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Residential Investor Loans | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Residential Investor Loans | Residential Consumer Loans We acquire residential consumer loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential consumer loans owned at Redwood and at the consolidated Sequoia and Freddie Mac SLST entities at September 30, 2024 and December 31, 2023. Table 7.1 – Classifications and Carrying Values of Residential Consumer Loans
September 30, 2024 |  |  |  |  |  | Freddie Mac |  |
(In Thousands) |  | Redwood |  | Sequoia |  | SLST |  | Total
Held-for-sale at fair value |  | $ | 1,362,349 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,362,349 |
Held-for-investment at fair value |  | — |  |  | 8,476,004 |  |  | 1,318,806 |  |  | 9,794,810 |
Total Residential Consumer Loans |  | $ | 1,362,349 |  |  | $ | 8,476,004 |  |  | $ | 1,318,806 |  |  | $ | 11,157,159 |
December 31, 2023 |  |  |  |  |  | Freddie Mac |  |
(In Thousands) |  | Redwood |  | Sequoia |  | SLST |  | Total
Held-for-sale at fair value |  | $ | 911,192 |  |  | $ | — |  |  | $ | — |  |  | $ | 911,192 |
Held-for-investment at fair value |  | — |  |  | 4,780,203 |  |  | 1,359,242 |  |  | 6,139,445 |
Total Residential Consumer Loans |  | $ | 911,192 |  |  | $ | 4,780,203 |  |  | $ | 1,359,242 |  |  | $ | 7,050,637 |
At September 30, 2024, we owned mortgage servicing rights associated with $1.3 billion (principal balance) of residential consumer loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Consumer Loans Held-for-Sale The following table summarizes the characteristics of residential consumer loans held-for-sale at September 30, 2024 and December 31, 2023. Table 7.2 – Characteristics of Residential Consumer Loans Held-for-Sale
(Dollars in Thousands) |  | September 30, 2024 |  | December 31, 2023
Unpaid principal balance |  | $ | 1,348,819 |  |  | $ | 916,877 |
Fair value of loans |  | $ | 1,362,349 |  |  | $ | 911,192 |
Market value of loans pledged as collateral under short-term borrowing agreements |  | $ | 1,350,551 |  |  | $ | 907,742 |
Weighted average coupon |  | 6.63 | % |  | 6.25 | %
At both September 30, 2024 and December 31, 2023, there were no residential consumer loans held-for-sale that were 90 days or more delinquent or in foreclosure. The following table provides the activity of residential consumer loans held-for-sale during the three and nine months ended September 30, 2024 and 2023. Table 7.3 – Activity of Residential Consumer Loans Held-for-Sale
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Principal balance of loans acquired |  | $ | 1,999,621 |  |  | $ | 857,974 |  |  | $ | 4,873,608 |  |  | $ | 1,092,992 |
Principal balance of loans sold |  | 39,497 |  |  | 53,743 |  |  | 246,641 |  |  | 235,821 |
Principal balance of loans transferred from HFS to HFI |  | 1,528,163 |  |  | 337,752 |  |  | 4,140,150 |  |  | 995,047 |
Net market valuation gains (losses) recorded (1) |  | 11,047 |  |  | (8,683) |  |  | 20,079 |  |  | (2,590) |
(1)Net market valuation gains (losses) on residential consumer loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income. Residential Consumer Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential consumer loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential consumer loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2024 and December 31, 2023. Table 7.4 – Characteristics of Residential Consumer Loans Held-for-Investment
September 30, 2024 |  |  |  |  |  |  |  | Freddie Mac
(Dollars in Thousands) |  |  |  |  |  | Sequoia |  | SLST
Unpaid principal balance |  |  |  |  |  | $ | 8,880,569 |  |  | $ | 1,538,972 |
Average loan balance (UPB) |  |  |  |  |  | $ | 868 |  |  | $ | 156 |
Fair value of loans (1) |  |  |  |  |  | $ | 8,476,004 |  |  | $ | 1,318,806 |
Weighted average coupon |  |  |  |  |  | 4.95 | % |  | 4.50 | %
Delinquency information |  |  |  |  |  |  |  |
