Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

(a) Lease Commitments

  The Company’s primary lease commitments relate to its corporate headquarters. In March 2021, the Company relocated its corporate headquarters, terminating its prior lease on April 30, 2021. For the three months ended March 31, 2021, the Company recorded aggregate lease expense of approximately $767,000 in connection with this lease.

The term specified in the new lease is approximately fifteen years with an option to renew for an additional five years. The Company’s current estimate of annual lease expense under the new lease, excluding real estate tax and operating expense escalation charges (which at this point are unknown) and incentives, is approximately $4.6 million.

(b) Representations and Warranties in Connection with Loan Securitization Transactions

In connection with the loan securitization transactions entered into by the Company, the Company has the obligation under certain circumstances to repurchase assets previously transferred to securitization vehicles upon breach of certain representations and warranties. As of March 31, 2021, the Company had no reserve established for repurchases of loans and was not aware of any material unsettled repurchase claims that would require the establishment of such a reserve (see Note 15).

(c) Rehabilitation Loan Commitments

At March 31, 2021, the Company had unfunded commitments of $54.4 million in connection with its purchased Rehabilitation loans (see Note 3).

(d) Residential Whole Loan Purchase Commitments

At March 31, 2021, the Company has agreed, subject to the completion of due diligence and customary closing conditions, to purchase residential whole loans held at fair value with an aggregate estimated purchase price of $112.2 million, with a corresponding liability recorded in Other Liabilities and included in Payable for unsettled residential whole loan purchases.