Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

(a) Lease Commitments

The Company’s primary lease commitments relate to its corporate headquarters. In April 2021, the Company relocated its corporate headquarters, terminating its prior lease on April 30, 2021. For the three and six months ended June 30, 2021, the Company recorded aggregate lease expense of approximately $1.0 million and $1.8 million, respectively, in connection with these two leases.

The term specified in the current 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 current lease, excluding real estate tax and operating expense escalation charges (which at this point are unknown) and incentives, is approximately $4.8 million.

At June 30, 2021, the contractual minimum rental payments (exclusive of possible rent escalation charges and normal recurring charges for maintenance, insurance and taxes) were as follows:


Year Ended December 31,	Minimum Rental Payments
(In Thousands)
2021 (1)	$	349
2022	4,618
2023	4,619
2024	4,599
2025	4,534
Thereafter	54,156
Total	$	72,875

(1) Reflects contractual minimum rental payments due for the period from July 1, 2021 through December 31, 2021.

(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 June 30, 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).

At June 30, 2021, the Company had unfunded commitments of $89.7 million in connection with its purchased Rehabilitation loans.

(d) Residential Whole Loan Purchase CommitmentsAt June 30, 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 $131.3 million, with a corresponding liability recorded in Other Liabilities and included in Payable for unsettled residential whole loan purchases.