Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 142,156,441 | |
Entity Central Index Key | 0001253986 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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 | |
Series D Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share | |
Trading Symbol | ABR-PD | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 215,658 | $ 339,528 |
Restricted cash | 249,090 | 197,470 |
Loans and investments, net (allowance for credit losses: $138,447 and $148,329, respectively) | 7,213,915 | 5,285,868 |
Loans held-for-sale, net | 457,647 | 986,919 |
Capitalized mortgage servicing rights, net | 418,653 | 379,974 |
Securities held-to-maturity, net (allowance for credit losses: $2,115 and $1,644, respectively) | 114,696 | 95,524 |
Investments in equity affiliates | 86,253 | 74,274 |
Due from related party | 11,084 | 12,449 |
Goodwill and other intangible assets | 103,106 | 105,451 |
Other assets | 190,698 | 183,529 |
Total assets | 9,060,800 | 7,660,986 |
Liabilities and Equity: | ||
Credit and repurchase facilities | 2,015,188 | 2,234,883 |
Collateralized loan obligations | 3,484,088 | 2,517,309 |
Senior unsecured notes | 836,074 | 662,843 |
Convertible senior unsecured notes, net | 270,917 | 267,973 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 142,013 | 141,656 |
Due to related party | 6,184 | 2,365 |
Due to borrowers | 68,384 | 89,325 |
Allowance for loss-sharing obligations | 65,645 | 64,303 |
Other liabilities | 215,540 | 197,644 |
Total liabilities | 7,104,033 | 6,178,301 |
Commitments and contingencies (Note 13) | ||
Arbor Realty Trust, Inc. stockholders' equity: | ||
Preferred Stock, Value, Issued | 222,627 | 89,472 |
Common stock, $0.01 par value: 500,000,000 shares authorized - 141,738,609 and 123,181,173 shares issued and outstanding, respectively | 1,417 | 1,232 |
Additional paid-in capital | 1,620,898 | 1,317,109 |
Accumulated deficit | (12,084) | (63,442) |
Total Arbor Realty Trust, Inc. stockholders' equity | 1,832,858 | 1,344,371 |
Noncontrolling interest | 123,909 | 138,314 |
Total equity | 1,956,767 | 1,482,685 |
Total liabilities and equity | $ 9,060,800 | $ 7,660,986 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Loans and investments, net allowance for credit losses | $ 138,447 | $ 138,447 | $ 148,329 |
Securities held-to-maturity, net allowance for credit losses | $ 2,115 | $ 2,115 | $ 1,644 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 141,738,609 | 141,738,609 | 123,181,173 |
Common stock, shares outstanding (in shares) | 141,738,609 | 141,738,609 | 123,181,173 |
Assets | $ 9,060,800 | $ 9,060,800 | $ 7,660,986 |
Liabilities | 7,104,033 | 7,104,033 | 6,178,301 |
Consolidated variable interest entities | |||
Assets | 4,250,848 | 4,250,848 | 3,134,447 |
Liabilities | $ 3,488,040 | $ 3,488,040 | $ 2,520,064 |
Special voting preferred shares | |||
Preferred stock, shares issued (in shares) | 16,352,233 | 16,352,233 | 17,560,633 |
Preferred stock, shares outstanding (in shares) | 16,352,233 | 16,352,233 | 17,560,633 |
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 | $ 38,788 |
Preferred stock, shares issued (in shares) | 0 | 0 | 1,551,500 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 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 | $ 31,500 |
Preferred stock, shares issued (in shares) | 0 | 0 | 1,260,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 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 | $ 22,500 |
Preferred stock, shares issued (in shares) | 0 | 0 | 900,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 900,000 |
6.375% Series D preferred stock | |||
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% | 6.375% |
Preferred stock, aggregate liquidation preference | $ 230,000 | $ 230,000 | $ 230,000 |
Preferred stock, shares issued (in shares) | 9,200,000 | 9,200,000 | 0 |
Preferred stock, shares outstanding (in shares) | 9,200,000 | 9,200,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Interest income | $ 105,148 | $ 83,080 | $ 196,292 | $ 171,606 |
Interest expense | 46,378 | 41,302 | 88,562 | 91,284 |
Net interest income | 58,770 | 41,778 | 107,730 | 80,322 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 40,901 | 26,366 | 69,768 | 40,671 |
Mortgage servicing rights | 26,299 | 32,417 | 63,235 | 54,351 |
Servicing revenue, net | 15,315 | 13,506 | 30,850 | 26,809 |
Property operating income | 751 | 2,943 | ||
Loss on derivative instruments, net | (2,607) | (7,368) | (5,828) | (58,099) |
Other income, net | 1,263 | 1,049 | 1,943 | 2,351 |
Total other revenue | 81,171 | 66,721 | 159,968 | 69,026 |
Other expenses: | ||||
Employee compensation and benefits | 43,700 | 34,438 | 86,674 | 68,690 |
Selling and administrative | 11,133 | 8,606 | 21,947 | 19,658 |
Property operating expenses | 129 | 1,035 | 272 | 3,478 |
Depreciation and amortization | 1,788 | 1,961 | 3,543 | 3,908 |
Provision for loss sharing (net of recoveries) | 549 | 2,395 | 2,201 | 23,932 |
Provision for credit losses (net of recoveries) | (7,815) | 12,714 | (8,890) | 67,096 |
Total other expenses | 49,484 | 61,149 | 105,747 | 186,762 |
Income (loss) before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 90,457 | 47,350 | 161,951 | (37,414) |
Loss on extinguishment of debt | (1,592) | (1,370) | (3,546) | |
Gain on sale of real estate | 1,228 | |||
Income from equity affiliates | 4,759 | 20,408 | 27,010 | 24,401 |
(Provision for) benefit from income taxes | (10,959) | (12,077) | (23,451) | 2,293 |
Net income (loss) | 84,257 | 54,089 | 165,368 | (14,266) |
Preferred stock dividends | 6,414 | 1,888 | 8,303 | 3,777 |
Net income (loss) attributable to noncontrolling interest | 8,717 | 8,110 | 18,459 | (2,824) |
Net income (loss) attributable to common stockholders | $ 69,126 | $ 44,091 | $ 138,606 | $ (15,219) |
Basic earnings (loss) per common share | $ 0.51 | $ 0.40 | $ 1.06 | $ (0.14) |
Diluted earnings (loss) per common share | $ 0.51 | $ 0.40 | $ 1.06 | $ (0.14) |
Weighted average shares outstanding: | ||||
Basic | 135,262,197 | 110,745,572 | 130,276,499 | 110,768,992 |
Diluted | 153,616,591 | 131,882,398 | 148,818,030 | 131,166,018 |
Dividends declared per common share (in dollars per share) | $ 0.34 | $ 0.30 | $ 0.67 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Preferred Stock6.375% Series D preferred stock | 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' Equity6.375% Series D preferred stock | Total Arbor Realty Trust, Inc. Stockholders' EquityCumulative-effect adjustment | Total Arbor Realty Trust, Inc. Stockholders' EquityBalance as adjusted for the adoption of ASU 2016-13 | Total Arbor Realty Trust, Inc. Stockholders' Equity | Noncontrolling InterestCumulative-effect adjustment | Noncontrolling InterestBalance as adjusted for the adoption of ASU 2016-13 | Noncontrolling Interest | 6.375% Series D preferred stock | Cumulative-effect adjustment | Balance as adjusted for the adoption of ASU 2016-13 | Total |
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 stock | $ 33 | 37,975 | 38,008 | 38,008 | |||||||||||||||||
Issuance of stock (in shares) | 3,308,008 | ||||||||||||||||||||
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 | $ 5 | 3,796 | 3,801 | 3,801 | |||||||||||||||||
Stock-based compensation, net (in shares) | 460,003 | ||||||||||||||||||||
Distributions - common stock | (66,920) | (66,920) | (66,920) | ||||||||||||||||||
Distributions - preferred stock | (3,777) | (3,777) | (3,777) | ||||||||||||||||||
Distributions - noncontrolling interest | (12,222) | (12,222) | |||||||||||||||||||
Redemption of operating partnership units | $ (1) | (1,599) | (1,600) | (1,600) | |||||||||||||||||
Redemption of operating partnership units (in shares) | 114,829 | ||||||||||||||||||||
Net income (loss) | (11,442) | (11,442) | (2,824) | (14,266) | |||||||||||||||||
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 | |||||||||||||||||||
Balance at Mar. 31, 2020 | $ 89,500 | $ 1,106 | 1,163,161 | (177,589) | 1,076,178 | 149,872 | 1,226,050 | ||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 24,080,765 | 110,608,903 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||
Issuance of stock | $ 19 | 18,565 | 18,584 | 18,584 | |||||||||||||||||
Issuance of stock (in shares) | 1,958,008 | ||||||||||||||||||||
Repurchase of common stock | $ (3) | (1,467) | (1,470) | (1,470) | |||||||||||||||||
Repurchase of common stock (in shares) | (376,000) | ||||||||||||||||||||
Issuance of common stock from convertible debt | 276 | 276 | 276 | ||||||||||||||||||
Issuance of common stock from convertible debt (in shares) | 2,153 | ||||||||||||||||||||
Stock-based compensation, net | 1,914 | 1,914 | 1,914 | ||||||||||||||||||
Stock-based compensation, net (in shares) | 18,397 | ||||||||||||||||||||
Distributions - common stock | (33,671) | (33,671) | (33,671) | ||||||||||||||||||
Distributions - preferred stock | (1,884) | (1,884) | (1,884) | ||||||||||||||||||
Distributions - noncontrolling interest | (6,112) | (6,112) | |||||||||||||||||||
Net income (loss) | 45,979 | 45,979 | 8,110 | 54,089 | |||||||||||||||||
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 | |||||||||||||||||||
Balance at Dec. 31, 2020 | $ 89,472 | $ 1,232 | 1,317,109 | (63,442) | 1,344,371 | 138,314 | 1,482,685 | ||||||||||||||
Balance (in shares) at Dec. 31, 2020 | 21,272,133 | 123,181,173 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||
Issuance of stock | $ 222,463 | $ 194 | 327,820 | $ 222,463 | 328,014 | $ 222,463 | 328,014 | ||||||||||||||
Issuance of stock (in shares) | 9,200,000 | 19,422,879 | |||||||||||||||||||
Repurchase of common stock | $ (14) | (23,446) | (23,460) | (23,460) | |||||||||||||||||
Repurchase of common stock (in shares) | (1,399,999) | ||||||||||||||||||||
Redemption of preferred stock | $ (89,296) | (89,296) | (89,296) | ||||||||||||||||||
Redemption of preferred stock (in shares) | (3,711,500) | ||||||||||||||||||||
Stock-based compensation, net | $ 5 | (585) | (580) | (580) | |||||||||||||||||
Stock-based compensation, net (in shares) | 534,556 | ||||||||||||||||||||
Distributions - common stock | (87,240) | (87,240) | (87,240) | ||||||||||||||||||
Distributions - preferred stock | (8,311) | (8,311) | (8,311) | ||||||||||||||||||
Distributions - noncontrolling interest | (11,766) | (11,766) | |||||||||||||||||||
Redemption of operating partnership units | $ (12) | (12) | (21,098) | (21,110) | |||||||||||||||||
Redemption of operating partnership units (in shares) | (1,208,400) | ||||||||||||||||||||
Net income (loss) | 146,909 | 146,909 | 18,459 | 165,368 | |||||||||||||||||
Balance at Jun. 30, 2021 | $ 222,627 | $ 1,417 | 1,620,898 | (12,084) | 1,832,858 | 123,909 | 1,956,767 | ||||||||||||||
Balance (in shares) at Jun. 30, 2021 | 25,552,233 | 141,738,609 | |||||||||||||||||||
Balance at Mar. 31, 2021 | $ 89,472 | $ 1,337 | 1,473,120 | (35,498) | 1,528,431 | 142,261 | 1,670,692 | ||||||||||||||
Balance (in shares) at Mar. 31, 2021 | 21,272,133 | 133,690,060 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||
Issuance of stock | $ 222,463 | $ 93 | 169,488 | $ 222,463 | 169,581 | $ 222,463 | 169,581 | ||||||||||||||
Issuance of stock (in shares) | 9,200,000 | 9,282,479 | |||||||||||||||||||
Repurchase of common stock | $ (14) | (23,446) | (23,460) | (23,460) | |||||||||||||||||
Repurchase of common stock (in shares) | (1,399,999) | ||||||||||||||||||||
Redemption of preferred stock | $ (89,296) | (89,296) | (89,296) | ||||||||||||||||||
Redemption of preferred stock (in shares) | (3,711,500) | ||||||||||||||||||||
Stock-based compensation, net | $ 1 | 1,736 | 1,737 | 1,737 | |||||||||||||||||
Stock-based compensation, net (in shares) | 166,069 | ||||||||||||||||||||
Distributions - common stock | (45,710) | (45,710) | (45,710) | ||||||||||||||||||
Distributions - preferred stock | (6,416) | (6,416) | (6,416) | ||||||||||||||||||
Distributions - noncontrolling interest | (5,971) | (5,971) | |||||||||||||||||||
Redemption of operating partnership units | $ (12) | (12) | (21,098) | (21,110) | |||||||||||||||||
Redemption of operating partnership units (in shares) | (1,208,400) | ||||||||||||||||||||
Net income (loss) | 75,540 | 75,540 | 8,717 | 84,257 | |||||||||||||||||
Balance at Jun. 30, 2021 | $ 222,627 | $ 1,417 | $ 1,620,898 | $ (12,084) | $ 1,832,858 | $ 123,909 | $ 1,956,767 | ||||||||||||||
Balance (in shares) at Jun. 30, 2021 | 25,552,233 | 141,738,609 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
6.375% Series D preferred stock | ||||
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% | 6.375% | 6.375% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | |||
Net income (loss) | $ 54,089 | $ 165,368 | $ (14,266) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,961 | 3,543 | 3,908 |
Stock-based compensation | 5,375 | 3,801 | |
Amortization and accretion of interest and fees, net | 354 | 3,007 | |
Amortization of capitalized mortgage servicing rights | 11,891 | 28,871 | 23,713 |
Originations of loans held-for-sale | (2,741,453) | (2,452,745) | |
Proceeds from sales of loans held-for-sale, net of gain on sale | 3,324,001 | 2,949,949 | |
Mortgage servicing rights | (32,417) | (63,235) | (54,351) |
Write-off of capitalized mortgage servicing rights from payoffs | 9,459 | 9,570 | |
Provision for loss sharing (net of recoveries) | 2,395 | 2,201 | 23,932 |
Provision for credit losses (net of recoveries) | 12,714 | (8,890) | 67,096 |
Net recoveries (charge-offs) for loss sharing obligations | (859) | 233 | |
Deferred tax provision (benefit) | 10,900 | 4,439 | (9,025) |
Income from equity affiliates | (20,408) | (27,010) | (24,401) |
Distributions from equity affiliates | 18,923 | 1,192 | |
Loss on extinguishment of debt | 1,592 | 1,370 | 3,546 |
Payoffs and paydowns of loans held-for-sale | 2,322 | 62 | |
Changes in operating assets and liabilities | 2,802 | (1,489) | |
Net cash provided by operating activities | 727,581 | 533,732 | |
Investing Activities: | |||
Loans and investments funded, originated and purchased, net | (2,814,170) | (1,117,004) | |
Payoffs and paydowns of loans and investments | 773,163 | 459,489 | |
Proceeds from sale of loans and investments | 110,000 | ||
Deferred fees | 20,141 | 5,835 | |
Investments in real estate, net | (129) | ||
Contributions to equity affiliates | (21,074) | (60) | |
Distributions from equity affiliates | 17,181 | 77 | |
Purchase of securities held-to-maturity, net | (23,747) | (37,927) | |
Payoffs and paydowns of securities held-to-maturity | 5,487 | 5,823 | |
Due to borrowers and reserves | (80,986) | (44,028) | |
Net cash used in investing activities | (2,014,005) | (727,924) | |
Financing activities: | |||
Proceeds from credit facilities and repurchase agreements | 6,393,023 | 4,781,801 | |
Paydowns and payoffs of credit facilities and repurchase agreements | (6,610,333) | (5,222,038) | |
Proceeds from issuance of collateralized loan obligations | 1,329,887 | 668,000 | |
Payoffs and paydowns of collateralized loan obligations | (356,150) | (282,874) | |
Payoffs and paydowns of debt fund | (70,000) | ||
Proceeds from issuance of common stock | 328,014 | 38,008 | |
Proceeds from issuance of preferred stock | 222,463 | ||
Settlements of convertible senior unsecured notes | (22,145) | ||
Proceeds from issuance of senior unsecured notes | 175,000 | 345,750 | |
Redemption of preferred stock | (89,296) | ||
Redemption of operating partnership units | (21,110) | (1,600) | |
Payments of withholding taxes on net settlement of vested stock | (5,955) | ||
Repurchase of common stock | (23,460) | (12,761) | |
Distributions to stockholders | (107,317) | (43,140) | |
Payment of deferred financing costs | (20,592) | (16,342) | |
Net cash provided by financing activities | 1,214,174 | 162,659 | |
Net decrease in cash, cash equivalents and restricted cash | (72,250) | (31,533) | |
Cash, cash equivalents and restricted cash at beginning of period | 536,998 | 510,562 | |
Cash, cash equivalents and restricted cash at end of period | 479,029 | 464,748 | 479,029 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents at beginning of period | 339,528 | 299,687 | |
Restricted cash at beginning of period | 197,470 | 210,875 | |
Cash, cash equivalents and restricted cash at beginning of period | 536,998 | 510,562 | |
Cash and cash equivalents at end of period | 384,182 | 215,658 | 384,182 |
Restricted cash at end of period | 94,847 | 249,090 | 94,847 |
Cash, cash equivalents and restricted cash at end of period | 479,029 | 464,748 | 479,029 |
Supplemental cash flow information: | |||
Cash used to pay interest | 75,568 | 76,294 | |
Cash used to pay taxes | 25,739 | 2,832 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Loans transferred from loans and investment, net to loans held-for-sale | 65,204 | ||
Dividends declared on common stock and operating partnership units | 39,778 | 39,778 | |
Cummulative-effect adjustment (for adoption of credit loss standard) | 28,607 | ||
Issuance of common stock from convertible debt | 93 | ||
Settlements of convertible senior unsecured notes | 4,778 | ||
Fair value of conversion feature of convertible senior unsecured notes | $ (185) | (185) | |
8.25% Series A preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 267 | ||
7.75% Series B preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | 203 | ||
8.50% Series C preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | $ 159 | ||
6.375% Series D preferred stock | |||
Supplemental schedule of non-cash investing and financing activities: | |||
Distributions accrued on preferred stock | $ 1,181 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
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% | |
6.375% Series D preferred stock | ||||
Preferred stock, dividend rate (as a percent) | 6.375% | 6.375% | 6.375% | 6.375% |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
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 (“SFR”) and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages and preferred and direct equity. We also invest in real estate-related joint ventures and may directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, the government-sponsored enterprises, or “GSEs”), the Government National Mortgage Association (“Ginnie Mae”), Federal Housing Authority (“FHA”) and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, “HUD”). We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing (“DUS”) lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer, in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and small balance loan (“SBL”) lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans, and originate and sell finance products through conduit/commercial mortgage-backed securities (“CMBS”) programs. We pool and securitize the Private Label loans and sell certificates in the securitizations to third-party investors, while retaining the servicing rights and the highest risk bottom tranche certificate of the securitization (“APL certificates”). Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the indirect general partner, and ARLP's subsidiaries. We are organized to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. A REIT is generally not subject to federal income tax on that portion of its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS”), which are part of our TRS consolidated group (the “TRS Consolidated Group”) and are subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 2020 Annual Report. Principles of Consolidation These consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 14. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Beginning early 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 have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of June 30, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Our real estate owned assets previously recorded to real estate owned, net on our consolidated balance sheets are now recorded to other assets for all periods presented. Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In December 2019, the Financial Accounting Standards Board issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. First quarter of 2021 The adoption of this guidance did not have a material impact on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2020 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2020. |
Loans and Investments
Loans and Investments | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 6,907,594 94 % 360 4.75 % 18.6 0 % 75 % Preferred equity investments 224,814 3 % 14 6.39 % 44.7 64 % 90 % Mezzanine loans 224,107 3 % 29 6.61 % 36.2 27 % 83 % Other loans (5) 29,414 <1 % 2 4.63 % 54.2 0 % 69 % 7,385,929 100 % 405 4.85 % 20.1 3 % 76 % Allowance for credit losses (138,447) Unearned revenue (33,567) Loans and investments, net $ 7,213,915 December 31, 2020 Bridge loans (4) $ 5,022,509 92 % 263 5.09 % 16.2 0 % 76 % Preferred equity investments 224,928 4 % 14 7.07 % 49.8 64 % 89 % Mezzanine loans 159,242 3 % 29 7.40 % 45.0 32 % 82 % Other loans (5) 68,403 1 % 22 4.95 % 74.8 0 % 69 % 5,475,082 100 % 328 5.23 % 19.2 4 % 77 % Allowance for credit losses (148,329) Unearned revenue (40,885) Loans and investments, net $ 5,285,868 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “accrual rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of June 30, 2021 and December 31, 2020, bridge loans included 77 and 38, respectively, SFR loans with an aggregate UPB of $533.9 million and $309.2 million, respectively, of which $191.5 million and $88.1 million, respectively, was funded. (5) As of June 30, 2021, other loans included 2 variable rate SFR permanent loans and as of December 31, 2020, other loans included 22 SFR permanent loans. During the first quarter of 2021, the Structured Business transferred 21 fixed rate SFR permanent loans with a UPB of $65.2 million to the Agency Business, which represents all fixed rate SFR permanent loans originated. Fixed rate SFR permanent loans are reported through the Agency Business beginning in 2021 and classified as held-for-sale. See Note 4 for further details. Concentration of Credit Risk We are subject to concentration risk in that, at June 30, 2021, the UPB related to 21 loans with five different borrowers represented 12% of total assets. At December 31, 2020, the UPB related to 22 loans with five different borrowers represented 12% of total assets. During both the six months ended June 30, 2021 and the year ended December 31, 2020, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 17 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality. Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the loan agreement. A risk rating of substandard indicates we anticipate the loan may require a modification of some kind. A risk rating of doubtful indicates we expect the loan to underperform over its term, and there could be loss of interest and/or principal. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, market strength or asset quality may result in a rating that is higher or lower than might be indicated by any risk rating matrix. A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of June 30, 2021 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2021 2020 2019 2018 2017 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 1,852,008 $ 753,955 $ 44,035 $ — $ — $ 335 $ 2,650,333 Pass/Watch 699,139 817,032 468,975 121,555 36,000 29,150 2,171,851 Special Mention 50,537 415,935 697,673 111,483 98,138 — 1,373,766 Substandard — 18,840 120,530 16,925 16,500 8,250 181,045 Doubtful — — — — 17,700 — 17,700 Total Multifamily $ 2,601,684 $ 2,005,762 $ 1,331,213 $ 249,963 $ 168,338 $ 37,735 $ 6,394,695 3 % 76 % Land: Percentage of portfolio 87 % Special Mention $ — $ 8,100 $ — $ — $ — $ — $ 8,100 Substandard — 71,018 19,523 — 19,975 127,928 238,444 Total Land $ — $ 79,118 $ 19,523 $ — $ 19,975 $ 127,928 $ 246,544 0 % 94 % Single-Family Rental: Percentage of portfolio 3 % Pass $ 37,023 $ 8,375 $ 31,812 $ — $ — $ — $ 77,210 Pass/Watch 78,882 47,650 8,243 — — — 134,775 Special Mention 2,228 6,732 — — — — 8,960 Total Single-Family Rental $ 118,133 $ 62,757 $ 40,055 $ — $ — $ — $ 220,945 0 % 63 % Healthcare: Percentage of portfolio 3 % Pass $ — $ — $ 6,600 $ — $ — $ — $ 6,600 Pass/Watch — — — 26,850 — — 26,850 Special Mention — — 65,819 14,650 39,650 — 120,119 Doubtful — — — — 4,625 — 4,625 Total Healthcare $ — $ — $ 72,419 $ 41,500 $ 44,275 $ — $ 158,194 0 % 75 % Office: Percentage of portfolio 2 % Special Mention $ — $ 35,410 $ — $ 42,799 $ 43,151 $ 9,636 $ 130,996 Doubtful — — — — — 880 880 Total Office $ — $ 35,410 $ — $ 42,799 $ 43,151 $ 10,516 $ 131,876 0 % 82 % Student Housing: Percentage of portfolio 2 % Pass $ 25,700 $ — $ — $ — $ — $ — $ 25,700 Pass/Watch — — 31,100 — — — 31,100 Substandard — 23,500 — 13,000 24,050 — 60,550 Total Student Housing $ 25,700 $ 23,500 $ 31,100 $ 13,000 $ 24,050 $ — $ 117,350 15 % 74 % Hotel: Percentage of portfolio 2 % Pass/Watch $ — $ 26,000 $ — $ — $ — $ — $ 26,000 Special Mention — — 41,000 — — — 41,000 Total Hotel $ — $ 26,000 $ 41,000 $ — $ — $ — $ 67,000 0 % 85 % Retail: Percentage of portfolio 1 % Pass $ — $ — $ 4,000 $ — $ — $ — $ 4,000 Special Mention — — — 26,600 — — 26,600 Substandard — — — — — 3,445 3,445 Total Retail $ — $ — $ 4,000 $ 26,600 $ — $ 3,445 $ 34,045 9 % 72 % Other: Percentage of portfolio < 1 % Pass $ — $ — $ — $ — $ 13,580 $ — $ 13,580 Doubtful — — — — — 1,700 1,700 Total Other $ — $ — $ — $ — $ 13,580 $ 1,700 $ 15,280 7 % 53 % Percentage of portfolio < 1 % Grand Total $ 2,745,517 $ 2,232,547 $ 1,539,310 $ 373,862 $ 313,369 $ 181,324 $ 7,385,929 3 % 76 % Geographic Concentration Risk As of June 30, 2021, 18% and 16% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. As of December 31, 2020, 19% and 11% 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 June 30, 2021 Land Multifamily Retail Office Healthcare Student Housing Hotel Other Total Allowance for credit losses: Beginning balance $ 78,096 $ 30,029 $ 13,848 $ 8,051 $ 3,872 $ 3,498 $ 7,754 $ 2,152 $ 147,300 Provision for credit losses (net of recoveries) (39) 131 (29) (229) (6) (1,133) (7,529) (19) (8,853) Ending balance $ 78,057 $ 30,160 $ 13,819 $ 7,822 $ 3,866 $ 2,365 $ 225 $ 2,133 $ 138,447 Three Months Ended June 30, 2020 Allowance for credit losses: Beginning balance $ 78,418 $ 31,891 $ 11,322 $ 6,096 $ 3,934 $ 1,142 $ 7,528 $ 1,921 $ 142,252 Provision for credit losses (net of recoveries) (324) 2,715 2,659 2,436 (4) 2,968 144 (35) 10,559 Ending balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 3,930 $ 4,110 $ 7,672 $ 1,886 $ 152,811 Six Months Ended June 30, 2021 Allowance for credit losses: Beginning balance $ 78,150 $ 36,468 $ 13,861 $ 1,846 $ 3,880 $ 4,078 $ 7,759 $ 2,287 $ 148,329 Provision for credit losses (net of recoveries) (93) (6,308) (42) 5,976 (14) (1,713) (7,534) (154) (9,882) Ending balance $ 78,057 $ 30,160 $ 13,819 $ 7,822 $ 3,866 $ 2,365 $ 225 $ 2,133 $ 138,447 Six Months Ended June 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 64 68 29 112 17,294 Provision for credit losses (net of recoveries) 10,148 18,284 13,646 6,745 3,866 4,042 7,643 74 64,448 Ending balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 3,930 $ 4,110 $ 7,672 $ 1,886 $ 152,811 Our estimate of allowance for credit losses on our structured loans and investments, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that was adjusted for the expectations that the markets we operate in will experience moderate improvements in economic conditions, decreases in unemployment rates, continued low interest rates and other market factors including positive developments in the COVID-19 pandemic. The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our current expected credit loss (“CECL”) allowance for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. As of June 30, 2021 and December 31, 2020, we had outstanding unfunded commitments of $524.7 million and $353.8 million, respectively, that we are obligated to fund as borrowers meet certain requirements. As of June 30, 2021 and December 31, 2020, accrued interest receivable related to our loans totaling $52.9 million and $41.6 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets. All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands): June 30, 2021 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 $ 127,829 $ 77,868 0 % 99 % Retail 30,045 29,328 13,818 10 % 77 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,136 2,136 1,500 0 % 68 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 172,721 $ 165,666 $ 98,731 2 % 94 % December 31, 2020 Land $ 134,215 $ 127,829 $ 77,869 0 % 99 % Hotel 110,000 89,613 7,500 0 % 94 % Retail 30,079 28,957 13,851 10 % 75 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,166 2,166 1,500 0 % 71 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,785 $ 254,938 $ 106,265 1 % 94 % (1) Represents the UPB of nine and ten impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020. At June 30, 2021, eight loans with an aggregate net carrying value of $77.5 million, net of related loan loss reserves of $6.5 million, were classified as non-performing and, at December 31, 2020, seven loans with an aggregate net carrying value of $53.8 million, net of related loan loss reserves of $6.5 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): June 30, 2021 December 31, 2020 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 $ 60,550 $ — $ 60,550 $ 36,500 $ — $ 36,500 Multifamily 17,700 — 17,700 17,700 — 17,700 Healthcare 4,625 — 4,625 4,625 — 4,625 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 920 — 920 Office 880 — 880 880 — 880 Total $ 86,375 $ — $ 86,375 $ 62,325 $ — $ 62,325 In addition, we have six loans with a carrying value totaling $121.3 million at June 30, 2021, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.0 million entitle us to a weighted average accrual rate of interest of 7.91%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At both June 30, 2021 and December 31, 2020, we had a cumulative allowance for credit losses of $71.4 million related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development's outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is in compliance with all of the terms and conditions of the loans. At both June 30, 2021 and December 31, 2020, we had no loans contractually past due 90 days or more that are still accruing interest. During both the three and six months ended June 30, 2021 and 2020 In 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 appraised 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 was greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid off by March 2, 2021. In January 2021, we entered into a second forbearance agreement which temporarily eliminated the pay rate, extended the principal reduction payoff deadline to June 30, 2021 and increased the interest rate to an unaccrued default rate of 9.50%, which is deferred to payoff. In June 2021, we received $95.0 million for full satisfaction of these loans, reversed the $7.5 million allowance for credit losses and recorded interest income of $3.5 million. 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 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 other loan modifications, refinancing's and/or extensions during the six months ended June 30, 2021 and 2020 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 June 30, 2021 and December 31, 2020, we had total interest reserves of $84.4 million and $78.3 million, respectively, on 262 loans and 186 loans, respectively, with an aggregate UPB of $4.69 billion and $3.60 billion, respectively. |
