98 | 97 |
Hotel | ||
Loans and Investments | ||
UPB | $ 110,000 | |
Carrying Value | 89,216 | |
Allowance for Credit Losses | $ 7,500 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 94 | |
Retail | ||
Loans and Investments | ||
UPB | $ 30,154 | |
Carrying Value | 28,774 | |
Allowance for Credit Losses | $ 13,926 | |
Wtd. Avg. First Dollar LTV Ratio | 11 | |
Wtd. Avg. Last Dollar LTV Ratio | 74 | |
Healthcare | ||
Loans and Investments | ||
UPB | $ 4,625 | |
Carrying Value | 4,673 | |
Allowance for Credit Losses | $ 3,845 | |
Wtd. Avg. First Dollar LTV Ratio | 0 | |
Wtd. Avg. Last Dollar LTV Ratio | 83 | |
Office | ||
Loans and Investments | ||
UPB | $ 2,181 | $ 2,226 |
Carrying Value | 2,181 | 2,226 |
Allowance for Credit Losses | $ 1,500 | $ 1,500 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 73 | 78 |
Commercial | ||
Loans and Investments | ||
UPB | $ 1,700 | $ 1,700 |
Carrying Value | 1,700 | 1,700 |
Allowance for Credit Losses | $ 1,700 | $ 1,700 |
Wtd. Avg. First Dollar LTV Ratio | 63 | 63 |
Wtd. Avg. Last Dollar LTV Ratio | 63 | 63 |
Loans and Investments - Non-per
Loans and Investments - Non-performing Loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)loanitem | Dec. 31, 2019USD ($)itemloan | |
Non-performing loans by asset class | ||
Number of loans | loan | 295 | 272 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | item | 10 | 5 |
Amortized cost of loans on nonaccrual status | $ 0 | $ 0 |
UPB | $ 282,875 | $ 138,141 |
Non-performing loans | ||
Non-performing loans by asset class | ||
Number of loans | loan | 8 | 3 |
Carrying value of loans | $ 53,800 | $ 1,800 |
Loan loss reserves | 9,100 | 1,700 |
UPB | 64,958 | 3,580 |
Greater than 90 Days Past Due | ||
Non-performing loans by asset class | ||
Past Due | 0 | 0 |
Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 64,958 | 3,580 |
Student Housing | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 36,500 | |
Student Housing | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 36,500 | |
Multifamily | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 17,700 | |
Multifamily | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 17,700 | |
Healthcare | ||
Non-performing loans by asset class | ||
UPB | 4,625 | |
Healthcare | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 4,625 | |
Healthcare | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 4,625 | |
Retail | ||
Non-performing loans by asset class | ||
UPB | 30,154 | |
Retail | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 3,553 | 1,000 |
Retail | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 3,553 | 1,000 |
Commercial | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 1,700 | 1,700 |
Office | ||
Non-performing loans by asset class | ||
UPB | 2,181 | 2,226 |
Office | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 880 | 880 |
Office | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | $ 880 | $ 880 |
Loans and Investments - Purchas
Loans and Investments - Purchased Credit Deterioration and Troubled Debt Restructurings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Sep. 30, 2020USD ($)itemloan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)itemloan | Jun. 30, 2020USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Purchase of loan | $ 1,425,051 | $ 1,895,092 | ||||||
Allowance for credit losses | $ 146,745 | $ 71,069 | $ 146,745 | $ 71,069 | $ 71,069 | $ 152,811 | ||
LIBOR Floor rate | 0.75% | |||||||
Troubled debt restructurings, number | item | 2 | 0 | ||||||
Interest reserve | $ 56,600 | $ 37,000 | ||||||
Interest Reserve, Number of Loans | loan | 152 | 131 | 152 | 131 | ||||
Aggregate UPB covered under interest reserve | $ 2,990,000 | $ 2,430,000 | $ 2,990,000 | $ 2,430,000 | ||||
Hotel | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Allowance for credit losses | 7,539 | 7,539 | 7,672 | |||||
Hotel | Forbearance agreement | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Pay rate (as a percent) | 1.00% | |||||||
Principal reduction | $ 10,000 | |||||||
Hotel | Forbearance agreement | LIBOR | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Variable rate, spread (as a percent) | 3.00% | |||||||
LIBOR Floor rate | 1.50% | |||||||
Retail | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Allowance for credit losses | 13,941 | 13,941 | $ 13,981 | |||||
Retail | Loan modification agreement | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Maturity period (in years) | 3 years | |||||||
Percentage of Interest foregone | 2 | |||||||
Principal paydowns | $ 6,000 | |||||||
Principal reduction | 8,000 | |||||||
Additional reserve deposit | $ 4,600 | |||||||
Charge-offs | 8,000 | |||||||
Retail | Loan modification agreement | LIBOR | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Variable rate, spread (as a percent) | 5.50% | |||||||
LIBOR Floor rate | 6.50% | |||||||
Bridge loans | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Principal amount | 35,000 | 35,000 | ||||||
Bridge loans | Hotel | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Purchase of loan | $ 60,000 | 50,000 | ||||||
Principal amount | 110,000 | 110,000 | ||||||
Allowance for credit losses | $ 7,500 | |||||||
Loan discount | 39,900 | |||||||
Total discount received | 20,100 | |||||||
Bridge loans | Retail | Loan modification agreement | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Principal amount | $ 26,500 | |||||||
Bridge loans | Retail | Loan modification agreement | LIBOR | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Variable rate, spread (as a percent) | 6.00% | |||||||
LIBOR Floor rate | 2.375% | |||||||
Mezzanine loans | Retail | Loan modification agreement | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Principal amount | $ 6,100 | |||||||
Fixed rate of interest (as a percent) | 12.00% | |||||||
Greater than 90 Days Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||
Past Due | 0 | 0 | 0 | 0 | ||||
Loans past due 90 days or more still accruing interest | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Loans Held-for-Sale, Net | ||||||
Loans held-for-sale | $ 617,920 | $ 617,920 | $ 847,126 | |||
Fair value of future MSR | 14,577 | 14,577 | 16,519 | |||
Unearned discount | (1,359) | (1,359) | (2,285) | |||
Loans held-for-sale, net | 631,138 | 631,138 | 861,360 | |||
Sale of loans held-for-sale excluding acquired loans | 1,220,000 | $ 1,490,000 | 4,170,000 | $ 3,510,000 | ||
Gain on sale of loans held-for-sale | 19,200 | $ 20,100 | 57,300 | $ 48,100 | ||
Subordinate class of certificates retained | 164,556 | 164,556 | 111,028 | |||
Amortized cost of loans on nonaccrual status | 0 | 0 | 0 | |||
APL certificates | ||||||
Loans Held-for-Sale, Net | ||||||
Subordinate class of certificates retained | 63,627 | 63,627 | ||||
APL certificates | Held-to-Maturity | ||||||
Loans Held-for-Sale, Net | ||||||
Subordinate class of certificates retained | 63,600 | 63,600 | ||||
Greater than 90 Days Past Due | ||||||
Loans Held-for-Sale, Net | ||||||
Past Due | 0 | $ 0 | 0 | |||
US Government Sponsored-Enterprise Insured Loans [Member] | ||||||
Loans Held-for-Sale, Net | ||||||
Period of loans held for sale sold | 60 days | |||||
Fannie Mae | ||||||
Loans Held-for-Sale, Net | ||||||
Loans held-for-sale, net | 392,343 | $ 392,343 | 408,534 | |||
Freddie Mac | ||||||
Loans Held-for-Sale, Net | ||||||
Loans held-for-sale, net | 155,729 | 155,729 | 36,303 | |||
FHA | ||||||
Loans Held-for-Sale, Net | ||||||
Loans held-for-sale, net | 58,546 | 58,546 | 1,082 | |||
Private Label | ||||||
Loans Held-for-Sale, Net | ||||||
Loans held-for-sale, net | $ 11,302 | $ 11,302 | $ 401,207 | |||
Period of loans held for sale sold | 180 days | |||||
Sale of loans held-for-sale excluding acquired loans | $ 727,200 | |||||
Private Label | Held-to-Maturity | ||||||
Loans Held-for-Sale, Net | ||||||
Sale of loans held-for-sale excluding acquired loans | $ 727,200 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of period | $ 286,420 | ||||
Balance at end of period | $ 335,235 | 335,235 | $ 286,420 | ||
MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of period | 313,288 | $ 276,648 | 286,420 | $ 273,770 | 273,770 |
Additions | 37,403 | 25,945 | 97,554 | 62,477 | |
Amortization | (12,416) | (12,125) | (36,129) | (36,731) | |
Write-downs and payoffs | (3,040) | (6,780) | (12,610) | (15,828) | |
Balance at end of period | 335,235 | 283,688 | 335,235 | 283,688 | 286,420 |
Prepayment fees collected | 2,000 | 5,300 | 10,100 | 13,800 | |
Valuation allowance | 0 | 0 | $ 0 | ||
Expected amortization of capitalized MSRs balances | |||||
2020 (three months ending 12/31/2020) | 12,869 | 12,869 | |||
2021 | 49,613 | 49,613 | |||
2022 | 45,577 | 45,577 | |||
2023 | 41,522 | 41,522 | |||
2024 | 37,388 | 37,388 | |||
2025 | 34,236 | 34,236 | |||
Thereafter | 114,030 | 114,030 | |||
Total | 335,235 | $ 335,235 | |||
MSRs | Minimum | |||||
Capitalized Mortgage Servicing Rights | |||||
Percentage of MSRs discount rate | 8.00% | ||||
MSRs | Maximum | |||||
Capitalized Mortgage Servicing Rights | |||||
Percentage of MSRs discount rate | 13.00% | ||||
MSRs | Weighted average | |||||
Capitalized Mortgage Servicing Rights | |||||
Percentage of MSRs discount rate | 11.00% | ||||
Estimated life remaining | 8 years 3 months 18 days | 8 years | |||
Acquired MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of period | 52,836 | 79,492 | $ 64,519 | 97,084 | $ 97,084 |
Amortization | (3,605) | (5,041) | (11,704) | (16,502) | |
Write-downs and payoffs | (959) | (3,008) | (4,543) | (9,139) | |
Balance at end of period | 48,272 | 71,443 | 48,272 | 71,443 | 64,519 |
Originated MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of period | 260,452 | 197,156 | 221,901 | 176,686 | 176,686 |
Additions | 37,403 | 25,945 | 97,554 | 62,477 | |
Amortization | (8,811) | (7,084) | (24,425) | (20,229) | |
Write-downs and payoffs | (2,081) | (3,772) | (8,067) | (6,689) | |
Balance at end of period | $ 286,963 | $ 212,245 | $ 286,963 | $ 212,245 | $ 221,901 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) - MSRs $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)state | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)state | ||
Mortgage Servicing | ||||||
Unpaid principal balance of loans serviced | [1] | $ 22,561,564 | $ 22,561,564 | $ 20,059,077 | ||
Weighted average servicing fee (as a percent) | 0.448% | 0.438% | ||||
Interest earned on total escrows | 1,300 | $ 4,700 | $ 5,800 | $ 12,900 | ||
Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 100.00% | 100.00% | ||||
Number of states accounted for more than 4% of UPB and related servicing revenues | state | 0 | 0 | ||||
Escrow Deposit | 1,150,000 | $ 1,150,000 | $ 947,100 | |||
Fee-based servicing portfolio | Agency Business | ||||||
Mortgage Servicing | ||||||
Escrow Deposit | 784,400 | $ 784,400 | $ 562,100 | |||
Texas | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 17.00% | 19.00% | ||||
New York | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 9.00% | 9.00% | ||||
North Carolina | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 9.00% | 9.00% | ||||
California | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 8.00% | 9.00% | ||||
Florida | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 7.00% | 6.00% | ||||
Georgia | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 6.00% | 6.00% | ||||
Other | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | [2] | 44.00% | 42.00% | |||
Fannie Mae | ||||||
Mortgage Servicing | ||||||
Unpaid principal balance of loans serviced | [1] | 16,462,041 | $ 16,462,041 | $ 14,832,844 | ||
Fannie Mae | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 73.00% | 74.00% | ||||
Freddie Mac | ||||||
Mortgage Servicing | ||||||
Unpaid principal balance of loans serviced | [1] | 4,687,197 | $ 4,687,197 | $ 4,534,714 | ||
Freddie Mac | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 21.00% | 23.00% | ||||
Private Label | ||||||
Mortgage Servicing | ||||||
Unpaid principal balance of loans serviced | [1] | 727,063 | $ 727,063 | |||
Private Label | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 3.00% | |||||
FHA | ||||||
Mortgage Servicing | ||||||
Unpaid principal balance of loans serviced | [1] | $ 685,263 | $ 685,263 | $ 691,519 | ||
FHA | Fee-based servicing portfolio | ||||||
Mortgage Servicing | ||||||
UPB Percentage of Total | 3.00% | 3.00% | ||||
[1] | Excludes loans which we are not collecting a servicing fee. | |||||
[2] | No other individual state represented 4% or more of the total. |
Securities Held-to-Maturity (De
Securities Held-to-Maturity (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Held-to-Maturity | ||||||
Face Value | $ 164,556 | $ 164,556 | $ 111,028 | |||
Net Carrying value | 118,260 | 118,260 | 88,699 | |||
Unrealized Gain | 3,039 | |||||
Unrealized Loss | (2,647) | (2,647) | ||||
Estimated Fair Value | 115,613 | 115,613 | 91,738 | |||
Allowance for Credit Losses | 1,628 | $ 3,148 | 1,628 | 0 | ||
Sale of loans held-for-sale excluding acquired loans | 1,220,000 | $ 1,490,000 | 4,170,000 | $ 3,510,000 | ||
Private Label | ||||||
Held-to-Maturity | ||||||
Sale of loans held-for-sale excluding acquired loans | 727,200 | |||||
Private Label | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Sale of loans held-for-sale excluding acquired loans | 727,200 | |||||
