Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 25, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	ARBOR REALTY TRUST INC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		97,752,459
Entity Central Index Key	0001253986
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 135,285	$ 160,063
Restricted cash	190,046	180,606
Loans and investments, net	3,874,069	3,200,145
Loans held-for-sale, net	537,826	481,664
Capitalized mortgage servicing rights, net	283,688	273,770
Securities held-to-maturity, net	95,181	76,363
Investments in equity affiliates	36,698	21,580
Real estate owned, net	13,129	14,446
Due from related party	5,011	1,287
Goodwill and other intangible assets	112,026	116,165
Other assets	112,675	86,086
Total assets	5,395,634	4,612,175
Liabilities and Equity:
Credit facilities and repurchase agreements	1,385,764	1,135,627
Collateralized loan obligations	1,876,900	1,593,548
Debt fund	68,528	68,183
Senior unsecured notes	211,188	122,484
Convertible senior unsecured notes, net	255,106	254,768
Junior subordinated notes to subsidiary trust issuing preferred securities	140,767	140,259
Due to related party	3,170
Due to borrowers	82,451	78,662
Allowance for loss-sharing obligations	35,525	34,298
Other liabilities	137,839	118,780
Total liabilities	4,197,238	3,546,609
Commitments and contingencies (Note 14)
Arbor Realty Trust, Inc. stockholders' equity:
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized; special voting preferred shares; 20,484,094 and 20,653,584 shares issued and outstanding, respectively; 8.25% Series A, $38,788 aggregate liquidation preference; 1,551,500 shares issued and outstanding; 7.75% Series B, $31,500 aggregate liquidation preference; 1,260,000 shares issued and outstanding; 8.50% Series C, $22,500 aggregate liquidation preference; 900,000 shares issued and outstanding	89,501	89,502
Common stock, $0.01 par value: 500,000,000 shares authorized; 94,774,590 and 83,987,707 shares issued and outstanding, respectively	948	840
Additional paid-in capital	1,003,355	879,029
Accumulated deficit	(65,790)	(74,133)
Total Arbor Realty Trust, Inc. stockholders' equity	1,028,014	895,238
Noncontrolling interest	170,382	170,328
Total equity	1,198,396	1,065,566
Total liabilities and equity	$ 5,395,634	$ 4,612,175

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	94,774,590	83,987,707
Common stock, shares outstanding (in shares)	94,774,590	83,987,707
Assets	$ 5,395,634	$ 4,612,175
Liabilities	4,197,238	3,546,609
Consolidated variable interest entities
Assets	2,527,053	2,198,096
Liabilities	$ 1,950,970	$ 1,665,139
Special voting preferred shares
Preferred stock, shares issued (in shares)	20,484,094	20,653,584
Preferred stock, shares outstanding (in shares)	20,484,094	20,653,584
8.25% Series A preferred stock
Preferred stock, dividend rate (as a percent)	8.25%	8.25%
Preferred stock, aggregate liquidation preference	$ 38,788	$ 38,788
Preferred stock, shares issued (in shares)	1,551,500	1,551,500
Preferred stock, shares outstanding (in shares)	1,551,500	1,551,500
7.75% Series B preferred stock
Preferred stock, dividend rate (as a percent)	7.75%	7.75%
Preferred stock, aggregate liquidation preference	$ 31,500	$ 31,500
Preferred stock, shares issued (in shares)	1,260,000	1,260,000
Preferred stock, shares outstanding (in shares)	1,260,000	1,260,000
8.50% Series C preferred stock
Preferred stock, dividend rate (as a percent)	8.50%	8.50%
Preferred stock, aggregate liquidation preference	$ 22,500	$ 22,500
Preferred stock, shares issued (in shares)	900,000	900,000
Preferred stock, shares outstanding (in shares)	900,000	900,000

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$ 80,509	$ 67,500	$ 233,957	$ 178,408
Interest expense	48,064	39,548	138,213	110,819
Net interest income	32,445	27,952	95,744	67,589
Other revenue:
Gain on sales, including fee-based services, net	21,298	17,451	51,897	51,266
Mortgage servicing rights	29,911	25,216	62,852	62,787
Servicing revenue, net	13,790	14,244	39,954	34,662
Property operating income	2,237	2,651	8,187	8,525
Other income, net	(4,678)	(3,982)	(5,412)	(1,574)
Total other revenue	62,558	55,580	157,478	155,666
Other expenses:
Employee compensation and benefits	32,861	27,775	93,647	84,084
Selling and administrative	10,882	9,994	31,122	27,783
Property operating expenses	2,563	2,437	7,649	8,089
Depreciation and amortization	1,841	1,848	5,663	5,539
Impairment loss on real estate owned			1,000	2,000
Provision for loss sharing (net of recoveries)	735	2,019	1,557	2,840
Provision for loan losses (net of recoveries)		836		(967)
Litigation settlement gain		(10,170)		(10,170)
Total other expenses	48,882	34,739	140,638	119,198
Income before extinguishment of debt, income from equity affiliates and income taxes	46,121	48,793	112,584	104,057
Loss on extinguishment of debt		(4,960)	(128)	(4,960)
Income (loss) from equity affiliates	3,718	(1,028)	9,133	1,104
Provision for income taxes	(6,623)	(5,381)	(10,963)	(1,096)
Net income	43,216	37,424	110,626	99,105
Preferred stock dividends	1,888	1,888	5,665	5,665
Net income attributable to noncontrolling interest	7,363	7,799	19,429	22,347
Net income attributable to common stockholders	$ 33,965	$ 27,737	$ 85,532	$ 71,093
Basic earnings per common share (in dollars per share)	$ 0.36	$ 0.37	$ 0.95	$ 1.05
Diluted earnings per common share (in dollars per share)	$ 0.35	$ 0.36	$ 0.93	$ 1.03
Weighted average shares outstanding:
Basic (in shares)	94,486,839	74,802,582	89,899,074	67,490,132
Diluted (in shares)	117,468,044	98,435,964	113,033,968	91,133,607
Dividends declared per common share (in dollars per share)	$ 0.29	$ 0.25	$ 0.84	$ 0.71

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 43,216	$ 37,424	$ 110,626	$ 99,105
Reclassification of net unrealized gains on available-for-sale securities into accumulated deficit				(176)
Comprehensive income	43,216	37,424	110,626	98,929
Less:
Comprehensive income attributable to noncontrolling interest	7,363	7,799	19,429	22,303
Preferred stock dividends	1,888	1,888	5,665	5,665
Comprehensive income attributable to common stockholders	$ 33,965	$ 27,737	$ 85,532	$ 70,961

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit Preferred stock of private REIT	Accumulated Deficit	Accumulated Other Comprehensive Income	Total Arbor Realty Trust, Inc. Stockholders' Equity Preferred stock of private REIT	Total Arbor Realty Trust, Inc. Stockholders' Equity	Noncontrolling Interest	Preferred stock of private REIT	Total
Balance at Dec. 31, 2017	$ 89,508	$ 617	$ 707,450		$ (101,926)	$ 176		$ 695,825	$ 168,731		$ 864,556
Balance (in shares) at Dec. 31, 2017	24,942,269	61,723,387
Increase (Decrease) in Stockholders' Equity
Issuance of common stock		$ 65	55,843					55,908			55,908
Issuance of common stock (in shares)		6,452,700
Issuance of common stock from debt exchange		$ 68	74,322					74,390			74,390
Issuance of common stock from debt exchange (in shares)		6,820,196
Extinguishment of convertible senior unsecured notes			(66,518)					(66,518)			(66,518)
Issuance of convertible senior unsecured notes, net			9,436					9,436			9,436
Stock-based compensation		$ 7	4,831					4,838			4,838
Stock-based compensation (in shares)		691,015
Forfeiture of unvested restricted stock (in shares)		(2,334)
Distributions - common stock					(47,648)			(47,648)			(47,648)
Distributions - preferred stock					(5,665)			(5,665)			(5,665)
Distributions - preferred stock of private REIT				$ (11)			$ (11)			$ (11)
Distributions - noncontrolling interest									(15,074)		(15,074)
Redemption of operating partnership units									(6,845)		(6,845)
Net income					76,758			76,758	22,347		99,105
Reclassification of net unrealized gains on available-for-sale securities into accumulated deficit					176	$ (176)					(176)
Balance at Sep. 30, 2018	$ 89,508	$ 757	785,364		(78,316)			797,313	169,159		966,472
Balance (in shares) at Sep. 30, 2018	24,942,269	75,684,964
Balance at Jun. 30, 2018	$ 89,508	$ 686	766,933		(87,128)			769,999	173,513		943,512
Balance (in shares) at Jun. 30, 2018	24,942,269	68,570,617
Increase (Decrease) in Stockholders' Equity
Issuance of common stock from debt exchange		$ 68	74,322					74,390			74,390
Issuance of common stock from debt exchange (in shares)		6,820,196
Extinguishment of convertible senior unsecured notes			(66,518)					(66,518)			(66,518)
Issuance of convertible senior unsecured notes, net			9,436					9,436			9,436
Stock-based compensation		$ 3	1,191					1,194			1,194
Stock-based compensation (in shares)		294,985
Forfeiture of unvested restricted stock (in shares)		(834)
Distributions - common stock					(18,921)			(18,921)			(18,921)
Distributions - preferred stock					(1,888)			(1,888)			(1,888)
Distributions - preferred stock of private REIT				(4)			(4)			(4)
Distributions - noncontrolling interest									(5,308)		(5,308)
Redemption of operating partnership units									(6,845)		(6,845)
Net income					29,625			29,625	7,799		37,424
Balance at Sep. 30, 2018	$ 89,508	$ 757	785,364		(78,316)			797,313	169,159		966,472
Balance (in shares) at Sep. 30, 2018	24,942,269	75,684,964
Balance at Dec. 31, 2018	$ 89,502	$ 840	879,029		(74,133)			895,238	170,328		1,065,566
Balance (in shares) at Dec. 31, 2018	24,365,084	83,987,707
Increase (Decrease) in Stockholders' Equity
Issuance of common stock		$ 93	117,786					117,879			117,879
Issuance of common stock (in shares)		9,387,000
Repurchase of common stock		$ (9)	(11,565)					(11,574)			(11,574)
Repurchase of common stock (in shares)		(920,000)
Issuance of common stock upon vesting of restricted stock units		$ 2	(2,904)					(2,902)			(2,902)
Issuance of common stock upon vesting of restricted stock units (in shares)		203,492
Net settlement on vesting of restricted stock			(731)					(731)			(731)
Net settlement on vesting of restricted stock (in shares)		(58,070)
Issuance of common stock from convertible debt		$ 2	2,505					2,507			2,507
Issuance of common stock from convertible debt (in shares)		214,029
Extinguishment of convertible senior unsecured notes			(1,337)					(1,337)			(1,337)
Stock-based compensation		$ 8	7,566					7,574			7,574
Stock-based compensation (in shares)		818,443
Forfeiture of unvested restricted stock (in shares)		(18,120)
Issuance of common stock from special dividend		$ 9	10,070					10,079			10,079
Issuance of common stock from special dividend (in shares)		901,432
Issuance of operating partnership units and special voting preferred stock from special dividend	$ 2							2	2,476		2,478
Issuance of operating partnership units and special voting preferred stock from special dividend (in shares)	221,666
Distributions - common stock					(77,178)			(77,178)			(77,178)
Distributions - preferred stock					(5,665)			(5,665)			(5,665)
Distributions - preferred stock of private REIT				(11)			(11)			(11)
Distributions - noncontrolling interest									(17,242)		(17,242)
Redemption of operating partnership units	$ (3)	$ 3	2,936					2,936	(4,609)		(1,673)
Redemption of operating partnership units (in shares)	(391,156)	258,677
Net income					91,197			91,197	19,429		110,626
Balance at Sep. 30, 2019	$ 89,501	$ 948	1,003,355		(65,790)			1,028,014	170,382		1,198,396
Balance (in shares) at Sep. 30, 2019	24,195,594	94,774,590
Balance at Jun. 30, 2019	$ 89,501	$ 942	998,897		(72,321)			1,017,019	168,959		1,185,978
Balance (in shares) at Jun. 30, 2019	24,195,594	94,225,567
Increase (Decrease) in Stockholders' Equity
Issuance of common stock		$ 2	2,292					2,294			2,294
Issuance of common stock (in shares)		187,000
Net settlement on vesting of restricted stock			(146)					(146)			(146)
Net settlement on vesting of restricted stock (in shares)		(12,117)
Issuance of common stock from convertible debt (in shares)		3,563
Stock-based compensation		$ 4	2,312					2,316			2,316
Stock-based compensation (in shares)		370,577
Distributions - common stock					(27,431)			(27,431)			(27,431)
Distributions - preferred stock					(1,888)			(1,888)			(1,888)
Distributions - preferred stock of private REIT				$ (3)			$ (3)			$ (3)
Distributions - noncontrolling interest									(5,940)		(5,940)
Net income					35,853			35,853	7,363		43,216
Balance at Sep. 30, 2019	$ 89,501	$ 948	$ 1,003,355		$ (65,790)			$ 1,028,014	$ 170,382		$ 1,198,396
Balance (in shares) at Sep. 30, 2019	24,195,594	94,774,590

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 110,626	$ 99,105
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	5,663	5,539
Stock-based compensation	7,574	4,838
Amortization and accretion of interest and fees, net	3,113	8,758
Amortization of capitalized mortgage servicing rights	36,731	35,639
Originations of loans held-for-sale	(3,358,750)	(3,455,237)
Proceeds from sales of loans held-for-sale, net of gain on sale	3,301,918	3,254,490
Payoffs and paydowns of loans held-for-sale	75	30
Mortgage servicing rights	(62,852)	(62,787)
Write-off of capitalized mortgage servicing rights from payoffs	15,827	17,228
Impairment loss on real estate owned	1,000	2,000
Provision for loan losses (net of recoveries)		(967)
Provision for loss sharing (net of recoveries)	1,557	2,840
(Charge-offs) recoveries for loss-sharing obligations, net	(330)	54
Deferred tax benefit	(1,026)	(14,454)
Income from equity affiliates	(9,133)	(1,104)
Loss on extinguishment of debt	128	4,960
Changes in operating assets and liabilities	5,030	(96,468)
Net cash provided by (used in) operating activities	57,151	(195,536)
Investing Activities:
Loans and investments funded and originated, net	(1,895,092)	(1,163,908)
Payoffs and paydowns of loans and investments	1,243,791	688,032
Deferred fees	16,806	8,556
Investments in real estate, net	(207)	(309)
Contributions to equity affiliates	(9,140)	(2,480)
Distributions from equity affiliates		3,110
Purchases of securities held-to-maturity, net	(20,000)	(21,637)
Payoffs and paydowns of securities held-to-maturity	4,590	1,223
Proceeds from insurance settlements, net		493
Due to borrowers and reserves	(23,276)	(63,296)
Net cash used in investing activities	(682,528)	(550,216)
Financing activities:
Proceeds from repurchase agreements and credit facilities	6,866,169	6,376,333
Payoffs and paydowns of repurchase agreements and credit facilities	(6,616,055)	(5,734,858)
Payoffs and paydowns of collateralized loan obligations	(250,250)	(267,750)
Settlements of convertible senior unsecured notes	(3,149)
Exchange of convertible senior unsecured notes		(219,922)
Payoffs of senior unsecured notes		(97,860)
Payoff of related party financing		(50,000)
Proceeds from issuance of collateralized loan obligations	533,000	441,000
Proceeds from issuance of senior unsecured notes	90,000	125,000
Proceeds from issuance of convertible senior unsecured notes		264,500
Redemption of operating partnership units	(1,673)	(6,845)
Payments of withholding taxes on net settlement of vested stock	(3,634)
Proceeds from issuance of common stock	117,879	55,908
Distribution for the repurchase of common stock	(11,574)
Distributions paid on common stock	(77,178)	(47,648)
Distributions paid on noncontrolling interest	(17,242)	(15,074)
Distributions paid on preferred stock	(5,665)	(5,665)
Distributions paid on preferred stock of private REIT	(11)	(11)
Payment of deferred financing costs	(10,578)	(19,794)
Net cash provided by financing activities	610,039	797,314
Net (decrease) increase in cash, cash equivalents and restricted cash	(15,338)	51,562
Cash, cash equivalents and restricted cash at beginning of period	340,669	243,772
Cash, cash equivalents and restricted cash at end of period	325,331	295,334
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period	160,063	104,374
Restricted cash at beginning of period	180,606	139,398
Cash, cash equivalents and restricted cash at beginning of period	340,669	243,772
Cash and cash equivalents at end of period	135,285	92,598
Restricted cash at end of period	190,046	202,736
Cash, cash equivalents and restricted cash at end of period	325,331	295,334
Supplemental cash flow information:
Cash used to pay interest	121,972	82,140
Cash used to pay taxes	15,686	16,551
Supplemental schedule of non-cash investing and financing activities:
Special dividend - common stock issued	10,079
Redemption of operating partnership units for common stock	2,939
Issuance of common stock from convertible debt	2,507
Special dividend - special voting preferred stock and operating partnership units issued	2,478
Settlements of convertible senior unsecured notes	1,337
Fair value of conversion feature of convertible senior unsecured notes	1,175	9,750
Issuance of common stock from debt exchange		74,322
Extinguishment of convertible senior unsecured notes		(66,518)
8.25% Series A preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	267	267
7.75% Series B preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	203	203
8.50% Series C preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	$ 159	$ 159

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2019
Description of Business
Description of Business	Note 1 — Description of Business Arbor Realty Trust, Inc. (“we,” “us,” or “our”) is a Maryland corporation formed in 2003. We operate through two business segments: our Structured Loan Origination and Investment Business ("Structured Business”) and our Agency Loan Origination and Servicing Business ("Agency Business”). Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily , single-family rental and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. We may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac," and together with Fannie Mae, the government-sponsored enterprises, or the "GSEs"), the Government National Mortgage Association ("Ginnie Mae"), Federal Housing Authority ("FHA") and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, "HUD”). We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing ("DUS") lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer, in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and small balance loan ("SBL") lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. Through our Agency Business, we also originate and sell finance products through conduit/commercial mortgage-backed securities ("CMBS") programs and in the third quarter of 2019, we began to originate and service long-term permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as "Private Label" loans. We intend to pool and securitize the Private Label loans and sell the securities in securitizations to third-parties. Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the general partner, and ARLP’s subsidiaries. We are organized to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Certain of our assets that produce non-qualifying income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS”), which is part of our TRS consolidated group (the “TRS Consolidated Group”) and is subject to U.S. federal, state and local income taxes. See Note 17 for details.

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Note 2 — Basis of Presentation and Significant Accounting Policies

Basis of Presentation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2018 Annual Report.

Principles of Consolidation

These consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we own a controlling interest, including variable interest entities (“VIEs”) of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Significant Accounting Policies

See Item 8 — Financial Statements and Supplementary Data in our 2018 Annual Report for a description of our significant accounting policies. Upon the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) in the first quarter of 2019, we adopted the following significant accounting policy:

Leases. We determine if an arrangement is a lease at inception. Our right to use an underlying asset for the lease term is recorded as operating lease right-of-use (“ROU”) assets and our obligation to make lease payments arising from the lease are recorded as lease liabilities. The operating lease ROU assets and lease liabilities are included in other assets and other liabilities, respectively, in our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. At the adoption date, we made an accounting policy election to exclude leases with an initial term of twelve months or less.

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
ASU 2016-02, Leases (Topic 842) requires lessees to record most leases on their balance sheet through operating and finance lease liabilities and corresponding ROU assets, as well as adding additional footnote disclosures of key information about those arrangements. ASU 2018-11, Leases (Topic 842) -Targeted Improvements provides transition relief on comparative period reporting through a cumulative-effect adjustment at the beginning of the period of adoption ("Effective Date Method").	First quarter of 2019	We adopted this guidance using the Effective Date Method and elected the group of optional practical expedients, therefore, comparative reporting periods have not been adjusted and are reported under the previous accounting guidance. Upon adoption, we recorded an operating lease ROU asset and corresponding lease liability of $20.1 million, which are included as other assets and other liabilities in our consolidated balance sheets.We also added the required footnote disclosures in Note 14.

ASU 2018-07, Compensation—Stock Compensation expands the scope of ASC Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements.

ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities better aligns risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements. We will apply this guidance to future hedging activities.

Recently Issued Accounting Pronouncements

Description		Effective Date		Effect on Financial Statements
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses.		First quarter of 2020 with early adoption permitted beginning in the first quarter of 2019		We continue to evaluate the impact the adoption of this guidance will have on our consolidated financial statements and disclosures. As part of our evaluation process, we have established a task force that includes individuals from various functional areas and are in the process of updating our accounting policies, procedures and gathering data. Although our evaluation is not finalized, we expect the adoption of this guidance will result in an increased amount of provision for potential credit loss related to our Structured Business loan and investment portfolio, held-to-maturity debt securities and loss-sharing obligations related to the Fannie Mae DUS program.

Loans and Investments

9 Months Ended

Sep. 30, 2019

Loans and Investments

Loans and Investments

Note 3 — Loans and Investments

Our Structured Business loan and investment portfolio consists of ($ in thousands):


								Wtd. Avg.
								Remaining	Wtd. Avg.		Wtd. Avg.
			Percent of		Loan	Wtd. Avg.		Months to	First Dollar		Last Dollar
	September 30, 2019		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	3,539,462	89	%	185	6.08	%	17.3	0	%	74	%
Mezzanine loans		217,698	6	%	22	10.36	%	28.8	24	%	74	%
Preferred equity investments		167,780	4	%	9	7.27	%	74.5	69	%	90	%
Other (4)		36,769	1	%	11	2.08	%	64.4	0	%	70	%
		3,961,709	100	%	227	6.33	%	20.8	4	%	75	%
Allowance for loan losses		(71,069)
Unearned revenue		(16,571)
Loans and investments, net	$	3,874,069


	December 31, 2018
Bridge loans	$	2,992,814	91	%	167	6.84	%	18.5	0	%	74	%
Mezzanine loans		108,867	3	%	13	10.57	%	22.1	28	%	72	%
Preferred equity investments		181,661	6	%	10	7.97	%	78.0	66	%	89	%
		3,283,342	100	%	190	7.02	%	22.0	5	%	75	%
Allowance for loan losses		(71,069)
Unearned revenue		(12,128)
Loans and investments, net	$	3,200,145

(1)

“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)

The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(3)

The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

(4)

Included within bridge loans are three single-family rental loans with an aggregate UPB of $65.5 million, of which $25.6 million was funded, and included within other are three single-family rental permanent loans with an aggregate UPB of $14.6 million.

Concentration of Credit Risk

We are subject to concentration risk in that, at September 30, 2019, the UPB related to 21 loans with five different borrowers represented 17% of total assets. At December 31, 2018, the UPB related to 45 loans with five different borrowers represented 22% of total assets. During both the nine months ended September 30, 2019 and the year ended December 31, 2018, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 18 for details on our concentration of related party loans and investments.

We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality.

Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the loan agreement, and is not considered impaired. A risk rating of substandard indicates we anticipate the loan may require a modification of some kind. A risk rating of doubtful indicates we expect the loan to underperform over its term, and there could be loss of interest and/or principal. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, market strength or asset quality may result in a rating that is higher or lower than might be indicated by any risk rating matrix.

As a result of the loan review process, at September 30, 2019 and December 31, 2018, we identified eight loans and investments that we consider higher-risk loans that had a carrying value, before loan loss reserves, of $128.2 million and $128.7 million, respectively, and a weighted average last dollar LTV ratio of 99% for both periods.

A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands):


	September 30, 2019
					Wtd. Avg.	Wtd. Avg.		Wtd. Avg.
			Percentage		Internal Risk	First Dollar		Last Dollar
Asset Class	UPB		of Portfolio		Rating	LTV Ratio		LTV Ratio
Multifamily	$	3,032,379	77	%	pass/watch	5	%	76	%
Self Storage		233,757	6	%	special mention	3	%	72	%
Land		227,488	6	%	special mention	0	%	86	%
Healthcare		152,625	4	%	pass/watch	0	%	75	%
Office		132,022	3	%	special mention	3	%	66	%
Hotel		92,300	2	%	pass/watch	0	%	62	%
Retail		49,284	1	%	pass/watch	6	%	62	%
Single-Family Rental		40,154	1	%	pass/watch	0	%	66	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	3,961,709	100	%	pass/watch	4	%	75	%


	December 31, 2018
					Wtd. Avg.	Wtd. Avg.		Wtd. Avg.
			Percentage		Internal Risk	First Dollar		Last Dollar
Asset Class	UPB		of Portfolio		Rating	LTV Ratio		LTV Ratio
Multifamily	$	2,427,920	74	%	pass/watch	5	%	75	%
Self Storage		301,830	9	%	pass/watch	0	%	72	%
Land		151,628	5	%	substandard	0	%	90	%
Healthcare		122,775	4	%	pass/watch	0	%	77	%
Office		132,047	4	%	special mention	3	%	68	%
Hotel		100,075	3	%	pass/watch	13	%	66	%
Retail		45,367	1	%	pass/watch	6	%	65	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	3,283,342	100	%	pass/watch	5	%	75	%

Geographic Concentration Risk

As of September 30, 2019, 21% and 14% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. As of December 31, 2018, 23% and 18% of the outstanding balance of our loan and investment portfolio had underlying properties in New York and Texas, respectively. No other states represented 10% or more of the total loan and investment portfolio.

Impaired Loans and Allowance for Loan Losses

A summary of the changes in the allowance for loan losses is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Allowance at beginning of period	$	71,069	$	58,733	$	71,069	$	62,783
Provision for loan losses		—		2,218		—		3,868
Charge-offs		—		—		—		(2,527)
Recoveries of reserves		—		—		—		(3,173)
Allowance at end of period	$	71,069	$	60,951	$	71,069	$	60,951

During the three and nine months ended September 30, 2018, we determined that the fair value of the underlying collateral (land development project) securing six loans with a carrying value of $121.4 million was less than the net carrying value of the loans, which resulted in a provision for loan losses of $0.5 million and $2.2 million, respectively.In addition, we fully reserved a bridge loan and recorded a provision for loan loss of $1.7 million during the three and nine months ended September 30, 2018.

During the nine months ended September 30, 2018, we received $31.6 million to settle a non-performing preferred equity investment in a hotel property with a UPB of $34.8 million and a net carrying value of $29.1 million, resulting in a reserve recovery of $2.5 million and a charge-off of $3.2 million. In addition, during the three and nine months ended September 30, 2018, we received payments and recorded reserve recoveries of $1.4 million and $2.3 million, respectively, related to previously written-off loans and investments.

The ratio of net recoveries to the average loans and investments outstanding was 0.1% for the nine months ended September 30, 2018 and de minimis for all other periods presented.

There were no loans for which the fair value of the collateral securing the loan was less than the carrying value of the loan for which we had not recorded a provision for loan loss as of September 30, 2019 and 2018.

We have six loans with a carrying value totaling $120.9 million at September 30, 2019 that are collateralized by a land development project. These loans were scheduled to mature in September 2019 and were extended to March 2020. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $111.5 million entitle us to a weighted average accrual rate of interest of 8.86%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At both September 30, 2019 and December 31, 2018, we had cumulative allowances for loan losses of $61.4 million related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development's outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is in compliance with all of the terms and conditions of the loans.

A summary of our impaired loans by asset class is as follows (in thousands):


	September 30, 2019						Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
			Carrying		Allowance for		Average Recorded		Interest Income		Average Recorded		Interest Income
Asset Class	UPB		Value (1)		Loan Losses		Investment (2)		Recognized		Investment (2)		Recognized
Land	$	134,215	$	127,386	$	67,869	$	134,215	$	27	$	134,215	$	82
Office		2,241		2,241		1,500		2,246		34		2,254		101
Commercial		1,700		1,700		1,700		1,700		—		1,700		—
Total	$	138,156	$	131,327	$	71,069	$	138,161	$	61	$	138,169	$	183


	December 31, 2018						Three Months Ended September 30, 2018				Nine Months Ended September 30, 2018
Land	$	134,215	$	127,869	$	67,869	$	133,387	$	26	$	132,651	$	75
Hotel		—		—		—		—		—		17,375		—
Office		2,266		2,266		1,500		2,277		33		2,281		93
Commercial		1,700		1,700		1,700		1,700		—		1,700		—
Total	$	138,181	$	131,835	$	71,069	$	137,364	$	59	$	154,007	$	168

(1)

Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both September 30, 2019 and December 31, 2018.

(2)

Represents an average of the beginning and ending UPB of each asset class.

At September 30, 2019, three loans with an aggregate net carrying value of $1.8 million, net of related loan loss reserves of $1.7 million, were classified as non-performing. At December 31, 2018, two loans with an aggregate net carrying value of $0.8 million, net of related loan loss reserves of $1.7 million, were classified as non-performing. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced.

A summary of our non-performing loans by asset class is as follows (in thousands):


	September 30, 2019						December 31, 2018
					Greater				Less Than 90		Greater Than
	Carrying		Less Than 90		Than 90 Days		Carrying		Days Past		90 Days Past
Asset Class	Value		Days Past Due		Past Due		Value		Due		Due
Commercial	$	1,700	$	—	$	1,700	$	1,700	$	—	$	1,700
Retail		990		—		990		—		—		—
Office		833		—		833		832		—		832
Total	$	3,523	$	—	$	3,523	$	2,532	$	—	$	2,532

At both September 30, 2019 and December 31, 2018, there were no loans contractually past due 90 days or more that were still accruing interest.

There were no loan modifications, refinancing's and/or extensions during both the nine months ended September 30, 2019 and 2018 that were considered troubled debt restructurings.

Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. At September 30, 2019 and December 31, 2018, we had total interest reserves of $40.4 million and $48.9 million, respectively, on 126 loans and 110 loans, respectively, with an aggregate UPB of $2.50 billion and $2.22 billion, respectively.

Loans Held-for-Sale, Net

9 Months Ended

Sep. 30, 2019

Loans Held-for-Sale, Net

Loans Held-for-Sale, Net

Note 4 — Loans Held-for-Sale, Net

Loans held-for-sale, net consists of the following (in thousands):


	September 30, 2019		December 31, 2018
Fannie Mae	$	383,963	$	358,790
Freddie Mac		63,250		95,004
FHA		1,769		19,170
Private Label		80,740		—
		529,722		472,964
Fair value of future MSR		10,364		10,253
Unearned discount		(2,260)		(1,553)
Loans held-for-sale, net	$	537,826	$	481,664

Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our Private Label loans are expected to be sold and securitized within 120 days of loan origination. During the three and nine months ended September 30, 2019, we sold $1.49 billion and $3.51 billion, respectively, of loans held-for-sale and recorded gain on sales of $20.1 million and $48.1 million, respectively. During the three and nine months ended September 30, 2018, we sold $1.19 billion and $3.27 billion, respectively, of loans held-for-sale and recorded gain on sales of $15.9 million and $48.1 million, respectively. At September 30, 2019 and December 31, 2018, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status.

Capitalized Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2019

Capitalized Mortgage Servicing Rights

Capitalized Mortgage Servicing Rights

Note 5 — Capitalized Mortgage Servicing Rights

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived from loans sold in our Agency Business. The discount rates used to determine the present value of our MSRs throughout the periods presented for all MSRs were between 8% - 15% (representing a weighted average discount rate of 12%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 7.8 years and 7.6 years at September 30, 2019 and December 31, 2018, respectively.