Loans Held-for-Sale, Net
Loans Held-for-Sale, Net | 6 Months Ended |
Jun. 30, 2021 | |
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): June 30, 2021 December 31, 2020 Fannie Mae $ 220,944 $ 679,342 Private Label 135,934 56,186 FHA 50,770 53,063 Freddie Mac 39,806 180,004 SFR - Fixed Rate 1,486 — 448,940 968,595 Fair value of future MSR 9,669 21,600 Unearned discount (962) (3,276) Loans held-for-sale, net $ 457,647 $ 986,919 During the three and six months ended June 30, 2021, we sold $1.48 billion and $3.32 billion, respectively, of loans held-for-sale and recorded gain on sales, including fees, of $40.9 million and $69.8 million, respectively. During the three and six months ended June 30, 2020, we sold $1.99 billion and $2.95 billion, respectively, of loans held-for-sale and recorded gain on sales, including fees, of $26.4 million and $40.7 million, respectively. Included in the total loans sold during 2021 and 2020 were Private Label loans totaling $449.9 million and $727.2 million, respectively, which were sold to unconsolidated affiliates of ours who pooled and securitized the loans. We retained the most subordinate class of certificates in the 2021 and 2020 securitizations totaling $38.2 million and $63.6 million, respectively, in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans. In addition, the total loans sold during 2021 included 23 fixed rate SFR permanent loans totaling $75.3 million which resulted in a gain on sale of $2.8 million. At June 30, 2021 and December 31, 2020, 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 10%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 8.6 years at both June 30, 2021 and December 31, 2020. A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Originated Acquired Total Originated Acquired Total Beginning balance $ 367,428 $ 39,552 $ 406,980 $ 336,466 $ 43,508 $ 379,974 Additions 31,971 — 31,971 77,009 — 77,009 Amortization (11,796) (2,871) (14,667) (22,875) (5,996) (28,871) Write-downs and payoffs (4,540) (1,091) (5,631) (7,537) (1,922) (9,459) Ending balance $ 383,063 $ 35,590 $ 418,653 $ 383,063 $ 35,590 $ 418,653 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Beginning balance $ 230,377 $ 58,577 $ 288,954 $ 221,901 $ 64,519 $ 286,420 Additions 39,875 — 39,875 60,151 — 60,151 Amortization (7,998) (3,893) (11,891) (15,614) (8,099) (23,713) Write-downs and payoffs (1,802) (1,848) (3,650) (5,986) (3,584) (9,570) Ending balance $ 260,452 $ 52,836 $ 313,288 $ 260,452 $ 52,836 $ 313,288 We collected prepayment fees totaling $4.2 million and $6.9 million during the three and six months ended June 30, 2021, respectively, and $3.0 million and $8.1 million during the three and six months ended June 30, 2020, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of operations. As of June 30, 2021 and December 31, 2020, we had The expected amortization of capitalized MSRs recorded as of June 30, 2021 is as follows (in thousands): Year Amortization 2021 (six months ending 12/31/2021) $ 29,936 2022 57,277 2023 53,613 2024 49,872 2025 46,778 2026 42,711 Thereafter 138,466 Total $ 418,653 Actual amortization may vary from these estimates. |
Mortgage Servicing
Mortgage Servicing | 6 Months Ended |
Jun. 30, 2021 | |
Mortgage Servicing | |
Mortgage Servicing | Note 6 — Mortgage Servicing Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): June 30, 2021 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 19,191,969 74 % Texas 15 % Freddie Mac 4,708,457 18 % New York 11 % Private Label (2) 1,176,627 5 % North Carolina 9 % FHA 882,899 3 % California 8 % SFR - Fixed Rate 75,103 < 1 % Florida 6 % Total $ 26,035,055 100 % Georgia 6 % New Jersey 5 % Other (3) 40 % Total 100 % December 31, 2020 Fannie Mae $ 18,268,268 74 % Texas 16 % Freddie Mac 4,881,080 20 % New York 9 % FHA 752,116 3 % North Carolina 9 % Private Label 726,992 3 % California 9 % Total $ 24,628,456 100 % Florida 7 % Georgia 6 % New Jersey 4 % Other (3) 40 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) Represents loans we service in connection with our Private Label securitizations (see Note 4 for details). (3) No other individual state represented 4% or more of the total. At June 30, 2021 and December 31, 2020, our weighted average servicing fee was 45.9 basis points and 45.4 basis points, respectively. At June 30, 2021 and December 31, 2020, we held total escrow balances of $1.53 billion and $1.29 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $810.2 million and $867.6 million at June 30, 2021 and December 31, 2020, 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 $1.1 million and $2.2 million during the three and six months ended June 30, 2021, respectively, and $1.4 million and $4.5 million during the three and six months ended June 30, 2020, respectively, and is a component of servicing revenue, net in the consolidated statements of operations. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 6 Months Ended |
Jun. 30, 2021 | |
Securities Held-to-Maturity | |
Securities Held-to-Maturity | Note 7 — Securities Held-to-Maturity Agency Private Label Certificates (“APL certificates”). Agency B Piece Bonds. A summary of our securities held-to-maturity is as follows (in thousands): Net Carrying Unrealized Estimated Allowance for Face Value Value Gain/(Loss) Fair Value Credit Losses June 30, 2021 APL certificates $ 101,868 $ 61,600 $ 6,368 $ 67,968 $ 1,568 B Piece bonds 69,133 53,096 3,939 57,035 547 Total $ 171,001 $ 114,696 $ 10,307 $ 125,003 $ 2,115 December 31, 2020 APL certificates $ 63,627 $ 37,685 $ (2,105) $ 35,580 $ 1,023 B Piece bonds 76,497 57,839 709 58,548 621 Total $ 140,124 $ 95,524 $ (1,396) $ 94,128 $ 1,644 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 June 30, 2021 APL B Piece Certificates Bonds Total Beginning balance $ 991 $ 606 $ 1,597 Provision for credit loss expense 577 (59) 518 Ending balance $ 1,568 $ 547 $ 2,115 Six Months Ended June 30, 2021 Beginning balance $ 1,023 $ 621 $ 1,644 Provision for credit loss expense 545 (74) 471 Ending balance $ 1,568 $ 547 $ 2,115 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 June 30, 2021, 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 $3.1 million and $6.0 million during the three and six months ended June 30, 2021, respectively, and $1.7 million and $4.0 million during the three and six months ended June 30, 2020, respectively. |
Investments in Equity Affiliate
Investments in Equity Affiliates | 6 Months Ended |
Jun. 30, 2021 | |
Investments in Equity Affiliates | |
Investments in Equity Affiliates | Note 8 — Investments in Equity Affiliates We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows (in thousands): UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates June 30, 2021 December 31, 2020 June 30, 2021 Arbor Residential Investor LLC $ 67,717 $ 59,150 $ — AMAC Holdings III LLC 13,795 10,308 — North Vermont Avenue 2,421 2,496 — 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 $ 86,253 $ 74,274 $ 1,687 Arbor Residential Investor LLC (“ARI”). $4.8 million and $27.3 million, respectively, and during the three and six months ended June 30, 2020, we recorded income of $20.9 million and $23.8 million, respectively, to income from equity affiliates in our consolidated statements of operations. During the three and six months ended June 30, 2021, we also received cash distributions totaling 12.3% . The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% as of June 30, 2021. Summarized statements of income for Wakefield Investment Holdings LLC, the third-party entity formed to hold the underlying residential mortgage banking business, are as follows (in thousands): Six Months Ended June 30, 2021 2020 Statements of Income: Total revenues $ 630,400 $ 689,728 Total expenses 476,710 506,259 Net income $ 153,690 $ 183,469 AMAC Holdings III LLC (“AMAC III”). During the first quarter of 2021, we funded an additional $4.0 million of a total committed investment of $30.0 million, which brings the total funded investment to $15.7 million at June 30, 2021. During the three and six months ended June 30, 2021 the loss recorded from this investment was $0.3 million and $0.5 million, respectively. Century Summerfield Apartments. During the first quarter of 2021, we funded $17.0 million of a total committed investment of $20.0 million for a 50% equity interest in a joint venture with a third party that was formed to invest in an apartment community. During the second quarter of 2021, this joint venture was dissolved and we received distributions totaling $17.2 million and recorded a $0.2 million gain. See Note 17 for details of certain investments described above. |
Debt Obligations
Debt Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Debt Obligations | |
Debt Obligations | Note 9 — Debt Obligations Credit and Repurchase Facilities Borrowings under our credit and repurchase facilities are as follows ($ in thousands): June 30, 2021 December 31, 2020 Note Debt Collateral Debt Collateral Current Extended Rate Carrying Carrying Wtd. Avg. Carrying Carrying Maturity Maturity Type Value (1) Value Note Rate Value (1) Value Structured Business $1.8B joint repurchase facility Mar. 2022 Mar. 2023 V $ 660,685 $ 947,249 2.51 % $ 681,006 $ 1,054,562 $725M repurchase facility June 2022 Mar. 2023 V 335,477 466,109 2.10 % 191,622 259,559 $250M repurchase facility Mar. 2023 Mar. 2026 V 104,251 260,922 1.87 % — — $198.7M repurchase facility (2) Dec. 2021 N/A V 139,441 164,583 3.04 % 71,627 87,242 $187.3M loan specific credit facilities Aug. 2021 to Jan. 2024 N/A V/F 187,059 251,550 3.04 % 148,615 198,550 $150M credit facility Oct. 2022 Oct. 2023 V 8,576 15,132 3.90 % 23,606 31,809 $100M credit facility Aug. 2021 N/A V 58,625 83,800 1.88 % 39,346 47,912 $100M credit facility Oct. 2022 N/A V 9,936 13,773 4.06 % — — $100M repurchase facility Sept. 2021 N/A V 48,847 61,211 1.88 % 31,780 40,551 $50M credit facility April 2022 N/A V 22,407 28,009 2.13 % 15,992 21,300 $30M working capital facility Nov. 2021 N/A V — — — 30,000 — $25M credit facility June 2022 June 2023 V 12,583 18,314 2.38 % 9,323 14,340 $1M master security agreements Dec. 2022 N/A F 944 — 4.01 % 1,441 — Repurchase facilities - securities (3) N/A N/A V 34,567 — 3.55 % 38,487 — Structured Business total $ 1,623,398 $ 2,310,652 2.48 % $ 1,282,845 $ 1,755,825 Agency Business $750M ASAP agreement N/A N/A V $ 76,943 $ 76,943 1.40 % $ 301,455 $ 302,491 $400M repurchase facility Oct. 2021 N/A V 119,382 119,398 1.60 % 174,515 174,555 $200M joint repurchase facility Mar. 2022 N/A V 104,876 135,934 1.85 % 42,808 56,186 $200M credit facility Mar. 2022 N/A V 71,656 95,575 1.60 % 294,732 296,698 $150M credit facility Aug 2021 N/A V 15,073 15,073 1.65 % 49,632 49,754 $100M credit facility Aug. 2021 N/A V 2,592 2,600 1.65 % 88,896 88,911 $1.3M repurchase facility (2) Dec. 2021 N/A V 1,268 1,487 3.00 % — — Agency Business total $ 391,790 $ 447,010 1.64 % $ 952,038 $ 968,595 Consolidated total $ 2,015,188 $ 2,757,662 2.32 % $ 2,234,883 $ 2,724,420 V = ; F = Fixed Note Rate (1) The debt carrying value for the Structured Business at June 30, 2021 and December 31, 2020 was net of unamortized deferred finance costs of $4.0 million and $3.3 million, respectively. The debt carrying value for the Agency Business at June 30, 2021 and December 31, 2020 was net of unamortized deferred finance costs of $2.2 million and $0.6 million, respectively. (2) A portion of this repurchase facility was used to finance a fixed rate SFR permanent loan reported through our Agency Business. (3) These repurchase facilities are subject to margin call provisions associated with changes in interest spreads. As of June 30, 2021 and December 31, 2020, these facilities were collateralized by our B Piece bonds with a carrying value of $53.1 million and $58.5 million, respectively, and an SFR bond with a carrying value of $10.0 million at December 31, 2020. Generally, our credit and repurchase facilities have extension options that are at the discretion of the banking institutions in which we have long standing relationships with. These facilities typically renew annually and also include a “wind-down” feature. Joint Repurchase Facility. Structured Business At June 30, 2021 and December 31, 2020, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 2.73% and 2.97%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facilities, working capital facility and the master security agreements, was 69% at both June 30, 2021 and December 31, 2020. During the second quarter of 2021, we amended our $400.0 million credit facility twice to increase the facility size to $725.0 million and extend the maturity to June 2022. In May 2021, we amended our $200.0 million credit facility increasing the facility size to $250.0 million. In March 2021, we entered into a $200.0 million repurchase facility to finance bridge loans that has interest rates of LIBOR plus 1.75% - 2.75% and matures in March 2023. The facility has a maximum advance rate of 80%. In March 2021, we amended our $50.0 million credit facility increasing the facility size to $150.0 million and decreased the all in floor rate 0.15%. In March 2021, we entered into an $18.2 million credit facility used to finance a hotel bridge loan. The facility bears interest at the prime rate with a 3.25% floor and matures in December 2022. In February 2021, we entered into a $21.6 million credit facility used to finance a multifamily bridge loan. The facility bears interest at a 3.00% fixed rate and matures in January 2024. In January 2021, we amended our $400.0 million repurchase facility to extend the maturity to December 2021. The interest rate on new loans in 2021 is LIBOR plus 1.75% with a 0.35% LIBOR floor if utilization is above $250.0 million and LIBOR plus 2.00% with a 0.35% LIBOR floor if utilization is below $250.0 million. For existing loans, the interest rate will remain at LIBOR plus 2.00% to 2.20% with a LIBOR floor reduced to 0.35%. Agency Business In March 2021, we amended our $150.0 million credit facility to increase the facility size to $200.0 million, extend the maturity to March 2022, increase the interest rate 0.20% and add a 0.25% LIBOR floor. Collateralized Loan Obligations (“CLOs”) We account for CLO transactions on our consolidated balance sheet as financing facilities. Our CLOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us. Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted June 30, 2021 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO XV $ 674,412 $ 668,823 1.42 % $ 674,753 $ 674,753 $ 128,015 CLO XIV 655,475 650,116 1.45 % 766,872 766,872 — CLO XIII 668,000 664,396 1.54 % 770,086 770,086 17,749 CLO XII 534,193 531,295 1.62 % 614,751 614,751 15,412 CLO XI 533,000 530,470 1.56 % 643,450 643,450 884 CLO X 441,000 438,988 1.57 % 534,261 534,261 16,000 Total CLOs $ 3,506,080 $ 3,484,088 1.52 % $ 4,004,173 $ 4,004,173 $ 178,060 December 31, 2020 CLO XIII $ 668,000 $ 663,804 1.58 % $ 768,664 $ 768,664 $ 43 CLO XII 534,193 530,673 1.66 % 628,935 628,935 2,005 CLO XI 533,000 529,859 1.61 % 555,157 555,157 92,395 CLO X 441,000 438,442 1.61 % 522,132 522,132 25,537 CLO IX 356,150 354,531 1.53 % 457,903 457,903 18,703 Total CLOs $ 2,532,343 $ 2,517,309 1.60 % $ 2,932,791 $ 2,932,791 $ 138,683 (1) Debt carrying value is net of $22.0 million and $15.0 million of deferred financing fees at June 30, 2021 and December 31, 2020, respectively. (2) At June 30, 2021 and December 31, 2020, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 1.80% and 1.93%, respectively. (3) As of June 30, 2021 and December 31, 2020, there were no collateral deemed a “credit risk” as defined by the CLO indentures. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $38.1 million and $49.5 million at June 30, 2021 and December 31, 2020, respectively. CLO XV. two-and-a-half-year CLO XIV. two-and-a-half- year CLO IX. Senior Unsecured Notes A summary of our senior unsecured notes is as follows (in thousands): Senior June 30, 2021 December 31, 2020 Unsecured Issuance Carrying Wtd. Avg. Carrying Wtd. Avg. Notes Date Maturity UPB Value (1) Rate (2) UPB Value (1) Rate (2) 5.00% Notes (3) Apr. 2021 Apr. 2026 $ 175,000 $ 172,130 5.00 % $ — $ — — % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 69,997 8.00 % 70,750 69,793 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,234 4.50 % 275,000 271,994 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 108,842 4.75 % 110,000 108,668 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 88,942 5.75 % 90,000 88,751 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 123,929 5.63 % 125,000 123,637 5.63 % $ 845,750 $ 836,074 5.23 % $ 670,750 $ 662,843 5.29 % (1) At June 30, 2021 and December 31, 2020, the carrying value is net of deferred financing fees of $9.7 million and $7.9 million, respectively. (2) At June 30, 2021 and December 31, 2020, the aggregate weighted average note rate, including certain fees and costs, was 5.56% and 5.65% , 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. In April 2021, we issued $175.0 million aggregate principal amount of 5.00% senior unsecured notes due in 2026 in a private offering. We received net proceeds of $172.3 million from the issuance, after deducting the underwriting discount and other offering expenses. We are using the net proceeds to make investments related to our business and for general corporate purposes. Convertible Senior Unsecured Notes In 2019, we issued $264.0 million in aggregate principal amount of 4.75% convertible senior notes (the “4.75% Convertible Notes”) through a private placement offering, which includes the exercised purchaser’s total over-allotment option of $34.0 million. The 4.75% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in November 2022, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 56.1695 shares of common stock per $1,000 of principal representing a conversion price of $17.80 per share of common stock. We received proceeds totaling $256.5 million, net of the underwriter’s discount and fees, which is being amortized through interest expense over the life of such notes. We used the net proceeds from the issuance primarily for the exchange of $228.7 million of our 5.25% convertible senior notes (the “5.25% Convertible Notes”) for a combination of $233.1 million in cash (which included accrued interest) and 4,478,315 shares of our common stock. The remaining net proceeds were used for general corporate purposes. As of June 30, 2021, the 4.75% Convertible Notes had a conversion rate of 56.5332 shares of common stock per $1,000 of principal, which represented a conversion price of $17.69 per share of common stock. At June 30, 2021, there were $0.5 million and $13.8 million aggregate principal amount remaining of our 5.25% Convertible Notes issued on July 3, 2018 and 5.25% Convertible Notes issued on July 20, 2018, respectively. At June 30, 2021, the conversion rates of the 5.25% Convertible Notes issued on July 3, 2018 and 5.25% Convertible Notes issued on July 20, 2018 were 91.9605 shares and 82.2763 shares, respectively, of common stock per $1,000 of principal, which represented a conversion price of $10.87 per share and $12.15 per share of common stock, respectively. On July 1, 2021, the 5.25% Convertible Notes matured and were fully settled with cash totaling $14.3 million and 386,459 shares of common stock. Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible by the holder into, at our election, cash, shares of our common stock, or a combination of both, subject to the satisfaction of certain conditions and during specified periods. The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their notes for cash equal to 100% of the principal amount, plus accrued and unpaid interest, if we undergo a fundamental change specified in the agreements. We intend to settle the principal balance of our convertible debt in cash and have not assumed share settlement of the principal balance for purposes of computing earnings per share (“EPS”). At the time of issuance, there was no precedent or policy that would indicate that we would settle the principal in shares or the conversion spread in cash. Accounting guidance requires that convertible debt instruments with cash settlement features, including partial cash settlement, account for the liability component and equity component (conversion feature) of the instrument separately. The initial value of the liability component reflects the present value of the discounted cash flows using the nonconvertible debt borrowing rate at the time of the issuance. The debt discount represents the difference between the proceeds received from the issuance and the initial carrying value of the liability component, which is accreted back to the notes principal amount through interest expense over the term of the notes, which was 1.27 years and 1.77 years at June 30, 2021 and December 31, 2020, respectively, on a weighted average basis. 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 June 30, 2021 $ 278,300 $ 4,031 $ 3,352 $ 270,917 $ 9,962 December 31, 2020 $ 278,300 $ 5,636 $ 4,691 $ 267,973 $ 9,962 During both the three months ended June 30, 2021 and 2020, we incurred interest expense on the notes totaling $4.8 million, of which $3.3 million, $0.8 million and $0.7 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. During the six months ended June 30, 2021, we incurred total interest expense on the notes of $9.6 million, of which $6.6 million, $1.6 million and $1.4 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. During the six months ended June 30, 2020, we incurred interest expense on the notes totaling $10.0 million, of which $6.7 million, $1.7 million and $1.6 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. Including the amortization of the deferred financing fees and debt discount, our weighted average total cost of the notes was 6.75% at both June 30, 2021 and December 31, 2020. Junior Subordinated Notes The carrying values of borrowings under our junior subordinated notes were $142.0 million and $141.7 million at June 30, 2021 and December 31, 2020, respectively, which is net of a deferred amount of $10.5 million and $10.8 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of Debt Covenants Credit Facilities, Repurchase Agreements and Unsecured Debt. CLOs. accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs. However, we may not have sufficient liquidity available to do so at such time. Our CLO compliance tests as of the most recent determination dates in July 2021 are as follows: Cash Flow Triggers CLO X CLO XI CLO XII CLO XIII CLO XIV CLO XV Overcollateralization (1) Current 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % 120.85 % Limit 125.98 % 120.95 % 117.87 % 118.76 % 118.76 % 119.85 % Pass / Fail Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 449.62 % 370.22 % 355.36 % 389.99 % 434.76 % 240.42 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass Pass Pass Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows: Determination (1) CLO X CLO XI CLO XII CLO XIII CLO XIV CLO XV July 2021 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % 120.85 % April 2021 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % — January 2021 126.98 % 121.95 % 118.87 % 119.76 % — — October 2020 126.98 % 121.95 % 118.87 % 119.76 % — — July 2020 126.98 % 121.95 % 118.87 % 119.76 % — — (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. The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other. |
Allowance for Loss-Sharing Obli
Allowance for Loss-Sharing Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Allowance for Loss-Sharing Obligations | |
Allowance for Loss-Sharing Obligations | Note 10 — Allowance for Loss-Sharing Obligations Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 65,893 $ 70,752 $ 64,303 $ 34,648 Impact of adopting CECL - January 1, 2020 — — — 14,406 Provisions for loss sharing 716 2,673 2,464 24,569 Provisions reversal for loan repayments (167) (277) (263) (636) Recoveries (charge-offs), net (797) 72 (859) 233 Ending balance $ 65,645 $ 73,220 $ 65,645 $ 73,220 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 June 30, 2021 and 2020, guarantee obligations of $34.5 million and $32.8 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. 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 June 30, 2021 and December 31, 2020, we had outstanding advances of $0.5 million and $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations. At June 30, 2021 and December 31, 2020, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $31.2 million and $30.3 million, respectively, and represented 0.16% and 0.17%, respectively, of the Fannie Mae servicing portfolio. At June 30, 2021 and December 31, 2020, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.61 billion and $3.41 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 | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 11 — Derivative Financial Instruments We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. 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. 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 loss on derivative instruments, 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 six months ended June 30,2021, we recorded net gains of $9.9 million and $1.2 million, respectively, from changes in the fair value of these derivatives and $26.3 million and $63.2 million, respectively, of income from MSRs. During the three and six months ended June 30, 2020, we recorded a net loss of $4.1 million and a net gain of $4.2 million, respectively, from changes in the fair value of these derivatives and $32.4 million and $54.4 million, respectively, of income from MSRs. The gains and losses are recorded in loss on derivative instruments, net on our consolidated statements of operations. See Note 12 for details. Interest Rate Swap Futures. During the three months ended June 30, 2021, we recorded realized and unrealized losses of $9.4 million and $3.0 million, respectively, to our Agency Business related to our Swap Futures. During the six months ended June 30, 2021, we recorded realized and unrealized losses of million and A summary of our non-qualifying derivative financial instruments is as follows ($ in thousands): June 30, 2021 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Agency Business Rate Lock Commitments 5 $ 16,550 Other Assets/Other Liabilities $ 124 $ (127) Forward Sale Commitments 43 328,069 Other Assets/Other Liabilities 2,263 (266) Swap Futures 2,196 219,600 — — $ 564,219 $ 2,387 $ (393) December 31, 2020 Agency Business Rate Lock Commitments 7 $ 136,354 Other Assets/Other Liabilities $ 1,967 $ (231) Forward Sale Commitments 114 1,048,763 Other Assets/Other Liabilities 1,925 (990) Swap Futures 453 45,300 — — $ 1,230,417 $ 3,892 $ (1,221) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value | |
