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Loans and Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Loans and Investments [Abstract]  
Summary of Structured Business Loan and Investment Portfolio
Our Structured Business loan and investment portfolio consists of ($ in thousands):
June 30, 2024Percent of
Total		Loan
Count		Wtd. Avg.
Pay Rate (1)		Wtd. Avg.
Remaining
Months to
Maturity (2)		Wtd. Avg.
First Dollar
LTV Ratio (3)		Wtd. Avg.
Last Dollar
LTV Ratio (4)
Bridge loans (5)$11,478,252 97 %6967.81 %10.60 %79 %
Mezzanine loans272,550 2 %597.87 %52.851 %83 %
Preferred equity investments117,431 1 %265.09 %55.055 %81 %
SFR permanent loans4,975 <1% 210.02 %10.90 %47 %
Total UPB11,873,208 100 %7837.79 %12.02 %79 %
Allowance for credit losses(238,923)
Unearned revenue(30,341)
Loans and investments, net$11,603,944 
December 31, 2023
Bridge loans (5)$12,273,244 97 %6798.45 %12.00 %78 %
Mezzanine loans248,457 2 %498.41 %56.648 %80 %
Preferred equity investments85,741 1 %173.95 %60.353 %82 %
SFR permanent loans7,564 <1% 29.84 %13.90 %56 %
Total UPB12,615,006 100 %7478.42 %13.21 %78 %
Allowance for credit losses(195,664)
Unearned revenue(41,536)
Loans and investments, net$12,377,806 
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(1)“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.
(2)Including extension options, the weighted average remaining months to maturity at June 30, 2024 and December 31, 2023 was 25.6 and 29.4, respectively.
(3)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.
(4)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.
(5)At June 30, 2024 and December 31, 2023, bridge loans included 403 and 354, respectively, of SFR loans with a total gross loan commitment of $3.42 billion and $2.86 billion, respectively, of which $1.62 billion and $1.32 billion, respectively, was funded.
Schedule of the Loan Portfolio's Internal Risk Ratings and LTV Ratios by Asset Class
A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2024, and charge-offs recorded for the six months ended June 30, 2024 is as follows ($ in thousands):
UPB by Origination YearTotalWtd. Avg.
First Dollar
LTV Ratio 		Wtd. Avg.
Last Dollar
LTV Ratio
Asset Class / Risk Rating20242023202220212020Prior
Multifamily:
Pass$98,370 $90,179 $35,366 $30,304 $2,010 $24,860 $281,089 
Pass/Watch137,775 159,636 1,762,948 1,210,592 119,860 114,600 3,505,411 
Special Mention9,069 167,357 2,028,629 3,175,684 — 116,561 5,497,300 
Substandard— 21,758 515,008 69,300 8,006 — 614,072 
Doubtful9,460 — — 111,060 14,800 9,764 145,084 
Total Multifamily$254,674 $438,930 $4,341,951 $4,596,940 $144,676 $265,785 $10,042,956 2 %82 %
Single-Family Rental:Percentage of portfolio85 %
Pass$25,507 $19,109 $810 $— $— $— $45,426 
Pass/Watch227,241 338,968 461,269 146,738 116,364 — 1,290,580 
Special Mention5,704 47,065 65,561 163,286 9,622 — 291,238 
Total Single-Family Rental$258,452 $405,142 $527,640 $310,024 $125,986 $— $1,627,244 0 %61 %
Land:Percentage of portfolio14 %
Pass$10,350 $— $— $— $— $— $10,350 
Pass/Watch— — — — 8,100 — 8,100 
Substandard— — — — — 127,928 127,928 
Total Land$10,350 $— $— $— $8,100 $127,928 $146,378 0 %96 %
Office:Percentage of portfolio1 %
Special Mention$— $— $— $— $35,410 $— $35,410 
Total Office$— $— $— $— $35,410 $— $35,410 0 %80 %
Retail:Percentage of portfolio< 1%
Substandard$— $— $— $— $— $19,520 $19,520 
Total Retail$— $— $— $— $— $19,520 $19,520 0 %88 %
Commercial:Percentage of portfolio< 1%
Doubtful$— $— $— $— $— $1,700 $1,700 
Total Commercial$— $— $— $— $— $1,700 $1,700 0 %100 %
Percentage of portfolio < 1%
Grand Total$523,476 $844,072 $4,869,591 $4,906,964 $314,172 $414,933 $11,873,208 2 %79 %
Charge-offs$— $— $— $1,988 $— $— $1,988 
A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2023, and charge-offs recorded during 2023 is as follows ($ in thousands):
UPB by Origination YearTotalWtd. Avg.
First Dollar
LTV Ratio 		Wtd. Avg.
