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Derivative Instruments and Hedging Activities | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into derivative instruments in connection with its risk management activities. These derivative instruments may include interest rate swaps, swaptions, futures and options on futures. The Company may also purchase or sell “To-Be-Announced,” or TBAs, purchase options on U.S. Treasury futures or invest in other types of mortgage derivative securities. The Company's derivative instruments, comprised of interest rate swaps which were designated as trading instruments, were terminated during the three months ended March 31, 2020. The Company had no outstanding derivatives as of September 30, 2021 and December 31, 2020. Derivatives Not Designated as Hedging Instruments The table below summarizes the activity of derivative instruments not designated as hedging instruments for the nine months ended September 30, 2020 (dollar amounts in thousands):
|  | Notional Amount For the Nine Months Ended September 30, 2020
Type of Derivative Instrument |  | December 31, 2019 |  | Additions |  | Terminations |  | September 30, 2020
Interest rate swaps |  | $ | 495,500 |  |  | $ | — |  |  | $ | (495,500) |  |  | $ | — |
The following table presents the components of realized gains (losses), net and unrealized gains (losses), net related to our derivative instruments that were not designated as hedging instruments, which are included in non-interest income (loss) in our condensed consolidated statements of operations for the nine months ended September 30, 2020 (dollar amounts in thousands):
|  |  |  |  |  | For the Nine Months Ended September 30, 2020
|  |  |  |  |  | Realized Gains (Losses) |  | Unrealized Gains (Losses)
Interest rate swaps |  |  |  |  |  | $ | (73,078) |  |  | $ | 28,967 |
Total |  |  |  |  |  | $ | (73,078) |  |  | $ | 28,967 |
The use of derivatives exposes the Company to counterparty credit risks in the event of a default by a counterparty. If a counterparty defaults under the applicable derivative agreement, the Company may be unable to collect payments to which it is entitled under its derivative agreements and may have difficulty collecting the assets it pledged as collateral against such derivatives. All of the Company's interest rate swaps were cleared through CME Group Inc. ("CME Clearing") which is the parent company of the Chicago Mercantile Exchange Inc. CME Clearing serves as the counterparty to every cleared transaction, becoming the buyer to each seller and the seller to each buyer, limiting the credit risk by guaranteeing the financial performance of both parties and netting down exposures.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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