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INTEREST INCOME AND INTEREST EXPENSE
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023.
 For the Three Months Ended
For the Nine Months Ended
 September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Interest income(dollars in thousands)
Agency securities$789,403 $753,007 $2,331,698 $2,043,021 
Residential credit securities49,863 57,229 156,754 167,451 
Residential mortgage loans (1)
346,031 181,965 899,867 491,398 
Commercial investment portfolio (1)
2,240 5,812 8,235 24,009 
Reverse repurchase agreements41,804 3,472 104,600 15,350 
Total interest income$1,229,341 $1,001,485 $3,501,154 $2,741,229 
Interest expense  
Repurchase agreements$942,780 $917,997 $2,722,304 $2,457,996 
Debt issued by securitization vehicles234,299 116,962 596,128 307,715 
Participations issued17,834 11,860 57,841 33,352 
U.S. Treasury securities sold, not yet purchased21,027 — 64,373 — 
Total interest expense1,215,940 1,046,819 3,440,646 2,799,063 
Net interest income$13,401 $(45,334)$60,508 $(57,834)
(1) Includes assets transferred or pledged to securitization vehicles.