Fair Value | Note 12 — Fair Value Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands): June 30, 2021 December 31, 2020 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 7,385,929 $ 7,213,915 $ 7,421,181 $ 5,475,082 $ 5,285,868 $ 5,428,141 Loans held-for-sale, net 448,940 457,647 469,195 968,595 986,919 1,007,294 Capitalized mortgage servicing rights, net n/a 418,653 471,275 n/a 379,974 415,495 Securities held-to-maturity, net 171,001 114,696 125,003 140,124 95,524 94,128 Derivative financial instruments 308,421 2,387 2,387 865,975 3,892 3,892 Financial liabilities: Credit and repurchase facilities $ 2,021,412 $ 2,015,188 $ 2,016,291 $ 2,238,722 $ 2,234,883 $ 2,235,668 Collateralized loan obligations 3,506,080 3,484,088 3,506,460 2,532,343 2,517,309 2,495,195 Senior unsecured notes 845,750 836,074 853,814 670,750 662,843 670,117 Convertible senior unsecured notes, net 278,300 270,917 304,689 278,300 267,973 280,636 Junior subordinated notes 154,336 142,013 100,650 154,336 141,656 99,594 Derivative financial instruments 36,198 393 393 319,142 1,221 1,221 Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows: Level 1—Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Loans and investments, net. Loans held-for-sale, net. Capitalized mortgage servicing rights, net. Securities held-to-maturity, net. Derivative financial instruments. Credit and repurchase facilities. Collateralized loan obligations and junior subordinated notes. Senior unsecured notes. Convertible senior unsecured notes, net. We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels as of June 30, 2021 (in thousands): Fair Value Measurements Using Fair Carrying Value Hierarchy Value Fair Value Level 1 Level 2 Level 3 Financial assets: Derivative financial instruments $ 2,387 $ 2,387 $ — $ 2,263 $ 124 Financial liabilities: Derivative financial instruments $ 393 $ 393 $ — $ 393 $ — 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 June 30, 2021 (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) $ 66,935 $ 66,935 $ — $ — $ 66,935 (1) We had an allowance for credit losses of $98.7 million relating to nine impaired loans with an aggregate carrying value, before loan loss reserves, of $165.7 million at June 30, 2021. Loan impairment assessments. Quantitative information about Level 3 fair value measurements at June 30, 2021 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Land $ 49,960 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 10.15 % Retail 15,511 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 1.68 % Healthcare 828 Discounted cash flows Capitalization rate 14.30 % Discount rate 11.00 % Office 636 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 124 Discounted cash flows W/A discount rate 8.44 % 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivative assets and liabilities, net Beginning balance $ 1,439 $ 2,069 $ 1,967 $ 1,066 Settlements (23,045) (33,936) (58,074) (54,867) Realized gains recorded in earnings 21,606 31,867 56,107 53,801 Unrealized gains recorded in earnings 124 549 124 549 Ending balance $ 124 $ 549 $ 124 $ 549 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 June 30, 2021 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 16,550 $ 124 $ 127 $ 251 Forward sale commitments 328,069 — (127) (127) Loans held-for-sale, net (1) 448,940 9,669 — 9,669 Total $ 9,793 $ — $ 9,793 (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 June 30, 2021 (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 $ 7,213,915 $ 7,421,181 $ — $ — $ 7,421,181 Loans held-for-sale, net 457,647 469,195 — 459,526 9,669 Capitalized mortgage servicing rights, net 418,653 471,275 — — 471,275 Securities held-to-maturity, net 114,696 125,003 — — 125,003 Financial liabilities: Credit and repurchase facilities $ 2,015,188 $ 2,016,291 $ — $ 391,790 $ 1,624,501 Collateralized loan obligations 3,484,088 3,506,460 — — 3,506,460 Senior unsecured notes 836,074 853,814 853,814 — — Convertible senior unsecured notes, net 270,917 304,689 — 304,689 — Junior subordinated notes 142,013 100,650 — — 100,650 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Impact of COVID-19. Agency Business Commitments. As of June 30, 2021, we were required to maintain at least $19.1 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 June 30, 2021, we met the restricted liquidity requirement with a $45.0 million letter of credit and $14.6 million of cash collateral. As of June 30, 2021, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $47.7 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 June 30, 2021, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. We are not subject to capital requirements on a quarterly basis for Ginnie Mae and FHA, as requirements for these investors are only required on an annual basis. As an approved designated seller/servicer under Freddie Mac's SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit. We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 11 and Note 12. Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2021 (six months ending December 31, 2021) $ 859,768 $ 3,408 $ 863,176 2022 2,496,580 8,257 2,504,837 2023 1,371,081 8,031 1,379,112 2024 1,017,797 7,926 1,025,723 2025 256,723 7,978 264,701 2026 340,026 8,282 348,308 Thereafter 463,903 26,098 490,001 Total $ 6,805,878 $ 69,980 $ 6,875,858 During the three months ended June 30, 2021 and 2020, we recorded lease expense of Unfunded Commitments. Litigation. In June 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the “Trust”), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc. and the Homestead Village L.L.C. family of companies (together “ESI”) (formerly Chapter 11 debtors, together the “Debtors”) that have emerged from bankruptcy. Two of the lawsuits were filed in the U.S. Bankruptcy Court for the Southern District of New York, and the third in the Supreme Court of the State of New York, New York County. There were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain other entities that are affiliates of ours are included as defendants. The New York State Court action was removed to the Bankruptcy Court. Currently, there is just a single case in Bankruptcy Court. The lawsuits all alleged, as a factual basis and background, certain facts surrounding the June 2007 leveraged buyout of ESI from affiliates of Blackstone Capital. Our subsidiary, Arbor ESH II, LLC, had a $115.0 million investment in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. The New York State Court action and one of the two federal court actions named as defendants Arbor ESH II, LLC, Arbor Commercial Mortgage, LLC (“ACM”), and ABT-ESI LLC, an entity in which we have a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. The Trust also alleges that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment (“Fiduciary Duty Claims”) and name a director of ours, and a former general counsel of ACM, each of whom had served on the Board of Directors of ESI for a period of time. We are defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors’ bankruptcy filing. In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, named ACM and ABT-ESI LLC, together with a number of other defendants, and asserts claims, including constructive and fraudulent conveyance claims, under state and federal statutes, as well as a claim under the Federal Debt Collection Procedure Act. In June 2013, the Trust filed a motion to amend the lawsuits, to, among other things, (i) consolidate the lawsuits into one lawsuit, (ii) remove 47 defendants from the lawsuits, none of whom are related to us, so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (iii) reduce the counts within the lawsuits from over 100 down to 17. The remaining counts in the Trust’s amended complaint against our affiliates are principally state law claims for breach of fiduciary duties, waste, unlawful dividends and unjust enrichment, and claims under the Bankruptcy Code for avoidance and recovery actions, among others. The Bankruptcy Court granted the motion to amend and the amended complaint has been filed. The amended complaint seeks approximately $139.0 million in the aggregate, plus interest from the date of the alleged unlawful transfers, from director designees, portions of which are also sought from our affiliates as well as from unaffiliated defendants. We moved to dismiss the referenced remaining actions in December 2013. After supplemental briefing and multiple adjourned conferences, in August 2020, the Court issued a decision granting our motion to dismiss in part, dismissing 9 of the 17 counts. The Court permitted claims against director designees to proceed on theories of authorization of illegal dividends and breach of fiduciary duty. The Court permitted claims against the defendant entities, including our affiliated entities, to proceed on theories of constructive fraudulent transfer and fraudulent transfer under state and federal law. Moreover, the Court affirmatively dismissed four counts against the defendant entities to the extent they are based on distributions from certain so-called LIBOR Floor Certificates. According to the amended complaint, the total LIBOR Floor Certificate transfers were $74.0 million in value. As a result, with what remains of the amended complaint, total possible liability against the affiliated entities has correspondingly fallen, whereas total possible liability against the director designees remains at approximately $139.0 million. The parties have stipulated to a schedule for discovery and we intend to vigorously defend against the remaining claims. We have not made a loss accrual for this litigation because we believe that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated. Due to Borrowers. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | Note 14 — Variable Interest Entities Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs. Our CLO consolidated entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We, or one of our affiliates, are named collateral manager, servicer, and special servicer for all collateral assets held in CLOs, which we believe gives us the power to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests and also have rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued to third parties by the CLOs, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the CLOs as opposed to our net economic interests in those entities. The assets and liabilities related to these consolidated CLOs are as follows (in thousands): June 30, 2021 December 31, 2020 Assets: Restricted cash $ 233,473 $ 188,226 Loans and investments, net 3,990,518 2,923,634 Other assets 26,857 22,587 Total assets $ 4,250,848 $ 3,134,447 Liabilities: Collateralized loan obligations $ 3,484,088 $ 2,517,309 Other liabilities 3,952 2,755 Total liabilities $ 3,488,040 $ 2,520,064 Assets held by the CLOs are restricted and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to us and can only be satisfied from each respective asset pool. See Note 9 for details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the consolidated CLOs. Unconsolidated VIEs A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of June 30, 2021 is as follows (in thousands): Type Carrying Amount (1) Loans $ 495,347 B Piece bonds 53,643 APL certificates 63,168 Equity investments 16,216 Agency interest only strips 792 Total $ 629,166 (1) Represents the carrying amount of loans and investments before reserves. At June 30, 2021, $130.0 million of loans to VIEs had corresponding specific loan loss reserves of $79.4 million. The maximum loss exposure as of June 30, 2021 would not exceed the carrying amount of our investment. These unconsolidated VIEs have exposure to real estate debt of approximately $4.30 billion at June 30, 2021. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity | |
Equity | Note 15 — Equity Preferred Stock. Common Stock. In June 2021, we completed a public offering in which we sold 6,000,000 shares of our common stock for $18.46 per share and received net proceeds of $110.6 million after deducting the underwriter's discount and other offering expenses. The proceeds are being used to make investments related to our business and for general corporate purposes. We also used $11.1 million of the net proceeds from this offering to purchase 600,000 shares of our common stock from ACM at the same price the underwriters paid to purchase the shares. During the six months ended June 30, 2021, we sold 6,422,879 shares of our common stock for net proceeds of $109.2 million through an “At-The-Market” equity offering sales agreement with JMP Securities LLC (“JMP”). We used $21.1 million of the net proceeds to redeem OP Units from two of ACM's members for their membership interest in ACM. Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of ACM in 2016 (the “Acquisition”). Each of these OP Units are paired with Distributions. Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C Series D February 17, 2021 $ 0.33 February 1, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A May 5, 2021 $ 0.34 April 30, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A (1) The dividend declared on April 30, 2021 was for March 1, 2021 through May 31, 2021 and the dividend declared on February 1, 2021 was for December 1, 2020 through February 28, 2021. As mentioned above, we used a portion of the proceeds from our Series D preferred stock to fully redeem our Series A, B and C preferred stock in June 2021. Common Stock – On July 28, 2021, the Board of Directors declared a cash dividend of $0.35 per share of common stock. The dividend is payable on August 31, 2021 to common stockholders of record as of the close of business on August 16, 2021. Preferred Stock Deferred Compensation. one third one third one fifth one fifth second During the first quarter of 2021, 448,980 shares of performance-based restricted stock units previously granted to our chief executive officer fully vested and were net settled for 229,083 common shares. During the first quarter of 2021, we withheld 140,744 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested. In April 2021, we entered into a second amended and restated annual incentive agreement (the “2021 annual incentive agreement”) with our chief executive officer, effective January 1, 2021. The terms of the 2021 annual incentive agreement provide for: (1) an annual base salary of $1.2 million; (2) an annual cash payment of $0.8 million; and (3) annual performance cash bonus target opportunities of $2.9 million at target performance, $1.5 million at threshold performance and $4.4 million at maximum performance, with the opportunity to earn an additional $0.7 million annually in the event of extraordinary performance with respect to corporate capital growth goals. The 2021 annual incentive agreement also provides for: (1) a grant with a value of $3.0 million to be made in July 2021, dependent on reaching certain goals relating to the integration of the Acquisition (“Acquisition Related Grant”), which represents the last Acquisition Related Grant; and (2) at our chief executive officer’s option, to be exercised annually for the remainder of the term of the 2021 annual incentive agreement, either (i) a grant with a value of $3.0 million, which will vest in full three years from the date of the grant (“Time Based Vesting Equity Award”) or (ii) a performance based award of restricted stock (“Performance-Based TSR Equity Award”) with an annual value at grant of $12.0 million, relating to our total stockholder return objectives. The Acquisition Related Grant will vest in full on the third In April 2021, our chief executive officer elected to receive the Time Based Vesting Equity Award option in connection with the 2021 annual incentive agreement; therefore, we granted our chief executive officer 184,729 shares of restricted common stock with a grant date fair value of $3.1 million that vest in full in April 2024. Earnings Per Share. A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows: Three Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 69,126 $ 69,126 $ 44,091 $ 44,091 Net income attributable to noncontrolling interest (2) — 8,717 — 8,110 Net income attributable to common stockholders and noncontrolling interest $ 69,126 $ 77,843 $ 44,091 $ 52,201 Weighted average shares outstanding 135,262,197 135,262,197 110,745,572 110,745,572 Dilutive effect of OP Units (2) — 17,056,229 — 20,369,265 Dilutive effect of restricted stock units (3) — 929,734 — 767,561 Dilutive effect of convertible notes (4) — 368,431 — — Weighted average shares outstanding 135,262,197 153,616,591 110,745,572 131,882,398 Net income per common share (1) $ 0.51 $ 0.51 $ 0.40 $ 0.40 Six Months Ended June 30, 2021 2020 Net income (loss) attributable to common stockholders (1) $ 138,606 $ 138,606 $ (15,219) $ (15,219) Net income (loss) attributable to noncontrolling interest (2) — 18,459 — (2,824) Net income (loss) attributable to common stockholders and noncontrolling interest $ 138,606 $ 157,065 $ (15,219) $ (18,043) Weighted average shares outstanding 130,276,499 130,276,499 110,768,992 110,768,992 Dilutive effect of OP Units (2) — 17,307,037 — 20,397,026 Dilutive effect of restricted stock units (3) — 921,187 — — Dilutive effect of convertible notes (4) — 313,307 — — Weighted average shares outstanding 130,276,499 148,818,030 110,768,992 131,166,018 Net income (loss) per common share (1) $ 1.06 $ 1.06 $ (0.14) $ (0.14) (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Our chief executive officer 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | Note 16 — Income Taxes As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT-taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. The Agency Business is operated through our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. In the three and six months ended June 30, 2021, we recorded a tax provision of $11.0 million and $23.5 million, respectively. In the three and six months ended June 30, 2020, we recorded a tax provision of $12.1 million and a tax benefit of $2.3 million, respectively.The tax provision recorded in the three months ended June 30, 2021 consisted of a current tax provision of $11.0 million and a deferred tax benefit of less than $0.1 million. The tax provision recorded in the six months ended June 30, 2021 consisted of a current and deferred tax provision of $19.0 million and $4.5 million. The tax provision recorded in the three months ended June 30, 2020 consisted of a deferred tax provision of $10.9 million and a current tax provision of $1.2 million. The tax benefit recorded in the six months ended June 30, 2020 consisted of a deferred tax benefit of $9.0 million and a current tax provision of $6.7 million. Current and deferred taxes are primarily recorded on the portion of earnings (losses) recognized by us with respect to our interest in the TRS’s. Deferred income tax assets and liabilities are calculated based on temporary differences between our U.S. GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2021 | |
Agreements and Transactions with Related Parties | |
Agreements and Transactions with Related Parties | Note 17 — Agreements and Transactions with Related Parties Support Agreement and Employee Secondment Agreement. Other Related Party Transactions. Due to related party was $6.2 million and $2.4 million at June 30, 2021 and December 31, 2020, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions. In March 2021, we originated a $63.4 million bridge loan to a third-party to purchase a multifamily property from a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members, which fund has no continued involvement with the property following the purchase. The loan has an interest rate of LIBOR plus 3.75% with a LIBOR floor of 0.25% and matures in March 2024. Interest income recorded from this loan was $0.7 million for both the three and six months ended June 30, 2021. In December 2020, we committed to fund a $32.5 million bridge loan (of which $1.5 million was funded as of June 30, 2021) and made a $3.5 million preferred equity investment in a SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 21.8% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus In October 2020, we committed to fund a $30.5 million bridge loan and made a $4.6 million preferred equity investment in a SFR build-to-rent construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9% equity interest in the borrowing entity. The bridge loan, which was not funded as of June 30, 2021, has an interest rate of LIBOR plus 5.50% with a LIBOR floor of 0.75% and matures in May 2023 and the preferred equity investment has a fixed rate of 12% and matures in April 2023. Interest income recorded from the preferred equity investment was $0.2 million and $0.3 million for the three and six months ended June 30, 2021, respectively. 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. Interest income recorded from these loans was $0.3 million and $0.7 million for the three and six months ended June 30, 2021, respectively, and $0.6 million and $1.4 million for the three and six months ended June 30, 2020, respectively. In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. In 2019, we entered into an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives' charter. During the six months ended June 30, 2021 and 2020, we reimbursed the aircraft owner $0.1 million and $0.3 million, respectively, for the flights chartered by our executives pursuant the agreement. In 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment (of which $15.7 million was funded as of June 30, 2021) for an 18% interest in AMAC III. During both the three and six months ended June 30, 2021, the loss recorded from this investment was de minimis. During the three and six months ended June 30, 2020, we recorded a loss of $0.5 million and $0.6 million, 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 $35.4 million bridge loan, which bears interest at a rate of LIBOR plus 3.50% 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 these loans totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2021, respectively, and $0.7 million and $1.6 million for the three and six months ended June 30, 2020, respectively. In 2018, we originated a $37.5 million bridge loan, which was used to purchase several multifamily properties. In 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 was $0.8 million and $1.4 million for the three and six months ended June 30, 2020, 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 had an interest rate of LIBOR plus 4.0% with a LIBOR floor of 2.125% and was scheduled to mature in July 2021. In January 2021, the borrower repaid this loan in full. Interest income recorded from this loan was $0.3 million and $0.6 million for the three and six months ended June 30, 2020, 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 owns a 10.8% interest in the borrowing entity. The loan was used to purchase several undeveloped parcels of land. The loan has 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 was $0.1 million for the six months ended June 30, 2020. In 2018, we originated a $21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% in the borrowing entity. The loan has an interest rate of LIBOR plus 4.75% with a LIBOR floor of 1.25% and was scheduled to mature in June 2021, which was extended to August 2021. Interest income recorded from this loan was $0.3 million for both the three months ended June 30, 2021 and 2020, and $0.7 million for both the six months ended June 30, 2021 and 2020. In 2018, we acquired a $9.4 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and was scheduled to mature in January 2021. In January 2021, the maturity date of this loan was extended to January 2022. Interest income recorded from this loan was $0.1 million for both the three months ended June 30, 2021 and 2020, and $0.3 million for both the six months ended June 30, 2021 and 2020. 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 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 this loan was $0.5 million for both the three months ended June 30, 2021 and 2020, and $1.0 million for both the six months ended June 30, 2021 and 2020. 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 June 30, 2021. 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 was $0.1 million for all periods presented. In March 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. The Private Label loan bears interest at a fixed rate of 3.1% and the mezzanine loan bears interest at a fixed rate of 9.0% 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 $0.1 million for both the three and six months ended June 30, 2021 and $0.2 million for both the three and six months ended June 30, 2020. In 2015, we invested $9.6 million for 50% of ACM's indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in this entity. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. We recorded income from equity affiliates related to this investment of $4.8 million and $27.3 million in the three and six months ended June 30, 2021, respectively, and $20.9 million and $23.8 million in the three and six months ended June 30, 2020, respectively. During the three and six months ended June 30, 2021, we also received cash distributions totaling $5.6 million and $18.7 million from this investment, respectively, which were classified as returns of capital. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In 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 and 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 $0.2 million during both the three and six months ended June 30, 2020. 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 a distribution of $0.2 million during both the three and six months ended June 30, 2020, which was 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 June 30, 2021, this debt had an aggregate outstanding balance of $609.3 million and is scheduled to mature between 2021 and 2029. Several of our executives, including our chief financial officer, senior counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 35% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. Upon the closing of the Acquisition in 2016, we issued OP Units, each paired with one share of our special voting preferred shares. At June 30, 2021, ACM holds 2,828,629 shares of our common stock and 10,692,668 OP Units, which in the aggregate represents 8.6% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM (in which our chief executive officer has a controlling equity interest in) to own more than the 5% ownership interest limit of our common stock as stated in our amended charter. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Segment Information | Note 18 — Segment Information The summarized statements of operations and balance sheet data, as well as certain other data, by segment are included in the following tables ($ 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 June 30, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 96,498 $ 8,650 $ — $ 105,148 Interest expense 42,748 3,630 — 46,378 Net interest income 53,750 5,020 — 58,770 Other revenue: Gain on sales, including fee-based services, net — 40,901 — 40,901 Mortgage servicing rights — 26,299 — 26,299 Servicing revenue — 29,982 — 29,982 Amortization of MSRs — (14,667) — (14,667) Loss on derivative instruments, net — (2,607) — (2,607) Other income, net 1,255 8 — 1,263 Total other revenue 1,255 79,916 — 81,171 Other expenses: Employee compensation and benefits 11,907 31,793 — 43,700 Selling and administrative 5,248 5,885 — 11,133 Property operating expenses 129 — — 129 Depreciation and amortization 615 1,173 — 1,788 Provision for loss sharing (net of recoveries) — 549 — 549 Provision for credit losses (net of recoveries) (8,333) 518 — (7,815) Total other expenses 9,566 39,918 — 49,484 Income before income from equity affiliates and income taxes 45,439 45,018 — 90,457 Income from equity affiliates 4,759 — — 4,759 Provision for income taxes (682) (10,277) — (10,959) Net income 49,516 34,741 — 84,257 Preferred stock dividends 6,414 — — 6,414 Net income attributable to noncontrolling interest — — 8,717 8,717 Net income attributable to common stockholders $ 43,102 $ 34,741 $ (8,717) $ 69,126 Three Months Ended June 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 74,295 $ 8,785 $ — $ 83,080 Interest expense 36,739 4,563 — 41,302 Net interest income 37,556 4,222 — 41,778 Other revenue: Gain on sales, including fee-based services, net — 26,366 — 26,366 Mortgage servicing rights — 32,417 — 32,417 Servicing revenue — 25,397 — 25,397 Amortization of MSRs — (11,891) — (11,891) Property operating income 751 — — 751 Loss on derivative instruments, net (294) (7,074) — (7,368) Other income, net 990 59 — 1,049 Total other revenue 1,447 65,274 — 66,721 Other expenses: Employee compensation and benefits 9,161 25,277 — 34,438 Selling and administrative 3,533 5,073 — 8,606 Property operating expenses 1,035 — — 1,035 Depreciation and amortization 629 1,332 — 1,961 Provision for loss sharing (net of recoveries) — 2,395 — 2,395 Provision for credit losses (net of recoveries) 10,558 2,156 — 12,714 Total other expenses 24,916 36,233 — 61,149 Income before extinguishment of debt, income from equity affiliates and income taxes 14,087 33,263 — 47,350 Loss on extinguishment of debt (1,592) — — (1,592) Income from equity affiliates 20,408 — — 20,408 Provision for income taxes (164) (11,913) — (12,077) Net income 32,739 21,350 — 54,089 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 8,110 8,110 Net income attributable to common stockholders $ 30,851 $ 21,350 $ (8,110) $ 44,091 Six Months Ended June 30, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 179,708 $ 16,584 $ — $ 196,292 Interest expense 80,972 7,590 — 88,562 Net interest income 98,736 8,994 — 107,730 Other revenue: Gain on sales, including fee-based services, net — 69,768 — 69,768 Mortgage servicing rights — 63,235 — 63,235 Servicing revenue — 59,721 — 59,721 Amortization of MSRs — (28,871) — (28,871) Loss on derivative instruments, net — (5,828) — (5,828) Other income, net 1,935 8 — 1,943 Total other revenue 1,935 158,033 — 159,968 Other expenses: Employee compensation and benefits 23,484 63,190 — 86,674 Selling and administrative 9,761 12,186 — 21,947 Property operating expenses 272 — — 272 Depreciation and amortization 1,197 2,346 — 3,543 Provision for loss sharing (net of recoveries) — 2,201 — 2,201 Provision for credit losses (net of recoveries) (9,362) 472 — (8,890) Total other expenses 25,352 80,395 — 105,747 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 75,319 86,632 — 161,951 Loss on extinguishment of debt (1,370) — — (1,370) Gain on sale of real estate — 1,228 — 1,228 Income from equity affiliates 27,010 — — 27,010 Provision for income taxes (5,665) (17,786) — (23,451) Net income 95,294 70,074 — 165,368 Preferred stock dividends 8,303 — — 8,303 Net income attributable to noncontrolling interest — — 18,459 18,459 Net income attributable to common stockholders $ 86,991 $ 70,074 $ (18,459) $ 138,606 Six Months Ended June 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 152,772 $ 18,834 $ — $ 171,606 Interest expense 80,138 11,146 — 91,284 Net interest income 72,634 7,688 — 80,322 Other revenue: Gain on sales, including fee-based services, net — 40,671 — 40,671 Mortgage servicing rights — 54,351 — 54,351 Servicing revenue — 50,522 — 50,522 Amortization of MSRs — (23,713) — (23,713) Property operating income 2,943 — — 2,943 Loss on derivative instruments, net (3,294) (54,805) — (58,099) Other income, net 2,293 58 — 2,351 Total other revenue 1,942 67,084 — 69,026 Other expenses: Employee compensation and benefits 20,007 48,683 — 68,690 Selling and administrative 7,983 11,675 — 19,658 Property operating expenses 3,478 — — 3,478 Depreciation and amortization 1,248 2,660 — 3,908 Provision for loss sharing (net of recoveries) — 23,932 — 23,932 Provision for credit losses (net of recoveries) 64,448 2,648 — 67,096 Total other expenses 97,164 89,598 — 186,762 Loss before extinguishment of debt, income from equity affiliates and income taxes (22,588) (14,826) — (37,414) Loss on extinguishment of debt (3,546) — — (3,546) Income from equity affiliates 24,401 — — 24,401 (Provision for) benefit from income taxes (248) 2,541 — 2,293 Net loss (1,981) (12,285) — (14,266) Preferred stock dividends 3,777 — — 3,777 Net loss attributable to noncontrolling interest — — (2,824) (2,824) Net loss attributable to common stockholders $ (5,758) $ (12,285) $ 2,824 $ (15,219) (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. June 30, 2021 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 40,353 $ 175,305 $ 215,658 Restricted cash 233,474 15,616 249,090 Loans and investments, net 7,213,915 — 7,213,915 Loans held-for-sale, net — 457,647 457,647 Capitalized mortgage servicing rights, net — 418,653 418,653 Securities held-to-maturity, net — 114,696 114,696 Investments in equity affiliates 86,253 — 86,253 Goodwill and other intangible assets 12,500 90,606 103,106 Other assets 124,328 77,454 201,782 Total assets $ 7,710,823 $ 1,349,977 $ 9,060,800 Liabilities: Debt obligations $ 6,356,490 $ 391,790 $ 6,748,280 Allowance for loss-sharing obligations — 65,645 65,645 Other liabilities 178,934 111,174 290,108 Total liabilities $ 6,535,424 $ 568,609 $ 7,104,033 December 31, 2020 Assets: Cash and cash equivalents $ 172,568 $ 166,960 $ 339,528 Restricted cash 188,226 9,244 197,470 Loans and investments, net 5,285,868 — 5,285,868 Loans held-for-sale, net — 986,919 986,919 Capitalized mortgage servicing rights, net — 379,974 379,974 Securities held-to-maturity, net — 95,524 95,524 Investments in equity affiliates 74,274 — 74,274 Goodwill and other intangible assets 12,500 92,951 105,451 Other assets 142,844 53,134 195,978 Total assets $ 5,876,280 $ 1,784,706 $ 7,660,986 Liabilities: Debt obligations $ 4,872,626 $ 952,038 $ 5,824,664 Allowance for loss-sharing obligations — 64,303 64,303 Other liabilities 203,554 85,780 289,334 Total liabilities $ 5,076,180 $ 1,102,121 $ 6,178,301 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Origination Data: Structured Business Bridge loans (1) $ 1,800,688 $ 298,934 $ 2,806,376 $ 1,084,056 Mezzanine loans 38,257 1,547 94,257 15,722 Preferred equity investments — — — 23,500 Other loans (2) — — 26,238 33,432 Total new loan originations $ 1,838,945 $ 300,481 $ 2,926,871 $ 1,156,710 (1) The three and six months ended June 30, 2021 includes 25 and 43 SFR loans with a UPB of $70.9 million and $114.2 million, respectively. During the three and six months ended June 30, 2021, we committed to fund one and four SFR build-to-rent bridge loans totaling $40.0 million and $138.4 million, respectively. (2) The six months ended June 30, 2021 and 2020 includes 1 and 7 SFR permanent loans with a UPB of $26.2 million and $32.3 million, respectively. Loan payoffs / paydowns $ 662,940 $ 159,174 $ 895,968 $ 434,466 Agency Business Origination Volumes by Investor: Fannie Mae $ 637,494 $ 1,140,181 $ 1,701,477 $ 1,722,154 Private Label 377,184 49,122 529,638 331,467 Freddie Mac 155,914 135,720 270,631 335,431 FHA 130,764 75,533 197,244 93,476 SFR - Fixed Rate 11,996 — 11,996 — Total $ 1,313,352 $ 1,400,556 $ 2,710,986 $ 2,482,528 Total loan commitment volume $ 1,194,344 $ 1,206,723 $ 2,654,479 $ 2,473,941 Loan Sales Data: Agency Business Fannie Mae $ 722,499 $ 1,063,923 $ 2,159,865 $ 1,817,967 Private Label 449,890 727,154 449,890 727,154 FHA 163,602 30,124 230,005 53,437 Freddie Mac 134,122 171,688 408,946 351,391 SFR - Fixed Rate 11,996 — 75,294 — Total $ 1,482,109 $ 1,992,889 $ 3,324,000 $ 2,949,949 Sales margin (fee-based services as a % of loan sales) 2.76 % 1.32 % 2.10 % 1.38 % MSR rate (MSR income as a % of loan commitments) 2.20 % 2.69 % 2.38 % 2.20 % June 30, 2021 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 $ 19,191,969 53.2 8.3 Freddie Mac 4,708,457 28.5 9.8 Private Label 1,176,627 20.0 9.0 FHA 882,899 15.7 21.0 SFR - Fixed Rate 75,103 20.0 5.9 Total $ 26,035,055 45.9 9.0 December 31, 2020 Fannie Mae $ 18,268,268 52.3 8.2 Freddie Mac 4,881,080 27.9 9.9 FHA 752,116 16.3 20.3 Private Label 726,992 20.0 8.7 Total $ 24,628,456 45.4 8.9 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 2020 Annual Report. |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 14. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Beginning early 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 have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of June 30, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Our real estate owned assets previously recorded to real estate owned, net on our consolidated balance sheets are now recorded to other assets for all periods presented. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Description Adoption Date Effect on Financial Statements In December 2019, the Financial Accounting Standards Board issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. First quarter of 2021 The adoption of this guidance did not have a material impact on our consolidated financial statements. Significant Accounting Policies See Item 8 – Financial Statements and Supplementary Data in our 2020 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2020. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation and Significant Accounting Policies | |
Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Description Adoption Date Effect on Financial Statements In December 2019, the Financial Accounting Standards Board issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. First quarter of 2021 The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Loans and Investments (Tables)
Loans and Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Total Count Pay Rate (1) Maturity LTV Ratio (2) LTV Ratio (3) Bridge loans (4) $ 6,907,594 94 % 360 4.75 % 18.6 0 % 75 % Preferred equity investments 224,814 3 % 14 6.39 % 44.7 64 % 90 % Mezzanine loans 224,107 3 % 29 6.61 % 36.2 27 % 83 % Other loans (5) 29,414 <1 % 2 4.63 % 54.2 0 % 69 % 7,385,929 100 % 405 4.85 % 20.1 3 % 76 % Allowance for credit losses (138,447) Unearned revenue (33,567) Loans and investments, net $ 7,213,915 December 31, 2020 Bridge loans (4) $ 5,022,509 92 % 263 5.09 % 16.2 0 % 76 % Preferred equity investments 224,928 4 % 14 7.07 % 49.8 64 % 89 % Mezzanine loans 159,242 3 % 29 7.40 % 45.0 32 % 82 % Other loans (5) 68,403 1 % 22 4.95 % 74.8 0 % 69 % 5,475,082 100 % 328 5.23 % 19.2 4 % 77 % Allowance for credit losses (148,329) Unearned revenue (40,885) Loans and investments, net $ 5,285,868 (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “accrual rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (4) As of June 30, 2021 and December 31, 2020, bridge loans included 77 and 38, respectively, SFR loans with an aggregate UPB of $533.9 million and $309.2 million, respectively, of which $191.5 million and $88.1 million, respectively, was funded. (5) As of June 30, 2021, other loans included 2 variable rate SFR permanent loans and as of December 31, 2020, other loans included 22 SFR permanent loans. |
Summary of the loan portfolio's internal risk ratings and LTV ratios by asset class | A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of June 30, 2021 is as follows ($ in thousands): Wtd. Avg. Wtd. Avg. UPB by Origination Year First Dollar Last Dollar Asset Class / Risk Rating 2021 2020 2019 2018 2017 Prior Total LTV Ratio LTV Ratio Multifamily: Pass $ 1,852,008 $ 753,955 $ 44,035 $ — $ — $ 335 $ 2,650,333 Pass/Watch 699,139 817,032 468,975 121,555 36,000 29,150 2,171,851 Special Mention 50,537 415,935 697,673 111,483 98,138 — 1,373,766 Substandard — 18,840 120,530 16,925 16,500 8,250 181,045 Doubtful — — — — 17,700 — 17,700 Total Multifamily $ 2,601,684 $ 2,005,762 $ 1,331,213 $ 249,963 $ 168,338 $ 37,735 $ 6,394,695 3 % 76 % Land: Percentage of portfolio 87 % Special Mention $ — $ 8,100 $ — $ — $ — $ — $ 8,100 Substandard — 71,018 19,523 — 19,975 127,928 238,444 Total Land $ — $ 79,118 $ 19,523 $ — $ 19,975 $ 127,928 $ 246,544 0 % 94 % Single-Family Rental: Percentage of portfolio 3 % Pass $ 37,023 $ 8,375 $ 31,812 $ — $ — $ — $ 77,210 Pass/Watch 78,882 47,650 8,243 — — — 134,775 Special Mention 2,228 6,732 — — — — 8,960 Total Single-Family Rental $ 118,133 $ 62,757 $ 40,055 $ — $ — $ — $ 220,945 0 % 63 % Healthcare: Percentage of portfolio 3 % Pass $ — $ — $ 6,600 $ — $ — $ — $ 6,600 Pass/Watch — — — 26,850 — — 26,850 Special Mention — — 65,819 14,650 39,650 — 120,119 Doubtful — — — — 4,625 — 4,625 Total Healthcare $ — $ — $ 72,419 $ 41,500 $ 44,275 $ — $ 158,194 0 % 75 % Office: Percentage of portfolio 2 % Special Mention $ — $ 35,410 $ — $ 42,799 $ 43,151 $ 9,636 $ 130,996 Doubtful — — — — — 880 880 Total Office $ — $ 35,410 $ — $ 42,799 $ 43,151 $ 10,516 $ 131,876 0 % 82 % Student Housing: Percentage of portfolio 2 % Pass $ 25,700 $ — $ — $ — $ — $ — $ 25,700 Pass/Watch — — 31,100 — — — 31,100 Substandard — 23,500 — 13,000 24,050 — 60,550 Total Student Housing $ 25,700 $ 23,500 $ 31,100 $ 13,000 $ 24,050 $ — $ 117,350 15 % 74 % Hotel: Percentage of portfolio 2 % Pass/Watch $ — $ 26,000 $ — $ — $ — $ — $ 26,000 Special Mention — — 41,000 — — — 41,000 Total Hotel $ — $ 26,000 $ 41,000 $ — $ — $ — $ 67,000 0 % 85 % Retail: Percentage of portfolio 1 % Pass $ — $ — $ 4,000 $ — $ — $ — $ 4,000 Special Mention — — — 26,600 — — 26,600 Substandard — — — — — 3,445 3,445 Total Retail $ — $ — $ 4,000 $ 26,600 $ — $ 3,445 $ 34,045 9 % 72 % Other: Percentage of portfolio < 1 % Pass $ — $ — $ — $ — $ 13,580 $ — $ 13,580 Doubtful — — — — — 1,700 1,700 Total Other $ — $ — $ — $ — $ 13,580 $ 1,700 $ 15,280 7 % 53 % Percentage of portfolio < 1 % Grand Total $ 2,745,517 $ 2,232,547 $ 1,539,310 $ 373,862 $ 313,369 $ 181,324 $ 7,385,929 3 % 76 % |
Summary of the changes in the allowance for credit losses for our loan portfolio | A summary of the changes in the allowance for credit losses is as follows (in thousands): Three Months Ended June 30, 2021 Land Multifamily Retail Office Healthcare Student Housing Hotel Other Total Allowance for credit losses: Beginning balance $ 78,096 $ 30,029 $ 13,848 $ 8,051 $ 3,872 $ 3,498 $ 7,754 $ 2,152 $ 147,300 Provision for credit losses (net of recoveries) (39) 131 (29) (229) (6) (1,133) (7,529) (19) (8,853) Ending balance $ 78,057 $ 30,160 $ 13,819 $ 7,822 $ 3,866 $ 2,365 $ 225 $ 2,133 $ 138,447 Three Months Ended June 30, 2020 Allowance for credit losses: Beginning balance $ 78,418 $ 31,891 $ 11,322 $ 6,096 $ 3,934 $ 1,142 $ 7,528 $ 1,921 $ 142,252 Provision for credit losses (net of recoveries) (324) 2,715 2,659 2,436 (4) 2,968 144 (35) 10,559 Ending balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 3,930 $ 4,110 $ 7,672 $ 1,886 $ 152,811 Six Months Ended June 30, 2021 Allowance for credit losses: Beginning balance $ 78,150 $ 36,468 $ 13,861 $ 1,846 $ 3,880 $ 4,078 $ 7,759 $ 2,287 $ 148,329 Provision for credit losses (net of recoveries) (93) (6,308) (42) 5,976 (14) (1,713) (7,534) (154) (9,882) Ending balance $ 78,057 $ 30,160 $ 13,819 $ 7,822 $ 3,866 $ 2,365 $ 225 $ 2,133 $ 138,447 Six Months Ended June 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 64 68 29 112 17,294 Provision for credit losses (net of recoveries) 10,148 18,284 13,646 6,745 3,866 4,042 7,643 74 64,448 Ending balance $ 78,094 $ 34,606 $ 13,981 $ 8,532 $ 3,930 $ 4,110 $ 7,672 $ 1,886 $ 152,811 |
Summary of our loans considered impaired by asset class | June 30, 2021 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 $ 127,829 $ 77,868 0 % 99 % Retail 30,045 29,328 13,818 10 % 77 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,136 2,136 1,500 0 % 68 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 172,721 $ 165,666 $ 98,731 2 % 94 % December 31, 2020 Land $ 134,215 $ 127,829 $ 77,869 0 % 99 % Hotel 110,000 89,613 7,500 0 % 94 % Retail 30,079 28,957 13,851 10 % 75 % Healthcare 4,625 4,673 3,845 0 % 83 % Office 2,166 2,166 1,500 0 % 71 % Commercial 1,700 1,700 1,700 63 % 63 % Total $ 282,785 $ 254,938 $ 106,265 1 % 94 % (1) Represents the UPB of nine and ten impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2021 and December 31, 2020, 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): June 30, 2021 December 31, 2020 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 $ 60,550 $ — $ 60,550 $ 36,500 $ — $ 36,500 Multifamily 17,700 — 17,700 17,700 — 17,700 Healthcare 4,625 — 4,625 4,625 — 4,625 Commercial 1,700 — 1,700 1,700 — 1,700 Retail 920 — 920 920 — 920 Office 880 — 880 880 — 880 Total $ 86,375 $ — $ 86,375 $ 62,325 $ — $ 62,325 |
Loans Held-for-Sale, Net (Table
Loans Held-for-Sale, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans Held-for-Sale, Net | |
Summary of loans held-for-sale, net | June 30, 2021 December 31, 2020 Fannie Mae $ 220,944 $ 679,342 Private Label 135,934 56,186 FHA 50,770 53,063 Freddie Mac 39,806 180,004 SFR - Fixed Rate 1,486 — 448,940 968,595 Fair value of future MSR 9,669 21,600 Unearned discount (962) (3,276) Loans held-for-sale, net $ 457,647 $ 986,919 |
Capitalized Mortgage Servicin_2
Capitalized Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Capitalized Mortgage Servicing Rights | |
Summary of capitalized MSR activity | A summary of our capitalized MSR activity is as follows (in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Originated Acquired Total Originated Acquired Total Beginning balance $ 367,428 $ 39,552 $ 406,980 $ 336,466 $ 43,508 $ 379,974 Additions 31,971 — 31,971 77,009 — 77,009 Amortization (11,796) (2,871) (14,667) (22,875) (5,996) (28,871) Write-downs and payoffs (4,540) (1,091) (5,631) (7,537) (1,922) (9,459) Ending balance $ 383,063 $ 35,590 $ 418,653 $ 383,063 $ 35,590 $ 418,653 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Beginning balance $ 230,377 $ 58,577 $ 288,954 $ 221,901 $ 64,519 $ 286,420 Additions 39,875 — 39,875 60,151 — 60,151 Amortization (7,998) (3,893) (11,891) (15,614) (8,099) (23,713) Write-downs and payoffs (1,802) (1,848) (3,650) (5,986) (3,584) (9,570) Ending balance $ 260,452 $ 52,836 $ 313,288 $ 260,452 $ 52,836 $ 313,288 |
Schedule of expected amortization of capitalized MSRs recorded | The expected amortization of capitalized MSRs recorded as of June 30, 2021 is as follows (in thousands): Year Amortization 2021 (six months ending 12/31/2021) $ 29,936 2022 57,277 2023 53,613 2024 49,872 2025 46,778 2026 42,711 Thereafter 138,466 Total $ 418,653 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
MSRs | |
Product and geographic concentrations | |
Schedule of product and geographic concentrations in servicing revenue | Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands): June 30, 2021 Product Concentrations Geographic Concentrations UPB Percent of Percentage Product UPB (1) Total State of Total Fannie Mae $ 19,191,969 74 % Texas 15 % Freddie Mac 4,708,457 18 % New York 11 % Private Label (2) 1,176,627 5 % North Carolina 9 % FHA 882,899 3 % California 8 % SFR - Fixed Rate 75,103 < 1 % Florida 6 % Total $ 26,035,055 100 % Georgia 6 % New Jersey 5 % Other (3) 40 % Total 100 % December 31, 2020 Fannie Mae $ 18,268,268 74 % Texas 16 % Freddie Mac 4,881,080 20 % New York 9 % FHA 752,116 3 % North Carolina 9 % Private Label 726,992 3 % California 9 % Total $ 24,628,456 100 % Florida 7 % Georgia 6 % New Jersey 4 % Other (3) 40 % Total 100 % (1) Excludes loans which we are not collecting a servicing fee. (2) Represents loans we service in connection with our Private Label securitizations (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) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 APL certificates $ 101,868 $ 61,600 $ 6,368 $ 67,968 $ 1,568 B Piece bonds 69,133 53,096 3,939 57,035 547 Total $ 171,001 $ 114,696 $ 10,307 $ 125,003 $ 2,115 December 31, 2020 APL certificates $ 63,627 $ 37,685 $ (2,105) $ 35,580 $ 1,023 B Piece bonds 76,497 57,839 709 58,548 621 Total $ 140,124 $ 95,524 $ (1,396) $ 94,128 $ 1,644 |
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 June 30, 2021 APL B Piece Certificates Bonds Total Beginning balance $ 991 $ 606 $ 1,597 Provision for credit loss expense 577 (59) 518 Ending balance $ 1,568 $ 547 $ 2,115 Six Months Ended June 30, 2021 Beginning balance $ 1,023 $ 621 $ 1,644 Provision for credit loss expense 545 (74) 471 Ending balance $ 1,568 $ 547 $ 2,115 |
Investments in Equity Affilia_2
Investments in Equity Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments in Equity Affiliates | |
Summary of the company's investments in equity affiliates | We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows (in thousands): UPB of Loans to Investments in Equity Affiliates at Equity Affiliates at Equity Affiliates June 30, 2021 December 31, 2020 June 30, 2021 Arbor Residential Investor LLC $ 67,717 $ 59,150 $ — AMAC Holdings III LLC 13,795 10,308 — North Vermont Avenue 2,421 2,496 — 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 $ 86,253 $ 74,274 $ 1,687 |
Summary of statements of income for the Company's investment in residential mortgage banking business | Summarized statements of income for Wakefield Investment Holdings LLC, the third-party entity formed to hold the underlying residential mortgage banking business, are as follows (in thousands): Six Months Ended June 30, 2021 2020 Statements of Income: Total revenues $ 630,400 $ 689,728 Total expenses 476,710 506,259 Net income $ 153,690 $ 183,469 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Obligations | |
Schedule of senior unsecured notes | A summary of our senior unsecured notes is as follows (in thousands): Senior June 30, 2021 December 31, 2020 Unsecured Issuance Carrying Wtd. Avg. Carrying Wtd. Avg. Notes Date Maturity UPB Value (1) Rate (2) UPB Value (1) Rate (2) 5.00% Notes (3) Apr. 2021 Apr. 2026 $ 175,000 $ 172,130 5.00 % $ — $ — — % 8.00% Notes (3) Apr. 2020 Apr. 2023 70,750 69,997 8.00 % 70,750 69,793 8.00 % 4.50% Notes (3) Mar. 2020 Mar. 2027 275,000 272,234 4.50 % 275,000 271,994 4.50 % 4.75% Notes (4) Oct. 2019 Oct. 2024 110,000 108,842 4.75 % 110,000 108,668 4.75 % 5.75% Notes (4) Mar. 2019 Apr. 2024 90,000 88,942 5.75 % 90,000 88,751 5.75 % 5.625% Notes (4) Mar. 2018 May 2023 125,000 123,929 5.63 % 125,000 123,637 5.63 % $ 845,750 $ 836,074 5.23 % $ 670,750 $ 662,843 5.29 % (1) At June 30, 2021 and December 31, 2020, the carrying value is net of deferred financing fees of $9.7 million and $7.9 million, respectively. (2) At June 30, 2021 and December 31, 2020, the aggregate weighted average note rate, including certain fees and costs, was 5.56% and 5.65% , 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. |
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 June 30, 2021 $ 278,300 $ 4,031 $ 3,352 $ 270,917 $ 9,962 December 31, 2020 $ 278,300 $ 5,636 $ 4,691 $ 267,973 $ 9,962 |
Credit and Repurchase Facilities | |
Debt Obligations | |
Schedule of borrowings | Borrowings under our credit and repurchase facilities are as follows ($ in thousands): June 30, 2021 December 31, 2020 Note Debt Collateral Debt Collateral Current Extended Rate Carrying Carrying Wtd. Avg. Carrying Carrying Maturity Maturity Type Value (1) Value Note Rate Value (1) Value Structured Business $1.8B joint repurchase facility Mar. 2022 Mar. 2023 V $ 660,685 $ 947,249 2.51 % $ 681,006 $ 1,054,562 $725M repurchase facility June 2022 Mar. 2023 V 335,477 466,109 2.10 % 191,622 259,559 $250M repurchase facility Mar. 2023 Mar. 2026 V 104,251 260,922 1.87 % — — $198.7M repurchase facility (2) Dec. 2021 N/A V 139,441 164,583 3.04 % 71,627 87,242 $187.3M loan specific credit facilities Aug. 2021 to Jan. 2024 N/A V/F 187,059 251,550 3.04 % 148,615 198,550 $150M credit facility Oct. 2022 Oct. 2023 V 8,576 15,132 3.90 % 23,606 31,809 $100M credit facility Aug. 2021 N/A V 58,625 83,800 1.88 % 39,346 47,912 $100M credit facility Oct. 2022 N/A V 9,936 13,773 4.06 % — — $100M repurchase facility Sept. 2021 N/A V 48,847 61,211 1.88 % 31,780 40,551 $50M credit facility April 2022 N/A V 22,407 28,009 2.13 % 15,992 21,300 $30M working capital facility Nov. 2021 N/A V — — — 30,000 — $25M credit facility June 2022 June 2023 V 12,583 18,314 2.38 % 9,323 14,340 $1M master security agreements Dec. 2022 N/A F 944 — 4.01 % 1,441 — Repurchase facilities - securities (3) N/A N/A V 34,567 — 3.55 % 38,487 — Structured Business total $ 1,623,398 $ 2,310,652 2.48 % $ 1,282,845 $ 1,755,825 Agency Business $750M ASAP agreement N/A N/A V $ 76,943 $ 76,943 1.40 % $ 301,455 $ 302,491 $400M repurchase facility Oct. 2021 N/A V 119,382 119,398 1.60 % 174,515 174,555 $200M joint repurchase facility Mar. 2022 N/A V 104,876 135,934 1.85 % 42,808 56,186 $200M credit facility Mar. 2022 N/A V 71,656 95,575 1.60 % 294,732 296,698 $150M credit facility Aug 2021 N/A V 15,073 15,073 1.65 % 49,632 49,754 $100M credit facility Aug. 2021 N/A V 2,592 2,600 1.65 % 88,896 88,911 $1.3M repurchase facility (2) Dec. 2021 N/A V 1,268 1,487 3.00 % — — Agency Business total $ 391,790 $ 447,010 1.64 % $ 952,038 $ 968,595 Consolidated total $ 2,015,188 $ 2,757,662 2.32 % $ 2,234,883 $ 2,724,420 V = ; F = Fixed Note Rate (1) The debt carrying value for the Structured Business at June 30, 2021 and December 31, 2020 was net of unamortized deferred finance costs of $4.0 million and $3.3 million, respectively. The debt carrying value for the Agency Business at June 30, 2021 and December 31, 2020 was net of unamortized deferred finance costs of $2.2 million and $0.6 million, respectively. (2) A portion of this repurchase facility was used to finance a fixed rate SFR permanent loan reported through our Agency Business. (3) These repurchase facilities are subject to margin call provisions associated with changes in interest spreads. As of June 30, 2021 and December 31, 2020, these facilities were collateralized by our B Piece bonds with a carrying value of $53.1 million and $58.5 million, respectively, and an SFR bond with a carrying value of $10.0 million at December 31, 2020. |
CLOs | |
Debt Obligations | |
Schedule of borrowings | Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands): Debt Collateral (3) Loans Cash Carrying Wtd. Avg. Carrying Restricted June 30, 2021 Face Value Value (1) Rate (2) UPB Value Cash (4) CLO XV $ 674,412 $ 668,823 1.42 % $ 674,753 $ 674,753 $ 128,015 CLO XIV 655,475 650,116 1.45 % 766,872 766,872 — CLO XIII 668,000 664,396 1.54 % 770,086 770,086 17,749 CLO XII 534,193 531,295 1.62 % 614,751 614,751 15,412 CLO XI 533,000 530,470 1.56 % 643,450 643,450 884 CLO X 441,000 438,988 1.57 % 534,261 534,261 16,000 Total CLOs $ 3,506,080 $ 3,484,088 1.52 % $ 4,004,173 $ 4,004,173 $ 178,060 December 31, 2020 CLO XIII $ 668,000 $ 663,804 1.58 % $ 768,664 $ 768,664 $ 43 CLO XII 534,193 530,673 1.66 % 628,935 628,935 2,005 CLO XI 533,000 529,859 1.61 % 555,157 555,157 92,395 CLO X 441,000 438,442 1.61 % 522,132 522,132 25,537 CLO IX 356,150 354,531 1.53 % 457,903 457,903 18,703 Total CLOs $ 2,532,343 $ 2,517,309 1.60 % $ 2,932,791 $ 2,932,791 $ 138,683 (1) Debt carrying value is net of $22.0 million and $15.0 million of deferred financing fees at June 30, 2021 and December 31, 2020, respectively. (2) At June 30, 2021 and December 31, 2020, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 1.80% and 1.93%, respectively. (3) As of June 30, 2021 and December 31, 2020, there were no collateral deemed a “credit risk” as defined by the CLO indentures. (4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $38.1 million and $49.5 million at June 30, 2021 and December 31, 2020, 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 July 2021 are as follows: Cash Flow Triggers CLO X CLO XI CLO XII CLO XIII CLO XIV CLO XV Overcollateralization (1) Current 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % 120.85 % Limit 125.98 % 120.95 % 117.87 % 118.76 % 118.76 % 119.85 % Pass / Fail Pass Pass Pass Pass Pass Pass Interest Coverage (2) Current 449.62 % 370.22 % 355.36 % 389.99 % 434.76 % 240.42 % Limit 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % 120.00 % Pass / Fail Pass Pass Pass Pass Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. |
Schedule of company's CLO overcollateralization ratios | Determination (1) CLO X CLO XI CLO XII CLO XIII CLO XIV CLO XV July 2021 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % 120.85 % April 2021 126.98 % 121.95 % 118.87 % 119.76 % 119.76 % — January 2021 126.98 % 121.95 % 118.87 % 119.76 % — — October 2020 126.98 % 121.95 % 118.87 % 119.76 % — — July 2020 126.98 % 121.95 % 118.87 % 119.76 % — — (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) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance $ 65,893 $ 70,752 $ 64,303 $ 34,648 Impact of adopting CECL - January 1, 2020 — — — 14,406 Provisions for loss sharing 716 2,673 2,464 24,569 Provisions reversal for loan repayments (167) (277) (263) (636) Recoveries (charge-offs), net (797) 72 (859) 233 Ending balance $ 65,645 $ 73,220 $ 65,645 $ 73,220 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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): June 30, 2021 Fair Value Notional Balance Sheet Derivative Derivative Derivative Count Value Location Assets Liabilities Agency Business Rate Lock Commitments 5 $ 16,550 Other Assets/Other Liabilities $ 124 $ (127) Forward Sale Commitments 43 328,069 Other Assets/Other Liabilities 2,263 (266) Swap Futures 2,196 219,600 — — $ 564,219 $ 2,387 $ (393) December 31, 2020 Agency Business Rate Lock Commitments 7 $ 136,354 Other Assets/Other Liabilities $ 1,967 $ (231) Forward Sale Commitments 114 1,048,763 Other Assets/Other Liabilities 1,925 (990) Swap Futures 453 45,300 — — $ 1,230,417 $ 3,892 $ (1,221) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value | |
Schedule of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments | June 30, 2021 December 31, 2020 Principal / Carrying Estimated Principal / Carrying Estimated Notional Amount Value Fair Value Notional Amount Value Fair Value Financial assets: Loans and investments, net $ 7,385,929 $ 7,213,915 $ 7,421,181 $ 5,475,082 $ 5,285,868 $ 5,428,141 Loans held-for-sale, net 448,940 457,647 469,195 968,595 986,919 1,007,294 Capitalized mortgage servicing rights, net n/a 418,653 471,275 n/a 379,974 415,495 Securities held-to-maturity, net 171,001 114,696 125,003 140,124 95,524 94,128 Derivative financial instruments 308,421 2,387 2,387 865,975 3,892 3,892 Financial liabilities: Credit and repurchase facilities $ 2,021,412 $ 2,015,188 $ 2,016,291 $ 2,238,722 $ 2,234,883 $ 2,235,668 Collateralized loan obligations 3,506,080 3,484,088 3,506,460 2,532,343 2,517,309 2,495,195 Senior unsecured notes 845,750 836,074 853,814 670,750 662,843 670,117 Convertible senior unsecured notes, net 278,300 270,917 304,689 278,300 267,973 280,636 Junior subordinated notes 154,336 142,013 100,650 154,336 141,656 99,594 Derivative financial instruments 36,198 393 393 319,142 1,221 1,221 |
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 $ 2,387 $ 2,387 $ — $ 2,263 $ 124 Financial liabilities: Derivative financial instruments $ 393 $ 393 $ — $ 393 $ — |
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) $ 66,935 $ 66,935 $ — $ — $ 66,935 (1) We had an allowance for credit losses of $98.7 million relating to nine impaired loans with an aggregate carrying value, before loan loss reserves, of $165.7 million at June 30, 2021. |
Schedule of quantitative information about Level 3 fair value measurements | Quantitative information about Level 3 fair value measurements at June 30, 2021 is as follows ($ in thousands): Valuation Fair Value Techniques Significant Unobservable Inputs Financial assets: Impaired loans: Land $ 49,960 Discounted cash flows Discount rate 21.50 % Revenue growth rate 3.00 % Discount rate 10.15 % Retail 15,511 Discounted cash flows Capitalization rate 9.25 % Revenue growth rate 1.68 % Healthcare 828 Discounted cash flows Capitalization rate 14.30 % Discount rate 11.00 % Office 636 Discounted cash flows Capitalization rate 9.00 % Revenue growth rate 2.50 % Derivative financial instruments: Rate lock commitments 124 Discounted cash flows W/A discount rate 8.44 % |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivative assets and liabilities, net Beginning balance $ 1,439 $ 2,069 $ 1,967 $ 1,066 Settlements (23,045) (33,936) (58,074) (54,867) Realized gains recorded in earnings 21,606 31,867 56,107 53,801 Unrealized gains recorded in earnings 124 549 124 549 Ending balance $ 124 $ 549 $ 124 $ 549 |
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 June 30, 2021 Principal Amount Servicing Rights Movement Effect Adjustment Rate lock commitments $ 16,550 $ 124 $ 127 $ 251 Forward sale commitments 328,069 — (127) (127) Loans held-for-sale, net (1) 448,940 9,669 — 9,669 Total $ 9,793 $ — $ 9,793 (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 $ 7,213,915 $ 7,421,181 $ — $ — $ 7,421,181 Loans held-for-sale, net 457,647 469,195 — 459,526 9,669 Capitalized mortgage servicing rights, net 418,653 471,275 — — 471,275 Securities held-to-maturity, net 114,696 125,003 — — 125,003 Financial liabilities: Credit and repurchase facilities $ 2,015,188 $ 2,016,291 $ — $ 391,790 $ 1,624,501 Collateralized loan obligations 3,484,088 3,506,460 — — 3,506,460 Senior unsecured notes 836,074 853,814 853,814 — — Convertible senior unsecured notes, net 270,917 304,689 — 304,689 — Junior subordinated notes 142,013 100,650 — — 100,650 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Schedule of maturities of operating lease liabilities | Debt Obligations and Operating Leases. Minimum Annual Debt Operating Lease Year Obligations Payments Total 2021 (six months ending December 31, 2021) $ 859,768 $ 3,408 $ 863,176 2022 2,496,580 8,257 2,504,837 2023 1,371,081 8,031 1,379,112 2024 1,017,797 7,926 1,025,723 2025 256,723 7,978 264,701 2026 340,026 8,282 348,308 Thereafter 463,903 26,098 490,001 Total $ 6,805,878 $ 69,980 $ 6,875,858 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities | |
Schedule of the assets and liabilities related to the consolidated CLOs and Debt Fund | The assets and liabilities related to these consolidated CLOs are as follows (in thousands): June 30, 2021 December 31, 2020 Assets: Restricted cash $ 233,473 $ 188,226 Loans and investments, net 3,990,518 2,923,634 Other assets 26,857 22,587 Total assets $ 4,250,848 $ 3,134,447 Liabilities: Collateralized loan obligations $ 3,484,088 $ 2,517,309 Other liabilities 3,952 2,755 Total liabilities $ 3,488,040 $ 2,520,064 |
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 June 30, 2021 is as follows (in thousands): Type Carrying Amount (1) Loans $ 495,347 B Piece bonds 53,643 APL certificates 63,168 Equity investments 16,216 Agency interest only strips 792 Total $ 629,166 (1) Represents the carrying amount of loans and investments before reserves. At June 30, 2021, $130.0 million of loans to VIEs had corresponding specific loan loss reserves of $79.4 million. The maximum loss exposure as of June 30, 2021 would not exceed the carrying amount of our investment. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Series D February 17, 2021 $ 0.33 February 1, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A May 5, 2021 $ 0.34 April 30, 2021 $ 0.515625 $ 0.484375 $ 0.53125 N/A (1) The dividend declared on April 30, 2021 was for March 1, 2021 through May 31, 2021 and the dividend declared on February 1, 2021 was for December 1, 2020 through February 28, 2021. As mentioned above, we used a portion of the proceeds from our Series D preferred stock to fully redeem our Series A, B and C preferred stock in June 2021. |