Unpaid principal balance of loans with 90+ day delinquencies (2) |  |  |  |  |  | $ | 16,802 |  |  | $ | 103,379 |
Average 90+ days delinquent balance (UPB) |  |  |  |  |  | $ | 525 |  |  | $ | 171 |
Unpaid principal balance of loans in foreclosure |  |  |  |  |  | $ | 7,079 |  |  | $ | 39,790 |
Average foreclosure balance (UPB) |  |  |  |  |  | $ | 442 |  |  | $ | 181 |
December 31, 2023 |  |  |  |  |  |  |  | Freddie Mac
(Dollars in Thousands) |  |  |  |  |  | Sequoia |  | SLST
Unpaid principal balance |  |  |  |  |  | $ | 5,398,913 |  |  | $ | 1,614,974 |
Average loan balance (UPB) |  |  |  |  |  | $ | 757 |  |  | $ | 157 |
Fair value of loans (1) |  |  |  |  |  | $ | 4,780,203 |  |  | $ | 1,359,242 |
Weighted average coupon |  |  |  |  |  | 4.15 | % |  | 4.50 | %
Delinquency information |  |  |  |  |  |  |  |
Unpaid principal balance of loans with 90+ day delinquencies (2) |  |  |  |  |  | $ | 13,023 |  |  | $ | 132,307 |
Average 90+ days delinquent balance (UPB) |  |  |  |  |  | $ | 482 |  |  | $ | 166 |
Unpaid principal balance of loans in foreclosure |  |  |  |  |  | $ | 5,234 |  |  | $ | 47,654 |
Average foreclosure balance (UPB) |  |  |  |  |  | $ | 436 |  |  | $ | 163 |
Footnotes to Table 7.4 (1)The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with the accounting guidance for collateralized financing entities. (2)For loans held at consolidated entities, the number and unpaid principal balance of loans 90+ days delinquent includes loans in foreclosure. For loans held at our consolidated Sequoia and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to the measurement alternative provided for collateralized financing entities, and are recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the activity of residential consumer loans held-for-investment at consolidated entities during the three and nine months ended September 30, 2024 and 2023. Table 7.5 – Activity of Residential Consumer Loans Held-for-Investment at Consolidated Entities
|  |  |  | Three Months Ended September 30, 2024 |  |  | Three Months Ended September 30, 2023
|  |  |  |  |  | Freddie Mac |  |  |  |  | Freddie Mac
(In Thousands) |  |  |  | Sequoia |  | SLST |  |  | Sequoia |  | SLST
Principal value of loans transferred from HFS to HFI (1) |  |  |  | $ | 1,528,163 |  |  | N/A |  |  | $ | 337,752 |  |  | N/A
Net market valuation gains (losses) recorded |  |  |  | 256,034 |  |  | 53,555 |  |  |  | (177,253) |  |  | (51,046) |
|  |  |  | Nine Months Ended September 30, 2024 |  |  | Nine Months Ended September 30, 2023
|  |  |  |  |  | Freddie Mac |  |  |  |  | Freddie Mac
(In Thousands) |  |  |  | Sequoia |  | SLST |  |  | Sequoia |  | SLST
Principal value of loans transferred from HFS to HFI (1) |  |  |  | $ | 4,140,150 |  |  | N/A |  |  | $ | 995,047 |  |  | N/A
Net market valuation gains (losses) recorded |  |  |  | 152,635 |  |  | 38,154 |  |  |  | (162,895) |  |  | (62,756) |
(1)Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. Residential Investor Loans We originate and invest in residential investor loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the residential investor loans owned at Redwood and at consolidated CAFL entities at September 30, 2024 and December 31, 2023. Table 8.1 – Classifications and Carrying Values of Residential Investor Loans
September 30, 2024 |  | Residential Investor Term |  | Residential Investor Bridge |  |
(In Thousands) |  | Redwood |  | CAFL |  | Redwood |  | CAFL |  | Total
Held-for-sale at fair value |  | $ | 174,485 |  |  | $ | — |  |  | $ | 91,393 |  |  | $ | — |  |  | $ | 265,878 |
Held-for-investment at fair value |  | — |  |  | 2,661,885 |  |  | 1,211,081 |  |  | 607,330 |  |  | 4,480,296 |
Total Residential Investor Loans |  | $ | 174,485 |  |  | $ | 2,661,885 |  |  | $ | 1,302,474 |  |  | $ | 607,330 |  |  | $ | 4,746,174 |
December 31, 2023 |  | Residential Investor Term |  | Residential Investor Bridge |  |
(In Thousands) |  | Redwood |  | CAFL |  | Redwood |  | CAFL |  | Total