A summary of our capitalized MSR activity is as follows (in thousands):


	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	Acquired		Originated		Total		Acquired		Originated		Total
Balance at beginning of period	$	79,492	$	197,156	$	276,648	$	97,084	$	176,686	$	273,770
Additions		—		25,945		25,945		—		62,477		62,477
Amortization		(5,041)		(7,084)		(12,125)		(16,502)		(20,229)		(36,731)
Write-downs and payoffs		(3,008)		(3,772)		(6,780)		(9,139)		(6,689)		(15,828)
Balance at end of period	$	71,443	$	212,245	$	283,688	$	71,443	$	212,245	$	283,688


	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
Balance at beginning of period	$	120,017	$	137,004	$	257,021	$	143,270	$	109,338	$	252,608
Additions		—		21,368		21,368		—		59,660		59,660
Amortization		(7,052)		(4,786)		(11,838)		(22,564)		(13,075)		(35,639)
Write-downs and payoffs		(4,419)		(2,731)		(7,150)		(12,160)		(5,068)		(17,228)
Balance at end of period	$	108,546	$	150,855	$	259,401	$	108,546	$	150,855	$	259,401

We collected prepayment fees totaling $5.3 million and $13.8 million during the three and nine months ended September 30, 2019, respectively, and $7.5 million and $16.2 million during the three and nine months ended September 30, 2018, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. As of September 30, 2019 and December 31, 2018, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of September 30, 2019 is as follows (in thousands):


Year	Amortization
2019 (three months ending 12/31/2019)	$	12,132
2020		46,371
2021		42,044
2022		36,519
2023		31,735
2024		27,448
Thereafter		87,439
Total	$	283,688

Actual amortization may vary from these estimates.

Mortgage Servicing

9 Months Ended

Sep. 30, 2019

Mortgage Servicing

Mortgage Servicing

Note 6 — Mortgage Servicing

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):


September 30, 2019
Product Concentrations					Geographic Concentrations
						UPB
			Percent of			Percentage
Product	UPB		Total		State	of Total
Fannie Mae	$	14,616,816	73	%	Texas	19	%
Freddie Mac		4,664,750	23	%	North Carolina	9	%
FHA		684,316	4	%	New York	9	%
Total	$	19,965,882	100	%	California	9	%
					Georgia	6	%
					Florida	6	%
					Other (1)	42	%
					Total	100	%


December 31, 2018
Fannie Mae	$	13,562,667	73	%	Texas	20	%
Freddie Mac		4,394,287	24	%	North Carolina	10	%
FHA		644,687	3	%	New York	8	%
Total	$	18,601,641	100	%	California	8	%
					Georgia	6	%
					Florida	6	%
					Other (1)	42	%
					Total	100	%

(1)

No other individual state represented 4% or more of the total.

At September 30, 2019 and December 31, 2018, our weighted average servicing fee was 43.5 basis points and 45.2 basis points, respectively. At September 30, 2019 and December 31, 2018, we held total escrow balances of $958.4 million and $824.1 million, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $553.3 million and $521.2 million at September 30, 2019 and December 31, 2018, respectively, related to loans we are servicing within our Agency Business. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, was $4.7 million and $12.9 million during the three and nine months ended September 30, 2019, respectively, and $3.7 million and $8.6 million during the three and nine months ended September 30, 2018, respectively, and is a component of servicing revenue, net in the consolidated statements of income.

Securities Held-to-Maturity

9 Months Ended

Sep. 30, 2019

Securities Held-to-Maturity

Securities Held-to-Maturity

Note 7 — Securities Held-to-Maturity

Agency B Piece Bonds . Freddie Mac may choose to hold, sell or securitize loans we sell to them under the Freddie Mac SBL program. As part of the securitizations under the SBL program, we have the option to purchase through a bidding process the bottom tranche bond, generally referred to as the “B Piece,” that represents the bottom 10%, or highest risk, of the securitization. As of September 30, 2019, we retained 49%, or $106.2 million initial face value, of seven B Piece bonds, which were purchased at a discount for $74.7 million, and sold the remaining 51% to a third-party at par. These securities are collateralized by a pool of multifamily mortgage loans, bear interest at an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 5.5 years. The weighted average effective interest rate was 10.58% and 10.94% at September 30, 2019 and December 31, 2018, respectively, including the accretion of discount. Approximately $16.3 million is estimated to mature within one year, $43.3 million is estimated to mature after one year through five years, $24.6 million is estimated to mature after five years through ten years and $14.7 million is estimated to mature after ten years.

Structured Single -Family Rental Bonds (“SFR bonds”). During the nine months ended September 30, 2019, we purchased $20.0 million initial face value of Class A2 securitized SFR bonds at par, which are collateralized by a pool of single-family rental properties. These securities have a three-year maturity, bear interest at a weighted average fixed interest rate of 4.58% and have an estimated weighted average remaining maturity of 0.6 years. Approximately $18.1 million is estimated to mature within one year and $1.9 million is estimated to mature after one year through five years.

A summary of our securities held-to-maturity is as follows (in thousands):


			Carrying		Unrealized		Estimated
Period	Face Value		Value		Gain		Fair Value
September 30, 2019	$	118,925	$	95,181	$	2,737	$	97,918

December 31, 2018	$	103,515	$	76,363	$	2,734	$	79,097

As of September 30, 2019, no impairment was recorded on our held-to-maturity securities. During the three and nine months ended September 30, 2019, we recorded interest income (including the amortization of discount) of $2.3 million and $6.8 million, respectively and, during the three and nine months ended September 30, 2018, we recorded interest income of $0.6 million and $1.7 million, respectively, related to these investments.

Investments in Equity Affiliates

9 Months Ended

Sep. 30, 2019

Investments in Equity Affiliates

Investments in Equity Affiliates

Note 8 — Investments in Equity Affiliates

We account for all investments in equity affiliates under the equity method. A summary of our investments in equity affiliates is as follows (in thousands):


					UPB of Loans to
	Investments in Equity Affiliates at				Equity Affiliates at
Equity Affiliates	September 30, 2019		December 31, 2018		September 30, 2019
Arbor Residential Investor LLC	$	25,491	$	19,260	$	—
AMAC Holdings III LLC		8,887		—		—
Lightstone Value Plus REIT L.P		1,895		1,895		—
JT Prime		425		425		—
West Shore Café		—		—		1,688
Lexford Portfolio		—		—		30,470
East River Portfolio		—		—		—
Total	$	36,698	$	21,580	$	32,158

Arbor Residential Investor LLC (“ARI”). During the three and nine months ended September 30, 2019, we recorded income of $2.6 million and $6.1 million, respectively, and during the three and nine months ended September 30, 2018, we recorded income of $0.4 million and $1.2 million, respectively, to income (loss) from equity affiliates in our consolidated statements of income. In the first quarter of 2018, we made a $2.4 million payment for our proportionate share of a litigation settlement related to this investment, which was distributed back to us by our equity affiliate.

During the nine months ended September 30, 2018, we received cash distributions totaling $0.7 million (which were classified as returns of capital) in connection with a joint venture that invests in non-qualified residential mortgages purchased from ARI’s origination platform.

AMAC Holdings III LLC ("AMAC III"). In the first quarter of 2019, we committed to a $30.0 million investment (of which $9.0 million was funded as of September 30, 2019) for an 18% interest in a multifamily-focused commercial real estate investment fund that is sponsored and managed by our chief executive officer and one of his immediate family members.

Lexford Portfolio. During the three and nine months ended September 30, 2019, we received distributions of $1.2 million and $3.0 million, respectively, and during the three and nine months ended September 30, 2018, we received distributions of $0.7 million and $1.9 million, respectively, from this equity investment, which was recognized as income.

West Shore Café. We own a 50% noncontrolling interest in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California. We provided a $1.7 million first mortgage loan to an affiliated entity to acquire property adjacent to the original property, which is scheduled to mature in March 2020 and bears interest at LIBOR plus 4.0%. Current accounting guidance requires investments in equity affiliates to be evaluated periodically to determine whether a decline in their value is other-than-temporary, though it is not intended to indicate a permanent decline in value. During the third quarter of 2018, we determined that this investment exhibited indicators of impairment and, as a result of an impairment analysis performed; we recorded an other-than-temporary impairment of $2.2 million for the full carrying amount of this investment, which was recorded in income (loss) from equity affiliates in the consolidated statement of income. In addition, during the third quarter of 2018, we recorded a provision for loan loss of $1.7 million, fully reserving the first mortgage loan.

See Note 18 for details of certain investments described above.

Real Estate Owned

9 Months Ended

Sep. 30, 2019

Real Estate Owned

Real Estate Owned

Note 9 — Real Estate Owned

Real Estate Owned. Our real estate assets at both September 30, 2019 and December 31, 2018 were comprised of a hotel property and an office building.


	September 30, 2019						December 31, 2018
	Hotel		Office				Hotel		Office
(in thousands)	Property		Building		Total		Property		Building		Total
Land	$	3,294	$	4,509	$	7,803	$	3,294	$	4,509	$	7,803
Building and intangible assets		31,272		2,010		33,282		31,066		2,010		33,076
Less: Impairment loss		(14,307)		(2,500)		(16,807)		(13,307)		(2,500)		(15,807)
Less: Accumulated depreciation and amortization		(10,182)		(967)		(11,149)		(9,778)		(848)		(10,626)
Real estate owned, net	$	10,077	$	3,052	$	13,129	$	11,275	$	3,171	$	14,446

For the nine months ended September 30, 2019 and 2018, our hotel property had a weighted average occupancy rate of 58% and 54%, respectively, a weighted average daily rate of $112 and $113, respectively, and weighted average revenue per available room of $65 and $61, respectively. The operation of a hotel property is seasonal with the majority of revenues earned in the first two quarters of the calendar year. During the second quarter of 2019, based on discussions with market participants, we determined that the hotel property exhibited indicators of impairment and performed an impairment analysis. As a result of this analysis, we recorded an impairment loss of $1.0 million.

Our office building was fully occupied by a single tenant until April 2017 when the lease expired. The building is currently vacant. During the second quarter of 2018, based on discussions with market participants, we determined that the office building exhibited indicators of impairment and performed an impairment analysis. As a result of this analysis, we recorded an impairment loss of $2.0 million.

Our real estate owned assets had restricted cash balances due to escrow requirements totaling $0.5 million at both September 30, 2019 and December 31, 2018.

Debt Obligations

9 Months Ended

Sep. 30, 2019

Debt Obligations

Debt Obligations

Note 10 — Debt Obligations

Credit Facilities and Repurchase Agreements

Borrowings under our credit facilities and repurchase agreements are as follows ($ in thousands):


									September 30, 2019							December 31, 2018
									Debt		Collateral					Debt		Collateral
	Current	Extended							Carrying		Carrying		Wtd. Avg.			Carrying		Carrying		Wtd. Avg.
	Maturity	Maturity	Note Rate						Value (1)		Value		Note Rate			Value (1)		Value		Note Rate
Structured Business
$550 million repurchase facility	Mar. 2020	Mar. 2021	L+	1.75	%	to	3.50	%	$	249,334	$	377,445		4.31	%	$	334,696	$	467,680	4.75	%
$300 million repurchase facility	June 2020	Mar. 2023	L+	1.95	%		—			240,173		324,627		4.02	%		—		—	—
$200 million repurchase facility	Aug. 2020	N/A	L+	2.40	%					12,917		14,596		4.48	%		—		—	—
$100 million repurchase facility	June 2020	N/A	L+	1.75	%	to	1.95	%		12,680		17,416		3.82	%		70,837		98,597	4.31	%
$75 million credit facility	May 2020	May 2023	L+	1.75	%	to	2.50	%		47,838		73,764		3.82	%		10,237		16,889	4.31	%
$75 million credit facility	June 2020	N/A	L+	1.75	%					—		—		—			—		—	—
$50 million credit facility	April 2020	April 2022	L+	2.00	%					—		—		—			14,159		17,700	4.57	%
$50 million credit facility	Sept. 2020	Sept. 2021	L+	2.50	%	to	3.25	%		5,261		6,600		4.58	%		—		—	—
$40.5 million credit facility	May 2022	N/A	L+	2.20	%					40,391		54,000		4.27	%		—		—	—
$35.9 million credit facility	May 2020	Nov. 2020	L+	2.30	%					30,772		51,300		4.38	%		30,512		44,100	4.87	%
$25.5 million credit facility	July 2020	N/A	L+	2.50	%					23,923		34,000		4.58	%		18,552		34,000	5.07	%
$25 million credit facility	June 2022	June 2023	L+	2.25	%					14,506		22,172		4.32	%		—		—	—
$25 million working capital facility	Aug. 2020	N/A	L+	2.25	%					—		—		—			—		—	—
$23.2 million credit facility	Feb. 2020	Feb. 2021	L+	2.30	%					23,113		30,900		4.38	%		23,175		30,900	4.87	%
$20 million credit facility	Mar. 2020	Mar. 2021	L+	2.50	%					17,974		41,650		4.58	%		19,912		41,650	5.07	%
$17.4 million credit facility	June 2020	June 2021	L+	2.40	%					14,196		21,700		4.48	%		12,462		15,844	4.97	%
$11.9 million credit facility	April 2022	N/A	L+	2.10	%					11,826		15,190		4.17	%		—		—	—
$8 million credit facility	Aug. 2021	N/A	L+	2.50	%					—		—		—			7,946		10,000	5.07	%
$3.3 million master security agreement	Oct. 2020	N/A		2.96	%	to	3.42	%		655		—		3.18	%		1,168		—	3.19	%
$2.2 million master security agreement	Mar. 2021	N/A		4.60	%		—			1,138		—		4.66	%		1,678		—	4.66	%
Repurchase facilities - securities (2)	N/A	N/A	L+	1.25	%	to	2.50	%		177,820		—		4.20	%		118,112		—	5.07	%
Structured Business total										924,517		1,085,360		4.20	%		663,446		777,360	4.78	%

Agency Business
$750 million ASAP agreement (3)	N/A	N/A	L+	1.05	%					228,727		228,727		3.07	%		104,619		104,619	3.55	%
$500 million repurchase facility (4)	Oct. 2019	N/A	L+	1.275	%					45,079		45,082		3.36	%		130,906		130,917	3.78	%
$250 million credit facility (5)	June 2020	N/A	L+	1.15	%					43,368		43,368		3.17	%		26,651		26,651	3.75	%
$150 million credit facility	Jan. 2020	N/A	L+	1.15	%					102,822		102,888		3.17	%		113,666		113,685	3.80	%
$150 million credit facility	July 2020	N/A	L+	1.15	%					41,251		41,364		3.17	%		96,339		96,419	3.80	%
Agency Business total										461,247		461,429		3.14	%		472,181		472,291	3.74	%
Consolidated total									$	1,385,764	$	1,546,789		3.85	%	$	1,135,627	$	1,249,651	4.35	%

(1)

The debt carrying value for the Structured Business at September 30, 2019 and December 31, 2018 was net of unamortized deferred finance costs of $2.3 million and $2.4 million, respectively. The debt carrying value for the Agency Business at September 30, 2019 and December 31, 2018 was net of unamortized deferred finance costs of $0.2 million and $0.1 million, respectively.

(2)

As of September 30, 2019 and December 31, 2018, these facilities were collateralized by CLO bonds retained by us with a principal balance of $183.3 million and $114.2 million, respectively, B Piece bonds with a carrying value of $75.2 million and $76.4 million, respectively, and SFR bonds with a carrying value of $20.0 million at September 30, 2019.

(3)

The note rate under this agreement is subject to a LIBOR Floor of 35 basis points.

(4)

This facility included an accordion feature to increase the committed amount to $750.0 million, which was available through the October 2019 maturity date. This facility was amended in October 2019 to extend the maturity to October 2020, reduce the interest rate to 115 basis points over LIBOR and remove the accordion feature.

(5)

In August 2019, the committed amount under the facility was temporarily increased $150.0 million to $250.0 million, which expires in January 2020.

Structured Business

At September 30, 2019 and December 31, 2018, the weighted average interest rate for the credit facilities and repurchase agreements of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 4.61% and 5.07%, respectively. The leverage on our loan and investment portfolio financed through our credit facilities and repurchase agreements, excluding the securities repurchase facilities, working capital facility and the master security agreements used to finance leasehold and capital expenditure improvements at our corporate office, was 69% and 70% at September 30, 2019 and December 31, 2018, respectively.

During the nine months ended September 30, 2019, we amended a $300.0 million repurchase agreement on two separate occasions, permanently increasing the committed amount to $500.0 million. In addition, the amendment provided for a temporary over advance of $50.0 million, which expired in October 2019.

In March 2019, we entered into a $150.0 million repurchase agreement used to finance loans that bears interest at a rate of 195 basis points over LIBOR and was scheduled to mature in March 2020. In June 2019, we amended this facility increasing the committed amount to $300.0 million and extending the maturity date to June 2020, with quarterly extension options having an extended maturity date no later than March 2023.

In April 2019, we entered into an $11.9 million credit facility used to finance a multifamily bridge loan. The facility bears interest at a rate of 210 basis points over LIBOR and matures in April 2022.

In May 2019, we entered into an uncommitted repurchase facility that is used to finance securities retained in connection with our CLO issuances and our purchases of the B Piece bonds from SBL program securitizations and SFR bonds. The facility bears interest at rates ranging from 175 basis points to 200 basis points over LIBOR and has no stated maturity date.

In June 2019, we entered into a $40.5 million credit facility used to finance a multifamily bridge loan. The facility bears interest at a rate of 220 basis points over LIBOR and matures in May 2022.

In June 2019, we entered into a $25.0 million credit facility used to purchase loans. The facility bears interest at a rate of 225 basis points over LIBOR and matures in June 2022, with a one-year extension option.

In August 2019, we entered into a $200.0 million repurchase facility used to finance single-family rental properties that bears interest at a rate of 240 basis points over LIBOR and matures in August 2020, with six-month extension options in perpetuity.

In September 2019, we entered into an uncommitted repurchase facility that will be used to finance securities retained in connection with our CLO issuances and our purchases of the B Piece bonds from SBL program securitizations and SFR bonds. The facility bears interest at rates ranging from 120 basis points to 150 basis points over LIBOR and has no stated maturity date.

Agency Business

During the nine months ended September 30, 2019, we amended two of our credit facilities by reducing the interest rate on each facility by 10 basis points and we amended another facility by reducing the interest rate by 15 basis points.

Collateralized Loan Obligations (“CLOs”)

We account for CLO transactions on our consolidated balance sheet as financing facilities. Our CLOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade tranches are treated as secured financings, and are non-recourse to us.

Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands):


							Collateral (3)
	Debt						Loans				Cash
			Carrying		Wtd. Avg.				Carrying		Restricted
September 30, 2019	Face Value		Value (1)		Rate (2)		UPB		Value		Cash (4)
CLO XI	$	533,000	$	528,404	3.51	%	$	637,336	$	634,052	$	—
CLO X		441,000		437,129	3.51	%		519,893		518,256		32,041
CLO IX		356,400		353,149	3.43	%		411,415		410,554		44,127
CLO VIII		282,874		280,785	3.38	%		346,806		345,774		13,734
CLO VII		279,000		277,433	4.07	%		337,264		335,693		10,061
Total CLOs	$	1,892,274	$	1,876,900	3.56	%	$	2,252,714	$	2,244,329	$	99,963


December 31, 2018
CLO X	$	441,000	$	436,384	4.01	%	$	539,007	$	536,869	$	20,993
CLO IX		356,400		352,244	3.92	%		440,906		439,691		20,094
CLO VIII		282,874		279,857	3.87	%		354,713		353,574		10,287
CLO VII		279,000		276,527	4.56	%		325,057		324,195		30,725
CLO VI		250,250		248,536	5.05	%		279,348		278,364		41,404
Total CLOs	$	1,609,524	$	1,593,548	4.22	%	$	1,939,031	$	1,932,693	$	123,503

(1)

Debt carrying value is net of $15.4 million and $16.0 million of deferred financing fees at September 30, 2019 and December 31, 2018, respectively.

(2)

At September 30, 2019 and December 31, 2018, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.97% and 4.73%, respectively.

(3)

As of September 30, 2019 and December 31, 2018, there was no collateral at risk of default or deemed to be a “credit risk” as defined by the CLO indenture.

(4)

Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $63.8 million.

CLO XI — In June 2019, we completed a collateralized securitization vehicle (“CLO XI”), issuing eight tranches of CLO notes through two newly-formed wholly-owned subsidiaries totaling $602.1 million. Of the total CLO notes issued, $533.0 million were investment grade notes issued to third party investors and $69.1 million were below investment grade notes retained by us. As of the CLO closing date, the notes were secured by a portfolio of loan obligations with a face value of $520.4 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has a three-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $129.6 million for the purpose of acquiring additional loan obligations for a period of up to 120 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $650.0 million, representing leverage of 82%. We retained a residual interest in the portfolio with a notional amount of $117.0 million, including the $69.1 million below investment grade notes. The notes had an initial weighted average interest rate of 1.44% plus one-month LIBOR and interest payments on the notes are payable monthly.

CLO VI — In June 2019, we completed the unwind of CLO VI, redeeming $250.3 million of outstanding notes, which were repaid primarily from the refinancing of the remaining assets primarily within CLO XI, as well as with cash held by CLO VI, and expensed $1.2 million of deferred financing fees into interest expense on the consolidated statements of income.

Luxembourg Debt Fund

In 2017, we formed a $100.0 million Luxembourg commercial real estate debt fund ("Debt Fund") and issued $70.0 million of floating rate notes to third-party investors which bear an interest rate of 4.15% over LIBOR. The notes mature in 2025 and we retained a $30.0 million equity interest in the Debt Fund. The Debt Fund is a VIE for which we are the primary beneficiary and is consolidated in our financial statements. The Debt Fund is secured by a portfolio of loan obligations and cash with a face value of $100.0 million, which includes first mortgage bridge loans, senior and subordinate participation interests in first mortgage bridge loans and participation interests in mezzanine loans. The Debt Fund allows, for a period of three years, principal proceeds from portfolio assets to be reinvested in qualifying replacement assets, subject to certain conditions.

Borrowings and the corresponding collateral under our Debt Fund are as follows ($ in thousands):


								Collateral (3)
	Debt							Loans				Cash
	Face		Carrying		Wtd. Avg.					Carrying		Restricted
Period	Value		Value (1)		Rate (2)			UPB		Value		Cash (4)
September 30, 2019	$	70,000	$	68,528		6.25	%	$	76,887	$	76,625	$	23,113


December 31, 2018		$	70,000		$	68,183			6.75	%	$	69,186		$	68,924		$	30,814

(1)

Debt carrying value is net of $1.5 million and $1.8 million of deferred financing fees at September 30, 2019 and December 31, 2018, respectively.

(2)

At September 30, 2019 and December 31, 2018, the aggregate weighted average note rate, including certain fees and costs, was 7.32% and 7.49%, respectively.

(3)

At both September 30, 2019 and December 31, 2018, there was no collateral at risk of default or deemed to be a “credit risk.”

(4)

Represents restricted cash held for reinvestment. Excludes restricted cash related to interest payments, delayed fundings and expenses.

Senior Unsecured Notes

In March 2019, we issued $90.0 million aggregate principal amount of 5.75% senior unsecured notes due in April 2024 (the "5.75% Notes") in a private placement. We received proceeds of $88.2 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds to make investments and for general corporate purposes. The 5.75% Notes are unsecured and can be redeemed by us at any time prior to April 1, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus a "make-whole" premium and accrued and unpaid interest. We have the right to redeem the 5.75% Notes on or after April 1, 2024, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. The interest is paid semiannually in April and October starting in October 2019. At September 30, 2019, the debt carrying value of the 5.75% Notes was $88.3 million, which was net of $1.7 million of deferred financing fees. At September 30, 2019, the weighted average note rate was 6.11%, including certain fees and costs.

In March 2018, we issued $100.0 million aggregate principal amount of 5.625% senior unsecured notes due in May 2023 (the "Initial Notes") in a private placement, and, in May 2018, we issued an additional $25.0 million (the "Reopened Notes" and, together with the Initial Notes, the "5.625% Notes,") which brought the aggregate outstanding principal amount to $125.0 million. The Reopened Notes are fully fungible with, and rank equally in right of payment with the Initial Notes. We received total proceeds of $122.3 million from the issuances, after deducting the underwriting discount and other offering expenses. We used the net proceeds from the Initial Notes to fully redeem our 7.375% senior unsecured notes due in 2021 (the “7.375% Notes”) totaling $97.9 million and the net proceeds from the Reopened Notes to make investments and for general corporate purposes. The 5.625% Notes are unsecured and can be redeemed by us at any time prior to April 1, 2023, at a redemption price equal to 100% of the aggregate principal amount, plus a "make- whole" premium and accrued and unpaid interest. We have the right to redeem the 5.625% Notes on or after April 1, 2023, at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest. The interest is paid semiannually in May and November. At September 30, 2019 and December 31, 2018, the debt carrying value of the 5.625% Notes was $122.9 million and $122.5 million, respectively, which was net of $2.1 million and $2.5 million, respectively, of deferred financing fees. At both September 30, 2019 and December 31, 2018, the weighted average note rate was 6.08%, including certain fees and costs.

Subsequent Event

In October 2019, we issued $110.0 million aggregate principal amount of 4.75% senior unsecured notes due in October 2024 (the "4.75% Notes") in a private placement. We received proceeds of $108.2 million from the issuance, after deducting the underwriting discount and other offering expenses, and we intend to use the net proceeds to make investments and for general corporate purposes.

Convertible Senior Unsecured Notes

In July 2018, we issued $264.5 million in aggregate principal amount of 5.25% convertible senior notes (the “5.25% Convertible Notes”) through two separate private placement offerings, which included the exercised purchaser’s total over-allotment option of $34.5 million. The 5.25% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in July 2021, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rates of the two offerings ($115.0 million issued on July 3, 2018 and $149.5 million issued on July 20, 2018) were 86.9943 shares and 77.8331 shares of common stock per $1,000 of principal, respectively, representing a conversion price of $11.50 per share and $12.85 per share of common stock, respectively. At September 30, 2019, the conversion rates of the two offerings ($115.0 million and $149.5 million) were 88.9843 shares and 79.6135 shares of common stock per $1,000 of principal, respectively, representing a conversion price of $11.24 per share and $12.56 per share of common stock, respectively.

We received proceeds totaling $256.1 million from the offerings of our 5.25% Convertible Notes, net of the underwriter’s discount and fees, which is being amortized through interest expense over the life of such notes. We used the net proceeds from the issuance primarily for the initial exchange of $127.6 million of our 5.375% convertible senior unsecured notes (the “5.375% Convertible Notes”) and $99.8 million of our 6.50% convertible senior unsecured notes (the “6.50% Convertible Notes”) for a combination of $219.8 million in cash (which includes accrued interest) and 6,820,196 shares of our common stock. The remaining net proceeds were used for general corporate purposes.

At September 30, 2019, there were $1.1 million and $0.1 million aggregate principal amounts remaining of our 5.375% Convertible Notes and 6.50% Convertible Notes, respectively. The initial conversion rates of the 5.375% Convertible Notes and 6.50% Convertible Notes were 107.7122 shares and 119.3033 shares, respectively, of common stock per $1,000 of principal, which represented a conversion price of $9.28 per share and $8.38 per share of common stock, respectively. At September 30, 2019, the 5.375% Convertible Notes and 6.50% Convertible Notes had conversion rates of 113.8227 shares and 129.6955 shares, respectively, of common stock per $1,000 of principal, which represented a conversion price of $8.79 per share and $7.71 per share of common stock, respectively. The 5.375% Convertible Notes and 6.50% Convertible Notes pay interest semiannually in arrears and have scheduled maturity dates in November 2020 and October 2019, respectively, unless earlier converted or repurchased by the holders pursuant to their terms.

Since the closing stock price of our common stock on September 30, 2019 exceeded the conversion prices of our convertible notes, the if-converted value of the convertible notes exceeded their principal amounts by $26.3 million at September 30, 2019.

Our convertible senior unsecured notes are not redeemable by us prior to their maturities and are convertible by the holder into, at our election, cash, shares of our common stock or a combination of both, subject to the satisfaction of certain conditions and during specified periods. The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their notes for cash equal to 100% of the principal amount, plus accrued and unpaid interest, if we undergo a fundamental change specified in the agreements. We intend to settle the principal balance of our convertible debt in cash and have not assumed share settlement of the principal balance for purposes of computing earnings per share (“EPS”). At the time of issuance, there was no precedent or policy that would indicate that we would settle the principal in shares or the conversion spread in cash.

Accounting guidance requires that convertible debt instruments with cash settlement features, including partial cash settlement, account for the liability component and equity component (conversion feature) of the instrument separately. The initial value of the liability component reflects the present value of the discounted cash flows using the nonconvertible debt borrowing rate at the time of the issuance. The debt discount represents the difference between the proceeds received from the issuance and the initial carrying value of the liability component, which is accreted back to the notes principal amount through interest expense over the term of the notes, which was 1.75 years and 2.49 years at September 30, 2019 and December 31, 2018, respectively, on a weighted average basis.

The UPB, unamortized discount and net carrying amount of the liability and equity components of our convertible notes were as follows (in thousands):


	Liability								Equity
	Component								Component
			Unamortized Debt		Unamortized Deferred		Net Carrying		Net Carrying
Period	UPB		Discount		Financing Fees		Value		Value
September 30, 2019	$	265,705	$	5,699	$	4,900	$	255,106	$	9,436

December 31, 2018	$	270,057	$	8,229	$	7,060	$	254,768	$	9,436

During the three months ended September 30, 2019, we incurred interest expense on the notes totaling $5.0 million, of which $3.5 million, $0.8 million and $0.7 million related to the cash coupon, the debt discount and amortization of the deferred financing fees, respectively. During the nine months ended September 30, 2019, we incurred total interest expense on the notes of $15.1 million, of which $10.4 million, $2.5 million and $2.2 million related to the cash coupon, the debt discount and amortization of the deferred financing fees, respectively. During the three months ended September 30, 2018, we incurred total interest expense on the notes of $5.0 million, of which $3.1 million, $1.0 million and $0.9 million related to the cash coupon, amortization of the deferred financing fees and of the debt discount, respectively. During the nine months ended September 30, 2018, we incurred total interest expense on the notes of $16.0 million, of which $9.9 million, $4.1 million and $2.0 million related to the cash coupon, amortization of the deferred financing fees and of the debt discount, respectively. Including the amortization of the deferred financing fees and debt discount, our weighted average total cost of the notes was 7.45% per annum at both September 30, 2019 and December 31, 2018.

Junior Subordinated Notes

The carrying values of borrowings under our junior subordinated notes were $140.8 million and $140.3 million at September 30, 2019 and December 31, 2018, respectively, which is net of a deferred amount of $11.6 million and $12.0 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $2.0 million and $2.1 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a fixed or floating rate of interest based on LIBOR. The current weighted average note rate was 4.93% and 5.66% at September 30, 2019 and December 31, 2018, respectively. Including certain fees and costs, the weighted average note rate was 5.02% and 5.75% at September 30, 2019 and December 31, 2018, respectively.

Debt Covenants

Credit Facilities, Repurchase Agreements and Unsecured Debt. The credit facilities, repurchase agreements and unsecured debt (senior and convertible notes) contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests. We were in compliance with all financial covenants and restrictions at September 30, 2019.

CLOs. Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests. Our CLOs were in compliance with all such covenants as of September 30, 2019, as well as on the most recent determination dates in October 2019. In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (i) cash on hand, (ii) income from any CLO not in breach of a covenant test, (iii) income from real property and loan assets, (iv) sale of assets, or (v) accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs. However, we may not have sufficient liquidity available to do so at such time.

