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Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Schedule of Financial Information by Segment | The following tables present financial information by segment for the years ended December 31, 2023, 2022, and 2021. Table 24.1 – Business Segment Financial Information
|  | Year Ended December 31, 2023
(In Thousands) |  | Residential Consumer Mortgage Banking |  | Residential Investor Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 25,404 |  |  | $ | 15,896 |  |  | $ | 665,152 |  |  | $ | 18,010 |  |  | $ | 724,462 |
Interest expense |  | (24,114) |  |  | (13,078) |  |  | (526,547) |  |  | (67,780) |  |  | (631,519) |
Net interest income (expense) |  | 1,290 |  |  | 2,818 |  |  | 138,605 |  |  | (49,770) |  |  | 92,943 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 27,782 |  |  | 39,604 |  |  | — |  |  | — |  |  | 67,386 |
Investment fair value changes, net |  | 1,076 |  |  | — |  |  | (42,322) |  |  | (3,154) |  |  | (44,400) |
HEI income, net |  | — |  |  | — |  |  | 35,117 |  |  | — |  |  | 35,117 |
Other income, net |  | — |  |  | 5,613 |  |  | 10,361 |  |  | (3,088) |  |  | 12,886 |
Realized gains, net |  | — |  |  | — |  |  | 858 |  |  | 841 |  |  | 1,699 |
Total non-interest income (loss), net |  | 28,858 |  |  | 45,217 |  |  | 4,014 |  |  | (5,401) |  |  | 72,688 |
General and administrative expenses |  | (17,171) |  |  | (44,547) |  |  | (5,638) |  |  | (60,939) |  |  | (128,295) |
Portfolio management costs |  | — |  |  | — |  |  | (14,516) |  |  | (55) |  |  | (14,571) |
Loan acquisition costs |  | (1,266) |  |  | (5,900) |  |  | — |  |  | — |  |  | (7,166) |
Other expenses (1) |  | — |  |  | (12,442) |  |  | (5,796) |  |  | 2,000 |  |  | (16,238) |
(Provision for) benefit from income taxes |  | (1,659) |  |  | 2,279 |  |  | (2,946) |  |  | 691 |  |  | (1,635) |
Segment Contribution |  | $ | 10,052 |  |  | $ | (12,575) |  |  | $ | 113,723 |  |  | $ | (113,474) |  |  |
Net (Loss) |  |  |  |  |  |  |  |  |  | $ | (2,274) |
Non-cash amortization (expense) income, net |  | $ | (1,097) |  |  | $ | (13,610) |  |  | $ | (8,657) |  |  | $ | (8,176) |  |  | $ | (31,540) |
(1)Corporate/other includes contra-expense from reversal of litigation reserve. See Note 17 for additional detail. Table 24.1 – Business Segment Financial Information (continued)
|  | Year Ended December 31, 2022
(In Thousands) |  | Residential Consumer Mortgage Banking |  | Residential Investor Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 45,202 |  |  | $ | 28,674 |  |  | $ | 627,134 |  |  | $ | 6,844 |  |  | $ | 707,854 |
Interest expense |  | (32,735) |  |  | (18,041) |  |  | (445,154) |  |  | (56,470) |  |  | (552,400) |
Net interest income (expense) |  | 12,467 |  |  | 10,633 |  |  | 181,980 |  |  | (49,626) |  |  | 155,454 |
Non-interest (loss) income |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | (21,282) |  |  | 7,623 |  |  | — |  |  | — |  |  | (13,659) |
Investment fair value changes, net |  | — |  |  | — |  |  | (193,862) |  |  | 15,590 |  |  | (178,272) |
HEI income, net |  | — |  |  | — |  |  | 2,714 |  |  | — |  |  | 2,714 |
Other income, net |  | — |  |  | 3,509 |  |  | 18,596 |  |  | (901) |  |  | 21,204 |
Realized gains, net |  | — |  |  | — |  |  | 3,174 |  |  | 2,160 |  |  | 5,334 |
Total non-interest (loss) income, net |  | (21,282) |  |  | 11,132 |  |  | (169,378) |  |  | 16,849 |  |  | (162,679) |
