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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Schedule of Principal Amounts, Carrying Values, and Estimated Fair Values of Financial Instruments | The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands):
| September 30, 2024 |  | December 31, 2023
| Principal / Notional Amount |  | Carrying Value |  | Estimated Fair Value |  | Principal / Notional Amount |  | Carrying Value |  | Estimated Fair Value
Financial assets: |  |  |  |  |  |  |  |  |  |  |
Loans and investments, net | $ | 11,565,538 |  |  | $ | 11,292,647 |  |  | $ | 11,236,801 |  |  | $ | 12,615,006 |  |  | $ | 12,377,806 |  |  | $ | 12,452,563 |
Loans held-for-sale, net | 326,910 |  |  | 326,141 |  |  | 334,884 |  |  | 552,325 |  |  | 551,707 |  |  | 566,451 |
Capitalized mortgage servicing rights, net | n/a |  | 376,403 |  |  | 499,630 |  |  | n/a |  | 391,254 |  |  | 510,472 |
Securities held-to-maturity, net | 230,190 |  |  | 156,027 |  |  | 145,000 |  |  | 230,495 |  |  | 155,279 |  |  | 129,390 |
Derivative financial instruments | 134,688 |  |  | 1,912 |  |  | 1,912 |  |  | 447,609 |  |  | 6,547 |  |  | 6,547 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |
Credit and repurchase facilities | $ | 3,264,033 |  |  | $ | 3,257,719 |  |  | $ | 3,247,500 |  |  | $ | 3,242,939 |  |  | $ | 3,237,827 |  |  | $ | 3,228,324 |
Securitized debt | 5,327,245 |  |  | 5,315,079 |  |  | 5,281,765 |  |  | 6,956,284 |  |  | 6,935,010 |  |  | 6,864,557 |
Senior unsecured notes | 1,255,000 |  |  | 1,246,908 |  |  | 1,161,256 |  |  | 1,345,000 |  |  | 1,333,968 |  |  | 1,214,331 |
Convertible senior unsecured notes | 287,500 |  |  | 285,170 |  |  | 292,712 |  |  | 287,500 |  |  | 283,118 |  |  | 301,156 |
Junior subordinated notes | 154,336 |  |  | 144,480 |  |  | 107,761 |  |  | 154,336 |  |  | 143,896 |  |  | 106,444 |
Mortgage notes payable - real estate owned | 35,350 |  |  | 35,350 |  |  | 35,132 |  |  | 44,339 |  |  | 44,339 |  |  | 44,103 |
Derivative financial instruments | 227,478 |  |  | 1,115 |  |  | 1,115 |  |  | 138,270 |  |  | 1,021 |  |  | 1,021 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of these financial assets and liabilities are determined using the following input levels at September 30, 2024 (in thousands):
| Carrying Value |  | Fair Value |  | Fair Value Measurements Using Fair Value Hierarchy
|  |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |
Derivative financial instruments | $ | 1,912 |  |  | $ | 1,912 |  |  | $ | — |  |  | $ | 1,536 |  |  | $ | 376 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Derivative financial instruments | $ | 1,115 |  |  | $ | 1,115 |  |  | $ | — |  |  | $ | 1,115 |  |  | $ | — |
Fair Value Measurements, Nonrecurring | The fair values of these financial and non-financial assets, if applicable, are determined using the following input levels at September 30, 2024 (in thousands):
| Net Carrying Value |  | Fair Value |  | Fair Value Measurements Using Fair Value Hierarchy
|  |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |
Impaired loans, net |  |  |  |  |  |  |  |  |
Loans held-for-investment (1) | $ | 451,114 |  |  | $ | 451,114 |  |  | $ | — |  |  | $ | — |  |  | $ | 451,114 |
Loans held-for-sale (2) | 14,054 |  |  | 14,054 |  |  | — |  |  | 14,054 |  |  | — |
| $ | 465,168 |  |  | $ | 465,168 |  |  | $ | — |  |  | $ | 14,054 |  |  | $ | 451,114 |
________________________ (1)We had an allowance for credit losses of $145.7 million related to twenty-seven impaired loans with a total carrying value, before loan loss reserves, of $596.9 million at September 30, 2024. The fair values of these impaired loans are based on the value of the underlying collateral. (2)We had unrealized impairment losses of $0.9 million related to four held-for-sale loans with a total carrying value, before unrealized impairment losses, of $14.9 million.