B Piece bonds | ||||||
Held-to-Maturity | ||||||
Face Value | 80,929 | 80,929 | 91,028 | |||
Net Carrying value | 60,662 | 60,662 | 68,699 | |||
Unrealized Gain | 953 | 953 | 2,965 | |||
Estimated Fair Value | 61,615 | 61,615 | $ 71,664 | |||
Allowance for Credit Losses | 861 | 1,069 | $ 861 | |||
B Piece bonds | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Estimated weighted average remaining maturity period | 5 years 8 months 12 days | |||||
Seven B Piece Bonds | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Face Value | $ 106,200 | $ 106,200 | ||||
Bonds retained percentage | 49.00% | |||||
Number of B Piece bonds | item | 7 | |||||
Discounted value of bonds purchased | $ 74,700 | |||||
Remaining of B Piece bond sold to the third party at par | 51.00% | 51.00% | ||||
Agency B Piece Bonds | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Weighted average variable interest rate (as a percent) | 3.74% | 3.74% | ||||
Weighted average effective interest rate (as a percent) | 10.68% | 10.68% | 10.85% | |||
Held-to-maturity securities, estimated fiscal year | ||||||
Within one year | $ 12,800 | $ 12,800 | ||||
After one year through five years | 37,800 | 37,800 | ||||
After five years through ten years | 14,600 | 14,600 | ||||
After ten years | 15,800 | 15,800 | ||||
APL certificates | ||||||
Held-to-Maturity | ||||||
Face Value | 63,627 | 63,627 | ||||
Net Carrying value | 37,598 | 37,598 | ||||
Unrealized Loss | (2,012) | (2,012) | ||||
Estimated Fair Value | 35,586 | 35,586 | ||||
Allowance for Credit Losses | 767 | $ 2,079 | 767 | |||
APL certificates | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Face Value | $ 63,600 | 63,600 | ||||
Discounted value of bonds purchased | $ 37,900 | |||||
Weighted average variable interest rate (as a percent) | 4.95% | 4.95% | ||||
Estimated weighted average remaining maturity period | 9 years 3 months 18 days | |||||
Weighted average effective interest rate (as a percent) | 10.15% | 10.15% | ||||
Number of loans serving as collateral | item | 40 | |||||
Number of multifamily properties | item | 49 | |||||
Estimated weighted average maturity period | 10 years | |||||
Held-to-maturity securities, estimated fiscal year | ||||||
After ten years | $ 63,600 | $ 63,600 | ||||
SFR bonds | ||||||
Held-to-Maturity | ||||||
Face Value | 20,000 | 20,000 | $ 20,000 | |||
Net Carrying value | 20,000 | 20,000 | 20,000 | |||
Unrealized Gain | 74 | |||||
Unrealized Loss | (1,588) | (1,588) | ||||
Estimated Fair Value | 18,412 | $ 18,412 | $ 20,074 | |||
SFR bonds | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Estimated weighted average remaining maturity period | 4 months 24 days | |||||
Initial face value of bonds purchased | $ 20,000 | |||||
Securities maturity term | 3 years | |||||
Weighted average fixed interest rate | 4.58% | |||||
Held-to-maturity securities, estimated fiscal year | ||||||
Within one year | 19,000 | $ 19,000 | ||||
After one year through five years | $ 1,000 | $ 1,000 |
Securities Held-to-Maturity Rol
Securities Held-to-Maturity Rollforward of Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | $ 3,148 | $ 0 | ||
Provision for credit loss expense | (1,520) | |||
Allowance for credit loss, ending balance | 1,628 | 1,628 | ||
Impairment of held-to maturity securities | 0 | |||
Accrued interest, held-to-maturity securities | 600 | 600 | ||
Held-to-Maturity | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Investment Income, Interest | 2,900 | $ 2,300 | 6,900 | $ 6,800 |
APL certificates | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | 2,079 | |||
Provision for credit loss expense | (1,312) | |||
Allowance for credit loss, ending balance | 767 | 767 | ||
B Piece bonds | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | 1,069 | |||
Provision for credit loss expense | (208) | |||
Allowance for credit loss, ending balance | 861 | 861 | ||
Impact of adopting CECL | Impact of Adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | 501 | |||
Provision for credit loss expense | 1,127 | |||
Allowance for credit loss, ending balance | 1,628 | 1,628 | ||
Impact of adopting CECL | Impact of Adoption | APL certificates | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Provision for credit loss expense | 767 | |||
Allowance for credit loss, ending balance | 767 | 767 | ||
Impact of adopting CECL | Impact of Adoption | B Piece bonds | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | 501 | |||
Provision for credit loss expense | 360 | |||
Allowance for credit loss, ending balance | $ 861 | $ 861 |
Investments in Equity Affilia_3
Investments in Equity Affiliates, Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 82,322 | $ 41,800 |
UPB of Loans to Equity Affiliates | 1,687 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 67,783 | 26,520 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 9,746 | 10,520 |
North Vermont Avenue | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 2,473 | 2,440 |
Lightstone Value Plus R E I T L P | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 1,895 | 1,895 |
JT Prime | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 425 | $ 425 |
West Shore Cafe | ||
Investment in Equity Affiliates | ||
UPB of Loans to Equity Affiliates | $ 1,687 |
Investments in Equity Affilia_4
Investments in Equity Affiliates, Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statements of Income: | |||||
Total revenues | $ 76,930 | $ 62,558 | $ 145,958 | $ 157,478 | |
Total expenses | 35,727 | 48,882 | 222,489 | 140,638 | |
Net income | 97,721 | 43,216 | 83,455 | 110,626 | |
Income from equity affiliates | 32,358 | 3,718 | 56,758 | 9,133 | |
Arbor Residential Investor LLC | |||||
Statements of Income: | |||||
Total revenues | 1,050,946 | 335,610 | |||
Total expenses | 665,552 | 294,660 | |||
Net income | 385,394 | 40,950 | |||
Distribution received | 15,000 | ||||
Arbor Residential Investor LLC | Residential Mortgage Banking Company | |||||
Statements of Income: | |||||
Income from equity affiliates | $ 32,300 | 2,600 | $ 56,100 | 6,100 | |
Lexford Portfolio | |||||
Statements of Income: | |||||
Distribution received | $ 1,100 | $ 1,200 | $ 3,000 |
Real Estate Owned (Details)
Real Estate Owned (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Real Estate Owned | |||||
Real estate owned, net | $ 2,894 | $ 2,894 | $ 13,220 | ||
Restricted cash due to escrow requirement | 110,263 | 110,263 | 210,875 | $ 190,046 | $ 180,606 |
Real Estate Owned | |||||
Real Estate Owned | |||||
Less: Impairment loss | (16,807) | ||||
Less: Accumulated depreciation and amortization | (11,327) | ||||
Real estate owned, net | 13,220 | ||||
Restricted cash due to escrow requirement | 500 | ||||
Real Estate Owned | Hotel | |||||
Real Estate Owned | |||||
Less: Impairment loss | (14,307) | ||||
Less: Accumulated depreciation and amortization | (10,320) | ||||
Real estate owned, net | 10,208 | ||||
Property consideration | 8,400 | ||||
Loss on sale of real estate owned | 1,900 | ||||
Real Estate Owned | Hotel | Selling and administrative expense | |||||
Real Estate Owned | |||||
Charge on litigation settlement | 2,500 | ||||
Real Estate Owned | Office | |||||
Real Estate Owned | |||||
Less: Impairment loss | (2,500) | (2,500) | (2,500) | ||
Less: Accumulated depreciation and amortization | (1,125) | (1,125) | (1,007) | ||
Real estate owned, net | 2,894 | 2,894 | 3,012 | ||
Real Estate Owned | Land | |||||
Real Estate Owned | |||||
Real estate owned, gross | 7,803 | ||||
Real Estate Owned | Land | Hotel | |||||
Real Estate Owned | |||||
Real estate owned, gross | 3,294 | ||||
Real Estate Owned | Land | Office | |||||
Real Estate Owned | |||||
Real estate owned, gross | 4,509 | 4,509 | 4,509 | ||
Real Estate Owned | Building and intangible assets | |||||
Real Estate Owned | |||||
Real estate owned, gross | 33,551 | ||||
Real Estate Owned | Building and intangible assets | Hotel | |||||
Real Estate Owned | |||||
Real estate owned, gross | 31,541 | ||||
Real Estate Owned | Building and intangible assets | Office | |||||
Real Estate Owned | |||||
Real estate owned, gross | $ 2,010 | $ 2,010 | $ 2,010 |
Debt Obligations, Credit Facili
Debt Obligations, Credit Facilities and Repurchase Agreements (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Obligations | |||||||||
UPB | $ 1,454,419 | $ 1,454,419 | $ 1,681,146 | ||||||
Debt Carrying Value | 1,449,940 | 1,449,940 | 1,678,288 | ||||||
Collateral Carrying Value | $ 1,807,425 | $ 1,807,425 | $ 1,747,371 | ||||||
Weighted Average Note Rate (as a percent) | 2.90% | 2.90% | 3.54% | ||||||
LIBOR Floor rate | 0.75% | ||||||||
Joint Repurchase Facility | |||||||||
Debt Obligations | |||||||||
Committed amount | $ 1,100,000 | ||||||||
Matures in March 2021 | $ 600,000 | 600,000 | |||||||
Matures in March 2022 | 500,000 | $ 500,000 | |||||||
Extension of maturity date (in years) | 1 year | ||||||||
Credit facility, sublimit | 800,000 | $ 800,000 | |||||||
Reduced sublimit unless that portion of the facility is extended through March 2022 | 500,000 | ||||||||
$400 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Additional borrowing capacity | 400,000 | 400,000 | |||||||
Repurchase facility - securities | CLOs | |||||||||
Debt Obligations | |||||||||
Collateral Carrying Value | $ 275,700 | $ 275,700 | $ 234,900 | ||||||
Repurchase facility - securities | B Piece bonds | |||||||||
Debt Obligations | |||||||||
Collateral Carrying Value | 60,700 | 60,700 | 68,700 | ||||||
Repurchase facility - securities | SFR bonds | |||||||||
Debt Obligations | |||||||||
Debt Instrument, Collateral Amount | 20,000 | 20,000 | 20,000 | ||||||
$23.0 million credit facility | |||||||||
Debt Obligations | |||||||||
Maximum borrowing capacity | $ 23,000 | ||||||||
Fixed interest rates | 3.50% | ||||||||
Structured Business | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 882,388 | 882,388 | 934,694 | ||||||
Collateral Carrying Value | $ 1,189,505 | $ 1,189,505 | $ 1,002,993 | ||||||
Weighted Average Note Rate (as a percent) | 2.85% | 2.85% | 3.94% | ||||||
Weighted average note rate including certain fees and costs (as a percent) | 3.18% | 3.18% | 4.39% | ||||||
Unamortized deferred finance costs | $ 3,500 | $ 3,500 | $ 2,100 | ||||||
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreements used to finance leasehold and capital expenditure improvements at corporate office (as a percent) | 71.00% | 71.00% | 71.00% | ||||||
Structured Business | $500 million joint repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 315,181 | $ 315,181 | $ 224,658 | ||||||
Collateral Carrying Value | $ 485,250 | $ 485,250 | $ 339,378 | ||||||
Weighted Average Note Rate (as a percent) | 2.82% | 2.82% | 4.06% | ||||||
LIBOR Floor rate | 75.00% | ||||||||
Maximum borrowing capacity | $ 500,000 | $ 500,000 | $ 500,000 | ||||||
Structured Business | $500 million joint repurchase facility | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.75% | ||||||||
Structured Business | $500 million joint repurchase facility | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 3.50% | ||||||||
Structured Business | $400 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 180,642 | $ 180,642 | 218,418 | ||||||
Collateral Carrying Value | $ 254,068 | $ 254,068 | $ 291,292 | ||||||
Weighted Average Note Rate (as a percent) | 2.99% | 2.99% | 3.76% | ||||||
LIBOR Floor rate | 0.75% | ||||||||
Maximum borrowing capacity | $ 400,000 | $ 400,000 | 400,000 | $ 400,000 | $ 400,000 | ||||
Decrease in interest rate (as a percent) | 25.00% | ||||||||
Structured Business | $400 million repurchase facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.20% | ||||||||
Structured Business | $200 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 58,112 | $ 58,112 | 40,530 | ||||||
Collateral Carrying Value | $ 70,377 | $ 70,377 | $ 48,086 | ||||||
Weighted Average Note Rate (as a percent) | 2.71% | 2.71% | 4.22% | ||||||
Variable rate, spread (as a percent) | 0.25% | ||||||||
Maximum borrowing capacity | $ 200,000 | $ 200,000 | $ 200,000 | ||||||
Structured Business | $200 million repurchase facility | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.40% | ||||||||
LIBOR Floor rate | 25.00% | ||||||||
Structured Business | $200 million repurchase facility | Maximum | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 60.00% | ||||||||
Structured Business | $200 million repurchase facility | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 3.00% | ||||||||
Structured Business | $149.6 million loan specific credit facilities | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 149,377 | $ 149,377 | 133,528 | ||||||
Collateral Carrying Value | $ 200,549 | $ 200,549 | $ 190,716 | ||||||
Weighted Average Note Rate (as a percent) | 2.68% | 2.68% | 4.14% | ||||||
Maximum borrowing capacity | $ 149,600 | $ 149,600 | $ 149,600 | ||||||
Structured Business | $149.6 million loan specific credit facilities | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.50% | ||||||||
Structured Business | $149.6 million loan specific credit facilities | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.20% | ||||||||
Structured Business | $149.6 million loan specific credit facilities | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 3.50% | ||||||||