Our CLO compliance tests as of the most recent determination dates in October 2019 were as follows:


Cash Flow Triggers	CLO VII		CLO VIII		CLO IX		CLO X		CLO XI
Overcollateralization (1)

Current	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
Limit	128.03	%	128.03	%	133.68	%	125.98	%	120.95	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass

Interest Coverage (2)

Current	186.91	%	303.85	%	277.58	%	294.75	%	217.01	%
Limit	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass

(1)

The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle.

(2)

The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.

Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:


Determination (1)	CLO VII		CLO VIII		CLO IX		CLO X		CLO XI
October 2019	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
July 2019	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
April 2019	129.03	%	129.03	%	134.68	%	126.98	%	—
January 2019	129.03	%	129.03	%	134.68	%	126.98	%	—
October 2018	129.03	%	129.03	%	134.68	%	126.98	%	—

(1)

The table above represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented.

The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other.

Allowance for Loss-Sharing Obligations

9 Months Ended

Sep. 30, 2019

Allowance for Loss-Sharing Obligations

Allowance for Loss-Sharing Obligations

Note 11 — Allowance for Loss-Sharing Obligations

Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Beginning balance	$	34,417	$	31,402	$	34,298	$	30,511
Provisions for loss sharing		1,326		2,924		3,880		5,263
Provisions reversal for loan repayments		(591)		(905)		(2,323)		(2,423)
Recoveries (charge-offs), net		373		(16)		(330)		54
Ending balance	$	35,525	$	33,405	$	35,525	$	33,405

When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At both September 30, 2019 and December 31, 2018, we had outstanding advances of $0.1 million, which were netted against the allowance for loss-sharing obligations.

At September 30, 2019 and December 31, 2018, our allowance for loss-sharing obligations represented 0.24% and 0.25%, respectively, of the Fannie Mae servicing portfolio.

At September 30, 2019 and December 31, 2018, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $2.69 billion and $2.46 billion, respectively. The maximum quantifiable liability is not representative of the actual loss we would incur. We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2019

Derivative Financial Instruments

Derivative Financial Instruments

Note 12 — Derivative Financial Instruments

We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. We do not use these derivatives for speculative purposes, but are instead using them to manage our exposure to interest rate risk.

Agency Rate Lock and Forward Sale Commitments. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower "rate locks" a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneous with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of other income, net in the consolidated statements of income. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income. During the three and nine months ended September 30, 2019, we recorded a net loss of $4.7 million and $6.1 million, respectively, from changes in the fair value of these derivatives in other income, net and $29.9 million and $62.9 million, respectively, of income from MSRs. During the three and nine months ended September 30, 2018, we recorded a net loss of $4.4 million and $2.3 million, respectively, from changes in the fair value of these derivatives in other income, net and $25.2 million and $62.8 million, respectively, of income from MSRs. See Note 13 for details.

Interest Rate Swap Futures. We enter into over-the-counter interest rate swap futures (“Swap Futures”) to hedge our exposure to changes in interest rates inherent in (1) our Structured Business SFR loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt, and (2) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization. The Swap Futures do not meet the criteria for hedge accounting, typically have a three-month maturity and are tied to the five-year and ten-year swap rates. Our Swap Futures are cleared by a central clearing house and variation margin payments, made in cash, are treated as a legal settlement of the derivative itself as opposed to a pledge of collateral.

During the three and nine months ended September 30, 2019, we recorded realized losses of $0.4 million and $0.6 million, respectively, and unrealized gains of $0.1 million and unrealized losses of less than $0.1 million, respectively, to our Structured Business related to our Swap Futures. During both the three and nine months ended September 30, 2019, we recorded realized gains of $0.2 million and unrealized losses of $0.2 million to our Agency Business related to our Swap Futures. The realized and unrealized gains and losses are recorded in other income, net on our consolidated statements of income.

A summary of our non-qualifying derivative financial instruments is as follows ($ in thousands):


	September 30, 2019
					Fair Value
		Notional		Balance Sheet	Derivative		Derivative
Derivative	Count	Value		Location	Assets		Liabilities
Agency Business
Rate Lock Commitments	10	$	94,674	Other Assets/Other Liabilities	$	589	$	(2,515)
Forward Sale Commitments	84		543,654	Other Assets/Other Liabilities		4,509		(3,043)
Swap Futures	7		72,300	Other Assets/Other Liabilities		—		—
		$	710,628		$	5,098	$	(5,558)

Structured Business
Swap Futures	2	$	10,600	Other Assets/Other Liabilities		—		—


	December 31, 2018
Agency Business
Rate Lock Commitments	4	$	18,161	Other Assets/Other Liabilities	$	324	$	(95)
Forward Sale Commitments	90		491,125	Other Assets/Other Liabilities		5,789		(637)
		$	509,286		$	6,113	$	(732)

Fair Value

9 Months Ended

Sep. 30, 2019

Fair Value.

Fair Value

Note 13 — Fair Value

Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands):


	September 30, 2019						December 31, 2018
	Principal /		Carrying		Estimated		Principal /		Carrying		Estimated
	Notional Amount		Value		Fair Value		Notional Amount		Value		Fair Value
Financial assets:
Loans and investments, net	$	3,961,709	$	3,874,069	$	3,914,135	$	3,283,342	$	3,200,145	$	3,249,499
Loans held-for-sale, net		529,722		537,826		546,887		472,964		481,664		489,546
Capitalized mortgage servicing rights, net		n/a		283,688		323,662		n/a		273,770		322,463
Securities held-to-maturity, net		118,925		95,181		97,918		103,515		76,363		79,097
Derivative financial instruments		307,099		5,098		5,098		400,661		6,113		6,113

Financial liabilities:
Credit and repurchase facilities	$	1,388,248	$	1,385,764	$	1,385,261	$	1,138,135	$	1,135,627	$	1,135,774
Collateralized loan obligations		1,892,274		1,876,900		1,894,048		1,609,524		1,593,548		1,588,989
Debt fund		70,000		68,528		70,132		70,000		68,183		70,154
Senior unsecured notes		215,000		211,188		217,344		125,000		122,484		123,750
Convertible senior unsecured notes, net		265,705		255,106		290,986		270,057		254,768		267,324
Junior subordinated notes		154,336		140,767		97,218		154,336		140,259		95,873
Derivative financial instruments		331,229		5,558		5,558		108,625		732		732

Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows:

Level 1—Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities.

Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments.

Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments.

Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Loans and investments, net. Fair values of loans and investments that are not impaired are estimated using Level 3 inputs based on direct capitalization rate and discounted cash flow methodologies using discount rates, which, in our opinion, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Fair values of impaired loans and investments are estimated using Level 3 inputs that require significant judgments, which include assumptions regarding discount rates, capitalization rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plans and other factors.

Loans held-for-sale, net. Consists of originated loans that are generally transferred or sold within 60 days of loan funding, and are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2). Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3).

Capitalized mortgage servicing rights, net. Fair values are estimated using Level 3 inputs based on discounted future net cash flow methodology. The fair value of MSRs carried at amortized cost are estimated using a process that involves the use of independent third-party valuation experts, supported by commercially available discounted cash flow models and analysis of current market data. The key inputs used in estimating fair value include the contractually specified servicing fees, prepayment speed of the underlying loans, discount rate, annual per loan cost to service loans, delinquency rates, late charges and other economic factors.

Securities held-to-maturity, net. Fair values are approximated using Level 3 inputs based on current market quotes received from financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions.

Derivative financial instruments. The fair values of rate lock and forward sale commitments are estimated using valuation techniques, which include internally-developed models developed based on changes in the U.S. Treasury rate and other observable market data (Level 2). The fair value of rate lock commitments includes the fair value of the expected net cash flows associated with the servicing of the loans, see capitalized mortgage servicing rights, net above for details on the applicable valuation technique (Level 3). We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives. Given the credit quality of our counterparties, the short duration of interest rate lock commitments and forward sale contracts, and our historical experience, the risk of nonperformance by our counterparties is not significant.

Credit facilities and repurchase agreements. Fair values for credit facilities and repurchase agreements of the Structured Business are estimated at Level 3 using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality. The majority of our credit facilities and repurchase agreement for the Agency Business bear interest at rates that are similar to those available in the market currently and the fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values.

Collateralized loan obligations, Debt Fund and junior subordinated notes. Fair values are estimated at Level 3 based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads.

Senior unsecured notes. Fair values are estimated at Level 1 when current market quotes received from active markets are available. If quotes from active markets are unavailable, then the fair values are estimated at Level 2 utilizing current market quotes received from inactive markets.

Convertible senior unsecured notes, net. Fair values are estimated at Level 2 based on current market quotes received from inactive markets.

We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities were determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair
	Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Derivative financial instruments	$	5,098	$	5,098	$	—	$	4,509	$	589
Financial liabilities:
Derivative financial instruments	$	5,558	$	5,558	$	—	$	5,558	$	—

We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair
	Net Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans, net (1)	$	60,268	$	60,268	$	—	$	—	$	60,268

(1)

We had an allowance for loan losses of $71.1 million relating to five loans with an aggregate carrying value, before loan loss reserves, of $131.3 million at September 30, 2019.

Loan impairment assessments. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses, when such loan or investment is deemed to be impaired. We consider a loan impaired when, based upon current information, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance and corresponding charge to the provision for loan losses. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors. The table above and below includes all impaired loans, regardless of the period in which the impairment was recognized.

Quantitative information about Level 3 fair value measurements at September 30, 2019 were as follows ($ in thousands):


			Valuation
	Fair Value		Techniques	Significant Unobservable Inputs
Financial assets:
Impaired loans:

Land	$	59,517	Discounted cash flows	Discount rate	23.00	%
				Revenue growth rate	3.00	%

Office		741	Discounted cash flows	Discount rate	11.00	%
				Capitalization rate	9.00	%
				Revenue growth rate	2.50	%

Derivative financial instruments:
Rate lock commitments		589	Discounted cash flows	W/A discount rate	12.25	%

The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments were as follows (in thousands):


	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Derivative assets and liabilities, net
Balance at beginning of period	$	745	$	606	$	324	$	276
Settlements		(30,067)		(17,793)		(62,587)		(62,313)
Realized gains recorded in earnings		29,322		17,187		62,263		62,037
Unrealized gains recorded in earnings		589		749		589		749
Balance at end of period	$	589	$	749	$	589	$	749

The components of fair value and other relevant information associated with our rate lock commitments, forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale were as follows (in thousands):


	Notional/		Fair Value of		Interest Rate		Total Fair Value
	Principal Amount		Servicing Rights		Movement Effect		Adjustment
September 30, 2019
Rate lock commitments	$	94,674	$	589	$	(2,515)	$	(1,926)
Forward sale commitments		543,655		—		2,515		2,515
Loans held-for-sale, net (1)		448,981		10,364		—		10,364
Total			$	10,953	$	—	$	10,953

(1)

Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.

We measure certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities was determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Loans and investments, net	$	3,874,069	$	3,914,135	$	—	$	—	$	3,914,135
Loans held-for-sale, net		537,826		546,887		—		536,523		10,364
Capitalized mortgage servicing rights, net		283,688		323,662		—		—		323,662
Securities held-to-maturity, net		95,181		97,918		—		—		97,918

Financial liabilities:
Credit and repurchase facilities	$	1,385,764	$	1,385,261	$	—	$	461,247	$	924,014
Collateralized loan obligations		1,876,900		1,894,048		—		—		1,894,048
Debt fund		68,528		70,132		—		—		70,132
Senior unsecured notes		211,188		217,344		217,344		—		—
Convertible senior unsecured notes, net		255,106		290,986		—		290,986		—
Junior subordinated notes		140,767		97,218		—		—		97,218

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies

Commitments and Contingencies

Note 14 — Commitments and Contingencies

Debt Obligations. Our debt obligations have maturities of $520.0 million for the remainder of 2019, $1.18 billion in 2020, $714.9 million in 2021, $878.1 million in 2022, $269.7 million in 2023, $102.4 million in 2024 and $324.1 million thereafter.

Agency Business Commitments. Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements.

As of September 30, 2019, we were required to maintain at least $14.4 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement.

We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. As of September 30, 2019, we met the restricted liquidity requirement with a $45.0 million letter of credit and $1.4 million of cash collateral.

As of September 30, 2019, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $36.0 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash.

We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. As of September 30, 2019, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. We are not subject to capital requirements on a quarterly basis for Ginnie Mae or FHA, as such requirements for these investors are only required on an annual basis.

As an approved designated seller/servicer under Freddie Mac's SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit.

We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in Note 12.

Operating Leases. We have operating leases for office space and certain office equipment. Some of our leases include payment escalations throughout their lease terms. As of September 30, 2019, our leases had remaining lease terms of 0.1 - 7.4 years with a weighted average remaining lease term of 5.3 years and a weighted average discount rate of 4.8%. We recorded lease expense of $1.5 million and $4.5 million during the three and nine months ended September 30, 2019.

The maturities of our operating lease liabilities at September 30, 2019 are as follows (in thousands):


Year
2019 (three months ending December 31, 2019)	$	1,403
2020		5,293
2021		3,037
2022		2,773
2023		2,051
2024		1,459
Thereafter		3,306
Total	$	19,322

Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $192.8 million as of September 30, 2019 that we are obligated to fund as borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements.

Litigation. We are currently neither subject to any material litigation nor, to the best of our knowledge, threatened by any material litigation other than the following:

In June 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the “Trust”), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc. and the Homestead Village L.L.C. family of companies (together “ESI”) (formerly Chapter 11 debtors, together the "Debtors") that have emerged from bankruptcy. Two of the lawsuits were filed in the U.S. Bankruptcy Court for the Southern District of New York, and the third in the Supreme Court of the State of New York, New York County. There were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain other entities that are affiliates of ours are included as defendants. The New York State Court action has been removed to the Bankruptcy Court. Our affiliates filed a motion to dismiss the three lawsuits.

The lawsuits all allege, as a factual basis and background certain facts surrounding the June 2007 leveraged buyout of ESI from affiliates of Blackstone Capital. Our subsidiary, Arbor ESH II, LLC, had a $115.0 million investment in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. The New York State Court action and one of the two federal court actions name as defendants, Arbor ESH II, LLC, Arbor Commercial Mortgage, LLC ("ACM ") and ABT-ESI LLC, an entity in which we have a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged in these complaints, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. These two complaints also allege that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment (“Fiduciary Duty Claims”) and name a director of ours, and a former general counsel of ACM, each of whom had served on the Board of Directors of ESI for a period of time. We are defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors' bankruptcy filing.

In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, has named ACM and ABT-ESI LLC, together with a number of other defendants and asserts claims, including constructive and fraudulent conveyance claims under state and federal statutes, as well as a claim under the Federal Debt Collection Procedure Act.

In June 2013, the Trust filed a motion to amend the lawsuits, to, among other things, (i) consolidate the lawsuits into one lawsuit, (ii) remove 47 defendants, none of whom are related to us, from the lawsuits so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (iii) reduce the counts within the lawsuits from over 100 down to 17. The remaining counts in the amended complaint against our affiliates are principally state law claims for breach of fiduciary duties, waste, unlawful dividends and unjust enrichment, and claims under the Bankruptcy Code for avoidance and recovery actions, among others. The bankruptcy court granted the motion and the amended complaint has been filed. The amended complaint seeks approximately $139.0 million in the aggregate, plus interest from the date of the alleged unlawful transfers, from director designees, portions of which are also sought from our affiliates as well as from unaffiliated defendants. We have moved to dismiss the referenced actions and intend to vigorously defend against the claims asserted therein. During a status conference held in March 2014, the Court heard oral argument on the motion to dismiss and adjourned the case pending a ruling. Subsequent to that hearing, a new judge was assigned to the case and, in November 2016, the new judge entered an order directing the parties to file supplemental briefs addressing new cases decided since the last round of briefing. Oral arguments regarding the motion to dismiss were heard at a hearing held in January 2017. The Court reserved decision at that hearing.

We have not made a loss accrual for this litigation because we believe that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated.

Due to Borrowers. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with.

Variable Interest Entities

9 Months Ended

Sep. 30, 2019

Variable Interest Entities

Variable Interest Entities

Note 15 — Variable Interest Entities

Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments.

Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO and Debt Fund entities, which we consolidate, are VIEs. ARLP is already consolidated in our financial statements, therefore, the identification of this entity as a VIE had no impact on our consolidated financial statements.

Our CLO and Debt Fund consolidated entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We, or one of our affiliates, are named collateral manager, servicer, and special servicer for all collateral assets held in CLOs, which we believe gives us the power to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests and also have rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued by the CLOs and Debt Fund to third parties. Our operating results and cash flows include the gross amounts related to CLO and Debt Fund assets and liabilities as opposed to our net economic interests in those entities.

The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands):


	September 30, 2019		December 31, 2018
Assets:
Restricted cash	$	188,113	$	179,855
Loans and investments, net		2,320,954		2,001,617
Other assets		17,986		16,624
Total assets	$	2,527,053	$	2,198,096

Liabilities:
Collateralized loan obligations	$	1,876,900	$	1,593,548
Debt fund		68,528		68,183
Due to related party		1,753		—
Other liabilities		3,789		3,408
Total liabilities	$	1,950,970	$	1,665,139

Assets held by the CLOs and Debt Fund are restricted and can only be used to settle obligations of the CLOs and Debt Fund, respectively. The liabilities of the CLOs and Debt Fund are non-recourse to us and can only be satisfied from each respective asset pool. See Note 10 for details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the consolidated CLOs or Debt Fund.

Unconsolidated VIEs. We determined that we are not the primary beneficiary of 29 VIEs in which we have a variable interest as of September 30, 2019 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance.

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of September 30, 2019 is as follows (in thousands):


Type	Carrying Amount (1)
Loans	$	437,498
B Piece and SFR bonds		95,181
Equity investments		8,887
Agency interest only strips		2,728
Total	$	544,294

(1)

Represents the carrying amount of loans and investments before reserves. At September 30, 2019, $129.6 million of loans to VIEs had corresponding loan loss reserves of $69.4 million. See Note 3 for details. In addition, the maximum loss exposure as of September 30, 2019 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $4.62 billion at September 30, 2019.

Equity

9 Months Ended

Sep. 30, 2019

Equity

Equity

Note 16 — Equity

Preferred Stock. The Series A, B and C preferred stock outstanding are redeemable by us.

Common Stock. In May 2019, we completed a public offering in which we sold 9,200,000 shares of our common stock (which includes the underwriter’s exercised over-allotment option of 1,200,000 shares) for $12.58 per share, and received net proceeds of $115.6 million after deducting the underwriter’s discount and other offering expenses. The proceeds were used to make investments related to our business and for general corporate purposes. We also used a portion of the net proceeds to purchase an aggregate of 920,000 shares of our common stock from our chief executive officer and ACM at the same price the underwriters paid to purchase the shares.

In August 2019, we amended our “At-The-Market” equity offering sales agreement with JMP Securities LLC (“JMP”). In connection with the amendment we are entitled to issue and sell up to 7,500,000 shares of our common stock through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. During the three months ended September 30, 2019, we sold 187,000 shares for net proceeds of $2.4 million.

In October 2019, we sold 2,975,000 shares under the JMP agreement for net proceeds of $38.6 million. As of October 25, 2019, we had approximately 4,300,000 shares available under this agreement.

In December 2018, our Board of Directors declared a special dividend of $0.15 per common share, which was paid in January 2019 with a combination of $2.5 million of cash and 901,432 common shares.

During the nine months ended September 30, 2019, we issued 214,029 shares in connection with the settlements of our 5.375% Convertible Notes.

As of September 30, 2019, we had $281.1 million available under our $500.0 million shelf registration statement that was declared effective by the SEC in June 2018.

Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of ACM in the third quarter of 2016 (the "Acquisition"). Each of these OP Units are paired with one share of our special voting preferred shares having a par value of $0.01 per share and is entitled to one vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one-for-one basis.

In the nine months ended September 30, 2019, we redeemed 391,156 OP Units with a combination of cash totaling $1.7 million and 258,677 common shares. We also redeemed 577,185 OP Units in the nine months ended September 30, 2018 for cash totaling $6.8 million. In addition, our Board of Directors declared a special dividend of $0.15 per common share in December 2018, which was paid to the OP Unit holders in a combination of $0.6 million of cash and 221,666 OP Units in January 2019.

At September 30, 2019, there were 20,484,094 OP Units outstanding, which represented 17.8% of the voting power of our outstanding stock.

Distributions. Dividends declared (on a per share basis) during the nine months ended September 30, 2019 were as follows:


			Preferred Stock
Common Stock				Dividend (1)
Declaration Date	Dividend		Declaration Date	Series A		Series B		Series C
February 13, 2019	$	0.27	February 1, 2019	$	0.515625	$	0.484375	$	0.53125
May 1, 2019	$	0.28	May 1, 2019	$	0.515625	$	0.484375	$	0.53125
July 31, 2019	$	0.29	July 31, 2019	$	0.515625	$	0.484375	$	0.53125

(1)

The dividend declared on July 31, 2019 was for June 1, 2019 through August 31, 2019, the dividend declared on May 1, 2019 was for March 1, 2019 through May 31, 2019 and the dividend declared on February 1, 2019 was for December 1, 2018 through February 28, 2019.

Common Stock – On October 30, 2019, the Board of Directors declared a cash dividend of $0.30 per share of common stock. The dividend is payable on December 2, 2019 to common stockholders of record as of the close of business on November 15, 2019.

Preferred Stock – On October 30, 2019, the Board of Directors declared a cash dividend of $0.515625 per share of 8.25% Series A preferred stock; a cash dividend of $0.484375 per share of 7.75% Series B preferred stock; and a cash dividend of $0.53125 per share of 8.50% Series C preferred stock. These amounts reflect dividends from September 1, 2019 through November 30, 2019 and are payable on December 2, 2019 to preferred stockholders of record on November 15, 2019.

Deferred Compensation. During the nine months ended September 30, 2019, we issued 333,884 shares of restricted common stock to employees under the 2017 Amended Omnibus Stock Incentive Plan (the “2017 Plan”) with a total grant date fair value of $4.2 million. One third of the shares vested as of the grant date and one third will vest on each of the first and second anniversaries of the grant date. In March 2019, we issued 55,244 shares of fully vested common stock to the independent members of the Board of Directors under the 2017 Plan with a grant date fair value of $0.7 million. In July 2019, we issued 124,069 shares of restricted common stock under the 2017 Plan to an employee with a total grant date fair value of $1.5 million. One quarter of the shares vested as of the grant date and one quarter will vest on each of the first, second and third anniversaries of the grant date.

In March 2019, we issued 58,738 shares of restricted common stock to our chief executive officer under his 2017 annual incentive agreement with a grant date fair value of $0.7 million. One quarter of the shares vested as of the grant date and one quarter will vest on each of the first, second and third anniversaries of the grant date. Our chief executive officer was also granted up to 352,427 performance-based restricted stock units with a grant date fair value of $1.7 million that vest at the end of a four-year performance period based on our achievement of certain total stockholder return objectives. During the first quarter of 2019, 445,765 shares of previously granted performance-based restricted stock units fully vested, which were net settled for 203,492 common shares. In July 2019, we also granted our chief executive officer 246,508 shares of performance-based restricted stock with a grant date fair value of $3.0 million as a result of achieving goals related to the integration of the Acquisition, which vest in full three years after the grant date.

During the three months ended September 30, 2019 and 2018, we recorded total stock-based compensation expense of $2.3 million and $1.2 million, respectively, to employee compensation and benefits. During the nine months ended September 30, 2019 and 2018, we recorded total stock-based compensation expense of $6.9 million and $4.2 million, respectively, to employee compensation and benefits and $0.7 million and $0.6 million, respectively, to selling and administrative expense.

Earnings Per Share. Basic EPS is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method. Our common stock equivalents include the weighted average dilutive effect of performance-based restricted stock units granted to our chief executive officer, OP Units and convertible senior unsecured notes.

A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows:


	Three Months Ended September 30,
	2019				2018
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	33,965	$	33,965	$	27,737	$	27,737
Net income attributable to noncontrolling interest (2)		—		7,363		—		7,799
Net income attributable to common stockholders and noncontrolling interest	$	33,965	$	41,328	$	27,737	$	35,536

Weighted average shares outstanding		94,486,839		94,486,839		74,802,582		74,802,582
Dilutive effect of OP Units (2)		—		20,484,094		—		21,023,735
Dilutive effect of restricted stock units (3)		—		1,427,329		—		1,559,217
Dilutive effect of convertible notes (4)		—		1,069,782		—		1,050,430
Weighted average shares outstanding		94,486,839		117,468,044		74,802,582		98,435,964

Net income per common share (1)	$	0.36	$	0.35	$	0.37	$	0.36


	Nine Months Ended September 30,
	2019				2018
Net income attributable to common stockholders (1)	$	85,532	$	85,532	$	71,093	$	71,093
Net income attributable to noncontrolling interest (2)		—		19,429		—		22,347
Net income attributable to common stockholders and noncontrolling interest	$	85,532	$	104,961	$	71,093	$	93,440

Weighted average shares outstanding		89,899,074		89,899,074		67,490,132		67,490,132
Dilutive effect of OP Units (2)		—		20,508,205		—		21,160,999
Dilutive effect of restricted stock units (3)		—		1,405,776		—		1,441,264
Dilutive effect of convertible notes (4)		—		1,220,913		—		1,041,212
Weighted average shares outstanding		89,899,074		113,033,968		67,490,132		91,133,607

Net income per common share (1)	$	0.95	$	0.93	$	1.05	$	1.03

(1)

Net of preferred stock dividends.

(2)

We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election.

(3)

Mr. Kaufman is granted restricted stock units annually, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

(4)

The convertible senior unsecured notes impact diluted earnings per share if the average price of our common stock exceeds the conversion price, as calculated in accordance with the terms of the indenture.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Taxes
Income Taxes	Note 17 — Income Taxes As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. The Agency Business is operated through our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business. In the three and nine months ended September 30, 2019, we recorded a tax provision of $6.6 million and $11.0 million, respectively. In the three and nine months ended September 30, 2018, we recorded a tax provision of $5.4 million and $1.1 million, respectively. The tax provision recorded in the three months ended September 30, 2019 consisted of a current tax provision of $4.4 million and a deferred tax provision of $2.2 million. The tax provision recorded in the nine months ended September 30, 2019 consisted of a current tax provision of $12.0 million and a deferred tax benefit of $1.0 million. The tax provision recorded in the three months ended September 30, 2018 consisted of a current tax provision of $6.7 million and a deferred tax benefit of $1.3 million. The tax provision recorded in the nine months ended September 30, 2018 consisted of a current tax provision of $15.6 million and a deferred tax benefit of $14.5 million. The deferred tax benefit in 2018 was due primarily to our payoff in January 2018 of the $50.0 million preferred equity interest entered into with ACM to finance a portion of the Acquisition purchase price. Current and deferred taxes are primarily recorded on the portion of earnings (losses) recognized by us with respect to our interest in the TRS’s. Deferred income tax assets and liabilities are calculated based on temporary differences between our U.S. GAAP consolidated financial statements and the federal, state, local tax basis of assets and liabilities as of the consolidated balance sheets.

