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Other Assets (Tables) | 9 Months Ended
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Sep. 30, 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 September 30, 2022 and December 31, 2021:
(In Thousands) |  | September 30, 2022 |  | December 31, 2021
REO (1) |  | $ | 132,663 |  |  | $ | 156,223 |
Goodwill |  | 61,076 |  |  | 61,076 |
Intangibles, net (2) |  | 13,500 |  |  | 21,400 |
Capital contributions made to loan origination partners |  | 30,358 |  |  | 71,673 |
Other interest-earning assets |  | 74,342 |  |  | 57,522 |
Interest receivable |  | 66,080 |  |  | 50,191 |
Other loan related receivables |  | 19,697 |  |  | 34,191 |
Lease right-of-use asset (3) |  | 38,168 |  |  | 39,370 |
Other |  | 61,110 |  |  | 73,910 |
Total Other Assets |  | $ | 496,994 |  |  | $ | 565,556 |
(1) Includes $11.3 million of REO that was held-for-investment at December 31, 2021. (2) Net of aggregate accumulated amortization of $14.5 million and $6.6 million as of September 30, 2022 and December 31, 2021, respectively. (3) 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 and nine months ended September 30, 2022 and 2021:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars In Thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Balance at beginning of period |  | $ | 135,847 |  |  | $ | 204,762 |  |  | $ | 156,223 |  |  | $ | 249,699 |
Adjustments to record at lower of cost or fair value |  | (1,655) |  |  | (2,448) |  |  | (2,426) |  |  | (3,390) |
Transfer from residential whole loans (1) |  | 16,658 |  |  | 11,673 |  |  | 61,875 |  |  | 50,043 |
Purchases and capital improvements, net |  | 215 |  |  | 1,584 |  |  | 845 |  |  | 2,207 |
Disposals and other (2) |  | (18,402) |  |  | (36,769) |  |  | (83,854) |  |  | (119,757) |
Balance at end of period |  | $ | 132,663 |  |  | $ | 178,802 |  |  | $ | 132,663 |  |  | $ | 178,802 |
Number of properties |  | 412 |  |  | 674 |  |  | 412 |  |  | 674 |
(1)Includes a net loss recorded on transfer of approximately $300,000 for the three months ended September 30, 2022 and a net gain recorded on transfer of approximately $700,000 for the three months ended September 30, 2021; and a net loss recorded on transfer of approximately $300,000 for the nine months ended September 30, 2022 and a net loss recorded on transfer of approximately $400,000 for the nine months ended September 30, 2021. (2)During the three and nine months ended September 30, 2022, the Company sold 74 and 333 REO properties for consideration of $23.8 million and $105.0 million, realizing net gains of approximately $5.3 million and $21.3 million, respectively. During the three and nine months ended September 30, 2021, the Company sold 151 and 470 REO properties for consideration of $45.4 million and $134.0 million, realizing net gains of approximately $7.3 million and $13.4 million, respectively. These amounts are included in Other Income, net on the Company’s consolidated statements of operations.
Schedule of finite-lived intangible assets amortization expense | The amortization period for each of the finite lived intangible assets and the activity for the nine months ended September 30, 2022 is summarized in the table below:
(Dollars in Thousands) |  | Carrying Value at December 31, 2021 |  | Amortization Nine Months Ended September 30, 2022 |  | Carrying Value at September 30, 2022 |  | Amortization Period (Years) (1)
Trademarks / Trade Names |  | $ | 3,800 |  |  | $ | (300) |  |  | $ | 3,500 |  |  | 10
Customer Relationships |  | 12,000 |  |  | (5,000) |  |  | 7,000 |  |  | 4
Internally Developed Software |  | 3,600 |  |  | (600) |  |  | 3,000 |  |  | 5
Non-Compete Agreements |  | 2,000 |  |  | (2,000) |  |  | — |  |  | 1
Total Identified Intangibles |  | $ | 21,400 |  |  | $ | (7,900) |  |  | $ | 13,500 |  |  |
(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 September 30, 2022, and December 31, 2021:
(In Thousands) |  | September 30, 2022 |  | December 31, 2021 |  |
Restricted Cash |  | $ | 65,392 |  |  | $ | 14,446 |  |  |
Schedule of information about swaps | The following table presents information about the Company’s Swaps at September 30, 2022, and December 31, 2021:
|  | September 30, 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 |  |  | 2.98 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Over 24 months to 36 months |  | 1,225,010 |  |  | 1.44 |  |  | 2.98 |  |  | 450,010 |  |  | 0.90 |  |  | 0.05 |  |  |  |  |
Over 36 months to 48 months |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Over 48 months to 60 months |  | 1,525,000 |  |  | 1.64 |  |  | 2.98 |  |  | 450,000 |  |  | 1.12 |  |  | 0.05 |  |  |  |  |
Over 60 months to 72 months |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Over 72 months to 84 months |  | 310,000 |  |  | 2.95 |  |  | 2.98 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Total Swaps |  | $ | 3,160,010 |  |  | 1.69 | % |  | 2.98 | % |  | $ | 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 daily based on SOFR.
Schedule of open short positions in TBA securities | The table below summarizes open short positions in TBA securities as of December 31, 2021, which had an aggregate value of ($1.3) million and were included in Other assets/liabilities on the Company’s consolidated balance sheets.
|  |  |  | December 31, 2021
(Dollars in Thousands) |  |  |  |  |  | Notional Amount |  | Settlement Date
TBA Security |  |  |  |  |  |  |  |
FNCL 2.5 |  |  |  |  |  | $ | 180,000 |  |  | January 13, 2022
FNCL 2 |  |  |  |  |  | $ | 130,000 |  |  | January 13, 2022

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