Structured Business | $125 million credit facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 125,000 | ||||||||
Committed amount | $ 125,000 | ||||||||
Structured Business | $125 million credit facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 50.00% | ||||||||
Structured Business | $125 million credit facility | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 50.00% | ||||||||
Structured Business | $125 million credit facility | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 55.00% | ||||||||
Structured Business | $100 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 50,309 | $ 50,309 | 45,843 | ||||||
Collateral Carrying Value | $ 66,486 | $ 66,486 | $ 63,800 | ||||||
Weighted Average Note Rate (as a percent) | 1.92% | 1.92% | 3.56% | ||||||
Maximum borrowing capacity | $ 100,000 | $ 100,000 | $ 100,000 | ||||||
Structured Business | $100 million repurchase facility | LIBOR | |||||||||
Debt Obligations | |||||||||
LIBOR Floor rate | 50.00% | ||||||||
Structured Business | $100 million repurchase facility | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.75% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 175.00% | 175.00% | |||||||
Structured Business | $100 million repurchase facility | Maximum | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 0.50% | ||||||||
Structured Business | $100 million repurchase facility | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.50% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 195.00% | 195.00% | |||||||
Structured Business | $75 million credit facility - One | |||||||||
Debt Obligations | |||||||||
Committed amount | $ 75,000 | ||||||||
Structured Business | $50 million credit facility - one | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 24,785 | $ 24,785 | 14,933 | ||||||
Collateral Carrying Value | $ 32,300 | $ 32,300 | $ 17,650 | ||||||
Weighted Average Note Rate (as a percent) | 2.18% | 2.18% | 3.81% | ||||||
Maximum borrowing capacity | $ 50,000 | $ 50,000 | $ 50,000 | ||||||
Structured Business | $50 million credit facility - one | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.00% | ||||||||
Structured Business | $50 million credit facility - two | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 23,414 | $ 23,414 | 12,191 | ||||||
Collateral Carrying Value | $ 31,374 | $ 31,374 | $ 16,499 | ||||||
Weighted Average Note Rate (as a percent) | 4.06% | 4.06% | 4.32% | ||||||
Structured Business | $50 million credit facility - two | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.50% | ||||||||
Structured Business | $50 million credit facility - two | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 4.00% | ||||||||
Structured Business | $25 million credit facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 10,894 | $ 10,894 | $ 19,651 | ||||||
Collateral Carrying Value | $ 17,022 | $ 17,022 | $ 28,572 | ||||||
Weighted Average Note Rate (as a percent) | 2.43% | 2.43% | 4.07% | ||||||
Maximum borrowing capacity | $ 25,000 | $ 25,000 | $ 25,000 | ||||||
Structured Business | $25 million credit facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.25% | ||||||||
Structured Business | $25 million working capital facility | |||||||||
Debt Obligations | |||||||||
Maximum borrowing capacity | 25,000 | $ 25,000 | 25,000 | ||||||
Structured Business | $25 million working capital facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.25% | ||||||||
Structured Business | $1.8 million master security agreements | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 1,815 | $ 1,815 | $ 3,267 | ||||||
Weighted Average Note Rate (as a percent) | 4.14% | 4.14% | 4.08% | ||||||
Maximum borrowing capacity | $ 1,800 | $ 1,800 | $ 1,800 | ||||||
Structured Business | $1.8 million master security agreements | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.97% | ||||||||
Structured Business | $1.8 million master security agreements | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 4.60% | ||||||||
Structured Business | Repurchase facility - securities | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 42,226 | $ 42,226 | $ 217,105 | ||||||
Weighted Average Note Rate (as a percent) | 4.72% | 4.72% | 3.90% | ||||||
Reduction in principal amount | $ 175,000 | ||||||||
Structured Business | Repurchase facility - securities | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.25% | ||||||||
Structured Business | Repurchase facility - securities | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 5.00% | ||||||||
Structured Business | $300 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Maximum borrowing capacity | $ 300,000 | 300,000 | |||||||
Structured Business | $100 million credit facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 25,633 | $ 25,633 | $ 4,570 | ||||||
Collateral Carrying Value | $ 100,000 | $ 32,079 | $ 32,079 | $ 7,000 | |||||
Weighted Average Note Rate (as a percent) | 1.92% | 1.92% | 3.56% | ||||||
Variable rate, spread (as a percent) | 0.50% | ||||||||
Maximum borrowing capacity | $ 100,000 | ||||||||
Structured Business | $100 million credit facility | Minimum | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.30% | ||||||||
Structured Business | $100 million credit facility | Maximum | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 3.00% | ||||||||
Agency Business | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 567,552 | $ 567,552 | $ 743,594 | ||||||
Collateral Carrying Value | $ 617,920 | $ 617,920 | $ 744,378 | ||||||
Weighted Average Note Rate (as a percent) | 2.98% | 2.98% | 3.03% | ||||||
Unamortized deferred finance costs | $ 900 | $ 900 | $ 200 | ||||||
Agency Business | $600 million joint repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 6,927 | 6,927 | 299,824 | ||||||
Collateral Carrying Value | $ 11,302 | $ 11,302 | $ 300,446 | ||||||
Weighted Average Note Rate (as a percent) | 2.77% | 2.77% | 3.26% | ||||||
Variable rate, spread (as a percent) | 2.75% | ||||||||
Maximum borrowing capacity | $ 600,000 | $ 600,000 | $ 600,000 | ||||||
Agency Business | $600 million joint repurchase facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.50% | ||||||||
Agency Business | $50 million credit facility - one | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 50,000 | $ 50,000 | |||||||
Agency Business | $50 million credit facility - three | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 2.00% | ||||||||
Additional borrowing capacity | $ 50,000 | 50,000 | |||||||
Agency Business | $50 million credit facility - three | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 0.25% | ||||||||
Agency Business | $750 million ASAP agreement | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 163,851 | 163,851 | 148,725 | ||||||
Collateral Carrying Value | $ 163,851 | $ 163,851 | $ 148,725 | ||||||
Weighted Average Note Rate (as a percent) | 1.40% | 1.40% | 2.81% | ||||||
Variable rate, spread (as a percent) | 0.35% | ||||||||
Maximum borrowing capacity | $ 750,000 | $ 750,000 | $ 750,000 | ||||||
Agency Business | $750 million ASAP agreement | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.05% | ||||||||
Agency Business | $300 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 160,398 | $ 160,398 | 187,698 | ||||||
Collateral Carrying Value | $ 183,177 | $ 183,177 | $ 187,742 | ||||||
Weighted Average Note Rate (as a percent) | 1.30% | 1.30% | 2.91% | ||||||
Maximum borrowing capacity | $ 300,000 | $ 300,000 | $ 300,000 | ||||||
Additional borrowing capacity | 400,000 | $ 400,000 | |||||||
Agency Business | $300 million repurchase facility | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.15% | ||||||||
Agency Business | $300 million repurchase facility | Maximum | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 150.00% | ||||||||
Agency Business | $150 million credit facility - one | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 54,586 | $ 54,586 | 89,657 | ||||||
Collateral Carrying Value | $ 77,676 | $ 77,676 | $ 89,673 | ||||||
Weighted Average Note Rate (as a percent) | 1.30% | 1.30% | 2.91% | ||||||
Variable rate, spread (as a percent) | 25.00% | ||||||||
Maximum borrowing capacity | $ 150,000 | $ 150,000 | $ 150,000 | ||||||
Agency Business | $150 million credit facility - one | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.15% | ||||||||
Agency Business | $150 million credit facility - one | Minimum | LIBOR | |||||||||
Debt Obligations | |||||||||
LIBOR Floor rate | 25.00% | ||||||||
Agency Business | $150 million credit facility - two | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | $ 117,413 | $ 117,413 | 17,690 | ||||||
Collateral Carrying Value | $ 117,537 | $ 117,537 | $ 17,792 | ||||||
Weighted Average Note Rate (as a percent) | 1.65% | 1.65% | 2.91% | ||||||
Variable rate, spread (as a percent) | 0.25% | ||||||||
Maximum borrowing capacity | $ 150,000 | $ 150,000 | $ 150,000 | ||||||
Agency Business | $150 million credit facility - two | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.40% | ||||||||
Agency Business | $100 million credit facility | |||||||||
Debt Obligations | |||||||||
Debt Carrying Value | 64,377 | $ 64,377 | |||||||
Collateral Carrying Value | $ 64,377 | $ 64,377 | |||||||
Weighted Average Note Rate (as a percent) | 1.65% | 1.65% | |||||||
Variable rate, spread (as a percent) | 0.50% | ||||||||
Maximum borrowing capacity | $ 100,000 | $ 100,000 | |||||||
Agency Business | $100 million credit facility | LIBOR | |||||||||
Debt Obligations | |||||||||
Variable rate, spread (as a percent) | 1.15% | ||||||||
Agency Business | $500 million repurchase facility | |||||||||
Debt Obligations | |||||||||
Maximum borrowing capacity | $ 300,000 | $ 300,000 | $ 500,000 |
Debt Obligations, Collateralize
Debt Obligations, Collateralized Loan Obligations (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2020USD ($)trancheitem | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Obligations | ||||
Proceeds from issuance of collateralized loan obligations | $ 668,000 | $ 533,000 | ||
Debt, Carrying Value | $ 2,516,032 | $ 2,130,121 | ||
Weighted average note rate (as a percent) | 2.90% | 3.54% | ||
Payoffs and paydowns of collateralized loan obligations | $ 282,874 | $ 250,250 | ||
CLOs | ||||
Debt Obligations | ||||
Debt, Face Value | 2,532,593 | $ 2,147,467 | ||
Debt, Carrying Value | $ 2,516,032 | $ 2,130,121 | ||
Weighted average note rate (as a percent) | 1.61% | 3.23% | ||
Restricted cash related to interest payments, delayed fundings and expenses | $ 58,100 | $ 58,600 | ||
Collateral Loans, Unpaid Principal | 3,003,534 | 2,497,578 | ||
Collateral Loans, Carrying Value | 2,993,596 | 2,487,391 | ||
Cash, Restricted Cash | 45,290 | 118,411 | ||
Deferred financing fees | $ 16,600 | $ 17,300 | ||
Weighted average note rate including certain fees and costs (as a percent) | 1.94% | 3.63% | ||
Collateral at risk | $ 16,600 | $ 0 | ||
Number of loans deemed at risk | item | 1 | |||
CLO XIII | ||||
Debt Obligations | ||||
Number of tranches of CLO notes issued | tranche | 8 | |||
Number of newly-formed wholly-owned subsidiaries | item | 2 | |||
Value of the tranches issued | $ 738,000 | |||
Debt, Face Value | $ 668,000 | |||
Debt, Carrying Value | $ 663,506 | |||
Weighted average note rate (as a percent) | 1.58% | |||
Collateral Loans, Unpaid Principal | $ 764,080 | |||
Collateral Loans, Carrying Value | 760,847 | |||
Cash, Restricted Cash | 21 | |||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | 159,500 | |||
Notional amount of residual interest retained | 132,000 | |||
Value of portfolio loans as collateral | 640,500 | |||
Face value of loan obligations will be owned by the issuer | $ 800,000 | |||
Leverage (as a percent) | 84.00% | |||
CLO XIII | One-month LIBOR | ||||
Debt Obligations | ||||
Weighted average note rate including certain fees and costs (as a percent) | 1.41% | |||
CLO XIII | Investment grade | ||||
Debt Obligations | ||||
Debt, Face Value | $ 668,000 | |||
CLO XIII | Below investment grade | ||||
Debt Obligations | ||||
Debt, Carrying Value | 70,000 | |||
Notional amount of residual interest retained | $ 70,000 | |||
CLO XII | ||||
Debt Obligations | ||||
Debt, Face Value | 534,193 | 534,193 | ||
Debt, Carrying Value | $ 530,361 | $ 529,448 | ||
Weighted average note rate (as a percent) | 1.67% | 3.30% | ||
Collateral Loans, Unpaid Principal | $ 613,702 | $ 596,366 | ||
Collateral Loans, Carrying Value | 611,790 | 593,652 | ||
Cash, Restricted Cash | 9,210 | 17,800 | ||
CLO XI | ||||
Debt Obligations | ||||
Debt, Face Value | 533,000 | 533,000 | ||
Debt, Carrying Value | $ 529,554 | $ 528,690 | ||
Weighted average note rate (as a percent) | 1.61% | 3.25% | ||
Collateral Loans, Unpaid Principal | $ 632,441 | $ 624,443 | ||
Collateral Loans, Carrying Value | 630,452 | 621,508 | ||
Cash, Restricted Cash | 414 | 15,550 | ||
Replacement period | 3 years | |||
Maximum period to acquire additional loan obligations | 180 days | |||
CLO X | ||||
Debt Obligations | ||||
Debt, Face Value | 441,000 | 441,000 | ||
Debt, Carrying Value | $ 438,169 | $ 437,391 | ||
Weighted average note rate (as a percent) | 1.62% | 3.26% | ||
Collateral Loans, Unpaid Principal | $ 520,153 | $ 509,887 | ||
Collateral Loans, Carrying Value | 518,537 | 507,854 | ||
