Loan Securitization/Sale Activities

12 Months Ended

Dec. 31, 2025

As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control.

Loan Securitizations

Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets.

In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold. There were no such redemptions during the years ended December 31, 2025, 2024 and 2023.

The following summarizes the face amount and proceeds of commercial loans securitized for the years ended December 31, 2025, 2024 and 2023 (amounts in thousands):


	Commercial Loans
	Face Amount	Proceeds
For the Year Ended December 31,
2025	1,201,892	1,241,841
2024	1,567,244	1,603,167
2023	759,740	770,733

There were no residential loans securitized during the years ended December 31, 2025, 2024 and 2023.

The securitization of commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option.

Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party.

Commercial and Residential Loan Sales

Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization.

During the year ended December 31, 2025, we sold a $231.7 million senior interest in a first mortgage originated during the year for proceeds of $229.9 million. During the year ended December 31, 2024, we sold $40.1 million of participating interests in first mortgage and mezzanine loans at par (see related discussion in Note 17). During the year ended December 31, 2023, we sold $95.5 million of mezzanine loans at par less costs to sell.

During the years ended December 31, 2025 and 2024, (losses) gains recognized on sales of commercial loans were $(0.4) million and $0.3 million, respectively. During the year ended December 31, 2023, losses recognized on sales of commercial loans were immaterial.

Investing and Servicing Loan Sales

During the year ended December 31, 2025, we sold loans outside of securitizations with a face amount of $42.5 million for proceeds of $43.5 million. During the year ended December 31, 2024, we sold loans outside of securitizations with a face amount of $127.9 million for proceeds of $124.8 million. The sale of these loans does not result in a discrete gain or loss since they are carried under the fair value option. There were no such sales of loans during the year ended December 31, 2023.

Infrastructure Loan Sales

During the year ended December 31, 2024, we sold a loan with a face amount of $49.5 million for proceeds of $47.1 million. The loan had been reclassified as held-for-sale during the three months ended March 31, 2024, at which time a $1.5 million fair value adjustment was provided within credit loss provision based on the contractual sale price. During the years ended December 31, 2025 and 2023, there were no such sales of loans.