10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-32136

Arbor Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	20-0057959
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
333 Earle Ovington Boulevard, Suite 900 Uniondale, NY (Address of principal executive offices)	11553 (Zip Code)

(Registrant’s telephone number, including area code): (516) 506-4200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ABR	New York Stock Exchange
Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share	ABR-PD	New York Stock Exchange
Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share	ABR-PE	New York Stock Exchange
Preferred Stock, 6.25% Series F Fixed-to- Floating Rate Cumulative Redeemable, par value $0.01 per share	ABR-PF	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☑	Accelerated filer  ☐	Non-accelerated filer  ☐
Smaller reporting company  ☐	Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Issuer has 170,302,444 shares of common stock outstanding at July 22, 2022.

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	2
Consolidated Balance Sheets	2
Consolidated Statements of Income	3
Consolidated Statements of Changes in Equity	4
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
Item 3. Quantitative and Qualitative Disclosures about Market Risk	63
Item 4. Controls and Procedures	64
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	64
Item 1A. Risk Factors	64
Item 6. Exhibits	65
Signatures	66

Forward-Looking Statements

The information contained in this quarterly report on Form 10-Q is not a complete description of our business or the risks associated with an investment in Arbor Realty Trust, Inc. We urge you to carefully review and consider the various disclosures in this report, as well as information in our annual report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”) filed with the SEC on February 18, 2022 and in our other reports and filings with the SEC.

This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs. We use words such as “anticipate,” “expect,” “believe,” “intend,” “should,” “could,” “will,” “may” and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in economic conditions generally, and the real estate market specifically, in particular, due to the uncertainties created by the novel coronavirus (“COVID-19”) pandemic; the potential impact of the COVID-19 pandemic on our business, results of operations and financial condition; adverse changes in our status with government-sponsored enterprises affecting our ability to originate loans through such programs; changes in interest rates; the quality and size of the investment pipeline and the rate at which we can invest our cash; impairments in the value of the collateral underlying our loans and investments; changes in federal and state laws and regulations, including changes in tax laws; the availability and cost of capital for future investments; and competition. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this report. The factors noted above could cause our actual results to differ significantly from those contained in any forward-looking statement.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this report to conform these statements to actual results.

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands, except share and per share data)

	June 30,		December 31,
	2022		2021
	(Unaudited)
Assets:
Cash and cash equivalents	$	341,991	$	404,580
Restricted cash		787,952		486,690
Loans and investments, net (allowance for credit losses of $121,331 and $113,241)		14,832,302		11,981,048
Loans held-for-sale, net		518,935		1,093,609
Capitalized mortgage servicing rights, net		411,534		422,734
Securities held-to-maturity, net (allowance for credit losses of $2,022 and $1,753)		159,686		140,484
Investments in equity affiliates		90,855		89,676
Due from related party		53,037		84,318
Goodwill and other intangible assets		98,414		100,760
Other assets		284,884		269,946
Total assets	$	17,579,590	$	15,073,845
Liabilities and Equity:
Credit and repurchase facilities	$	4,549,460	$	4,481,579
Collateralized loan obligations		7,968,495		5,892,810
Senior unsecured notes		1,282,498		1,280,545
Convertible senior unsecured notes, net		263,126		259,385
Junior subordinated notes to subsidiary trust issuing preferred securities		142,758		142,382
Due to related party		27,014		26,570
Due to borrowers		115,990		96,641
Allowance for loss-sharing obligations		53,053		56,064
Other liabilities		264,200		287,885
Total liabilities		14,666,594		12,523,861
Commitments and contingencies (Note 13)
Equity:
Arbor Realty Trust, Inc. stockholders’ equity:
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period:		633,684		556,163
Special voting preferred shares - 16,293,589 and 16,325,095 shares
6.375% Series D - 9,200,000 shares
6.25% Series E - 5,750,000 shares
6.25% Series F - 11,342,000 and 8,050,000 shares
Common stock, $0.01 par value: 500,000,000 shares authorized - 168,454,805 and 151,362,181 shares issued and outstanding		1,685		1,514
Additional paid-in capital		2,060,837		1,797,913
Retained earnings		83,271		62,532
Total Arbor Realty Trust, Inc. stockholders’ equity		2,779,477		2,418,122
Noncontrolling interest		133,519		131,862
Total equity		2,912,996		2,549,984
Total liabilities and equity	$	17,579,590	$	15,073,845

Note: Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities, or VIEs, as we are the primary beneficiary of these VIEs. As of June 30, 2022 and December 31, 2021, assets of our consolidated VIEs totaled $9,714,376 and $7,144,806, respectively, and the liabilities of our consolidated VIEs totaled $7,986,250 and $5,902,623, respectively. See Note 14 for discussion of our VIEs.

See Notes to Consolidated Financial Statements.