Agreements and Transactions with Related Parties	9 Months Ended
Agreements and Transactions with Related Parties	Sep. 30, 2019
Agreements and Transactions with Related Parties
Agreements and Transactions with Related Parties	Note 18 — Agreements and Transactions with Related Parties Shared Services Agreement.We have a shared services agreement with ACM where we provide limited support services to ACM and they reimburse us for the costs of performing such services, which are included in due from related party on the consolidated balance sheets. During the three and nine months ended September 30, 2019, we incurred $0.6 million and $2.1 million, respectively, and, during the three and nine months ended September 30, 2018, we incurred $0.3 million and $0.9 million, respectively, of costs for services provided to ACM. Other Related Party Transactions. Due from related party was $5.0 million and $1.3 million at September 30, 2019 and December 31, 2018, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of the third quarter of 2019 and amounts due from ACM for costs incurred in connection with the shared services agreement described above. Due to related party was $3.2 million at September 30, 2019 and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions. We originated a $34.0 million bridge loan to an unaffiliated borrower in 2017. The borrower had a mezzanine loan from another unaffiliated third party and we had entered into an inter-creditor agreement with the mezzanine lender. In July 2019, the borrower paid down the original mezzanine loan in part and refinanced the balance with another $7.0 million mezzanine loan issued by AMAC III, which is sponsored and managed by our chief executive officer and one of his immediate family members. In connection with that new mezzanine loan, we entered into an inter-creditor agreement with AMAC III. In the first quarter of 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund. We committed to a $30.0 million investment (of which $9.0 million was funded as of September 30, 2019) for an 18% interest in AMAC III. In November 2018, we originated a $61.2 million bridge loan (which $17.3 million was funded as of September 30, 2019) on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 10% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.50% with a LIBOR floor of 2.00% and matures in October 2021. Interest income recorded from this loan totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2019, respectively. In October 2018, we originated a $37.5 million bridge loan, which was used to purchase several multifamily properties. In January 2019, an entity owned, in part, by an immediate family member of our chief executive officer, purchased a 23.9% interest in the borrowing entity. The loan has an interest rate of LIBOR plus 4.25% with a LIBOR floor of 2.375% and matures in October 2020. Interest income recorded from this loan totaled $0.7 million and $2.0 million for the three and nine months ended September 30, 2019, respectively. In October 2018, we acquired a $19.5 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 85% of the borrowing entity. The loan has an interest rate of LIBOR plus 4.0% with a LIBOR floor of 2.125% and matures in July 2021. Interest income recorded from this loan totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2019, respectively. In August 2018, we originated a $17.7 million bridge loan to an entity owned, in part, by an immediate family member of our chief executive officer, who owns a 10.8% interest in the borrowing entity. The loan was used to purchase several undeveloped parcels of land. The loan has a fixed interest rate of 10% and is scheduled to mature in February 2020. In September 2019, the borrower made a partial paydown of principal totaling $4.7 million. Interest income recorded from this loan totaled $0.4 million and $1.5 million for the three and nine months ended September 30, 2019, respectively , and $0.3 million for both the three and nine months ended September 30, 2018. In June 2018, we originated a $21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% in the borrowing entity. The loan has an interest rate of LIBOR plus 4.75% with a LIBOR floor of 1.25% and matures in June 2021. Interest income recorded from this loan totaled $0.4 million and $1.0 million for the three and nine months ended September 30, 2019, respectively, and $0.3 million and $0.4 million for the three and nine months ended September 30, 2018 , respectively. In April 2018, we acquired a $9.4 million bridge loan originated by ACM, of which $8.4 million was funded as of September 30, 2019. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and matures in January 2021. Interest income recorded from this loan totaled $0.2 million and $0.4 million for the three and nine months ended September 30, 2019, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2018, respectively. In January 2018, we paid $50.0 million in full satisfaction of the related party financing we entered into with ACM to finance a portion of the Acquisition purchase price. We incurred interest expense related to this financing of $0.3 million during the first quarter of 2018. In 2017, we acquired a $32.8 million bridge loan originated by ACM. The loan was used to purchase several multifamily properties by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 90% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.13% and matures in June 2020. Interest income recorded from this loan totaled $0.6 million and $1.9 million for the three and nine months ended September 30, 2019, respectively, and $0.6 million and $1.7 million for the three and nine months ended September 30, 2018, respectively. In 2017, we originated two bridge loans totaling $28.0 million on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns 45% of the borrowing entity. The loans have an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and mature in the fourth quarter of 2020. Interest income recorded from these loans totaled $0.6 million and $1.7 million for the three and nine months ended September 30, 2019, respectively, and $0.5 million and $1.6 million for the three and nine months ended September 30, 2018, respectively. In 2017, we originated a $36.0 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 95% interest in the borrowing entity. The loan had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 1% and was scheduled to mature in July 2020. This loan was repaid in full in August 2018. Interest income recorded from this loan totaled $0.7 million and $1.9 million for the three and nine months ended September 30, 2018, respectively. In 2017, we originated a $46.9 million Fannie Mae loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers) which owns a 17.6% interest in the borrowing entity. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 5% of the original UPB. Servicing revenue recorded from this loan was less than $0.1 million for both the three months ended September 30, 2019 and 2018 and $0.1 million for both the nine months ended September 30, 2019 and 2018. In 2017, a consortium of investors (which includes, among other unaffiliated investors, our chief executive officer and ACM) invested $2.0 million for a 26.1% ownership interest in two portfolios of multifamily properties which has two bridge loans totaling $14.8 million originated by us in 2016. The loans had an interest rate of LIBOR plus 5.25% with a LIBOR floor of 0.5% and were scheduled to mature in November 2018. One of the loans was repaid in full in the fourth quarter of 2017 and the remaining loan paid off in June 2018. Interest income recorded from these loans totaled $0.3 million for the nine months ended September 30, 2018. In 2017, Ginkgo Investment Company LLC (“Ginkgo”), of which one of our directors is a 33% managing member, purchased a multifamily apartment complex which assumed an existing $8.3 million Fannie Mae loan that we service. Ginkgo subsequently sold the majority of its interest in this property and owned a 3.6% interest at September 30, 2019. We carry a maximum loss-sharing obligation with Fannie Mae on this loan of up to 20% of the original UPB. Upon the sale, we received a 1% loan assumption fee which was governed by existing loan agreements that were in place when the loan was originated in 2015, prior to such purchase. Servicing revenue recorded from this loan was less than $0.1 million for all periods presented. In 2016, we originated $48.0 million of bridge loans on six multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12.0% in the borrowing entities. The loans have an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and were scheduled to mature in September 2019. In 2017, a $6.8 million loan on one property paid off in full and in 2018 four additional loans totaling $28.3 million paid off in full. In January 2019, $10.9 million of the $12.9 million remaining bridge loan paid off, with the $2.0 million remaining UPB converting to a mezzanine loan with a fixed interest rate of 10.0% and a January 2024 maturity. Interest income recorded from these loans totaled $0.1 million and $0.2 million for the three and nine months ended September 30, 2019, respectively, and $0.3 million and $1.6 million for the three and nine months ended September 30, 2018, respectively. In 2016, we originated a $12.7 million bridge loan and a $5.2 million preferred equity investment on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and the preferred equity investment has a fixed interest rate of 10%. The bridge loan and the preferred equity investment paid off in full in May 2019. Interest income recorded from these loans totaled $0.6 million for the nine months ended September 30, 2019 and $0.4 million and $1.0 million for the three and nine months ended September 30, 2018, respectively. In 2016, we originated a $19.0 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 7.5% interest in the borrowing entity. The loan had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and was scheduled to mature in January 2019. In January 2018, this loan paid off in full. Interest income recorded from this loan totaled $0.3 million for the nine months ended September 30, 2018. In 2015, we originated two bridge loans totaling $16.7 million secured by multifamily properties acquired by a third-party investor. The properties were owned and were sold in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers, our chief executive officer and certain other related parties). The loans have an interest rate of LIBOR plus 5% with a LIBOR floor of 0.25% and were scheduled to mature in October 2018. These loans both paid off in full during the third and four quarters of 2018. Interest income recorded from these loans totaled $0.3 million and $1.0 million for the three and nine months ended September 30, 2018, respectively. In 2015, we originated a $3.0 million mezzanine loan on a multifamily property that had a $47.0 million first mortgage initially originated by ACM. The loan bore interest at a fixed rate of 12.5% and was scheduled to mature in April 2025. In January 2018, this loan paid off in full. Interest income recorded from this loan totaled $0.1 million for the nine months ended September 30, 2018. In 2015, we invested $9.6 million for 50% of ACM's indirect interest in a joint venture with a third-party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in this entity. Since the initial investment, we invested an additional $16.1 million through this joint venture in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform and we received cash distributions totaling $16.9 million (that were classified as returns of capital) as a result of the joint venture selling most of its non-qualified mortgage assets. We recorded income from these investments of $2.6 million and $6.1 million in the three and nine months ended September 30, 2019, respectively, and $0.4 million and $1.2 million in the three and nine months ended September 30, 2018, respectively. In connection with a litigation settlement related to this investment, we provided a guaranty of up to 50% of any amounts payable in connection with the settlement. ACM has also provided us with a guaranty to pay up to 50% of any amounts we may pay under this guaranty. As of September 30, 2019, our maximum exposure under this guaranty totaled $0.8 million. We have not accrued this amount as we do not believe that we will be required to make any nonrefundable payments under this guaranty. See Note 8 for details. In 2014, ACM purchased a property subject to two loans originated by us, a first mortgage of $14.6 million and a second mortgage of $5.1 million, both with maturity dates of April 2016 and an interest rate of LIBOR plus 4.8%. In 2016, the $5.1 million second mortgage was repaid in full and the $14.6 million first mortgage was extended to April 2018 and paid off at maturity. Interest income recorded from these loans totaled $0.2 million for the nine months ended September 30, 2018. We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In June 2018, the owners of Lexford restructured part of its debt and we originated twelve bridge loans totaling $280.5 million, which were used to repay in full certain existing mortgage debt and to renovate 72 multifamily properties included in the portfolio. The loans, which we originated in June 2018, have interest rates of LIBOR plus 4.0% and mature in June 2021 (with 2 one-year extension options). During the nine months ended September 30, 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million. Interest income recorded from these loans totaled $1.1 million and $9.1 million for the three and nine months ended September 30, 2019, respectively, and $4.4 million and $5.5 million in the three and nine months ended September 30, 2018, respectively. Further, as part of this June 2018 restructuring, $50.0 million in unsecured financing was provided by an unsecured lender to certain parent entities of the property owners. ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing. In addition, in connection with our equity investment, we received distributions totaling $1.2 million and $0.7 million during the three months ended September 30, 2019 and 2018, respectively, and $3.0 million and $1.9 million during the nine months ended September 30, 2019 and 2018, respectively, which were recorded as income (loss) from equity affiliates. Separate from the loans we originated in June 2018, we provide limited ("bad boy") guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard "bad" acts such as fraud or a material misrepresentation by Lexford or us. At September 30, 2019, this debt had an aggregate outstanding balance of $619.2 million and is scheduled to mature between 2019 and 2025. Several of our executives, including our chief financial officer, general counsel and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 31% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM. Upon the closing of the Acquisition in 2016, we issued OP Units, each paired with one share of our special voting preferred shares. At September 30, 2019, ACM holds 4,285,694 shares of our common stock and 14,772,918 OP Units, which represents 16.5% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter.

Segment Information

9 Months Ended

Sep. 30, 2019

Segment Information

Segment Information

Note 19 — Segment Information

The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation.


	Three Months Ended September 30, 2019
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	73,829	$	6,680	$	—	$	80,509
Interest expense		43,209		4,855		—		48,064
Net interest income		30,620		1,825		—		32,445
Other revenue:
Gain on sales, including fee-based services, net		—		21,298		—		21,298
Mortgage servicing rights		—		29,911		—		29,911
Servicing revenue		—		25,916		—		25,916
Amortization of MSRs		—		(12,126)		—		(12,126)
Property operating income		2,237		—		—		2,237
Other income, net		17		(4,695)		—		(4,678)
Total other revenue		2,254		60,304		—		62,558
Other expenses:
Employee compensation and benefits		7,769		25,092		—		32,861
Selling and administrative		5,352		5,530		—		10,882
Property operating expenses		2,563		—		—		2,563
Depreciation and amortization		503		1,338		—		1,841
Provision for loss sharing (net of recoveries)		—		735		—		735
Total other expenses		16,187		32,695		—		48,882
Income before income from equity affiliates and income taxes		16,687		29,434		—		46,121
Income from equity affiliates		3,718		—		—		3,718
Provision for income taxes		—		(6,623)		—		(6,623)
Net income		20,405		22,811		—		43,216
Preferred stock dividends		1,888		—		—		1,888
Net income attributable to noncontrolling interest		—		—		7,363		7,363
Net income attributable to common stockholders	$	18,517	$	22,811	$	(7,363)	$	33,965


	Three Months Ended September 30, 2018
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	61,232	$	6,268	$	—	$	67,500
Interest expense		35,508		4,040		—		39,548
Net interest income		25,724		2,228		—		27,952
Other revenue:
Gain on sales, including fee-based services, net		—		17,451		—		17,451
Mortgage servicing rights		—		25,216		—		25,216
Servicing revenue		—		26,082		—		26,082
Amortization of MSRs		—		(11,838)		—		(11,838)
Property operating income		2,651		—		—		2,651
Other income, net		406		(4,388)		—		(3,982)
Total other revenue		3,057		52,523		—		55,580
Other expenses:
Employee compensation and benefits		6,683		21,092		—		27,775
Selling and administrative		4,465		5,529		—		9,994
Property operating expenses		2,437		—		—		2,437
Depreciation and amortization		447		1,401		—		1,848
Provision for loss sharing (net of recoveries)		—		2,019		—		2,019
Provision for loan losses (net of recoveries)		836		—		—		836
Litigation settlement gain		(10,170)		—		—		(10,170)
Total other expenses		4,698		30,041		—		34,739
Income before extinguishment of debt, loss from equity affiliates and income taxes		24,083		24,710		—		48,793
Loss on extinguishment of debt		(4,960)		—		—		(4,960)
Loss from equity affiliates		(1,028)		—		—		(1,028)
Provision for income taxes		—		(5,381)		—		(5,381)
Net income		18,095		19,329		—		37,424
Preferred stock dividends		1,888		—		—		1,888
Net income attributable to noncontrolling interest		—		—		7,799		7,799
Net income attributable to common stockholders	$	16,207	$	19,329	$	(7,799)	$	27,737


	Nine Months Ended September 30, 2019
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	215,782	$	18,175	$	—	$	233,957
Interest expense		126,182		12,031		—		138,213
Net interest income		89,600		6,144		—		95,744
Other revenue:
Gain on sales, including fee-based services, net		—		51,897		—		51,897
Mortgage servicing rights		—		62,852		—		62,852
Servicing revenue		—		76,685		—		76,685
Amortization of MSRs		—		(36,731)		—		(36,731)
Property operating income		8,187		—		—		8,187
Other income, net		646		(6,058)		—		(5,412)
Total other revenue		8,833		148,645		—		157,478
Other expenses:
Employee compensation and benefits		23,048		70,599		—		93,647
Selling and administrative		15,101		16,021		—		31,122
Property operating expenses		7,649		—		—		7,649
Depreciation and amortization		1,524		4,139		—		5,663
Impairment loss on real estate owned		1,000		—		—		1,000
Provision for loss sharing (net of recoveries)		—		1,557		—		1,557
Total other expenses		48,322		92,316		—		140,638
Income before extinguishment of debt, income from equity affiliates and income taxes		50,111		62,473		—		112,584
Loss on extinguishment of debt		(128)		—		—		(128)
Income from equity affiliates		9,133		—		—		9,133
Provision for income taxes		—		(10,963)		—		(10,963)
Net income		59,116		51,510		—		110,626
Preferred stock dividends		5,665		—		—		5,665
Net income attributable to noncontrolling interest		—		—		19,429		19,429
Net income attributable to common stockholders	$	53,451	$	51,510	$	(19,429)	$	85,532


	Nine Months Ended September 30, 2018
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	162,645	$	15,763	$	—	$	178,408
Interest expense		100,324		10,166		329		110,819
Net interest income		62,321		5,597		(329)		67,589
Other revenue:
Gain on sales, including fee-based services, net		—		51,266		—		51,266
Mortgage servicing rights		—		62,787		—		62,787
Servicing revenue		—		70,301		—		70,301
Amortization of MSRs		—		(35,639)		—		(35,639)
Property operating income		8,525		—		—		8,525
Other income, net		757		(2,331)		—		(1,574)
Total other revenue		9,282		146,384		—		155,666
Other expenses:
Employee compensation and benefits		21,019		63,065		—		84,084
Selling and administrative		11,500		16,283		—		27,783
Property operating expenses		8,089		—		—		8,089
Depreciation and amortization		1,338		4,201		—		5,539
Impairment loss on real estate owned		2,000		—		—		2,000
Provision for loss sharing (net of recoveries)		—		2,840		—		2,840
Provision for loan losses (net of recoveries)		(967)		—		—		(967)
Litigation settlement gain		(10,170)		—		—		(10,170)
Total other expenses		32,809		86,389		—		119,198
Income before extinguishment of debt, income from equity affiliates and income taxes		38,794		65,592		(329)		104,057
Loss on extinguishment of debt		(4,960)		—		—		(4,960)
Income from equity affiliates		1,104		—		—		1,104
Benefit from (provision for) income taxes		500		(1,596)		—		(1,096)
Net income		35,438		63,996		(329)		99,105
Preferred stock dividends		5,665		—		—		5,665
Net income attributable to noncontrolling interest		—		—		22,347		22,347
Net income attributable to common stockholders	$	29,773	$	63,996	$	(22,676)	$	71,093

(1)

Includes certain corporate expenses not allocated to the two reportable segments, such as financing costs associated with the Acquisition, as well as income allocated to the noncontrolling interest holders.


	September 30, 2019
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	102,734	$	32,551	$	135,285
Restricted cash		188,572		1,474		190,046
Loans and investments, net		3,874,069		—		3,874,069
Loans held-for-sale, net		—		537,826		537,826
Capitalized mortgage servicing rights, net		—		283,688		283,688
Securities held to maturity		20,000		75,181		95,181
Investments in equity affiliates		36,698		—		36,698
Goodwill and other intangible assets		12,500		99,526		112,026
Other assets		103,541		27,274		130,815
Total assets	$	4,338,114	$	1,057,520	$	5,395,634

Liabilities:
Debt obligations	$	3,477,005	$	461,248	$	3,938,253
Allowance for loss-sharing obligations		—		35,525		35,525
Other liabilities		166,780		56,680		223,460
Total liabilities	$	3,643,785	$	553,453	$	4,197,238


	December 31, 2018
Assets:
Cash and cash equivalents	$	89,457	$	70,606	$	160,063
Restricted cash		180,606		—		180,606
Loans and investments, net		3,200,145		—		3,200,145
Loans held-for-sale, net		—		481,664		481,664
Capitalized mortgage servicing rights, net		—		273,770		273,770
Securities held-to-maturity, net		—		76,363		76,363
Investments in equity affiliates		21,580		—		21,580
Goodwill and other intangible assets		12,500		103,665		116,165
Other assets		81,494		20,325		101,819
Total assets	$	3,585,782	$	1,026,393	$	4,612,175

Liabilities:
Debt obligations	$	2,842,688	$	472,181	$	3,314,869
Allowance for loss-sharing obligations		—		34,298		34,298
Other liabilities		159,413		38,029		197,442
Total liabilities	$	3,002,101	$	544,508	$	3,546,609


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Origination Data:
Structured Business
New loan originations	$	541,474		$	287,480		$	1,971,872		$	1,208,550
Loan payoffs / paydowns		456,847			255,575			1,239,449			684,216

Agency Business
Origination Volumes by Investor:
Fannie Mae	$	1,097,095		$	995,662		$	2,581,958		$	2,264,870
Freddie Mac		203,981			317,516			631,324			1,060,456
FHA		—			77,236			44,668			137,973
CMBS/Conduit		34,000			20,650			211,325			36,883
Private Label		80,740			—			80,740			—
Total	$	1,415,816		$	1,411,064		$	3,550,015		$	3,500,182
Total loan commitment volume	$	1,477,436		$	1,376,376		$	3,626,528		$	3,499,569

Loan Sales Data:
Agency Business
Fannie Mae	$	1,141,780		$	867,601		$	2,556,781		$	2,175,846
Freddie Mac		262,735			286,423			663,053			974,551
FHA		49,915			15,330			82,085			83,443
CMBS/Conduit		34,000			20,650			211,324			36,883
Total	$	1,488,430		$	1,190,004		$	3,513,243		$	3,270,723
Sales margin (fee-based services as a % of loan sales)		1.43	%		1.47	%		1.48	%		1.57	%
MSR rate (MSR income as a % of loan commitments)		2.02	%		1.83	%		1.73	%		1.79	%


	September 30, 2019
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	UPB of Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio		(basis points)	(in years)
Fannie Mae	$	14,616,816	49.2	8.1
Freddie Mac		4,664,750	30.0	11.0
FHA		684,316	15.4	19.2
Total	$	19,965,882	43.5	9.2


	December 31, 2018
Fannie Mae	$	13,562,667	51.3	7.4
Freddie Mac		4,394,287	30.8	10.8
FHA		644,687	15.5	19.6
Total	$	18,601,641	45.2	8.6

Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

Use of Estimates

Leases

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
ASU 2016-02, Leases (Topic 842) requires lessees to record most leases on their balance sheet through operating and finance lease liabilities and corresponding ROU assets, as well as adding additional footnote disclosures of key information about those arrangements. ASU 2018-11, Leases (Topic 842) -Targeted Improvements provides transition relief on comparative period reporting through a cumulative-effect adjustment at the beginning of the period of adoption ("Effective Date Method").	First quarter of 2019	We adopted this guidance using the Effective Date Method and elected the group of optional practical expedients, therefore, comparative reporting periods have not been adjusted and are reported under the previous accounting guidance. Upon adoption, we recorded an operating lease ROU asset and corresponding lease liability of $20.1 million, which are included as other assets and other liabilities in our consolidated balance sheets.We also added the required footnote disclosures in Note 14.

ASU 2018-07, Compensation—Stock Compensation expands the scope of ASC Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements.

ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities better aligns risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements. We will apply this guidance to future hedging activities.

Recently Issued Accounting Pronouncements

Description		Effective Date		Effect on Financial Statements
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses.		First quarter of 2020 with early adoption permitted beginning in the first quarter of 2019		We continue to evaluate the impact the adoption of this guidance will have on our consolidated financial statements and disclosures. As part of our evaluation process, we have established a task force that includes individuals from various functional areas and are in the process of updating our accounting policies, procedures and gathering data. Although our evaluation is not finalized, we expect the adoption of this guidance will result in an increased amount of provision for potential credit loss related to our Structured Business loan and investment portfolio, held-to-maturity debt securities and loss-sharing obligations related to the Fannie Mae DUS program.

Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Basis of Presentation and Significant Accounting Policies

Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
ASU 2016-02, Leases (Topic 842) requires lessees to record most leases on their balance sheet through operating and finance lease liabilities and corresponding ROU assets, as well as adding additional footnote disclosures of key information about those arrangements. ASU 2018-11, Leases (Topic 842) -Targeted Improvements provides transition relief on comparative period reporting through a cumulative-effect adjustment at the beginning of the period of adoption ("Effective Date Method").	First quarter of 2019	We adopted this guidance using the Effective Date Method and elected the group of optional practical expedients, therefore, comparative reporting periods have not been adjusted and are reported under the previous accounting guidance. Upon adoption, we recorded an operating lease ROU asset and corresponding lease liability of $20.1 million, which are included as other assets and other liabilities in our consolidated balance sheets.We also added the required footnote disclosures in Note 14.

ASU 2018-07, Compensation—Stock Compensation expands the scope of ASC Topic 718, Compensation—Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements.

ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities better aligns risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other amendments, the update allows entities to designate the variability in cash flows attributable to changes in a contractually specified component stated in the contract as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset.	First quarter of 2019	The adoption of this guidance did not have a material impact on our consolidated financial statements. We will apply this guidance to future hedging activities.

Recently Issued Accounting Pronouncements

Description		Effective Date		Effect on Financial Statements
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses.		First quarter of 2020 with early adoption permitted beginning in the first quarter of 2019		We continue to evaluate the impact the adoption of this guidance will have on our consolidated financial statements and disclosures. As part of our evaluation process, we have established a task force that includes individuals from various functional areas and are in the process of updating our accounting policies, procedures and gathering data. Although our evaluation is not finalized, we expect the adoption of this guidance will result in an increased amount of provision for potential credit loss related to our Structured Business loan and investment portfolio, held-to-maturity debt securities and loss-sharing obligations related to the Fannie Mae DUS program.

Loans and Investments (Tables)

9 Months Ended

Sep. 30, 2019

Loans and Investments

Schedule of composition of company's structured business loan and investment portfolio

Our Structured Business loan and investment portfolio consists of ($ in thousands):


								Wtd. Avg.
								Remaining	Wtd. Avg.		Wtd. Avg.
			Percent of		Loan	Wtd. Avg.		Months to	First Dollar		Last Dollar
	September 30, 2019		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	3,539,462	89	%	185	6.08	%	17.3	0	%	74	%
Mezzanine loans		217,698	6	%	22	10.36	%	28.8	24	%	74	%
Preferred equity investments		167,780	4	%	9	7.27	%	74.5	69	%	90	%
Other (4)		36,769	1	%	11	2.08	%	64.4	0	%	70	%
		3,961,709	100	%	227	6.33	%	20.8	4	%	75	%
Allowance for loan losses		(71,069)
Unearned revenue		(16,571)
Loans and investments, net	$	3,874,069


	December 31, 2018
Bridge loans	$	2,992,814	91	%	167	6.84	%	18.5	0	%	74	%
Mezzanine loans		108,867	3	%	13	10.57	%	22.1	28	%	72	%
Preferred equity investments		181,661	6	%	10	7.97	%	78.0	66	%	89	%
		3,283,342	100	%	190	7.02	%	22.0	5	%	75	%
Allowance for loan losses		(71,069)
Unearned revenue		(12,128)
Loans and investments, net	$	3,200,145

(1)

(2)

(3)

(4)

Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class

A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands):


	September 30, 2019
					Wtd. Avg.	Wtd. Avg.		Wtd. Avg.
			Percentage		Internal Risk	First Dollar		Last Dollar
Asset Class	UPB		of Portfolio		Rating	LTV Ratio		LTV Ratio
Multifamily	$	3,032,379	77	%	pass/watch	5	%	76	%
Self Storage		233,757	6	%	special mention	3	%	72	%
Land		227,488	6	%	special mention	0	%	86	%
Healthcare		152,625	4	%	pass/watch	0	%	75	%
Office		132,022	3	%	special mention	3	%	66	%
Hotel		92,300	2	%	pass/watch	0	%	62	%
Retail		49,284	1	%	pass/watch	6	%	62	%
Single-Family Rental		40,154	1	%	pass/watch	0	%	66	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	3,961,709	100	%	pass/watch	4	%	75	%


	December 31, 2018
					Wtd. Avg.	Wtd. Avg.		Wtd. Avg.
			Percentage		Internal Risk	First Dollar		Last Dollar
Asset Class	UPB		of Portfolio		Rating	LTV Ratio		LTV Ratio
Multifamily	$	2,427,920	74	%	pass/watch	5	%	75	%
Self Storage		301,830	9	%	pass/watch	0	%	72	%
Land		151,628	5	%	substandard	0	%	90	%
Healthcare		122,775	4	%	pass/watch	0	%	77	%
Office		132,047	4	%	special mention	3	%	68	%
Hotel		100,075	3	%	pass/watch	13	%	66	%
Retail		45,367	1	%	pass/watch	6	%	65	%
Other		1,700	<1	%	doubtful	63	%	63	%
Total	$	3,283,342	100	%	pass/watch	5	%	75	%

Summary of the changes in the allowance for loan losses

A summary of the changes in the allowance for loan losses is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Allowance at beginning of period	$	71,069	$	58,733	$	71,069	$	62,783
Provision for loan losses		—		2,218		—		3,868
Charge-offs		—		—		—		(2,527)
Recoveries of reserves		—		—		—		(3,173)
Allowance at end of period	$	71,069	$	60,951	$	71,069	$	60,951

Summary of the company's impaired loans by asset class

A summary of our impaired loans by asset class is as follows (in thousands):


	September 30, 2019						Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
			Carrying		Allowance for		Average Recorded		Interest Income		Average Recorded		Interest Income
Asset Class	UPB		Value (1)		Loan Losses		Investment (2)		Recognized		Investment (2)		Recognized
Land	$	134,215	$	127,386	$	67,869	$	134,215	$	27	$	134,215	$	82
Office		2,241		2,241		1,500		2,246		34		2,254		101
Commercial		1,700		1,700		1,700		1,700		—		1,700		—
Total	$	138,156	$	131,327	$	71,069	$	138,161	$	61	$	138,169	$	183


	December 31, 2018						Three Months Ended September 30, 2018				Nine Months Ended September 30, 2018
Land	$	134,215	$	127,869	$	67,869	$	133,387	$	26	$	132,651	$	75
Hotel		—		—		—		—		—		17,375		—
Office		2,266		2,266		1,500		2,277		33		2,281		93
Commercial		1,700		1,700		1,700		1,700		—		1,700		—
Total	$	138,181	$	131,835	$	71,069	$	137,364	$	59	$	154,007	$	168

(1)

Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both September 30, 2019 and December 31, 2018.

(2)

Represents an average of the beginning and ending UPB of each asset class.

Summary of the company's non-performing loans by asset class

A summary of our non-performing loans by asset class is as follows (in thousands):


	September 30, 2019						December 31, 2018
					Greater				Less Than 90		Greater Than
	Carrying		Less Than 90		Than 90 Days		Carrying		Days Past		90 Days Past
Asset Class	Value		Days Past Due		Past Due		Value		Due		Due
Commercial	$	1,700	$	—	$	1,700	$	1,700	$	—	$	1,700
Retail		990		—		990		—		—		—
Office		833		—		833		832		—		832
Total	$	3,523	$	—	$	3,523	$	2,532	$	—	$	2,532

Loans Held-for-Sale, Net (Tables)

9 Months Ended

Sep. 30, 2019

Loans Held-for-Sale, Net

Summary of loans held-for-sale, net

Loans held-for-sale, net consists of the following (in thousands):


	September 30, 2019		December 31, 2018
Fannie Mae	$	383,963	$	358,790
Freddie Mac		63,250		95,004
FHA		1,769		19,170
Private Label		80,740		—
		529,722		472,964
Fair value of future MSR		10,364		10,253
Unearned discount		(2,260)		(1,553)
Loans held-for-sale, net	$	537,826	$	481,664

Capitalized Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2019

Capitalized Mortgage Servicing Rights

Summary of capitalized MSR activity

A summary of our capitalized MSR activity is as follows (in thousands):


	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	Acquired		Originated		Total		Acquired		Originated		Total
Balance at beginning of period	$	79,492	$	197,156	$	276,648	$	97,084	$	176,686	$	273,770
Additions		—		25,945		25,945		—		62,477		62,477
Amortization		(5,041)		(7,084)		(12,125)		(16,502)		(20,229)		(36,731)
Write-downs and payoffs		(3,008)		(3,772)		(6,780)		(9,139)		(6,689)		(15,828)
Balance at end of period	$	71,443	$	212,245	$	283,688	$	71,443	$	212,245	$	283,688


	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
Balance at beginning of period	$	120,017	$	137,004	$	257,021	$	143,270	$	109,338	$	252,608
Additions		—		21,368		21,368		—		59,660		59,660
Amortization		(7,052)		(4,786)		(11,838)		(22,564)		(13,075)		(35,639)
Write-downs and payoffs		(4,419)		(2,731)		(7,150)		(12,160)		(5,068)		(17,228)
Balance at end of period	$	108,546	$	150,855	$	259,401	$	108,546	$	150,855	$	259,401

Schedule of expected amortization of capitalized MSRs recorded

The expected amortization of capitalized MSRs recorded as of September 30, 2019 is as follows (in thousands):


Year	Amortization
2019 (three months ending 12/31/2019)	$	12,132
2020		46,371
2021		42,044
2022		36,519
2023		31,735
2024		27,448
Thereafter		87,439
Total	$	283,688

Mortgage Servicing (Tables)

9 Months Ended

Sep. 30, 2019

MSRs

Mortgage Servicing

Schedule of product and geographic concentrations in servicing revenue

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):


September 30, 2019
Product Concentrations					Geographic Concentrations
						UPB
			Percent of			Percentage
Product	UPB		Total		State	of Total
Fannie Mae	$	14,616,816	73	%	Texas	19	%
Freddie Mac		4,664,750	23	%	North Carolina	9	%
FHA		684,316	4	%	New York	9	%
Total	$	19,965,882	100	%	California	9	%
					Georgia	6	%
					Florida	6	%
					Other (1)	42	%
					Total	100	%


December 31, 2018
Fannie Mae	$	13,562,667	73	%	Texas	20	%
Freddie Mac		4,394,287	24	%	North Carolina	10	%
FHA		644,687	3	%	New York	8	%
Total	$	18,601,641	100	%	California	8	%
					Georgia	6	%
					Florida	6	%
					Other (1)	42	%
					Total	100	%

(1)

No other individual state represented 4% or more of the total.

Securities Held-to-Maturity (Tables)

9 Months Ended

Sep. 30, 2019

Securities Held-to-Maturity

Summary of securities held-to-maturity


			Carrying		Unrealized		Estimated
Period	Face Value		Value		Gain		Fair Value
September 30, 2019	$	118,925	$	95,181	$	2,737	$	97,918

December 31, 2018	$	103,515	$	76,363	$	2,734	$	79,097

Investments in Equity Affiliates (Tables)

9 Months Ended

Sep. 30, 2019

Investments in Equity Affiliates

Summary of the company's investments in equity affiliates

A summary of our investments in equity affiliates is as follows (in thousands):


					UPB of Loans to
	Investments in Equity Affiliates at				Equity Affiliates at
Equity Affiliates	September 30, 2019		December 31, 2018		September 30, 2019
Arbor Residential Investor LLC	$	25,491	$	19,260	$	—
AMAC Holdings III LLC		8,887		—		—
Lightstone Value Plus REIT L.P		1,895		1,895		—
JT Prime		425		425		—
West Shore Café		—		—		1,688
Lexford Portfolio		—		—		30,470
East River Portfolio		—		—		—
Total	$	36,698	$	21,580	$	32,158

Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2019

Real Estate Owned

Schedule of real estate owned


	September 30, 2019						December 31, 2018
	Hotel		Office				Hotel		Office
(in thousands)	Property		Building		Total		Property		Building		Total
Land	$	3,294	$	4,509	$	7,803	$	3,294	$	4,509	$	7,803
Building and intangible assets		31,272		2,010		33,282		31,066		2,010		33,076
Less: Impairment loss		(14,307)		(2,500)		(16,807)		(13,307)		(2,500)		(15,807)
Less: Accumulated depreciation and amortization		(10,182)		(967)		(11,149)		(9,778)		(848)		(10,626)
Real estate owned, net	$	10,077	$	3,052	$	13,129	$	11,275	$	3,171	$	14,446

Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2019

Debt Obligations

Schedule of face amount and gain on extinguishment of the company's CDO bonds repurchased by bond class

Borrowings and the corresponding collateral under our Debt Fund are as follows ($ in thousands):


								Collateral (3)
	Debt							Loans				Cash
	Face		Carrying		Wtd. Avg.					Carrying		Restricted
Period	Value		Value (1)		Rate (2)			UPB		Value		Cash (4)
September 30, 2019	$	70,000	$	68,528		6.25	%	$	76,887	$	76,625	$	23,113


December 31, 2018		$	70,000		$	68,183			6.75	%	$	69,186		$	68,924		$	30,814

(1)

Debt carrying value is net of $1.5 million and $1.8 million of deferred financing fees at September 30, 2019 and December 31, 2018, respectively.

