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MORTGAGE LOAN RECEIVABLES (Tables)
 12 Months Ended
Dec. 31, 2017
Mortgage Loans on Real Estate [Abstract]  
Schedule of mortgage loan receivables
December 31, 2016 ($ in thousands)
 
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loans held by consolidated subsidiaries
$
2,011,309

 
$
2,000,095

 
7.17
%
 
1.66
Provision for loan losses
N/A

 
(4,000
)
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost
2,011,309

 
1,996,095

 
 
 
 
Mortgage loan receivables held for sale
360,518

 
357,882

 
4.20
%
 
4.55
Total
2,371,827

 
2,353,977

 
6.73
%
 
2.10
 
(1)
December 31, 2016 LIBOR rates are used to calculate weighted average yield for floating rate loans.
December 31, 2017 ($ in thousands)
 
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loans held by consolidated subsidiaries(2)
$
3,300,709

 
$
3,282,462

 
7.18
%
 
1.61
Provision for loan losses
N/A

 
(4,000
)
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost
3,300,709

 
3,278,462

 
 
 
 
Mortgage loan receivables held for sale
232,527

 
230,180

 
4.88
%
 
8.17
Total
$
3,533,236

 
$
3,508,642

 
7.03
%
 
2.04
 
(1)
December 31, 2017 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans.
(2)
Includes amounts relating to consolidated variable interest entities. See Note 3.
Summary of mortgage loan receivables by loan type
The following table summarizes mortgage loan receivables by loan type ($ in thousands):
 
 
December 31, 2017
 
December 31, 2016
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
 
 
 
 
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost:
 

 
 

 
 

 
 

First mortgage loans
$
3,140,788

 
$
3,123,268

 
$
1,843,006

 
$
1,832,626

Mezzanine loans
159,921

 
159,194

 
168,303

 
167,469

Mortgage loan receivables held for investment, net, at amortized cost
3,300,709

 
3,282,462

 
2,011,309

 
2,000,095

Mortgage loan receivables held for sale
 

 
 

 
 

 
 

First mortgage loans
232,527

 
230,180

 
360,518

 
357,882

Total mortgage loan receivables held for sale
232,527

 
230,180

 
360,518

 
357,882

 
 
 
 
 
 
 
 
Provision for loan losses
N/A

 
(4,000
)
 
N/A

 
(4,000
)
Total
$
3,533,236

 
$
3,508,642

 
$
2,371,827

 
$
2,353,977
Schedule of activity in loan portfolio
For the years ended December 31, 2017, 2016 and 2015, the activity in our loan portfolio was as follows ($ in thousands):

 
Mortgage loan receivables held for investment, net, at amortized cost:
 
 
 
 
Mortgage loans held by consolidated subsidiaries
 
Provision for loan losses
 
Mortgage loan 
receivables held
for sale
 
 
 
 
 
 
 
 
Balance, December 31, 2016
$
2,000,095

 
$
(4,000
)
 
$
357,882

 
Origination of mortgage loan receivables
1,407,669

 
—

 
1,465,635

 
Purchases of mortgage loan receivables
94,079

 
—

 
—

 
Repayment of mortgage loan receivables
(384,283
)
 
—

 
(2,569
)
(1)
Proceeds from sales of mortgage loan receivables
—

 
—

 
(1,491,092
)
(2)
Realized gain on sale of mortgage loan receivables(3)
—

 
—

 
54,046

 
Transfer between held for investment and held for sale(4)
153,722

 
—

 
(153,722
)
 
Accretion/amortization of discount, premium and other fees
11,180

 
—

 
—

 
Loan loss provision
—

 
—

 
—

 
Balance, December 31, 2017
$
3,282,462

 
$
(4,000
)
 
$
230,180

 
 
(1)
Includes $0.5 million of non-cash repayment of mortgage loan receivables.
(2)
Includes $115.4 million of non-cash proceeds from sales.
(3)
Includes $1.8 million of realized losses on loans related to lower of cost or market adjustments for the year ended December 31, 2017.
(4)
During the year ended December 31, 2017, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, a loan with an outstanding face amount of $120.0 million, a book value of $119.9 million (fair value at date of reclassification) and a remaining maturity of three years. The loan had been recorded at lower of cost or market prior to its reclassification. The discount to fair value is the result of an increase in market interest rates since the loan’s origination and not a deterioration in credit of the borrower or collateral coverage and the Company expects to collect all amounts due under the loan. In addition, during the year ended December 31, 2017, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, a loan with an outstanding face amount and book value of $33.8 million, (fair value at date of reclassification) and a remaining maturity of 3.5 years. These transfers have been reflected as non-cash items on the consolidated statement of cash flows for the year ended December 31, 2017.
 
Mortgage loan receivables held for investment, net, at amortized cost:
 
 
 
Mortgage loans held by consolidated subsidiaries
 
Provision for loan losses
 
Mortgage loan
receivables held
for sale
 
 
 
 
 
 
Balance, December 31, 2015
$
1,742,345

 
$
(3,700
)
 
$
571,764

Origination of mortgage loan receivables
969,401

(1)
—

 
1,128,651

Purchases of mortgage loan receivables
—

 
—

 
73,421

Repayment of mortgage loan receivables
(720,592
)
(2)
—

 
(1,768
)
Proceeds from sales of mortgage loan receivables(3)
—

 
—

 
(1,440,195
)
Realized gain on sale of mortgage loan receivables
—

 
—

 
26,009

Accretion/amortization of discount, premium and other fees
8,941

 
—

 
—

Loan loss provision
—

 
(300
)
 
—

Balance, December 31, 2016
$
2,000,095

 
$
(4,000
)
 
$
357,882

 
(1)
Includes $50.4 million of non-cash originations.
(2)
Includes $70.7 million of non-cash repayments.
(3)
Includes $2.6 million of unrealized losses on loans recorded as other than temporary impairments related to lower of cost or market adjustments for the year ended December 31, 2016.

 
Mortgage loan receivables held for investment, net, at amortized cost:
 
 
 
Mortgage loans held by consolidated subsidiaries
 
Provision for loan losses
 
Mortgage loan
receivables held
for sale
 
 
 
 
 
 
Balance, December 31, 2014
$
1,524,153

 
$
(3,100
)
 
$
417,955

Origination of mortgage loan receivables
963,023

 
—

 
2,594,141

Repayment of mortgage loan receivables
(752,452
)
 
—

 
(2,308
)
Proceeds from sales of mortgage loan receivables
—

 
—

 
(2,509,090
)
Non-cash disposition of loan via foreclosure
(4,620
)
 
—

 
—

Realized gain on sale of mortgage loan receivables
—

 
—

 
71,066

Accretion/amortization of discount, premium and other fees
12,241

 
—

 
—

Loan loss provision
—

 
(600
)
 
—

Balance, December 31, 2015
$
1,742,345

 
$
(3,700
)
 
$
571,764
Schedule of provision for loan losses
Provision for Loan Losses ($ in thousands)
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
 
 
 
 
 
Provision for loan losses at beginning of period
$
4,000

 
$
3,700

 
$
3,100

Provision for loan losses
—

 
300

 
600

Provision for loan losses at end of period
$
4,000

 
$
4,000

 
$
3,700