Held-for-sale at fair value |  | $ | 144,359 |  |  | $ | — |  |  | $ | 35,891 |  |  | $ | — |  |  | $ | 180,250 |
Held-for-investment at fair value |  | — |  |  | 2,971,725 |  |  | 1,305,727 |  |  | 762,596 |  |  | 5,040,048 |
Total Residential Investor Loans |  | $ | 144,359 |  |  | $ | 2,971,725 |  |  | $ | 1,341,618 |  |  | $ | 762,596 |  |  | $ | 5,220,298 |
Nearly all of the outstanding residential investor term loans at September 30, 2024 were first-lien, fixed-rate loans with original maturities of three, five, seven, or ten years. The outstanding residential investor bridge loans held-for-investment at September 30, 2024 were first-lien, interest-only loans with original maturities of 6 to 36 months and were comprised of 62% one-month SOFR-indexed adjustable-rate loans, and 38% fixed-rate loans. At September 30, 2024, we had $429 million in commitments to fund residential investor bridge loans. See Note 18 for additional information on these commitments. During the three and nine months ended September 30, 2024, we sold $66 million and $253 million, of residential investor bridge loans, net of $13 million and $34 million, respectively, of construction draws to our joint ventures. See Note 11 for additional information on these joint ventures. The following table provides the activity of residential investor loans at Redwood during the three and nine months ended September 30, 2024 and 2023. Table 8.2 – Activity of Residential Investor Loans at Redwood
|  | Three Months Ended September 30, 2024 |  | Three Months Ended September 30, 2023
(In Thousands) |  | Term at Redwood |  | Bridge at Redwood |  | Term at Redwood |  | Bridge at Redwood
Principal balance of loans originated |  | $ | 158,584 |  |  | $ | 286,833 |  |  | $ | 105,777 |  |  | $ | 303,284 |
Principal balance of loans acquired |  | 3,145 |  |  | — |  |  | — |  |  | 1,820 |
Principal balance of loans sold to third parties (1) |  | 206,380 |  |  | 67,655 |  |  | 27,436 |  |  | 34,061 |
Fair value of loans transferred (2) |  | — |  |  | (62,386) |  |  | (278,751) |  |  | (116,679) |
Mortgage banking activities income (loss) recorded (3) |  | 6,061 |  |  | 694 |  |  | 1,600 |  |  | 1,438 |
Investment fair value changes recorded |  | (1,500) |  |  | (10,293) |  |  | — |  |  | (16,899) |
|  | Nine Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2023
(In Thousands) |  | Term at Redwood |  | Bridge at Redwood |  | Term at Redwood |  | Bridge at Redwood
Principal balance of loans originated |  | $ | 493,212 |  |  | $ | 714,977 |  |  | $ | 408,477 |  |  | $ | 828,149 |
Principal balance of loans acquired |  | 3,793 |  |  | 15,677 |  |  | — |  |  | 19,054 |
Principal balance of loans sold to third parties (1) |  | 464,836 |  |  | 277,170 |  |  | 425,542 |  |  | 65,868 |
Fair value of loans transferred (2) |  | — |  |  | (250,319) |  |  | (278,751) |  |  | (337,657) |
Mortgage banking activities income recorded (3) |  | 11,833 |  |  | 2,748 |  |  | 13,214 |  |  | 4,808 |
Investment fair value changes recorded |  | (2,837) |  |  | (27,503) |  |  | (14,430) |  |  | (22,867) |
(1)For the three and nine months ended September 30, 2024 the principal balance of loans sold to third parties is net of $13 million and $34 million, respectively, related to construction draws on residential investor bridge loans sold to our joint ventures. See Note 11 for additional information on these joint ventures. (2)For residential investor term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL term securitizations. For residential investor bridge at Redwood, represents the transfer of residential investor bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their inclusion in one of our bridge loan securitizations, which generally have replenishment features for a set period of time from the closing date. (3)Represents net market valuation changes from the time a loan is originated to when it is sold, securitized or transferred to our investment portfolio. See Table 5.1 for additional detail on Mortgage banking activities income. Residential Investor Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying residential investor term loans and bridge loans owned by these entities. The following table provides the activity of residential investor loans held-for-investment at CAFL during the three and nine months ended September 30, 2024 and 2023. Table 8.3 – Activity of Residential Investor Loans Held-for-Investment at CAFL