General and administrative expenses |  | (22,566) |  |  | (56,557) |  |  | (6,036) |  |  | (55,749) |  |  | (140,908) |
Portfolio management costs |  | — |  |  | — |  |  | (7,951) |  |  | — |  |  | (7,951) |
Loan acquisition costs |  | (3,085) |  |  | (8,681) |  |  | — |  |  | — |  |  | (11,766) |
Other expenses |  | 74 |  |  | (13,969) |  |  | (1,695) |  |  | — |  |  | (15,590) |
Benefit from (provision for) income taxes |  | 12,814 |  |  | 13,157 |  |  | (6,051) |  |  | — |  |  | 19,920 |
Segment Contribution |  | $ | (21,578) |  |  | $ | (44,285) |  |  | $ | (9,131) |  |  | $ | (88,526) |  |  |
Net (Loss) |  |  |  |  |  |  |  |  |  | $ | (163,520) |
Non-cash amortization (expense) income, net |  | $ | (1,075) |  |  | $ | (15,071) |  |  | $ | 2,507 |  |  | $ | (8,289) |  |  | $ | (21,928) |
Table 24.1 – Business Segment Financial Information (continued)
|  | Year Ended December 31, 2021
(In Thousands) |  | Residential Consumer Mortgage Banking |  | Residential Investor Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 48,953 |  |  | $ | 14,054 |  |  | $ | 507,173 |  |  | $ | 4,746 |  |  | $ | 574,926 |
Interest expense |  | (26,963) |  |  | (7,230) |  |  | (351,635) |  |  | (40,921) |  |  | (426,749) |
Net interest income (expense) |  | 21,990 |  |  | 6,824 |  |  | 155,538 |  |  | (36,175) |  |  | 148,177 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 127,151 |  |  | 108,593 |  |  | — |  |  | — |  |  | 235,744 |
Investment fair value changes, net |  | — |  |  | — |  |  | 116,189 |  |  | (1,565) |  |  | 114,624 |
HEI income, net |  | — |  |  | — |  |  | 13,425 |  |  | — |  |  | 13,425 |
Other income, net |  | — |  |  | 1,046 |  |  | 10,021 |  |  | 951 |  |  | 12,018 |
Realized gains, net |  | — |  |  | — |  |  | 17,993 |  |  | — |  |  | 17,993 |
Total non-interest income (loss), net |  | 127,151 |  |  | 109,639 |  |  | 157,628 |  |  | (614) |  |  | 393,804 |
General and administrative expenses |  | (33,574) |  |  | (46,586) |  |  | (7,992) |  |  | (77,066) |  |  | (165,218) |
Portfolio management costs |  | — |  |  | — |  |  | (5,758) |  |  | — |  |  | (5,758) |
Loan acquisition costs |  | (7,480) |  |  | (8,100) |  |  | (635) |  |  | (4) |  |  | (16,219) |
Other expense |  | 104 |  |  | (15,127) |  |  | (1,689) |  |  | 17 |  |  | (16,695) |
(Provision for) benefit from income taxes |  | (25,777) |  |  | (8,122) |  |  | (3,862) |  |  | 19,283 |  |  | (18,478) |
Segment Contribution |  | $ | 82,414 |  |  | $ | 38,528 |  |  | $ | 293,230 |  |  | $ | (94,559) |  |  |
Net Income |  |  |  |  |  |  |  |  |  | $ | 319,613 |
Non-cash amortization income (expense), net |  | $ | (82) |  |  | $ | (16,452) |  |  | $ | (20,781) |  |  | $ | (7,878) |  |  | $ | (45,193) |
Schedule of Corporate and Other | The following table presents the components of Corporate/Other for the years ended December 31, 2023, 2022, and 2021. Table 24.2 – Components of Corporate/Other
|  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 10,326 |  |  | $ | 7,684 |  |  | $ | 18,010 |  |  | $ | 5,672 |  |  | $ | 1,172 |  |  | $ | 6,844 |  |  | $ | 4,709 |  |  | $ | 37 |  |  | $ | 4,746 |
Interest expense |  | (9,980) |  |  | (57,800) |  |  | (67,780) |  |  | (5,206) |  |  | (51,264) |  |  | (56,470) |  |  | (3,040) |  |  | (37,881) |  |  | (40,921) |