Cash, Restricted Cash | 32,276 | 37,287 | ||
CLO IX | ||||
Debt Obligations | ||||
Debt, Face Value | 356,400 | 356,400 | ||
Debt, Carrying Value | $ 354,442 | $ 353,473 | ||
Weighted average note rate (as a percent) | 1.53% | 3.17% | ||
Collateral Loans, Unpaid Principal | $ 473,158 | $ 407,696 | ||
Collateral Loans, Carrying Value | 471,970 | 406,463 | ||
Cash, Restricted Cash | $ 3,369 | 47,230 | ||
CLO VIII | ||||
Debt Obligations | ||||
Debt, Face Value | 282,874 | |||
Debt, Carrying Value | $ 281,119 | |||
Weighted average note rate (as a percent) | 3.12% | |||
Collateral Loans, Unpaid Principal | $ 359,186 | |||
Collateral Loans, Carrying Value | 357,914 | |||
Cash, Restricted Cash | $ 544 | |||
Payoffs and paydowns of collateralized loan obligations | $ 282,900 | |||
Deferred fees expensed as interest expense | $ 1,500 |
Debt Obligations, Luxembourg De
Debt Obligations, Luxembourg Debt Fund (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Obligations | ||||
Secured Debt. | $ 2,516,032 | $ 2,130,121 | ||
Debt, Weighted Average Interest Rate | 2.90% | 3.54% | ||
Loss on extinguishment of debt | $ (3,546) | $ (128) | ||
Luxembourg debt fund | ||||
Debt Obligations | ||||
Loss on extinguishment of debt | $ 1,600 |
Debt Obligations, Senior Unsecu
Debt Obligations, Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Sep. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||||
Senior notes carrying value | $ 662,289 | $ 319,799 | ||
5.625% Notes | ||||
Debt Obligations | ||||
Principal amount | $ 125,000 | 125,000 | ||
Interest rate (as a percent) | 5.625% | |||
4.75% Notes | ||||
Debt Obligations | ||||
Principal amount | $ 110,000 | $ 110,000 | ||
Interest rate (as a percent) | 4.75% | 4.75% | ||
5.75% Notes | ||||
Debt Obligations | ||||
Principal amount | $ 90,000 | $ 90,000 | ||
Interest rate (as a percent) | 5.75% | 5.75% | ||
Senior Unsecured Notes | ||||
Debt Obligations | ||||
Principal amount | $ 670,750 | $ 325,000 | ||
8.00% Notes | ||||
Debt Obligations | ||||
Principal amount | $ 70,750 | $ 40,500 | ||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | 8.00% |
Proceeds from issued debt | $ 30,300 | $ 69,600 |
Debt Obligations, Senior Unse_2
Debt Obligations, Senior Unsecured Notes, Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||||
Wtd. Avg Rate | 2.90% | 3.54% | ||
Senior Unsecured Notes | ||||
Debt Obligations | ||||
UPB | $ 670,750 | $ 325,000 | ||
Carrying value | $ 662,289 | $ 319,799 | ||
Wtd. Avg Rate | 5.29% | 5.44% | ||
Deferred financing fees | $ 8,500 | $ 5,200 | ||
Weighted average note rate including certain fees and costs (as a percent) | 5.65% | 5.82% | ||
8.00% Notes and 4.50% Notes | Redeemed prior to three months before the maturity date | ||||
Debt Obligations | ||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||
8.00% Notes and 4.50% Notes | Redeemed three months prior to or after the maturity date | ||||
Debt Obligations | ||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||
8.00% Notes | ||||
Debt Obligations | ||||
UPB | $ 70,750 | $ 40,500 | ||
Carrying value | $ 69,691 | |||
Wtd. Avg Rate | 8.00% | |||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | 8.00% |
4.50% Notes | ||||
Debt Obligations | ||||
UPB | $ 275,000 | |||
Carrying value | $ 271,873 | |||
Wtd. Avg Rate | 4.50% | |||
Interest rate (as a percent) | 4.50% | 4.50% | ||
Senior Unsecured 4.75% Notes, 5.75% Notes and 5.625% Notes | Redeemed at any time prior to the redemption date, at a maturity price | ||||
Debt Obligations | ||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||
Senior Unsecured 4.75% Notes, 5.75% Notes and 5.625% Notes | Redeemed on or after the maturity date | ||||
Debt Obligations | ||||
Redemption of aggregate principal amount (as a percent) | 100.00% | |||
4.75% Notes | ||||
Debt Obligations | ||||
UPB | $ 110,000 | $ 110,000 | ||
Carrying value | $ 108,580 | $ 108,370 | ||
Wtd. Avg Rate | 4.75% | 4.75% | ||
Interest rate (as a percent) | 4.75% | 4.75% | ||
5.75% Notes | ||||
Debt Obligations | ||||
UPB | $ 90,000 | $ 90,000 | ||
Carrying value | $ 88,655 | $ 88,369 | ||
Wtd. Avg Rate | 5.75% | 5.75% | ||
Interest rate (as a percent) | 5.75% | 5.75% | ||
5.625% Notes | ||||
Debt Obligations | ||||
UPB | $ 125,000 | $ 125,000 | ||
Carrying value | $ 123,490 | $ 123,060 | ||
Wtd. Avg Rate | 5.63% | 5.63% | ||
Interest rate (as a percent) | 5.625% |
Debt Obligations, Convertible S
Debt Obligations, Convertible Senior Unsecured Notes (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018item | Jun. 30, 2020USD ($) | Jan. 31, 2020$ / shares | Jul. 20, 2018 | Jul. 03, 2018 | |
Debt Obligations | |||||||||||
Cash paid for the exchange of convertible notes | $ 22,145,000 | $ 3,149,000 | |||||||||
Loss on extinguishment of debt | (3,546,000) | (128,000) | |||||||||
Total | $ 5,090,588,000 | 5,090,588,000 | |||||||||
Number of private placements | item | 2 | ||||||||||
Convertible Senior Unsecured Notes | |||||||||||
Debt Obligations | |||||||||||
Principal amount | 278,490,000 | $ 278,490,000 | $ 300,914,000 | ||||||||
Proceeds received, net of estimated issuance costs | 34,000,000 | ||||||||||
Loss on extinguishment of debt | 7,300,000 | ||||||||||
Inducement charge | $ 1,100,000 | ||||||||||
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed | 100.00% | ||||||||||
Maturity period (in years) | 2 years 7 days | 2 years 8 months 1 day | |||||||||
Unamortized Debt Discount | 6,439,000 | $ 6,439,000 | $ 9,235,000 | ||||||||
Unamortized Deferred Financing Fees | 5,345,000 | 5,345,000 | 7,527,000 | ||||||||
Total | 266,706,000 | 266,706,000 | 284,152,000 | ||||||||
Net Carrying Value, Equity Component | 9,962,000 | $ 9,962,000 | |||||||||
Interest expense | 4,800,000 | $ 5,000,000 | 14,800,000 | 15,100,000 | |||||||
Interest expense related to cash coupon | 3,300,000 | 3,500,000 | 10,000,000 | 10,400,000 | |||||||
Debt discount | 800,000 | 800,000 | 2,500,000 | 2,500,000 | |||||||
Deferred fees expensed as interest expense | $ 700,000 | $ 700,000 | $ 2,300,000 | $ 2,200,000 | |||||||
Cost of the notes (as a percent) | 6.75% | 6.75% | 6.80% | ||||||||
5.375% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 90.5672 | ||||||||||
6.50% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Proceeds from issued debt | $ 200,000 | ||||||||||
Interest rate (as a percent) | 6.50% | ||||||||||
5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||
Cash paid for the exchange of convertible notes | $ 233,100,000 | $ 228,700,000 | |||||||||
Common stock exchanged (in shares) | shares | 4,478,315 | ||||||||||
4.75% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 1,000 | $ 1,000 | $ 264,000,000 | ||||||||
Interest rate (as a percent) | 4.75% | 4.75% | 4.75% | ||||||||
Proceeds received, net of estimated issuance costs | $ 256,500,000 | ||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 56.2185 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 17.79 | $ 17.79 | |||||||||
4.75% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 1,000 | ||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 56.1695 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 17.80 | ||||||||||
Junior subordinated notes | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 154,336,000 | $ 154,336,000 | $ 154,336,000 | ||||||||
Deferred fees expensed as interest expense | 1,900,000 | $ 2,000,000 | |||||||||
Issued on July 3, 2018 | 5.375% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 1,000 | $ 1,000 | |||||||||
Conversion price per share of common stock | $ / shares | $ 11.50 | $ 11.50 | |||||||||
Issued on July 3, 2018 | 6.50% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion price per share of common stock | $ / shares | $ 9.28 | $ 9.28 | |||||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 500,000 | $ 500,000 | |||||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion price per share of common stock | $ / shares | $ 12.85 | $ 12.85 | |||||||||
Issued on July 20, 2018 | 5.375% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 86.9943 | ||||||||||
Issued on July 20, 2018 | 5.375% Convertible Notes | Second Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 81.0297 | ||||||||||
Conversion price per share of common stock | $ / shares | 11.04 | $ 11.04 | |||||||||
Issued on July 20, 2018 | 6.50% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 107.7122 | ||||||||||
Issued on July 20, 2018 | 6.50% Convertible Notes | Second Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 118.2123 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 8.46 | $ 8.46 | |||||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 13,800,000 | ||||||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 77.8331 | ||||||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | Second Offering | |||||||||||
Debt Obligations | |||||||||||
Principal amount | $ 1,000 | $ 1,000 | |||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 90.5672 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 12.34 |
Debt Obligations, Junior Subord
Debt Obligations, Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||
Debt carrying value | $ 141,470 | $ 140,949 |
Weighted average note rate (as a percent) | 2.90% | 3.54% |
Junior subordinated notes | ||
Debt Obligations | ||
Debt carrying value | $ 141,500 | $ 140,900 |
Deferred amount Due at maturity | 11,000 | 11,400 |
Deferred fees expensed as interest expense | $ 1,900 | $ 2,000 |
Weighted average note rate (as a percent) | 3.05% | 4.75% |
Weighted average note rate including certain fees and costs (as a percent) | 3.14% | 4.83% |
Debt Obligations, Debt Covenant
Debt Obligations, Debt Covenants (Details) - USD ($) | 1 Months Ended | |||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Sep. 30, 2020 | |
CLO IX | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 134.68% | 134.68% | 134.68% | 134.68% | 134.68% | |
Limit overcollateralization ratio (as a percent) | 133.68% | |||||
Current interest coverage ratio (as a percent) | 522.55% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO X | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 126.98% | 126.98% | 126.98% | 126.98% | 126.98% | |
Limit overcollateralization ratio (as a percent) | 125.98% | |||||
Current interest coverage ratio (as a percent) | 445.37% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO XI | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 121.95% | 121.95% | 121.95% | 121.95% | 121.95% | |
Limit overcollateralization ratio (as a percent) | 120.95% | |||||
Current interest coverage ratio (as a percent) | 403.28% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO XII | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 118.87% | 118.87% | 118.87% | 118.87% | ||
Limit overcollateralization ratio (as a percent) | 117.87% | |||||
Current interest coverage ratio (as a percent) | 377.12% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO XIII | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 119.76% | 119.76% | 119.76% | |||
Limit overcollateralization ratio (as a percent) | 118.76% | |||||
Current interest coverage ratio (as a percent) | 371.60% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
Junior subordinated notes | ||||||
Debt Covenants | ||||||
Amount payable on default of senior debt | $ 0 |
Allowance for Loss-Sharing Ob_3
Allowance for Loss-Sharing Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Roll forward of loss contingency accrual | |||||
Provisions for loss sharing | $ (2,227) | $ 735 | $ 21,706 | $ 1,557 | |
Guarantee obligations | 33,200 | 32,100 | 33,200 | 32,100 | |
Fannie Mae | |||||
Roll forward of loss contingency accrual | |||||
Allowance for loss sharing obligations | 38,000 | $ 38,000 | |||
Loss-sharing obligations (as a percent) | 0.23% | ||||
Loss-Sharing Obligation | |||||
Roll forward of loss contingency accrual | |||||
Outstanding advances under the Fannie Mae DUS program | 100 | $ 100 | $ 500 | ||
Loss-Sharing Obligation | Fannie Mae | |||||
Roll forward of loss contingency accrual | |||||
Beginning balance of the period | 73,220 | 34,417 | 34,648 | 34,298 | |
Impact of adopting CECL | 14,400 | ||||
Provisions for loss sharing | (2,031) | 1,326 | 22,538 | 3,880 | |
Provisions reversal for loan repayments | (196) | (591) | (832) | (2,323) | |
Recoveries (charge-offs) , net | 167 | 373 | 400 | (330) | |
Ending balance of the period | 71,160 | $ 35,525 | 71,160 | $ 35,525 | |
Maximum quantifiable liability | $ 3,060,000 | 3,060,000 | $ 2,730,000 | ||
Loss-Sharing Obligation | Fannie Mae | Impact of adopting CECL | |||||
Roll forward of loss contingency accrual | |||||
Beginning balance of the period | $ 14,406 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Agency Business (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)item | |
Derivative Financial Instruments | |||||
Notional Value, classified in Other Assets | $ 394,432 | $ 394,432 | $ 173,532 | ||
Notional Value, classified in Other Liabilities | 375,672 | 375,672 | 347,701 | ||
Net (losses) gains from changes in the fair value of derivatives | (900) | $ (4,700) | 3,300 | $ (6,100) | |
(Loss) gain on derivative instruments | (753) | (5,003) | (58,852) | (6,726) | |
Income from mortgage servicing rights | 42,357 | 29,911 | 96,708 | 62,852 | |
Other Income | |||||