Schedule of reconciliation of the numerator and denominator of the basic and diluted EPS computations | Three Months Ended June 30, 2021 2020 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ 69,126 $ 69,126 $ 44,091 $ 44,091 Net income attributable to noncontrolling interest (2) — 8,717 — 8,110 Net income attributable to common stockholders and noncontrolling interest $ 69,126 $ 77,843 $ 44,091 $ 52,201 Weighted average shares outstanding 135,262,197 135,262,197 110,745,572 110,745,572 Dilutive effect of OP Units (2) — 17,056,229 — 20,369,265 Dilutive effect of restricted stock units (3) — 929,734 — 767,561 Dilutive effect of convertible notes (4) — 368,431 — — Weighted average shares outstanding 135,262,197 153,616,591 110,745,572 131,882,398 Net income per common share (1) $ 0.51 $ 0.51 $ 0.40 $ 0.40 Six Months Ended June 30, 2021 2020 Net income (loss) attributable to common stockholders (1) $ 138,606 $ 138,606 $ (15,219) $ (15,219) Net income (loss) attributable to noncontrolling interest (2) — 18,459 — (2,824) Net income (loss) attributable to common stockholders and noncontrolling interest $ 138,606 $ 157,065 $ (15,219) $ (18,043) Weighted average shares outstanding 130,276,499 130,276,499 110,768,992 110,768,992 Dilutive effect of OP Units (2) — 17,307,037 — 20,397,026 Dilutive effect of restricted stock units (3) — 921,187 — — Dilutive effect of convertible notes (4) — 313,307 — — Weighted average shares outstanding 130,276,499 148,818,030 110,768,992 131,166,018 Net income (loss) per common share (1) $ 1.06 $ 1.06 $ (0.14) $ (0.14) (1) Net of preferred stock dividends. (2) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election. (3) Our chief executive officer 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) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Schedule of statement of income and balance sheet by segment | Three Months Ended June 30, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 96,498 $ 8,650 $ — $ 105,148 Interest expense 42,748 3,630 — 46,378 Net interest income 53,750 5,020 — 58,770 Other revenue: Gain on sales, including fee-based services, net — 40,901 — 40,901 Mortgage servicing rights — 26,299 — 26,299 Servicing revenue — 29,982 — 29,982 Amortization of MSRs — (14,667) — (14,667) Loss on derivative instruments, net — (2,607) — (2,607) Other income, net 1,255 8 — 1,263 Total other revenue 1,255 79,916 — 81,171 Other expenses: Employee compensation and benefits 11,907 31,793 — 43,700 Selling and administrative 5,248 5,885 — 11,133 Property operating expenses 129 — — 129 Depreciation and amortization 615 1,173 — 1,788 Provision for loss sharing (net of recoveries) — 549 — 549 Provision for credit losses (net of recoveries) (8,333) 518 — (7,815) Total other expenses 9,566 39,918 — 49,484 Income before income from equity affiliates and income taxes 45,439 45,018 — 90,457 Income from equity affiliates 4,759 — — 4,759 Provision for income taxes (682) (10,277) — (10,959) Net income 49,516 34,741 — 84,257 Preferred stock dividends 6,414 — — 6,414 Net income attributable to noncontrolling interest — — 8,717 8,717 Net income attributable to common stockholders $ 43,102 $ 34,741 $ (8,717) $ 69,126 Three Months Ended June 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 74,295 $ 8,785 $ — $ 83,080 Interest expense 36,739 4,563 — 41,302 Net interest income 37,556 4,222 — 41,778 Other revenue: Gain on sales, including fee-based services, net — 26,366 — 26,366 Mortgage servicing rights — 32,417 — 32,417 Servicing revenue — 25,397 — 25,397 Amortization of MSRs — (11,891) — (11,891) Property operating income 751 — — 751 Loss on derivative instruments, net (294) (7,074) — (7,368) Other income, net 990 59 — 1,049 Total other revenue 1,447 65,274 — 66,721 Other expenses: Employee compensation and benefits 9,161 25,277 — 34,438 Selling and administrative 3,533 5,073 — 8,606 Property operating expenses 1,035 — — 1,035 Depreciation and amortization 629 1,332 — 1,961 Provision for loss sharing (net of recoveries) — 2,395 — 2,395 Provision for credit losses (net of recoveries) 10,558 2,156 — 12,714 Total other expenses 24,916 36,233 — 61,149 Income before extinguishment of debt, income from equity affiliates and income taxes 14,087 33,263 — 47,350 Loss on extinguishment of debt (1,592) — — (1,592) Income from equity affiliates 20,408 — — 20,408 Provision for income taxes (164) (11,913) — (12,077) Net income 32,739 21,350 — 54,089 Preferred stock dividends 1,888 — — 1,888 Net income attributable to noncontrolling interest — — 8,110 8,110 Net income attributable to common stockholders $ 30,851 $ 21,350 $ (8,110) $ 44,091 Six Months Ended June 30, 2021 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 179,708 $ 16,584 $ — $ 196,292 Interest expense 80,972 7,590 — 88,562 Net interest income 98,736 8,994 — 107,730 Other revenue: Gain on sales, including fee-based services, net — 69,768 — 69,768 Mortgage servicing rights — 63,235 — 63,235 Servicing revenue — 59,721 — 59,721 Amortization of MSRs — (28,871) — (28,871) Loss on derivative instruments, net — (5,828) — (5,828) Other income, net 1,935 8 — 1,943 Total other revenue 1,935 158,033 — 159,968 Other expenses: Employee compensation and benefits 23,484 63,190 — 86,674 Selling and administrative 9,761 12,186 — 21,947 Property operating expenses 272 — — 272 Depreciation and amortization 1,197 2,346 — 3,543 Provision for loss sharing (net of recoveries) — 2,201 — 2,201 Provision for credit losses (net of recoveries) (9,362) 472 — (8,890) Total other expenses 25,352 80,395 — 105,747 Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes 75,319 86,632 — 161,951 Loss on extinguishment of debt (1,370) — — (1,370) Gain on sale of real estate — 1,228 — 1,228 Income from equity affiliates 27,010 — — 27,010 Provision for income taxes (5,665) (17,786) — (23,451) Net income 95,294 70,074 — 165,368 Preferred stock dividends 8,303 — — 8,303 Net income attributable to noncontrolling interest — — 18,459 18,459 Net income attributable to common stockholders $ 86,991 $ 70,074 $ (18,459) $ 138,606 Six Months Ended June 30, 2020 Structured Agency Other / Business Business Eliminations (1) Consolidated Interest income $ 152,772 $ 18,834 $ — $ 171,606 Interest expense 80,138 11,146 — 91,284 Net interest income 72,634 7,688 — 80,322 Other revenue: Gain on sales, including fee-based services, net — 40,671 — 40,671 Mortgage servicing rights — 54,351 — 54,351 Servicing revenue — 50,522 — 50,522 Amortization of MSRs — (23,713) — (23,713) Property operating income 2,943 — — 2,943 Loss on derivative instruments, net (3,294) (54,805) — (58,099) Other income, net 2,293 58 — 2,351 Total other revenue 1,942 67,084 — 69,026 Other expenses: Employee compensation and benefits 20,007 48,683 — 68,690 Selling and administrative 7,983 11,675 — 19,658 Property operating expenses 3,478 — — 3,478 Depreciation and amortization 1,248 2,660 — 3,908 Provision for loss sharing (net of recoveries) — 23,932 — 23,932 Provision for credit losses (net of recoveries) 64,448 2,648 — 67,096 Total other expenses 97,164 89,598 — 186,762 Loss before extinguishment of debt, income from equity affiliates and income taxes (22,588) (14,826) — (37,414) Loss on extinguishment of debt (3,546) — — (3,546) Income from equity affiliates 24,401 — — 24,401 (Provision for) benefit from income taxes (248) 2,541 — 2,293 Net loss (1,981) (12,285) — (14,266) Preferred stock dividends 3,777 — — 3,777 Net loss attributable to noncontrolling interest — — (2,824) (2,824) Net loss attributable to common stockholders $ (5,758) $ (12,285) $ 2,824 $ (15,219) (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. June 30, 2021 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 40,353 $ 175,305 $ 215,658 Restricted cash 233,474 15,616 249,090 Loans and investments, net 7,213,915 — 7,213,915 Loans held-for-sale, net — 457,647 457,647 Capitalized mortgage servicing rights, net — 418,653 418,653 Securities held-to-maturity, net — 114,696 114,696 Investments in equity affiliates 86,253 — 86,253 Goodwill and other intangible assets 12,500 90,606 103,106 Other assets 124,328 77,454 201,782 Total assets $ 7,710,823 $ 1,349,977 $ 9,060,800 Liabilities: Debt obligations $ 6,356,490 $ 391,790 $ 6,748,280 Allowance for loss-sharing obligations — 65,645 65,645 Other liabilities 178,934 111,174 290,108 Total liabilities $ 6,535,424 $ 568,609 $ 7,104,033 December 31, 2020 Assets: Cash and cash equivalents $ 172,568 $ 166,960 $ 339,528 Restricted cash 188,226 9,244 197,470 Loans and investments, net 5,285,868 — 5,285,868 Loans held-for-sale, net — 986,919 986,919 Capitalized mortgage servicing rights, net — 379,974 379,974 Securities held-to-maturity, net — 95,524 95,524 Investments in equity affiliates 74,274 — 74,274 Goodwill and other intangible assets 12,500 92,951 105,451 Other assets 142,844 53,134 195,978 Total assets $ 5,876,280 $ 1,784,706 $ 7,660,986 Liabilities: Debt obligations $ 4,872,626 $ 952,038 $ 5,824,664 Allowance for loss-sharing obligations — 64,303 64,303 Other liabilities 203,554 85,780 289,334 Total liabilities $ 5,076,180 $ 1,102,121 $ 6,178,301 |
Schedule of origination data and loan sales data | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Origination Data: Structured Business Bridge loans (1) $ 1,800,688 $ 298,934 $ 2,806,376 $ 1,084,056 Mezzanine loans 38,257 1,547 94,257 15,722 Preferred equity investments — — — 23,500 Other loans (2) — — 26,238 33,432 Total new loan originations $ 1,838,945 $ 300,481 $ 2,926,871 $ 1,156,710 (1) The three and six months ended June 30, 2021 includes 25 and 43 SFR loans with a UPB of $70.9 million and $114.2 million, respectively. During the three and six months ended June 30, 2021, we committed to fund one and four SFR build-to-rent bridge loans totaling $40.0 million and $138.4 million, respectively. (2) The six months ended June 30, 2021 and 2020 includes 1 and 7 SFR permanent loans with a UPB of $26.2 million and $32.3 million, respectively. Loan payoffs / paydowns $ 662,940 $ 159,174 $ 895,968 $ 434,466 Agency Business Origination Volumes by Investor: Fannie Mae $ 637,494 $ 1,140,181 $ 1,701,477 $ 1,722,154 Private Label 377,184 49,122 529,638 331,467 Freddie Mac 155,914 135,720 270,631 335,431 FHA 130,764 75,533 197,244 93,476 SFR - Fixed Rate 11,996 — 11,996 — Total $ 1,313,352 $ 1,400,556 $ 2,710,986 $ 2,482,528 Total loan commitment volume $ 1,194,344 $ 1,206,723 $ 2,654,479 $ 2,473,941 Loan Sales Data: Agency Business Fannie Mae $ 722,499 $ 1,063,923 $ 2,159,865 $ 1,817,967 Private Label 449,890 727,154 449,890 727,154 FHA 163,602 30,124 230,005 53,437 Freddie Mac 134,122 171,688 408,946 351,391 SFR - Fixed Rate 11,996 — 75,294 — Total $ 1,482,109 $ 1,992,889 $ 3,324,000 $ 2,949,949 Sales margin (fee-based services as a % of loan sales) 2.76 % 1.32 % 2.10 % 1.38 % MSR rate (MSR income as a % of loan commitments) 2.20 % 2.69 % 2.38 % 2.20 % |
Schedule of key servicing metrics for Agency Business | June 30, 2021 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 $ 19,191,969 53.2 8.3 Freddie Mac 4,708,457 28.5 9.8 Private Label 1,176,627 20.0 9.0 FHA 882,899 15.7 21.0 SFR - Fixed Rate 75,103 20.0 5.9 Total $ 26,035,055 45.9 9.0 December 31, 2020 Fannie Mae $ 18,268,268 52.3 8.2 Freddie Mac 4,881,080 27.9 9.9 FHA 752,116 16.3 20.3 Private Label 726,992 20.0 8.7 Total $ 24,628,456 45.4 8.9 |
Description of Business (Detail
Description of Business (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Basis of Presentation and Significant Accounting Policies | ||
Increase to accumulated deficit | $ 12,084 | $ 63,442 |
Allowance for credit losses: | ||
Securities held-to-maturity, net | 114,696 | 95,524 |
Liabilities: | ||
Allowance for loss-sharing obligations | $ 65,645 | $ 64,303 |
Loans and Investments - Investm
Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($)loanborrower | Dec. 31, 2020USD ($)borrowerloan | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | |
Loans and Investments | ||||||
Loans and investments, gross | $ 7,385,929,000 | $ 5,475,082,000 | ||||
Allowance for credit losses | (138,447,000) | (148,329,000) | $ (147,300,000) | $ (152,811,000) | $ (142,252,000) | $ (152,811,000) |
Unearned revenue | (33,567,000) | (40,885,000) | ||||
Loans and investments, net | $ 7,213,915,000 | $ 5,285,868,000 | ||||
Percent of Total | 100.00% | 100.00% | ||||
Loan Count | loan | 405 | 328 | ||||
Wtd. Avg. Pay Rate (as a percent) | 4.85% | 5.23% | ||||
Wtd. Avg. Remaining Months to Maturity | 20 months 3 days | 19 months 6 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | 4.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 77.00% | ||||
Credit risk concentration | ||||||
Loans and Investments | ||||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | |||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | |||||
Credit risk concentration | Single-Family Rental | ||||||
Loans and Investments | ||||||
Percent of Total | 3.00% | |||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 63.00% | |||||
Total assets | Credit risk concentration | ||||||
Loans and Investments | ||||||
Loan Count | loan | 21 | 22 | ||||
Number of different borrowers | borrower | 5 | 5 | ||||
Total assets | Credit risk concentration | Five Borrowers | ||||||
Loans and Investments | ||||||
Concentration risk, percentage | 12.00% | 12.00% | ||||
Bridge loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 6,907,594,000 | $ 5,022,509,000 | ||||
Percent of Total | 94.00% | 92.00% | ||||
Loan Count | loan | 360 | 263 | ||||
Wtd. Avg. Pay Rate (as a percent) | 4.75% | 5.09% | ||||
Wtd. Avg. Remaining Months to Maturity | 18 months 18 days | 16 months 6 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 75.00% | 76.00% | ||||
Bridge loans | Single-Family Rental | ||||||
Loans and Investments | ||||||
Number of loans under the loan portfolio | loan | 77 | 38 | ||||
Total loan commitment | $ 533,900,000 | $ 309,200,000 | ||||
Preferred equity investments | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 224,814,000 | $ 224,928,000 | ||||
Percent of Total | 3.00% | 4.00% | ||||
Loan Count | loan | 14 | 14 | ||||
Wtd. Avg. Pay Rate (as a percent) | 6.39% | 7.07% | ||||
Wtd. Avg. Remaining Months to Maturity | 44 months 21 days | 49 months 24 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 64.00% | 64.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 90.00% | 89.00% | ||||
Mezzanine loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 224,107,000 | $ 159,242,000 | ||||
Percent of Total | 3.00% | 3.00% | ||||
Loan Count | loan | 29 | 29 | ||||
Wtd. Avg. Pay Rate (as a percent) | 6.61% | 7.40% | ||||
Wtd. Avg. Remaining Months to Maturity | 36 months 6 days | 45 months | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 27.00% | 32.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 83.00% | 82.00% | ||||
Other loans | ||||||
Loans and Investments | ||||||
Loans and investments, gross | $ 29,414,000 | $ 68,403,000 | ||||
Percent of Total | 1.00% | 1.00% | ||||
Loan Count | loan | 2 | 22 | ||||
Wtd. Avg. Pay Rate (as a percent) | 4.63% | 4.95% | ||||
Wtd. Avg. Remaining Months to Maturity | 54 months 6 days | 74 months 24 days | ||||
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ||||
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 69.00% | 69.00% | ||||
Other loans | Single-Family Rental | ||||||
Loans and Investments | ||||||
Number of loans under the loan portfolio | loan | 2 | 22 | ||||
Unpaid principal balance, funded | $ 191,500,000 | $ 88,100,000 | ||||
Transfer of fixed rate SFR from Structured Business to Agency Business | 21 | |||||
Transfer of UPB from Structured Business To Agency Business | $ 65,200,000 |
Loans and Investments - Risk Ra
Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans and Investments | ||
Percentage of Portfolio | 100.00% | 100.00% |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | 4.00% |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | 77.00% |
Credit risk concentration | ||
Loans and Investments | ||
Origination Year 2021 | $ 2,745,517 | |
Origination Year 2020 | 2,232,547 | |
Origination Year 2019 | 1,539,310 | |
Origination Year 2018 | 373,862 | |
Origination Year 2017 | 313,369 | |
Origination Year Prior | 181,324 | |
Amortized cost basis | $ 7,385,929 | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | |
Credit risk concentration | Loans and investments portfolio | New York | ||
Loans and Investments | ||
Concentration risk, percentage | 18.00% | 19.00% |
Credit risk concentration | Loans and investments portfolio | Texas | ||
Loans and Investments | ||
Concentration risk, percentage | 16.00% | 11.00% |
Credit risk concentration | Multifamily | ||
Loans and Investments | ||
Origination Year 2021 | $ 2,601,684 | |
Origination Year 2020 | 2,005,762 | |
Origination Year 2019 | 1,331,213 | |
Origination Year 2018 | 249,963 | |
Origination Year 2017 | 168,338 | |
Origination Year Prior | 37,735 | |
Amortized cost basis | $ 6,394,695 | |
Percentage of Portfolio | 87.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 3.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 76.00% | |
Credit risk concentration | Multifamily | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 1,852,008 | |
Origination Year 2020 | 753,955 | |
Origination Year 2019 | 44,035 | |
Origination Year 2018 | 121,555 | |
Origination Year Prior | 335 | |
Amortized cost basis | 2,650,333 | |
Credit risk concentration | Multifamily | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | 699,139 | |
Origination Year 2020 | 817,032 | |
Origination Year 2019 | 468,975 | |
Origination Year 2018 | 111,483 | |
Origination Year 2017 | 36,000 | |
Origination Year Prior | 29,150 | |
Amortized cost basis | 2,171,851 | |
Credit risk concentration | Multifamily | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 50,537 | |
Origination Year 2020 | 415,935 | |
Origination Year 2019 | 697,673 | |
Origination Year 2018 | 16,925 | |
Origination Year 2017 | 98,138 | |
Origination Year Prior | 8,250 | |
Amortized cost basis | 1,373,766 | |
Credit risk concentration | Multifamily | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 18,840 | |
Origination Year 2019 | 120,530 | |
Origination Year 2017 | 16,500 | |
Amortized cost basis | 181,045 | |
Credit risk concentration | Multifamily | Doubtful | ||
Loans and Investments | ||
Origination Year 2017 | 17,700 | |
Amortized cost basis | 17,700 | |
Credit risk concentration | Land | ||
Loans and Investments | ||
Origination Year 2020 | 79,118 | |
Origination Year 2019 | 19,523 | |
Origination Year 2017 | 19,975 | |
Origination Year Prior | 127,928 | |
Amortized cost basis | $ 246,544 | |
Percentage of Portfolio | 3.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 94.00% | |
Credit risk concentration | Land | Special Mention | ||
Loans and Investments | ||
Origination Year 2020 | $ 8,100 | |
Amortized cost basis | 8,100 | |
Credit risk concentration | Land | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 71,018 | |
Origination Year 2019 | 19,523 | |
Origination Year 2017 | 19,975 | |
Origination Year Prior | 127,928 | |
Amortized cost basis | 238,444 | |
Credit risk concentration | Healthcare | ||
Loans and Investments | ||
Origination Year 2019 | 72,419 | |
Origination Year 2018 | 41,500 | |
Origination Year 2017 | 44,275 | |
Amortized cost basis | $ 158,194 | |
Percentage of Portfolio | 2.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 75.00% | |
Credit risk concentration | Healthcare | Pass | ||
Loans and Investments | ||
Origination Year 2019 | $ 6,600 | |
Amortized cost basis | 6,600 | |
Credit risk concentration | Healthcare | Special Mention | ||
Loans and Investments | ||
Origination Year 2019 | 65,819 | |
Origination Year 2018 | 14,650 | |
Origination Year 2017 | 39,650 | |
Amortized cost basis | 120,119 | |
Credit risk concentration | Healthcare | Substandard | ||
Loans and Investments | ||
Origination Year 2018 | 26,850 | |
Amortized cost basis | 26,850 | |
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 2021 | 25,700 | |
Origination Year 2020 | 23,500 | |
Origination Year 2019 | 31,100 | |
Origination Year 2018 | 13,000 | |
Origination Year 2017 | 24,050 | |
Amortized cost basis | $ 117,350 | |
Percentage of Portfolio | 2.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 15.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 74.00% | |
Credit risk concentration | Student Housing | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 25,700 | |
Amortized cost basis | 25,700 | |
Credit risk concentration | Student Housing | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2019 | 31,100 | |
Amortized cost basis | 31,100 | |
Credit risk concentration | Student Housing | Special Mention | ||
Loans and Investments | ||
Amortized cost basis | 26,600 | |
Credit risk concentration | Student Housing | Substandard | ||
Loans and Investments | ||
Origination Year 2020 | 23,500 | |
Origination Year 2018 | 13,000 | |
Origination Year 2017 | 24,050 | |
Amortized cost basis | 60,550 | |
Credit risk concentration | Office | ||
Loans and Investments | ||
Origination Year 2020 | 35,410 | |
Origination Year 2018 | 42,799 | |
Origination Year 2017 | 43,151 | |
Origination Year Prior | 10,516 | |
Amortized cost basis | $ 131,876 | |
Percentage of Portfolio | 2.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 82.00% | |
Credit risk concentration | Office | Special Mention | ||
Loans and Investments | ||
Origination Year 2020 | $ 35,410 | |
Origination Year 2018 | 42,799 | |
Origination Year 2017 | 43,151 | |
Origination Year Prior | 9,636 | |
Amortized cost basis | 130,996 | |
Credit risk concentration | Office | Doubtful | ||
Loans and Investments | ||
Origination Year Prior | 880 | |
Amortized cost basis | 880 | |
Credit risk concentration | Retail | ||
Loans and Investments | ||
Origination Year 2019 | 4,000 | |
Origination Year 2018 | 26,600 | |
Origination Year Prior | 3,445 | |
Amortized cost basis | $ 34,045 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 9.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 72.00% | |
Credit risk concentration | Retail | Pass | ||
Loans and Investments | ||
Origination Year 2019 | $ 4,000 | |
Amortized cost basis | 4,000 | |
Credit risk concentration | Retail | Special Mention | ||
Loans and Investments | ||
Origination Year 2018 | 26,600 | |
Credit risk concentration | Retail | Substandard | ||
Loans and Investments | ||
Origination Year Prior | 3,445 | |
Amortized cost basis | 3,445 | |
Credit risk concentration | Single-Family Rental | ||
Loans and Investments | ||
Origination Year 2021 | 118,133 | |
Origination Year 2020 | 62,757 | |
Origination Year 2019 | 40,055 | |
Amortized cost basis | $ 220,945 | |
Percentage of Portfolio | 3.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 63.00% | |
Credit risk concentration | Single-Family Rental | Pass | ||
Loans and Investments | ||
Origination Year 2021 | $ 37,023 | |
Origination Year 2020 | 8,375 | |
Origination Year 2019 | 31,812 | |
Amortized cost basis | 77,210 | |
Credit risk concentration | Single-Family Rental | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2021 | 78,882 | |
Origination Year 2020 | 47,650 | |
Origination Year 2019 | 8,243 | |
Amortized cost basis | 134,775 | |
Credit risk concentration | Single-Family Rental | Special Mention | ||
Loans and Investments | ||
Origination Year 2021 | 2,228 | |
Origination Year 2020 | 6,732 | |
Amortized cost basis | 8,960 | |
Credit risk concentration | Hotel | ||
Loans and Investments | ||
Origination Year 2020 | 26,000 | |
Origination Year 2019 | 41,000 | |
Amortized cost basis | $ 67,000 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 0.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 85.00% | |
Credit risk concentration | Hotel | Pass/Watch | ||
Loans and Investments | ||
Origination Year 2020 | $ 26,000 | |
Amortized cost basis | 26 | |
Credit risk concentration | Hotel | Special Mention | ||
Loans and Investments | ||
Origination Year 2019 | 41,000 | |
Amortized cost basis | 41,000 | |
Credit risk concentration | Other | ||
Loans and Investments | ||
Origination Year 2017 | 13,580 | |
Origination Year Prior | 1,700 | |
Amortized cost basis | $ 15,280 | |
Percentage of Portfolio | 1.00% | |
Wtd. Avg. First Dollar LTV Ratio (as percent) | 7.00% | |
Wtd. Avg. Last Dollar LTV Ratio (as percent) | 53.00% | |
Credit risk concentration | Other | Pass | ||
Loans and Investments | ||
Origination Year 2017 | $ 13,580 | |
Amortized cost basis | 13,580 | |
Credit risk concentration | Other | Doubtful | ||
Loans and Investments | ||
Amortized cost basis | $ 1,700 |
Loans and Investments - Allowan
Loans and Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2019 | |
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | $ 147,300 | $ 142,252 | $ 148,329 | |||
Provision for loan losses (net of recoveries) | (8,853) | 10,559 | (9,882) | $ 64,448 | ||
Allowance at end of period | 138,447 | 152,811 | 138,447 | 152,811 | ||
Allowance for credit losses | 138,447 | 152,811 | 138,447 | 152,811 | $ 148,329 | $ 152,811 |
Accrued interest receivable related to loans | 52,900 | 52,900 | 41,600 | |||
As Reported Pre-Adoption | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 71,069 | |||||
Allowance for credit losses | ||||||
Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 17,294 | |||||
Allowance for credit losses | ||||||
Land | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 78,096 | 78,418 | 78,150 | |||
Provision for loan losses (net of recoveries) | (39) | (324) | (93) | 10,148 | ||
Allowance at end of period | 78,057 | 78,094 | 78,057 | 78,094 | ||
Allowance for credit losses | 78,057 | 78,094 | 78,057 | 78,094 | 78,150 | |
Land | As Reported Pre-Adoption | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 67,869 | |||||
Allowance for credit losses | ||||||
Land | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 77 | |||||
Allowance for credit losses | ||||||
Multifamily | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 30,029 | 31,891 | 36,468 | |||
Provision for loan losses (net of recoveries) | 131 | 2,715 | (6,308) | 18,284 | ||
Allowance at end of period | 30,160 | 34,606 | 30,160 | 34,606 | ||
Allowance for credit losses | 30,160 | 34,606 | 30,160 | 34,606 | 36,468 | |
Multifamily | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 16,322 | |||||
Allowance for credit losses | ||||||
Retail | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 13,848 | 11,322 | 13,861 | |||
Provision for loan losses (net of recoveries) | (29) | 2,659 | (42) | 13,646 | ||
Allowance at end of period | 13,819 | 13,981 | 13,819 | 13,981 | ||
Allowance for credit losses | 13,819 | 13,981 | 13,819 | 13,981 | 13,861 | |
Retail | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 335 | |||||
Allowance for credit losses | ||||||
Office | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 8,051 | 6,096 | 1,846 | |||
Provision for loan losses (net of recoveries) | (229) | 2,436 | 5,976 | 6,745 | ||
Allowance at end of period | 7,822 | 8,532 | 7,822 | 8,532 | ||
Allowance for credit losses | 7,822 | 8,532 | 7,822 | 8,532 | 1,846 | |
Office | As Reported Pre-Adoption | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 1,500 | |||||
Allowance for credit losses | ||||||
Office | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 287 | |||||
Allowance for credit losses | ||||||
Healthcare | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 3,872 | 3,934 | 3,880 | |||
Provision for loan losses (net of recoveries) | (6) | (4) | (14) | 3,866 | ||
Allowance at end of period | 3,866 | 3,930 | 3,866 | 3,930 | ||
Allowance for credit losses | 3,866 | 3,930 | 3,866 | 3,930 | 3,880 | |
Healthcare | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 64 | |||||
Allowance for credit losses | ||||||
Student Housing | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 3,498 | 1,142 | 4,078 | |||
Provision for loan losses (net of recoveries) | (1,133) | 2,968 | (1,713) | 4,042 | ||
Allowance at end of period | 2,365 | 4,110 | 2,365 | 4,110 | ||
Allowance for credit losses | 2,365 | 4,110 | 2,365 | 4,110 | 4,078 | |
Student Housing | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 68 | |||||
Allowance for credit losses | ||||||
Hotel | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 7,754 | 7,528 | 7,759 | |||
Provision for loan losses (net of recoveries) | (7,529) | 144 | (7,534) | 7,643 | ||
Allowance at end of period | 225 | 7,672 | 225 | 7,672 | ||
Allowance for credit losses | 225 | 7,672 | 225 | 7,672 | 7,759 | |
Hotel | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 29 | |||||
Allowance for credit losses | ||||||
Other | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 2,152 | 1,921 | 2,287 | |||
Provision for loan losses (net of recoveries) | (19) | (35) | (154) | 74 | ||
Allowance at end of period | 2,133 | 1,886 | 2,133 | 1,886 | ||
Allowance for credit losses | $ 2,133 | 1,886 | $ 2,133 | 1,886 | $ 2,287 | |
Other | As Reported Pre-Adoption | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | 1,700 | |||||
Allowance for credit losses | ||||||
Other | Impact of adopting CECL | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | $ 112 | |||||
Allowance for credit losses | ||||||
Bridge loans | Hotel | ||||||
Changes in allowance for loan losses | ||||||
Allowance at beginning of period | $ 7,500 | |||||
Allowance for credit losses |
Loans and Investments - Summary
Loans and Investments - Summary of impaired loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Loans and Investments | ||
UPB | $ 172,721 | $ 282,785 |
Carrying Value | 165,666 | 254,938 |
Allowance for Credit Losses | $ 98,731 | $ 106,265 |
Wtd. Avg. First Dollar LTV Ratio | 2 | 1 |
Wtd. Avg. Last Dollar LTV Ratio | 94 | 94 |
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | 9 | 10 |
Land | ||
Loans and Investments | ||
UPB | $ 134,215 | $ 134,215 |
Carrying Value | 127,829 | 127,829 |
Allowance for Credit Losses | $ 77,868 | $ 77,869 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 99 | 99 |
Hotel | ||
Loans and Investments | ||
UPB | $ 110,000 | |
Carrying Value | 89,613 | |
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 | $ 30,045 | $ 30,079 |
Carrying Value | 29,328 | 28,957 |
Allowance for Credit Losses | $ 13,818 | $ 13,851 |
Wtd. Avg. First Dollar LTV Ratio | 10 | 10 |
Wtd. Avg. Last Dollar LTV Ratio | 77 | 75 |
Healthcare | ||
Loans and Investments | ||
UPB | $ 4,625 | $ 4,625 |
Carrying Value | 4,673 | 4,673 |
Allowance for Credit Losses | $ 3,845 | $ 3,845 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 83 | 83 |
Office | ||
Loans and Investments | ||
UPB | $ 2,136 | $ 2,166 |
Carrying Value | 2,136 | 2,166 |
Allowance for Credit Losses | $ 1,500 | $ 1,500 |
Wtd. Avg. First Dollar LTV Ratio | 0 | 0 |
Wtd. Avg. Last Dollar LTV Ratio | 68 | 71 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Non-performing loans by asset class | ||
Number of loans | loan | 405 | 328 |
Amortized cost of loans on nonaccrual status | $ 0 | |
UPB | $ 172,721 | $ 282,785 |
Non-performing loans | ||
Non-performing loans by asset class | ||
Number of loans | 8 | 7 |
Carrying value of loans | $ 77,500 | $ 53,800 |
Loan loss reserves | 6,500 | 6,500 |
UPB | 86,375 | 62,325 |