|  | Three Months Ended September 30, 2024 |  | Three Months Ended September 30, 2023
(In Thousands) |  | Term at CAFL |  | Bridge at CAFL |  | Term at CAFL |  | Bridge at CAFL
Net market valuation gains (losses) recorded (1) |  | $ | 78,275 |  |  | $ | 1,623 |  |  | $ | (1,360) |  |  | $ | (2,560) |
Fair value of loans transferred to HFI |  | — |  |  | 62,386 |  |  | 278,751 |  |  | 116,679 |
|  | Nine Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2023
(In Thousands) |  | Term at CAFL |  | Bridge at CAFL |  | Term at CAFL |  | Bridge at CAFL
Net market valuation gains (losses) recorded (1) |  | $ | 89,388 |  |  | $ | 443 |  |  | $ | (1,961) |  |  | $ | (1,960) |
Fair value of loans transferred to HFI |  | — |  |  | 250,319 |  |  | 278,751 |  |  | 337,657 |
(1)Net market valuation gains (losses) on residential investor loans held-for-investment at CAFL are recorded through Investment fair value changes, net on our consolidated statements of income. For loans held at our consolidated CAFL Term entities and one CAFL Bridge entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to CFE guidelines. We did not elect to account for two of our CAFL Bridge securitizations under the CFE guidelines but have elected to account for the loans in these securitizations at fair value, and changes in fair value for these loans are recorded through Investment fair value changes, net on our consolidated statements of income. Residential Investor Loan Characteristics The following tables summarize the characteristics of the residential investor loans owned at Redwood and at consolidated CAFL entities at September 30, 2024 and December 31, 2023. Table 8.4 – Characteristics of Residential Investor Loans
September 30, 2024 |  | Term at Redwood |  | Term at CAFL(1) |  | Bridge at Redwood |  | Bridge at CAFL
(Dollars in Thousands) |  |  |  |
Unpaid principal balance |  | $ | 183,358 |  |  | $ | 2,790,755 |  |  | $ | 1,336,767 |  |  | $ | 600,267 |
Average UPB of loans |  | $ | 2,108 |  |  | $ | 3,037 |  |  | $ | 5,161 |  |  | $ | 2,035 |
Fair value of loans |  | $ | 174,485 |  |  | $ | 2,661,885 |  |  | $ | 1,302,474 |  |  | $ | 607,330 |
Weighted average coupon |  | 6.88 | % |  | 5.36 | % |  | 9.14 | % |  | 10.16 | %
Weighted average remaining loan term (years) |  | 7 |  | 4 |  | 1 |  | 1
Market value of loans pledged as collateral under debt facilities |  | $ | 133,022 |  |  | N/A |  | $ | 1,250,392 |  |  | N/A
Delinquency information |  |  |  |  |  |  |  |
Unpaid principal balance of loans with 90+ day delinquencies (2) |  | $ | 34,083 |  |  | $ | 161,874 |  |  | $ | 132,286 |  |  | $ | 24,993 |
Average UPB of 90+ days delinquent loans (2) |  | $ | 11,361 |  |  | $ | 3,948 |  |  | $ | 7,782 |  |  | $ | 1,785 |
Fair value of loans with 90+ day delinquencies (2) |  | $ | 19,320 |  |  | N/A |  | $ | 113,904 |  |  | N/A
Unpaid principal balance of loans in foreclosure (3) |  | $ | 27,529 |  |  | $ | 18,646 |  |  | $ | 86,019 |  |  | $ | 13,426 |
Average UPB of loans in foreclosure (3) |  | $ | 27,529 |  |  | $ | 2,936 |  |  | $ | 7,820 |  |  | $ | 1,918 |
Fair value of loans in foreclosure (3) |  | $ | 13,250 |  |  | N/A |  | $ | 72,212 |  |  | N/A
December 31, 2023 |  | Term at Redwood |  | Term at CAFL(1) |  | Bridge at Redwood |  | Bridge at CAFL
(Dollars in Thousands) |  |  |  |
Unpaid principal balance |  | $ | 152,213 |  |  | $ | 3,194,131 |  |  | $ | 1,360,957 |  |  | $ | 756,574 |