Net interest income (expense) |  | 346 |  |  | (50,116) |  |  | (49,770) |  |  | 466 |  |  | (50,092) |  |  | (49,626) |  |  | 1,669 |  |  | (37,844) |  |  | (36,175) |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (160) |  |  | (2,994) |  |  | (3,154) |  |  | (1,302) |  |  | 16,892 |  |  | 15,590 |  |  | (1,558) |  |  | (7) |  |  | (1,565) |
Other income, net |  | — |  |  | (3,088) |  |  | (3,088) |  |  | — |  |  | (901) |  |  | (901) |  |  | — |  |  | 951 |  |  | 951 |
Realized gains, net |  | — |  |  | 841 |  |  | 841 |  |  | — |  |  | 2,160 |  |  | 2,160 |  |  | — |  |  | — |  |  | — |
Total non-interest (loss) income, net |  | (160) |  |  | (5,241) |  |  | (5,401) |  |  | (1,302) |  |  | 18,151 |  |  | 16,849 |  |  | (1,558) |  |  | 944 |  |  | (614) |
General and administrative expenses |  | — |  |  | (60,939) |  |  | (60,939) |  |  | — |  |  | (55,749) |  |  | (55,749) |  |  | — |  |  | (77,066) |  |  | (77,066) |
Portfolio management costs |  | — |  |  | (55) |  |  | (55) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loan acquisition costs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | (4) |
Other expenses |  | — |  |  | 2,000 |  |  | 2,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17 |  |  | 17 |
Benefit from income taxes |  | — |  |  | 691 |  |  | 691 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,283 |  |  | 19,283 |
Total |  | $ | 186 |  |  | $ | (113,660) |  |  | $ | (113,474) |  |  | $ | (836) |  |  | $ | (87,690) |  |  | $ | (88,526) |  |  | $ | 111 |  |  | $ | (94,670) |  |  | $ | (94,559) |
(1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Schedule of Supplemental Balance Sheet | The following table presents supplemental information by segment at December 31, 2023 and 2022. Table 24.3 – Supplemental Segment Information
(In Thousands) |  | Residential Consumer Mortgage Banking |  | Residential Investor Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 911,192 |  |  | $ | — |  |  | $ | 5,999,706 |  |  | $ | 139,739 |  |  | $ | 7,050,637 |
Business purpose loans |  | — |  |  | 180,250 |  |  | 5,040,048 |  |  | — |  |  | 5,220,298 |
Consolidated Agency multifamily loans |  | — |  |  | — |  |  | 425,285 |  |  | — |  |  | 425,285 |
Real estate securities |  | 4,995 |  |  | — |  |  | 122,802 |  |  | — |  |  | 127,797 |
Home equity investments |  | — |  |  | — |  |  | 550,323 |  |  | 113 |  |  | 550,436 |
Other investments |  | — |  |  | — |  |  | 287,822 |  |  | 56,108 |  |  | 343,930 |
Goodwill |  | — |  |  | 23,373 |  |  | — |  |  | — |  |  | 23,373 |
Intangible assets |  | — |  |  | 28,462 |  |  | — |  |  | — |  |  | 28,462 |
Total assets |  | 971,535 |  |  | 293,225 |  |  | 12,718,201 |  |  | 521,366 |  |  | 14,504,327 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 628,160 |  |  | $ | — |  |  | $ | 4,800,096 |  |  | $ | 184,932 |  |  | $ | 5,613,188 |
Business purpose loans |  | — |  |  | 364,073 |  |  | 4,968,513 |  |  | — |  |  | 5,332,586 |
Consolidated Agency multifamily loans |  | — |  |  | — |  |  | 424,551 |  |  | — |  |  | 424,551 |
Real estate securities |  | — |  |  | — |  |  | 240,475 |  |  | — |  |  | 240,475 |
Home equity investments |  | — |  |  | — |  |  | 403,462 |  |  |  |  | 403,462 |
Other investments |  | — |  |  | — |  |  | 334,420 |  |  | 56,518 |  |  | 390,938 |
Goodwill |  | — |  |  | 23,373 |  |  | — |  |  | — |  |  | 23,373 |
Intangible assets |  | — |  |  | 40,892 |  |  | — |  |  | — |  |  | 40,892 |
Total assets |  | 660,916 |  |  | 487,159 |  |  | 11,303,991 |  |  | 578,833 |  |  | 13,030,899 |

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