(2)

At September 30, 2019 and December 31, 2018, the aggregate weighted average note rate, including certain fees and costs, was 7.32% and 7.49%, respectively.

(3)

At both September 30, 2019 and December 31, 2018, there was no collateral at risk of default or deemed to be a “credit risk.”

(4)

Represents restricted cash held for reinvestment. Excludes restricted cash related to interest payments, delayed fundings and expenses.

Schedule of face value, unamortized discount and net carrying value of the liability and equity components

The UPB, unamortized discount and net carrying amount of the liability and equity components of our convertible notes were as follows (in thousands):


	Liability								Equity
	Component								Component
			Unamortized Debt		Unamortized Deferred		Net Carrying		Net Carrying
Period	UPB		Discount		Financing Fees		Value		Value
September 30, 2019	$	265,705	$	5,699	$	4,900	$	255,106	$	9,436

December 31, 2018	$	270,057	$	8,229	$	7,060	$	254,768	$	9,436

Credit Facilities and Repurchase Agreements

Debt Obligations

Schedule of borrowings

Borrowings under our credit facilities and repurchase agreements are as follows ($ in thousands):


									September 30, 2019							December 31, 2018
									Debt		Collateral					Debt		Collateral
	Current	Extended							Carrying		Carrying		Wtd. Avg.			Carrying		Carrying		Wtd. Avg.
	Maturity	Maturity	Note Rate						Value (1)		Value		Note Rate			Value (1)		Value		Note Rate
Structured Business
$550 million repurchase facility	Mar. 2020	Mar. 2021	L+	1.75	%	to	3.50	%	$	249,334	$	377,445		4.31	%	$	334,696	$	467,680	4.75	%
$300 million repurchase facility	June 2020	Mar. 2023	L+	1.95	%		—			240,173		324,627		4.02	%		—		—	—
$200 million repurchase facility	Aug. 2020	N/A	L+	2.40	%					12,917		14,596		4.48	%		—		—	—
$100 million repurchase facility	June 2020	N/A	L+	1.75	%	to	1.95	%		12,680		17,416		3.82	%		70,837		98,597	4.31	%
$75 million credit facility	May 2020	May 2023	L+	1.75	%	to	2.50	%		47,838		73,764		3.82	%		10,237		16,889	4.31	%
$75 million credit facility	June 2020	N/A	L+	1.75	%					—		—		—			—		—	—
$50 million credit facility	April 2020	April 2022	L+	2.00	%					—		—		—			14,159		17,700	4.57	%
$50 million credit facility	Sept. 2020	Sept. 2021	L+	2.50	%	to	3.25	%		5,261		6,600		4.58	%		—		—	—
$40.5 million credit facility	May 2022	N/A	L+	2.20	%					40,391		54,000		4.27	%		—		—	—
$35.9 million credit facility	May 2020	Nov. 2020	L+	2.30	%					30,772		51,300		4.38	%		30,512		44,100	4.87	%
$25.5 million credit facility	July 2020	N/A	L+	2.50	%					23,923		34,000		4.58	%		18,552		34,000	5.07	%
$25 million credit facility	June 2022	June 2023	L+	2.25	%					14,506		22,172		4.32	%		—		—	—
$25 million working capital facility	Aug. 2020	N/A	L+	2.25	%					—		—		—			—		—	—
$23.2 million credit facility	Feb. 2020	Feb. 2021	L+	2.30	%					23,113		30,900		4.38	%		23,175		30,900	4.87	%
$20 million credit facility	Mar. 2020	Mar. 2021	L+	2.50	%					17,974		41,650		4.58	%		19,912		41,650	5.07	%
$17.4 million credit facility	June 2020	June 2021	L+	2.40	%					14,196		21,700		4.48	%		12,462		15,844	4.97	%
$11.9 million credit facility	April 2022	N/A	L+	2.10	%					11,826		15,190		4.17	%		—		—	—
$8 million credit facility	Aug. 2021	N/A	L+	2.50	%					—		—		—			7,946		10,000	5.07	%
$3.3 million master security agreement	Oct. 2020	N/A		2.96	%	to	3.42	%		655		—		3.18	%		1,168		—	3.19	%
$2.2 million master security agreement	Mar. 2021	N/A		4.60	%		—			1,138		—		4.66	%		1,678		—	4.66	%
Repurchase facilities - securities (2)	N/A	N/A	L+	1.25	%	to	2.50	%		177,820		—		4.20	%		118,112		—	5.07	%
Structured Business total										924,517		1,085,360		4.20	%		663,446		777,360	4.78	%

Agency Business
$750 million ASAP agreement (3)	N/A	N/A	L+	1.05	%					228,727		228,727		3.07	%		104,619		104,619	3.55	%
$500 million repurchase facility (4)	Oct. 2019	N/A	L+	1.275	%					45,079		45,082		3.36	%		130,906		130,917	3.78	%
$250 million credit facility (5)	June 2020	N/A	L+	1.15	%					43,368		43,368		3.17	%		26,651		26,651	3.75	%
$150 million credit facility	Jan. 2020	N/A	L+	1.15	%					102,822		102,888		3.17	%		113,666		113,685	3.80	%
$150 million credit facility	July 2020	N/A	L+	1.15	%					41,251		41,364		3.17	%		96,339		96,419	3.80	%
Agency Business total										461,247		461,429		3.14	%		472,181		472,291	3.74	%
Consolidated total									$	1,385,764	$	1,546,789		3.85	%	$	1,135,627	$	1,249,651	4.35	%

(1)

(2)

(3)

The note rate under this agreement is subject to a LIBOR Floor of 35 basis points.

(4)

(5)

In August 2019, the committed amount under the facility was temporarily increased $150.0 million to $250.0 million, which expires in January 2020.

CLOs

Debt Obligations

Schedule of borrowings

Borrowings and the corresponding collateral under our CLOs are as follows ($ in thousands):


							Collateral (3)
	Debt						Loans				Cash
			Carrying		Wtd. Avg.				Carrying		Restricted
September 30, 2019	Face Value		Value (1)		Rate (2)		UPB		Value		Cash (4)
CLO XI	$	533,000	$	528,404	3.51	%	$	637,336	$	634,052	$	—
CLO X		441,000		437,129	3.51	%		519,893		518,256		32,041
CLO IX		356,400		353,149	3.43	%		411,415		410,554		44,127
CLO VIII		282,874		280,785	3.38	%		346,806		345,774		13,734
CLO VII		279,000		277,433	4.07	%		337,264		335,693		10,061
Total CLOs	$	1,892,274	$	1,876,900	3.56	%	$	2,252,714	$	2,244,329	$	99,963


December 31, 2018
CLO X	$	441,000	$	436,384	4.01	%	$	539,007	$	536,869	$	20,993
CLO IX		356,400		352,244	3.92	%		440,906		439,691		20,094
CLO VIII		282,874		279,857	3.87	%		354,713		353,574		10,287
CLO VII		279,000		276,527	4.56	%		325,057		324,195		30,725
CLO VI		250,250		248,536	5.05	%		279,348		278,364		41,404
Total CLOs	$	1,609,524	$	1,593,548	4.22	%	$	1,939,031	$	1,932,693	$	123,503

(1)

Debt carrying value is net of $15.4 million and $16.0 million of deferred financing fees at September 30, 2019 and December 31, 2018, respectively.

(2)

At September 30, 2019 and December 31, 2018, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.97% and 4.73%, respectively.

(3)

As of September 30, 2019 and December 31, 2018, there was no collateral at risk of default or deemed to be a “credit risk” as defined by the CLO indenture.

(4)

Summary of the company's CLO compliance tests as of the most recent determination dates

Our CLO compliance tests as of the most recent determination dates in October 2019 were as follows:


Cash Flow Triggers	CLO VII		CLO VIII		CLO IX		CLO X		CLO XI
Overcollateralization (1)

Current	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
Limit	128.03	%	128.03	%	133.68	%	125.98	%	120.95	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass

Interest Coverage (2)

Current	186.91	%	303.85	%	277.58	%	294.75	%	217.01	%
Limit	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass

(1)

(2)

The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.

Summary of the Company's CLO overcollateralization ratios


Determination (1)	CLO VII		CLO VIII		CLO IX		CLO X		CLO XI
October 2019	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
July 2019	129.03	%	129.03	%	134.68	%	126.98	%	121.95	%
April 2019	129.03	%	129.03	%	134.68	%	126.98	%	—
January 2019	129.03	%	129.03	%	134.68	%	126.98	%	—
October 2018	129.03	%	129.03	%	134.68	%	126.98	%	—

(1)

The table above represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly and we were in compliance with this test for all periods presented.

Allowance for Loss-Sharing Obligations (Tables)

9 Months Ended

Sep. 30, 2019

Allowance for Loss-Sharing Obligations

Schedule of allowance for loss-sharing obligations related to Fannie Mae DUS program

Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Beginning balance	$	34,417	$	31,402	$	34,298	$	30,511
Provisions for loss sharing		1,326		2,924		3,880		5,263
Provisions reversal for loan repayments		(591)		(905)		(2,323)		(2,423)
Recoveries (charge-offs), net		373		(16)		(330)		54
Ending balance	$	35,525	$	33,405	$	35,525	$	33,405

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=118942415&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118943654&loc=d3e12053-110248

+ Details

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Agency Business

Schedule of non-qualifying derivative financial instruments

A summary of our non-qualifying derivative financial instruments is as follows ($ in thousands):


	September 30, 2019
					Fair Value
		Notional		Balance Sheet	Derivative		Derivative
Derivative	Count	Value		Location	Assets		Liabilities
Agency Business
Rate Lock Commitments	10	$	94,674	Other Assets/Other Liabilities	$	589	$	(2,515)
Forward Sale Commitments	84		543,654	Other Assets/Other Liabilities		4,509		(3,043)
Swap Futures	7		72,300	Other Assets/Other Liabilities		—		—
		$	710,628		$	5,098	$	(5,558)

Structured Business
Swap Futures	2	$	10,600	Other Assets/Other Liabilities		—		—


	December 31, 2018
Agency Business
Rate Lock Commitments	4	$	18,161	Other Assets/Other Liabilities	$	324	$	(95)
Forward Sale Commitments	90		491,125	Other Assets/Other Liabilities		5,789		(637)
		$	509,286		$	6,113	$	(732)

Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value.

Summary of the principal amounts, carrying values and the estimated fair values of the Company's financial instruments

The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments (in thousands):


	September 30, 2019						December 31, 2018
	Principal /		Carrying		Estimated		Principal /		Carrying		Estimated
	Notional Amount		Value		Fair Value		Notional Amount		Value		Fair Value
Financial assets:
Loans and investments, net	$	3,961,709	$	3,874,069	$	3,914,135	$	3,283,342	$	3,200,145	$	3,249,499
Loans held-for-sale, net		529,722		537,826		546,887		472,964		481,664		489,546
Capitalized mortgage servicing rights, net		n/a		283,688		323,662		n/a		273,770		322,463
Securities held-to-maturity, net		118,925		95,181		97,918		103,515		76,363		79,097
Derivative financial instruments		307,099		5,098		5,098		400,661		6,113		6,113

Financial liabilities:
Credit and repurchase facilities	$	1,388,248	$	1,385,764	$	1,385,261	$	1,138,135	$	1,135,627	$	1,135,774
Collateralized loan obligations		1,892,274		1,876,900		1,894,048		1,609,524		1,593,548		1,588,989
Debt fund		70,000		68,528		70,132		70,000		68,183		70,154
Senior unsecured notes		215,000		211,188		217,344		125,000		122,484		123,750
Convertible senior unsecured notes, net		265,705		255,106		290,986		270,057		254,768		267,324
Junior subordinated notes		154,336		140,767		97,218		154,336		140,259		95,873
Derivative financial instruments		331,229		5,558		5,558		108,625		732		732

Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis

The fair values of these financial assets and liabilities were determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair
	Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Derivative financial instruments	$	5,098	$	5,098	$	—	$	4,509	$	589
Financial liabilities:
Derivative financial instruments	$	5,558	$	5,558	$	—	$	5,558	$	—

Schedule of certain financial assets and financial liabilities measured at fair value on a nonrecurring basis

The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair
	Net Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans, net (1)	$	60,268	$	60,268	$	—	$	—	$	60,268

(1)

We had an allowance for loan losses of $71.1 million relating to five loans with an aggregate carrying value, before loan loss reserves, of $131.3 million at September 30, 2019.

Schedule of quantitative information about Level 3 fair value measurements

Quantitative information about Level 3 fair value measurements at September 30, 2019 were as follows ($ in thousands):


			Valuation
	Fair Value		Techniques	Significant Unobservable Inputs
Financial assets:
Impaired loans:

Land	$	59,517	Discounted cash flows	Discount rate	23.00	%
				Revenue growth rate	3.00	%

Office		741	Discounted cash flows	Discount rate	11.00	%
				Capitalization rate	9.00	%
				Revenue growth rate	2.50	%

Derivative financial instruments:
Rate lock commitments		589	Discounted cash flows	W/A discount rate	12.25	%

Schedule of roll forward of Level 3 derivative instruments

A roll-forward of Level 3 derivative instruments were as follows (in thousands):


	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Derivative assets and liabilities, net
Balance at beginning of period	$	745	$	606	$	324	$	276
Settlements		(30,067)		(17,793)		(62,587)		(62,313)
Realized gains recorded in earnings		29,322		17,187		62,263		62,037
Unrealized gains recorded in earnings		589		749		589		749
Balance at end of period	$	589	$	749	$	589	$	749

Schedule of components of fair value and other relevant information


	Notional/		Fair Value of		Interest Rate		Total Fair Value
	Principal Amount		Servicing Rights		Movement Effect		Adjustment
September 30, 2019
Rate lock commitments	$	94,674	$	589	$	(2,515)	$	(1,926)
Forward sale commitments		543,655		—		2,515		2,515
Loans held-for-sale, net (1)		448,981		10,364		—		10,364
Total			$	10,953	$	—	$	10,953

(1)

Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.

Schedule of fair value of assets and liabilities

The fair value of these assets and liabilities was determined using the following input levels as of September 30, 2019 (in thousands):


					Fair Value Measurements Using Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Loans and investments, net	$	3,874,069	$	3,914,135	$	—	$	—	$	3,914,135
Loans held-for-sale, net		537,826		546,887		—		536,523		10,364
Capitalized mortgage servicing rights, net		283,688		323,662		—		—		323,662
Securities held-to-maturity, net		95,181		97,918		—		—		97,918

Financial liabilities:
Credit and repurchase facilities	$	1,385,764	$	1,385,261	$	—	$	461,247	$	924,014
Collateralized loan obligations		1,876,900		1,894,048		—		—		1,894,048
Debt fund		68,528		70,132		—		—		70,132
Senior unsecured notes		211,188		217,344		217,344		—		—
Convertible senior unsecured notes, net		255,106		290,986		—		290,986		—
Junior subordinated notes		140,767		97,218		—		—		97,218

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies

Schedule of maturities of operating lease liabilities

The maturities of our operating lease liabilities at September 30, 2019 are as follows (in thousands):


Year
2019 (three months ending December 31, 2019)	$	1,403
2020		5,293
2021		3,037
2022		2,773
2023		2,051
2024		1,459
Thereafter		3,306
Total	$	19,322

Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2019

Variable Interest Entities

Schedule of the assets and liabilities related to the consolidated CLOs and Debt Fund

The assets and liabilities related to these consolidated CLOs and Debt Fund are as follows (in thousands):


	September 30, 2019		December 31, 2018
Assets:
Restricted cash	$	188,113	$	179,855
Loans and investments, net		2,320,954		2,001,617
Other assets		17,986		16,624
Total assets	$	2,527,053	$	2,198,096

Liabilities:
Collateralized loan obligations	$	1,876,900	$	1,593,548
Debt fund		68,528		68,183
Due to related party		1,753		—
Other liabilities		3,789		3,408
Total liabilities	$	1,950,970	$	1,665,139

Summary of the Company's variable interests in identified VIEs, of which the company is not the primary beneficiary

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of September 30, 2019 is as follows (in thousands):


Type	Carrying Amount (1)
Loans	$	437,498
B Piece and SFR bonds		95,181
Equity investments		8,887
Agency interest only strips		2,728
Total	$	544,294

(1)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Equity (Tables)

9 Months Ended

Sep. 30, 2019

Equity

Schedule of dividends declared by the Company (on a per share basis)

Dividends declared (on a per share basis) during the nine months ended September 30, 2019 were as follows:


			Preferred Stock
Common Stock				Dividend (1)
Declaration Date	Dividend		Declaration Date	Series A		Series B		Series C
February 13, 2019	$	0.27	February 1, 2019	$	0.515625	$	0.484375	$	0.53125
May 1, 2019	$	0.28	May 1, 2019	$	0.515625	$	0.484375	$	0.53125
July 31, 2019	$	0.29	July 31, 2019	$	0.515625	$	0.484375	$	0.53125

(1)

Schedule of reconciliation of the numerator and denominator of the basic and diluted EPS computations

A reconciliation of the numerator and denominator of our basic and diluted EPS computations ($ in thousands, except share and per share data) is as follows:


	Three Months Ended September 30,
	2019				2018
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	33,965	$	33,965	$	27,737	$	27,737
Net income attributable to noncontrolling interest (2)		—		7,363		—		7,799
Net income attributable to common stockholders and noncontrolling interest	$	33,965	$	41,328	$	27,737	$	35,536

Weighted average shares outstanding		94,486,839		94,486,839		74,802,582		74,802,582
Dilutive effect of OP Units (2)		—		20,484,094		—		21,023,735
Dilutive effect of restricted stock units (3)		—		1,427,329		—		1,559,217
Dilutive effect of convertible notes (4)		—		1,069,782		—		1,050,430
Weighted average shares outstanding		94,486,839		117,468,044		74,802,582		98,435,964

Net income per common share (1)	$	0.36	$	0.35	$	0.37	$	0.36


	Nine Months Ended September 30,
	2019				2018
Net income attributable to common stockholders (1)	$	85,532	$	85,532	$	71,093	$	71,093
Net income attributable to noncontrolling interest (2)		—		19,429		—		22,347
Net income attributable to common stockholders and noncontrolling interest	$	85,532	$	104,961	$	71,093	$	93,440

Weighted average shares outstanding		89,899,074		89,899,074		67,490,132		67,490,132
Dilutive effect of OP Units (2)		—		20,508,205		—		21,160,999
Dilutive effect of restricted stock units (3)		—		1,405,776		—		1,441,264
Dilutive effect of convertible notes (4)		—		1,220,913		—		1,041,212
Weighted average shares outstanding		89,899,074		113,033,968		67,490,132		91,133,607

Net income per common share (1)	$	0.95	$	0.93	$	1.05	$	1.03

(1)

Net of preferred stock dividends.

(2)

(3)

Mr. Kaufman is granted restricted stock units annually, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

(4)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Information

Schedule of statement of income and balance sheet by segment


	Three Months Ended September 30, 2019
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	73,829	$	6,680	$	—	$	80,509
Interest expense		43,209		4,855		—		48,064
Net interest income		30,620		1,825		—		32,445
Other revenue:
Gain on sales, including fee-based services, net		—		21,298		—		21,298
Mortgage servicing rights		—		29,911		—		29,911
Servicing revenue		—		25,916		—		25,916
Amortization of MSRs		—		(12,126)		—		(12,126)
Property operating income		2,237		—		—		2,237
Other income, net		17		(4,695)		—		(4,678)
Total other revenue		2,254		60,304		—		62,558
Other expenses:
Employee compensation and benefits		7,769		25,092		—		32,861
Selling and administrative		5,352		5,530		—		10,882
Property operating expenses		2,563		—		—		2,563
Depreciation and amortization		503		1,338		—		1,841
Provision for loss sharing (net of recoveries)		—		735		—		735
Total other expenses		16,187		32,695		—		48,882
Income before income from equity affiliates and income taxes		16,687		29,434		—		46,121
Income from equity affiliates		3,718		—		—		3,718
Provision for income taxes		—		(6,623)		—		(6,623)
Net income		20,405		22,811		—		43,216
Preferred stock dividends		1,888		—		—		1,888
Net income attributable to noncontrolling interest		—		—		7,363		7,363
Net income attributable to common stockholders	$	18,517	$	22,811	$	(7,363)	$	33,965


	Three Months Ended September 30, 2018
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	61,232	$	6,268	$	—	$	67,500
Interest expense		35,508		4,040		—		39,548
Net interest income		25,724		2,228		—		27,952
Other revenue:
Gain on sales, including fee-based services, net		—		17,451		—		17,451
Mortgage servicing rights		—		25,216		—		25,216
Servicing revenue		—		26,082		—		26,082
Amortization of MSRs		—		(11,838)		—		(11,838)
Property operating income		2,651		—		—		2,651
Other income, net		406		(4,388)		—		(3,982)
Total other revenue		3,057		52,523		—		55,580
Other expenses:
Employee compensation and benefits		6,683		21,092		—		27,775
Selling and administrative		4,465		5,529		—		9,994
Property operating expenses		2,437		—		—		2,437
Depreciation and amortization		447		1,401		—		1,848
Provision for loss sharing (net of recoveries)		—		2,019		—		2,019
Provision for loan losses (net of recoveries)		836		—		—		836
Litigation settlement gain		(10,170)		—		—		(10,170)
Total other expenses		4,698		30,041		—		34,739
Income before extinguishment of debt, loss from equity affiliates and income taxes		24,083		24,710		—		48,793
Loss on extinguishment of debt		(4,960)		—		—		(4,960)
Loss from equity affiliates		(1,028)		—		—		(1,028)
Provision for income taxes		—		(5,381)		—		(5,381)
Net income		18,095		19,329		—		37,424
Preferred stock dividends		1,888		—		—		1,888
Net income attributable to noncontrolling interest		—		—		7,799		7,799
Net income attributable to common stockholders	$	16,207	$	19,329	$	(7,799)	$	27,737


	Nine Months Ended September 30, 2019
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	215,782	$	18,175	$	—	$	233,957
Interest expense		126,182		12,031		—		138,213
Net interest income		89,600		6,144		—		95,744
Other revenue:
Gain on sales, including fee-based services, net		—		51,897		—		51,897
Mortgage servicing rights		—		62,852		—		62,852
Servicing revenue		—		76,685		—		76,685
Amortization of MSRs		—		(36,731)		—		(36,731)
Property operating income		8,187		—		—		8,187
Other income, net		646		(6,058)		—		(5,412)
Total other revenue		8,833		148,645		—		157,478
Other expenses:
Employee compensation and benefits		23,048		70,599		—		93,647
Selling and administrative		15,101		16,021		—		31,122
Property operating expenses		7,649		—		—		7,649
Depreciation and amortization		1,524		4,139		—		5,663
Impairment loss on real estate owned		1,000		—		—		1,000
Provision for loss sharing (net of recoveries)		—		1,557		—		1,557
Total other expenses		48,322		92,316		—		140,638
Income before extinguishment of debt, income from equity affiliates and income taxes		50,111		62,473		—		112,584
Loss on extinguishment of debt		(128)		—		—		(128)
Income from equity affiliates		9,133		—		—		9,133
Provision for income taxes		—		(10,963)		—		(10,963)
Net income		59,116		51,510		—		110,626
Preferred stock dividends		5,665		—		—		5,665
Net income attributable to noncontrolling interest		—		—		19,429		19,429
Net income attributable to common stockholders	$	53,451	$	51,510	$	(19,429)	$	85,532


	Nine Months Ended September 30, 2018
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	162,645	$	15,763	$	—	$	178,408
Interest expense		100,324		10,166		329		110,819
Net interest income		62,321		5,597		(329)		67,589
Other revenue:
Gain on sales, including fee-based services, net		—		51,266		—		51,266
Mortgage servicing rights		—		62,787		—		62,787
Servicing revenue		—		70,301		—		70,301
Amortization of MSRs		—		(35,639)		—		(35,639)
Property operating income		8,525		—		—		8,525
Other income, net		757		(2,331)		—		(1,574)
Total other revenue		9,282		146,384		—		155,666
Other expenses:
Employee compensation and benefits		21,019		63,065		—		84,084
Selling and administrative		11,500		16,283		—		27,783
Property operating expenses		8,089		—		—		8,089
Depreciation and amortization		1,338		4,201		—		5,539
Impairment loss on real estate owned		2,000		—		—		2,000
Provision for loss sharing (net of recoveries)		—		2,840		—		2,840
Provision for loan losses (net of recoveries)		(967)		—		—		(967)
Litigation settlement gain		(10,170)		—		—		(10,170)
Total other expenses		32,809		86,389		—		119,198
Income before extinguishment of debt, income from equity affiliates and income taxes		38,794		65,592		(329)		104,057
Loss on extinguishment of debt		(4,960)		—		—		(4,960)
Income from equity affiliates		1,104		—		—		1,104
Benefit from (provision for) income taxes		500		(1,596)		—		(1,096)
Net income		35,438		63,996		(329)		99,105
Preferred stock dividends		5,665		—		—		5,665
Net income attributable to noncontrolling interest		—		—		22,347		22,347
Net income attributable to common stockholders	$	29,773	$	63,996	$	(22,676)	$	71,093

(1)


	September 30, 2019
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	102,734	$	32,551	$	135,285
Restricted cash		188,572		1,474		190,046
Loans and investments, net		3,874,069		—		3,874,069
Loans held-for-sale, net		—		537,826		537,826
Capitalized mortgage servicing rights, net		—		283,688		283,688
Securities held to maturity		20,000		75,181		95,181
Investments in equity affiliates		36,698		—		36,698
Goodwill and other intangible assets		12,500		99,526		112,026
Other assets		103,541		27,274		130,815
Total assets	$	4,338,114	$	1,057,520	$	5,395,634

Liabilities:
Debt obligations	$	3,477,005	$	461,248	$	3,938,253
Allowance for loss-sharing obligations		—		35,525		35,525
Other liabilities		166,780		56,680		223,460
Total liabilities	$	3,643,785	$	553,453	$	4,197,238


	December 31, 2018
Assets:
Cash and cash equivalents	$	89,457	$	70,606	$	160,063
Restricted cash		180,606		—		180,606
Loans and investments, net		3,200,145		—		3,200,145
Loans held-for-sale, net		—		481,664		481,664
Capitalized mortgage servicing rights, net		—		273,770		273,770
Securities held-to-maturity, net		—		76,363		76,363
Investments in equity affiliates		21,580		—		21,580
Goodwill and other intangible assets		12,500		103,665		116,165
Other assets		81,494		20,325		101,819
Total assets	$	3,585,782	$	1,026,393	$	4,612,175

Liabilities:
Debt obligations	$	2,842,688	$	472,181	$	3,314,869
Allowance for loss-sharing obligations		—		34,298		34,298
Other liabilities		159,413		38,029		197,442
Total liabilities	$	3,002,101	$	544,508	$	3,546,609

Schedule of origination data and loan sales data


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Origination Data:
Structured Business
New loan originations	$	541,474		$	287,480		$	1,971,872		$	1,208,550
Loan payoffs / paydowns		456,847			255,575			1,239,449			684,216

Agency Business
Origination Volumes by Investor:
Fannie Mae	$	1,097,095		$	995,662		$	2,581,958		$	2,264,870
Freddie Mac		203,981			317,516			631,324			1,060,456
FHA		—			77,236			44,668			137,973
CMBS/Conduit		34,000			20,650			211,325			36,883
Private Label		80,740			—			80,740			—
Total	$	1,415,816		$	1,411,064		$	3,550,015		$	3,500,182
Total loan commitment volume	$	1,477,436		$	1,376,376		$	3,626,528		$	3,499,569

Loan Sales Data:
Agency Business
Fannie Mae	$	1,141,780		$	867,601		$	2,556,781		$	2,175,846
Freddie Mac		262,735			286,423			663,053			974,551
FHA		49,915			15,330			82,085			83,443
CMBS/Conduit		34,000			20,650			211,324			36,883
Total	$	1,488,430		$	1,190,004		$	3,513,243		$	3,270,723
Sales margin (fee-based services as a % of loan sales)		1.43	%		1.47	%		1.48	%		1.57	%
MSR rate (MSR income as a % of loan commitments)		2.02	%		1.83	%		1.73	%		1.79	%

Schedule of key servicing metrics for Agency Business


	September 30, 2019
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	UPB of Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio		(basis points)	(in years)
Fannie Mae	$	14,616,816	49.2	8.1
Freddie Mac		4,664,750	30.0	11.0
FHA		684,316	15.4	19.2
Total	$	19,965,882	43.5	9.2


	December 31, 2018
Fannie Mae	$	13,562,667	51.3	7.4
Freddie Mac		4,394,287	30.8	10.8
FHA		644,687	15.5	19.6
Total	$	18,601,641	45.2	8.6

Basis of Presentation and Significant Accounting Policies, Recently Adopted Accounting Pronouncements (Details) - ASU 2016-02 $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Recently Adopted Accounting Pronouncements
Election of practical expedients	true
Operating lease ROU assets	$ 20.1
Operating lease liabilities	$ 20.1

Loans and Investments, Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) borrower loan	Dec. 31, 2018 USD ($) borrower loan	Jun. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loans and Investments
Loans and investments, gross	$ 3,961,709	$ 3,283,342
Allowance for loan losses	(71,069)	(71,069)	$ (71,069)	$ (60,951)	$ (58,733)	$ (62,783)
Unearned revenue	(16,571)	(12,128)
Loans and investments, net	$ 3,874,069	$ 3,200,145
Percent of Total	100.00%	100.00%
Loan Count \| loan	227	190
Wtd. Avg. Pay Rate (as a percent)	6.33%	7.02%
Wtd. Avg. Remaining Months to Maturity	20 months 24 days	22 months
Wtd. Avg. First Dollar LTV Ratio (as percent)	4.00%	5.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	75.00%	75.00%
Number of loans and investments \| loan	8	8
Unpaid principal balance	$ 138,156	$ 138,181
Higher-risk
Loans and Investments
Wtd. Avg. Last Dollar LTV Ratio (as percent)	99.00%	99.00%
Carrying value of loans	$ 128,200	$ 128,700
Total assets \| Credit risk concentration
Loans and Investments
Loan Count \| loan	21	45
Number of different borrowers \| borrower	5	5
Concentration risk, percentage	17.00%	22.00%
Bridge loans
Loans and Investments
Loans and investments, gross	$ 3,539,462	$ 2,992,814
Percent of Total	89.00%	91.00%
Loan Count \| loan	185	167
Wtd. Avg. Pay Rate (as a percent)	6.08%	6.84%
Wtd. Avg. Remaining Months to Maturity	17 months 9 days	18 months 15 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	74.00%	74.00%
Bridge loans \| Single-Family Rental
Loans and Investments
Number of loans under the loan portfolio \| loan	3
Total loan commitment	$ 65,500
Unpaid principal balance, funded	25,600
Mezzanine loans
Loans and Investments
Loans and investments, gross	$ 217,698	$ 108,867
Percent of Total	6.00%	3.00%
Loan Count \| loan	22	13
Wtd. Avg. Pay Rate (as a percent)	10.36%	10.57%
Wtd. Avg. Remaining Months to Maturity	28 months 24 days	22 months 3 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	24.00%	28.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	74.00%	72.00%
Preferred equity investments
Loans and Investments
Loans and investments, gross	$ 167,780	$ 181,661
Percent of Total	4.00%	6.00%
Loan Count \| loan	9	10
Wtd. Avg. Pay Rate (as a percent)	7.27%	7.97%
Wtd. Avg. Remaining Months to Maturity	74 months 15 days	78 months
Wtd. Avg. First Dollar LTV Ratio (as percent)	69.00%	66.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	90.00%	89.00%
Other
Loans and Investments
Loans and investments, gross	$ 36,769
Percent of Total	1.00%
Loan Count \| loan	11
Wtd. Avg. Pay Rate (as a percent)	2.08%
Wtd. Avg. Remaining Months to Maturity	64 months 12 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	70.00%
Other \| Single-Family Rental
Loans and Investments
Loans and investments, gross	$ 14,600
Number of loans under the loan portfolio \| loan	3

