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Real Estate Securities (Tables) | 12 Months Ended
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Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Schedule of Fair Values of Real Estate Securities by Collateral Type and Entity | The following table presents the fair values of our real estate securities by type at December 31, 2023 and 2022. Table 9.1 – Fair Values of Real Estate Securities by Type
(In Thousands) |  | December 31, 2023 |  | December 31, 2022
Trading |  | $ | 40,424 |  |  | $ | 108,329 |
Available-for-sale |  | 87,373 |  |  | 132,146 |
Total Real Estate Securities |  | $ | 127,797 |  |  | $ | 240,475 |
Schedule of Trading Securities by Collateral Type | The following table presents the fair value of trading securities by position and collateral type at December 31, 2023 and 2022. Table 9.2 – Fair Value of Trading Securities by Position
(In Thousands) |  | December 31, 2023 |  | December 31, 2022
Senior |  |  |  |
Interest-only securities (1) |  | $ | 36,109 |  |  | $ | 28,867 |
Total Senior |  | 36,109 |  |  | 28,867 |
Subordinate |  |  |  |
RPL securities |  | — |  |  | 29,002 |
Multifamily securities |  | 2,641 |  |  | 5,027 |
Other third-party residential securities |  | 1,674 |  |  | 45,433 |
Total Subordinate |  | 4,315 |  |  | 79,462 |
Total Trading Securities |  | $ | 40,424 |  |  | $ | 108,329 |
(1)Includes $28 million and $26 million of Sequoia certificated mortgage servicing rights at December 31, 2023 and 2022, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at December 31, 2023 and 2022. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position
(In Thousands) |  | December 31, 2023 |  | December 31, 2022
Senior (1) |  | $ | — |  |  | $ | — |
Subordinate |  | 16,567 |  |  | 215,592 |
Total Trading Securities |  | $ | 16,567 |  |  | $ | 215,592 |
(1)Our senior trading securities are comprised of interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the years ended December 31, 2023 and 2022. Table 9.4 – Trading Securities Activity
|  | Year Ended December 31,
(In Thousands) |  | 2023 |  | 2022
Fair value of securities acquired |  | $ | 7,883 |  |  | $ | 5,006 |
Fair value of securities sold |  | 88,073 |  |  | 31,729 |
Net market valuation gains (losses) recorded (1) |  | 12,694 |  |  | (34,222) |
(1)Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income (loss).
Schedule of Available for Sale Securities by Collateral Type | he following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at December 31, 2023 and 2022. Table 9.5 – Fair Value of Available-for-Sale Securities by Position
(In Thousands) |  | December 31, 2023 |  | December 31, 2022
Subordinate |  |  |  |
Sequoia securities |  | $ | 78,942 |  |  | $ | 74,367 |
Multifamily securities |  | 4,460 |  |  | 7,647 |
Other third-party residential securities |  | 3,971 |  |  | 50,132 |
Total Subordinate |  | 87,373 |  |  | 132,146 |
Total AFS Securities |  | $ | 87,373 |  |  | $ | 132,146 |
The following table provides the activity of available-for-sale securities during the years ended December 31, 2023 and 2022. Table 9.6 – Available-for-Sale Securities Activity
|  | Year Ended December 31,
(In Thousands) |  | 2023 |  | 2022
Fair value of securities acquired |  | $ | 1,979 |  |  | $ | 10,000 |
Fair value of securities sold |  | 55,842 |  |  | — |
Principal balance of securities called |  | — |  |  | 20,267 |
Net unrealized gains (losses) on AFS securities (1) |  | 6,230 |  |  | (64,704) |
(1)Net unrealized gains (losses) on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
Schedule of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities | The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2023 and 2022. Table 9.7 – Carrying Value of AFS Securities
(In Thousands) |  |  |  | December 31, 2023 |  | December 31, 2022
Principal balance |  |  |  | $ | 149,956 |  |  | $ | 221,933 |
Credit reserve |  |  |  | (23,436) |  |  | (28,739) |
Unamortized discount, net |  |  |  | (46,885) |  |  | (61,650) |
Amortized cost |  |  |  | 79,635 |  |  | 131,544 |
Gross unrealized gains |  |  |  | 16,973 |  |  | 16,269 |