Average UPB of loans |  | $ | 4,006 |  |  | $ | 3,028 |  |  | $ | 8,453 |  |  | $ | 2,162 |
Fair value of loans |  | $ | 144,359 |  |  | $ | 2,971,725 |  |  | $ | 1,341,618 |  |  | $ | 762,596 |
Weighted average coupon |  | 6.92 | % |  | 5.34 | % |  | 10.41 | % |  | 10.82 | %
Weighted average remaining loan term (years) |  | 7 |  | 5 |  | 1 |  | 1
Market value of loans pledged as collateral under debt facilities |  | $ | 124,934 |  |  | N/A |  | $ | 1,298,198 |  |  | N/A
Delinquency information |  |  |  |  |  |  |  |
Unpaid principal balance of loans with 90+ day delinquencies (2) |  | $ | 28,263 |  |  | $ | 143,623 |  |  | $ | 96,934 |  |  | $ | 10,646 |
Average UPB of 90+ days delinquent loans (2) |  | $ | 14,132 |  |  | $ | 3,192 |  |  | $ | 5,702 |  |  | $ | 1,774 |
Fair value of loans with 90+ day delinquencies (2) |  | $ | 16,822 |  |  | N/A |  | $ | 86,137 |  |  | N/A
Unpaid principal balance of loans in foreclosure (3) |  | $ | 28,263 |  |  | $ | 15,708 |  |  | $ | 79,841 |  |  | $ | 3,931 |
Average UPB of loans in foreclosure (3) |  | $ | 14,132 |  |  | $ | 2,244 |  |  | $ | 5,323 |  |  | $ | 1,310 |
Fair value of loans in foreclosure (3) |  | $ | 16,822 |  |  | N/A |  | $ | 69,046 |  |  | N/A
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with the accounting guidance for CFEs. (2)The number of loans 90+ days delinquent includes loans in foreclosure. (3)May include loans that are less than 90 days delinquent. The following table presents the unpaid principal balance of business purpose loans recorded on our consolidated balance sheets at September 30, 2024 by collateral/strategy type. Table 8.5 – Residential Investor Loans Collateral/Strategy Type
September 30, 2024 |  | Term at Redwood |  | Term at CAFL(1) |  | Bridge at Redwood |  | Bridge at CAFL(1)
(Dollars in Thousands) |  |  |  |
Term |  |  |  |  |  |  |  |
Single family rental |  | $ | 85,307 |  |  | $ | 2,163,862 |  |  | $ | — |  |  | $ | — |
Multifamily |  | 98,051 |  |  | 626,893 |  |  | — |  |  | — |
Bridge |  |  |  |  |  |  |  |
Renovate / Build for Rent ("BFR")(2) |  | — |  |  | — |  |  | 575,782 |  |  | 279,820 |
Single Asset Bridge ("SAB")(3) |  | — |  |  | — |  |  | 90,678 |  |  | 171,489 |
Multifamily(4) |  | — |  |  | — |  |  | 664,060 |  |  | 147,903 |
Third-Party Originated |  | — |  |  | — |  |  | 6,247 |  |  | 1,055 |
Total Residential Investor Loans |  | $ | 183,358 |  |  | $ | 2,790,755 |  |  | $ | 1,336,767 |  |  | $ | 600,267 |
(1)The fair value of the loans held by consolidated CAFL Term entities and one CAFL Bridge entity were based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable in accordance with the accounting guidance for CFEs. (2)Includes loans to finance acquisition and/or stabilization of existing housing stock or to finance new construction of residential properties for rent. (3)Includes loans for light to moderate renovation of residential and small multifamily properties (generally less than 20 units). (4)Includes loans for predominantly light to moderate rehabilitation projects on multifamily properties. Loan Modifications We may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include amendments and restructuring and include terms such as additional time for the borrower to refinance or sell the collateral property, interest rate reductions and/or deferral of scheduled principal and/or interest payments. In some instances, a loan amendment or restructuring may bring the loan out of delinquent status. In other instances, including in the case of Build for Rent ("BFR") loans, a loan modification may amend the project's underlying budget (including allocation of hard/soft costs, interest reserves and other items) or construction or completion milestones, if warranted, based on progress versus the initial budget. Because they finance the construction of rental housing, many BFR projects do not generate net operating income until the later stages of the loan term. As