Derivative Financial Instruments | |||||
(Loss) gain on derivative instruments | 42,400 | 29,900 | $ 96,700 | 62,900 | |
Swap Futures | |||||
Derivative Financial Instruments | |||||
Derivative, maturity term | 3 months | ||||
Swap Futures | Minimum | |||||
Derivative Financial Instruments | |||||
Derivative Swap Rate Period | 5 years | ||||
Swap Futures | Maximum | |||||
Derivative Financial Instruments | |||||
Derivative Swap Rate Period | 10 years | ||||
Swap Futures | Agency Business | Other Income | |||||
Derivative Financial Instruments | |||||
Realized gain (loss) on derivatives | (100) | 200 | $ (57,300) | 200 | |
Unrealized gain (loss) on derivatives | (100) | (200) | (1,500) | (200) | |
Swap Futures | Structured Business | Other Income | |||||
Derivative Financial Instruments | |||||
Realized gain (loss) on derivatives | (200) | (400) | (3,000) | (600) | |
Unrealized gain (loss) on derivatives | (400) | $ 100 | (100) | $ (100) | |
Non-Qualifying | Agency Business | |||||
Derivative Financial Instruments | |||||
Notional Value, classified in Other Assets | 778,504 | 778,504 | 848,633 | ||
Fair Value, classified in Other Assets | 3,547 | 3,547 | 1,435 | ||
Fair Value, classified in Other Liabilities | $ (852) | $ (852) | $ (3,097) | ||
Non-Qualifying | Rate lock commitments | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 14 | 14 | 5 | ||
Notional Value, classified in Other Assets | $ 81,743 | $ 81,743 | $ 37,657 | ||
Fair Value, classified in Other Assets | 2,160 | 2,160 | 1,066 | ||
Fair Value, classified in Other Liabilities | $ (110) | $ (110) | $ (202) | ||
Non-Qualifying | Forward Sale Commitments | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 79 | 79 | 79 | ||
Notional Value, classified in Other Assets | $ 688,361 | $ 688,361 | $ 483,576 | ||
Fair Value, classified in Other Assets | 1,387 | 1,387 | 369 | ||
Fair Value, classified in Other Liabilities | $ (742) | $ (742) | $ (2,895) | ||
Non-Qualifying | Swap Futures | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 84 | 84 | 3,274 | ||
Notional Value, classified in Other Assets | $ 8,400 | $ 8,400 | $ 327,400 | ||
Non-Qualifying | Swap Futures | Structured Business | |||||
Derivative Financial Instruments | |||||
Count | item | 345 | 345 | 271 | ||
Notional Value, classified in Other Assets | $ 34,500 | $ 34,500 | $ 27,100 |
Fair Value, Carrying Value and
Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Financial assets: | ||
Financing Receivable, before Allowance for Credit Loss | $ 5,096,887 | $ 4,279,611 |
Loans and investments, net - Principal/Notional Amount | 5,096,887 | 4,279,611 |
Loans and investments, net | 4,910,872 | 4,189,960 |
Loans held-for-sale, net - Principal/Notional Amount | 617,920 | 847,126 |
Loans held-for-sale, net | 617,920 | 847,126 |
Securities, held-to-maturity, net - Principal/Notional Amount | 164,556 | 111,028 |
Securities held-to-maturity, net | 118,260 | 88,699 |
Derivative financial instruments - Principal/Notional Amount | 394,432 | 173,532 |
Financial liabilities: | ||
Credit and repurchase facilities, Principal/Notional Amount | 1,454,419 | 1,681,146 |
Credit and repurchase facilities, Carrying value | 1,449,940 | 1,678,288 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Senior unsecured notes | 662,289 | 319,799 |
Convertible senior unsecured notes, net | 266,706 | 284,152 |
Junior subordinated notes | 141,470 | 140,949 |
Derivative financial instruments - Principal/Notional Amount | $ 375,672 | 347,701 |
Debt fund | 68,629 | |
Minimum | ||
Financial liabilities: | ||
Period of loans held for sale sold | 60 days | |
Maximum | ||
Financial liabilities: | ||
Period of loans held for sale sold | 180 days | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | $ 4,910,872 | 4,189,960 |
Loans held-for-sale, net | 631,138 | 861,360 |
Capitalized mortgage servicing rights, net | 335,235 | 286,420 |
Securities held-to-maturity, net | 118,260 | 88,699 |
Derivative financial instruments | 3,547 | 1,435 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,449,940 | 1,678,288 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Senior unsecured notes | 662,289 | 319,799 |
Convertible senior unsecured notes, net | 266,706 | 284,152 |
Junior subordinated notes | 141,470 | 140,949 |
Derivative financial instruments | 852 | 3,097 |
Debt fund | 68,629 | |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 5,033,017 | 4,228,071 |
Loans held-for-sale, net | 641,616 | 876,975 |
Capitalized mortgage servicing rights, net | 363,819 | 328,995 |
Securities held-to-maturity, net | 115,613 | 91,738 |
Derivative financial instruments | 3,547 | 1,435 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,451,759 | 1,677,658 |
Collateralized loan obligations | 2,478,949 | 2,147,944 |
Senior unsecured notes | 650,235 | 331,225 |
Convertible senior unsecured notes, net | 264,803 | 310,778 |
Junior subordinated notes | 99,106 | 97,668 |
Derivative financial instruments | 852 | 3,097 |
Debt fund | 70,138 | |
CLOs | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 2,532,593 | 2,147,467 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Debt Fund | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 70,000 | |
Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 670,750 | 325,000 |
Convertible Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 278,490 | 300,914 |
Junior subordinated notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 154,336 | 154,336 |
Junior subordinated notes | $ 141,500 | $ 140,900 |
Fair Value, Measurement on Recu
Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands, shares in Millions | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemshares | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Financial assets: | ||||
Impaired loans, net | $ 253,922 | $ 130,726 | ||
Allowance for impaired loan losses | $ 106,340 | 71,069 | ||
Number of impaired loans | item | 10 | |||
Loans and Leases Receivable, Allowance | $ 71,069 | $ 146,745 | $ 152,811 | 71,069 |
Impairment loss on real estate owned | $ 1,000 | |||
Non-financial assets: | ||||
Real Estate Investment Property, Net | 2,894 | 13,220 | ||
Real Estate Owned | ||||
Non-financial assets: | ||||
Real Estate Investment Property, Net | 13,220 | |||
Carrying Value | ||||
Financial assets: | ||||
Derivative financial instruments | $ 3,547 | 1,435 | ||
Aggregate carrying value, before reserves | shares | 253.9 | |||
Loans and Leases Receivable, Allowance | $ 106,300 | |||
Financial liabilities: | ||||
Derivative financial instruments | 852 | 3,097 | ||
Fair Value | ||||
Financial assets: | ||||
Derivative financial instruments | 3,547 | 1,435 | ||
Financial liabilities: | ||||
Derivative financial instruments | 852 | $ 3,097 | ||
Recurring basis | Carrying Value | ||||
Financial assets: | ||||
Derivative financial instruments | 3,547 | |||
Financial liabilities: | ||||
Derivative financial instruments | 852 | |||
Recurring basis | Fair Value | ||||
Financial assets: | ||||
Derivative financial instruments | 3,547 | |||
Financial liabilities: | ||||
Derivative financial instruments | 852 | |||
Nonrecurring basis | Carrying Value | ||||
Financial assets: | ||||
Impaired loans, net | 147,583 | |||
Nonrecurring basis | Fair Value | ||||
Financial assets: | ||||
Impaired loans, net | 147,583 | |||
Level 2 | Recurring basis | ||||
Financial assets: | ||||
Derivative financial instruments | 1,387 | |||
Financial liabilities: | ||||
Derivative financial instruments | 852 | |||
Level 3 | Recurring basis | ||||
Financial assets: | ||||
Derivative financial instruments | 2,160 | |||
Level 3 | Nonrecurring basis | ||||
Financial assets: | ||||
Impaired loans, net | $ 147,583 |
Fair Value, Level 3 Inputs (Det
Fair Value, Level 3 Inputs (Details) - Level 3 $ in Thousands | Sep. 30, 2020USD ($)item |
Hotel | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 81,716 |
Hotel | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0750 |
Hotel | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0500 |
Hotel | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.2500 |
Land | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 49,510 |
Land | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.2150 |
Land | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0300 |
Retail | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 14,848 |
Retail | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1021 |
Retail | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0925 |
Retail | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0176 |
Healthcare | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 828 |
Healthcare | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1430 |
Office | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 681 |
Office | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1100 |
Office | Capitalization rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0900 |
Office | Revenue growth rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.0250 |
Rate lock commitments | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments | $ | $ 2,160 |
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Derivative Asset, Measurement Input [Extensible List] | Discount rate |
Rate lock commitments | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Derivative financial instruments measurement input | 0.1275 |
Fair Value, Level 3 Derivative
Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative assets | ||||
Balance at beginning of period | $ 549 | $ 745 | $ 1,066 | $ 324 |
Settlements | (40,746) | (30,067) | (95,614) | (62,587) |
Realized gains recorded in earnings | 40,197 | 29,322 | 94,548 | 62,263 |
Unrealized gains recorded in earnings | 2,160 | 589 | 2,160 | 589 |
Balance at end of period | $ 2,160 | $ 589 | $ 2,160 | $ 589 |
Fair Value, Components of fair
Fair Value, Components of fair value and other relevant information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value of Servicing Rights | $ 16,864 |
Total Fair Value Adjustment | 16,864 |
Rate lock commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 81,743 |
Fair Value of Servicing Rights | 2,160 |
Interest Rate Movement Effect | (110) |
Total Fair Value Adjustment | 2,050 |
Forward Sale Commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 688,361 |
Interest Rate Movement Effect | 110 |
Total Fair Value Adjustment | 110 |
Loans held-for-sale, net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 617,920 |
Fair Value of Servicing Rights | 14,704 |
Total Fair Value Adjustment | $ 14,704 |
Fair Value, Financial Assets an
Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Loans and investments, net | $ 4,910,872 | $ 4,189,960 |
Loans held-for-sale, net | 617,920 | 847,126 |
Securities held-to-maturity, net | 118,260 | 88,699 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,449,940 | 1,678,288 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Debt fund | 68,629 | |
Senior unsecured notes | 662,289 | 319,799 |
Convertible senior unsecured notes, net | 266,706 | 284,152 |
Junior subordinated notes | 141,470 | 140,949 |
Level 1 | ||
Financial liabilities: | ||
Senior unsecured notes | 650,235 | |
Level 2 | ||
Financial assets: | ||
Loans held-for-sale, net | 626,912 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 567,552 | |
Convertible senior unsecured notes, net | 264,803 | |
Level 3 | ||
Financial assets: | ||
Loans and investments, net | 5,033,017 | |
Loans held-for-sale, net | 14,704 | |
Capitalized mortgage servicing rights, net | 363,819 | |
Securities held-to-maturity, net | 115,613 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 884,207 | |
Collateralized loan obligations | 2,478,949 | |
Junior subordinated notes | 99,106 | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | 4,910,872 | 4,189,960 |
Loans held-for-sale, net | 631,138 | 861,360 |
Capitalized mortgage servicing rights, net | 335,235 | |
Securities held-to-maturity, net | 118,260 | 88,699 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,449,940 | 1,678,288 |
Collateralized loan obligations | 2,516,032 | 2,130,121 |
Debt fund | 68,629 | |
Senior unsecured notes | 662,289 | 319,799 |
Convertible senior unsecured notes, net | 266,706 | 284,152 |
Junior subordinated notes | 141,470 | 140,949 |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 5,033,017 | 4,228,071 |
Loans held-for-sale, net | 641,616 | 876,975 |
Capitalized mortgage servicing rights, net | 363,819 | |
Securities held-to-maturity, net | 115,613 | 91,738 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,451,759 | 1,677,658 |
Collateralized loan obligations | 2,478,949 | 2,147,944 |
Debt fund | 70,138 | |
Senior unsecured notes | 650,235 | 331,225 |
Convertible senior unsecured notes, net | 264,803 | 310,778 |
Junior subordinated notes | $ 99,106 | $ 97,668 |
Commitments and Contingencies,
Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Agency Business Commitments | ||||||
Cash collateral | $ 110,263 | $ 190,046 | $ 110,263 | $ 190,046 | $ 210,875 | $ 180,606 |
Debt Obligations | ||||||
2020 (three months ending December 31, 2020) | 691,917 | 691,917 | ||||
2021 | 710,547 | 710,547 | ||||
2022 | 1,809,657 | 1,809,657 | ||||
2023 | 938,641 | 938,641 | ||||
2024 | 456,905 | 456,905 | ||||
