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Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At December 31, 2023, the Company’s reportable segments include (i) mortgage-related assets and (ii) Lima One. The Corporate column in the table below primarily consists of corporate cash and related interest income, investments in loan originators and related economics, general and administrative expenses not directly attributable to Lima One, interest expense on unsecured convertible senior notes (see Note 6), securitization issuance costs, and preferred stock dividends.
The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:

(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Year Ended December 31, 2023
Interest Income$364,081 $228,825 $12,691 $605,597 
Interest Expense249,458 164,059 15,601 429,118 
Net Interest Income/(Expense)$114,623 $64,766 $(2,910)$176,479 
Reversal of Provision/(Provision) for Credit Losses on Residential Whole Loans8,539 314 — 8,853 
Net Interest Income/(Expense) after Reversal of Provision/(Provision) for Credit Losses$123,162 $65,080 $(2,910)$185,332 
Net gain on residential whole loans measured at fair value through earnings$69,486 $20,364 $— $89,850 
Impairment and other net gain/(loss) on securities and other portfolio investments8,073 — (1,848)6,225 
Net gain on real estate owned9,274 118 — 9,392 
Net gain on derivatives used for risk management purposes839 2,922 — 3,761 
Net loss on securitized debt measured at fair value through earnings(66,969)(32,620)— (99,589)
Lima One - origination, servicing and other fee income— 43,384 — 43,384 
Net realized loss on residential whole loans held at carrying value(1,240)— — (1,240)
Other, net7,960 2,284 1,087 11,331 
Total Other Income/(Loss), net$27,423 $36,452 $(761)$63,114 
Compensation and benefits$— $44,827 $40,972 $85,799 
General and administrative expenses214 17,537 26,396 44,147 
Loan servicing, financing, and other related costs20,100 1,515 12,521 34,136 
Amortization of intangible assets— 4,200 — 4,200 
Net Income/(Loss)$130,271 $33,453 $(83,560)$80,164 
Less Preferred Stock Dividend Requirement$— $— $32,875 $32,875 
Net Income/(Loss) Available to Common Stock and Participating Securities$130,271 $33,453 $(116,435)$47,289 

    
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Year Ended December 31, 2022
Interest Income$364,761 $113,134 $4,524 $482,419 
Interest Expense176,725 66,358 15,760 258,843 
Net Interest Income/(Expense)$188,036 $46,776 $(11,236)$223,576 
Reversal of Provision/(Provision) for Credit Losses on Residential Whole Loans$2,842 $(196)$— $2,646 
Provision for Credit Losses on Other Assets
— — (28,579)(28,579)
Net Interest Income/(Expense) after Reversal of Provision/(Provision) for Credit Losses$190,878 $46,580 $(39,815)$197,643 
Net gain/(loss) on residential whole loans measured at fair value through earnings$(730,028)$(136,734)$— $(866,762)
Impairment and other net loss on securities and other portfolio investments(3,146)— (21,921)(25,067)
Net gain on real estate owned25,348 31 — 25,379 
Net gain/(loss) on derivatives used for risk management purposes217,961 37,218 — 255,179 
Net gain on securitized debt measured at fair value through earnings231,176 59,463 — 290,639 
Lima One - origination, servicing and other fee income— 46,745 — 46,745 
Other, net4,282 537 3,804 8,623 
Total Other Income/(Loss), net$(254,407)$7,260 $(18,117)$(265,264)
Compensation and benefits$— $39,241 $37,487 $76,728 
General and administrative expenses— 13,944 21,194 35,138 
Loan servicing, financing, and other related costs25,384 1,120 16,390 42,894 
Amortization of intangible assets— 9,200 — 9,200 
Net Income/(Loss)$(88,913)$(9,665)$(133,003)$(231,581)
Less Preferred Stock Dividend Requirement$— $— $32,875 $32,875 
Net Income/(Loss) Available to Common Stock and Participating Securities$(88,913)$(9,665)$(165,878)$(264,456)
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Year Ended December 31, 2021
Interest Income$347,863 $14,249 $190 $362,302 
Interest Expense99,905 4,691 15,789 120,385 
Net Interest Income/(Expense)$247,958 $9,558 $(15,599)$241,917 
Reversal of Provision/(Provision) for Credit Losses on Residential Whole Loans44,981 (118)— 44,863 
Net Interest Income/(Expense) after Reversal of Provision/(Provision) for Credit Losses$292,939 $9,440 $(15,599)$286,780 
Net gain/(loss) on residential whole loans measured at fair value through earnings$(2,719)$18,962 $— $16,243 
Impairment and other net gain on securities and other portfolio investments1,607 — 72,889 74,496 
Net gain on real estate owned22,760 78 — 22,838 
Net gain/(loss) on derivatives used for risk management purposes1,457 (31)— 1,426 
Net gain on securitized debt measured at fair value through earnings14,594 433 — 15,027 
Lima One - origination, servicing and other fee income— 22,600 — 22,600 
Other, net759 128 8,760 9,647 
Total Other Income/(Loss), net
$38,458 $42,170 $81,649 $162,277 
Compensation and benefits$— $18,130 $35,687 $53,817 
General and administrative expenses— 6,010 22,893 28,903 
Loan servicing, financing, and other related costs25,250 436 5,181 30,867 
Amortization of intangible assets— 6,600 — 6,600 
Net Income/(Loss)
$306,147 $20,434 $2,289 $328,870 
Less Preferred Stock Dividend Requirement$— $— $32,875 $32,875 
Net Income/(Loss) Available to Common Stock and Participating Securities$306,147 $20,434 $(30,586)$295,995 