2

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

($ in thousands, except share and per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Interest income	$	201,328	$	105,148	$	368,026	$	196,292
Interest expense		107,067		46,378		189,627		88,562
Net interest income		94,261		58,770		178,399		107,730
Other revenue:
Gain on sales, including fee-based services, net		16,510		40,901		18,166		69,768
Mortgage servicing rights		17,567		26,299		32,879		63,235
Servicing revenue, net		20,714		15,315		41,769		30,850
Property operating income		290		—		586		—
Gain (loss) on derivative instruments, net		8,606		(2,607)		25,992		(5,828)
Other income, net		(13,249)		1,263		(10,048)		1,943
Total other revenue		50,438		81,171		109,344		159,968
Other expenses:
Employee compensation and benefits		38,900		43,700		80,925		86,674
Selling and administrative		13,188		11,133		27,735		21,947
Property operating expenses		542		129		1,077		272
Depreciation and amortization		2,031		1,788		4,014		3,543
Provision for loss sharing (net of recoveries)		(1,949)		549		(2,611)		2,201
Provision for credit losses (net of recoveries)		5,067		(7,815)		7,426		(8,890)
Total other expenses		57,779		49,484		118,566		105,747
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes		86,920		90,457		169,177		161,951
Loss on extinguishment of debt		—		—		(1,350)		(1,370)
Gain on sale of real estate		—		—		—		1,228
Income from equity affiliates		6,547		4,759		13,759		27,010
Provision for income taxes		(5,352)		(10,959)		(13,540)		(23,451)
Net income		88,115		84,257		168,046		165,368
Preferred stock dividends		11,214		6,414		20,270		8,303
Net income attributable to noncontrolling interest		6,992		8,717		13,808		18,459
Net income attributable to common stockholders	$	69,909	$	69,126	$	133,968	$	138,606
Basic earnings per common share	$	0.43	$	0.51	$	0.85	$	1.06
Diluted earnings per common share	$	0.41	$	0.51	$	0.82	$	1.06
Weighted average shares outstanding:
Basic		163,044,217		135,262,197		158,258,813		130,276,499
Diluted		195,013,810		153,616,591		190,357,030		148,818,030
Dividends declared per common share	$	0.38	$	0.34	$	0.75	$	0.67

See Notes to Consolidated Financial Statements.

3

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)

($ in thousands, except shares)

Three Months Ended June 30, 2022
											Total Arbor
	Preferred	Preferred		Common	Common		Additional				Realty Trust, Inc.
	Stock	Stock		Stock	Stock		Paid-in		Retained		Stockholders’		Noncontrolling
	Shares	Value		Shares	Par Value		Capital		Earnings		Equity		Interest		Total Equity
Balance – April 1, 2022	42,617,095	$	633,734	160,198,115	$	1,602	$	1,927,621	$	75,828	$	2,638,785	$	133,263	$	2,772,048
Issuance of common stock	—		—	8,229,350		82		130,361		—		130,443		—		130,443
Issuance of Series F preferred stock	—		(49)	—		—		(130)		—		(179)		—		(179)
Stock-based compensation, net	—		—	27,340		1		2,985		—		2,986		—		2,986
Distributions - common stock	—		—	—		—		—		(62,463)		(62,463)		—		(62,463)
Distributions - preferred stock	—		—	—		—		—		(11,217)		(11,217)		—		(11,217)
Distributions - noncontrolling interest	—		—	—		—		—		—		—		(6,191)		(6,191)
Redemption of operating partnership units	(31,506)		(1)	—		—		—		—		(1)		(545)		(546)
Net income	—		—	—		—		—		81,123		81,123		6,992		88,115
Balance – June 30, 2022	42,585,589	$	633,684	168,454,805	$	1,685	$	2,060,837	$	83,271	$	2,779,477	$	133,519	$	2,912,996

Six Months Ended June 30, 2022
Balance - January 1, 2022	39,325,095	$	556,163	151,362,181	$	1,514	$	1,797,913	$	62,532	$	2,418,122	$	131,862	$	2,549,984
Cummulative-effect adjustment (Note 2)	—		—	—		—		(8,684)		5,612		(3,072)		625		(2,447)
Balance - January 1, 2022 (as adjusted for the adoption of ASU 2020-06)	39,325,095		556,163	151,362,181		1,514		1,789,229		68,144		2,415,050		132,487		2,547,537
Issuance of common stock	—		—	16,455,100		164		268,079		—		268,243		—		268,243
Issuance of Series F preferred stock	3,292,000		77,522	—		—		(130)		—		77,392		—		77,392
Stock-based compensation, net	—		—	637,524		7		3,659		—		3,666		—		3,666
Distributions - common stock	—		—	—		—		—		(118,838)		(118,838)		—		(118,838)
Distributions - preferred stock	—		—	—		—		—		(20,273)		(20,273)		—		(20,273)
Distributions - noncontrolling interest	—		—	—		—		—		—		—		(12,231)		(12,231)
Redemption of operating partnership units	(31,506)		(1)	—		—		—		—		(1)		(545)		(546)
Net income	—		—	—		—		—		154,238		154,238		13,808		168,046
Balance – June 30, 2022	42,585,589	$	633,684	168,454,805	$	1,685	$	2,060,837	$	83,271	$	2,779,477	$	133,519	$	2,912,996

See Notes to Consolidated Financial Statements.