Greater than 90 Days Past Due | ||
Non-performing loans by asset class | ||
Past Due | 0 | |
Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 86,375 | 62,325 |
Student Housing | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 60,550 | 36,500 |
Student Housing | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 60,550 | 36,500 |
Multifamily | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 17,700 | 17,700 |
Multifamily | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 17,700 | 17,700 |
Healthcare | ||
Non-performing loans by asset class | ||
UPB | 4,625 | 4,625 |
Healthcare | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 4,625 | 4,625 |
Healthcare | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 4,625 | 4,625 |
Retail | ||
Non-performing loans by asset class | ||
UPB | 30,045 | 30,079 |
Retail | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 920 | 920 |
Retail | Greater than 90 Days Past Due | Non-performing loans | ||
Non-performing loans by asset class | ||
Past Due | 920 | 920 |
Commercial | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | Non-performing loans | ||
Non-performing loans by asset class | ||
UPB | 1,700 | 1,700 |
Commercial | 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 | 2,136 | 2,166 |
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 - Charge-
Loans and Investments - Charge-offs and Recoveries Narratives (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2021USD ($)loan | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | |
Loans and Investments | ||||||
Number of loans for which no provision for loan loss made | loan | 0 | 0 | ||||
Allowance for credit losses | $ 138,447 | $ 147,300 | $ 148,329 | $ 152,811 | $ 142,252 | $ 152,811 |
Unfunded commitments related to structured loans and investments | $ 524,700 | 353,800 | ||||
Six loans collateralized by a land development project | Maturity date of March 2020 | ||||||
Loans and Investments | ||||||
Number of loans with unpaid principal balance | loan | 6 | |||||
Unpaid principal balance on loans | $ 121,300 | |||||
Five loans collateralized by a land development project | Maturity date of March 2020 | ||||||
Loans and Investments | ||||||
Number of loans with unpaid principal balance | loan | 5 | |||||
Unpaid principal balance on loans | $ 112,000 | |||||
Weighted average accrual rate of interest (as a percent) | 7.91% | |||||
Allowance for credit losses | $ 71,400 | 71,400 | ||||
Hotel | ||||||
Loans and Investments | ||||||
Allowance for credit losses | $ 225 | $ 7,754 | $ 7,759 | $ 7,672 | $ 7,528 |
Loans and Investments - Purchas
Loans and Investments - Purchased Credit Deterioration and Troubled Debt Restructurings (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021USD ($)loan | Jan. 31, 2021 | Aug. 31, 2020USD ($) | Jun. 30, 2021USD ($)itemloan | Jun. 30, 2020USD ($)item | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Purchase of loan | $ 2,814,170 | $ 1,117,004 | ||||||||
Allowance for credit losses | $ 138,447 | $ 138,447 | $ 152,811 | $ 148,329 | $ 147,300 | $ 142,252 | $ 152,811 | |||
Troubled debt restructurings, number | item | 2 | |||||||||
Other loans modification | item | 0 | 0 | ||||||||
Interest reserve | $ 84,400 | $ 78,300 | ||||||||
Number of loans covered under interest reserve | loan | 262 | 262 | 186 | |||||||
Aggregate UPB covered under interest reserve | $ 4,690,000 | $ 4,690,000 | $ 3,600,000 | |||||||
Proceeds from full satisfaction of loans | 95,000 | |||||||||
Reversal of allowance for credit losses | 7,500 | 7,500 | ||||||||
Interest income from loans | 3,500 | |||||||||
Hotel | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Allowance for credit losses | 225 | 225 | $ 7,672 | 7,759 | 7,754 | 7,528 | ||||
Hotel | Forbearance agreement | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Pay rate (as a percent) | 1.00% | |||||||||
Mortgage Loans on Real Estate Fixed Interest Rate | 9.50% | |||||||||
Fixed rate of interest (as a percent) | 9.50% | |||||||||
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 | 13,819 | 13,819 | $ 13,981 | 13,861 | $ 13,848 | 11,322 | ||||
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 | |||||||||
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 | |||||||||
Mortgage Loans on Real Estate Fixed Interest Rate | 12.00% | |||||||||
Fixed rate of interest (as a percent) | 12.00% | |||||||||
Greater than 90 Days Past Due | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Loans past due 90 days or more still accruing interest | $ 0 | $ 0 | $ 0 |
Loans Held-for-Sale, Net (Detai
Loans Held-for-Sale, Net (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Loans Held-for-Sale, Net | |||||
Loans held-for-sale | $ 448,940 | $ 448,940 | $ 968,595 | ||
Fair value of future MSR | 9,669 | 9,669 | 21,600 | ||
Unearned discount | (962) | (962) | (3,276) | ||
Loans held-for-sale, net | 457,647 | 457,647 | $ 986,919 | ||
Gain on sale of loans held-for-sale, including fees | 40,900 | $ 26,400 | $ 69,800 | $ 40,700 | |
Number of loans | loan | 405 | 328 | |||
Proceeds from Sale of Loans Held-for-sale, Excluding Acquisition | 1,480,000 | 1,990,000 | $ 3,320,000 | 2,950,000 | |
Subordinate class of certificates retained | 171,001 | $ 63,600 | 171,001 | $ 63,600 | $ 140,124 |
Amortized cost of loans on nonaccrual status | 0 | ||||
APL certificates | |||||
Loans Held-for-Sale, Net | |||||
Subordinate class of certificates retained | 101,868 | 101,868 | 63,627 | ||
APL certificates | Held-to-Maturity | |||||
Loans Held-for-Sale, Net | |||||
Subordinate class of certificates retained | 101,900 | 101,900 | |||
Greater than 90 Days Past Due | |||||
Loans Held-for-Sale, Net | |||||
Past Due | 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 | 220,944 | $ 220,944 | 679,342 | ||
Private Label | |||||
Loans Held-for-Sale, Net | |||||
Loans held-for-sale, net | 135,934 | $ 135,934 | 56,186 | ||
Period of loans held for sale sold | 180 days | ||||
Proceeds from Sale of Loans Held-for-sale, Excluding Acquisition | $ 449,900 | 727,200 | |||
FHA | |||||
Loans Held-for-Sale, Net | |||||
Loans held-for-sale, net | 50,770 | 50,770 | 53,063 | ||
Freddie Mac | |||||
Loans Held-for-Sale, Net | |||||
Loans held-for-sale, net | 39,806 | 39,806 | $ 180,004 | ||
SFR - Fixed Rate | |||||
Loans Held-for-Sale, Net | |||||
Loans held-for-sale, net | 1,486 | 1,486 | |||
Gain on sale of loans held-for-sale, including fees | $ 2,800 | ||||
Number of loans | 23 | ||||
Proceeds from Sale of Loans Held-for-sale, Excluding Acquisition | $ 75,300 | ||||
Subordinate class of certificates retained | $ 38,200 | $ 38,200 |
Capitalized Mortgage Servicin_3
Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of the year | $ 379,974 | ||||
Balance at end of the year | $ 418,653 | 418,653 | $ 379,974 | ||
MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of the year | 406,980 | $ 288,954 | 379,974 | $ 286,420 | 286,420 |
Additions | 31,971 | 39,875 | 77,009 | 60,151 | |
Amortization | (14,667) | (11,891) | (28,871) | (23,713) | |
Write-downs and payoffs | (5,631) | (3,650) | (9,459) | (9,570) | |
Balance at end of the year | 418,653 | 313,288 | 418,653 | 313,288 | 379,974 |
Prepayment fees collected | 4,200 | 3,000 | 6,900 | 8,100 | |
Valuation allowance | 0 | 0 | $ 0 | ||
Expected amortization of capitalized MSRs balances | |||||
2021 (six months ending 12/31/2021) | 29,936 | 29,936 | |||
2022 | 57,277 | 57,277 | |||
2023 | 53,613 | 53,613 | |||
2024 | 49,872 | 49,872 | |||
2025 | 46,778 | 46,778 | |||
2026 | 42,711 | 42,711 | |||
Thereafter | 138,466 | 138,466 | |||
Total | 418,653 | $ 418,653 | |||
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 | |||||
Estimated life remaining | 8 years 7 months 6 days | 8 years 7 months 6 days | |||
Percentage of MSRs discount rate | 10.00% | ||||
Originated MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of the year | 367,428 | 230,377 | $ 336,466 | 221,901 | $ 221,901 |
Additions | 31,971 | 39,875 | 77,009 | 60,151 | |
Amortization | (11,796) | (7,998) | (22,875) | (15,614) | |
Write-downs and payoffs | (4,540) | (1,802) | (7,537) | (5,986) | |
Balance at end of the year | 383,063 | 260,452 | 383,063 | 260,452 | 336,466 |
Acquired MSRs | |||||
Capitalized Mortgage Servicing Rights | |||||
Balance at beginning of the year | 39,552 | 58,577 | 43,508 | 64,519 | 64,519 |
Amortization | (2,871) | (3,893) | (5,996) | (8,099) | |
Write-downs and payoffs | (1,091) | (1,848) | (1,922) | (3,584) | |
Balance at end of the year | $ 35,590 | $ 52,836 | $ 35,590 | $ 52,836 | $ 43,508 |
Mortgage Servicing (Details)
Mortgage Servicing (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)state | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)state | |
Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
Escrow Deposit | $ 1,530,000 | $ 1,530,000 | $ 1,290,000 | ||
MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | 26,035,055 | $ 26,035,055 | $ 24,628,456 | ||
UPB Percentage of Total | 100.00% | ||||
Weighted average servicing fee (as a percent) | 0.459% | 0.454% | |||
Interest earned on total escrows | 1,100 | $ 1,400 | $ 2,200 | $ 4,500 | |
MSRs | 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 | 810,200 | $ 810,200 | $ 867,600 | ||
Texas | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 15.00% | 16.00% | |||
New York | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 11.00% | 9.00% | |||
North Carolina | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 9.00% | 9.00% | |||
California | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 8.00% | 9.00% | |||
Florida | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 6.00% | 7.00% | |||
Georgia | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 6.00% | 6.00% | |||
New Jersey | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 5.00% | 4.00% | |||
Other | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 40.00% | 40.00% | |||
Fannie Mae | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 74.00% | ||||
Fannie Mae | MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | 19,191,969 | $ 19,191,969 | $ 18,268,268 | ||
Fannie Mae | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 74.00% | ||||
Freddie Mac | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 18.00% | ||||
Freddie Mac | MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | 4,708,457 | $ 4,708,457 | $ 4,881,080 | ||
Freddie Mac | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 20.00% | ||||
FHA | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 3.00% | ||||
FHA | MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | 882,899 | $ 882,899 | $ 752,116 | ||
FHA | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 3.00% | ||||
Private Label | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 5.00% | ||||
Private Label | MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | 1,176,627 | $ 1,176,627 | $ 726,992 | ||
Private Label | MSRs | Fee-based servicing portfolio | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 3.00% | ||||
SFR - Fixed Rate | |||||
Mortgage Servicing | |||||
UPB Percentage of Total | 1.00% | ||||
SFR - Fixed Rate | MSRs | |||||
Mortgage Servicing | |||||
Unpaid principal balance of loans serviced | $ 75,103 | $ 75,103 |
Securities Held-to-Maturity (De
Securities Held-to-Maturity (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | |
Held-to-Maturity | ||||||
Face Value | $ 171,001 | $ 63,600 | $ 171,001 | $ 63,600 | $ 140,124 | |
Net Carrying Value | 114,696 | 114,696 | 95,524 | |||
Unrealized Gain | 10,307 | 10,307 | ||||
Unrealized Loss | (1,396) | |||||
Estimated Fair Value | 125,003 | 125,003 | 94,128 | |||
Allowance for Credit Losses | 2,115 | 2,115 | 1,644 | $ 1,597 | ||
Sale of loans held-for-sale excluding acquired loans | 1,480,000 | $ 1,990,000 | 3,320,000 | $ 2,950,000 | ||
Private Label | ||||||
Held-to-Maturity | ||||||
Sale of loans held-for-sale excluding acquired loans | 449,900 | 727,200 | ||||
B Piece bonds | ||||||
Held-to-Maturity | ||||||
Face Value | 69,133 | 69,133 | 76,497 | |||
Net Carrying Value | 53,096 | 53,096 | 57,839 | |||
Unrealized Gain | 3,939 | 3,939 | 709 | |||
Estimated Fair Value | 57,035 | 57,035 | 58,548 | |||
Allowance for Credit Losses | 547 | $ 547 | $ 621 | 606 | ||
B Piece bonds | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Estimated weighted average remaining maturity period | 6 years | |||||
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% | 10.85% | |||
Weighted average effective interest rate (as a percent) | 11.12% | 11.12% | ||||
Held-to-maturity securities, estimated fiscal year | ||||||
Within one year | $ 12,100 | $ 12,100 | ||||
After one year through five years | 31,900 | 31,900 | ||||
After five years through ten years | 8,700 | 8,700 | ||||
After ten years | 16,400 | 16,400 | ||||
APL certificates | ||||||
Held-to-Maturity | ||||||
Face Value | 101,868 | 101,868 | $ 63,627 | |||
Net Carrying Value | 61,600 | 61,600 | 37,685 | |||
Unrealized Gain | 6,368 | 6,368 | ||||
Unrealized Loss | (2,105) | |||||
Estimated Fair Value | 67,968 | 67,968 | 35,580 | |||
Allowance for Credit Losses | 1,568 | 1,568 | $ 1,023 | $ 991 | ||
APL certificates | Held-to-Maturity | ||||||
Held-to-Maturity | ||||||
Face Value | 101,900 | 101,900 | ||||
Net Carrying Value | $ 61,700 | $ 61,700 | ||||
Weighted average variable interest rate (as a percent) | 4.51% | 4.51% | ||||
Estimated weighted average remaining maturity period | 8 years 10 months 24 days | |||||
Securities maturity term | 10 years | |||||
Weighted average fixed interest rate | 10.09% | 10.15% | ||||
Held-to-maturity securities, estimated fiscal year | ||||||
After five years through ten years | $ 101,900 | $ 101,900 |
Securities Held-to-Maturity Rol
Securities Held-to-Maturity Rollforward of Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in the allowance for credit losses | ||||
Allowance for credit loss, Beginning balance | $ 1,597 | $ 1,644 | ||
Provision for credit loss expense | 518 | 471 | ||
Allowance for credit loss, Ending balance | 2,115 | 2,115 | ||
Impairment of held-to maturity securities | 0 | |||
Held-to-Maturity | ||||
Changes in the allowance for credit losses | ||||
Interest income (including the amortization of discount) | 3,100 | $ 1,700 | 6,000 | $ 4,000 |
APL certificates | ||||
Changes in the allowance for credit losses | ||||
Allowance for credit loss, Beginning balance | 991 | 1,023 | ||
Provision for credit loss expense | 577 | 545 | ||
Allowance for credit loss, Ending balance | 1,568 | 1,568 | ||
B Piece bonds | ||||
Changes in the allowance for credit losses | ||||
Allowance for credit loss, Beginning balance | 606 | 621 | ||
Provision for credit loss expense | (59) | (74) | ||
Allowance for credit loss, Ending balance | $ 547 | $ 547 |
Investments in Equity Affilia_3
Investments in Equity Affiliates, Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | $ 86,253 | $ 74,274 |
UPB of Loans to Equity Affiliates | 1,687 | |
Arbor Residential Investor LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 67,717 | 59,150 |
AMAC Holdings III LLC | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 13,795 | 10,308 |
North Vermont Avenue | ||
Investment in Equity Affiliates | ||
Investment in Equity Affiliates | 2,421 | 2,496 |
Lightstone Value Plus REIT 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, All Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Investment in Equity Affiliates | |||||||
Indirect ownership percentage | 9.20% | ||||||
Income from equity affiliates | $ 4,759 | $ 20,408 | $ 27,010 | $ 24,401 | |||
Noncontrolling interest invested | 21,074 | 60 | |||||
Arbor Residential Investor LLC | |||||||
Investment in Equity Affiliates | |||||||
Indirect ownership percentage | 12.30% | ||||||
Income from equity affiliates | 4,800 | $ 20,900 | 27,300 | $ 23,800 | |||
Distribution received | 5,600 | 18,700 | |||||
Century Summerfield Apartments | |||||||
Investment in Equity Affiliates | |||||||
Equity Investment | $ 17,000 | $ 20,000 | |||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||
Income from equity affiliates | 200 | ||||||
Distribution received | 17,200 | ||||||
AMAC Holdings III LLC | |||||||
Investment in Equity Affiliates | |||||||
Equity Investment | $ 15,700 | 15,700 | |||||
Noncontrolling interest | $ 30,000 | ||||||
Equity investment made | 30,000 | ||||||
Income from equity affiliates | 300 | $ 500 | |||||
Lexford Portfolio | |||||||
Investment in Equity Affiliates | |||||||
Noncontrolling interest | 4,000 | ||||||
Equity investment made | $ 4,000 |
Investments in Equity Affilia_5
Investments in Equity Affiliates, Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statements of Income: | ||||
Total revenues | $ 81,171 | $ 66,721 | $ 159,968 | $ 69,026 |
Total expenses | 49,484 | 61,149 | 105,747 | 186,762 |
Net income (loss) | $ 84,257 | $ 54,089 | 165,368 | (14,266) |
Arbor Residential Investor LLC | ||||
Statements of Income: | ||||
Total revenues | 630,400 | 689,728 | ||
Total expenses | 476,710 | 506,259 | ||
Net income (loss) | $ 153,690 | $ 183,469 |
Debt Obligations, Credit and Re
Debt Obligations, Credit and Repurchase Facilities (Details) - USD ($) | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Dec. 31, 2020 |
Debt Obligations | ||||||||
Debt Carrying Value | $ 2,015,188,000 | $ 2,234,883,000 | ||||||
Collateral Carrying Value | $ 2,757,662,000 | 2,724,420,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.32% | |||||||
Joint Repurchase Facility | ||||||||
Debt Obligations | ||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||
Committed amount | 50,000,000 | |||||||
Matures in March 2021 | $ 5.75 | |||||||
Maximum advance rate | 80.00% | |||||||
$400M repurchase facility | ||||||||
Debt Obligations | ||||||||
Line of Credit Facility, Interest Rate at Period End | 1.75% | 1.75% | ||||||
Repurchase facility - securities | B Piece bonds | ||||||||
Debt Obligations | ||||||||
Collateral Carrying Value | $ 53,100,000 | 58,500,000 | ||||||
$400 million credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 400,000,000 | |||||||
Collateral Carrying Value | 725,000,000 | |||||||
$200M credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 200,000,000 | |||||||
Collateral Carrying Value | $ 250,000,000 | |||||||
Structured Business | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 1,623,398,000 | 1,282,845,000 | ||||||
Collateral Carrying Value | $ 2,310,652,000 | $ 1,755,825,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.48% | |||||||
Weighted average note rate including certain fees and costs (as a percent) | 2.73% | 2.97% | ||||||
Unamortized deferred finance costs | $ 4,000,000 | $ 3,300,000 | ||||||
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) | 69.00% | |||||||
Structured Business | $1.8B joint repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 660,685,000 | $ 681,006,000 | ||||||
Collateral Carrying Value | $ 947,249,000 | 1,054,562,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.51% | |||||||
Maximum borrowing capacity | $ 1,800,000,000 | 1,800,000,000 | ||||||
Structured Business | $400M repurchase facility | ||||||||
Debt Obligations | ||||||||
Variable rate, spread (as a percent) | 1.75% | |||||||
LIBOR Floor rate | 0.35% | 0.35% | ||||||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | ||||||
Decrease in interest rate (as a percent) | 2.00% | |||||||
Utilization of credit facility | $ 250,000,000 | $ 250,000,000 | ||||||
Structured Business | $400M repurchase facility | Minimum | ||||||||
Debt Obligations | ||||||||
Variable rate, spread (as a percent) | 2.00% | |||||||
Structured Business | $400M repurchase facility | Maximum | ||||||||
Debt Obligations | ||||||||
Variable rate, spread (as a percent) | 2.20% | |||||||
Structured Business | $725M repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 335,477,000 | 191,622,000 | ||||||
Collateral Carrying Value | $ 466,109,000 | 259,559,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.10% | |||||||
Maximum borrowing capacity | $ 725,000,000 | 725,000,000 | ||||||
Structured Business | $200 million repurchase facility | ||||||||
Debt Obligations | ||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||||||
Structured Business | $200 million repurchase facility | LIBOR | ||||||||
Debt Obligations | ||||||||
Maximum advance rate | 80.00% | |||||||
Structured Business | $200 million repurchase facility | Minimum | LIBOR | ||||||||
Debt Obligations | ||||||||
Fixed interest rate (as a percent) | 1.75% | 1.75% | ||||||
Structured Business | $200 million repurchase facility | Maximum | LIBOR | ||||||||
Debt Obligations | ||||||||
Fixed interest rate (as a percent) | 2.75% | 2.75% | ||||||
Structured Business | $250M repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 104,251,000 | |||||||
Collateral Carrying Value | $ 260,922,000 | |||||||
Weighted Average Note Rate (as a percent) | 1.87% | |||||||
Maximum borrowing capacity | $ 250,000,000 | 250,000,000 | ||||||
Structured Business | $198.7M repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 139,441,000 | 71,627,000 | ||||||
Collateral Carrying Value | $ 164,583,000 | 87,242,000 | ||||||
Weighted Average Note Rate (as a percent) | 3.04% | |||||||
Maximum borrowing capacity | $ 198,700,000 | 198,700,000 | ||||||
Structured Business | $187.3M loan specific credit facilities | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 187,059,000 | 148,615,000 | ||||||
Collateral Carrying Value | $ 251,550,000 | 198,550,000 | ||||||
Weighted Average Note Rate (as a percent) | 3.04% | |||||||
Maximum borrowing capacity | $ 187,300,000 | 187,300,000 | ||||||
Structured Business | $150M credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 8,576,000 | 23,606,000 | ||||||
Collateral Carrying Value | $ 150,000,000 | $ 150,000,000 | $ 15,132,000 | 31,809,000 | ||||
Weighted Average Note Rate (as a percent) | 3.90% | |||||||
LIBOR Floor rate | 0.15% | |||||||
Maximum borrowing capacity | $ 150,000,000 | 150,000,000 | ||||||
Structured Business | $100 million credit facility | ||||||||
Debt Obligations | ||||||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | ||||||
Structured Business | $100 million credit facility - one | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 58,625,000 | 39,346,000 | ||||||
Collateral Carrying Value | $ 83,800,000 | 47,912,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.88% | |||||||
Maximum borrowing capacity | $ 100,000,000 | 100,000,000 | ||||||
Structured Business | $100 million credit facility - two | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 9,936,000 | |||||||
Collateral Carrying Value | $ 13,773,000 | |||||||
Weighted Average Note Rate (as a percent) | 4.06% | |||||||
Structured Business | $100 million repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 48,847,000 | 31,780,000 | ||||||
Collateral Carrying Value | $ 61,211,000 | 40,551,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.88% | |||||||
Maximum borrowing capacity | $ 100,000,000 | 100,000,000 | ||||||
Structured Business | $50 million credit facility - one | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 22,407,000 | 15,992,000 | ||||||
Collateral Carrying Value | $ 28,009,000 | 21,300,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.13% | |||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | ||||||
Structured Business | $30M working capital facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 30,000,000 | |||||||
Maximum borrowing capacity | 30,000,000 | 30,000,000 | ||||||
Structured Business | $50 million credit facility - two | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 50,000,000 | 50,000,000 | ||||||
Structured Business | $25 million credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 12,583,000 | 9,323,000 | ||||||
Collateral Carrying Value | $ 18,314,000 | 14,340,000 | ||||||
Weighted Average Note Rate (as a percent) | 2.38% | |||||||
Maximum borrowing capacity | $ 25,000,000 | 25,000,000 | ||||||
Structured Business | $1M master security agreements | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 944,000 | 1,441,000 | ||||||
Weighted Average Note Rate (as a percent) | 4.01% | |||||||
Maximum borrowing capacity | $ 1,000,000 | 1,000,000 | ||||||
Structured Business | Repurchase facilities - securities (3) | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 34,567,000 | 38,487,000 | ||||||
Weighted Average Note Rate (as a percent) | 3.55% | |||||||
Structured Business | Repurchase facility - securities | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 10,000,000 | |||||||
Structured Business | $21.6 million credit facility | ||||||||
Debt Obligations | ||||||||
Fixed interest rate (as a percent) | 3.00% | |||||||
Committed amount | $ 21,600,000 | |||||||
Structured Business | 18.2 million credit facility | ||||||||
Debt Obligations | ||||||||
Maximum borrowing capacity | $ 18,200,000 | $ 18,200,000 | ||||||
Structured Business | 18.2 million credit facility | Prime Rate | ||||||||
Debt Obligations | ||||||||
LIBOR Floor rate | 3.25% | |||||||
Agency Business | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | $ 391,790,000 | 952,038,000 | ||||||
Collateral Carrying Value | $ 447,010,000 | 968,595,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.64% | |||||||
Unamortized deferred finance costs | $ 2,200,000 | 600,000 | ||||||
Agency Business | $400M repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 119,382,000 | 174,515,000 | ||||||
Collateral Carrying Value | $ 119,398,000 | 174,555,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.60% | |||||||
Maximum borrowing capacity | $ 400,000,000 | 400,000,000 | ||||||
Agency Business | $150M credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 15,073,000 | 49,632,000 | ||||||
Collateral Carrying Value | $ 15,073,000 | 49,754,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.65% | |||||||
Variable rate, spread (as a percent) | 0.002% | |||||||
LIBOR Floor rate | 0.0025% | |||||||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | 150,000,000 | ||||
Additional borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||||||
Agency Business | $100 million credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 2,592,000 | 88,896,000 | ||||||
Collateral Carrying Value | $ 2,600,000 | 88,911,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.65% | |||||||
Maximum borrowing capacity | $ 100,000,000 | 100,000,000 | ||||||
Agency Business | $750M ASAP agreement | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 76,943,000 | 301,455,000 | ||||||
Collateral Carrying Value | $ 76,943,000 | 302,491,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.40% | |||||||
Maximum borrowing capacity | $ 750,000,000 | 750,000,000 | ||||||
Agency Business | $200M joint repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 104,876,000 | 42,808,000 | ||||||
Collateral Carrying Value | $ 135,934,000 | 56,186,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.85% | |||||||
Maximum borrowing capacity | $ 200,000,000 | 200,000,000 | ||||||
Agency Business | $200M credit facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 71,656,000 | 294,732,000 | ||||||
Collateral Carrying Value | $ 95,575,000 | 296,698,000 | ||||||
Weighted Average Note Rate (as a percent) | 1.60% | |||||||
Maximum borrowing capacity | $ 200,000,000 | 200,000,000 | ||||||
Agency Business | $1.3 million repurchase facility | ||||||||
Debt Obligations | ||||||||
Debt Carrying Value | 1,268,000 | |||||||
Collateral Carrying Value | $ 1,487,000 | |||||||
Weighted Average Note Rate (as a percent) | 3.00% | |||||||
Maximum borrowing capacity | $ 1,300,000 | $ 1,300,000 |
Debt Obligations, Collateralize
Debt Obligations, Collateralized Loan Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($)itemtranche | Mar. 31, 2021USD ($)trancheitem | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Obligations | ||||||
Debt, Carrying Value | $ 3,484,088 | $ 3,484,088 | $ 2,517,309 | |||
Weighted average note rate (as a percent) | 2.32% | 2.32% | ||||
Payoffs and paydowns of collateralized loan obligations | $ 356,150 | $ 282,874 | ||||
CLOs | ||||||
Debt Obligations | ||||||
Debt, Face Value | $ 3,506,080 | 3,506,080 | 2,532,343 | |||
Debt, Carrying Value | $ 3,484,088 | $ 3,484,088 | $ 2,517,309 | |||
Weighted average note rate (as a percent) | 1.52% | 1.52% | 1.60% | |||
Restricted cash related to interest payments, delayed funding and expenses | $ 38,100 | $ 38,100 | $ 49,500 | |||
Collateral Loans, Unpaid Principal | 4,004,173 | 4,004,173 | 2,932,791 | |||
Collateral Loans, Carrying Value | 4,004,173 | 4,004,173 | 2,932,791 | |||
Cash, Restricted Cash | 178,060 | 178,060 | 138,683 | |||
Deferred financing fees | $ 22,000 | $ 22,000 | $ 15,000 | |||
Weighted average note rate including certain fees and costs (as a percent) | 1.80% | 1.80% | 1.93% | |||
CLO XV | ||||||
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 | $ 747,800 | $ 747,800 | ||||
Debt, Face Value | 674,412 | 674,412 | ||||
Debt, Carrying Value | $ 668,823 | $ 668,823 | ||||
Weighted average note rate (as a percent) | 1.42% | 1.42% | ||||
Collateral Loans, Unpaid Principal | $ 674,753 | $ 674,753 | ||||
Collateral Loans, Carrying Value | 674,753 | 674,753 | ||||
Cash, Restricted Cash | 128,015 | $ 128,015 | ||||
Replacement period | 2 years 6 months | |||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 162,000 | |||||
Maximum period to acquire additional loan obligations | 180 days | |||||
Notional amount of residual interest retained | $ 140,600 | $ 140,600 | ||||
Value of portfolio loans as collateral | 653,000 | 653,000 | ||||
Face value of loan obligations will be owned by the issuer | $ 815,000 | $ 815,000 | ||||
Leverage (as a percent) | 83.00% | 83.00% | ||||
CLO XV | One-month LIBOR | ||||||
Debt Obligations | ||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.37% | 1.37% | ||||
CLO XV | Investment grade | ||||||
Debt Obligations | ||||||
Debt, Face Value | $ 674,400 | $ 674,400 | ||||
CLO XV | Below investment grade | ||||||
Debt Obligations | ||||||
Debt, Carrying Value | 73,400 | 73,400 | ||||
Notional amount of residual interest retained | 73,400 | 73,400 | ||||
CLO XIV | ||||||
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 | $ 724,200 | $ 724,200 | ||||
Debt, Face Value | 655,475 | 655,475 | ||||
Debt, Carrying Value | $ 650,116 | $ 650,116 | ||||
Weighted average note rate (as a percent) | 1.45% | 1.45% | ||||
Collateral Loans, Unpaid Principal | $ 766,872 | $ 766,872 | ||||
Collateral Loans, Carrying Value | 766,872 | 766,872 | ||||
Replacement period | 2 years 6 months | |||||
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations | $ 149,800 | |||||
