INTEREST INCOME AND INTEREST EXPENSE

12 Months Ended

Dec. 31, 2017

Banking and Thrift, Interest [Abstract]

INTEREST INCOME AND INTEREST EXPENSE

16.INTEREST INCOME AND INTEREST EXPENSE

The following presents the components of the Company’s interest income and interest expense for the years ended December 31, 2017, 2016 and 2015.

	For the Years Ended December 31,
	2017		2016		2015
Interest income:	(dollars in thousands)
Residential Investment Securities	$	2,170,041	$	1,944,457	$	1,963,629
Residential mortgage loans	30,540		4,147		—
Commercial investment portfolio (1)	273,884		252,436		203,804
Reverse repurchase agreements	18,661		9,911		3,264
Total interest income	2,493,126		2,210,951		2,170,697
Interest expense:
Repurchase agreements	891,819		585,826		420,325
Convertible Senior Notes	—		—		29,740
Securitized debt of consolidated VIEs	60,304		44,392		20,065
Participation sold	195		627		639
Other	56,036		26,907		827
Total interest expense	1,008,354		657,752		471,596
Net interest income	$	1,484,772	$	1,553,199	$	1,699,101

⁽¹⁾ Includes commercial real estate debt, preferred equity and corporate debt.