Loans and Investments, Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Loans and Investments
Percentage of Portfolio	100.00%	100.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	4.00%	5.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	75.00%	75.00%
Credit risk concentration \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 3,961,709	$ 3,283,342
Percentage of Portfolio	100.00%	100.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	4.00%	5.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	75.00%	75.00%
Credit risk concentration \| Loans and investments portfolio \| New York
Loans and Investments
Concentration risk, percentage	21.00%	23.00%
Credit risk concentration \| Loans and investments portfolio \| Texas
Loans and Investments
Concentration risk, percentage	14.00%	18.00%
Credit risk concentration \| Multifamily \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 3,032,379	$ 2,427,920
Percentage of Portfolio	77.00%	74.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	5.00%	5.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%	75.00%
Credit risk concentration \| Self Storage \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)		$ 301,830
Percentage of Portfolio		9.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)		0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)		72.00%
Credit risk concentration \| Self Storage \| Special mention
Loans and Investments
Unpaid Principal Balance (UPB)	$ 233,757
Percentage of Portfolio	6.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	3.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	72.00%
Credit risk concentration \| Land \| Substandard
Loans and Investments
Unpaid Principal Balance (UPB)		$ 151,628
Percentage of Portfolio		5.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)		0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)		90.00%
Credit risk concentration \| Land \| Special mention
Loans and Investments
Unpaid Principal Balance (UPB)	$ 227,488
Percentage of Portfolio	6.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	86.00%
Credit risk concentration \| Healthcare \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 152,625	$ 122,775
Percentage of Portfolio	4.00%	4.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	75.00%	77.00%
Credit risk concentration \| Office \| Special mention
Loans and Investments
Unpaid Principal Balance (UPB)	$ 132,022	$ 132,047
Percentage of Portfolio	3.00%	4.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	3.00%	3.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	66.00%	68.00%
Credit risk concentration \| Hotel \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 92,300	$ 100,075
Percentage of Portfolio	2.00%	3.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%	13.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	62.00%	66.00%
Credit risk concentration \| Retail \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 49,284	$ 45,367
Percentage of Portfolio	1.00%	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	6.00%	6.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	62.00%	65.00%
Credit risk concentration \| Single-Family Rental \| Pass/watch
Loans and Investments
Unpaid Principal Balance (UPB)	$ 40,154
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	66.00%
Credit risk concentration \| Other \| Doubtful
Loans and Investments
Unpaid Principal Balance (UPB)	$ 1,700	$ 1,700
Percentage of Portfolio	1.00%	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	63.00%	63.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	63.00%	63.00%

Loans and Investments, Impaired Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Changes in allowance for loan losses
Allowance at beginning of period	$ 58,733	$ 62,783
Provision for loan losses	2,218	3,868
Charge-offs		(2,527)
Recoveries of reserves		(3,173)
Allowance at end of period	$ 60,951	$ 60,951

Loans and Investments, Charge-offs and Recoveries Narratives (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018 USD ($) loan	Sep. 30, 2019 USD ($) loan	Sep. 30, 2018 USD ($) loan	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loans and Investments
Provision for loan losses	$ 2,218		$ 3,868
Ratio of net recoveries (in percentage)			0.10%
Number of loans for which no provision for loan loss made \| loan	0	0	0
Cumulative allowances for loan losses	$ 60,951	$ 71,069	$ 60,951	$ 71,069	$ 71,069	$ 58,733	$ 62,783
Six loans collateralized by a land development project \| Maturity date of September 2018
Loans and Investments
Number of loans with unpaid principal balance \| loan		6
Unpaid principal balance on loans		$ 120,900
Five loans collateralized by a land development project \| Maturity date of September 2018
Loans and Investments
Number of loans with unpaid principal balance \| loan		5
Unpaid principal balance on loans		$ 111,500
Weighted average accrual rate of interest (as a percent)		8.86%
Cumulative allowances for loan losses		$ 61,400			$ 61,400
Bridge loans
Loans and Investments
Provision for loan losses	1,700		1,700
Office \| Junior participating loans
Loans and Investments
Proceeds from previously written-off loans and investments	1,400		2,300
Hotel
Loans and Investments
Proceed from payment for full satisfaction of a preferred equity investment			31,600
Net carrying value of loans sold			29,100
Recoveries of reserves	2,500		2,500
Charge-off			3,200
Unpaid principal balance on loans	34,800		34,800
Hotel \| Six loans collateralized by a land development project
Loans and Investments
Net carrying value of loans sold	$ 121,400		$ 121,400

Loans and Investments, Summary of impaired loans (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) loan	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) loan	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) loan
Loans and Investments
Unpaid Principal Balance (UPB)	$ 138,156		$ 138,156		$ 138,181
Carrying Value	131,327		131,327		131,835
Allowance for Loan Losses	71,069		71,069		$ 71,069
Average Recorded Investment	138,161	$ 137,364	138,169	$ 154,007
Interest Income Recognized	$ 61	59	$ 183	168
Number of impaired loans \| loan	5		5		5
Land
Loans and Investments
Unpaid Principal Balance (UPB)	$ 134,215		$ 134,215		$ 134,215
Carrying Value	127,386		127,386		127,869
Allowance for Loan Losses	67,869		67,869		67,869
Average Recorded Investment	134,215	133,387	134,215	132,651
Interest Income Recognized	27	26	82	75
Office
Loans and Investments
Unpaid Principal Balance (UPB)	2,241		2,241		2,266
Carrying Value	2,241		2,241		2,266
Allowance for Loan Losses	1,500		1,500		1,500
Average Recorded Investment	2,246	2,277	2,254	2,281
Interest Income Recognized	34	33	101	93
Hotel
Loans and Investments
Average Recorded Investment				17,375
Commercial
Loans and Investments
Unpaid Principal Balance (UPB)	1,700		1,700		1,700
Carrying Value	1,700		1,700		1,700
Allowance for Loan Losses	1,700		1,700		$ 1,700
Average Recorded Investment	$ 1,700	$ 1,700	$ 1,700	$ 1,700

Loans and Investments, Non-performing Loans (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) loan	Dec. 31, 2018 USD ($) loan
Non-performing loans by asset class
Number of loans \| loan	227	190
Carrying Value	$ 0	$ 0
Non-performing loans
Non-performing loans by asset class
Number of loans \| loan	3	2
Carrying value of loans	$ 1,800	$ 800
Loan loss reserves	1,700	1,700
Carrying Value	3,523	2,532
Greater Than 90 Days Past Due
Non-performing loans by asset class
Past Due, Non-performing Loans	0	0
Accruing interest	0	0
Greater Than 90 Days Past Due \| Non-performing loans
Non-performing loans by asset class
Past Due, Non-performing Loans	3,523	2,532
Commercial \| Non-performing loans
Non-performing loans by asset class
Carrying Value	1,700	1,700
Commercial \| Greater Than 90 Days Past Due \| Non-performing loans
Non-performing loans by asset class
Past Due, Non-performing Loans	1,700	1,700
Retail \| Non-performing loans
Non-performing loans by asset class
Carrying Value	990
Retail \| Greater Than 90 Days Past Due \| Non-performing loans
Non-performing loans by asset class
Past Due, Non-performing Loans	990
Office \| Non-performing loans
Non-performing loans by asset class
Carrying Value	833	832
Office \| Greater Than 90 Days Past Due \| Non-performing loans
Non-performing loans by asset class
Past Due, Non-performing Loans	$ 833	$ 832

Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Loans Held-for-Sale, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Loans Held-for-Sale, Net
Loans held-for-sale	$ 529,722		$ 529,722		$ 472,964
Fair value of future MSR	10,364		10,364		10,253
Unearned discount	(2,260)		(2,260)		(1,553)
Loans held-for-sale, net	537,826		$ 537,826		481,664
Maximum number of days held-for-sale loans are typically sold			60 days
Sale of loans held-for-sale			$ 3,301,918	$ 3,254,490
Sale of loans held-for-sale excluding acquired loans	1,490,000	$ 1,190,000	3,510,000	3,270,000
Gain on sale of loans held-for-sale	20,100	$ 15,900	48,100	$ 48,100
Loans with non-accrual status	0		0		0
Greater Than 90 Days Past Due
Loans Held-for-Sale, Net
Loans past due	0		0		0
Fannie Mae
Loans Held-for-Sale, Net
Loans held-for-sale, net	383,963		383,963		358,790
Freddie Mac
Loans Held-for-Sale, Net
Loans held-for-sale, net	63,250		63,250		95,004
FHA
Loans Held-for-Sale, Net
Loans held-for-sale, net	1,769		1,769		$ 19,170
Private Label
Loans Held-for-Sale, Net
Loans held-for-sale, net	$ 80,740		$ 80,740

Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Capitalized Mortgage Servicing Rights
Balance at beginning of period			$ 273,770
Balance at end of period	$ 283,688		283,688		$ 273,770
Valuation allowance	0		0		0
MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of period	276,648	$ 257,021	273,770	$ 252,608	252,608
Additions	25,945	21,368	62,477	59,660
Amortization	(12,125)	(11,838)	(36,731)	(35,639)
Write-downs and payoffs	(6,780)	(7,150)	(15,828)	(17,228)
Balance at end of period	283,688	259,401	283,688	259,401	$ 273,770
Prepayment fees collected	5,300	7,500	13,800	16,200
Expected amortization of capitalized MSRs balances
2019 (nine months ending 12/31/2019)	12,132		12,132
2020	46,371		46,371
2021	42,044		42,044
2022	36,519		36,519
2023	31,735		31,735
2024	27,448		27,448
Thereafter	87,439		87,439
Total	283,688		$ 283,688
MSRs \| Minimum
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			8.00%
MSRs \| Maximum
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			15.00%
MSRs \| Weighted average
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			12.00%
Estimated life remaining			7 years 9 months 18 days		7 years 7 months 6 days
Acquired MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of period	79,492	120,017	$ 97,084	143,270	$ 143,270
Amortization	(5,041)	(7,052)	(16,502)	(22,564)
Write-downs and payoffs	(3,008)	(4,419)	(9,139)	(12,160)
Balance at end of period	71,443	108,546	71,443	108,546	97,084
Originated MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of period	197,156	137,004	176,686	109,338	109,338
Additions	25,945	21,368	62,477	59,660
Amortization	(7,084)	(4,786)	(20,229)	(13,075)
Write-downs and payoffs	(3,772)	(2,731)	(6,689)	(5,068)
Balance at end of period	$ 212,245	$ 150,855	$ 212,245	$ 150,855	$ 176,686

Mortgage Servicing (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Mortgage Servicing (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Mortgage Servicing
Interest earned on total escrows		$ 3,700		$ 8,600
MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	$ 19,965,882		$ 19,965,882		$ 18,601,641
Weighted average servicing fee (as a percent)			0.435%		0.452%
Interest earned on total escrows	4,700		$ 12,900
MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			100.00%		100.00%
Escrow Deposit	958,400		$ 958,400		$ 824,100
MSRs \| Fee-based servicing portfolio \| Agency Business
Mortgage Servicing
Escrow Deposit	553,300		$ 553,300		$ 521,200
Texas \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			19.00%		20.00%
North Carolina \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			9.00%		10.00%
New York \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			9.00%		8.00%
California \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			9.00%		8.00%
Georgia \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			6.00%		6.00%
Florida \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			6.00%		6.00%
Other \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			42.00%		42.00%
Fannie Mae \| MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	14,616,816		$ 14,616,816		$ 13,562,667
Fannie Mae \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			73.00%		73.00%
Freddie Mac \| MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	4,664,750		$ 4,664,750		$ 4,394,287
Freddie Mac \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			23.00%		24.00%
FHA \| MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	$ 684,316		$ 684,316		$ 644,687
FHA \| MSRs \| Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			4.00%		3.00%

Securities Held-to-Maturity (Details) $ in Thousands	3 Months Ended		9 Months Ended
Securities Held-to-Maturity (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) item	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Held-to-Maturity
Carrying Value	$ 95,181		$ 95,181		$ 76,363
Held-to-Maturity
Held-to-Maturity
Face Value	118,925		118,925		103,515
Carrying Value	95,181		95,181		76,363
Unrealized Gain	2,737		2,737		2,734
Estimated Fair Value	97,918		97,918		$ 79,097
Impairment charges			0
Interest income	$ 2,300	$ 600	$ 6,800	$ 1,700
Held-to-Maturity \| Seven B Piece Bonds
Held-to-Maturity
Bonds retained percentage			49.00%
Number of B Piece bonds \| item			7
Discounted value of bonds purchased			$ 74,700
Remaining of B Piece bond sold to the third party at par	51.00%		51.00%
Held-to-Maturity \| Agency B Piece Bonds
Held-to-Maturity
Weighted average variable interest rate (as a percent)	3.74%		3.74%
Estimated weighted average remaining maturity period			5 years 6 months
Weighted average effective interest rate (as a percent)	10.58%		10.58%		10.94%
Held-to-maturity securities, estimated fiscal year
Within one year	$ 16,300		$ 16,300
After one year through five years	43,300		43,300
After five years through ten years	24,600		24,600
After ten years	$ 14,700		14,700
Held-to-Maturity \| SFR bonds
Held-to-Maturity
Estimated weighted average remaining maturity period	7 months 6 days
Initial face value of bonds purchased			20,000
Securities maturity term	3 years
Weighted average fixed interest rate	4.58%
Held-to-maturity securities, estimated fiscal year
Within one year	$ 18,100		18,100
After one year through five years	$ 1,900		$ 1,900

Investments in Equity Affiliates, Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment in Equity Affiliates
Investment in Equity Affiliates	$ 36,698	$ 21,580
UPB of Loans to Equity Affiliates	32,158
Arbor Residential Investor LLC
Investment in Equity Affiliates
Investment in Equity Affiliates	25,491	19,260
AMAC Holdings III LLC
Investment in Equity Affiliates
Investment in Equity Affiliates	8,887
Lightstone Value Plus REIT L.P
Investment in Equity Affiliates
Investment in Equity Affiliates	1,895	1,895
JT Prime
Investment in Equity Affiliates
Investment in Equity Affiliates	425	$ 425
West Shore Cafe
Investment in Equity Affiliates
UPB of Loans to Equity Affiliates	1,688
Lexford Portfolio
Investment in Equity Affiliates
UPB of Loans to Equity Affiliates	$ 30,470

Investments in Equity Affiliates, Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Investment in Equity Affiliates
Income (loss) from equity affiliates	$ 3,718		$ (1,028)		$ 9,133	$ 1,104
Arbor Residential Investor LLC \| Non-qualified Residential Mortgages
Investment in Equity Affiliates
Distributions from equity affiliates						700
Arbor Residential Investor LLC \| Residential Mortgage Banking Company
Investment in Equity Affiliates
Income (loss) from equity affiliates	2,600		400		6,100	1,200
Charge for proportionate share of litigation settlement recorded				$ 2,400
AMAC Holdings III LLC
Investment in Equity Affiliates
Investment in real estate	$ 9,000	$ 30,000			$ 9,000
Interest in a real estate investment (as a percent)		18.00%
West Shore Cafe
Investment in Equity Affiliates
Ownership percentage	50.00%				50.00%
Other-than-temporary impairment recorded			2,200
West Shore Cafe \| First mortgage
Investment in Equity Affiliates
Provided first mortgage loan to an affiliated entity					$ 1,700
Variable rate, spread (as a percent)					4.00%
Provision for loan loss recorded			1,700
Lexford Portfolio
Investment in Equity Affiliates
Distribution received	$ 1,200		$ 700		$ 3,000	$ 1,900

Real Estate Owned (Details) - USD ($)	9 Months Ended
Real Estate Owned (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Real Estate Owned
Real estate owned, net	$ 13,129,000		$ 14,446,000
Impairment loss on real estate owned	1,000,000	$ 2,000,000
Restricted cash due to escrow requirement	190,046,000	$ 202,736,000	180,606,000	$ 139,398,000
Real Estate Owned
Real Estate Owned
Less: Impairment loss	(16,807,000)		(15,807,000)
Less: Accumulated depreciation and amortization	(11,149,000)		(10,626,000)
Real estate owned, net	13,129,000		14,446,000
Restricted cash due to escrow requirement	500,000		500,000
Real Estate Owned \| Hotel
Real Estate Owned
Less: Impairment loss	(14,307,000)		(13,307,000)
Less: Accumulated depreciation and amortization	(10,182,000)		(9,778,000)
Real estate owned, net	$ 10,077,000		11,275,000
Weighted average occupancy rate of properties (as a percent)	58.00%	54.00%
Amount of weighted average daily rate of properties	$ 112	$ 113
Amount of weighted average daily revenue of properties	65	$ 61
Real Estate Owned \| Office
Real Estate Owned
Less: Impairment loss	(2,500,000)		(2,500,000)
Less: Accumulated depreciation and amortization	(967,000)		(848,000)
Real estate owned, net	3,052,000		3,171,000
Real Estate Owned \| Land
Real Estate Owned
Real estate owned, gross	7,803,000		7,803,000
Real Estate Owned \| Land \| Hotel
Real Estate Owned
Real estate owned, gross	3,294,000		3,294,000
Real Estate Owned \| Land \| Office
Real Estate Owned
Real estate owned, gross	4,509,000		4,509,000
Real Estate Owned \| Building and intangible assets
Real Estate Owned
Real estate owned, gross	33,282,000		33,076,000
Real Estate Owned \| Building and intangible assets \| Hotel
Real Estate Owned
Real estate owned, gross	31,272,000		31,066,000
Real Estate Owned \| Building and intangible assets \| Office
Real Estate Owned
Real estate owned, gross	$ 2,010,000		$ 2,010,000

Debt Obligations, Credit Facilities and Repurchase Agreements (Details) $ in Thousands	1 Months Ended								9 Months Ended	12 Months Ended
	Jan. 31, 2020 USD ($)	Oct. 31, 2019	Sep. 30, 2019 USD ($) item	Aug. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	May 31, 2019	Apr. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Sep. 30, 2019 USD ($) item	Dec. 31, 2018 USD ($)
Debt Obligations
Debt Carrying Value			$ 1,385,764						$ 1,385,764	$ 1,135,627
Collateral Carrying Value			$ 1,546,789						$ 1,546,789	$ 1,249,651
Weighted Average Note Rate (as a percent)			3.85%						3.85%	4.35%
Repurchase facility - securities \| CLOs
Debt Obligations
Collateral Carrying Value			$ 183,300						$ 183,300	$ 114,200
Repurchase facility - securities \| B Piece bonds
Debt Obligations
Collateral Carrying Value			75,200						75,200	76,400
Repurchase facility - securities \| SFR bonds
Debt Obligations
Debt Instrument, Collateral Amount			20,000						20,000
Structured Business
Debt Obligations
Debt Carrying Value			924,517						924,517	663,446
Collateral Carrying Value			$ 1,085,360						$ 1,085,360	$ 777,360
Weighted Average Note Rate (as a percent)			4.20%						4.20%	4.78%
Weighted average note rate including certain fees and costs (as a percent)			4.61%						4.61%	5.07%
Unamortized deferred finance costs			$ 2,300						$ 2,300	$ 2,400
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreements used to finance leasehold and capital expenditure improvements at corporate office (as a percent)			69.00%						69.00%	70.00%
Structured Business \| $550 million repurchase facility
Debt Obligations
Debt Carrying Value			$ 249,334						$ 249,334	$ 334,696
Collateral Carrying Value			$ 377,445						$ 377,445	$ 467,680
Weighted Average Note Rate (as a percent)			4.31%						4.31%	4.75%
Maximum borrowing capacity			$ 550,000						$ 550,000	$ 550,000
Structured Business \| $550 million repurchase facility \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.75%
Structured Business \| $550 million repurchase facility \| Maximum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									3.50%
Structured Business \| $300 million repurchase facility
Debt Obligations
Debt Carrying Value			240,173						$ 240,173
Collateral Carrying Value			$ 324,627						$ 324,627
Weighted Average Note Rate (as a percent)			4.02%						4.02%
Maximum borrowing capacity			$ 300,000		$ 300,000				$ 300,000	300,000
Structured Business \| $300 million repurchase facility \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.95%
Structured Business \| $200 million repurchase facility
Debt Obligations
Debt Carrying Value			12,917						$ 12,917
Collateral Carrying Value			$ 14,596						$ 14,596
Weighted Average Note Rate (as a percent)			4.48%						4.48%
Maximum borrowing capacity			$ 200,000	$ 200,000					$ 200,000	200,000
Structured Business \| $200 million repurchase facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)				2.40%					2.40%
Structured Business \| $100 million repurchase facility
Debt Obligations
Debt Carrying Value			12,680						$ 12,680	70,837
Collateral Carrying Value			$ 17,416						$ 17,416	$ 98,597
Weighted Average Note Rate (as a percent)			3.82%						3.82%	4.31%
Maximum borrowing capacity			$ 100,000						$ 100,000	$ 100,000
Structured Business \| $100 million repurchase facility \| Minimum
Debt Obligations
Variable rate, spread (as a percent)									1.75%
Structured Business \| $100 million repurchase facility \| Maximum
Debt Obligations
Variable rate, spread (as a percent)									1.95%
Structured Business \| $150 million repurchase facility
Debt Obligations
Maximum borrowing capacity								$ 150,000
Structured Business \| $150 million repurchase facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)								1.95%
Structured Business \| $75 million credit facility - One
Debt Obligations
Debt Carrying Value			47,838						$ 47,838	10,237
Collateral Carrying Value			$ 73,764						$ 73,764	$ 16,889
Weighted Average Note Rate (as a percent)			3.82%						3.82%	4.31%
Maximum borrowing capacity			$ 75,000						$ 75,000	$ 75,000
Structured Business \| $75 million credit facility - One \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.75%
Structured Business \| $75 million credit facility - One \| Maximum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.50%
Structured Business \| $75 million credit facility - two
Debt Obligations
Maximum borrowing capacity			75,000						$ 75,000	75,000
Structured Business \| $75 million credit facility - two \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.75%
Structured Business \| $50 million credit facility - one
Debt Obligations
Debt Carrying Value										14,159
Collateral Carrying Value										$ 17,700
Weighted Average Note Rate (as a percent)										4.57%
Maximum borrowing capacity			50,000						$ 50,000	$ 50,000
Structured Business \| $50 million credit facility - one \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.00%
Structured Business \| $50 million credit facility - two
Debt Obligations
Debt Carrying Value			5,261						$ 5,261
Collateral Carrying Value			$ 6,600						$ 6,600
Weighted Average Note Rate (as a percent)			4.58%						4.58%
Structured Business \| $50 million credit facility - two \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.50%
Structured Business \| $50 million credit facility - two \| Maximum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									3.25%
Structured Business \| $40.5 million credit facility
Debt Obligations
Debt Carrying Value			$ 40,391						$ 40,391
Collateral Carrying Value			$ 54,000						$ 54,000
Weighted Average Note Rate (as a percent)			4.27%						4.27%
Maximum borrowing capacity			$ 40,500						$ 40,500	40,500
Structured Business \| $40.5 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)					2.20%				2.20%
Structured Business \| $40.5 million credit facility \| Maximum \| LIBOR
Debt Obligations
Maximum borrowing capacity					$ 40,500
Structured Business \| $35.9 million credit facility
Debt Obligations
Debt Carrying Value			30,772						$ 30,772	30,512
Collateral Carrying Value			$ 51,300						$ 51,300	$ 44,100
Weighted Average Note Rate (as a percent)			4.38%						4.38%	4.87%
Maximum borrowing capacity			$ 35,900						$ 35,900	$ 35,900
Structured Business \| $35.9 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.30%
Structured Business \| $25.5 million credit facility
Debt Obligations
Debt Carrying Value			23,923						$ 23,923	18,552
Collateral Carrying Value			$ 34,000						$ 34,000	$ 34,000
Weighted Average Note Rate (as a percent)			4.58%						4.58%	5.07%
Maximum borrowing capacity			$ 25,500						$ 25,500	$ 25,500
Structured Business \| $25.5 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.50%
Structured Business \| $25 million credit facility
Debt Obligations
Debt Carrying Value			14,506						$ 14,506
Collateral Carrying Value			$ 22,172						$ 22,172
Weighted Average Note Rate (as a percent)			4.32%						4.32%
Maximum borrowing capacity			$ 25,000						$ 25,000
Structured Business \| $25 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.25%
Structured Business \| $25 million working capital facility
Debt Obligations
Maximum borrowing capacity			25,000						$ 25,000	25,000
Structured Business \| $25 million working capital facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.25%
Structured Business \| $23.2 million credit facility
Debt Obligations
Debt Carrying Value			23,113						$ 23,113	23,175
Collateral Carrying Value			$ 30,900						$ 30,900	$ 30,900
Weighted Average Note Rate (as a percent)			4.38%						4.38%	4.87%
Maximum borrowing capacity			$ 23,200						$ 23,200	$ 23,200
Structured Business \| $23.2 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.30%
Structured Business \| $20.0 million credit facility
Debt Obligations
Debt Carrying Value			17,974						$ 17,974	19,912
Collateral Carrying Value			$ 41,650						$ 41,650	$ 41,650
Weighted Average Note Rate (as a percent)			4.58%						4.58%	5.07%
Maximum borrowing capacity			$ 20,000						$ 20,000	$ 20,000
Structured Business \| $20.0 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.50%
Structured Business \| $17.4 million credit facility
Debt Obligations
Debt Carrying Value			14,196						$ 14,196	12,462
Collateral Carrying Value			$ 21,700						$ 21,700	$ 15,844
Weighted Average Note Rate (as a percent)			4.48%						4.48%	4.97%
Maximum borrowing capacity			$ 17,400						$ 17,400	$ 17,400
Structured Business \| $17.4 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.40%
Structured Business \| $11.9 million credit facility
Debt Obligations
Debt Carrying Value			11,826						$ 11,826
Collateral Carrying Value			$ 15,190						$ 15,190
Weighted Average Note Rate (as a percent)			4.17%						4.17%
Maximum borrowing capacity			$ 11,900				$ 11,900		$ 11,900	11,900
Structured Business \| $11.9 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)							2.10%		2.10%
Structured Business \| $8 million credit facility
Debt Obligations
Debt Carrying Value										7,946
Collateral Carrying Value										$ 10,000
Weighted Average Note Rate (as a percent)										5.07%
Maximum borrowing capacity			8,000						$ 8,000	$ 8,000
Structured Business \| $8 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.50%
Structured Business \| Repurchase facility - securities
Debt Obligations
Debt Carrying Value			$ 177,820						$ 177,820	$ 118,112
Weighted Average Note Rate (as a percent)			4.20%						4.20%	5.07%
Structured Business \| Repurchase facility - securities \| Minimum
Debt Obligations
Variable rate, spread (as a percent)									1.25%
Structured Business \| Repurchase facility - securities \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)			1.20%			1.75%
Structured Business \| Repurchase facility - securities \| Maximum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)			1.50%			2.00%			2.50%
Structured Business \| $3.3 million master security agreement
Debt Obligations
Debt Carrying Value			$ 655						$ 655	$ 1,168
Weighted Average Note Rate (as a percent)			3.18%						3.18%	3.19%
Maximum borrowing capacity			$ 3,300						$ 3,300	$ 3,300
Structured Business \| $3.3 million master security agreement \| Minimum
Debt Obligations
Variable rate, spread (as a percent)									2.96%
Structured Business \| $3.3 million master security agreement \| Maximum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									3.42%
Structured Business \| $2.2 million master security agreement
Debt Obligations
Debt Carrying Value			$ 1,138						$ 1,138	$ 1,678
Weighted Average Note Rate (as a percent)			4.66%						4.66%	4.66%
Variable rate, spread (as a percent)									4.60%
Maximum borrowing capacity			$ 2,200						$ 2,200	$ 2,200
Structured Business \| $25.0 million credit facility
Debt Obligations
Maximum borrowing capacity					$ 25,000
Structured Business \| $25.0 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									2.25%
Structured Business \| $500 million repurchase facility
Debt Obligations
Maximum borrowing capacity			500,000						$ 500,000
Temporary additional borrowing capacity expires in October 2019			50,000						50,000
Structured Business \| $50 million credit facility
Debt Obligations
Extended maturity period					1 year
Agency Business
Debt Obligations
Debt Carrying Value			461,247						461,247	472,181
Collateral Carrying Value			$ 461,429						$ 461,429	$ 472,291
Weighted Average Note Rate (as a percent)			3.14%						3.14%	3.74%
Unamortized deferred finance costs			$ 200						$ 200	$ 100
Agency Business \| $750 million ASAP agreement
Debt Obligations
Debt Carrying Value			228,727						228,727	104,619
Collateral Carrying Value			$ 228,727						$ 228,727	$ 104,619
Weighted Average Note Rate (as a percent)			3.07%						3.07%	3.55%
Maximum borrowing capacity			$ 750,000						$ 750,000	$ 750,000
Agency Business \| $750 million ASAP agreement \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.05%
Agency Business \| $750 million ASAP agreement \| Minimum \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									0.35%	0.35%
Agency Business \| $500 million multifamily ASAP agreement
Debt Obligations
Maximum borrowing capacity			500,000						$ 500,000	$ 500,000
Agency Business \| $250 million credit facility
Debt Obligations
Debt Carrying Value			43,368						43,368	26,651
Collateral Carrying Value			$ 43,368						$ 43,368	$ 26,651
Weighted Average Note Rate (as a percent)			3.17%						3.17%	3.75%
Maximum borrowing capacity			$ 250,000						$ 250,000	$ 250,000
Committed amount	$ 250,000									150,000
Agency Business \| $250 million credit facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.15%
Agency Business \| $500 million repurchase facility
Debt Obligations
Debt Carrying Value			45,079						$ 45,079	130,906
Collateral Carrying Value			$ 45,082						$ 45,082	$ 130,917
Weighted Average Note Rate (as a percent)			3.36%						3.36%	3.78%
Committed amount									$ 750,000
Agency Business \| $500 million repurchase facility \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)		1.15%							1.275%
Agency Business \| $150 million credit facility - one
Debt Obligations
Debt Carrying Value			$ 102,822						$ 102,822	$ 113,666
Collateral Carrying Value			$ 102,888						$ 102,888	$ 113,685
Weighted Average Note Rate (as a percent)			3.17%						3.17%	3.80%
Maximum borrowing capacity			$ 150,000						$ 150,000	$ 150,000
Agency Business \| $150 million credit facility - one \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.15%
Agency Business \| $150 million credit facility - two
Debt Obligations
Debt Carrying Value			41,251						$ 41,251	96,339
Collateral Carrying Value			$ 41,364						$ 41,364	$ 96,419
Weighted Average Note Rate (as a percent)			3.17%						3.17%	3.80%
Maximum borrowing capacity			$ 150,000						$ 150,000	$ 150,000
Agency Business \| $150 million credit facility - two \| LIBOR
Debt Obligations
Variable rate, spread (as a percent)									1.15%
Agency Business \| Two credit facilities
Debt Obligations
Variable rate, spread (as a percent)									0.15%
Number of credit facility \| item			2						2
Agency Business \| One credit facility
Debt Obligations
Variable rate, spread (as a percent)									0.10%

