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SECURED FINANCING | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
SECURED FINANCING |
13. SECURED FINANCING
Reverse Repurchase and Repurchase Agreements – The Company finances a significant portion of its assets with repurchase agreements. At the inception of each transaction, the Company assessed each of the specified criteria in ASC 860, Transfers and Servicing, and has determined that each of the financing agreements meet the specified criteria in this guidance. The Company enters into reverse repurchase agreements to earn a yield on excess cash balances. The Company obtains collateral in connection with the reverse repurchase agreements in order to mitigate credit risk exposure to its counterparties. Reverse repurchase agreements and repurchase agreements with the same counterparty and the same maturity are presented net in the Consolidated Statements of Financial Condition when the terms of the agreements meet the criteria to permit netting. The Company reports cash flows on repurchase agreements as financing activities and cash flows on reverse repurchase agreements as investing activities in the Consolidated Statements of Cash Flows. The Company had outstanding $64.8 billion and $101.7 billion of repurchase agreements with weighted average borrowing rates of 0.82% and 1.99%, after giving effect to the Company’s interest rate swaps used to hedge cost of funds, and weighted average remaining maturities of 64 days and 65 days at December 31, 2020 and 2019, respectively. The Company has select arrangements with counterparties to enter into repurchase agreements for $2.4 billion with remaining capacity of $1.9 billion at December 31, 2020. At December 31, 2020 and 2019, the repurchase agreements had the following remaining maturities, collateral types and weighted average rates:
December 31, 2020
| Agency Mortgage-Backed Securities |  | CRTs |  | Non-Agency Mortgage-Backed Securities |  | Residential Mortgage Loans |  | Commercial Loans |  | Commercial Mortgage-Backed Securities |  |  |  | Total Repurchase Agreements |  | Weighted Average Rate
| (dollars in thousands)
1 day | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | — | %
2 to 29 days | 30,151,875 |  |  | 129,993 |  |  | 354,904 |  |  | 76,799 |  |  | — |  |  | 128,267 |  |  |  |  | 30,841,838 |  |  | 0.29 | %
30 to 59 days | 10,247,972 |  |  | 16,073 |  |  | 161,274 |  |  | — |  |  | — |  |  | 142,336 |  |  |  |  | 10,567,655 |  |  | 0.42 | %
60 to 89 days | 8,181,410 |  |  | 99,620 |  |  | 259,401 |  |  | — |  |  | — |  |  | 28,406 |  |  |  |  | 8,568,837 |  |  | 0.30 | %
90 to 119 days | 2,154,733 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 2,154,733 |  |  | 0.23 | %
Over 119 days (1) | 12,008,920 |  |  | — |  |  | 274,860 |  |  | 107,924 |  |  | 271,801 |  |  | 28,671 |  |  |  |  | 12,692,176 |  |  | 0.36 | %
Total | $ | 62,744,910 |  |  | $ | 245,686 |  |  | $ | 1,050,439 |  |  | $ | 184,723 |  |  | $ | 271,801 |  |  | $ | 327,680 |  |  |  |  | $ | 64,825,239 |  |  | 0.32 | %
December 31, 2019
| Agency Mortgage-Backed Securities |  | CRTs |  | Non-Agency Mortgage-Backed Securities |  | Commercial Loans |  | Commercial Mortgage-Backed Securities |  | U.S. Treasury Securities |  | Total Repurchase Agreements |  | Weighted Average Rate
| (dollars in thousands)
1 day | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — | %
2 to 29 days | 36,030,104 |  |  | 237,897 |  |  | 698,091 |  |  | — |  |  | 416,439 |  |  | — |  |  | 37,382,531 |  |  | 2.15 | %
30 to 59 days | 15,079,989 |  |  | — |  |  | 115,805 |  |  | — |  |  | 104,363 |  |  | — |  |  | 15,300,157 |  |  | 2.00 | %
60 to 89 days | 21,931,335 |  |  | 30,841 |  |  | 151,920 |  |  | — |  |  | 3,639 |  |  | — |  |  | 22,117,735 |  |  | 1.97 | %
90 to 119 days | 9,992,914 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,992,914 |  |  | 1.97 | %
Over 119 days (1) | 16,557,123 |  |  | — |  |  | 58,712 |  |  | 303,078 |  |  | 28,478 |  |  | — |  |  | 16,947,391 |  |  | 1.90 | %
Total | $ | 99,591,465 |  |  | $ | 268,738 |  |  | $ | 1,024,528 |  |  | $ | 303,078 |  |  | $ | 552,919 |  |  | $ | — |  |  | $ | 101,740,728 |  |  | 2.03 | %
(1) Less than 1% of the total repurchase agreements had a remaining maturity over 1 year at December 31, 2020. No repurchase agreements had a remaining maturity over one year at December 31, 2019. The following table summarizes the gross amounts of reverse repurchase agreements and repurchase agreements, amounts offset in accordance with netting arrangements and net amounts of repurchase agreements and reverse repurchase agreements as presented in the Consolidated Statements of Financial Condition at December 31, 2020 and 2019. Refer to the “Derivative Instruments” Note for information related to the effect of netting arrangements on the Company’s derivative instruments.
