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INTEREST INCOME AND INTEREST EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2024
Banking and Thrift, Interest [Abstract]  
Summary of Interest Income Recognition Methodology for Residential Investment Securities
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.
Components of Company's Interest Income and Interest Expense
The following table presents the components of the Company’s interest income and interest expense for the years ended December 31, 2024, 2023 and 2022.
 For the Years Ended December 31,
 202420232022
Interest income(dollars in thousands)
Agency securities (1)
$3,205,862 $2,740,320 $2,144,696 
Residential credit securities203,758 225,266 140,220 
Residential mortgage loans (1)
1,282,941 703,838 410,229 
Commercial investment portfolio (1) (2)
9,857 28,385 81,855 
Reverse repurchase agreements137,616 33,772 1,887 
Total interest income$4,840,034 $3,731,581 $2,778,887 
Interest expense   
Repurchase agreements$3,579,837 $3,337,527 $1,026,201 
Debt issued by securitization vehicles856,418 443,584 225,216 
Participations issued67,748 50,357 39,366 
U.S. Treasury securities sold, not yet purchased88,235 11,497 — 
Other— — 18,952 
Total interest expense4,592,238 3,842,965 1,309,735 
Net interest income$247,796 $(111,384)$1,469,152 
(1) Includes assets transferred or pledged to securitization vehicles.
(2) Includes corporate debt.