Debt Obligations, Collateralized Loan Obligations (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) tranche	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Debt Obligations
Proceeds from issuance of collateralized loan obligations	$ 533,000	$ 441,000
Debt, Carrying Value	$ 1,876,900		$ 1,593,548
Weighted average note rate (as a percent)	3.85%		4.35%
Restricted cash related to interest payments, delayed fundings and expenses	$ 63,800
Payoffs and paydowns of collateralized loan obligations	250,250	$ 267,750
CLOs
Debt Obligations
Debt, Face Value	1,892,274		$ 1,609,524
Debt, Carrying Value	$ 1,876,900		$ 1,593,548
Weighted average note rate (as a percent)	3.56%		4.22%
Collateral Loans, Unpaid Principal	$ 2,252,714		$ 1,939,031
Collateral Loans, Carrying Value	2,244,329		1,932,693
Cash collateral	99,963		123,503
Deferred financing fees	$ 15,400		$ 16,000
Weighted average note rate including certain fees and costs (as a percent)	3.97%		4.73%
Collateral at risk	$ 0		$ 0
CLO XI
Debt Obligations
Number of tranches of CLO notes issued \| tranche	8
Value of the tranches issued	$ 602,100
Debt, Face Value	533,000
Debt, Carrying Value	$ 528,404
Weighted average note rate (as a percent)	3.51%
Collateral Loans, Unpaid Principal	$ 637,336
Collateral Loans, Carrying Value	$ 634,052
Replacement period	3 years
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations	$ 129,600
Maximum period to acquire additional loan obligations	120 days
Notional amount of residual interest retained	$ 117,000
Value of portfolio loans as collateral	520,400
Face value of loan obligations will be owned by the issuer	$ 650,000
Leverage (as a percent)	82.00%
CLO XI \| One-month LIBOR
Debt Obligations
Weighted average note rate including certain fees and costs (as a percent)	1.44%
CLO XI \| Investment grade
Debt Obligations
Debt, Face Value	$ 533,000
CLO XI \| Below investment grade
Debt Obligations
Debt, Carrying Value	69,100
Notional amount of residual interest retained	69,100
CLO X
Debt Obligations
Debt, Face Value	441,000		441,000
Debt, Carrying Value	$ 437,129		$ 436,384
Weighted average note rate (as a percent)	3.51%		4.01%
Collateral Loans, Unpaid Principal	$ 519,893		$ 539,007
Collateral Loans, Carrying Value	518,256		536,869
Cash collateral	32,041		20,993
CLO IX
Debt Obligations
Debt, Face Value	356,400		356,400
Debt, Carrying Value	$ 353,149		$ 352,244
Weighted average note rate (as a percent)	3.43%		3.92%
Collateral Loans, Unpaid Principal	$ 411,415		$ 440,906
Collateral Loans, Carrying Value	410,554		439,691
Cash collateral	44,127		20,094
CLO VIII
Debt Obligations
Debt, Face Value	282,874		282,874
Debt, Carrying Value	$ 280,785		$ 279,857
Weighted average note rate (as a percent)	3.38%		3.87%
Collateral Loans, Unpaid Principal	$ 346,806		$ 354,713
Collateral Loans, Carrying Value	345,774		353,574
Cash collateral	13,734		10,287
CLO VII
Debt Obligations
Debt, Face Value	279,000		279,000
Debt, Carrying Value	$ 277,433		$ 276,527
Weighted average note rate (as a percent)	4.07%		4.56%
Collateral Loans, Unpaid Principal	$ 337,264		$ 325,057
Collateral Loans, Carrying Value	335,693		324,195
Cash collateral	10,061		30,725
CLO VI
Debt Obligations
Debt, Face Value			250,250
Debt, Carrying Value			$ 248,536
Weighted average note rate (as a percent)			5.05%
Collateral Loans, Unpaid Principal			$ 279,348
Collateral Loans, Carrying Value			278,364
Cash collateral			$ 41,404
Payoffs and paydowns of collateralized loan obligations	250,300
Deferred fees expensed as interest expense	$ 1,200

Debt Obligations, Luxembourg Debt Fund (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2019	Dec. 31, 2018
Debt Obligations
Debt, Carrying Value		$ 1,876,900	$ 1,593,548
Weighted Average Note Rate (as a percent)		3.85%	4.35%
Luxembourg debt fund
Debt Obligations
Value of portfolio loans as collateral	$ 100,000
Debt, Face Value	$ 70,000	$ 70,000	$ 70,000
Debt, Carrying Value		$ 68,528	$ 68,183
Weighted Average Note Rate (as a percent)		6.25%	6.75%
Collateral Loans, UPB		$ 76,887	$ 69,186
Collateral Loans, Carrying Value		76,625	68,924
Cash collateral		23,113	30,814
Deferred financing fees		$ 1,500	$ 1,800
Weighted average note rate including certain fees and costs (as a percent)		7.32%	7.49%
Collateral at risk		$ 0	$ 0
One-month LIBOR \| Luxembourg debt fund
Debt Obligations
Variable rate, spread (as a percent)	4.15%
Debt Fund
Debt Obligations
Equity formed	$ 100,000
Equity interest retained	$ 30,000
Reinvested period allowed	3 years

Debt Obligations, Senior Unsecured Notes (Details) - USD ($) $ in Thousands	1 Months Ended				9 Months Ended
	Oct. 31, 2019	Mar. 31, 2019	May 31, 2018	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2018
Debt Obligations
Senior notes carrying value					$ 211,188	$ 122,484
Senior Unsecured Notes
Debt Obligations
Principal amount					$ 215,000	125,000
6.50% Convertible Notes
Debt Obligations
Interest rate (as a percent)					6.50%
Proceeds from issued debt					$ 100
5.625% Notes
Debt Obligations
Principal amount			$ 125,000	$ 100,000
Interest rate (as a percent)				5.625%
Proceeds from issued debt			$ 25,000	$ 122,300
Redemption of aggregate principal amount (as a percent)				100.00%
Senior notes carrying value					122,900	122,500
Deferred financing fees					$ 2,100	$ 2,500
Weighted average note rate including certain fees and costs (as a percent)					6.08%
5.75% Notes
Debt Obligations
Principal amount		$ 90,000
Interest rate (as a percent)		5.75%
Proceeds from issued debt		$ 88,200
Redemption of aggregate principal amount (as a percent)		100.00%
Senior notes carrying value					$ 88,300
Deferred financing fees					$ 1,700
Weighted average note rate including certain fees and costs (as a percent)					6.11%
7.375% Convertible Notes
Debt Obligations
Interest rate (as a percent)				7.375%
Debt instrument redemption value				$ 97,900
4.75% Notes \| Subsequent Event
Debt Obligations
Principal amount	$ 110,000
Interest rate (as a percent)	4.75%
Proceeds from issued debt	$ 108,200

Debt Obligations, Convertible Senior Unsecured Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018	Jul. 31, 2018 USD ($) $ / shares	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2016 $ / shares	Nov. 30, 2017 $ / shares
Debt Obligations
Cash paid for the exchange of convertible notes						$ 3,149
Loss on extinguishment of debt					$ (4,960)	(128)	$ (4,960)
Amount of the if-converted value of the convertible notes exceeded their principal amounts						26,300
Convertible Senior Unsecured Notes
Debt Obligations
Principal amount	$ 265,705			$ 265,705		$ 265,705		$ 270,057
Proceeds received, net of estimated issuance costs			$ 34,500
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed									100.00%
Maturity period (in years)						1 year 9 months		2 years 5 months 27 days
Unamortized Debt Discount	5,699			5,699		$ 5,699		$ 8,229
Unamortized Deferred Financing Fees	4,900			4,900		4,900		7,060
Net Carrying Value, Liability Component	$ 255,106			255,106		255,106		254,768
Net Carrying Value, Equity Component						9,436		$ 9,436
Interest expense				5,000	5,000	15,100	16,000
Interest expense related to cash coupon				3,500	3,100	10,400	9,900
Debt discount				800	900	2,500	2,000
Deferred fees expensed as interest expense				$ 700	$ 1,000	$ 2,200	$ 4,100
Cost of the notes (as a percent)	7.45%			7.45%		7.45%		7.45%
5.375% Convertible Notes
Debt Obligations
Principal amount	$ 1,100			$ 1,100		$ 1,100
Interest rate (as a percent)	5.375%			5.375%		5.375%
Cash paid for the exchange of convertible notes						$ 127,600
Conversion rate of the notes to common stock, per $1,000 principal amount of notes	107.7122	113.8227
Conversion price per share of common stock \| $ / shares	$ 8.79			$ 8.79		$ 8.79				$ 9.28
5.375% Convertible Notes \| Issued on July 3, 2018 \| First Offering
Debt Obligations
Principal amount	$ 115,000			$ 115,000		$ 115,000
6.50% Convertible Notes
Debt Obligations
Interest rate (as a percent)	6.50%			6.50%		6.50%
Cash paid for the exchange of convertible notes						$ 99,800
Conversion rate of the notes to common stock, per $1,000 principal amount of notes						129.6955			119.3033
Conversion price per share of common stock \| $ / shares	$ 7.71			$ 7.71		$ 7.71			$ 8.38
5.25% Convertible Notes
Debt Obligations
Principal amount			$ 264,500
Interest rate (as a percent)			5.25%
Proceeds received, net of estimated issuance costs						$ 256,100
5.25% Convertible Notes \| Issued on July 3, 2018 \| First Offering
Debt Obligations
Principal amount			$ 115,000
Conversion rate of the notes to common stock, per $1,000 principal amount of notes	88.9843		86.9943
Conversion price per share of common stock \| $ / shares	$ 11.24		$ 11.50	$ 11.24		$ 11.24
5.25% Convertible Notes \| Issued on July 20, 2018 \| Second Offering
Debt Obligations
Principal amount	$ 149,500		$ 149,500	$ 149,500		$ 149,500
Conversion rate of the notes to common stock, per $1,000 principal amount of notes	79.6135		77.8331
Conversion price per share of common stock \| $ / shares	$ 12.56		$ 12.85	$ 12.56		$ 12.56
5.375% and 6.50% Convertible Notes
Debt Obligations
Cash paid for the exchange of convertible notes						$ 219,800
Common stock exchanged (in shares) \| shares						6,820,196.0

Debt Obligations, Junior Subordinated Notes (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Obligations
Debt carrying value	$ 140,767	$ 140,259
Weighted average note rate (as a percent)	3.85%	4.35%
Junior subordinated notes
Debt Obligations
Debt carrying value	$ 140,800	$ 140,300
Deferred amount Due at maturity	11,600	12,000
Deferred fees expensed as interest expense	$ 2,000	$ 2,100
Weighted average note rate (as a percent)	4.93%	5.66%
Weighted average note rate including certain fees and costs (as a percent)	5.02%	5.75%

Debt Obligations, Debt Covenants (Details) - USD ($)	1 Months Ended
Debt Obligations, Debt Covenants (Details) - USD ($)	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Sep. 30, 2019
CLO VII
Debt Covenants
Current overcollateralization ratio (as a percent)	129.03%	129.03%	129.03%	129.03%	129.03%
Limit overcollateralization ratio (as a percent)	128.03%
Current interest coverage ratio (as a percent)	186.91%
Limit interest coverage ratio (as a percent)	120.00%
CLO VIII
Debt Covenants
Current overcollateralization ratio (as a percent)	129.03%	129.03%	129.03%	129.03%	129.03%
Limit overcollateralization ratio (as a percent)	128.03%
Current interest coverage ratio (as a percent)	303.85%
Limit interest coverage ratio (as a percent)	120.00%
CLO IX
Debt Covenants
Current overcollateralization ratio (as a percent)	134.68%	134.68%	134.68%	134.68%	134.68%
Limit overcollateralization ratio (as a percent)	133.68%
Current interest coverage ratio (as a percent)	277.58%
Limit interest coverage ratio (as a percent)	120.00%
CLO X
Debt Covenants
Current overcollateralization ratio (as a percent)	126.98%	126.98%	126.98%	126.98%	126.98%
Limit overcollateralization ratio (as a percent)	125.98%
Current interest coverage ratio (as a percent)	294.75%
Limit interest coverage ratio (as a percent)	120.00%
CLO XI
Debt Covenants
Current overcollateralization ratio (as a percent)	121.95%	121.95%
Limit overcollateralization ratio (as a percent)	120.95%
Current interest coverage ratio (as a percent)	217.01%
Limit interest coverage ratio (as a percent)	120.00%
Junior subordinated notes
Debt Covenants
Amount payable on default of senior debt						$ 0

Allowance for Loss-Sharing Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Roll forward of loss contingency accrual
Recoveries (charge-offs) , net			$ (330)	$ 54
Fannie Mae
Roll forward of loss contingency accrual
Loss-sharing obligations (as a percent)			0.24%		0.25%
Loss-Sharing Obligation
Roll forward of loss contingency accrual
Outstanding advances under the Fannie Mae DUS program	$ 100		$ 100		$ 100
Loss-Sharing Obligation \| Fannie Mae
Roll forward of loss contingency accrual
Beginning balance of the period	34,417	$ 31,402	34,298	30,511	30,511
Provisions for loss sharing	1,326	2,924	3,880	5,263
Provisions reversal for loan repayments	(591)	(905)	(2,323)	(2,423)
Recoveries (charge-offs) , net	373	(16)	(330)	54
Ending balance of the period	35,525	$ 33,405	35,525	$ 33,405	34,298
Maximum quantifiable liability	$ 2,690,000		$ 2,690,000		$ 2,460,000

Derivative Financial Instruments, Agency Business (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) item	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) item	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) item
Derivative Financial Instruments
Notional Value, classified in Other Assets	$ 307,099		$ 307,099		$ 400,661
Notional Value, classified in Other Liabilities	331,229		331,229		108,625
Net gains (losses) from changes in the fair value of derivatives	(4,700)	$ (4,400)	(6,100)	$ 2,300
Income from mortgage servicing rights	29,911	$ 25,216	62,852	$ 62,787
Agency Business
Derivative Financial Instruments
Notional Value, classified in Other Assets	710,628		710,628		509,286
Fair Value, classified in Other Assets	5,098		5,098		6,113
Fair Value, classified in Other Liabilities	(5,558)		$ (5,558)		$ (732)
Swap Futures
Derivative Financial Instruments
Derivative, maturity term			3 months
Swap Futures \| Minimum
Derivative Financial Instruments
Derivative Swap Rate Period			5 years
Swap Futures \| Maximum
Derivative Financial Instruments
Derivative Swap Rate Period			10 years
Swap Futures \| Agency Business \| Other Income
Derivative Financial Instruments
Realized gain (loss) on derivatives	200		$ 200
Unrealized gain (loss) on derivatives	(200)		(200)
Swap Futures \| Structured Business \| Other Income
Derivative Financial Instruments
Realized gain (loss) on derivatives	(400)		(600)
Unrealized gain (loss) on derivatives	$ 100
Swap Futures \| Structured Business \| Other Income \| Maximum
Derivative Financial Instruments
Unrealized gain (loss) on derivatives			$ (100)
Non-Qualifying \| Rate lock commitments \| Agency Business
Derivative Financial Instruments
Count \| item	10		10		4
Notional Value, classified in Other Assets	$ 94,674		$ 94,674		$ 18,161
Fair Value, classified in Other Assets	589		589		324
Fair Value, classified in Other Liabilities	$ (2,515)		$ (2,515)		$ (95)
Non-Qualifying \| Forward Sale Commitments \| Agency Business
Derivative Financial Instruments
Count \| item	84		84		90
Notional Value, classified in Other Assets	$ 543,654		$ 543,654		$ 491,125
Fair Value, classified in Other Assets	4,509		4,509		5,789
Fair Value, classified in Other Liabilities	$ (3,043)		$ (3,043)		$ (637)
Non-Qualifying \| Swap Futures \| Agency Business
Derivative Financial Instruments
Count \| item	7		7
Notional Value, classified in Other Assets	$ 72,300		$ 72,300
Non-Qualifying \| Swap Futures \| Structured Business
Derivative Financial Instruments
Count \| item	2		2
Notional Value, classified in Other Assets	$ 10,600		$ 10,600

Fair Value, Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financial assets:
Loans and investments, net - Principal/Notional Amount	$ 3,961,709	$ 3,283,342
Loans and investments, net	3,874,069	3,200,145
Loans held-for-sale, net - Principal/Notional Amount	529,722	472,964
Loans held-for-sale, net	529,722	472,964
Securities, held-to-maturity, net - Principal/Notional Amount	118,925	103,515
Securities held-to-maturity, net	95,181	76,363
Derivative financial instruments - Principal/Notional Amount	307,099	400,661
Financial liabilities:
Credit and repurchase facilities, Principal/Notional Amount	1,388,248	1,138,135
Credit and repurchase facilities, Carrying value	1,385,764	1,135,627
Collateralized loan obligations	1,876,900	1,593,548
Debt fund	68,528	68,183
Senior unsecured notes	211,188	122,484
Convertible senior unsecured notes, net	255,106	254,768
Junior subordinated notes	140,767	140,259
Derivative financial instruments - Principal/Notional Amount	$ 331,229	108,625
Maximum number of days held-for-sale loans are typically sold	60 days
Carrying Value
Financial assets:
Loans and investments, net	$ 3,874,069	3,200,145
Loans held-for-sale, net	537,826	481,664
Capitalized mortgage servicing rights, net	283,688	273,770
Securities held-to-maturity, net	95,181	76,363
Derivative financial instruments	5,098	6,113
Financial liabilities:
Credit and repurchase facilities, Carrying value	1,385,764	1,135,627
Collateralized loan obligations	1,876,900	1,593,548
Debt fund	68,528	68,183
Senior unsecured notes	211,188	122,484
Convertible senior unsecured notes, net	255,106	254,768
Junior subordinated notes	140,767	140,259
Derivative financial instruments	5,558	732
Fair Value
Financial assets:
Loans and investments, net	3,914,135	3,249,499
Loans held-for-sale, net	546,887	489,546
Capitalized mortgage servicing rights, net	323,662	322,463
Securities held-to-maturity, net	97,918	79,097
Derivative financial instruments	5,098	6,113
Financial liabilities:
Credit and repurchase facilities, Carrying value	1,385,261	1,135,774
Collateralized loan obligations	1,894,048	1,588,989
Debt fund	70,132	70,154
Senior unsecured notes	217,344	123,750
Convertible senior unsecured notes, net	290,986	267,324
Junior subordinated notes	97,218	95,873
Derivative financial instruments	5,558	732
CLOs
Financial liabilities:
Debt instrument - Principal/Notional Amount	1,892,274	1,609,524
Collateralized loan obligations	1,876,900	1,593,548
Debt Fund
Financial liabilities:
Debt instrument - Principal/Notional Amount	70,000	70,000
Senior Unsecured Notes
Financial liabilities:
Debt instrument - Principal/Notional Amount	215,000	125,000
Convertible Senior Unsecured Notes
Financial liabilities:
Debt instrument - Principal/Notional Amount	265,705	270,057
Junior subordinated notes
Financial liabilities:
Debt instrument - Principal/Notional Amount	154,336	154,336
Junior subordinated notes	$ 140,800	$ 140,300

Fair Value, Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) item	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Financial assets:
Allowance for impaired loan losses	$ 71,069		$ 71,069
Number of impaired loans \| item	5
Impairment loss on real estate owned	$ 1,000	$ 2,000
Carrying Value
Financial assets:
Derivative financial instruments	5,098		6,113
Aggregate carrying value of impaired loans before loan loss reserves	131,300
Financial liabilities:
Derivative financial instruments	5,558		732
Fair Value
Financial assets:
Derivative financial instruments	5,098		6,113
Financial liabilities:
Derivative financial instruments	5,558		$ 732
Recurring basis \| Carrying Value
Financial assets:
Derivative financial instruments	5,098
Financial liabilities:
Derivative financial instruments	5,558
Recurring basis \| Fair Value
Financial assets:
Derivative financial instruments	5,098
Financial liabilities:
Derivative financial instruments	5,558
Nonrecurring basis \| Carrying Value
Financial assets:
Impaired loans, net	60,268
Nonrecurring basis \| Fair Value
Financial assets:
Impaired loans, net	60,268
Level 2 \| Recurring basis
Financial assets:
Derivative financial instruments	4,509
Financial liabilities:
Derivative financial instruments	5,558
Level 3 \| Recurring basis
Financial assets:
Derivative financial instruments	589
Level 3 \| Nonrecurring basis
Financial assets:
Impaired loans, net	$ 60,268

Fair Value, Level 3 Inputs (Details) - Level 3 $ in Thousands	Sep. 30, 2019 USD ($) item
Land
Quantitative information about Level 3 fair value measurements
Impaired loans, fair value \| $	$ 59,517
Land \| Discount rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	0.2300
Land \| Revenue growth rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	0.0300
Office
Quantitative information about Level 3 fair value measurements
Impaired loans, fair value \| $	$ 741
Office \| Discount rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	0.1100
Office \| Capitalization rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	0.0900
Office \| Revenue growth rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	0.0250
Rate lock commitments
Quantitative information about Level 3 fair value measurements
Derivative financial instruments \| $	$ 589
Derivative Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Derivative Asset, Measurement Input [Extensible List]	Discount rate
Rate lock commitments \| Discount rate
Quantitative information about Level 3 fair value measurements
Derivative financial instruments measurement input	0.1225

Fair Value, Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative assets
Balance at beginning of period	$ 745	$ 606	$ 324	$ 276
Settlements	(30,067)	(17,793)	(62,587)	(62,313)
Realized gains recorded in earnings	29,322	17,187	62,263	62,037
Unrealized gains recorded in earnings	589	749	589	749
Balance at end of period	$ 589	$ 749	$ 589	$ 749

Fair Value, Components of fair value and other relevant information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Fair Value of Servicing Rights	$ 10,953
Total Fair Value Adjustment	10,953
Rate lock commitments
Notional/Principal Amount	94,674
Fair Value of Servicing Rights	589
Interest Rate Movement Effect	(2,515)
Total Fair Value Adjustment	(1,926)
Forward Sale Commitments
Notional/Principal Amount	543,655
Interest Rate Movement Effect	2,515
Total Fair Value Adjustment	2,515
Loans held-for-sale, net
Notional/Principal Amount	448,981
Fair Value of Servicing Rights	10,364
Total Fair Value Adjustment	$ 10,364

Fair Value, Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial assets:
Loans and investments, net	$ 3,874,069	$ 3,200,145
Loans held-for-sale, net	529,722	472,964
Securities held-to-maturity, net	95,181	76,363
Financial liabilities:
Credit and repurchase facilities, Carrying value	1,385,764	1,135,627
Collateralized loan obligations	1,876,900	1,593,548
Debt fund	68,528	68,183
Senior unsecured notes	211,188	122,484
Convertible senior unsecured notes, net	255,106	254,768
Junior subordinated notes	140,767	140,259
Level 1
Financial liabilities:
Senior unsecured notes	217,344
Level 2
Financial assets:
Loans held-for-sale, net	536,523
Financial liabilities:
Credit and repurchase facilities, Carrying value	461,247
Convertible senior unsecured notes, net	290,986
Level 3
Financial assets:
Loans and investments, net	3,914,135
Loans held-for-sale, net	10,364
Capitalized mortgage servicing rights, net	323,662
Securities held-to-maturity, net	97,918
Financial liabilities:
Credit and repurchase facilities, Carrying value	924,014
Collateralized loan obligations	1,894,048
Debt fund	70,132
Junior subordinated notes	97,218
Carrying Value
Financial assets:
Loans and investments, net	3,874,069	3,200,145
Loans held-for-sale, net	537,826	481,664
Capitalized mortgage servicing rights, net	283,688
Securities held-to-maturity, net	95,181	76,363
Financial liabilities:
Credit and repurchase facilities, Carrying value	1,385,764	1,135,627
Collateralized loan obligations	1,876,900	1,593,548
Debt fund	68,528	68,183
Senior unsecured notes	211,188	122,484
Convertible senior unsecured notes, net	255,106	254,768
Junior subordinated notes	140,767	140,259
Fair Value
Financial assets:
Loans and investments, net	3,914,135	3,249,499
Loans held-for-sale, net	546,887	489,546
Capitalized mortgage servicing rights, net	323,662
Securities held-to-maturity, net	97,918	79,097
Financial liabilities:
Credit and repurchase facilities, Carrying value	1,385,261	1,135,774
Collateralized loan obligations	1,894,048	1,588,989
Debt fund	70,132	70,154
Senior unsecured notes	217,344	123,750
Convertible senior unsecured notes, net	290,986	267,324
Junior subordinated notes	$ 97,218	$ 95,873

Commitments and Contingencies, Contractual Commitments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Agency Business Commitments
Cash collateral	$ 190,046	$ 190,046	$ 180,606	$ 202,736	$ 139,398
Debt Obligations
Remainder of 2019	520,000	520,000
2020	1,180,000	1,180,000
2021	714,900	714,900
2022	878,100	878,100
2023	269,700	269,700
2024	102,400	102,400
Thereafter	324,100	324,100
Unfunded CLO Commitments
Unfunded commitments related to structured loans and investments	$ 192,800	$ 192,800
Operating Leases
Operating Lease, Weighted average remaining lease term (in years)	5 years 3 months 18 days	5 years 3 months 18 days
Operating Lease, Weighted average discount rate (as a percent)	4.80%	4.80%
Operating lease expense	$ 1,500	$ 4,500
Maturities of operating lease liabilities
2019 (three months ending December 31, 2019)	1,403	1,403
2020	5,293	5,293
2021	3,037	3,037
2022	2,773	2,773
2023	2,051	2,051
2024	1,459	1,459
Thereafter	3,306	3,306
Total	$ 19,322	$ 19,322
Maximum
Operating Leases
Remaining lease term	7 years 4 months 24 days	7 years 4 months 24 days
Minimum
Operating Leases
Remaining lease term	1 month 6 days	1 month 6 days
Cash collateral arrangement - purchase and loss obligations under Freddie Mac's SBL Program
Agency Business Commitments
Cash collateral per securitization	$ 5,000	$ 5,000
Outstanding letters of credit	5,000	5,000
Fannie Mae
Agency Business Commitments
Minimum liquid assets to be maintained to meet operational liquidity requirements	14,400	$ 14,400
Period of funding for collateral requirement		48 months
Fannie Mae \| Restricted liquidity arrangement - loans sold under the Fannie Mae DUS program
Agency Business Commitments
Letter of credit assigned	45,000	$ 45,000
Reserve required to fund additional restricted liquidity over the next 48 months	36,000	$ 36,000
Period of additional funding for collateral requirement		48 months
Cash collateral	$ 1,400	$ 1,400
Forward Contracts
Agency Business Commitments
Period of contractual commitment		60 days

Commitments and Contingencies, Litigation (Details) $ in Millions		1 Months Ended
	Jun. 15, 2011 USD ($) lawsuit defendant	Jun. 30, 2013 USD ($) lawsuit defendant	Jun. 30, 2011 lawsuit defendant
Arbor ESH II, LLC
Litigation
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. \| $	$ 115.0
Lawsuits filed by Extended Stay Litigation Trust (the Trust)
Litigation
Number of lawsuits or complaints filed \| lawsuit			3
Number of lawsuits filed in United States Bankruptcy Court \| lawsuit			2
Number of defendants			73
Number of defendants who are corporate and partnership entities			55
Number of defendants named in a legal action who are individuals			18
Lawsuits filed by Extended Stay Litigation Trust (the Trust) \| Fiduciary Duty Claims
Litigation
Number of lawsuits or complaints filed \| lawsuit	2
Number of defendants	2
Lawsuits filed by Extended Stay Litigation Trust (the Trust) \| Motion to amend the lawsuits
Litigation
Number of lawsuits consolidated \| lawsuit		1
Number of defendants removed due to consolidation of lawsuits		47
Number of defendants related to the entity		0
Number of defendants remaining due to consolidation of lawsuits		26
Number of defendants who are corporate and partnership entities		16
Number of defendants named in a legal action who are individuals		10
Number of lawsuits before amendment \| lawsuit		100
Number of lawsuits after amendment \| lawsuit		17
Aggregate amount which the Trust would be seeking from the affiliates of the entity \| $		$ 139.0

Variable Interest Entities (Details)	9 Months Ended
Variable Interest Entities (Details)	Sep. 30, 2019 USD ($) item	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Variable Interest Entities
Loan loss reserves related to VIEs	$ 71,069,000	$ 71,069,000	$ 71,069,000	$ 60,951,000	$ 58,733,000	$ 62,783,000
Assets:
Restricted cash	190,046,000		180,606,000	$ 202,736,000		$ 139,398,000
Loans and investments, net	3,874,069,000		3,200,145,000
Due from Related Parties	5,011,000		1,287,000
Other assets	112,675,000		86,086,000
Total assets	5,395,634,000		4,612,175,000
Liabilities:
Collateralized loan obligations	1,876,900,000		1,593,548,000
Debt fund	68,528,000		68,183,000
Other liabilities	137,839,000		118,780,000
Total liabilities	4,197,238,000		3,546,609,000
Consolidated variable interest entities
Assets:
Total assets	2,527,053,000		2,198,096,000
Liabilities:
Total liabilities	1,950,970,000		1,665,139,000
CLOs and Debt Fund
Assets:
Restricted cash	188,113,000		179,855,000
Loans and investments, net	2,320,954,000		2,001,617,000
Other assets	17,986,000		16,624,000
Total assets	2,527,053,000		2,198,096,000
Liabilities:
Collateralized loan obligations	1,876,900,000		1,593,548,000
Debt fund	68,528,000		68,183,000
Due to related party	1,753,000
Other liabilities	3,789,000		3,408,000
Total liabilities	$ 1,950,970,000		$ 1,665,139,000
Unconsolidated VIEs
Variable Interest Entities
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest \| item	29
Carrying Amount	$ 544,294
Carrying amount of loans and investments before reserves related to VIEs	129,600,000
Loan loss reserves related to VIEs	69,400,000
Exposure to real estate debt	4,620,000,000
Unconsolidated VIEs \| Loans
Variable Interest Entities
Carrying Amount	437,498,000
Unconsolidated VIEs \| B Piece and SFR bonds
Variable Interest Entities
Carrying Amount	95,181,000
Unconsolidated VIEs \| Equity investments
Variable Interest Entities
Carrying Amount	8,887,000
Unconsolidated VIEs \| Agency interest only strips
Variable Interest Entities
Carrying Amount	$ 2,728,000

