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Real Estate Securities (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.
Table 10.1 – Fair Value of Real Estate Securities by Type
(In Thousands)June 30, 2024December 31, 2023
Trading$119,624 $40,424 
Available-for-sale144,777 87,373 
Total Real Estate Securities$264,401 $127,797 
Schedule of Trading Securities by Position and Collateral Type The following table presents the fair value of trading securities by position and collateral type at June 30, 2024 and December 31, 2023.
Table 10.2 – Fair Value of Trading Securities by Position
(In Thousands)June 30, 2024December 31, 2023
Senior
Interest-only securities (1)
$115,287 $36,109 
Total Senior115,287 36,109 
Subordinate
Multifamily securities2,823 2,641 
Other third-party securities1,514 1,674 
Total Subordinate4,337 4,315 
Total Trading Securities$119,624 $40,424 
(1)Includes $32 million and $28 million of Sequoia certificated mortgage servicing rights at June 30, 2024 and December 31, 2023, respectively.
The following table presents the unpaid principal balance of trading securities by position and collateral type at June 30, 2024 and December 31, 2023.
Table 10.3 – Unpaid Principal Balance of Trading Securities by Position
(In Thousands)June 30, 2024December 31, 2023
Senior (1)
$— $— 
Subordinate16,098 16,567 
Total Trading Securities$16,098 $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 and six months ended June 30, 2024 and 2023.
Table 10.4 – Trading Securities Activity
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands)2024202320242023
Fair value of securities acquired$16,092 $6,183 $63,618 $7,883 
Fair value of securities sold— 51,578 — 55,087 
Net market valuation gains (losses) recorded (1)
1,600 6,495 16,075 8,456 
(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 Position and Collateral Type
The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at June 30, 2024 and December 31, 2023.
Table 10.5 – Fair Value of Available-for-Sale Securities by Position
(In Thousands)June 30, 2024December 31, 2023
Senior
Other third-party securities$20,992 $— 
Total Senior20,992 — 
Mezzanine
Multifamily securities$2,834 $— 
Other third-party securities10,484 — 
Total Mezzanine13,318 — 
Subordinate
Sequoia securities$88,165 $78,942 
Multifamily securities8,869 4,460 
Other third-party securities13,433 3,971 
Total Subordinate110,467 87,373 
Total AFS Securities$144,777 $87,373 
The following table provides the activity of available-for-sale securities during the three and six months ended June 30, 2024 and 2023.
Table 10.6 – Available-for-Sale Securities Activity
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands)2024202320242023
Fair value of securities acquired$33,386 $1,979 $47,442 $1,979 
Fair value of securities sold— 40,574 — 43,252 
Net unrealized gains (losses) on AFS securities (1)
1,054 (688)9,710 4,319 
(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 June 30, 2024 and December 31, 2023.
Table 10.7 – Carrying Value of AFS Securities
June 30, 2024
(In Thousands)SeniorMezzanineSubordinateTotal
Principal balance$21,000 $15,096 $164,449 $200,545 
Credit reserve— — (19,019)(19,019)
Unamortized discount, net(49)(2,159)(51,989)(54,197)
Amortized cost20,951 12,937 93,441 127,329 
Gross unrealized gains42 381 23,713 24,136 
Gross unrealized losses(1)— (5,348)(5,349)
CECL allowance— — (1,339)(1,339)
Carrying Value$20,992 $13,318 $110,467 $144,777 
December 31, 2023
(In Thousands)SeniorMezzanineSubordinateTotal
Principal balance$— $— $149,956 $149,956 
Credit reserve— — (23,436)(23,436)
Unamortized discount, net— — (46,885)(46,885)
Amortized cost— — 79,635 79,635 
Gross unrealized gains— — 16,973 16,973 
Gross unrealized losses— — (6,753)(6,753)
CECL allowance— — (2,482)(2,482)
Carrying Value$— $— $87,373 $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 and six months ended June 30, 2024, in unamortized discount and designated credit reserves on residential AFS securities.
Table 10.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities
Three Months Ended 
 June 30, 2024		Six Months Ended 
 June 30, 2024
Credit
Reserve		Unamortized
Discount, Net		Credit
Reserve		Unamortized
Discount, Net
(In Thousands)
Beginning balance$19,717 $52,891 $23,436 $46,885 
Amortization of net discount— (337)— (429)
Realized credit recoveries (losses), net156 — 174 — 
Acquisitions— 789 — 3,150 
Sales, calls, other— — — — 
Transfers to (release of) credit reserves, net(854)854 (4,591)4,591 
Ending Balance$19,019 $54,197 $19,019 $54,197 
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 June 30, 2024 and December 31, 2023.
Table 10.9 – 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)
June 30, 2024$10,084 $(97)$21,406 $(5,252)
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 June 30, 2024.
Table 10.10 – Significant Credit Quality Indicators
June 30, 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 and six months ended June 30, 2024.
Table 10.11 – Rollforward of Allowance for Credit Losses
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
(In Thousands)
Beginning balance allowance for credit losses$1,853 $2,482 
Additions to allowance for credit losses on securities for which credit losses were not previously recorded— — 
Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period(514)(1,143)
Reduction to allowance for securities sold during the period— — 
Ending balance of allowance for credit losses$1,339 $1,339