XML 40 R29.htm IDEA: XBRL DOCUMENT v3.21.2
Other Assets (Tables)
 9 Months Ended
Sep. 30, 2021
Other Assets [Abstract]  
Schedule of other assets
The following table presents the components of the Company’s Other assets at September 30, 2021 and December 31, 2020:

(In Thousands)September 30, 2021December 31, 2020
REO (1)
$178,802 $249,699 
Capital contributions made to loan origination partners53,537 47,148 
Goodwill61,615 — 
Intangibles, net (2)
24,700 — 
Other interest-earning assets35,437 — 
Interest receivable41,432 38,850 
Other loan related receivables45,242 16,682 
Lease right-of-use asset (3)
39,500 758 
Other61,338 32,244 
Total Other Assets$541,603 $385,381 

(1) Includes $16.1 million and $61.8 million of REO that is held-for-investment at September 30, 2021 and December 31, 2020, respectively.
(2) Net of aggregate accumulated amortization of $3.3 million as of September 30, 2021.
(3) An estimated incremental borrowing rate of 7.5% was used in connection with the Company’s primary operating lease (see Notes 2 and 10).
Schedule of activity for real estate owned
The following table presents the activity in the Company’s REO for the three and nine months ended September 30, 2021 and 2020:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2021202020212020
Balance at beginning of period$204,762 $348,516 $249,699 $411,659 
Adjustments to record at lower of cost or fair value
(2,448)93 (3,390)(11,796)
Transfer from residential whole loans (1)
11,673 15,672 50,043 74,891 
Purchases and capital improvements, net1,584 771 2,207 10,072 
Disposals and other (2)
(36,769)(66,185)(119,757)(185,959)
Balance at end of period$178,802 $298,867 $178,802 $298,867 
Number of properties674 1,131 674 1,131 
(1)Includes a net gain recorded on transfer of approximately $700,000 and $834,000 for the three months ended September 30, 2021 and 2020, respectively; and a net loss recorded on transfer of approximately $400,000 and a net gain recorded on transfer of approximately $4.1 million for the nine months ended September 30, 2021 and 2020, respectively.
(2)During the three and nine months ended September 30, 2021, the Company sold 151 and 470 REO properties for consideration of $45.4 million and $134.0 million, realizing net gains of approximately $7.3 million and $13.4 million, respectively. During the three and nine months ended September 30, 2020, the Company sold 267 and 812 REO properties for consideration of $69.9 million and $195.2 million, realizing net gains of approximately $3.9 million and $10.0 million, respectively. These amounts are included in Other Income, net on the Company’s consolidated statements of operations.
Schedule of interest expense and the weighted average interest rate paid and received on swaps
The following table presents the net impact of the Company’s derivative hedging instruments on its net interest expense and the weighted average interest rate paid and received for such Swaps for the three and nine months ended September 30, 2021 and 2020:
 
Three Months Ended
September 30,		Nine Months Ended
September 30,
(Dollars in Thousands)2021202020212020
Interest (expense)/income attributable to Swaps$— $— $— $(3,359)
Weighted average Swap rate paid— %— %— %2.06 %
Weighted average Swap rate received— %— %— %1.63 %
Schedule of impact of hedging instruments on AOCI
The following table presents the impact of the Company’s derivative hedging instruments on its AOCI for the three and nine months ended September 30, 2021 and 2020:
 
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In Thousands)2021202020212020
AOCI from derivative hedging instruments:
Balance at beginning of period$— $(7,176)$— $(22,675)
Net loss on Swaps— — — (50,127)
Reclassification adjustment for losses/gains related to hedging instruments included in net income— 7,176 — 72,802 
Balance at end of period$— $— $— $— 
Summary of open short positions in TBA securities The table below summarizes open short positions in TBA securities as of September 30, 2021, which had an aggregate value of $5.4 million.
TBA SecurityNotional AmountSettlement Date
(In Thousands)
FNCL 2.0 10/21$420,000 October 14, 2021
FNCL 2.5 10/21$330,000 October 14, 2021