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INTEREST INCOME AND INTEREST EXPENSE
 3 Months Ended
Mar. 31, 2024
Banking and Thrift, Interest [Abstract]  
INTEREST INCOME AND INTEREST EXPENSE
14.  INTEREST INCOME AND INTEREST EXPENSE
Refer to the “Significant Accounting Policies” Note for details surrounding the Company’s accounting policy related to net interest income on securities and loans.
The following table summarizes the interest income recognition methodology for Residential Securities:
 Interest Income Methodology
Agency 
Fixed-rate pass-through (1)
Effective yield (3)
Adjustable-rate pass-through (1)
Effective yield (3)
Multifamily (1)
Contractual Cash Flows
CMO (1)
Effective yield (3)
Reverse mortgages (2)
Prospective
Interest-only (2)
Prospective
Residential credit 
CRT (2)
Prospective
Alt-A (2)
Prospective
Prime (2)
Prospective
Subprime (2)
Prospective
NPL/RPL (2)
Prospective
Prime jumbo (2)
Prospective
(1) Changes in fair value are recognized in Other comprehensive income (loss) on the accompanying Consolidated Statements of Comprehensive Income (Loss) for securities purchased prior to July 1, 2022. Effective July 1, 2022, changes in fair value are recognized in Net gains (losses) on investments and other on the accompanying Consolidated Statements of Comprehensive Income (Loss) for newly purchased securities.
(2) Changes in fair value are recognized in Net gains (losses) on investments and other on the accompanying Consolidated Statements of Comprehensive Income (Loss).
(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.

The following table presents the components of the Company’s interest income and interest expense for the three months ended March 31, 2024 and 2023.
 For the Three Months Ended March 31,
 20242023
Interest income(dollars in thousands)
Agency securities$751,516 $603,102 
Residential credit securities55,996 53,745 
Residential mortgage loans (1)
252,016 147,231 
Commercial investment portfolio (1) (2)
3,554 9,887 
Reverse repurchase agreements31,406 4,285 
Total interest income$1,094,488 $818,250 
Interest expense  
Repurchase agreements$897,598 $698,742 
Debt issued by securitization vehicles161,017 88,934 
Participations issued20,251 11,111 
U.S. Treasury securities sold, not yet purchased22,073 — 
Total interest expense1,100,939 798,787 
Net interest income$(6,451)$19,463 
(1) Includes assets transferred or pledged to securitization vehicles.
(2) Includes commercial real estate debt and preferred equity.