Fair Value Measurement Inputs and Valuation Techniques | Quantitative information about Level 3 fair value measurements at September 30, 2024 is as follows ($ in thousands):
| Fair Value |  | Valuation Techniques |  | Significant Unobservable Inputs
Financial assets: |  |  |  |  |  |  |  |  |
Impaired loans: |  |  |  |  |  |  | Weighted Average |  | Minimum / Maximum
Multifamily | $ | 389,350 |  |  | Discounted cash flows |  | Capitalization rate |  | 6.20% |  | 5.75% - 7.25%
Land | 49,999 |  |  | Discounted cash flows |  | Discount rate |  | 21.50% |  | 21.50%
|  |  |  |  | Revenue growth rate |  | 3.00% |  | 3.00%
Retail | 11,765 |  |  | Sales comparative |  | Price per acre |  | $165,128 |  | $165,128
Derivative financial instruments: |  |  |  |  |  |  |  |  |
Rate lock commitments | 376 |  |  | Discounted cash flows |  | W/A discount rate |  | 13.37% |  | 13.37%
Schedule of Roll Forward of Level 3 Derivative Instruments | A roll-forward of Level 3 derivative instruments is as follows (in thousands):
| Fair Value Measurements Using Significant Unobservable Inputs
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Derivative assets and liabilities, net |  |  |  |  |  |  |
Beginning balance | $ | 1,066 |  |  | $ | 757 |  |  | $ | 428 |  |  | $ | 354 |
Settlements | (13,460) |  |  | (13,369) |  |  | (36,902) |  |  | (46,123) |
Realized gains recorded in earnings | 12,394 |  |  | 12,612 |  |  | 36,474 |  |  | 45,769 |
Unrealized gains recorded in earnings | 376 |  |  | 962 |  |  | 376 |  |  | 962 |
Ending balance | $ | 376 |  |  | $ | 962 |  |  | $ | 376 |  |  | $ | 962 |
Schedule of Components of Fair and Other Relevant Information | The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows (in thousands):
September 30, 2024 |  | Notional/ Principal Amount |  | Fair Value of Servicing Rights |  | Interest Rate Movement Effect |  | Unrealized Impairment Loss |  | Total Fair Value Adjustment
Rate lock commitments |  | $ | 25,093 |  |  | $ | 376 |  |  | $ | 20 |  |  | $ | — |  |  | $ | 396 |
Forward sale commitments |  | 337,073 |  |  | — |  |  | (20) |  |  | — |  |  | (20) |
Loans held-for-sale, net (1) |  | 326,910 |  |  | 3,887 |  |  | — |  |  | (876) |  |  | 3,011 |
Total |  |  |  | $ | 4,263 |  |  | $ | — |  |  | $ | (876) |  |  | $ | 3,387 |
________________________ (1)Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.
Fair Value Measurements, Recurring and Nonrecurring | The fair value of these assets and liabilities are determined using the following input levels at September 30, 2024 (in thousands):
|  |  |  |  | Fair Value Measurements Using Fair Value Hierarchy
| Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |
Loans and investments, net | $ | 11,292,647 |  |  | $ | 11,236,801 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,236,801 |
Loans held-for-sale, net | 326,141 |  |  | 334,884 |  |  | — |  |  | 330,997 |  |  | 3,887 |
Capitalized mortgage servicing rights, net | 376,403 |  |  | 499,630 |  |  | — |  |  | — |  |  | 499,630 |
Securities held-to-maturity, net | 156,027 |  |  | 145,000 |  |  | — |  |  | — |  |  | 145,000 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Credit and repurchase facilities | $ | 3,257,719 |  |  | $ | 3,247,500 |  |  | $ | — |  |  | $ | 319,419 |  |  | $ | 2,928,081 |
Securitized debt | 5,315,079 |  |  | 5,281,765 |  |  | — |  |  | — |  |  | 5,281,765 |
Senior unsecured notes | 1,246,908 |  |  | 1,161,256 |  |  | 1,161,256 |  |  | — |  |  | — |
Convertible senior unsecured notes | 285,170 |  |  | 292,712 |  |  | — |  |  | 292,712 |  |  | — |
Junior subordinated notes | 144,480 |  |  | 107,761 |  |  | — |  |  | — |  |  | 107,761 |
Mortgage notes payable - real estate owned | 35,350 |  |  | 35,132 |  |  | — |  |  | — |  |  | 35,132 |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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