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Other Assets (Tables) | 3 Months Ended
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Mar. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Schedule of other assets | The following table presents the components of the Company’s Other assets at March 31, 2022 and December 31, 2021:
(In Thousands) |  | March 31, 2022 |  | December 31, 2021
Treasury Bills (1) |  | $ | 299,998 |  |  | $ | — |
REO (2) |  | 145,568 |  |  | 156,223 |
Goodwill |  | 61,076 |  |  | 61,076 |
Intangibles, net (3) |  | 18,100 |  |  | 21,400 |
Capital contributions made to loan origination partners |  | 70,783 |  |  | 71,673 |
Other interest-earning assets |  | 53,636 |  |  | 57,522 |
Interest receivable |  | 57,090 |  |  | 50,191 |
Other loan related receivables |  | 49,612 |  |  | 34,191 |
Lease right-of-use asset (4) |  | 39,243 |  |  | 39,370 |
Other |  | 62,237 |  |  | 73,910 |
Total Other Assets |  | $ | 857,343 |  |  | $ | 565,556 |
(1) Held on a short-term basis in connection with managing the Company’s REIT compliance. Classified as Level 1 in the fair value hierarchy. (2) Includes $6.5 million and $11.3 million of REO that is held-for-investment at March 31, 2022 and December 31, 2021, respectively. (3) Net of aggregate accumulated amortization of $9.9 million and $6.6 million as of March 31, 2022 and December 31, 2021, respectively. (4) An estimated incremental borrowing rate of 7.5% was used in connection with the Company’s primary operating lease (see Notes 2 and 9).
Schedule of activity for real estate owned | The following table presents the activity in the Company’s REO for the three months ended March 31, 2022 and 2021:
|  | Three Months Ended March 31, |  |
(Dollars In Thousands) |  | 2022 |  | 2021 |  |  |  |
Balance at beginning of period |  | $ | 156,223 |  |  | $ | 249,699 |  |  |  |  |
Adjustments to record at lower of cost or fair value |  | (448) |  |  | (874) |  |  |  |  |
Transfer from residential whole loans (1) |  | 22,079 |  |  | 20,068 |  |  |  |  |
Purchases and capital improvements, net |  | 353 |  |  | 217 |  |  |  |  |
Disposals and other (2) |  | (32,639) |  |  | (48,717) |  |  |  |  |
Balance at end of period |  | $ | 145,568 |  |  | $ | 220,393 |  |  |  |  |
Number of properties |  | 492 |  |  | 835 |  |  |  |  |
(1)Includes a net loss recorded on transfer of approximately $100,000 and a net gain recorded on transfer of approximately $1.1 million for the three months ended March 31, 2022 and 2021, respectively. (2)During the three months ended March 31, 2022 and 2021, the Company sold 135 and 177 REO properties for consideration of $41.5 million and $50.6 million, realizing net gains of approximately $8.7 million and $2.2 million, respectively. These amounts are included in Other Income, net on the Company’s consolidated statements of operations.
Finite-lived intangible assets amortization expense | The amortization period for each of the finite lived intangible assets and the activity for the three months ended March 31, 2022 is summarized in the table below:
(Dollars in Thousands) |  | Carrying Value at December 31, 2021 |  | Amortization Three Months Ended March 31, 2022 |  | Carrying Value at March 31, 2022 |  | Amortization Period (Years) (1)
Trademarks / Trade Names |  | $ | 3,800 |  |  | $ | (100) |  |  | $ | 3,700 |  |  | 10
Customer Relationships |  | 12,000 |  |  | (2,000) |  |  | 10,000 |  |  | 4
Internally Developed Software |  | 3,600 |  |  | (200) |  |  | 3,400 |  |  | 5
Non-Compete Agreements |  | 2,000 |  |  | (1,000) |  |  | 1,000 |  |  | 1
Total Identified Intangibles |  | $ | 21,400 |  |  | $ | (3,300) |  |  | $ | 18,100 |  |  |
(1) Amortization is calculated on a straight-line basis over the amortization period, except for Customer Relationships, where amortization is calculated based on expected levels of customer attrition.
Schedule of assets pledged as collateral against derivative contracts | The following table presents the assets pledged as collateral against the Company’s Swap contracts at March 31, 2022 and December 31, 2021:
(In Thousands) |  | March 31, 2022 |  | December 31, 2021 |  |
Restricted Cash |  | $ | 54,804 |  |  | $ | 14,446 |  |  |
Schedule of information about swaps | The following table presents information about the Company’s Swaps at March 31, 2022 and December 31, 2021:
|  | March 31, 2022 |  | December 31, 2021 |  |  |  |
Maturity (1) |  | Notional Amount |  | Weighted Average Fixed-Pay Interest Rate |  | Weighted Average Variable Interest Rate (2) |  | Notional Amount |  | Weighted Average Fixed-Pay Interest Rate |  | Weighted Average Variable Interest Rate (2) |  |  |  |
(Dollars in Thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Within 30 days to 12 months |  | $ | — |  |  | — | % |  | — | % |  | $ | — |  |  | — | % |  | — | % |  |  |  |
Over 12 months to 24 months |  | 100,000 |  |  | 1.49 |  |  | 0.29 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Over 24 months to 36 months |  | 1,000,010 |  |  | 1.09 |  |  | 0.29 |  |  | 450,010 |  |  | 0.90 |  |  | 0.05 |  |  |  |  |
Over 36 months to 48 months |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Over 48 months to 60 months |  | 1,300,000 |  |  | 1.42 |  |  | 0.29 |  |  | 450,000 |  |  | 1.12 |  |  | 0.05 |  |  |  |  |
Total Swaps |  | $ | 2,400,010 |  |  | 1.29 | % |  | 0.29 | % |  | $ | 900,010 |  |  | 1.01 | % |  | 0.05 | % |  |  |  |
(1)Each maturity category reflects contractual amortization and/or maturity of notional amounts. (2)Reflects the benchmark variable rate due from the counterparty at the date presented, which rate adjusts annually based on SOFR.
Summary of open short positions in TBA securities | The table below summarizes open short positions in TBA securities as of March 31, 2022 and December 31, 2021, which had an aggregate value of $5.8 million and $(1.3) million, respectively, and were included in Other assets/liabilities on the Company’s consolidated balance sheets.
|  | March 31, 2022 |  | December 31, 2021
(Dollars in Thousands) |  | Notional Amount |  | Settlement Date |  | Notional Amount |  | Settlement Date
TBA Security |  |  |  |  |  |  |  |
FNCL 2.5 |  | $ | 180,000 |  |  | April 13, 2022 |  | $ | 180,000 |  |  | January 13, 2022
FNCL 2 |  | $ | 130,000 |  |  | April 13, 2022 |  | $ | 130,000 |  |  | January 13, 2022

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