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INTEREST INCOME AND INTEREST EXPENSE
 6 Months Ended
Jun. 30, 2024
Banking and Thrift, Interest [Abstract]  
INTEREST INCOME AND INTEREST EXPENSE
14.  INTEREST INCOME AND INTEREST EXPENSE
Refer to the “Significant Accounting Policies” Note for details surrounding the Company’s accounting policy related to net interest income on securities and loans.
The following table summarizes the interest income recognition methodology for Residential Securities:
 Interest Income Methodology
Agency 
Fixed-rate pass-through (1)
Effective yield (3)
Adjustable-rate pass-through (1)
Effective yield (3)
Multifamily (1)
Contractual Cash Flows
CMO (1)
Effective yield (3)
Reverse mortgages (2)
Prospective
Interest-only (2)
Prospective
Residential credit 
CRT (2)
Prospective
Alt-A (2)
Prospective
Prime (2)
Prospective
Subprime (2)
Prospective
NPL/RPL (2)
Prospective
Prime jumbo (2)
Prospective
(1) Changes in fair value are recognized in Other comprehensive income (loss) in the accompanying Consolidated Statements of Comprehensive Income (Loss) for securities purchased prior to July 1, 2022. Effective July 1, 2022, changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss) for newly purchased securities.
(2) Changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss).
(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.

The following table presents the components of the Company’s interest income and interest expense for the three and six months ended June 30, 2024 and 2023.
 For the Three Months Ended June 30,
For the Six Months Ended June 30,
 2024202320242023
Interest income(dollars in thousands)
Agency securities$790,779 $686,912 $1,542,295 $1,290,014 
Residential credit securities50,895 56,477 106,891 110,222 
Residential mortgage loans (1)
301,820 162,202 553,836 309,433 
Commercial investment portfolio (1) (2)
2,441 8,310 5,995 18,197 
Reverse repurchase agreements31,390 7,593 62,796 11,878 
Total interest income$1,177,325 $921,494 $2,271,813 $1,739,744 
Interest expense  
Repurchase agreements$881,926 $841,257 $1,779,524 $1,539,999 
Debt issued by securitization vehicles200,812 101,819 361,829 190,753 
Participations issued19,756 10,381 40,007 21,492 
U.S. Treasury securities sold, not yet purchased21,273 — 43,346 — 
Total interest expense1,123,767 953,457 2,224,706 1,752,244 
Net interest income$53,558 $(31,963)$47,107 $(12,500)
(1) Includes assets transferred or pledged to securitization vehicles.
(2) Includes commercial real estate debt and preferred equity.