v3.20.4

Investments in Unconsolidated Entities (Tables) | 12 Months Ended
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Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Schedule of Investments in Unconsolidated Entities | The following table provides details about the Company's investments in unconsolidated entities as of December 31, 2020 and 2019:
|  |  |  | Percentage Ownership of Unconsolidated Entity
Investment in Unconsolidated Entity |  | Form of Investment |  | December 31, 2020 |  | December 31, 2019
Longbridge Financial, LLC(1) |  | Preferred shares |  | 49.7% |  | 49.7%
LendSure Mortgage Corp.(1)(2) |  | Common shares |  | 49.9% |  | 49.9%
Elizon TCG SBC 2017-1(1) |  | Membership Interest |  | 36.0% |  | —%
Jepson Holdings Limited(1) |  | Membership Interest |  | 30.1% |  | 30.1%
Elizon DB 2015-1 LLC(1)(3)(4) |  | Membership Interest |  | 8.9% |  | 3.5%
Elizon AFG 2018-1 LLC(1)(3)(5) |  | Membership Interest |  | —% |  | 13.4%
Other(6)(7) |  | Various |  | 7.4%–56.3% |  | 7.7%–51.0%
(1)See Note 13 for additional details on the Company's related party transactions. (2)Excludes investment in warrants convertible into non-voting common shares; including such warrants the Company's additional non-voting stake in the entity was 15.0% as of December 31, 2020. See Note 13 Related Party Transactions—Transactions Involving Certain Loan Originators for additional information. (3)The Company has evaluated this entity and determined that it meets the definition of a VIE. The Company evaluated its interest in the VIE and determined that the Company does not have the power to direct the activities of the VIE and does not have control of the underlying assets, where applicable. As a result, the Company determined that it is not the primary beneficiary of this VIE and therefore has not consolidated the VIE. (4)As discussed in Note 13 Related Party Transactions—Participation in Multi-Borrower Financing Facilities, the Company and the Affiliated Entities (as defined in Note 13) each consolidate their segregated silos of the Joint Entity (as defined in Note 13). The Company's effective percentage ownership before the effects of consolidation of both its and the Affiliated Entities' respective segregated silos of the Joint Entity, was 58.2% and 70.4% as of December 31, 2020 and 2019, respectively. (5)As discussed in Note 13 Related Party Transactions—Participation in Multi-Borrower Financing Facilities, the Company and the Affiliated Entities each consolidate their segregated silos of the Joint Entity. The Company's effective percentage ownership before the effects of consolidation of both its and the Affiliated Entities' respective segregated silos of the Joint Entity, was 48.7% as of December 31, 2019. (6)Includes interest in Consumer Risk Retention Vehicle, as defined in Note 10—Participation in Multi-Seller Consumer Loan Securitization. The Company has evaluated this entity and determined that it does not meet the definition of a VIE. The Company evaluated its interest in the entity under the voting interest model outlined in ASC 810, and has determined that the Company does not control this entity. As a result, the Company has not consolidated the entity. See Note 10 for additional details on the Company's securitization transactions. (7)Includes interest in warehouse facilities; see Note 13—Participation in CLO Transactions, for additional details. The following table provides a summary of the combined financial position of the unconsolidated entities as of December 31, 2020 and 2019, in which the Company has an investment:
|  | December 31, 2020 |  | December 31, 2019
|  | (In thousands)
Assets |  |  |  |
Investments in securities, loans, MSRs, and REO(1) |  | $ | 424,475 |  |  | $ | 560,949 |
Other assets |  | 117,746 |  |  | 65,580 |
Total assets |  | $ | 542,221 |  |  | $ | 626,529 |
Liabilities |  |  |  |
Borrowings |  | $ | 215,792 |  |  | $ | 387,910 |
Other liabilities |  | 30,801 |  |  | 28,134 |
Total liabilities |  | 246,593 |  |  | 416,044 |
Equity |  | 295,628 |  |  | 210,485 |
Total liabilities and equity |  | $ | 542,221 |  |  | $ | 626,529 |
(1)Includes investments carried as the lower of cost or fair value as well as investments where the unconsolidated entity has elected the FVO. The following table provides a summary of the combined results of operations of the unconsolidated entities as of December 31, 2020 and 2019, in which the Company has an investment:
|  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
|  |  |  | (In thousands)
Net Interest Income |  |  |  |
Interest income |  | $ | 10,935 |  |  | $ | 30,587 |
Interest expense |  | (9,243) |  |  | (13,316) |
Total net interest income |  | 1,692 |  |  | 17,271 |
Other Income (Loss) |  |  |  |
Realized and unrealized gains (losses) on securities, loans, MSRs, and REO, net |  | 44,362 |  |  | 40,901 |
Other, net |  | 44,031 |  |  | 31,848 |
Total other income (loss) |  | 88,393 |  |  | 72,749 |
Total expenses |  | 65,492 |  |  | 58,018 |
Net income (loss) before income tax expense |  | 24,593 |  |  | 32,002 |
Income tax expense (benefit) |  | 776 |  |  | 979 |
Net Income (Loss) |  | $ | 23,817 |  |  | $ | 31,023 |

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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