Equity (Details) $ / shares in Units, $ in Thousands						1 Months Ended						3 Months Ended			9 Months Ended		12 Months Ended
Equity (Details) $ / shares in Units, $ in Thousands	Oct. 30, 2019 $ / shares	Jul. 31, 2019 $ / shares	May 01, 2019 $ / shares	Feb. 13, 2019 $ / shares	Feb. 01, 2019 $ / shares	Oct. 31, 2019 USD ($) shares	Jul. 31, 2019 USD ($) shares	May 31, 2019 USD ($) $ / shares shares	Mar. 31, 2019 USD ($) shares	Jan. 31, 2019 USD ($) shares	Dec. 31, 2018 $ / shares	Sep. 30, 2019 USD ($) Vote $ / shares shares	Mar. 31, 2019 USD ($) shares	Sep. 30, 2018 USD ($) $ / shares	Sep. 30, 2019 USD ($) Vote $ / shares shares	Sep. 30, 2018 USD ($) $ / shares shares	Dec. 31, 2018 $ / shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 25, 2019 shares	Aug. 31, 2019 shares	Jun. 30, 2018 USD ($)
Common stock
Proceeds from issuance of shares under public offering \| $															$ 117,879	$ 55,908
Noncontrolling Interest
Preferred stock, par value (in dollars per share) \| $ / shares											$ 0.01	$ 0.01			$ 0.01		$ 0.01
OP Units redeemed by cash \| $															$ 1,673	$ 6,845
Distributions
Cash dividend declared (in dollars per share) \| $ / shares												$ 0.29		$ 0.25	$ 0.84	$ 0.71
Employee compensation and benefits
Deferred Compensation
Share-based compensation expense \| $												$ 2,300		$ 1,200	$ 6,900	$ 4,200
Selling and administrative expense
Deferred Compensation
Share-based compensation expense \| $															$ 700	$ 600
Restricted common stock \| Certain employees of ours
Deferred Compensation
Number of fully vested shares issued							124,069								333,884
Total grant date fair value \| $							$ 1,500								$ 4,200
Restricted common stock \| Chief executive officer
Deferred Compensation
Number of fully vested shares issued													58,738
Total grant date fair value \| $													$ 700
Vesting percentage													25.00%
Restricted common stock \| Chief executive officer \| First Anniversaries
Deferred Compensation
Vesting percentage													25.00%
Restricted common stock \| Chief executive officer \| Second Anniversaries
Deferred Compensation
Vesting percentage													25.00%
Restricted common stock \| Chief executive officer \| Third Anniversaries
Deferred Compensation
Vesting percentage													25.00%
Restricted common stock \| Employees
Deferred Compensation
Vesting percentage							25.00%								33.00%
Restricted common stock \| Employees \| March 2020
Deferred Compensation
Vesting percentage							25.00%								33.00%
Performance-based restricted stock
Deferred Compensation
Restricted stock with fully vested of date (in shares)													445,765
Restricted stock with fully vested net settled of date (in shares)													203,492
Performance-based restricted stock \| Chief executive officer
Deferred Compensation
Granted of restricted stock units that vest at the end of four-year performance period (in shares)							246,508						352,427
Vesting period (in years)																4 years		4 years	4 years	4 years
Total grant date fair value \| $							$ 3,000		$ 1,700
8.25% Series A preferred stock
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)															8.25%	8.25%	8.25%
7.75% Series B preferred stock
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)															7.75%	7.75%	7.75%
8.50% Series C preferred stock
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)															8.50%	8.50%	8.50%
Common Stock
Common stock
Shares issued in connection with exchange of convertible debt notes (in shares)															214,029
Number of common stock sold (in shares)												187,000			9,387,000	6,452,700
Value of common stock available under shelf registration statement \| $												$ 281,100			$ 281,100
Aggregate amount of debt securities, common stock, preferred stock, depositary shares and warrants filed under shelf registration statement \| $																							$ 500,000
Number of shares purchased															920,000
Distributions
Cash dividend declared (in dollars per share) \| $ / shares	$ 0.30	$ 0.29	$ 0.28	$ 0.27							0.15
Dividend declared in cash \| $										$ 2,500
Dividend declared in shares										901,432
Tax Treatment for Dividends Paid
Total dividends paid \| $										$ 2,500
Common Stock \| Chief executive officer
Common stock
Number of shares purchased								920,000
Common Stock \| Non-management members of the Board of Directors
Deferred Compensation
Number of fully vested shares issued									55,244
Total grant date fair value \| $									$ 700
Preferred Stock \| 8.25% Series A preferred stock
Distributions
Cash dividend declared on redeemable preferred stock (in dollars per share) \| $ / shares	$ 0.515625	0.515625	0.515625		$ 0.515625
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)	8.25%
Preferred Stock \| 7.75% Series B preferred stock
Distributions
Cash dividend declared on redeemable preferred stock (in dollars per share) \| $ / shares	$ 0.484375	0.484375	0.484375		0.484375
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)	7.75%
Preferred Stock \| 8.50% Series C preferred stock
Distributions
Cash dividend declared on redeemable preferred stock (in dollars per share) \| $ / shares	$ 0.53125	$ 0.53125	$ 0.53125		$ 0.53125
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)	8.50%
Operating Partnership Units
Noncontrolling Interest
Conversion ratio for operating partnership units to common stock shares															1
Consideration in stock to be paid with operating partnership units (in shares)															391,156	577,185
OP Units redeemed by cash \| $															$ (1,700)	$ 6,800
Common stock, shares issued (in shares)															258,677
Distributions
Cash dividend declared (in dollars per share) \| $ / shares											$ 0.15
Dividend declared in cash \| $										$ 600
Dividend declared in shares										221,666
Tax Treatment for Dividends Paid
Total dividends paid \| $										$ 600
Operating Partnership Units \| Special voting preferred shares
Noncontrolling Interest
Number of preferred stock shares paired with each OP units															1
Preferred stock, par value (in dollars per share) \| $ / shares												$ 0.01			$ 0.01
Number of vote per share of Special Voting Preferred Shares \| Vote												1			1
OP units outstanding (in shares)												20,484,094			20,484,094
Voting power of outstanding stock (as a percent)															17.80%
5.375% Convertible Notes
Common stock
Interest rate (as a percent)												5.375%			5.375%
6.50% Convertible Notes
Common stock
Interest rate (as a percent)												6.50%			6.50%
Public offering \| Common Stock
Common stock
Number of common stock sold (in shares)								9,200,000
Proceeds from issuance of shares under public offering \| $								$ 115,600
Issued price per share (in dollars per share) \| $ / shares								$ 12.58
At-The-Market \| Common Stock
Common stock
Number of shares available under an "At-The-Market" equity offering with JMP Securities LLC																					4,300,000	7,500,000
Number of common stock sold (in shares)						2,975,000						187,000
Proceeds from issuance of shares under public offering \| $						$ 38,600						$ 2,400
Over-Allotment Option \| Common Stock
Common stock
Number of common stock sold (in shares)								1,200,000

Equity, Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic
Net income attributable to common stockholders	$ 33,965	$ 27,737	$ 85,532	$ 71,093
Weighted average shares outstanding (in shares)	94,486,839	74,802,582	89,899,074	67,490,132
Net income per common share (in dollars per share)	$ 0.36	$ 0.37	$ 0.95	$ 1.05
Diluted
Net income attributable to noncontrolling interest	$ 7,363	$ 7,799	$ 19,429	$ 22,347
Net income attributable to common stockholders and noncontrolling interest	$ 41,328	$ 35,536	$ 104,961	$ 93,440
Weighted average shares outstanding (in shares)	94,486,839	74,802,582	89,899,074	67,490,132
Dilutive effect of OP units (in shares)	20,484,094	21,023,735	20,508,205	21,160,999
Dilutive effect of restricted stock units (in shares)	1,427,329	1,559,217	1,405,776	1,441,264
Dilutive effect of convertible notes (in shares)	1,069,782	1,050,430	1,220,913	1,041,212
Weighted average shares outstanding ( in shares)	117,468,044	98,435,964	113,033,968	91,133,607
Net income per common share (in dollars per share)	$ 0.35	$ 0.36	$ 0.93	$ 1.03
Chief executive officer \| Performance-based restricted stock
Diluted
Vesting period (in years)				4 years	4 years	4 years	4 years

Income Taxes (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Provision from income taxes		$ 6,623	$ 5,381	$ 10,963	$ 1,096
Deferred tax benefit (provision)		2,200	1,300	(1,026)	(14,454)
Current tax provision		4,400	$ 6,700	12,000	15,600
Repayment of debt					$ 50,000
Maximum
Provision from income taxes		$ 6,600		$ 11,000
Preferred equity interest financing agreement \| ACM / Our "Former Manager"
Repayment of debt	$ 50,000

Agreements and Transactions with Related Parties, Other Related Party (Details) $ in Thousands	1 Months Ended								3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended					57 Months Ended
	Sep. 30, 2019 USD ($) shares	Jul. 31, 2019 USD ($)	Jan. 31, 2019 USD ($)	Nov. 30, 2018 USD ($)	Oct. 31, 2018 USD ($)	Aug. 31, 2018 USD ($)	Jun. 30, 2018 USD ($) property loan item	Apr. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) loan	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($) property loan item	Dec. 31, 2016 USD ($) property shares	Dec. 31, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan	Sep. 30, 2019 USD ($) shares	Mar. 31, 2019	Jan. 31, 2018 USD ($)	Mar. 31, 2016 USD ($)
Agreements and transactions with related parties
Due to related party	$ 3,170								$ 3,170				$ 3,170							$ 3,170
Due from Related Parties	5,011								5,011			$ 1,287	5,011		$ 1,287					5,011
Income (loss) from equity affiliates									3,718	$ (1,028)			9,133	$ 1,104
Residential Mortgage Banking Company
Agreements and transactions with related parties
Maximum percentage of guaranty provided by the Company in relation to the settlement																		50.00%
Maximum exposure under guaranty	800								800				800							800
Bridge loan, several multifamily properties
Agreements and transactions with related parties
Principal amount					$ 37,500
Percentage of ownership interest of related party in the entity					85.00%
Bridge loan, six multifamily properties
Agreements and transactions with related parties
UPB converted to a mezzanine loan			$ 2,000
Bridge loan, six multifamily properties \| Maturity date of September 2019
Agreements and transactions with related parties
Principal amount																	$ 12,900
Mezzanine loans
Agreements and transactions with related parties
Interest income recorded														100
Fixed rate of interest (as a percent)																		12.50%
Amount of loan to related party																		$ 3,000
Lexford Portfolio \| Bridge loans \| Maturity Date of June 2021
Agreements and transactions with related parties
Paydowns of principal made by borrower													250,000
Base spread (as a percent)							4.00%
Interest income recorded														5,500
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners	50,000								50,000				50,000							50,000
ACM, Certain executives and Consortium of independent outside investors \| AMAC III
Agreements and transactions with related parties
Amount invested	$ 9,000								9,000				9,000							$ 9,000
Ownership interest (as a percent)																					18.00%
Unaffiliated borrower \| Bridge loans
Agreements and transactions with related parties
Principal amount																$ 34,000
Unaffiliated borrower \| AMAC III \| Mezzanine loans
Agreements and transactions with related parties
Refinanced loan amount		$ 7,000
ACM / Our "Former Manager"
Agreements and transactions with related parties
Related party financing																						$ 50,000
Interest expense on related party loan											$ 300
Outstanding principal balance of related party financing																						$ 50,000
ACM / Our "Former Manager" \| Residential Mortgage Banking Company
Agreements and transactions with related parties
Noncontrolling interest in equity method investment acquired (as a percent)																		50.00%
Indirect ownership percentage																		22.5%
Acquisition purchase price																		$ 9,600
Income (loss) from equity affiliates									$ 2,600	400			$ 6,100	1,200
Maximum percentage of guaranty provided by the Company in relation to the settlement																		50.00%
ACM / Our "Former Manager" \| ACM Acquisition
Agreements and transactions with related parties
Number of preferred stock shares paired with each OP units \| shares																	1
Number of shares held by related party \| shares	4,285,694								4,285,694				4,285,694							4,285,694
OP units hold as part of acquisition \| shares													14,772,918
Percentage of voting power held by related party	16.50%								16.50%				16.50%							16.50%
ACM / Our "Former Manager" \| Non-qualified Residential Mortgages \| Residential Mortgage Banking Company
Agreements and transactions with related parties
Additional investment made by the company along with a consortium of independent outside investors																				$ 16,100
Proceeds from sale of available-for-sale securities																				16,900
ACM / Our "Former Manager" \| Mortgage loans
Agreements and transactions with related parties
Amount of mortgage loan secured by property, purchased by related party																		$ 47,000
ACM / Our "Former Manager" \| Mortgage loans \| Maturity date of April 2016, extended to April 2018
Agreements and transactions with related parties
Base spread (as a percent)																			4.80%
Interest income recorded														200
Number of mortgage loans secured by property purchased from related party \| loan																			2
ACM / Our "Former Manager" \| Mortgage loans \| Maturity date of April 2016, extended to April 2018 \| First mortgage
Agreements and transactions with related parties
Amount of mortgage loan secured by property, purchased by related party																			$ 14,600
ACM / Our "Former Manager" \| Mortgage loans \| Maturity date of April 2016, extended to April 2018 \| Second mortgage
Agreements and transactions with related parties
Proceeds from repayment in full																	$ 5,100
Amount of mortgage loan secured by property, purchased by related party																			$ 5,100
ACM / Our "Former Manager" \| Mortgage loans \| Maturity date April 2018, extended from April 2016 \| First mortgage
Agreements and transactions with related parties
Amount of mortgage loan secured by property, purchased by related party																							$ 14,600
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer \| Bridge loan, several multifamily properties
Agreements and transactions with related parties
Principal amount					$ 19,500
Base spread (as a percent)					4.00%
Interest income recorded									$ 300				$ 1,000
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer \| Bridge loan, several multifamily properties \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)					2.125%
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer \| Bridge loan, one multifamily property
Agreements and transactions with related parties
Principal amount	$ 17,300			$ 61,200					17,300				17,300							17,300
Percentage of ownership interest of related party in the entity				10.00%
Interest income recorded									300				1,000
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer \| Bridge loan, one multifamily property \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)				4.50%
LIBOR floor (as a percentage)				2.00%
Consortium of investors including an immediate family member of our officers \| Fannie Mae loan on a multifamily property
Agreements and transactions with related parties
Percentage of maximum loss-sharing obligation unpaid principal balance																5.00%
Principal amount																$ 46,900
Percentage of ownership interest of related party in the entity																17.60%
Consortium of investors including an immediate family member of our officers \| Fannie Mae loan on a multifamily property \| Maximum
Agreements and transactions with related parties
Interest income recorded									100	100			100	100
Consortium of Investors, including our Chief Executive Officer and our Former Manager
Agreements and transactions with related parties
Amount invested																$ 2,000
Ownership interest (as a percent)																26.10%
Number of portfolios of multifamily properties \| item																2
Consortium of Investors, including our Chief Executive Officer and our Former Manager \| Two portfolios of multifamily properties \| Bridge loans \| Maturity date of November 2018
Agreements and transactions with related parties
Principal amount																$ 14,800
Base spread (as a percent)																5.25%
LIBOR floor (as a percentage)																0.50%
Interest income recorded														300
Number of bridge loans originated \| item																2
Certain officers, including our Chief Executive Officer and our Former Manager \| Bridge loans \| Maturity Date of October 2018
Agreements and transactions with related parties
Base spread (as a percent)																		5.00%
LIBOR floor (as a percentage)																		0.25%
Interest income recorded										300				1,000
Number of bridge loans paid off \| loan												2
Number of mortgage loans secured by property purchased from related party \| loan																		2
Loan due from related party																		$ 16,700
Certain officers, including our Chief Executive Officer and our Former Manager \| Bridge loan, six multifamily properties \| Maturity date of September 2019
Agreements and transactions with related parties
Principal amount																	$ 48,000
Number of properties owned \| property																	6
Base spread (as a percent)																	4.50%
LIBOR floor (as a percentage)																	0.25%
Interest income recorded									100	300			200	1,600
Number of bridge loans paid off \| loan															4	1
Proceeds from repayment in full			$ 10,900												$ 28,300	$ 6,800
Certain officers, including our Chief Executive Officer and our Former Manager \| Bridge loan, six multifamily properties \| Maturity date of September 2019 \| Minimum
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity																	10.50%
Certain officers, including our Chief Executive Officer and our Former Manager \| Bridge loan, six multifamily properties \| Maturity date of September 2019 \| Maximum
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity																	12.00%
Certain officers, including our Chief Executive Officer and our Former Manager \| Mezzanine loans \| Maturity date of January 2024
Agreements and transactions with related parties
Fixed rate of interest (as a percent)			10.00%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Maturity Date of January 2021
Agreements and transactions with related parties
Interest income recorded														200
Certain certain officers, chief executive officer, and other unaffiliated investors \| Preferred equity investments \| Maturity date November 2018, extended from May 2018 \| Multifamily
Agreements and transactions with related parties
Equity investment																	$ 5,200
Fixed rate of interest (as a percent)																	10.00%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loans \| Maturity date of November 2018
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity																	7.50%
Interest income recorded														300
Amount of loan to related party																	$ 19,000
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loans \| Maturity date of November 2018 \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																	4.50%
LIBOR floor (as a percentage)																	0.25%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, several multifamily properties \| Maturity Date of January 2021
Agreements and transactions with related parties
Due to related party								$ 9,400
Principal amount	$ 8,400								8,400				8,400							$ 8,400
Percentage of ownership interest of related party in the entity								75.00%
Interest income recorded									200	100			400
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, several multifamily properties \| Maturity Date of January 2021 \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)								5.00%
LIBOR floor (as a percentage)								1.25%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, several multifamily properties \| Maturity date of June 2020
Agreements and transactions with related parties
Due to related party																$ 32,800
Percentage of ownership after transaction																90.00%
Base spread (as a percent)																5.00%
LIBOR floor (as a percentage)																1.13%
Interest income recorded									600	600			1,900	1,700
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, two multifamily properties \| Maturity date of fourth quarter 2020
Agreements and transactions with related parties
Principal amount																$ 28,000
Number of properties owned \| property																2
Percentage of ownership interest of related party in the entity																45.00%
Base spread (as a percent)																5.25%
Interest income recorded									600	500			1,700	1,600
Number of bridge loans originated \| item																2
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, two multifamily properties \| Maturity date of fourth quarter 2020 \| Minimum
Agreements and transactions with related parties
LIBOR floor (as a percentage)																1.24%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, two multifamily properties \| Maturity date of fourth quarter 2020 \| Maximum
Agreements and transactions with related parties
LIBOR floor (as a percentage)																1.54%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, two multifamily properties \| Maturity date of January 2019
Agreements and transactions with related parties
Principal amount																	$ 12,700
Number of properties owned \| property																	2
Percentage of ownership interest of related party in the entity																	50.00%
Base spread (as a percent)																	4.50%
LIBOR floor (as a percentage)																	0.25%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, one multifamily property \| Maturity Date of June 2021
Agreements and transactions with related parties
Principal amount							$ 21,700
Percentage of ownership interest of related party in the entity							75.00%
Interest income recorded									$ 400	300			1,000	400
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, one multifamily property \| Maturity Date of June 2021 \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)							4.75%
LIBOR floor (as a percentage)							1.25%
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, one multifamily property \| Maturity date of July 2020
Agreements and transactions with related parties
Principal amount																$ 36,000
Percentage of ownership interest of related party in the entity																95.00%
Base spread (as a percent)																4.50%
LIBOR floor (as a percentage)																1.00%
Interest income recorded										700				1,900
Certain certain officers, chief executive officer, and other unaffiliated investors \| Bridge loan, one multifamily property \| Maturity date of January 2019
Agreements and transactions with related parties
Interest income recorded										400			$ 600	1,000
Chief executive officer \| Minimum
Agreements and transactions with related parties
Ownership interest limit of our common stock under company charter (as a percent)	5.00%								5.00%				5.00%							5.00%
Kaufman Entities
Agreements and transactions with related parties
Percentage of our Former Manager's outstanding membership interest of related party in another related party	31.00%								31.00%				31.00%							31.00%
Director \| Ginkgo
Agreements and transactions with related parties
Percentage of managing member																33.00%
Consortium of affiliated investors \| Lexford Portfolio
Agreements and transactions with related parties
Management fee, percentage of gross revenues of underlying properties													4.75%
Immediate family member of chief executive officer \| Bridge Loan, several undeveloped parcels of land
Agreements and transactions with related parties
Principal amount						$ 17,700
Paydowns of principal made by borrower	$ 4,700
Percentage of ownership interest of related party in the entity						10.80%
Interest income recorded									$ 400	300			$ 1,500	300
Fixed rate of interest (as a percent)						10.00%
Immediate family member of chief executive officer \| Bridge loan, several multifamily properties
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity			23.90%
LIBOR floor (as a percentage)			2.375%
Immediate family member of chief executive officer \| Bridge loan, several multifamily properties \| LIBOR
Agreements and transactions with related parties
Base spread (as a percent)			4.25%
Interest income recorded									700				2,000
Lexford Portfolio \| Preferred equity investments
Agreements and transactions with related parties
Income (loss) from equity affiliates									1,200	700			3,000	1,900
Lexford Portfolio \| Bridge loans \| Maturity Date of June 2021
Agreements and transactions with related parties
Principal amount							$ 280,500
Interest income recorded									1,100	$ 4,400			9,100
Maximum exposure under guaranty	$ 619,200								$ 619,200				$ 619,200							$ 619,200
Number of bridge loans originated \| loan							12
Number of multifamily properties renovated \| property							72
Number of one-year extension options \| item							2
Ginkgo \| Fannie Mae
Agreements and transactions with related parties
Loan purchased a multifamily apartment complex which assumed																$ 8,300
Percentage of maximum loss-sharing obligation unpaid principal balance																20.00%
Percentage of loan assumption fee																1.00%
Percentage of ownership after transaction													3.60%
Ginkgo \| Maximum \| Fannie Mae
Agreements and transactions with related parties
Servicing revenue													$ 100	$ 100

Segment Information - Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Information
Interest income	$ 80,509	$ 67,500	$ 233,957	$ 178,408
Interest expense	48,064	39,548	138,213	110,819
Net interest income	32,445	27,952	95,744	67,589
Other revenue:
Gain on sales, including fee-based services, net	21,298	17,451	51,897	51,266
Mortgage servicing rights	29,911	25,216	62,852	62,787
Servicing revenue	25,916	26,082	76,685	70,301
Amortization of MSRs	(12,126)	(11,838)	(36,731)	(35,639)
Property operating income	2,237	2,651	8,187	8,525
Other income, net	(4,678)	(3,982)	(5,412)	(1,574)
Total other revenue	62,558	55,580	157,478	155,666
Other expenses:
Employee compensation and benefits	32,861	27,775	93,647	84,084
Selling and administrative	10,882	9,994	31,122	27,783
Property operating expenses	2,563	2,437	7,649	8,089
Depreciation and amortization	1,841	1,848	5,663	5,539
Impairment loss on real estate owned			1,000	2,000
Provision for loss sharing (net of recoveries)	735	2,019	1,557	2,840
Provision for loan losses (net of recoveries)		836		(967)
Litigation settlement gain		(10,170)		(10,170)
Total other expenses	48,882	34,739	140,638	119,198
Income before extinguishment of debt, income (loss) from equity	46,121	48,793	112,584	104,057
Loss on extinguishment of debt		(4,960)	(128)	(4,960)
Income from equity affiliates	3,718	(1,028)	9,133	1,104
Provision for income taxes	(6,623)	(5,381)	(10,963)	(1,096)
Net income	43,216	37,424	110,626	99,105
Preferred stock dividends	1,888	1,888	5,665	5,665
Net income attributable to noncontrolling interest	7,363	7,799	19,429	22,347
Net income attributable to common stockholders	33,965	27,737	85,532	71,093
Operating segments \| Structured Business
Segment Information
Interest income	73,829	61,232	215,782	162,645
Interest expense	43,209	35,508	126,182	100,324
Net interest income	30,620	25,724	89,600	62,321
Other revenue:
Property operating income	2,237	2,651	8,187	8,525
Other income, net	17	406	646	757
Total other revenue	2,254	3,057	8,833	9,282
Other expenses:
Employee compensation and benefits	7,769	6,683	23,048	21,019
Selling and administrative	5,352	4,465	15,101	11,500
Property operating expenses	2,563	2,437	7,649	8,089
Depreciation and amortization	503	447	1,524	1,338
Impairment loss on real estate owned			1,000	2,000
Provision for loan losses (net of recoveries)		836		(967)
Litigation settlement gain		(10,170)		(10,170)
Total other expenses	16,187	4,698	48,322	32,809
Income before extinguishment of debt, income (loss) from equity	16,687	24,083	50,111	38,794
Loss on extinguishment of debt		(4,960)	(128)	(4,960)
Income from equity affiliates	3,718	(1,028)	9,133	1,104
Provision for income taxes				500
Net income	20,405	18,095	59,116	35,438
Preferred stock dividends	1,888	1,888	5,665	5,665
Net income attributable to common stockholders	18,517	16,207	53,451	29,773
Operating segments \| Agency Business
Segment Information
Interest income	6,680	6,268	18,175	15,763
Interest expense	4,855	4,040	12,031	10,166
Net interest income	1,825	2,228	6,144	5,597
Other revenue:
Gain on sales, including fee-based services, net	21,298	17,451	51,897	51,266
Mortgage servicing rights	29,911	25,216	62,852	62,787
Servicing revenue	25,916	26,082	76,685	70,301
Amortization of MSRs	(12,126)	(11,838)	(36,731)	(35,639)
Other income, net	(4,695)	(4,388)	(6,058)	(2,331)
Total other revenue	60,304	52,523	148,645	146,384
Other expenses:
Employee compensation and benefits	25,092	21,092	70,599	63,065
Selling and administrative	5,530	5,529	16,021	16,283
Depreciation and amortization	1,338	1,401	4,139	4,201
Provision for loss sharing (net of recoveries)	735	2,019	1,557	2,840
Total other expenses	32,695	30,041	92,316	86,389
Income before extinguishment of debt, income (loss) from equity	29,434	24,710	62,473	65,592
Provision for income taxes	(6,623)	(5,381)	(10,963)	(1,596)
Net income	22,811	19,329	51,510	63,996
Net income attributable to common stockholders	22,811	19,329	51,510	63,996
Other / Eliminations
Segment Information
Interest expense				329
Net interest income				(329)
Other expenses:
Income before extinguishment of debt, income (loss) from equity				(329)
Net income				(329)
Net income attributable to noncontrolling interest	7,363	7,799	19,429	22,347
Net income attributable to common stockholders	$ (7,363)	$ (7,799)	$ (19,429)	$ (22,676)

Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 135,285	$ 160,063	$ 92,598	$ 104,374
Restricted cash	190,046	180,606	$ 202,736	$ 139,398
Loans and investments, net	3,874,069	3,200,145
Loans held-for-sale, net	537,826	481,664
Capitalized mortgage servicing rights, net	283,688	273,770
Securities held-to-maturity, net	95,181	76,363
Investments in equity affiliates	36,698	21,580
Goodwill and other intangible assets	112,026	116,165
Other assets	130,815	101,819
Total assets	5,395,634	4,612,175
Liabilities:
Debt obligations	3,938,253	3,314,869
Allowance for loss-sharing obligations	35,525	34,298
Other liabilities	223,460	197,442
Total liabilities	4,197,238	3,546,609
Structured Business \| Operating segments
Assets:
Cash and cash equivalents	102,734	89,457
Restricted cash	188,572	180,606
Loans and investments, net	3,874,069	3,200,145
Securities held-to-maturity, net	20,000
Investments in equity affiliates	36,698	21,580
Goodwill and other intangible assets	12,500	12,500
Other assets	103,541	81,494
Total assets	4,338,114	3,585,782
Liabilities:
Debt obligations	3,477,005	2,842,688
Other liabilities	166,780	159,413
Total liabilities	3,643,785	3,002,101
Agency Business \| Operating segments
Assets:
Cash and cash equivalents	32,551	70,606
Restricted cash	1,474
Loans held-for-sale, net	537,826	481,664
Capitalized mortgage servicing rights, net	283,688	273,770
Securities held-to-maturity, net	75,181	76,363
Goodwill and other intangible assets	99,526	103,665
Other assets	27,274	20,325
Total assets	1,057,520	1,026,393
Liabilities:
Debt obligations	461,248	472,181
Allowance for loss-sharing obligations	35,525	34,298
Other liabilities	56,680	38,029
Total liabilities	$ 553,453	$ 544,508

Segment Information - Origination Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Information
Origination Volumes	$ 1,477,436	$ 1,376,376	$ 3,626,528	$ 3,499,569
Loan Sales Data:
Sales margin (fee-based services as a % of loan sales)	1.43%	1.47%	1.48%	1.57%
MSR rate (MSR income as a % of loan commitments)	2.02%	1.83%	1.73%	1.79%
Structured Business
Segment Information
New loan originations	$ 541,474	$ 287,480	$ 1,971,872	$ 1,208,550
Loan payoffs / paydowns	456,847	255,575	1,239,449	684,216
Agency Business
Segment Information
Origination Volumes	1,415,816	1,411,064	3,550,015	3,500,182
Loan Sales Data:
Loan Sales	1,488,430	1,190,004	3,513,243	3,270,723
Fannie Mae \| Agency Business
Segment Information
Origination Volumes	1,097,095	995,662	2,581,958	2,264,870
Loan Sales Data:
Loan Sales	1,141,780	867,601	2,556,781	2,175,846
Freddie Mac \| Agency Business
Segment Information
Origination Volumes	203,981	317,516	631,324	1,060,456
Loan Sales Data:
Loan Sales	262,735	286,423	663,053	974,551
FHA \| Agency Business
Segment Information
Origination Volumes		77,236	44,668	137,973
Loan Sales Data:
Loan Sales	49,915	15,330	82,085	83,443
CMBS/Conduit \| Agency Business
Segment Information
Origination Volumes	34,000	20,650	211,325	36,883
Loan Sales Data:
Loan Sales	34,000	$ 20,650	211,324	$ 36,883
Private Label \| Agency Business
Segment Information
Origination Volumes	$ 80,740		$ 80,740

Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Segment Information
UPB of Servicing Portfolio	$ 19,965,882	$ 18,601,641
Wtd. Avg. Servicing Fee Rate (basis points)	0.435%	0.452%
Wtd. Avg. Life of Servicing Portfolio (in years)	9 years 2 months 12 days	8 years 7 months 6 days
Fannie Mae
Segment Information
UPB of Servicing Portfolio	$ 14,616,816	$ 13,562,667
Wtd. Avg. Servicing Fee Rate (basis points)	0.492%	0.513%
Wtd. Avg. Life of Servicing Portfolio (in years)	8 years 1 month 6 days	7 years 4 months 24 days
Freddie Mac
Segment Information
UPB of Servicing Portfolio	$ 4,664,750	$ 4,394,287
Wtd. Avg. Servicing Fee Rate (basis points)	0.30%	0.308%
Wtd. Avg. Life of Servicing Portfolio (in years)	11 years	10 years 9 months 18 days
FHA
Segment Information
UPB of Servicing Portfolio	$ 684,316	$ 644,687
Wtd. Avg. Servicing Fee Rate (basis points)	0.154%	0.155%
Wtd. Avg. Life of Servicing Portfolio (in years)	19 years 2 months 12 days	19 years 7 months 6 days

Description of Business (Details)	9 Months Ended
Description of Business (Details)	Sep. 30, 2019 segment
Description of Business
Number of business segments	2

Loans and Investments, Interest Reserves (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) loan	Dec. 31, 2018 USD ($) loan
Loans and Investments
Interest reserve held	$ 40.4	$ 48.9
Number of loans covered under interest reserve \| loan	126	110
Aggregate UPB covered under interest reserve	$ 2,500.0	$ 2,220.0

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	9 Months Ended		12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
8.25% Series A preferred stock
Preferred stock, dividend rate (as a percent)	8.25%	8.25%	8.25%
7.75% Series B preferred stock
Preferred stock, dividend rate (as a percent)	7.75%	7.75%	7.75%
8.50% Series C preferred stock
Preferred stock, dividend rate (as a percent)	8.50%	8.50%	8.50%