Segment Information

12 Months Ended

Dec. 31, 2021

Note 20 — Segment Information

The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation.


	Year Ended December 31, 2021
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	427,039	$	39,048	$	—	$	466,087
Interest expense		194,435		17,570		—		212,005
Net interest income		232,604		21,478		—		254,082
Other revenue:
Gain on sales, including fee-based services, net		—		123,037		—		123,037
Mortgage servicing rights		—		130,230		—		130,230
Servicing revenue		—		133,429		—		133,429
Amortization of MSRs		—		(58,615)		—		(58,615)
Property operating income		185		—		—		185
Loss on derivative instruments, net		—		(2,684)		—		(2,684)
Other income, net		7,491		75		—		7,566
Total other revenue		7,676		325,472		—		333,148
Other expenses:
Employee compensation and benefits		51,225		120,571		—		171,796
Selling and administrative		21,064		24,511		—		45,575
Property operating expenses		718		—		—		718
Depreciation and amortization		2,524		4,691		—		7,215
Provision for loss sharing (net of recoveries)		—		(6,167)		—		(6,167)
Provision for credit losses (net of recoveries)		(21,223)		110		—		(21,113)
Total other expenses		54,308		143,716		—		198,024
Income before extinguishment of debt, gain on real estate, income from equity affiliates and income taxes		185,972		203,234		—		389,206
Loss on extinguishment of debt		(3,374)		—		—		(3,374)
Gain on real estate		2,466		1,227		—		3,693
Income from equity affiliates		34,567		—		—		34,567
Provision for income taxes		(5,940)		(40,345)		—		(46,285)
Net income		213,691		164,116		—		377,807
Preferred stock dividends		21,888		—		—		21,888
Net income attributable to noncontrolling interest		—		—		38,507		38,507
Net income attributable to common stockholders	$	191,803	$	164,116	$	(38,507)	$	317,412


	Year Ended December 31, 2020
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	305,893	$	33,572	$	—	$	339,465
Interest expense		150,964		18,252		—		169,216
Net interest income		154,929		15,320		—		170,249
Other revenue:
Gain on sales, including fee-based services, net		—		94,607		—		94,607
Mortgage servicing rights		—		165,517		—		165,517
Servicing revenue		—		103,607		—		103,607
Amortization of MSRs		—		(49,222)		—		(49,222)
Property operating income		3,976		—		—		3,976
Loss on derivative instruments, net		(2,859)		(55,476)		—		(58,335)
Other income, net		4,052		57		—		4,109
Total other revenue		5,169		259,090		—		264,259
Other expenses:
Employee compensation and benefits		40,292		104,088		—		144,380
Selling and administrative		15,706		21,642		—		37,348
Property operating expenses		4,898		—		—		4,898
Depreciation and amortization		2,391		5,249		—		7,640
Provision for loss sharing (net of recoveries)		—		14,822		—		14,822
Provision for credit losses (net of recoveries)		59,967		1,143		—		61,110
Total other expenses		123,254		146,944		—		270,198
Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes		36,844		127,466		—		164,310
Loss on extinguishment of debt		(3,546)		—		—		(3,546)
(Loss) gain on real estate		(878)		503		—		(375)
Income from equity affiliates		76,161		—		—		76,161
Provision for income taxes		(14,303)		(26,090)		—		(40,393)
Net income		94,278		101,879		—		196,157
Preferred stock dividends		7,554		—		—		7,554
Net income attributable to noncontrolling interest		—		—		25,208		25,208
Net income attributable to common stockholders	$	86,724	$	101,879	$	(25,208)	$	163,395


	Year Ended December 31, 2019
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	289,841	$	26,099	$	—	$	315,940
Interest expense		169,802		16,597		—		186,399
Net interest income		120,039		9,502		—		129,541
Other revenue:
Gain on sales, including fee-based services, net		—		65,652		—		65,652
Mortgage servicing rights		—		90,761		—		90,761
Servicing revenue		—		103,223		—		103,223
Amortization of MSRs		—		(48,681)		—		(48,681)
Property operating income		9,674		—		—		9,674
Loss on derivative instruments, net		(275)		(1,687)		—		(1,962)
Other income, net		1,178		—		—		1,178
Total other revenue		10,577		209,268		—		219,845
Other expenses:
Employee compensation and benefits		31,264		90,838		—		122,102
Selling and administrative		18,099		22,230		—		40,329
Property operating expenses		10,220		—		—		10,220
Depreciation and amortization		2,046		5,464		—		7,510
Impairment loss on real estate owned		1,000		—		—		1,000
Provision for loss sharing (net of recoveries)		—		1,147		—		1,147
Total other expenses		62,629		119,679		—		182,308
Income before extinguishment of debt, income from equity affiliates and income taxes		67,987		99,091		—		167,078
Loss on extinguishment of debt		(7,439)		—		—		(7,439)
Income from equity affiliates		10,635		—		—		10,635
Provision for income taxes		(668)		(14,368)		—		(15,036)
Net income		70,515		84,723		—		155,238
Preferred stock dividends		7,554		—		—		7,554
Net income attributable to noncontrolling interest		—		—		26,610		26,610
Net income attributable to common stockholders	$	62,961	$	84,723	$	(26,610)	$	121,074

(1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.