2025 | 18,334 | 18,334 | ||||
Thereafter | 464,587 | 464,587 | ||||
Total | 5,090,588 | 5,090,588 | ||||
Minimum Annual Operating Lease Payments | ||||||
2020 (three months ending December 31, 2020) | 1,327 | 1,327 | ||||
2021 | 4,861 | 4,861 | ||||
2022 | 7,986 | 7,986 | ||||
2023 | 7,754 | 7,754 | ||||
2024 | 7,652 | 7,652 | ||||
2025 | 7,696 | 7,696 | ||||
Thereafter | 34,041 | 34,041 | ||||
Total | 71,317 | 71,317 | ||||
Total | ||||||
2020 (three months ending December 31, 2020) | 693,244 | 693,244 | ||||
2021 | 715,408 | 715,408 | ||||
2022 | 1,817,643 | 1,817,643 | ||||
2023 | 946,395 | 946,395 | ||||
2024 | 464,557 | 464,557 | ||||
2025 | 26,030 | 26,030 | ||||
Thereafter | 498,628 | 498,628 | ||||
Total | 5,161,905 | 5,161,905 | ||||
Operating lease expense | 1,500 | $ 1,500 | 4,600 | $ 4,500 | ||
Unfunded CLO Commitments | ||||||
Unfunded commitments related to structured loans and investments | 194,900 | 194,900 | ||||
Fannie Mae | ||||||
Agency Business Commitments | ||||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | 16,100 | $ 16,100 | ||||
Period of funding for collateral requirement | 48 months | |||||
Forward Contracts | ||||||
Agency Business Commitments | ||||||
Period of contractual commitment | 60 days | |||||
Restricted liquidity arrangement - loans sold under the Fannie Mae DUS program | Fannie Mae | ||||||
Agency Business Commitments | ||||||
Letter of credit assigned | 45,000 | $ 45,000 | ||||
Cash collateral | 6,900 | 6,900 | ||||
Reserve required to fund additional restricted liquidity over the next 48 months | 39,700 | $ 39,700 | ||||
Period of additional funding for collateral requirement | 48 months | |||||
Cash collateral arrangement - purchase and loss obligations under Freddie Mac's SBL Program | ||||||
Agency Business Commitments | ||||||
Cash collateral per securitization | 5,000 | $ 5,000 | ||||
Outstanding letters of credit | $ 5,000 | $ 5,000 |
Commitments and Contingencies_2
Commitments and Contingencies, Litigation (Details) $ in Millions | Jun. 15, 2011USD ($)lawsuitdefendant | Aug. 31, 2020USD ($)lawsuitdefendant | Jun. 30, 2013USD ($)defendantlawsuit | Jun. 30, 2011lawsuitdefendant |
Arbor ESH II, LLC | ||||
Litigation | ||||
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. | $ | $ 115 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 3 | |||
Number of lawsuits filed in United States Bankruptcy Court | lawsuit | 2 | |||
Number of defendants | 73 | |||
Number of defendants who are corporate and partnership entities | 55 | |||
Number of defendants named in a legal action who are individuals | 18 | |||
Number of counts dismissed | lawsuit | 9 | |||
Number of counts dismissed against defendant entities | 4 | |||
Total LIBOR Floor Certificate transfers | $ | $ 74 | |||
Total possible liability against directors | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Fiduciary Duty Claims | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 2 | |||
Number of defendants | 2 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits | ||||
Litigation | ||||
Number of lawsuits consolidated | lawsuit | 1 | |||
Number of defendants removed due to consolidation of lawsuits | 47 | |||
Number of defendants related to the entity | 0 | |||
Number of defendants remaining due to consolidation of lawsuits | 26 | |||
Number of defendants who are corporate and partnership entities | 16 | |||
Number of defendants named in a legal action who are individuals | 10 | |||
Number of lawsuits before amendment | lawsuit | 100 | |||
Number of lawsuits after amendment | lawsuit | 17 | |||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Arbor ESH II, LLC | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 1 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entities | |||||
Loan loss reserves related to VIEs | $ 146,745 | $ 152,811 | $ 71,069 | $ 71,069 | |
Assets: | |||||
Restricted cash | 110,263 | 210,875 | $ 190,046 | $ 180,606 | |
Loans and investments, net | 4,910,872 | 4,189,960 | |||
Other assets | 175,500 | 125,788 | |||
Total assets | 6,689,218 | 6,239,160 | |||
Liabilities: | |||||
Collateralized loan obligations | 2,516,032 | 2,130,121 | |||
Debt fund | 68,629 | ||||
Other liabilities | 181,279 | 134,299 | |||
Total liabilities | 5,365,982 | 4,883,133 | |||
Consolidated variable interest entities | |||||
Assets: | |||||
Restricted cash | 103,411 | 208,467 | |||
Loans and investments, net | 2,993,596 | 2,557,909 | |||
Other assets | 15,748 | 18,380 | |||
Total assets | 3,112,755 | 2,784,756 | |||
Liabilities: | |||||
Collateralized loan obligations | 2,516,032 | 2,130,121 | |||
Debt fund | 68,629 | ||||
Other liabilities | 2,713 | 10,849 | |||
Total liabilities | $ 2,518,745 | $ 2,209,599 | |||
Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item | 32 | ||||
Carrying amount of loans and investments before reserves related to VIEs | $ 615,613 | ||||
Exposure to real estate debt | 4,880,000 | ||||
Loans | Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Carrying amount of loans and investments before reserves related to VIEs | 481,422 | ||||
Carrying amount of loans and investments related to VIE's | 218,800 | ||||
Loan loss reserves related to VIEs | 86,900 | ||||
B Piece and SFR bonds | Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Carrying amount of loans and investments before reserves related to VIEs | 81,523 | ||||
APL certificates | Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Carrying amount of loans and investments before reserves related to VIEs | 38,365 | ||||
Equity investments | Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Carrying amount of loans and investments before reserves related to VIEs | 12,219 | ||||
Agency interest only strips | Unconsolidated VIEs | |||||
Variable Interest Entities | |||||
Carrying amount of loans and investments before reserves related to VIEs | $ 2,084 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | Oct. 28, 2020$ / shares | Jul. 29, 2020$ / shares | May 06, 2020$ / shares | May 01, 2020$ / shares | Feb. 13, 2020$ / shares | Jan. 31, 2020$ / shares | Aug. 31, 2020USD ($)shares | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)shares | Feb. 29, 2020shares | Sep. 30, 2020USD ($)Vote$ / sharesshares | Mar. 31, 2020USD ($)shares | Sep. 30, 2019$ / sharesshares | Sep. 30, 2020USD ($)Vote$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2019$ / shares | Mar. 31, 2020 | Aug. 31, 2019shares | Dec. 31, 2018 | Jul. 20, 2018 | Jul. 03, 2018 |
Common stock | |||||||||||||||||||||
Proceeds from issuance of shares under public offering | $ | $ 78,550 | $ 117,879 | |||||||||||||||||||
Number of shares purchased | 747,500 | ||||||||||||||||||||
Repurchase of common stock | $ | $ 12,761 | 11,574 | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Redemption of operating partnership units | $ | $ 31,255 | $ 1,673 | |||||||||||||||||||
Number of shares purchased | 747,500 | ||||||||||||||||||||
Distributions | |||||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.31 | $ 0.29 | $ 0.91 | $ 0.84 | |||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Grants during the period (in shares) | 313,152 | ||||||||||||||||||||
Total grant date fair value | $ | $ 3,000 | ||||||||||||||||||||
Vesting period (in years) | 3 years | ||||||||||||||||||||
Restricted common stock | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Shares withheld for taxes | 149,595 | ||||||||||||||||||||
Restricted common stock | Chief Executive Officer | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Grants during the period (in shares) | 45,928 | ||||||||||||||||||||
Total grant date fair value | $ | $ 500 | ||||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||||
Number of shares issued in net settlement | 182,467 | ||||||||||||||||||||
Restricted common stock | Chief Executive Officer | Vesting Period One [Member] | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||||
Restricted common stock | Chief Executive Officer | Vesting Period Two [Member] | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||||
Restricted common stock | Chief Executive Officer | Vesting Period Three [Member] | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||||||||
Restricted common stock | Employees | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Grants during the period (in shares) | 298,991 | ||||||||||||||||||||
Total grant date fair value | $ | $ 3,200 | ||||||||||||||||||||
Vesting percentage | 33.00% | ||||||||||||||||||||
Performance-based restricted stock | Chief executive officer | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Vesting period (in years) | 4 years | ||||||||||||||||||||
Performance-based restricted stock | Chief Executive Officer | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Total grant date fair value | $ | $ 100 | ||||||||||||||||||||
Vesting period (in years) | 4 years | ||||||||||||||||||||
Restricted stock vested during period (in shares) | 357,569 | 421,348 | |||||||||||||||||||
Number of shares issued in net settlement | 215,014 | ||||||||||||||||||||
Performance-based restricted stock | Chief Executive Officer | Maximum | |||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Grants during the period (in shares) | 275,569 | ||||||||||||||||||||
8.25% Series A preferred stock | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.25% | 8.25% | 8.25% | ||||||||||||||||||
7.75% Series B preferred stock | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 7.75% | 7.75% | 7.75% | ||||||||||||||||||
8.50% Series C preferred stock | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.50% | 8.50% | 8.50% | ||||||||||||||||||
Common Stock | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Number of common stock sold (in shares) | 3,579,266 | 187,000 | 6,887,274 | 9,387,000 | |||||||||||||||||
Number of shares purchased | 1,625,777 | 920,000 | |||||||||||||||||||
Repurchase of common stock | $ | $ 16 | $ 9 | |||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||
Number of shares purchased | 1,625,777 | 920,000 | |||||||||||||||||||
Distributions | |||||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.32 | $ 0.31 | $ 0.30 | $ 0.30 | |||||||||||||||||
Common Stock | Board of Directors | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Number of common stock sold (in shares) | 100,000,000 | ||||||||||||||||||||
Deferred Compensation | |||||||||||||||||||||
Grants during the period (in shares) | 36,396 | ||||||||||||||||||||
Total grant date fair value | $ | $ 400 | ||||||||||||||||||||
Preferred Stock | 8.25% Series A preferred stock | |||||||||||||||||||||
Distributions | |||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.515625 | $ 0.515625 | $ 0.515625 | ||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.25% | ||||||||||||||||||||
Preferred Stock | 7.75% Series B preferred stock | |||||||||||||||||||||
Distributions | |||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.484375 | 0.484375 | 0.484375 | ||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 7.75% | ||||||||||||||||||||
Preferred Stock | 8.50% Series C preferred stock | |||||||||||||||||||||
Distributions | |||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.53125 | $ 0.53125 | $ 0.53125 | ||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 8.50% | ||||||||||||||||||||
Operating Partnership Units | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Number of share redeemed | 2,736,894 | ||||||||||||||||||||
Value of shares redeemed | $ | $ 29,700 | ||||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | ||||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | |||||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||
Number of preferred stock shares paired with each OP units | 1 | ||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||||
Number of vote per share of Special Voting Preferred Shares | Vote | 1 | 1 | |||||||||||||||||||
OP units outstanding (in shares) | 17,632,371 | 17,632,371 | |||||||||||||||||||
Voting power of outstanding stock (as a percent) | 13.20% | ||||||||||||||||||||
OP Units redeemed | 2,736,894 | ||||||||||||||||||||
5.25% Convertible Notes | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Shares issued in connection with exchange of convertible debt notes (in shares) | 321,412 | ||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||||||
5.375% Convertible Notes | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Shares issued in connection with exchange of convertible debt notes (in shares) | 41,601 | ||||||||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||||||||||||||||||
6.50% Convertible Notes | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Interest rate (as a percent) | 6.50% | ||||||||||||||||||||
Share repurchase | Common Stock | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Number of shares purchased | 993,106 | ||||||||||||||||||||
Repurchase of common stock | $ | $ 3,900 | ||||||||||||||||||||
Noncontrolling Interest | |||||||||||||||||||||
Number of shares purchased | 993,106 | ||||||||||||||||||||
At-The-Market | Common Stock | |||||||||||||||||||||
Common stock | |||||||||||||||||||||
Number of shares available under an "At-The-Market" equity offering with JMP Securities LLC | 7,300,000 | 7,300,000 | 10,000,000 | ||||||||||||||||||
