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INTEREST INCOME AND INTEREST EXPENSE
 6 Months Ended
Jun. 30, 2022
Banking and Thrift, Interest [Abstract]  
INTEREST INCOME AND INTEREST EXPENSE
16.  INTEREST INCOME AND INTEREST EXPENSE
Refer to the “Significant Accounting Policies” Note for details surrounding the Company’s accounting policy related to net interest income on securities and loans.
The following table summarizes the interest income recognition methodology for Residential Securities:
 Interest Income Methodology
Agency 
Fixed-rate pass-through (1)
Effective yield (3)
Adjustable-rate pass-through (1)
Effective yield (3)
Multifamily (1)
Contractual Cash Flows
CMO (1)
Effective yield (3)
Reverse mortgages (2)
Prospective
Interest-only (2)
Prospective
Residential credit 
CRT (2)
Prospective
Alt-A (2)
Prospective
Prime (2)
Prospective
Subprime (2)
Prospective
NPL/RPL (2)
Prospective
Prime jumbo (2)
Prospective
(1) Changes in fair value are recognized in Other comprehensive income (loss) on the accompanying Consolidated Statements of Comprehensive Income (Loss).
(2) Changes in fair value are recognized in Net gains (losses) on investments and other on the accompanying Consolidated Statements of Comprehensive Income (Loss).
(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.
The following presents the components of the Company’s interest income and interest expense for the three and six months ended June 30, 2022 and June 30, 2021.
 For the Three Months Ended June 30,
For the Six Months Ended June 30,
 2022202120222021
Interest income(dollars in thousands)
Agency securities$497,135 $255,801 $1,020,086 $883,455 
Residential credit securities30,037 19,477 52,159 36,457 
Residential mortgage loans (1)
91,648 38,963 165,136 76,072 
Commercial investment portfolio (1) (2)
26,575 69,663 63,858 151,264 
Reverse repurchase agreements220 2 226 36 
Total interest income$645,615 $383,906 $1,301,465 $1,147,284 
Interest expense  
Repurchase agreements105,608 29,140 132,487 71,725 
Debt issued by securitization vehicles50,303 23,216 84,928 49,492 
Participations issued9,379 1,739 15,231 2,336 
Other5,185 6,952 12,751 13,467 
Total interest expense170,475 61,047 245,397 137,020 
Net interest income$475,140 $322,859 $1,056,068 $1,010,264 
(1) Includes assets transferred or pledged to securitization vehicles.
(2) Includes commercial real estate debt and preferred equity and corporate debt.