| December 31, 2020 |  | December 31, 2019
| Reverse Repurchase Agreements |  | Repurchase Agreements |  | Reverse Repurchase Agreements |  | Repurchase Agreements
| (dollars in thousands)
Gross amounts | $ | 250,000 |  |  | $ | 65,075,239 |  |  | $ | 100,000 |  |  | $ | 101,840,728 |
Amounts offset | (250,000) |  |  | (250,000) |  |  | (100,000) |  |  | (100,000) |
Netted amounts | $ | — |  |  | $ | 64,825,239 |  |  | $ | — |  |  | $ | 101,740,728 |
Other Secured Financing - The Company previously financed a portion of its financial assets with advances from the Federal Home Loan Bank of Des Moines (“FHLB Des Moines”). Borrowings from FHLB Des Moines are reported in Other secured financing in the Company’s Consolidated Statements of Financial Condition. At December 31, 2020, the Company did not hold advances from the FHLB Des Moines. At December 31, 2019, $1.4 billion of advances from the FHLB Des Moines matured in less than one year and $2.1 billion matured between one to three years. The weighted average rate of the advances from the FHLB Des Moines was 2.16% at December 31, 2019. The Company held $4.4 million and $147.9 million of stock in the FHLB Des Moines at December 31, 2020 and December 31, 2019, respectively, which is reported at cost and included in Other assets on the Company’s Consolidated Statements of Financial Condition. Refer to the Note titled “Variable Interest Entities” for additional information on the Company’s other secured financing arrangements. Investments pledged as collateral under secured financing arrangements and interest rate swaps, excluding residential and senior securitized commercial mortgage loans of consolidated VIEs, had an estimated fair value and accrued interest of $70.6 billion and $0.2 billion, respectively, at December 31, 2020 and $112.8 billion and $357.9 million, respectively, at December 31, 2019. Mortgage loans payable at December 31, 2020 and 2019, were as follows:
December 31, 2020
Property | Mortgage Carrying Value |  | Mortgage Principal |  | Interest Rate |  | Fixed/Floating Rate |  | Maturity Date |  | Priority
(dollars in thousands)
Joint Ventures | $ | 316,686 |  |  | $ | 318,302 |  |  | 4.03% - 4.96% |  | Fixed |  | 2024 - 2029 |  | First liens
Joint Ventures | 16,607 |  |  | 16,325 |  |  | L+2.15% |  | Floating |  | 2/27/2022 |  | First liens
Virginia | 24,464 |  |  | 25,000 |  |  | L+2.85% |  | Floating |  | 5/1/2023 |  | First liens
Texas | 31,127 |  |  | 32,582 |  |  | 3.28% |  | Fixed |  | 2048 - 2053 |  | First liens
Utah | 9,706 |  |  | 9,706 |  |  | L+2.75% |  | Floating |  | 1/31/2021 |  | First liens
Utah | 6,969 |  |  | 6,986 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Minnesota | 13,039 |  |  | 13,072 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Wisconsin | 7,658 |  |  | 7,677 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Total | $ | 426,256 |  |  | $ | 429,650 |  |  |  |  |  |  |  |  |
December 31, 2019
Property | Mortgage Carrying Value |  | Mortgage Principal |  | Interest Rate |  | Fixed/Floating Rate |  | Maturity Date |  | Priority
(dollars in thousands)
Joint Ventures | $ | 316,566 |  |  | $ | 318,562 |  |  | 4.03% - 4.96% |  | Fixed |  | 2024 - 2029 |  | First liens
Joint Ventures | 16,029 |  |  | 16,325 |  |  | L+2.15% |  | Floating |  | 2/27/2022 |  | First liens
Virginia | 82,940 |  |  | 84,702 |  |  | 2.34% - 4.55% |  | Fixed |  | 2036 - 2053 |  | First liens
Texas | 31,667 |  |  | 33,167 |  |  | 3.28% |  | Fixed |  | 2048 - 2053 |  | First liens
Utah | 9,706 |  |  | 9,706 |  |  | L+3.50% |  | Floating |  | 1/31/2020 |  | First liens
Utah | 7,077 |  |  | 7,096 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Minnesota | 13,243 |  |  | 13,276 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Wisconsin | 7,777 |  |  | 7,797 |  |  | 3.69% |  | Fixed |  | 6/1/2053 |  | First liens
Total | $ | 485,005 |  |  | $ | 490,631 |  |  |  |  |  |  |  |  |
The following table details future mortgage loan principal payments at December 31, 2020:
Mortgage Loan Principal Payments
(dollars in thousands)
2021 | $ | 11,123 |
2022 | 17,890 |
2023 | 26,626 |
2024 | 105,635 |
2025 | 186,929 |
Later years | 81,447 |
Total | $ | 429,650 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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