(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
December 31, 2023
Total Assets$6,370,237 $4,000,932 $401,521 $10,772,690 
December 31, 2022
Total Assets$6,065,557 $2,618,695 $428,153 $9,112,405 

Lima One Segment

On July 1, 2021, the Company completed the acquisition from affiliates of Magnetar Capital of their ownership interests in Lima One Holdings, LLC, the parent company of Lima One Capital, LLC (collectively, “Lima One”), a leading originator and servicer of business purpose loans. In connection with this transaction, the Company also acquired from certain members of management of Lima One their ownership interests in Lima One Holdings, LLC. With the completion of these transactions (collectively, “the transaction”), the Company acquired the remaining approximately 57% of the common equity interests of Lima One that it did not previously own, for cash consideration of $57.3 million and $4.7 million of restricted stock unit awards issued to certain members of the Lima One management team. As a result of these transactions, the Company gained control of 100% of the ownership interests in Lima One and was required to consolidate its financial results from that date.

The transaction was accounted for under the purchase method of accounting. Under purchase accounting, the purchase
consideration to acquire Lima One is defined as the cash paid to acquire the approximately 57% of the common equity interests not previously owned and the estimated fair value of the previously owned approximately 43% common equity interest. Further, under purchase accounting, the Company was required to revalue the previously owned common equity interest to fair value. At the time of the revaluation, the previously owned common equity interest had a carrying value of $5.6 million (net of a $21.0 million impairment charge that was recorded in the first quarter of 2020). Consequently, the revaluation resulted in the Company recording a gain of $38.9 million that is presented in Other Income/(Loss), net in the Company’s consolidated statement of operations for the year ended December 31, 2021. Accordingly, under the purchase method of accounting, the purchase consideration allocated was $101.7 million. The restricted stock awards issued are not included in the purchase consideration as it was determined that they should be accounted for as compensation expense for post-combination services.

Additionally, concurrent with the closing of the transaction, the Company injected additional capital that facilitated the repayment by Lima One of $47.4 million of outstanding preferred equity interests, of which $22.0 million were held by the Company prior to closing. As the Company had previously recorded an impairment write-down on its investment in Lima One’s preferred equity that was repaid in connection with the transaction, the Company recorded a gain of $5.0 million to reflect the reversal of this impairment charge. This gain was recorded in Other Income/(Loss), net in the consolidated statements of operations for the year ended December 31, 2021. Further, the Company paid a total of $428,000 of acquisition related expenses, which were recorded in Operating and Other Expenses in the consolidated statements of operations for the year ended December 31, 2021.

The Company performed an allocation of the purchase consideration and recorded the underlying assets acquired (including certain identified intangible assets) and liabilities assumed based on their estimated fair values using the information available at the acquisition date. The excess of the purchase consideration over the net assets acquired of $61.1 million was allocated to goodwill. The goodwill is attributed to further access and expansion into business purpose loan markets as well as access to an experienced management team and workforce that are expected to continue to provide services to the business. In addition, the Company identified and recorded finite-lived intangible assets totaling $28.0 million (see Note 5).

The Lima One segment includes the stand-alone mortgage origination and servicing business of Lima One, including related goodwill, intangible assets, and direct expenses, plus Lima One-related residential whole loans and REO (defined as both those owned by Lima One on the acquisition date and those originated by Lima One since the acquisition date) and the economics related thereto (including any related taxes and the economics of associated financing and hedging instruments), all as recorded under GAAP. Associated financing economics are equal to the results of direct financings of Lima One-related residential whole loans and REO plus allocations of the results of financings which include Lima One related residential whole loans and REO as part of their collateral, based on the relative carrying values of the financed assets. Associated hedging economics are equal to allocations of the Company’s overall hedging results based on the relative estimated duration of each asset class hedged and the relative fair values of assets within each asset class.

Mortgage-Related Assets Segment

This segment is comprised of the remainder of the Company’s investments (including any related taxes and the economics of associated financing and hedging instruments).