Maximum period to acquire additional loan obligations | 180 days | |||||
Notional amount of residual interest retained | $ 129,500 | $ 129,500 | ||||
Value of portfolio loans as collateral | 635,200 | 635,200 | ||||
Face value of loan obligations will be owned by the issuer | $ 785,000 | $ 785,000 | ||||
Leverage (as a percent) | 84.00% | 84.00% | ||||
CLO XIV | One-month LIBOR | ||||||
Debt Obligations | ||||||
Weighted average note rate including certain fees and costs (as a percent) | 1.33% | 1.33% | ||||
CLO XIV | Investment grade | ||||||
Debt Obligations | ||||||
Debt, Face Value | $ 655,500 | $ 655,500 | ||||
CLO XIV | Below investment grade | ||||||
Debt Obligations | ||||||
Debt, Carrying Value | 68,700 | 68,700 | ||||
Notional amount of residual interest retained | $ 68,700 | 68,700 | ||||
CLO XIII | ||||||
Debt Obligations | ||||||
Debt, Face Value | 668,000 | 668,000 | $ 668,000 | |||
Debt, Carrying Value | $ 664,396 | $ 664,396 | $ 663,804 | |||
Weighted average note rate (as a percent) | 1.54% | 1.54% | 1.58% | |||
Collateral Loans, Unpaid Principal | $ 770,086 | $ 770,086 | $ 768,664 | |||
Collateral Loans, Carrying Value | 770,086 | 770,086 | 768,664 | |||
Cash, Restricted Cash | 17,749 | 17,749 | 43 | |||
CLO XII | ||||||
Debt Obligations | ||||||
Debt, Face Value | 534,193 | 534,193 | 534,193 | |||
Debt, Carrying Value | $ 531,295 | $ 531,295 | $ 530,673 | |||
Weighted average note rate (as a percent) | 1.62% | 1.62% | 1.66% | |||
Collateral Loans, Unpaid Principal | $ 614,751 | $ 614,751 | $ 628,935 | |||
Collateral Loans, Carrying Value | 614,751 | 614,751 | 628,935 | |||
Cash, Restricted Cash | 15,412 | 15,412 | 2,005 | |||
CLO XI | ||||||
Debt Obligations | ||||||
Debt, Face Value | 533,000 | 533,000 | 533,000 | |||
Debt, Carrying Value | $ 530,470 | $ 530,470 | $ 529,859 | |||
Weighted average note rate (as a percent) | 1.56% | 1.56% | 1.61% | |||
Collateral Loans, Unpaid Principal | $ 643,450 | $ 643,450 | $ 555,157 | |||
Collateral Loans, Carrying Value | 643,450 | 643,450 | 555,157 | |||
Cash, Restricted Cash | 884 | 884 | 92,395 | |||
CLO X | ||||||
Debt Obligations | ||||||
Debt, Face Value | 441,000 | 441,000 | 441,000 | |||
Debt, Carrying Value | $ 438,988 | $ 438,988 | $ 438,442 | |||
Weighted average note rate (as a percent) | 1.57% | 1.57% | 1.61% | |||
Collateral Loans, Unpaid Principal | $ 534,261 | $ 534,261 | $ 522,132 | |||
Collateral Loans, Carrying Value | 534,261 | 534,261 | 522,132 | |||
Cash, Restricted Cash | $ 16,000 | $ 16,000 | 25,537 | |||
CLO IX | ||||||
Debt Obligations | ||||||
Debt, Face Value | 356,150 | |||||
Debt, Carrying Value | $ 354,531 | |||||
Weighted average note rate (as a percent) | 1.53% | |||||
Collateral Loans, Unpaid Principal | $ 457,903 | |||||
Collateral Loans, Carrying Value | 457,903 | |||||
Cash, Restricted Cash | $ 18,703 | |||||
Payoffs and paydowns of collateralized loan obligations | 356,200 | |||||
Deferred fees expensed as interest expense | $ 1,400 |
Debt Obligations, Senior Unsecu
Debt Obligations, Senior Unsecured Notes, Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | |
Debt Obligations | |||
Wtd. Avg Rate | 2.32% | ||
Senior Unsecured Notes | |||
Debt Obligations | |||
UPB | $ 845,750 | $ 670,750 | |
Carrying value | $ 836,074 | $ 662,843 | |
Wtd. Avg Rate | 5.23% | 5.29% | |
Deferred financing fees | $ 9,700 | $ 7,900 | |
Weighted average note rate including certain fees and costs (as a percent) | 5.56% | 5.65% | |
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% Convertible Notes | |||
Debt Obligations | |||
UPB | $ 70,750 | $ 70,750 | |
Carrying value | $ 69,997 | $ 69,793 | |
Wtd. Avg Rate | 8.00% | 8.00% | |
Interest rate (as a percent) | 8.00% | 8.00% | |
4.50% Convertible Notes | |||
Debt Obligations | |||
UPB | $ 275,000 | $ 275,000 | |
Carrying value | $ 272,234 | $ 271,994 | |
Wtd. Avg Rate | 4.50% | 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 | $ 108,842 | $ 108,668 | |
Wtd. Avg Rate | 4.75% | 4.75% | |
Interest rate (as a percent) | 4.75% | 4.75% | |
5.75% Convertible Notes | |||
Debt Obligations | |||
UPB | $ 90,000 | $ 90,000 | |
Carrying value | $ 88,942 | $ 88,751 | |
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 | $ 123,929 | $ 123,637 | |
Wtd. Avg Rate | 5.63% | 5.63% | |
Interest rate (as a percent) | 5.625% | 5.625% | |
5.00% senior unsecured notes | |||
Debt Obligations | |||
UPB | $ 175,000 | $ 175,000 | |
Carrying value | $ 172,130 | ||
Wtd. Avg Rate | 5.00% | ||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% |
Debt Obligations, Convertible S
Debt Obligations, Convertible Senior Unsecured Notes (Details) | Jul. 01, 2021USD ($)shares | Jul. 20, 2018 | Apr. 30, 2021USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)$ / shares | Mar. 31, 2021 | Jul. 03, 2018 |
Debt Obligations | |||||||||||
Cash paid for the exchange of convertible notes | $ 22,145,000 | ||||||||||
Loss on extinguishment of debt | $ (1,592,000) | $ (1,370,000) | (3,546,000) | ||||||||
Total | $ 6,805,878,000 | 6,805,878,000 | |||||||||
Convertible Senior Unsecured Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | 278,300,000 | $ 278,300,000 | $ 278,300,000 | ||||||||
Proceeds received, net of estimated issuance costs | $ 34,000,000 | ||||||||||
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed | 100.00% | ||||||||||
Maturity period (in years) | 1 year 3 months 7 days | 1 year 9 months 7 days | |||||||||
Unamortized Debt Discount | 4,031,000 | $ 4,031,000 | $ 5,636,000 | ||||||||
Unamortized Deferred Financing Fees | 3,352,000 | 3,352,000 | 4,691,000 | ||||||||
Total | 270,917,000 | 270,917,000 | 267,973,000 | ||||||||
Net Carrying Value, Equity Component | 9,962,000 | $ 9,962,000 | |||||||||
Interest expense | 4,800,000 | 9,600,000 | 10,000,000 | ||||||||
Interest expense related to cash coupon | 3,300,000 | 6,600,000 | 6,700,000 | ||||||||
Debt discount | 800,000 | 1,600,000 | 1,700,000 | ||||||||
Deferred fees expensed as interest expense | 700,000 | 1,400,000 | 1,600,000 | ||||||||
Cost of the notes (as a percent) | 6.75% | 6.75% | |||||||||
8.00% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 70,750,000 | $ 70,750,000 | $ 70,750,000 | ||||||||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | ||||||||
4.50% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | ||||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | ||||||||
5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | ||||||||
Cash paid for the exchange of convertible notes | $ 14,300,000 | $ 233,100,000 | $ 228,700,000 | ||||||||
Common stock exchanged (in shares) | shares | 386,459 | 4,478,315 | |||||||||
4.75% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 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 | 56.5332 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 17.69 | $ 17.69 | |||||||||
4.75% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 1,000 | ||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 56.1695 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 17.80 | ||||||||||
5.75% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 90,000,000 | $ 90,000,000 | $ 90,000,000 | ||||||||
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% | ||||||||
5.00% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Proceeds from issued debt | $ 172,300,000 | ||||||||||
Junior subordinated notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 154,336,000 | $ 154,336,000 | $ 154,336,000 | ||||||||
Deferred fees expensed as interest expense | 1,800,000 | $ 1,800,000 | |||||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | 500,000 | 500,000 | |||||||||
Issued on July 3, 2018 | 5.25% Convertible Notes | First Offering | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 1,000 | $ 1,000 | |||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 91.9605 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 10.87 | $ 10.87 | |||||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | |||||||||||
Debt Obligations | |||||||||||
Junior subordinated notes | $ 13,800,000 | $ 13,800,000 | |||||||||
Issued on July 20, 2018 | 5.25% Convertible Notes | Second Offering | |||||||||||
Debt Obligations | |||||||||||
Conversion rate of the notes to common stock, per $1,000 principal amount of notes | 82.2763 | ||||||||||
Conversion price per share of common stock | $ / shares | $ 12.15 | $ 12.15 |
Debt Obligations, Junior Subord
Debt Obligations, Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Obligations | ||
Debt carrying value | $ 142,013 | $ 141,656 |
Weighted average note rate (as a percent) | 2.32% | |
Junior subordinated notes | ||
Debt Obligations | ||
Debt carrying value | $ 142,000 | 141,700 |
Deferred amount Due at maturity | 10,500 | 10,800 |
Deferred fees expensed as interest expense | $ 1,800 | $ 1,800 |
Weighted average note rate (as a percent) | 2.96% | 3.06% |
Weighted average note rate including certain fees and costs (as a percent) | 3.04% | 3.15% |
Debt Obligations, Debt Covenant
Debt Obligations, Debt Covenants (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jun. 30, 2021 | |
CLO X | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 126.98% | 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) | 449.62% | |||||
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% | 121.95% |
Limit overcollateralization ratio (as a percent) | 120.95% | |||||
Current interest coverage ratio (as a percent) | 370.22% | |||||
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% | 118.87% | 118.87% |
Limit overcollateralization ratio (as a percent) | 117.87% | |||||
Current interest coverage ratio (as a percent) | 355.36% | |||||
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% | 119.76% | 119.76% | 119.76% |
Limit overcollateralization ratio (as a percent) | 118.76% | |||||
Current interest coverage ratio (as a percent) | 389.99% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO XIV | ||||||
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) | 434.76% | |||||
Limit interest coverage ratio (as a percent) | 120.00% | |||||
CLO XV | ||||||
Debt Covenants | ||||||
Current overcollateralization ratio (as a percent) | 120.85% | 120.85% | ||||
Limit overcollateralization ratio (as a percent) | 119.85% | |||||
Current interest coverage ratio (as a percent) | 240.42% | |||||
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Roll forward of loss contingency accrual | |||||
Provisions for loss sharing | $ 549 | $ 2,395 | $ 2,201 | $ 23,932 | |
Guarantee obligations | 34,500 | 32,800 | 34,500 | 32,800 | |
Fannie Mae | |||||
Roll forward of loss contingency accrual | |||||
Allowance for loss sharing obligations | 31,200 | $ 31,200 | $ 30,300 | ||
Loss-sharing obligations (as a percent) | 0.16% | 0.17% | |||
Loss-Sharing Obligation | |||||
Roll forward of loss contingency accrual | |||||
Outstanding advances under the Fannie Mae DUS program | 500 | $ 500 | $ 100 | ||
Loss-Sharing Obligation | Fannie Mae | |||||
Roll forward of loss contingency accrual | |||||
Beginning balance of the period | 65,893 | 70,752 | 64,303 | 34,648 | 34,648 |
Provisions for loss sharing | 716 | 2,673 | 2,464 | 24,569 | |
Provisions reversal for loan repayments | (167) | (277) | (263) | (636) | |
Recoveries (charge-offs) , net | (797) | 72 | (859) | 233 | |
Ending balance of the period | 65,645 | $ 73,220 | 65,645 | 73,220 | 64,303 |
Maximum quantifiable liability | $ 3,610,000 | $ 3,610,000 | 3,410,000 | ||
Loss-Sharing Obligation | Fannie Mae | Impact of adopting CECL | |||||
Roll forward of loss contingency accrual | |||||
Beginning balance of the period | $ 14,406 | $ 14,406 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Agency Business (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)item | |
Derivative Financial Instruments | |||||
Notional Value, classified in Other Assets | $ 308,421 | $ 308,421 | $ 865,975 | ||
Notional Value, classified in Other Liabilities | 36,198 | 36,198 | 319,142 | ||
Net (losses) gains from changes in the fair value of derivatives | (9,900) | $ 4,100 | 1,200 | $ 4,200 | |
(Loss) gain on derivative instruments | (2,607) | (7,368) | (5,828) | (58,099) | |
Other Income | |||||
Derivative Financial Instruments | |||||
(Loss) gain on derivative instruments | 26,300 | 32,400 | $ 63,200 | 54,400 | |
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 | 9,400 | 11,200 | $ (200) | 57,300 | |
Unrealized gain on derivatives | 3,000 | 8,200 | 1,600 | ||
Swap Futures | Structured Business | Other Income | |||||
Derivative Financial Instruments | |||||
Realized gain (loss) on derivatives | (6,500) | 2,800 | |||
Unrealized gain on derivatives | $ 100 | (400) | $ 500 | ||
Non-Qualifying | Agency Business | |||||
Derivative Financial Instruments | |||||
Notional Value, classified in Other Assets | 564,219 | 564,219 | 1,230,417 | ||
Fair Value, classified in Other Assets | 2,387 | 2,387 | 3,892 | ||
Fair Value, classified in Other Liabilities | $ (393) | $ (393) | $ (1,221) | ||
Non-Qualifying | Rate lock commitments | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 5 | 5 | 7 | ||
Notional Value, classified in Other Assets | $ 16,550 | $ 16,550 | $ 136,354 | ||
Fair Value, classified in Other Assets | 124 | 124 | 1,967 | ||
Fair Value, classified in Other Liabilities | $ (127) | $ (127) | $ (231) | ||
Non-Qualifying | Forward Sale Commitments | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 43 | 43 | 114 | ||
Notional Value, classified in Other Assets | $ 328,069 | $ 328,069 | $ 1,048,763 | ||
Fair Value, classified in Other Assets | 2,263 | 2,263 | 1,925 | ||
Fair Value, classified in Other Liabilities | $ (266) | $ (266) | $ (990) | ||
Non-Qualifying | Swap Futures | Agency Business | |||||
Derivative Financial Instruments | |||||
Count | item | 2,196 | 2,196 | 453 | ||
Notional Value, classified in Other Assets | $ 219,600 | $ 219,600 | $ 45,300 |
Fair Value, Carrying Value and
Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financial assets: | ||
Loans and investments, net - Principal/Notional Amount | $ 7,385,929 | $ 5,475,082 |
Loans and investments, net | 7,213,915 | 5,285,868 |
Loans held-for-sale, net - Principal/Notional Amount | 448,940 | 968,595 |
Loans held-for-sale, net | 448,940 | 968,595 |
Securities, held-to-maturity, net - Principal/Notional Amount | 171,001 | 140,124 |
Securities held-to-maturity, net | 114,696 | 95,524 |
Derivative financial instruments - Principal/Notional Amount | 308,421 | 865,975 |
Financial liabilities: | ||
Credit and repurchase facilities, Principal/Notional Amount | 2,021,412 | 2,238,722 |
Credit and repurchase facilities, Carrying value | 2,015,188 | 2,234,883 |
Collateralized loan obligations | 3,484,088 | 2,517,309 |
Senior unsecured notes | 836,074 | 662,843 |
Convertible senior unsecured notes, net | 270,917 | 267,973 |
Junior subordinated notes | 142,013 | 141,656 |
Derivative financial instruments - Principal/Notional Amount | $ 36,198 | 319,142 |
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 | $ 7,213,915 | 5,285,868 |
Loans held-for-sale, net | 457,647 | 986,919 |
Capitalized mortgage servicing rights, net | 418,653 | 379,974 |
Securities held-to-maturity, net | 114,696 | 95,524 |
Derivative financial instruments | 2,387 | 3,892 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 2,015,188 | 2,234,883 |
Collateralized loan obligations | 3,484,088 | |
Senior unsecured notes | 836,074 | |
Convertible senior unsecured notes, net | 270,917 | |
Junior subordinated notes | 142,013 | |
Derivative financial instruments | 393 | 1,221 |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 7,421,181 | 5,428,141 |
Loans held-for-sale, net | 469,195 | 1,007,294 |
Capitalized mortgage servicing rights, net | 471,275 | 415,495 |
Securities held-to-maturity, net | 125,003 | 94,128 |
Derivative financial instruments | 2,387 | 3,892 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 2,016,291 | 2,235,668 |
Collateralized loan obligations | 3,506,460 | |
Senior unsecured notes | 853,814 | |
Convertible senior unsecured notes, net | 304,689 | |
Junior subordinated notes | 100,650 | |
Derivative financial instruments | 393 | 1,221 |
CLOs | ||
Financial liabilities: | ||
Collateralized loan obligations | 3,484,088 | 2,517,309 |
Debt instrument - Principal/Notional Amount | 3,506,080 | 2,532,343 |
Collateralized Debt Obligations | Carrying Value | ||
Financial liabilities: | ||
Collateralized loan obligations | 3,484,088 | 2,517,309 |
Collateralized Debt Obligations | Fair Value | ||
Financial liabilities: | ||
Collateralized loan obligations | 3,506,460 | 2,495,195 |
Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 845,750 | 670,750 |
Senior Unsecured Notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 836,074 | 662,843 |
Senior Unsecured Notes | Fair Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 853,814 | 670,117 |
Convertible Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 278,300 | 278,300 |
Convertible Senior Unsecured Notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 270,917 | 267,973 |
Convertible Senior Unsecured Notes | Fair Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 304,689 | 280,636 |
Junior subordinated notes | ||
Financial liabilities: | ||
Junior subordinated notes | 142,000 | 141,700 |
Debt instrument - Principal/Notional Amount | 154,336 | 154,336 |
Junior subordinated notes | Carrying Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | 142,013 | 141,656 |
Junior subordinated notes | Fair Value | ||
Financial liabilities: | ||
Debt instrument - Principal/Notional Amount | $ 100,650 | $ 99,594 |
Fair Value, Measurement on Recu
Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands, shares in Millions | Jun. 30, 2021USD ($)itemshares | Dec. 31, 2020USD ($) |
Financial assets: | ||
Impaired loans, net | $ 165,666 | $ 254,938 |
Allowance for credit losses on impaired loans | $ 98,731 | 106,265 |
Number of impaired loans | item | 9 | |
Aggregate carrying value, before reserves | shares | 165.7 | |
Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | $ 2,387 | 3,892 |
Financial liabilities: | ||
Derivative financial instruments | 393 | 1,221 |
Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 2,387 | 3,892 |
Financial liabilities: | ||
Derivative financial instruments | 393 | $ 1,221 |
Recurring basis | Carrying Value | ||
Financial assets: | ||
Derivative financial instruments | 2,387 | |
Financial liabilities: | ||
Derivative financial instruments | 393 | |
Recurring basis | Fair Value | ||
Financial assets: | ||
Derivative financial instruments | 2,387 | |
Financial liabilities: | ||
Derivative financial instruments | 393 | |
Nonrecurring basis | Carrying Value | ||
Financial assets: | ||
Impaired loans, net | 66,935 | |
Nonrecurring basis | Fair Value | ||
Financial assets: | ||
Impaired loans, net | 66,935 | |
Level 2 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 2,263 | |
Financial liabilities: | ||
Derivative financial instruments | 393 | |
Level 3 | Recurring basis | ||
Financial assets: | ||
Derivative financial instruments | 124 | |
Level 3 | Nonrecurring basis | ||
Financial assets: | ||
Impaired loans, net | $ 66,935 |
Fair Value, Level 3 Inputs (Det
Fair Value, Level 3 Inputs (Details) - Level 3 $ in Thousands | Jun. 30, 2021USD ($)item |
Land | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, fair value | $ | $ 49,960 |
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 | $ | $ 15,511 |
Retail | Discount rate | |
Quantitative information about Level 3 fair value measurements | |
Impaired loans, measurement input | 0.1015 |
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 | 0.0168 |
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 | $ | $ 636 |
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 | $ | $ 124 |
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 | 0.0844 |
Fair Value, Level 3 Derivative
Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative assets | ||||
Beginning balance | $ 1,439 | $ 2,069 | $ 1,967 | $ 1,066 |
Settlements | (23,045) | (33,936) | (58,074) | (54,867) |
Realized gains recorded in earnings | 21,606 | 31,867 | 56,107 | 53,801 |
Unrealized gains recorded in earnings | 124 | 549 | 124 | 549 |
Ending balance | $ 124 | $ 549 | $ 124 | $ 549 |
Fair Value, Components of fair
Fair Value, Components of fair value and other relevant information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value of Servicing Rights | $ 9,793 |
Total Fair Value Adjustment | 9,793 |
Rate lock commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 16,550 |
Fair Value of Servicing Rights | 124 |
Interest Rate Movement Effect | 127 |
Total Fair Value Adjustment | 251 |
Forward Sale Commitments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 328,069 |
Interest Rate Movement Effect | (127) |
Total Fair Value Adjustment | (127) |
Loans held-for-sale, net | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Notional/Principal Amount | 448,940 |
Fair Value of Servicing Rights | 9,669 |
Total Fair Value Adjustment | $ 9,669 |
Fair Value, Financial Assets an
Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Loans and investments, net | $ 7,213,915 | $ 5,285,868 |
Loans held-for-sale, net | 448,940 | 968,595 |
Securities held-to-maturity, net | 114,696 | 95,524 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 2,015,188 | 2,234,883 |
Collateralized loan obligations | 3,484,088 | 2,517,309 |
Senior unsecured notes | 836,074 | 662,843 |
Convertible senior unsecured notes, net | 270,917 | 267,973 |
Junior subordinated notes | 142,013 | 141,656 |
Level 1 | ||
Financial liabilities: | ||
Senior unsecured notes | 853,814 | |
Level 2 | ||
Financial assets: | ||
Loans held-for-sale, net | 459,526 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 391,790 | |
Convertible senior unsecured notes, net | 304,689 | |
Level 3 | ||
Financial assets: | ||
Loans and investments, net | 7,421,181 | |
Loans held-for-sale, net | 9,669 | |
Capitalized mortgage servicing rights, net | 471,275 | |
Securities held-to-maturity, net | 125,003 | |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 1,624,501 | |
Collateralized loan obligations | 3,506,460 | |
Junior subordinated notes | 100,650 | |
Carrying Value | ||
Financial assets: | ||
Loans and investments, net | 7,213,915 | 5,285,868 |
Loans held-for-sale, net | 457,647 | 986,919 |
Capitalized mortgage servicing rights, net | 418,653 | |
Securities held-to-maturity, net | 114,696 | 95,524 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 2,015,188 | 2,234,883 |
Collateralized loan obligations | 3,484,088 | |
Senior unsecured notes | 836,074 | |
Convertible senior unsecured notes, net | 270,917 | |
Junior subordinated notes | 142,013 | |
Fair Value | ||
Financial assets: | ||
Loans and investments, net | 7,421,181 | 5,428,141 |
Loans held-for-sale, net | 469,195 | 1,007,294 |
Capitalized mortgage servicing rights, net | 471,275 | |
Securities held-to-maturity, net | 125,003 | 94,128 |
Financial liabilities: | ||
Credit and repurchase facilities, Carrying value | 2,016,291 | $ 2,235,668 |
Collateralized loan obligations | 3,506,460 | |
Senior unsecured notes | 853,814 | |
Convertible senior unsecured notes, net | 304,689 | |
Junior subordinated notes | $ 100,650 |
Commitments and Contingencies,
Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Agency Business Commitments | ||||||
Cash collateral | $ 249,090 | $ 94,847 | $ 249,090 | $ 94,847 | $ 197,470 | $ 210,875 |
Debt Obligations | ||||||
2021 (six months ending December 31, 2021) | 859,768 | 859,768 | ||||
2022 | 2,496,580 | 2,496,580 | ||||
2023 | 1,371,081 | 1,371,081 | ||||
2024 | 1,017,797 | 1,017,797 | ||||
2025 | 256,723 | 256,723 | ||||
2026 | 340,026 | 340,026 | ||||
Thereafter | 463,903 | 463,903 | ||||
Total | 6,805,878 | 6,805,878 | ||||
Minimum Annual Operating Lease Payments | ||||||
2021 (six months ending December 31, 2021) | 3,408 | 3,408 | ||||
2022 | 8,257 | 8,257 | ||||
2023 | 8,031 | 8,031 | ||||
2024 | 7,926 | 7,926 | ||||
2025 | 7,978 | 7,978 | ||||
2026 | 8,282 | 8,282 | ||||
Thereafter | 26,098 | 26,098 | ||||
Total | 69,980 | 69,980 | ||||
Total | ||||||
2021 | 863,176 | 863,176 | ||||
2022 | 2,504,837 | 2,504,837 | ||||
2023 | 1,379,112 | 1,379,112 | ||||
2024 | 1,025,723 | 1,025,723 | ||||
2025 | 264,701 | 264,701 | ||||
2026 | 348,308 | 348,308 | ||||
Thereafter | 490,001 | 490,001 | ||||
Total | 6,875,858 | 6,875,858 | ||||
Operating lease expense | 2,400 | $ 1,500 | 4,700 | $ 3,100 | ||
Unfunded CLO Commitments | ||||||
Unfunded commitments related to structured loans and investments | 524,700 | 524,700 | $ 353,800 | |||
Fannie Mae | ||||||
Agency Business Commitments | ||||||
Minimum liquid assets to be maintained to meet operational liquidity requirements | 19,100 | $ 19,100 | ||||
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 | 14,600 | 14,600 | ||||
Reserve required to fund additional restricted liquidity over the next 48 months | 47,700 | $ 47,700 | ||||
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 ($)lawsuitdefendant | Jun. 30, 2011defendantlawsuit |
Arbor ESH II, LLC | ||||
Litigation | ||||
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. | $ | $ 115 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 3 | |||
Number of lawsuits filed in United States Bankruptcy Court | lawsuit | 2 | |||
Number of defendants | 73 | |||
Number of defendants who are corporate and partnership entities | 55 | |||
Number of defendants named in a legal action who are individuals | 18 | |||
Number of counts dismissed | lawsuit | 9 | |||
Number of counts dismissed against defendant entities | 4 | |||
Total LIBOR Floor Certificate transfers | $ | $ 74 | |||
Total possible liability against directors | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Fiduciary Duty Claims | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 2 | |||
Number of defendants | 2 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits | ||||
Litigation | ||||
Number of lawsuits consolidated | lawsuit | 1 | |||
Number of defendants who are corporate and partnership entities | 16 | |||
Number of defendants named in a legal action who are individuals | 10 | |||
Number of defendants removed due to consolidation of lawsuits | 47 | |||
Number of defendants related to the entity | 0 | |||
Number of defendants remaining due to consolidation of lawsuits | 26 | |||
Number of lawsuits before amendment | lawsuit | 100 | |||
Number of lawsuits after amendment | lawsuit | 17 | |||
Aggregate amount which the Trust would be seeking from the affiliates of the entity | $ | $ 139 | |||
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Arbor ESH II, LLC | ||||
Litigation | ||||
Number of lawsuits or complaints filed | lawsuit | 1 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2021USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Assets: | |||||||
Restricted cash | $ 249,090 | $ 197,470 | $ 94,847 | $ 210,875 | |||
Loans and investments, net | 7,213,915 | 5,285,868 | |||||
Other assets | 190,698 | 183,529 | |||||
Total assets | 9,060,800 | 7,660,986 | |||||
Liabilities: | |||||||
Collateralized loan obligations | 3,484,088 | 2,517,309 | |||||
Other liabilities | 215,540 | 197,644 | |||||
Total liabilities | 7,104,033 | 6,178,301 | |||||
Loan loss reserves related to VIEs | 138,447 | $ 147,300 | 148,329 | $ 152,811 | $ 142,252 | $ 152,811 | |
Consolidated variable interest entities | |||||||
Assets: | |||||||
Total assets | 4,250,848 | 3,134,447 | |||||
Liabilities: | |||||||
Total liabilities | $ 3,488,040 | 2,520,064 | |||||
Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item | 31 | ||||||
Carrying amount of loans and investments before reserves related to VIEs | $ 629,166 | ||||||
Exposure to real estate debt | 4,300,000 | ||||||
CLOs | Consolidated variable interest entities | |||||||
Assets: | |||||||
Restricted cash | 233,473 | 188,226 | |||||
Loans and investments, net | 3,990,518 | 2,923,634 | |||||
Other assets | 26,857 | 22,587 | |||||
Total assets | 4,250,848 | 3,134,447 | |||||
Liabilities: | |||||||
Collateralized loan obligations | 3,484,088 | 2,517,309 | |||||
Other liabilities | 3,952 | 2,755 | |||||
Total liabilities | 3,488,040 | $ 2,520,064 | |||||
Loans | Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Carrying amount of loans and investments before reserves related to VIEs | 495,347 | ||||||
Carrying amount of loans and investments related to VIE's | 130,000 | ||||||
Loan loss reserves related to VIEs | 79,400 | ||||||
B Piece bonds | Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Carrying amount of loans and investments before reserves related to VIEs | 53,643 | ||||||
APL certificates | Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Carrying amount of loans and investments before reserves related to VIEs | 63,168 | ||||||
Equity investments | Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Carrying amount of loans and investments before reserves related to VIEs | 16,216 | ||||||
Agency interest only strips | Unconsolidated VIEs | |||||||
Liabilities: | |||||||
Carrying amount of loans and investments before reserves related to VIEs | $ 792 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | Jul. 30, 2021$ / shares | Jul. 02, 2021$ / shares | May 05, 2021$ / shares | Apr. 30, 2021$ / shares | Feb. 17, 2021$ / shares | Feb. 01, 2021$ / shares | Jun. 30, 2021USD ($)Vote$ / sharesshares | Apr. 30, 2021USD ($)shares | Mar. 31, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($)Vote$ / sharesshares | Mar. 31, 2021$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)itemVote$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2019 | Jul. 20, 2018 | Jul. 03, 2018 |
Common stock | ||||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 328,014 | $ 38,008 | ||||||||||||||||||
Repurchase of common stock | $ 23,460 | $ 1,470 | 23,460 | 12,761 | ||||||||||||||||
Redemption of operating partnership units | $ 21,110 | $ 1,600 | ||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Distributions | ||||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | 0.34 | $ 0.30 | $ 0.67 | $ 0.60 | ||||||||||||||||
Preferred Stock | ||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 222,463 | |||||||||||||||||||
Chief Executive Officer | 2021 Annual incentive agreement | ||||||||||||||||||||
Subsequent event | ||||||||||||||||||||
Annual base salary | $ 1,200 | |||||||||||||||||||
Annual cash payment | 800 | |||||||||||||||||||
Annual performance cash bonus at target performance | 2,900 | |||||||||||||||||||
Annual performance cash bonus at threshold performance | 1,500 | |||||||||||||||||||
