Variable Interest Entities

Our maximum risk of loss in VIEs in which we are not the primary beneficiary at December 31, 2017 is presented in the table below.



$ in thousands	Carrying Amount	Company's Maximum Risk of Loss
CMBS	3,216,417	3,216,417
Non-Agency RMBS	1,257,608	1,257,608
Investments in unconsolidated ventures	25,972	25,972
Total	4,499,997	4,499,997

Refer to Note 4 - "Mortgage-Backed and Credit Risk Transfer Securities" and Note 6 - "Other Assets" for additional details regarding these investments.

On December 9, 2015, we completed the sale of certain beneficial interests (the "Securities") in the Residential Securitizations for $69.0 million (the "Transaction"). The Securities sold included the most subordinated classes of asset-backed securities issued by the Residential Securitizations. As a result of the Transaction, we no longer have the power to direct the activities of the Residential Securitizations through default oversight rights and therefore are no longer the primary beneficiary of the Residential Securitizations. We do not manage the Residential Securitizations or serve as or appoint the loan servicer for the Residential Securitizations. Our risk with respect to each investment in a Residential Securitization was limited to our direct ownership in the Residential Securitization. The residential loans owned by the Residential Securitizations were held solely to satisfy the liabilities of the Residential Securitizations, and the investors in the asset-backed securities issued by the Residential Securitizations had no recourse to the Company.

We deconsolidated the assets and liabilities of the Residential Securitizations as of the date of the Transaction. The deconsolidation of the Residential Securitizations did not qualify for presentation and disclosure as discontinued operations. We recorded a loss of $19.6 million on deconsolidation of the Residential Securitizations in our consolidated statement of operations as a component of gain (loss) on investments, net. The following table presents the components of the net loss on deconsolidation of VIEs.



$ in thousands	As of December 9, 2015
Gain (loss) related to derecognition of Residential Securitizations, net	(13,260	)
Gain (loss) related to remeasurement of retained interest, net	3,068
Gain (loss) on sale of the securities, net	(9,431	)
Total gain (loss) on deconsolidation of VIEs, net	(19,623	)

The following table summarizes the net income (loss) of the Residential Securitizations excluding the loss on deconsolidation:



$ in thousands	Year ended December 31, 2015
Interest income - Residential loans	110,908
Interest expense - Asset-backed securities	82,041
Net interest income	28,867
Reduction in provision for loan losses	(213	)
Net interest income after reduction in provision for loan losses	29,080
Expenses - Consolidated securitization trusts	8,219
Net income	20,861