As discussed in Note 2, the Company obtains possession of REO as a result of foreclosures on the associated mortgage loans. The following tables detail activity in the Company's carrying value of REO for the years ended December 31, 2020 and 2019:


	Year Ended
	December 31, 2020			December 31, 2019
	Number of Properties	Carrying Value		Number of Properties	Carrying Value
		(In thousands)			(In thousands)
Beginning Balance (December 31, 2019 and January 1, 2019, respectively)	15	$	30,584	20	$	30,778
Transfers from mortgage loans	10	3,384		8	22,577
Capital expenditures and other adjustments to cost		191			240
Adjustments to record at the lower of cost or fair value		(1,053)			(1,002)
Disposals	(12)	(9,508)		(13)	(22,009)
Ending Balance (December 31, 2020 and 2019, respectively)	13	$	23,598	15	$	30,584

During the year ended December 31, 2020, the Company sold twelve REO properties, realizing a net gain (loss) of approximately $15 thousand. During the year ended December 31, 2019, the Company sold thirteen REO properties, realizing a net gain (loss) of approximately $2.3 million. Such realized gains (losses) are included in Realized gains (losses) on real estate owned, net, on the Company's Consolidated Statement of Operations. As of December 31, 2020 and 2019 all of the Company's REO had been obtained as a result of obtaining physical possession through foreclosure. As of December 31, 2020 and 2019, the Company had REO measured at fair value on a non-recurring basis of $22.4 million and $19.4 million, respectively.