Annual performance cash bonus at maximum performance. | 4,400 | |||||||||||||||||||
Additional annual performance cash bonus in the event of extraordinary performance | 700 | |||||||||||||||||||
Restricted common stock | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Shares withheld for taxes | shares | 140,744 | |||||||||||||||||||
Restricted common stock | Board of Directors | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Grants during the period (in shares) | shares | 27,864 | |||||||||||||||||||
Restricted common stock | Employees | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Grants during the period (in shares) | shares | 257,726 | |||||||||||||||||||
Total grant date fair value | $ 4,100 | |||||||||||||||||||
Vesting percentage | 0.20% | 33.00% | ||||||||||||||||||
Restricted common stock | Employees | 2020 Plan | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 33.00% | |||||||||||||||||||
Restricted common stock | Employees | First anniversaries | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 0.20% | |||||||||||||||||||
Restricted common stock | Employees | First anniversaries | 2020 Plan | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 33.00% | |||||||||||||||||||
Restricted common stock | Employees | Second anniversaries | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 0.20% | |||||||||||||||||||
Restricted common stock | Employees | Second anniversaries | 2020 Plan | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 0.33% | |||||||||||||||||||
Performance-based restricted stock | Chief Executive Officer | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Restricted stock vested during period (in shares) | shares | 448,980 | |||||||||||||||||||
Number of shares issued in net settlement | shares | 229,083 | |||||||||||||||||||
Acquisition Related Grant | Chief Executive Officer | 2021 Annual incentive agreement | ||||||||||||||||||||
Subsequent event | ||||||||||||||||||||
Grant value | $ 3,000 | |||||||||||||||||||
Acquisition Related Grant | Chief Executive Officer | Third anniversaries | 2021 Annual incentive agreement | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting percentage | 100.00% | |||||||||||||||||||
Time Based Vesting Equity Award | Chief Executive Officer | 2021 Annual incentive agreement | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Grants during the period (in shares) | shares | 184,729 | |||||||||||||||||||
Total grant date fair value | $ 3,100 | |||||||||||||||||||
Vesting period (in years) | 3 years | |||||||||||||||||||
Subsequent event | ||||||||||||||||||||
Grant value | $ 3,000 | |||||||||||||||||||
Performance Based TSR Equity Award | Chief Executive Officer | 2021 Annual incentive agreement | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
Vesting period (in years) | 5 years | |||||||||||||||||||
Subsequent event | ||||||||||||||||||||
Grant value | $ 12,000 | |||||||||||||||||||
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 | ||||||||||||||||||||
Issued price per share (in dollars per share) | $ / shares | $ 18.46 | $ 15.48 | $ 18.46 | $ 15.48 | $ 18.46 | |||||||||||||||
Number of common stock sold (in shares) | shares | 9,282,479 | 1,958,008 | 19,422,879 | 3,308,008 | ||||||||||||||||
Proceeds from issuance of shares under public offering | $ 12,400 | |||||||||||||||||||
Number of shares purchased | shares | 600,000 | 1,399,999 | 376,000 | 1,399,999 | 1,625,777 | |||||||||||||||
Repurchase of common stock | $ 11,100 | $ 14 | $ 3 | $ 14 | $ 16 | |||||||||||||||
Distributions | ||||||||||||||||||||
Cash dividend declared (in dollars per share) | $ / shares | $ 0.35 | $ 0.34 | $ 0.33 | |||||||||||||||||
Common Stock | Chief Executive Officer | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Number of shares purchased | shares | 800,000 | |||||||||||||||||||
Common Stock | Board of Directors | ||||||||||||||||||||
Deferred Compensation | ||||||||||||||||||||
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 | ||||||||||||||||||
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 | ||||||||||||||||||
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 | ||||||||||||||||||
Preferred Stock | 6.375% Series D preferred stock | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Interest rate (as a percent) | 6.375% | |||||||||||||||||||
Distributions | ||||||||||||||||||||
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares | $ 0.256771 | |||||||||||||||||||
Preferred Stock | ||||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.375% | |||||||||||||||||||
Preferred stock, redemption amount | $ 93,300 | 93,300 | 93,300 | |||||||||||||||||
Total Arbor Realty Trust, Inc. Stockholders' Equity | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Repurchase of common stock | $ 23,460 | $ 1,470 | $ 23,460 | $ 12,761 | ||||||||||||||||
Operating Partnership Units | ||||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||
Conversion ratio for operating partnership units to common stock shares | 1 | |||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | ||||||||||||||||||||
Noncontrolling Interest | ||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Number of vote per share of Special Voting Preferred Shares | Vote | 1 | 1 | 1 | |||||||||||||||||
OP units outstanding (in shares) | shares | 16,352,233 | 16,352,233 | 16,352,233 | |||||||||||||||||
Voting power of outstanding stock (as a percent) | 10.30% | |||||||||||||||||||
5.25% Convertible Notes | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||||||||||||||||
Public offering | Common Stock | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Number of common stock sold (in shares) | shares | 6,000,000 | 7,000,000 | ||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 110,600 | $ 108,200 | ||||||||||||||||||
Public offering | Preferred Stock | 6.375% Series D preferred stock | ||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||
Issuance of preferred stock (in shares) | shares | 9,200,000 | |||||||||||||||||||
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 6.375% | |||||||||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | |||||||||||||||||
Proceeds from issuance of preferred stock | $ 222,600 | |||||||||||||||||||
At-The-Market | Common Stock | ||||||||||||||||||||
Common stock | ||||||||||||||||||||
Number of common stock sold (in shares) | shares | 6,422,879 | |||||||||||||||||||
Proceeds from issuance of shares under public offering | $ 109,200 | |||||||||||||||||||
Redemption of operating partnership units | $ 21,100 | |||||||||||||||||||
Number of ACM's members from whom the OP units redeemed | item | 2 |
Equity, Earnings Per Share ("EP
Equity, Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic | ||||
Net income (loss) attributable to common stockholders (1) | $ 69,126 | $ 44,091 | $ 138,606 | $ (15,219) |
Weighted average shares outstanding (in shares) | 135,262,197 | 110,745,572 | 130,276,499 | 110,768,992 |
Net (loss) income per common share (in dollars per share) | $ 0.51 | $ 0.40 | $ 1.06 | $ (0.14) |
Diluted | ||||
Net income (loss) attributable to noncontrolling interest | $ 8,717 | $ 8,110 | $ 18,459 | $ (2,824) |
Net income (loss) attributable to common stockholders and noncontrolling interest | $ 77,843 | $ 52,201 | $ 157,065 | $ (18,043) |
Weighted average shares outstanding (in shares) | 135,262,197 | 110,745,572 | 130,276,499 | 110,768,992 |
Dilutive effect of OP Units (in shares) | 17,056,229 | 20,369,265 | 17,307,037 | 20,397,026 |
Dilutive effect of restricted stock units (in shares) | 929,734 | 767,561 | 921,187 | |
Dilutive effect of convertible notes (in shares) | 368,431 | 313,307 | ||
Weighted average shares outstanding ( in shares) | 153,616,591 | 131,882,398 | 148,818,030 | 131,166,018 |
Net income (loss) per common share | $ 0.51 | $ 0.40 | $ 1.06 | $ (0.14) |
Mr. Ivan Kaufman | Performance-based restricted stock | ||||
Diluted | ||||
Vesting period (in years) | 4 years | 4 years | 4 years | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Contingency [Line Items] | ||||
Provision for (benefit) from income taxes | $ 10,959 | $ 12,077 | $ 23,451 | $ (2,293) |
Deferred tax provision (benefit) | 10,900 | 4,439 | (9,025) | |
Current tax provision | 11,000 | $ 1,200 | 19,000 | $ 6,700 |
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax provision (benefit) | $ (100) | $ 4,500 | ||
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Former manager | Support Services and Seconded Employees | ||||
Agreements and transactions with related parties | ||||
Costs for services to related party | $ 0.8 | $ 0.7 | $ 1.6 | $ 1.2 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Other Related Party (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2021USD ($)itemshares | Mar. 31, 2021USD ($) | Jan. 31, 2021 | Dec. 31, 2020USD ($) | Oct. 31, 2020USD ($) | Aug. 31, 2020USD ($) | Mar. 31, 2020USD ($)property | Sep. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2018USD ($)propertyloan | Jun. 30, 2021USD ($)itemshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)itemshares | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)loanpropertyitem | Dec. 31, 2016USD ($)propertyshares | Dec. 31, 2015USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | |
Agreements and transactions with related parties | |||||||||||||||||||||
Due to related party | $ 6,184 | $ 2,365 | $ 6,184 | $ 6,184 | |||||||||||||||||
Due from related parties | 11,084 | 12,449 | 11,084 | 11,084 | |||||||||||||||||
Entitled to annual fee | $ 300 | $ 300 | $ 300 | ||||||||||||||||||
Equity participation interest (as a percentage) | 33.00% | 33.00% | 33.00% | ||||||||||||||||||
Investment made | $ 2,814,170 | $ 1,117,004 | |||||||||||||||||||
Indirect ownership percentage | 9.20% | ||||||||||||||||||||
(Income) loss from equity affiliates | $ (4,759) | $ (20,408) | $ (27,010) | (24,401) | |||||||||||||||||
Single-Family Rental | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Investment made | 3,500 | ||||||||||||||||||||
Operating Partnership Units | Special voting preferred shares | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Number of preferred stock shares paired with each OP units | shares | 1 | ||||||||||||||||||||
Preferred equity investments | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Equity investment | $ 7,800 | 7,800 | $ 7,800 | ||||||||||||||||||
Preferred equity investments | Single-Family Rental | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Investment made | $ 4,600 | ||||||||||||||||||||
Bridge loans | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Principal amount | 35,000 | 35,000 | 35,000 | ||||||||||||||||||
Bridge loans | Single-Family Rental | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Loan committed | 1,500 | $ 32,500 | $ 30,500 | ||||||||||||||||||
Bridge loans | Preferred equity interest financing agreement | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | 300 | 600 | 700 | 1,400 | |||||||||||||||||
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 | 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 | 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 | |||||||||||||||||||||
Number of properties owned | property | 2 | ||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 50.00% | ||||||||||||||||||||
Interest income recorded | 100 | 100 | |||||||||||||||||||
Equity investment | $ 3,400 | ||||||||||||||||||||
Fixed rate of interest (as a percent) | 9.00% | ||||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | Mezzanine loans | Maturity date of March 2030 | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | 200 | 200 | |||||||||||||||||||
ACM, Certain executives and Consortium of independent outside investors | AMAC III | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Amount invested | $ 15,700 | 15,700 | 15,700 | $ 30,000 | |||||||||||||||||
Ownership interest (as a percent) | 18.00% | ||||||||||||||||||||
Interest income recorded | 300 | 700 | 600 | 1,600 | |||||||||||||||||
Loss on investment | 500 | 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 | ||||||||||||||||||||
ACM / Our "Former Manager" | Residential Mortgage Banking Company | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | 4,800 | 20,900 | 27,300 | 23,800 | |||||||||||||||||
Noncontrolling interest in equity method investment acquired (as a percent) | 50.00% | ||||||||||||||||||||
Indirect ownership percentage | 12.30% | 22.50% | |||||||||||||||||||
Acquisition purchase price | $ 9,600 | ||||||||||||||||||||
Cash distribution received | $ 5,600 | $ 18,700 | |||||||||||||||||||
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 | 2,828,629 | 2,828,629 | 2,828,629 | ||||||||||||||||||
OP units hold as part of acquisition | shares | 10,692,668 | ||||||||||||||||||||
Aggregate percentage of voting power held by related party | 8.60% | 8.60% | 8.60% | ||||||||||||||||||
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 | $ 600 | ||||||||||||||||||||
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 | ||||||||||||||||||||
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 | 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 | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Principal amount | $ 34,000 | $ 35,400 | 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) | 3.50% | ||||||||||||||||||||
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 Several Multifamily Properties [Member] | Multifamily | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | 600 | ||||||||||||||||||||
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 | 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 | 100 | 300 | 300 | |||||||||||||||||
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 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 | 300 | 700 | 700 | |||||||||||||||||
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] | 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 | 500 | $ 1,000 | 1,000 | |||||||||||||||||
Number of bridge loans originated | item | 2 | ||||||||||||||||||||
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of 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% | ||||||||||||||||||||
Chief executive officer | Minimum | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Ownership interest limit of our common stock under company charter (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||||||||||||
Mr. Ivan Kaufman | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Percentage of our Former Manager's outstanding membership interest of related party in another related party | 35.00% | 35.00% | 35.00% | ||||||||||||||||||
Board of Directors | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Number of portfolios of multifamily properties | item | 2 | 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 | Matures in October 2023 [Member] | Preferred equity interest financing agreement | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | $ 100 | $ 200 | |||||||||||||||||||
Immediate family member of chief executive officer | Matures in May 2023 [Member] | Preferred equity interest financing agreement | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Interest income recorded | 200 | 300 | |||||||||||||||||||
Immediate family member of chief executive officer | Preferred equity investments | Matures in October 2023 [Member] | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 12.00% | ||||||||||||||||||||
Immediate family member of chief executive officer | Preferred equity investments | Matures in May 2023 [Member] | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Fixed rate of interest (as a percent) | 12.00% | ||||||||||||||||||||
Immediate family member of chief executive officer | Bridge loans | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Equity participation interest (as a percentage) | 21.80% | 18.90% | |||||||||||||||||||
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 | 100 | ||||||||||||||||||||
Fixed rate of interest (as a percent) | 10.00% | ||||||||||||||||||||
Immediate family member of chief executive officer | Bridge loans | Matures in October 2023 [Member] | LIBOR | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.75% | ||||||||||||||||||||
Immediate family member of chief executive officer | Bridge loans | Matures in May 2023 [Member] | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Base spread (as a percent) | 5.50% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.75% | ||||||||||||||||||||
Immediate family member of chief executive officer | Bridge Loan Several Multifamily Properties [Member] | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Percentage of ownership interest of related party in the entity | 23.90% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 2.375% | ||||||||||||||||||||
Interest income recorded | 800 | 1,400 | |||||||||||||||||||
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% | ||||||||||||||||||||
Lexford Portfolio | Preferred equity investments | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
(Income) loss from equity affiliates | $ 200 | 200 | |||||||||||||||||||
Lexford Portfolio | Bridge loans | Maturity Date Of June 2021 [Member] | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Principal amount | $ 280,500 | ||||||||||||||||||||
Interest income recorded | 200 | ||||||||||||||||||||
Maximum exposure under guaranty | $ 609,300 | 609,300 | 609,300 | ||||||||||||||||||
Number of bridge loans originated | loan | 12 | ||||||||||||||||||||
Number of multifamily properties renovated | property | 72 | ||||||||||||||||||||
Entity controlled by our chief executive officer | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Reimbursement for flights chartered by the company's executives | 100 | $ 300 | |||||||||||||||||||
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 | ||||||||||||||||||||
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% | ||||||||||||||||||||
Real estate investment fund sponsored and managed by Chief executive officer and imediate family member of chief executive officer | Bridge loans | Maturity date of March 2024 | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Principal amount | $ 63,400 | ||||||||||||||||||||
Interest income recorded | $ 700 | $ 700 | |||||||||||||||||||
Real estate investment fund sponsored and managed by Chief executive officer and imediate family member of chief executive officer | Bridge loans | Maturity date of March 2024 | LIBOR | |||||||||||||||||||||
Agreements and transactions with related parties | |||||||||||||||||||||
Base spread (as a percent) | 3.75% | ||||||||||||||||||||
LIBOR floor (as a percentage) | 0.25% |
Segment Information - Statement
Segment Information - Statements of Income (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | |
Segment Information | ||||
Interest income | $ 105,148 | $ 83,080 | $ 196,292 | $ 171,606 |
Interest expense | 46,378 | 41,302 | 88,562 | 91,284 |
Net interest income | 58,770 | 41,778 | 107,730 | 80,322 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 40,901 | 26,366 | 69,768 | 40,671 |
Mortgage servicing rights | 26,299 | 32,417 | 63,235 | 54,351 |
Servicing revenue | 29,982 | 25,397 | 59,721 | 50,522 |
Amortization of MSRs | (14,667) | (11,891) | (28,871) | (23,713) |
Property operating income | 751 | 2,943 | ||
Loss on derivative instruments, net | (2,607) | (7,368) | (5,828) | (58,099) |
Other income, net | 1,263 | 1,049 | 1,943 | 2,351 |
Total other revenue | 81,171 | 66,721 | 159,968 | 69,026 |
Other expenses: | ||||
Employee compensation and benefits | 43,700 | 34,438 | 86,674 | 68,690 |
Selling and administrative | 11,133 | 8,606 | 21,947 | 19,658 |
Property operating expenses | 129 | 1,035 | 272 | 3,478 |
Depreciation and amortization | 1,788 | 1,961 | 3,543 | 3,908 |
Provision for loss sharing (net of recoveries) | 549 | 2,395 | 2,201 | 23,932 |
Provision for credit losses (net of recoveries) | (7,815) | 12,714 | (8,890) | 67,096 |
Total other expenses | 49,484 | 61,149 | 105,747 | 186,762 |
Income (loss) before sale of real estate, income from equity affiliates and income taxes | 90,457 | 47,350 | 161,951 | (37,414) |
Loss on extinguishment of debt | (1,592) | (1,370) | (3,546) | |
Gain on sale of real estate | 1,228 | |||
Income from equity affiliates | 4,759 | 20,408 | 27,010 | 24,401 |
(Provision for) benefit from income taxes | (10,959) | (12,077) | (23,451) | 2,293 |
Net income (loss) | 84,257 | 54,089 | 165,368 | (14,266) |
Preferred stock dividends | 6,414 | 1,888 | 8,303 | 3,777 |
Net income (loss) attributable to noncontrolling interest | 8,717 | 8,110 | 18,459 | (2,824) |
Net income (loss) attributable to common stockholders | 69,126 | 44,091 | $ 138,606 | (15,219) |
Reporting segments | item | 2 | |||
Operating segments | Structured Business | ||||
Segment Information | ||||
Interest income | 96,498 | 74,295 | $ 179,708 | 152,772 |
Interest expense | 42,748 | 36,739 | 80,972 | 80,138 |
Net interest income | 53,750 | 37,556 | 98,736 | 72,634 |
Other revenue: | ||||
Property operating income | 751 | 2,943 | ||
Loss on derivative instruments, net | (294) | (3,294) | ||
Other income, net | 1,255 | 990 | 1,935 | 2,293 |
Total other revenue | 1,255 | 1,447 | 1,935 | 1,942 |
Other expenses: | ||||
Employee compensation and benefits | 11,907 | 9,161 | 23,484 | 20,007 |
Selling and administrative | 5,248 | 3,533 | 9,761 | 7,983 |
Property operating expenses | 129 | 1,035 | 272 | 3,478 |
Depreciation and amortization | 615 | 629 | 1,197 | 1,248 |
Provision for credit losses (net of recoveries) | (8,333) | 10,558 | (9,362) | 64,448 |
Total other expenses | 9,566 | 24,916 | 25,352 | 97,164 |
Income (loss) before sale of real estate, income from equity affiliates and income taxes | 45,439 | 14,087 | 75,319 | (22,588) |
Loss on extinguishment of debt | (1,592) | (1,370) | (3,546) | |
Income from equity affiliates | 4,759 | 20,408 | 27,010 | 24,401 |
(Provision for) benefit from income taxes | (682) | (164) | (5,665) | (248) |
Net income (loss) | 49,516 | 32,739 | 95,294 | (1,981) |
Preferred stock dividends | 6,414 | 1,888 | 8,303 | 3,777 |
Net income (loss) attributable to common stockholders | 43,102 | 30,851 | 86,991 | (5,758) |
Operating segments | Agency Business | ||||
Segment Information | ||||
Interest income | 8,650 | 8,785 | 16,584 | 18,834 |
Interest expense | 3,630 | 4,563 | 7,590 | 11,146 |
Net interest income | 5,020 | 4,222 | 8,994 | 7,688 |
Other revenue: | ||||
Gain on sales, including fee-based services, net | 40,901 | 26,366 | 69,768 | 40,671 |
Mortgage servicing rights | 26,299 | 32,417 | 63,235 | 54,351 |
Servicing revenue | 29,982 | 25,397 | 59,721 | 50,522 |
Amortization of MSRs | (14,667) | (11,891) | (28,871) | (23,713) |
Loss on derivative instruments, net | (2,607) | (7,074) | (5,828) | (54,805) |
Other income, net | 8 | 59 | 8 | 58 |
Total other revenue | 79,916 | 65,274 | 158,033 | 67,084 |
Other expenses: | ||||
Employee compensation and benefits | 31,793 | 25,277 | 63,190 | 48,683 |
Selling and administrative | 5,885 | 5,073 | 12,186 | 11,675 |
Depreciation and amortization | 1,173 | 1,332 | 2,346 | 2,660 |
Provision for loss sharing (net of recoveries) | 549 | 2,395 | 2,201 | 23,932 |
Provision for credit losses (net of recoveries) | 518 | 2,156 | 472 | 2,648 |
Total other expenses | 39,918 | 36,233 | 80,395 | 89,598 |
Income (loss) before sale of real estate, income from equity affiliates and income taxes | 45,018 | 33,263 | 86,632 | (14,826) |
Gain on sale of real estate | 1,228 | |||
(Provision for) benefit from income taxes | (10,277) | (11,913) | (17,786) | 2,541 |
Net income (loss) | 34,741 | 21,350 | 70,074 | (12,285) |
Net income (loss) attributable to common stockholders | 34,741 | 21,350 | 70,074 | (12,285) |
Other / Eliminations | ||||
Other expenses: | ||||
Net income (loss) attributable to noncontrolling interest | 8,717 | 8,110 | 18,459 | (2,824) |
Net income (loss) attributable to common stockholders | $ (8,717) | $ (8,110) | $ (18,459) | $ 2,824 |
Segment Information - Balance S
Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 215,658 | $ 339,528 | $ 384,182 | $ 299,687 |
Restricted cash | 249,090 | 197,470 | $ 94,847 | $ 210,875 |
Loans and investments, net | 7,213,915 | 5,285,868 | ||
Loans held-for-sale, net | 457,647 | 986,919 | ||
Capitalized mortgage servicing rights, net | 418,653 | 379,974 | ||
Securities held-to-maturity, net | 114,696 | 95,524 | ||
Investments in equity affiliates | 86,253 | 74,274 | ||
Goodwill and other intangible assets | 103,106 | 105,451 | ||
Other assets | 201,782 | 195,978 | ||
Total assets | 9,060,800 | 7,660,986 | ||
Liabilities: | ||||
Debt obligations | 6,748,280 | 5,824,664 | ||
Allowance for loss-sharing obligations | 65,645 | 64,303 | ||
Other liabilities | 290,108 | 289,334 | ||
Total liabilities | 7,104,033 | 6,178,301 | ||
Structured Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 40,353 | 172,568 | ||
Restricted cash | 233,474 | 188,226 | ||
Loans and investments, net | 7,213,915 | 5,285,868 | ||
Investments in equity affiliates | 86,253 | 74,274 | ||
Goodwill and other intangible assets | 12,500 | 12,500 | ||
Other assets | 124,328 | 142,844 | ||
Total assets | 7,710,823 | 5,876,280 | ||
Liabilities: | ||||
Debt obligations | 6,356,490 | 4,872,626 | ||
Other liabilities | 178,934 | 203,554 | ||
Total liabilities | 6,535,424 | 5,076,180 | ||
Agency Business | Operating segments | ||||
Assets: | ||||
Cash and cash equivalents | 175,305 | 166,960 | ||
Restricted cash | 15,616 | 9,244 | ||
Loans held-for-sale, net | 457,647 | 986,919 | ||
Capitalized mortgage servicing rights, net | 418,653 | 379,974 | ||
Securities held-to-maturity, net | 114,696 | 95,524 | ||
Goodwill and other intangible assets | 90,606 | 92,951 | ||
Other assets | 77,454 | 53,134 | ||
Total assets | 1,349,977 | 1,784,706 | ||
Liabilities: | ||||
Debt obligations | 391,790 | 952,038 | ||
Allowance for loss-sharing obligations | 65,645 | 64,303 | ||
Other liabilities | 111,174 | 85,780 | ||
Total liabilities | $ 568,609 | $ 1,102,121 |
Segment Information - Originati
Segment Information - Origination Data (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Segment Information | ||||
Origination Volumes | $ 1,194,344,000 | $ 1,206,723,000 | $ 2,654,479,000 | $ 2,473,941,000 |
Loan Sales Data: | ||||
Loan Sales | $ 1,482,109,000 | $ 1,992,889,000 | $ 3,324,000,000 | $ 2,949,949,000 |
Sales margin (fee-based services as a % of loan sales) | 2.76% | 1.32% | 2.10% | 1.38% |
MSR rate (MSR income as a % of loan commitments) | 2.20% | 2.69% | 2.38% | 2.20% |
Structured Business | ||||
Segment Information | ||||
Total new loan originations | $ 1,838,945,000 | $ 300,481,000 | $ 2,926,871,000 | $ 1,156,710,000 |
Loan payoffs / paydowns | 662,940,000 | 159,174,000 | 895,968,000 | 434,466,000 |
Structured Business | Bridge loans | ||||
Segment Information | ||||
Total new loan originations | 1,800,688,000 | 298,934,000 | 2,806,376,000 | 1,084,056,000 |
Structured Business | Mezzanine loans | ||||
Segment Information | ||||
Total new loan originations | $ 38,257,000 | 1,547,000 | 94,257,000 | 15,722,000 |
Structured Business | Preferred equity investments | ||||
Segment Information | ||||
Total new loan originations | 23,500,000 | |||
Structured Business | Other loans | ||||
Segment Information | ||||
Total new loan originations | $ 26,238,000 | $ 33,432,000 | ||
Structured Business | SFR - Fixed Rate | Bridge loans | ||||
Segment Information | ||||
Number of loans committed by Entity | loan | 1 | 4 | ||
Loans committed | $ 40,000,000 | $ 138,400,000 | ||
Number of loans under the loan portfolio | 25 | 43 | ||
Total loan commitment | $ 70,900,000 | $ 114,200,000 | ||
Structured Business | SFR - Fixed Rate | Other loans | ||||
Segment Information | ||||
Number of loans under the loan portfolio | loan | 1 | 7 | ||
Total loan commitment | $ 26,200,000 | $ 32,300,000 | ||
Agency Business | ||||
Segment Information | ||||
Origination Volumes | 1,313,352,000 | 1,400,556,000 | 2,710,986,000 | 2,482,528,000 |
Agency Business | SFR - Fixed Rate | ||||
Segment Information | ||||
Origination Volumes | 11,996,000 | 11,996,000 | ||
Loan Sales Data: | ||||
Loan Sales | 11,996,000 | 75,294,000 | ||
Agency Business | Fannie Mae | ||||
Segment Information | ||||
Origination Volumes | 637,494,000 | 1,140,181,000 | 1,701,477,000 | 1,722,154,000 |
Loan Sales Data: | ||||
Loan Sales | 722,499,000 | 1,063,923,000 | 2,159,865,000 | 1,817,967,000 |
Agency Business | Private Label | ||||
Segment Information | ||||
Origination Volumes | 377,184,000 | 49,122,000 | 529,638,000 | 331,467,000 |
Loan Sales Data: | ||||
Loan Sales | 449,890,000 | 727,154,000 | 449,890,000 | 727,154,000 |
Agency Business | Freddie Mac | ||||
Segment Information | ||||
Origination Volumes | 155,914,000 | 135,720,000 | 270,631,000 | 335,431,000 |
Loan Sales Data: | ||||
Loan Sales | 134,122,000 | 171,688,000 | 408,946,000 | 351,391,000 |
Agency Business | FHA | ||||
Segment Information | ||||
Origination Volumes | 130,764,000 | 75,533,000 | 197,244,000 | 93,476,000 |
Loan Sales Data: | ||||
Loan Sales | $ 163,602,000 | $ 30,124,000 | $ 230,005,000 | $ 53,437,000 |
Segment Information - Key Servi
Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Information | ||
UPB of Servicing Portfolio | $ 26,035,055 | $ 24,628,456 |
Wtd. Avg. Servicing Fee Rate (basis points) | 0.459% | 45.40% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years | 8 years 10 months 24 days |
SFR - Fixed Rate | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 75,103 | |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | |
Wtd. Avg. Life of Servicing Portfolio (in years) | 5 years 10 months 24 days | |
Fannie Mae | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 19,191,969 | $ 18,268,268 |
Wtd. Avg. Servicing Fee Rate (basis points) | 53.20% | 52.30% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 8 years 3 months 18 days | 8 years 2 months 12 days |
Freddie Mac | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 4,708,457 | $ 4,881,080 |
Wtd. Avg. Servicing Fee Rate (basis points) | 28.50% | 27.90% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years 9 months 18 days | 9 years 10 months 24 days |
Private Label | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 1,176,627 | $ 726,992 |
Wtd. Avg. Servicing Fee Rate (basis points) | 20.00% | 20.00% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 9 years | 8 years 8 months 12 days |
FHA | ||
Segment Information | ||
UPB of Servicing Portfolio | $ 882,899 | $ 752,116 |
Wtd. Avg. Servicing Fee Rate (basis points) | 15.70% | 16.30% |
Wtd. Avg. Life of Servicing Portfolio (in years) | 21 years | 20 years 3 months 18 days |