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Real Estate Securities (Tables)
 12 Months Ended
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, 2023December 31, 2022
Trading$40,424 $108,329 
Available-for-sale87,373 132,146 
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, 2023December 31, 2022
Senior
Interest-only securities (1)
$36,109 $28,867 
Total Senior36,109 28,867 
Subordinate
RPL securities— 29,002 
Multifamily securities2,641 5,027 
Other third-party residential securities1,674 45,433 
Total Subordinate4,315 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, 2023December 31, 2022
Senior (1)
$— $— 
Subordinate16,567 215,592 
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)20232022
Fair value of securities acquired$7,883 $5,006 
Fair value of securities sold88,073 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, 2023December 31, 2022
Subordinate
Sequoia securities$78,942 $74,367 
Multifamily securities4,460 7,647 
Other third-party residential securities3,971 50,132 
Total Subordinate87,373 132,146 
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)20232022
Fair value of securities acquired$1,979 $10,000 
Fair value of securities sold55,842 — 
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, 2023December 31, 2022
Principal balance$149,956 $221,933 
Credit reserve(23,436)(28,739)
Unamortized discount, net(46,885)(61,650)
Amortized cost79,635 131,544 
Gross unrealized gains16,973 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, 2023Year 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), net158 — 471 — 
Acquisitions1,106 754 — — 
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 Months12 Consecutive Months or Longer
Fair
Value		Unrealized
Losses		Fair ValueUnrealized
Losses
(In Thousands)
December 31, 2023$2,374 $(128)$27,299 $(6,625)
December 31, 202272,679 (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, 2023Subordinate Securities
Default rate0.9%
Loss severity20%
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 EndedYear Ended
(In Thousands)December 31, 2023December 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 recorded300 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)202320222021
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