XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Residential Loans, Net | 9 Months Ended
--- | ---
Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] |
Residential Loans, Net | Residential Loans, Net As of January 1, 2020, the Company has elected to account for its residential loans using the fair value option (see Note 2). The following information related to the Company's residential loans, net is provided for the prior periods presented in the accompanying condensed consolidated financial statements. Distressed Residential Loans, Net As of December 31, 2019, the carrying value of the Company’s distressed residential loans, net accounted for under ASC 310-30 amounted to approximately $158.7 million. The following table details activity in accretable yield for the distressed residential loans, net for the nine months ended September 30, 2019 (dollar amounts in thousands):
| September 30, 2019
Balance at beginning of period | $ | 195,560 |
Additions | 1,813 |
Disposals | (48,383) |
Accretion | (4,672) |
Balance at end of period (1) | $ | 144,318 |
(1)Accretable yield is the excess of the distressed residential loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represented the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions included reclassification to accretable yield from nonaccretable yield. Disposals included distressed residential loan dispositions, which included refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income were based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continued to update its estimates regarding the loans and the underlying collateral, the accretable yield was subject to change. Therefore, the amount of accretable income recorded in the nine month period ended September 30, 2019 was not necessarily indicative of future results. The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of our distressed residential loans, net as of December 31, 2019 was as follows:
| December 31, 2019
North Carolina | 10.5 | %
Florida | 10.1 | %
Georgia | 7.0 | %
South Carolina | 5.8 | %
Texas | 5.6 | %
New York | 5.5 | %
Ohio | 5.2 | %
Virginia | 5.2 | %
Distressed residential loans, net with a carrying value of approximately $80.6 million were pledged as collateral for a repurchase agreement at December 31, 2019 (see Note 11). Residential Loans Held in Securitization Trusts, Net Residential loans held in securitization trusts, net were comprised of ARM loans transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. Residential loans held in securitization trusts, net consisted of the following as of December 31, 2019 (dollar amounts in thousands):
| December 31, 2019
Unpaid principal balance | $ | 47,237 |
Deferred origination costs – net | 301 |
Allowance for loan losses | (3,508) |
Total | $ | 44,030 |
Allowance for Loan Losses - The following table presents the activity in the Company's allowance for loan losses on residential loans held in securitization trusts, net for the nine months ended September 30, 2019 (dollar amounts in thousands):
| September 30, 2019
Balance at beginning of period | $ | 3,759 |
Provision for loan losses | 25 |
Transfer to real estate owned | (167) |
Charge-offs | (109) |
Balance at the end of period | $ | 3,508 |
Prior to January 1, 2020, the Company evaluated the adequacy of its allowance for loan losses on a recurring basis. The Company’s allowance for loan losses as of December 31, 2019 was $3.5 million, representing 743 basis points of the outstanding principal balance of residential loans held in securitization trusts. As part of the Company’s allowance for loan loss adequacy analysis, management assessed an overall level of allowances while also assessing credit losses inherent in each non-performing residential loan held in securitization trusts. These estimates involved the consideration of various credit related factors, including, but not limited to, current housing market conditions, current loan to value ratios, delinquency status, the borrower’s current economic and credit status and other relevant factors. Residential Collateralized Debt Obligations The Company's residential loans held in securitization trusts, net were pledged as collateral for the Residential CDOs issued by the Company. These Residential CDOs were accounted for as financings and included in residential collateralized debt obligations on the Company's condensed consolidated balance sheets. As of December 31, 2019, the Company had Residential CDOs outstanding of $40.4 million recorded as liabilities on the Company’s condensed consolidated balance sheets with a weighted average interest rate of 2.41%. The Company retained the owner trust certificates, or residual interest, for three securitizations and had a net investment in the residential securitization trusts of $4.9 million. The net investment amount is the maximum amount of the Company’s investment that was at risk to loss and represented the difference between (i) the carrying amount of the residential loans, real estate owned and receivables held in residential securitization trusts and (ii) the amount of Residential CDOs outstanding. The Residential CDOs are non-recourse debt for which the Company has no obligation. Delinquency Status of Our Residential Loans Held in Securitization Trusts, Net As of December 31, 2019, we had 18 delinquent loans with an aggregate principal amount outstanding of approximately $10.2 million categorized as residential loans held in securitization trusts, net, of which $6.7 million, or 66%, were under some form of temporary modified payment plan. The table below shows delinquencies in our portfolio of residential loans held in securitization trusts, net, including real estate owned (REO) through foreclosure, as of December 31, 2019 (dollar amounts in thousands): December 31, 2019
Days Late | Number of Delinquent Loans |  | Total Unpaid Principal |  | % of Loan Portfolio
30 - 60 | 2 |  | $ | 211 |  |  | 0.44 | %
90 + | 16 |  | $ | 10,010 |  |  | 21.05 | %
Real estate owned through foreclosure | 1 |  | $ | 360 |  |  | 0.76 | %
The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential loans held in securitization trusts, net as of December 31, 2019 were as follows:
| December 31, 2019
New York | 36.1 | %
Massachusetts | 17.2 | %
New Jersey | 12.8 | %
Florida | 12.1 | %
Maryland | 5.5 | %

X
- References No definition available. + Details
Name: | srt_MortgageLoansOnRealEstateAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investment in mortgage loan on real estate by entity with substantial portion of business acquiring and holding investment real estate or interest in real estate. Includes, but is not limited to, information for each mortgage loan receivable equaling or exceeding three percent of carrying amount of mortgage. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 12 -Subsection 29 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=120402547&loc=d3e617274-123014 + Details
Name: | srt_MortgageLoansOnRealEstateByLoanDisclosureTextBlock
Namespace Prefix: | srt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration