The Company’s acquired residential loans, including performing, re-performing and non-performing residential loans, and business purpose loans, are presented at fair value on its consolidated balance sheets as a result of a fair value election. Subsequent changes in fair value are reported in current period earnings and presented in unrealized (losses) gains, net on the Company’s consolidated statements of operations.

The following table presents the Company’s residential loans, at fair value, which consist of residential loans held by the Company, Consolidated SLST and other securitization trusts, as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):


	December 31, 2024								December 31, 2023
	Residential loans (1)		Consolidated SLST (2)		Residential loans held in securitization trusts (3)		Total		Residential loans (1)		Consolidated SLST (2)		Residential loans held in securitization trusts (3)		Total
Principal	$	652,642	$	1,111,633	$	2,365,060	$	4,129,335	$	891,283	$	892,546	$	1,609,006	$	3,392,835
Discount	(1,750)		(24,303)		(48,702)		(74,755)		(22,667)		(7,418)		(55,709)		(85,794)
Unrealized losses	(18,626)		(121,658)		(72,558)		(212,842)		(41,081)		(130,268)		(51,389)		(222,738)
Carrying value	$	632,266	$	965,672	$	2,243,800	$	3,841,738	$	827,535	$	754,860	$	1,501,908	$	3,084,303

(1)Certain of the Company's residential loans, at fair value are pledged as collateral for repurchase agreements as of December 31, 2024 and 2023 (see Note 13).

(2)The Company invests in first loss subordinated securities and certain IOs issued by Freddie Mac-sponsored residential loan securitizations. In accordance with GAAP, the Company has consolidated the underlying seasoned re-performing and non-performing residential loans held in the securitizations and the CDOs issued to permanently finance these residential loans, representing Consolidated SLST. Consolidated SLST CDOs are included in collateralized debt obligations on the Company's consolidated balance sheets (see Note 14).

(3)The Company's residential loans held in securitization trusts are pledged as collateral for CDOs issued by the Company. These CDOs are accounted for as financings and included in collateralized debt obligations on the Company's consolidated balance sheets (see Note 14).

The following table presents the unrealized gains (losses), net attributable to residential loans, at fair value for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):


	For the Years Ended December 31,
	2024						2023						2022
	Residential loans		Consolidated SLST (1)		Residential loans held in securitization trusts		Residential loans		Consolidated SLST (1)		Residential loans held in securitization trusts		Residential loans		Consolidated SLST (1)		Residential loans held in securitization trusts
Unrealized gains (losses), net	$	16,968	$	8,611	$	(15,683)	$	6,786	$	(8,086)	$	63,005	$	(115,269)	$	(124,834)	$	(174,401)

(1)In accordance with the practical expedient in ASC 810, the Company determines the fair value of the residential loans held in Consolidated SLST based on the fair value of the CDOs issued by Consolidated SLST, including investment securities we own, as the fair value of these instruments is more observable (see Note 17). See Note 7 for unrealized gains (losses), net recognized by the Company on its investment in Consolidated SLST, which include unrealized gains (losses) on the residential loans held in Consolidated SLST presented in the table above and unrealized gains (losses) on the CDOs issued by Consolidated SLST.

The Company recognized $2.2 million, $4.6 million and $10.0 million of net realized gains on the payoff of residential loans, at fair value during the years ended December 31, 2024, 2023 and 2022, respectively. The Company also recognized $1.0 million and $0.8 million of net realized losses on the sale of residential loans, at fair value during the years ended December 31, 2024 and 2023, respectively. The Company did not sell any residential loans during the year ended December 31, 2022.

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of December 31, 2024 and 2023, respectively, are as follows:


	December 31, 2024						December 31, 2023
	Residential loans		Consolidated SLST		Residential loans held in securitization trusts		Residential loans		Consolidated SLST		Residential loans held in securitization trusts
California	23.0	%	11.7	%	20.2	%	22.4	%	10.7	%	18.4	%
Florida	10.4	%	9.1	%	12.2	%	15.5	%	10.3	%	11.0	%
New Jersey	8.0	%	6.8	%	5.2	%	4.9	%	7.6	%	6.0	%
New York	6.6	%	10.8	%	6.6	%	7.0	%	10.0	%	8.5	%
Texas	6.2	%	4.4	%	7.9	%	8.1	%	3.9	%	7.1	%
Pennsylvania	5.1	%	3.9	%	3.8	%	2.2	%	4.1	%	4.1	%
Illinois	2.2	%	6.3	%	3.1	%	3.0	%	7.2	%	3.5	%

The following table presents the fair value and aggregate unpaid principal balance of the Company’s residential loans and residential loans held in securitization trusts in non-accrual status as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):


	Greater than 90 days past due				Less than 90 days past due
	Fair Value		Unpaid Principal Balance		Fair Value		Unpaid Principal Balance
December 31, 2024	$	159,558	$	183,067	$	8,098	$	8,749
December 31, 2023	199,485		220,577		9,362		9,948

Formal foreclosure proceedings were in process with respect to residential loans with an aggregate fair value of $136.9 million and an aggregate unpaid principal balance of $156.8 million as of December 31, 2024.

Residential loans held in Consolidated SLST with an aggregate unpaid principal balance of $117.1 million and $84.6 million were 90 days or more delinquent as of December 31, 2024 and 2023, respectively. In addition, formal foreclosure proceedings were in process with respect to $39.6 million of residential loans held in Consolidated SLST as of December 31, 2024.