Gross unrealized losses |  |  |  | (6,753) |  |  | (13,127) |
CECL allowance |  |  |  | (2,482) |  |  | (2,540) |
Carrying Value |  |  |  | $ | 87,373 |  |  | $ | 132,146 |
Schedule of Changes in Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities | The following table presents the changes for the years ended December 31, 2023 and 2022, in unamortized discount and designated credit reserves on residential AFS securities. Table 9.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities
|  | Year Ended December 31, 2023 |  | Year Ended December 31, 2022
|  | Credit Reserve |  | Unamortized Discount, Net |  | Credit Reserve |  | Unamortized Discount, Net
(In Thousands) |  |  |  |
Beginning balance |  | $ | 28,739 |  |  | $ | 61,650 |  |  | $ | 27,555 |  |  | $ | 76,023 |
Amortization of net discount |  | — |  |  | (1,170) |  |  | — |  |  | (11,153) |
Realized credit recoveries (losses), net |  | 158 |  |  | — |  |  | 471 |  |  | — |
Acquisitions |  | 1,106 |  |  | 754 |  |  | — |  |  | — |
Sales, calls, other |  | (5,331) |  |  | (15,585) |  |  | (842) |  |  | (1,665) |
Transfers to (release of) credit reserves, net |  | (1,236) |  |  | 1,236 |  |  | 1,555 |  |  | (1,555) |
Ending Balance |  | $ | 23,436 |  |  | $ | 46,885 |  |  | $ | 28,739 |  |  | $ | 61,650 |
Schedule of Carrying Value of Available for Sale Securities in Unrealized Loss Position | The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at December 31, 2023 and 2022. Table 9.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods
|  | Less Than 12 Consecutive Months |  | 12 Consecutive Months or Longer
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
(In Thousands) |  |  |  |
December 31, 2023 |  | $ | 2,374 |  |  | $ | (128) |  |  | $ | 27,299 |  |  | $ | (6,625) |
December 31, 2022 |  | 72,679 |  |  | (12,940) |  |  | 1,414 |  |  | (186) |
Schedule of Significant Valuation Assumptions For Available For Sale Securities Credit Loss | The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at December 31, 2023. Table 9.10 – Significant Credit Quality Indicators
December 31, 2023 |  |  |  | Subordinate Securities
Default rate |  |  |  | 0.9%
Loss severity |  |  |  | 20%
Schedule of Activity of Allowance for Credit Losses for Available-for-sale Securities | The following table details the activity related to the allowance for credit losses for AFS securities held at December 31, 2023. Table 9.11 – Rollforward of Allowance for Credit Losses
|  | Year Ended |  | Year Ended
(In Thousands) |  | December 31, 2023 |  | December 31, 2022
Beginning balance allowance for credit losses |  | $ | 2,540 |  |  | $ | — |
Additions to allowance for credit losses on securities for which credit losses were not previously recorded |  | 300 |  |  | 1,726 |
Additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period |  | (50) |  |  | 814 |
Allowance on purchased financial assets with credit deterioration |  | — |  |  | — |
Reduction to allowance for securities sold during the period |  | (308) |  |  | — |
Reduction to allowance for securities we intend to sell or more likely than not will be required to sell |  | — |  |  | — |
Write-offs charged against allowance |  | — |  |  | — |
Recoveries of amounts previously written off |  | — |  |  | — |
Ending balance of allowance for credit losses |  | $ | 2,482 |  |  | $ | 2,540 |
Schedule of Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities | The following table presents the gross realized gains and losses on sales and calls of AFS securities for the years ended December 31, 2023, 2022, and 2021. Table 9.12 – Gross Realized Gains and Losses on AFS Securities
|  | Years Ended December 31,
(In Thousands) |  | 2023 |  | 2022 |  | 2021
Gross realized gains - sales |  | $ | 3,917 |  |  | $ | — |  |  | $ | 1,540 |
Gross realized gains - calls |  | — |  |  | 2,508 |  |  | 15,553 |
Gross realized losses - sales |  | (2,415) |  |  | — |  |  | — |
Total Realized Gains on Sales and Calls of AFS Securities, net |  | $ | 1,502 |  |  | $ | 2,508 |  |  | $ | 17,093 |

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