such, BFR loans are sized to include allocations for interest expense as well as construction costs and other standard budget items. In exchange for a modification, we may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a capital infusion to replenish interest or capital improvement reserves and/or termination of all or a portion of the remaining unfunded loan commitment. The fair value of residential investor bridge loans of $1.91 billion at September 30, 2024 declined from $2.10 billion at December 31, 2023. Changes in the fair value of these loans during the three months ending September 30, 2024 primarily reflect principal repayments and reductions in the fair values for non-accrual bridge loans and certain modified bridge loans since the fourth quarter of 2023. For the three months ending September 30, 2024, we modified or put into forbearance loans with a total aggregate unpaid principal balance of $228 million. Of this balance, loans with reductions in contractual interest rates (including, in certain cases, deferrals of interest) had an aggregate unpaid principal balance of $113 million, and an aggregate fair value of $111 million at September 30, 2024. The modification terms on these loans involved conversions of the contractual interest rates on the loans from floating to fixed and/or deferrals of a portion of the stated pay rate to an extended date or to maturity. In the third quarter of 2024, modifications on these loans maintained a weighted average contractual interest rate of approximately 10.49%, of which 4.86% represented deferred interest. In addition, for the three months ending September 30, 2024, we modified two BFR loans with a total aggregate unpaid principal balance of $116 million and an aggregate fair value of $115 million, respectively, at September 30, 2024, that had previously been modified in 2024. The previous modifications on these loans amended the interest rate to a combination of current pay and deferred interest. During the three months ending September 30, 2024, the modifications on these loans amended the allocation of loan commitments between hard and soft costs, interest expense and other expenses, provided maturity extensions of 16-19 months (subject to mandatory partial repayments during the loan term), and established a hard lockbox and funding of interest reserves to cover debt service shortfalls. Nonaccrual Loans Interest income is accrued on loans in the period the coupon interest is contractually earned until such time a loan is placed on non-accrual status. A loan is placed on non-accrual status when it is probable that all principal and interest due under the contractual terms will not be collected and a loan is past due more than 90 days. At the time a loan is placed on non-accrual status, all previously accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis when it is received. A loan remains on non-accrual status until the loan balance is deemed collectible or until such time the loan qualifies to be placed back on accrual status. Generally, a loan is placed back on accrual status when the loan becomes contractually current or the collection of past due and future payments is reasonably assured either through reinstatement by the borrower, estimated net equity in the underlying real estate property or both. At September 30, 2024 and December 31, 2023, residential investor loans with an aggregate unpaid principal balance of $364 million and $340 million, respectively, and an aggregate fair value of $320 million and $312 million, respectively, were on non-accrual status. Of this balance, loans with an aggregate unpaid principal balance of $215 million and $207 million were less than 90 days past due (including loans that were contractually current) as of September 30, 2024 and December 31, 2023, respectively.

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Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration