XML 37 R27.htm IDEA: XBRL DOCUMENT v3.23.1
Other Assets (Tables)
 3 Months Ended
Mar. 31, 2023
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, 2023 and December 31, 2022:

(In Thousands)March 31, 2023December 31, 2022
Receivable for sale of unsettled residential whole loans$— $275,656 
REO121,215 130,605 
Goodwill61,076 61,076 
Intangibles, net (1)
10,900 12,200 
Capital contributions made to loan origination partners28,308 28,308 
Other interest-earning assets59,620 63,964 
Interest receivable72,823 68,704 
Other loan related receivables28,794 23,463 
Lease Right-of-Use Asset (2)
38,905 39,459 
Other63,488 62,786 
Total Other Assets$485,129 $766,221 

(1) Net of aggregate accumulated amortization of $17.1 million and $15.8 million as of March 31, 2023 and December 31, 2022, respectively.
(2) 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, 2023 and 2022:
Three Months Ended March 31,
(Dollars In Thousands)20232022
Balance at beginning of period$130,605 $156,223 
Adjustments to record at lower of cost or fair value
(1,052)(448)
Transfer from residential whole loans20,925 22,079 
Purchases and capital improvements, net137 353 
Disposals and other (1)
(29,400)(32,639)
Balance at end of period$121,215 $145,568 
Number of properties362 492 
(1)During the three months ended March 31, 2023 and 2022, the Company sold 93 and 135 REO properties for consideration of $33.8 million and $41.5 million, realizing net gains of approximately $5.0 million and $8.7 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 three months ended March 31, 2023 is summarized in the table below:

(Dollars in Thousands)Carrying Value at December 31, 2022Amortization
 Three Months Ended
March 31, 2023		Carrying Value at
March 31, 2023
Amortization Period (Years) (1)
Trademarks / Trade Names$3,400 $(100)$3,300 10
Customer Relationships6,000 (1,000)5,000 4
Internally Developed Software2,800 (200)2,600 5
Total Identified Intangibles$12,200 $(1,300)$10,900 
(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 Swaps at March 31, 2023, and December 31, 2022:
(In Thousands)March 31,
2023		December 31,
2022
Restricted Cash$60,499 $60,764 
Schedule of information about swaps
The following table presents information about the Company’s Swaps at March 31, 2023, and December 31, 2022:
 
 March 31, 2023December 31, 2022
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 6 months to 12 months100,000 1.49 4.87 — — — 
Over 12 months to 24 months1,000,010 1.09 4.87 550,010 1.01 4.30 
Over 24 months to 36 months125,000 2.70 4.87 775,000 1.75 4.30 
Over 36 months to 48 months1,300,000 1.42 4.87 450,000 1.12 4.30 
Over 48 months to 60 months125,000 2.71 4.87 1,075,000 1.86 4.30 
Over 60 months to 72 months— — — — — — 
Over 72 months to 84 months310,000 2.95 4.87 310,000 2.95 4.30 
Total Swaps$2,960,010 1.58 %4.87 %$3,160,010 1.69 %4.30 %

(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. This rate adjusts daily based on SOFR.
Schedule of Derivative Earnings
The following table present the components of Net (loss)/gain on derivatives used for risk management purposes for the years ended March 31, 2023 and 2022, which is presented in Other income in the consolidated statements of operations:

For the Three Months Ended March 31,
 (In Thousands)20232022
Income on swap variable receive leg$33,851 $408 
Expense on swap fixed pay leg(12,034)(5,936)
Unrealized mark-to-market (loss)/gain(40,747)80,753 
Net price alignment expense on margin collateral received(2,278)— 
Net gain on TBA short positions— 18,876 
Total Net (loss)/gain on derivatives used for risk management purposes
$(21,208)$94,101