Investments In Loans

9 Months Ended

Sep. 30, 2011

Investments In Loans [Abstract]

Investments In Loans

NOTE 3: INVESTMENTS IN LOANS

Investments in Commercial Mortgages, Mezzanine Loans, Other Loans and Preferred Equity Interests

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of September 30, 2011:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates
Commercial Real Estate (CRE) Loans
Commercial mortgages	$	658,446		$	(3,949	)	$	654,497			39		6.7	%	Nov. 2011 to May 2021
Mezzanine loans		344,870			(5,027	)		339,843			93		8.9	%	Nov. 2011 to Nov. 2038
Preferred equity interests		61,200			(1,130	)		60,070			21		10.5	%	Nov. 2011 to Aug. 2025
Total CRE Loans		1,064,516			(10,106	)		1,054,410			153		7.6	%
Other loans		54,842			(616	)		54,226			4		6.4	%	Nov. 2011 to Oct. 2016
Total Loans	$	1,119,358		$	(10,722	)	$	1,108,636			157		7.6	%
Deferred fees		(1,207	)		0			(1,207	)
Total investments in loans	$	1,118,151		$	(10,722	)	$	1,107,429

(1) Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments, which does not necessarily correspond to the carrying amount.

During the nine-month periods ended September 30, 2011 and 2010, we completed the conversion of three and seven commercial real estate loans with a carrying value of $85,114 and $110,528 to real estate owned properties. During the nine-month periods ended September 30, 2011 and 2010, we charged off $6,814 and $19,241, respectively, related to the conversion of commercial real estate loans to owned properties. See Note 5.

The following table summarizes the delinquency statistics of our commercial real estate loans as of September 30, 2011 and December 31, 2010:

Delinquency Status	As of September  30, 2011		As of December  31, 2010
30 to 59 days	$	1,230	$	27,978
60 to 89 days		7,400		0
90 days or more		31,855		55,450
In foreclosure or bankruptcy proceedings		39,800		46,578
Total	$	80,285	$	130,006

As of September 30, 2011 and December 31, 2010, approximately $91,833 and $122,306, respectively, of our commercial real estate loans were on non-accrual status and had a weighted-average interest rate of 9.6% and 8.8%, respectively. As of September 30, 2011 and December 31, 2010, approximately $19,501 and $20,908 of one other loan was on non-accrual status and had a weighted-average interest rate of 7.2%.

Allowance For Losses And Impaired Loans

The following table provides a roll-forward of our allowance for losses for our commercial mortgages, mezzanine loans, and other loans for the three-month periods ended September 30, 2011 and 2010:

	For the  Three-Month Period Ended September 30, 2011			For the  Three-Month Period Ended September 30, 2010
Beginning balance	$	57,866		$	78,672
Provision		500			10,813
Charge-offs, net of recoveries		(2,240	)		(8,497	)
Ending balance	$	56,126		$	80,988

The following table provides a roll-forward of our allowance for losses for our commercial mortgages, mezzanine loans, and other loans for the nine-month periods ended September 30, 2011 and 2010:

	For the  Nine-Month Period Ended September 30, 2011			For the  Nine-Month Period Ended September 30, 2010
Beginning balance	$	69,691		$	86,609
Provision		3,400			35,807
Charge-offs, net of recoveries		(16,965	)		(41,428	)
Ending balance	$	56,126		$	80,988

As of September 30, 2011 and December 31, 2010, we identified 19 and 27 commercial mortgages, mezzanine loans and other loans with unpaid principal balances of $120,470 and $157,746 as impaired.

The average unpaid principal balance of total impaired loans was $118,164 and $181,301 during the three-month periods ended September 30, 2011 and 2010 and $134,585 and $181,169 during the nine-month periods ended September 30, 2011 and 2010. We recorded interest income from impaired loans of $2 and $141 for the three-month periods ended September 30, 2011 and 2010 and $526 and $2,633 for the nine-month periods ended September 30, 2011 and 2010.