Issued price per share (in dollars per share) | $ / shares | $ 3.98 | ||||||||||||||||||||
Number of common stock sold (in shares) | 6,887,274 | ||||||||||||||||||||
Proceeds from issuance of shares under public offering | $ | $ 78,500 |
Equity, Earnings Per Share ("EP
Equity, Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Basic | |||||
Net (loss) income attributable to common stockholders | $ 81,997 | $ 33,965 | $ 66,778 | $ 85,532 | |
Weighted average shares outstanding (in shares) | 113,766,446 | 94,486,839 | 111,775,436 | 89,899,074 | |
Net (loss) income per common share (in dollars per share) | $ 0.72 | $ 0.36 | $ 0.60 | $ 0.95 | |
Diluted | |||||
Net income attributable to noncontrolling interest | $ 13,836 | $ 7,363 | $ 11,012 | $ 19,429 | |
Net (loss) income attributable to common stockholders and noncontrolling interest | $ 95,833 | $ 41,328 | $ 77,790 | $ 104,961 | |
Weighted average shares outstanding (in shares) | 113,766,446 | 94,486,839 | 111,775,436 | 89,899,074 | |
Dilutive effect of OP units (in shares) | 19,196,660 | 20,484,094 | 19,993,983 | 20,508,205 | |
Dilutive effect of restricted stock units (in shares) | 1,029,668 | 1,427,329 | 600,648 | 1,405,776 | |
Dilutive effect of convertible notes (in shares) | 4,313 | 1,069,782 | 31,248 | 1,220,913 | |
Weighted average shares outstanding ( in shares) | 133,997,087 | 117,468,044 | 132,401,315 | 113,033,968 | |
Net (loss) income per common share (in dollars per share) | $ 0.72 | $ 0.35 | $ 0.59 | $ 0.93 | |
Chief executive officer | Performance-based restricted stock | |||||
Diluted | |||||
Vesting period (in years) | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Contingency [Line Items] | ||||
Provision from income taxes | $ 17,785 | $ 6,623 | $ 15,493 | $ 10,963 |
Deferred tax benefit | 3,900 | 2,200 | 5,172 | 1,026 |
Current tax provision | $ 13,900 | $ 4,400 | $ 20,700 | $ 12,000 |
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Federal income tax rate (as a percent) | 90.00% |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties, Shared Services Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Former manager | Support Services | ||||
Agreements and transactions with related parties | ||||
Costs for services to related party | $ 0.6 | $ 0.6 | $ 1.8 | $ 2.1 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties, Other Related Party (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2018USD ($)propertyloan | Sep. 30, 2020USD ($)itemshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)propertyloanitem | Dec. 31, 2016USD ($)propertyshares | Dec. 31, 2015USD ($) | Jul. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Agreements and transactions with related parties | ||||||||||||||||
Due to related party | $ 802 | $ 802 | $ 13,100 | |||||||||||||
Due from Related Parties | 23,814 | 23,814 | 10,651 | |||||||||||||
Entitled to annual fee | $ 300 | $ 300 | ||||||||||||||
Equity participation interest (as a percentage) | 33.00% | 33.00% | ||||||||||||||
Income from equity affiliates | $ 32,358 | $ 3,718 | $ 56,758 | $ 9,133 | ||||||||||||
Residential Mortgage Banking Company | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Maximum percentage of guaranty provided by the Company in relation to the settlement | 50.00% | |||||||||||||||
Preferred equity investments | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Equity investment | 7,800 | 7,800 | ||||||||||||||
Bridge loans | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | 35,000 | 35,000 | ||||||||||||||
Bridge Loan Several Multifamily Properties [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 37,500 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 85.00% | |||||||||||||||
Bridge Loan Six Multifamily Properties [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
UPB converted to a mezzanine loan | $ 2,000 | |||||||||||||||
Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 12,900 | |||||||||||||||
Lexford Portfolio | Maturity date of March 2030 | Private Label | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 34,600 | |||||||||||||||
Fixed rate of interest (as a percent) | 3.30% | |||||||||||||||
Lexford Portfolio | Preferred equity investments | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Income from equity affiliates | 700 | |||||||||||||||
Lexford Portfolio | Bridge loans | Maturity Date Of June 2021 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Paydowns of principal made by borrower | $ 250,000 | |||||||||||||||
Base spread (as a percent) | 4.00% | |||||||||||||||
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners | 50,000 | 50,000 | ||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mature date of April 2030 | Private Label | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 14,800 | |||||||||||||||
Fixed rate of interest (as a percent) | 3.10% | |||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mezzanine loans | Mature date of April 2030 | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 3,400 | |||||||||||||||
Fixed rate of interest (as a percent) | 9.00% | |||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Amount invested | 10,900 | 10,900 | $ 30,000 | |||||||||||||
Ownership interest (as a percent) | 18.00% | |||||||||||||||
Interest income recorded | 1,600 | |||||||||||||||
Loss on investment | 100 | 600 | ||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | Private Label | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of ownership interest of related party in the entity | 100.00% | |||||||||||||||
Fixed rate of interest (as a percent) | 3.735% | |||||||||||||||
Amount of loan to related party | $ 15,600 | |||||||||||||||
Unaffiliated borrower | AMAC III | Mezzanine loans | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Refinanced loan amount | 400 | 400 | ||||||||||||||
ACM / Our "Former Manager" | Residential Mortgage Banking Company | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Noncontrolling interest in equity method investment acquired (as a percent) | 50.00% | |||||||||||||||
Indirect ownership percentage | 22.5% | |||||||||||||||
Acquisition purchase price | $ 9,600 | |||||||||||||||
Income from equity affiliates | $ 32,300 | 2,600 | $ 56,100 | 6,100 | ||||||||||||
Maximum percentage of guaranty provided by the Company in relation to the settlement | 50.00% | |||||||||||||||
ACM / Our "Former Manager" | ACM Acquisition | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Number of preferred stock shares paired with each OP units | shares | 1 | |||||||||||||||
Number of shares held by related party | shares | 3,898,554 | 3,898,554 | ||||||||||||||
OP units hold as part of acquisition | shares | 11,932,207 | |||||||||||||||
Percentage of voting power held by related party | 11.90% | 11.90% | ||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan Several Multifamily Properties [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 19,500 | |||||||||||||||
Base spread (as a percent) | 4.00% | |||||||||||||||
Interest income recorded | $ 1,000 | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan Several Multifamily Properties [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 2.125% | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan Several Multifamily Properties [Member] | Multifamily | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Interest income recorded | $ 300 | 300 | 900 | 1,000 | ||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | 34,000 | 34,000 | $ 61,200 | |||||||||||||
Percentage of ownership interest of related party in the entity | 10.00% | |||||||||||||||
Interest income recorded | 300 | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 4.50% | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Minimum | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 2.00% | |||||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2022 | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 35,300 | 34,000 | 34,000 | |||||||||||||
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2022 | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Variable rate, spread (as a percent) | 350.00% | |||||||||||||||
Consortium of investors including an immediate family member of our officers | Multifamily | Fannie Mae | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 5.00% | |||||||||||||||
Principal amount | $ 46,900 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 17.60% | |||||||||||||||
Consortium of investors including an immediate family member of our officers | Maximum | Multifamily | Fannie Mae | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Interest income recorded | $ 100 | |||||||||||||||
Consortium of investors including an immediate family member of our officers | Bridge Loan One Multifamily Property [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 7,000 | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Preferred equity investments | Maturity Date November 2018 Extended From May 2018 [Member] | Multifamily | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Equity investment | $ 5,200 | |||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Due to related party | $ 9,400 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | |||||||||||||||
Interest income recorded | 100 | 200 | 400 | 400 | ||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 5.00% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | Minimum | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 1.25% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of June 2020 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Due to related party | $ 32,800 | |||||||||||||||
Percentage of ownership after transaction | 90.00% | |||||||||||||||
Interest income recorded | 600 | 1,900 | ||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of June 2020 [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 5.00% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of June 2020 [Member] | Minimum | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 1.13% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 21,700 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 75.00% | |||||||||||||||
Interest income recorded | 300 | 400 | 1,000 | 1,000 | ||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 4.75% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | Minimum | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 1.25% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Interest income recorded | 300 | 600 | ||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 31,100 | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 4.00% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 1.80% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 28,000 | |||||||||||||||
Number of properties owned | property | 2 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 45.00% | |||||||||||||||
Base spread (as a percent) | 5.25% | |||||||||||||||
Interest income recorded | $ 500 | 600 | $ 1,400 | 1,700 | ||||||||||||
Number of bridge loans originated | item | 2 | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
LIBOR floor (as a percentage) | 1.24% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of Fourth Quarter 2020 [Member] | Maximum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
LIBOR floor (as a percentage) | 1.54% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date January 2019 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 12,700 | |||||||||||||||
Number of properties owned | property | 2 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | |||||||||||||||
Base spread (as a percent) | 4.50% | |||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date January 2019 [Member] | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 0.25% | |||||||||||||||
Chief executive officer | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5.00% | 5.00% | ||||||||||||||
Mr. Ivan Kaufman | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of our Former Manager's outstanding membership interest of related party in another related party | 35.00% | 35.00% | ||||||||||||||
Board of Directors | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Number of portfolios of multifamily properties | item | 2 | 2 | ||||||||||||||
Board of Directors | Ginkgo Investment Company LLC [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of managing member | 33.00% | |||||||||||||||
Immediate family member of chief executive officer | Bridge loans | Land | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 17,700 | |||||||||||||||
Paydowns of principal made by borrower | $ 4,700 | |||||||||||||||
Percentage of ownership interest of related party in the entity | 10.80% | |||||||||||||||
Interest income recorded | 400 | $ 100 | 1,500 | |||||||||||||
Fixed rate of interest (as a percent) | 10.00% | |||||||||||||||
Immediate family member of chief executive officer | Bridge Loan Several Multifamily Properties [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of ownership interest of related party in the entity | 23.90% | |||||||||||||||
Interest income recorded | 700 | 1,400 | 2,000 | |||||||||||||
Immediate family member of chief executive officer | Bridge Loan Several Multifamily Properties [Member] | LIBOR | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 4.25% | |||||||||||||||
