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Real Estate Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Values of Real Estate Securities by Type The following table presents the fair values of our real estate securities by type at March 31, 2024 and December 31, 2023.
Table 9.1 – Fair Value of Real Estate Securities by Type
(In Thousands)March 31, 2024December 31, 2023
Trading$102,220 $40,424 
Available-for-sale110,087 87,373 
Total Real Estate Securities$212,307 $127,797 
Schedule of Trading Securities by Collateral Type The following table presents the fair value of trading securities by position and collateral type at March 31, 2024 and December 31, 2023.
Table 9.2 – Fair Value of Trading Securities by Position
(In Thousands)March 31, 2024December 31, 2023
Senior
Interest-only securities (1)
$97,955 $36,109 
Total Senior97,955 36,109 
Subordinate
Multifamily securities2,714 2,641 
Other third-party residential securities1,551 1,674 
Total Subordinate4,265 4,315 
Total Trading Securities$102,220 $40,424 
(1)Includes $32 million and $28 million of Sequoia certificated mortgage servicing rights at March 31, 2024 and December 31, 2023, respectively.
The following table presents the unpaid principal balance of trading securities by position and collateral type at March 31, 2024 and December 31, 2023.
Table 9.3 – Unpaid Principal Balance of Trading Securities by Position
(In Thousands)March 31, 2024December 31, 2023
Senior (1)
$— $— 
Subordinate16,370 16,567 
Total Trading Securities$16,370 $16,567 
(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 three months ended March 31, 2024 and 2023.
Table 9.4 – Trading Securities Activity
Three Months Ended March 31,
(In Thousands)20242023
Fair value of securities acquired$47,526 $1,700 
Fair value of securities sold— 3,509 
Net market valuation gains (losses) recorded (1)
14,475 1,961 
(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.
Schedule of Available-for-Sale Securities by Collateral Type
The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at March 31, 2024 and December 31, 2023.
Table 9.5 – Fair Value of Available-for-Sale Securities by Position
(In Thousands)March 31, 2024December 31, 2023
Mezzanine
Other third-party securities$9,219 $— 
Total Mezzanine9,219 — 
Subordinate
Sequoia securities$87,647 $78,942 
Multifamily securities4,470 4,460 
Other third-party securities8,751 3,971 
Total Subordinate100,868 87,373 
Total AFS Securities$110,087 $87,373 
The following table provides the activity of available-for-sale securities during the three months ended March 31, 2024 and 2023.
Table 9.6 – Available-for-Sale Securities Activity
Three Months Ended March 31,
(In Thousands)20242023
Fair value of securities acquired$14,056 $— 
Fair value of securities sold— 2,678 
Principal balance of securities called— — 
Net unrealized gains (losses) on AFS securities (1)
8,656 5,007 
(1)Net unrealized gains (losses) on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
Schedule of Carrying Value of Residential Available for Sale Securities
The following table presents the components of carrying value (which equals fair value) of AFS securities at March 31, 2024 and December 31, 2023.
Table 9.7 – Carrying Value of AFS Securities
(In Thousands)March 31, 2024December 31, 2023
Principal balance$166,302 $149,956 
Credit reserve(19,717)(23,436)
Unamortized discount, net(52,891)(46,885)
Amortized cost93,694 79,635 
Gross unrealized gains23,126 16,973 
Gross unrealized losses(4,880)(6,753)
CECL allowance(1,853)(2,482)
Carrying Value$110,087 $87,373 
Schedule of Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities
The following table presents the changes for the three months ended March 31, 2024, 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
Three Months Ended 
 March 31, 2024
Credit
Reserve		Unamortized
Discount, Net
(In Thousands)
Beginning balance$23,436 $46,885 
Amortization of net discount— (92)
Realized credit recoveries (losses), net18 — 
Acquisitions— 2,361 
Sales, calls, other— — 
Transfers to (release of) credit reserves, net(3,737)3,737 
Ending Balance$19,717 $52,891 
Schedule of Components of Fair Value of Available for Sale Securities by Holding Periods
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 March 31, 2024 and December 31, 2023.
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
Value		Unrealized
Losses
(In Thousands)
March 31, 2024$2,851 $(2)$21,416 $(4,878)
December 31, 20232,374 (128)27,299 (6,625)
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 March 31, 2024.
Table 9.10 – Significant Credit Quality Indicators
March 31, 2024Subordinate Securities
Default rate0.8%
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 for the three months ended March 31, 2024.
Table 9.11 – Rollforward of Allowance for Credit Losses