Last Dollar
LTV Ratio
Asset Class / Risk Rating20232022202120202019Prior
Multifamily:
Pass$80,814 $53,316 $26,185 $2,010 $4,598 $20,300 $187,223 
Pass/Watch317,358 2,561,938 2,223,155 119,860 84,600 58,044 5,364,955 
Special Mention24,424 1,762,539 2,631,689 180,750 140,685 350 4,740,437 
Substandard— 435,878 322,987 8,006 — — 766,871 
Doubtful— — 13,930 14,800 9,765 — 38,495 
Total Multifamily$422,596 $4,813,671 $5,217,946 $325,426 $239,648 $78,694 $11,097,981 1 %80 %
Single-Family Rental:Percentage of portfolio88 %
Pass$9,709 $608 $— $— $— $— $10,317 
Pass/Watch289,482 465,057 144,846 119,692 — — 1,019,077 
Special Mention31,131 45,145 218,697 — — — 294,973 
Total Single-Family Rental$330,322 $510,810 $363,543 $119,692 $— $— $1,324,367 0 %62 %
Land:Percentage of portfolio10 %
Pass/Watch$— $— $— $4,600 $— $— $4,600 
Special Mention— — — 3,500 — — 3,500 
Substandard— — — — — 127,928 127,928 
Total Land$— $— $— $8,100 $— $127,928 $136,028 0 %97 %
Office:Percentage of portfolio1 %
Special Mention$— $— $— $35,410 $— $— $35,410 
Total Office$— $— $— $35,410 $— $— $35,410 0 %80 %
Retail:Percentage of portfolio< 1%
Substandard$— $— $— $— $— $19,520 $19,520 
Total Retail$— $— $— $— $— $19,520 $19,520 0 %88 %
Commercial:Percentage of portfolio< 1%
Doubtful$— $— $— $— $— $1,700 $1,700 
Total Commercial$— $— $— $— $— $1,700 $1,700 63 %66 %
Percentage of portfolio< 1%
Grand Total$752,918 $5,324,481 $5,581,489 $488,628 $239,648 $227,842 $12,615,006 1 %78 %
Charge-offs$— $— $— $— $— $5,700 $5,700 
Schedule of the Changes in the Allowance for Credit Losses
A summary of the changes in the allowance for credit losses is as follows (in thousands):
Three Months Ended June 30, 2024
MultifamilyLandRetailSingle-Family RentalCommercialOfficeOtherTotal
Allowance for credit losses:
Beginning balance$125,999 $78,120 $3,293 $2,737 $1,700 $93 $— $211,942 
Provision for credit losses (net of recoveries)25,849 330 — 1,176 — 114 — 27,469 
Charge-offs(488)— — — — — — (488)
Ending balance$151,360 $78,450 $3,293 $3,913 $1,700 $207 $— $238,923 
Three Months Ended June 30, 2023
Allowance for credit losses:
Beginning balance$58,348 $78,086 $5,819 $973 $1,700 $8,106 $45 $153,077 
Provision for credit losses (net of recoveries)15,947 (184)— 104 — 140 (30)15,977 
Ending balance$74,295 $77,902 $5,819 $1,077 $1,700 $8,246 $15 $169,054 
Six Months Ended June 30, 2024
Allowance for credit losses:
Beginning balance$110,847 $78,058 $3,293 $1,624 $1,700 $142 $— $195,664 
Provision for credit losses (net of recoveries)42,501 392 — 2,289 — 65 — 45,247 
Charge-offs(1,988)— — — — — — (1,988)
Ending balance$151,360 $78,450 $3,293 $3,913 $1,700 $207 $— $238,923 
Six Months Ended June 30, 2023
Allowance for credit losses:
Beginning balance$37,961 $78,068 $5,819 $781 $1,700 $8,162 $68 $132,559 
Provision for credit losses (net of recoveries)36,334 (166)— 296 — 84 (53)36,495 
Ending balance$74,295 $77,902 $5,819 $1,077 $1,700 $8,246 $15 $169,054 
Summary of Specific Loans Considered Impaired by Asset Class A summary of our specific loans considered impaired by asset class is as follows ($ in thousands):
June 30, 2024
Asset ClassUPBCarrying
Value (1)		Allowance for
Credit Losses		Wtd. Avg. First
Dollar LTV Ratio		Wtd. Avg. Last
Dollar LTV Ratio
Multifamily$437,108 $413,500 $57,513 0 %97 %
Land134,215 127,868 77,869 0 %99 %
Retail19,520 15,057 3,292 0 %88 %
Commercial1,700 1,700 1,700 0 %100 %
Total$592,543 $558,125 $140,374 0 %97 %
December 31, 2023
Multifamily$272,494 $260,291 $37,750 0 %100 %
Land134,215 127,868 77,869 0 %99 %
Retail19,520 15,037 3,292 0 %88 %
Commercial1,700 1,700 1,700 0 %100 %
Total$427,929 $404,896 $120,611 0 %99 %
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(1)Represents the UPB of twenty-five and nineteen impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2024 and December 31, 2023, respectively.
Schedule of Non-Performing Loans by Asset Class
A summary of our non-performing loans by asset class is as follows (in thousands):
June 30, 2024December 31, 2023
UPBGreater Than
60 Days
Past Due		UPBGreater Than
60 Days
Past Due
Multifamily$673,630 $673,630 $271,532 $271,532 
Commercial1,700 1,700 1,700 1,700 
Retail920 920 920 920 
Total$676,250 $676,250 $274,152 $274,152 
(in thousands).
Three Months Ended June 30, 2024Three Months Ended March 31, 2024
Beginning balance (twelve and twenty-four multifamily bridge loans, respectively)
$489,438 $956,917 
Loans that progressed to greater than 60 days past due(263,990)(174,860)
Loans modified or paid off (1)(138,548)(712,922)
Additional loans that are now less than 60 days past due experiencing late and partial payments281,038 420,303 
Ending balance (fourteen and twelve multifamily bridge loans, respectively)
$367,938 $489,438 
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(1)The modifications included bringing the loans current by paying past due interest owed (see Loan Modifications section below).