	December 31, 2021
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	142,771	$	261,809	$	404,580
Restricted cash		468,013		18,677		486,690
Loans and investments, net		11,981,048		—		11,981,048
Loans held-for-sale, net		—		1,093,609		1,093,609
Capitalized mortgage servicing rights, net		—		422,734		422,734
Securities held-to-maturity, net		—		140,484		140,484
Investments in equity affiliates		89,676		—		89,676
Goodwill and other intangible assets		12,500		88,260		100,760
Other assets and due from related party		285,600		68,664		354,264
Total assets	$	12,979,608	$	2,094,237	$	15,073,845

Liabilities:
Debt obligations	$	11,100,429	$	956,272	$	12,056,701
Allowance for loss-sharing obligations		—		56,064		56,064
Other liabilities and due to related parties		278,726		132,370		411,096
Total liabilities	$	11,379,155	$	1,144,706	$	12,523,861


	December 31, 2020
Assets:
Cash and cash equivalents	$	172,568	$	166,960	$	339,528
Restricted cash		188,226		9,244		197,470
Loans and investments, net		5,285,868		—		5,285,868
Loans held-for-sale, net		—		986,919		986,919
Capitalized mortgage servicing rights, net		—		379,974		379,974
Securities held-to-maturity, net		—		95,524		95,524
Investments in equity affiliates		74,274		—		74,274
Goodwill and other intangible assets		12,500		92,951		105,451
Other assets		142,844		53,134		195,978
Total assets	$	5,876,280	$	1,784,706	$	7,660,986

Liabilities:
Debt obligations	$	4,872,626	$	952,038	$	5,824,664
Allowance for loss-sharing obligations		—		64,303		64,303
Other liabilities		203,554		85,780		289,334
Total liabilities	$	5,076,180	$	1,102,121	$	6,178,301


	Year Ended December 31,
	2021			2020			2019
Origination Data:
Structured Business
Bridge loans (1)	$	9,490,402		$	2,312,061		$	2,598,658
Mezzanine loans		175,225			45,122			127,784
Preferred equity investments		28,650			31,600			35,130
Other loans (2)		26,238			44,896			41,679
Total new loan originations	$	9,720,515		$	2,433,679		$	2,803,251

(1) Bridge loans in 2021 includes 103 SFR loans with a UPB of $389.2 million. During 2021, 2020 and 2019, we committed to fund SFR loans totaling $729.5 million, $261.5 million and $63.2 million, respectively.
(2) Other loans in 2021 and 2020 includes 1 and 9 SFR permanent loans with a UPB of $26.2 million and $37.2 million, respectively.

Loan payoffs / paydowns	$	2,516,771		$	1,208,071		$	1,748,387

Agency Business
Origination Volumes by Investor:
Fannie Mae	$	3,389,312		$	5,041,925		$	3,346,272
Private Label		1,436,853			382,191			401,216
Freddie Mac		1,016,142			960,508			728,317
FHA		430,320			327,345			123,095
SFR - Fixed Rate		136,931			—			—
CMBS/Conduit		—			—			211,325
Total	$	6,409,558		$	6,711,969		$	4,810,225
Total loan commitment volume	$	6,347,752		$	6,810,666		$	4,829,721

Loan Sales Data:
Agency Business
Fannie Mae	$	3,675,763		$	4,771,113		$	3,296,523
Freddie Mac		1,081,702			816,802			786,993
Private Label		985,094			727,154			—
FHA		480,275			272,659			106,271
SFR - Fixed Rate		192,335			—			—
CMBS/Conduit		—			—			211,325
Total	$	6,415,169		$	6,587,728		$	4,401,112
Sales margin (fee-based services as a % of loan sales)		1.92	%		1.44	%		1.49	%
MSR rate (MSR income as a % of loan commitments)		2.05	%		2.43	%		1.88	%


	December 31, 2021
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	UPB of Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio		(basis points)	(years)
Fannie Mae	$	19,127,397	53.5	8.0
Freddie Mac		4,943,905	27.1	9.3
Private Label		1,711,326	20.0	8.3
FHA		985,063	15.4	21.0
SFR - Fixed Rate		191,698	20.0	6.5
Total	$	26,959,389	44.9	8.8


	December 31, 2020
Fannie Mae	$	18,268,268	52.3	8.2
Freddie Mac		4,881,080	27.9	9.9
FHA		752,116	16.3	20.3
Private Label		726,992	20.0	8.7
Total	$	24,628,456	45.4	8.9

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details