Immediate family member of chief executive officer | Bridge Loan Several Multifamily Properties [Member] | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Base spread (as a percent) | 2.375% | |||||||||||||||
Lexford Portfolio | Preferred equity investments | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Income from equity affiliates | 1,200 | 1,100 | ||||||||||||||
Lexford Portfolio | Bridge loans | Maturity Date Of June 2021 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 280,500 | |||||||||||||||
Interest income recorded | $ 500 | 1,100 | 500 | 9,100 | ||||||||||||
Maximum exposure under guaranty | 613,900 | 613,900 | ||||||||||||||
Number of bridge loans originated | loan | 12 | |||||||||||||||
Number of multifamily properties renovated | property | 72 | |||||||||||||||
Certain Officers And Managers [Member] | Mezzanine loans | Maturity Date January 2024 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | |||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Principal amount | $ 48,000 | |||||||||||||||
Number of properties owned | property | 6 | |||||||||||||||
Base spread (as a percent) | 4.50% | |||||||||||||||
Interest income recorded | $ 100 | $ 100 | $ 200 | $ 200 | ||||||||||||
Number of bridge loans paid off | loan | 4 | 1 | ||||||||||||||
Proceeds from repayment in full | $ 10,900 | $ 28,300 | $ 6,800 | |||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | Minimum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of ownership interest of related party in the entity | 10.50% | |||||||||||||||
Base spread (as a percent) | 0.25% | |||||||||||||||
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date September 2019 [Member] | Maximum | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Percentage of ownership interest of related party in the entity | 12.00% | |||||||||||||||
Ginkgo Investment Company LLC [Member] | Fannie Mae | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Loan purchased a multifamily apartment complex which assumed | $ 8,300 | |||||||||||||||
Percentage of maximum loss-sharing obligation unpaid principal balance | 20.00% | |||||||||||||||
Percentage of loan assumption fee | 1.00% | |||||||||||||||
Percentage of ownership after transaction | 3.60% | |||||||||||||||
Ginkgo Investment Company LLC [Member] | Maximum | Fannie Mae | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Servicing revenue | $ 100 | |||||||||||||||
Consortium Of Affiliated Investors [Member] | Lexford Portfolio | ||||||||||||||||
Agreements and transactions with related parties | ||||||||||||||||
Management fee, percentage of gross revenues of underlying properties | 4.75% |
Segment Information - Statement
Segment Information - Statements of Income (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | |
Segment Information | ||||
Interest income | $ 81,701 | $ 80,509 | $ 253,307 | $ 233,957 |
Interest expense | 37,888 | 48,064 | 129,172 | 138,213 |
Net interest income | 43,813 | 32,445 | 124,135 | 95,744 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 19,895 | 21,298 | 60,566 | 51,897 |
Mortgage servicing rights | 42,357 | 29,911 | 96,708 | 62,852 |
Servicing revenue | 25,764 | 25,916 | 76,285 | 76,685 |
Amortization of MSRs | (12,416) | (12,126) | (36,129) | (36,731) |
Property operating income | 1,033 | 2,237 | 3,976 | 8,187 |
Loss on derivative instruments, net | (753) | (5,003) | (58,852) | (6,726) |
Other income, net | 1,050 | 325 | 3,404 | 1,314 |
Total other revenue | 76,930 | 62,558 | 145,958 | 157,478 |
Other expenses: | ||||
Employee compensation and benefits | 32,962 | 32,861 | 101,652 | 93,647 |
Selling and administrative | 9,356 | 10,882 | 29,013 | 31,122 |
Property operating expenses | 1,300 | 2,563 | 4,778 | 7,649 |
Depreciation and amortization | 1,922 | 1,841 | 5,830 | 5,663 |
Impairment loss on real estate owned | 1,000 | |||
Provision for loss sharing (net of recoveries) | (2,227) | 735 | 21,706 | 1,557 |
Provision for credit losses (net of recoveries) | (7,586) | 59,510 | ||
Total other expenses | 35,727 | 48,882 | 222,489 | 140,638 |
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 85,016 | 46,121 | 47,604 | 112,584 |
Loss on extinguishment of debt | (3,546) | (128) | ||
Loss on sale of real estate | (1,868) | (1,868) | ||
Income from equity affiliates | 32,358 | 3,718 | 56,758 | 9,133 |
Provision for income taxes | (17,785) | (6,623) | (15,493) | (10,963) |
Net income | 97,721 | 43,216 | 83,455 | 110,626 |
Preferred stock dividends | 1,888 | 1,888 | 5,665 | 5,665 |
Net income attributable to noncontrolling interest | 13,836 | 7,363 | 11,012 | 19,429 |
Net income attributable to common stockholders | 81,997 | 33,965 | $ 66,778 | $ 85,532 |
Reporting segments | item | 2 | 2 | ||
Operating segments | Structured Business | ||||
Segment Information | ||||
Interest income | 75,471 | 73,829 | $ 228,243 | $ 215,782 |
Interest expense | 35,252 | 43,209 | 115,390 | 126,182 |
Net interest income | 40,219 | 30,620 | 112,853 | 89,600 |
Other revenue: | ||||
Property operating income | 1,033 | 2,237 | 3,976 | 8,187 |
Loss on derivative instruments, net | 118 | (308) | (3,176) | (668) |
Other income, net | 1,050 | 325 | 3,347 | 1,314 |
Total other revenue | 2,201 | 2,254 | 4,147 | 8,833 |
Other expenses: | ||||
Employee compensation and benefits | 8,873 | 7,769 | 28,880 | 23,048 |
Selling and administrative | 4,665 | 5,352 | 12,647 | 15,101 |
Property operating expenses | 1,300 | 2,563 | 4,778 | 7,649 |
Depreciation and amortization | 598 | 503 | 1,845 | 1,524 |
Impairment loss on real estate owned | 1,000 | |||
Provision for credit losses (net of recoveries) | (6,065) | 58,383 | ||
Total other expenses | 9,371 | 16,187 | 106,533 | 48,322 |
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 33,049 | 16,687 | 10,467 | 50,111 |
Loss on extinguishment of debt | (3,546) | (128) | ||
Loss on sale of real estate | (1,868) | (1,868) | ||
Income from equity affiliates | 32,358 | 3,718 | 56,758 | 9,133 |
Provision for income taxes | (6,494) | (9,337) | ||
Net income | 57,045 | 20,405 | 52,474 | 59,116 |
Preferred stock dividends | 1,888 | 1,888 | 5,665 | 5,665 |
Net income attributable to common stockholders | 55,157 | 18,517 | 46,809 | 53,451 |
Operating segments | Agency Business | ||||
Segment Information | ||||
Interest income | 6,230 | 6,680 | 25,064 | 18,175 |
Interest expense | 2,636 | 4,855 | 13,782 | 12,031 |
Net interest income | 3,594 | 1,825 | 11,282 | 6,144 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 19,895 | 21,298 | 60,566 | 51,897 |
Mortgage servicing rights | 42,357 | 29,911 | 96,708 | 62,852 |
Servicing revenue | 25,764 | 25,916 | 76,285 | 76,685 |
Amortization of MSRs | (12,416) | (12,126) | (36,129) | (36,731) |
Loss on derivative instruments, net | (871) | (4,695) | (55,676) | (6,058) |
Other income, net | 57 | |||
Total other revenue | 74,729 | 60,304 | 141,811 | 148,645 |
Other expenses: | ||||
Employee compensation and benefits | 24,089 | 25,092 | 72,772 | 70,599 |
Selling and administrative | 4,691 | 5,530 | 16,366 | 16,021 |
Depreciation and amortization | 1,324 | 1,338 | 3,985 | 4,139 |
Provision for loss sharing (net of recoveries) | (2,227) | 735 | 21,706 | 1,557 |
Provision for credit losses (net of recoveries) | (1,521) | 1,127 | ||
Total other expenses | 26,356 | 32,695 | 115,956 | 92,316 |
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 51,967 | 29,434 | 37,137 | 62,473 |
Provision for income taxes | (11,291) | (6,623) | (6,156) | (10,963) |
Net income | 40,676 | 22,811 | 30,981 | 51,510 |
Net income attributable to common stockholders | 40,676 | 22,811 | 30,981 | 51,510 |
Other / Eliminations | ||||
Other expenses: | ||||
Net income attributable to noncontrolling interest | 13,836 | 7,363 | 11,012 | 19,429 |
Net income attributable to common stockholders | $ (13,836) | $ (7,363) | $ (11,012) | $ (19,429) |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||||
Cash and cash equivalents | $ 192,204 | $ 299,687 | $ 135,285 | $ 160,063 |
Restricted cash | 110,263 | 210,875 | $ 190,046 | $ 180,606 |
Loans and investments, net | 4,910,872 | 4,189,960 | ||
Loans held-for-sale, net | 631,138 | 861,360 | ||
Capitalized mortgage servicing rights, net | 335,235 | 286,420 | ||
Securities held-to-maturity, net | 118,260 | 88,699 | ||
Investments in equity affiliates | 82,322 | 41,800 | ||
Goodwill and other intangible assets | 106,716 | 110,700 | ||
Other assets | 202,208 | 149,659 | ||
Total assets | 6,689,218 | 6,239,160 | ||
Liabilities: | ||||
Debt obligations | 5,036,437 | 4,621,938 | ||
Allowance for loss-sharing obligations | 71,160 | 34,648 | ||
Other liabilities | 258,385 | 226,547 | ||
Total liabilities | 5,365,982 | 4,883,133 | ||
Structured Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 103,655 | 264,468 | ||
Restricted cash | 103,412 | 208,926 | ||
Loans and investments, net | 4,910,872 | 4,189,960 | ||
Securities held-to-maturity, net | 20,000 | 20,000 | ||
Investments in equity affiliates | 82,322 | 41,800 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets | 154,509 | 118,175 | ||
Total assets | 5,387,270 | 4,855,829 | ||
Liabilities: | ||||
Debt obligations | 4,468,886 | 3,878,343 | ||
Other liabilities | 194,289 | 171,004 | ||
Total liabilities | 4,663,175 | 4,049,347 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 88,549 | 35,219 | ||
Restricted cash | 6,851 | 1,949 | ||
Loans held-for-sale, net | 631,138 | 861,360 | ||
Capitalized mortgage servicing rights, net | 335,235 | 286,420 | ||
Securities held-to-maturity, net | 98,260 | 68,699 | ||
Goodwill and other intangible assets | 94,216 | 98,200 | ||
Other assets | 47,699 | 31,484 | ||
Total assets | 1,301,948 | 1,383,331 | ||
Liabilities: | ||||
Debt obligations | 567,551 | 743,595 | ||
Allowance for loss-sharing obligations | 71,160 | 34,648 | ||
Other liabilities | 64,096 | 55,543 | ||
Total liabilities | $ 702,807 | $ 833,786 |
Segment Information - Originati
Segment Information - Origination Data (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Segment Information | |||||
Loans committed | $ 5,161,905 | $ 5,161,905 | $ 5,161,905 | ||
Origination Volumes | $ 1,528,551 | $ 1,477,436 | $ 4,002,492 | $ 3,626,528 | |
Loan Sales Data: | |||||
Sales margin (fee-based services as a % of loan sales) | 1.63% | 1.43% | 1.45% | 1.48% | |
MSR rate (MSR income as a % of loan commitments) | 2.77% | 2.02% | 2.42% | 1.73% | |
Structured Business | |||||
Segment Information | |||||
New loan originations | $ 291,758 | $ 541,474 | $ 1,448,468 | $ 1,971,872 | |
Loan payoffs / paydowns | 206,028 | 456,847 | 640,494 | 1,239,449 | |
Structured Business | SFR bonds | |||||
Segment Information | |||||
Number of loans commited by Entity | loan | 2 | ||||
Loans committed | $ 75,300 | 75,300 | 75,300 | ||
Agency Business | |||||
Segment Information | |||||
Origination Volumes | 1,475,878 | 1,415,816 | 3,958,406 | 3,550,015 | |
Loan Sales Data: | |||||
Loan Sales | 1,219,462 | 1,488,430 | 4,169,411 | 3,513,243 | |
Agency Business | Fannie Mae | |||||
Segment Information | |||||
Origination Volumes | 1,117,679 | 1,097,095 | 2,839,833 | 2,581,958 | |
Loan Sales Data: | |||||
Loan Sales | 1,038,053 | 1,141,780 | 2,856,020 | 2,556,781 | |
Agency Business | Freddie Mac | |||||
Segment Information | |||||
Origination Volumes | 252,014 | 203,981 | 587,445 | 631,324 | |
Loan Sales Data: | |||||
Loan Sales | 116,628 | 262,735 | 468,019 | 663,053 | |
Agency Business | FHA | |||||
Segment Information | |||||
Origination Volumes | 100,345 | 193,821 | 44,668 | ||
Loan Sales Data: | |||||
Loan Sales | 64,781 | 49,915 | 118,218 | 82,085 | |
Agency Business | Private Label | |||||
Segment Information | |||||
Origination Volumes | $ 5,840 | 80,740 | 337,307 | 80,740 | |
Loan Sales Data: | |||||
Loan Sales | $ 727,154 | ||||
Agency Business | CMBS/Conduit | |||||
Segment Information | |||||
Origination Volumes | 34,000 | 211,325 | |||
Loan Sales Data: | |||||
Loan Sales | $ 34,000 | $ 211,324 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Segment Information | ||
UPB of Servicing Portfolio | $ 22,561,564 | $ 20,059,077 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.448% | 0.438% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years 2 months 12 days | 8 years 9 months 18 days |
Fannie Mae | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 16,462,041 | $ 14,832,844 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.516% | 0.493% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 4 months 24 days | 7 years 9 months 18 days |
Freddie Mac | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 4,687,197 | $ 4,534,714 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.288% | 0.30% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 10 years 4 months 24 days | 10 years 7 months 6 days |
Private Label | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 727,063 | |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.20% | |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years 4 months 24 days | |
FHA | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 685,263 | $ 691,519 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.171% | 0.154% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 20 years 4 months 24 days | 18 years 8 months 12 days |