4

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Continued)

($ in thousands, except shares)

Three Months Ended June 30, 2021
											Total Arbor
	Preferred	Preferred		Common	Common		Additional				Realty Trust, Inc.
	Stock	Stock		Stock	Stock		Paid-in		Accumulated		Stockholders’		Noncontrolling
	Shares	Value		Shares	Par Value		Capital		Deficit		Equity		Interest		Total Equity
Balance - April 1, 2021	21,272,133	$	89,472	133,690,060	$	1,337	$	1,473,120	$	(35,498)	$	1,528,431	$	142,261	$	1,670,692
Issuance of common stock	—		—	9,282,479		93		169,488		—		169,581		—		169,581
Repurchase of common stock	—		—	(1,399,999)		(14)		(23,446)		—		(23,460)		—		(23,460)
Issuance of Series D preferred stock	9,200,000		222,463	—		—		—		—		222,463		—		222,463
Redemption of preferred stock	(3,711,500)		(89,296)	—		—		—		—		(89,296)		—		(89,296)
Stock-based compensation, net	—		—	166,069		1		1,736		—		1,737		—		1,737
Distributions - common stock	—		—	—		—		—		(45,710)		(45,710)		—		(45,710)
Distributions - preferred stock	—		—	—		—		—		(6,416)		(6,416)		—		(6,416)
Distributions - noncontrolling interest	—		—	—		—		—		—		—		(5,971)		(5,971)
Redemption of operating partnership units	(1,208,400)		(12)	—		—		—		—		(12)		(21,098)		(21,110)
Net income	—		—	—		—		—		75,540		75,540		8,717		84,257
Balance – June 30, 2021	25,552,233	$	222,627	141,738,609	$	1,417	$	1,620,898	$	(12,084)	$	1,832,858	$	123,909	$	1,956,767

Six Months Ended June 30, 2021
Balance – January 1, 2021	21,272,133	$	89,472	123,181,173	$	1,232	$	1,317,109	$	(63,442)	$	1,344,371	$	138,314	$	1,482,685
Issuance of common stock	—		—	19,422,879		194		327,820		—		328,014		—		328,014
Repurchase of common stock	—		—	(1,399,999)		(14)		(23,446)		—		(23,460)		—		(23,460)
Issuance of Series D preferred stock	9,200,000		222,463	—		—		—		—		222,463		—		222,463
Redemption of preferred stock	(3,711,500)		(89,296)	—		—		—		—		(89,296)		—		(89,296)
Stock-based compensation, net	—		—	534,556		5		(585)		—		(580)		—		(580)
Distributions - common stock	—		—	—		—		—		(87,240)		(87,240)		—		(87,240)
Distributions - preferred stock	—		—	—		—		—		(8,311)		(8,311)		—		(8,311)
Distributions - noncontrolling interest	—		—	—		—		—		—		—		(11,766)		(11,766)
Redemption of operating partnership units	(1,208,400)		(12)	—		—		—		—		(12)		(21,098)		(21,110)
Net income	—		—	—		—		—		146,909		146,909		18,459		165,368
Balance – June 30, 2021	25,552,233	$	222,627	141,738,609	$	1,417	$	1,620,898	$	(12,084)	$	1,832,858	$	123,909	$	1,956,767

See Notes to Consolidated Financial Statements.

5

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Six Months Ended June 30,
	2022		2021
Operating activities:
Net income	$	168,046	$	165,368
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,014		3,543
Stock-based compensation		9,241		5,375
Amortization and accretion of interest and fees, net		(6,782)		354
Amortization of capitalized mortgage servicing rights		29,750		28,871
Originations of loans held-for-sale		(2,117,624)		(2,741,453)
Proceeds from sales of loans held-for-sale, net of gain on sale		2,617,418		3,324,001
Mortgage servicing rights		(32,879)		(63,235)
Write-off of capitalized mortgage servicing rights from payoffs		25,545		9,459
Provision for loss sharing (net of recoveries)		(2,611)		2,201
Provision for credit losses (net of recoveries)		7,426		(8,890)
Net charge-offs for loss sharing obligations		(400)		(859)
Deferred tax (benefit) provision		(2,426)		4,439
Income from equity affiliates		(13,759)		(27,010)
Distributions from operations of equity affiliates		11,438		18,923
Loss on extinguishment of debt		1,350		1,370
Payoffs and paydowns of loans held-for-sale		58,327		2,322
Loss on sale of loans		9,180		—
Change in fair value of held-for-sale loans		4,380		—
Changes in operating assets and liabilities		(5,086)		2,802
Net cash provided by operating activities		764,548		727,581
Investing Activities:
Loans and investments funded, originated and purchased, net		(4,661,893)		(2,814,170)
Payoffs and paydowns of loans and investments		1,686,546		773,163
Proceeds from sale of loans and investments		102,228		110,000
Deferred fees		39,514		20,141
Contributions to equity affiliates		(15,003)		(21,074)
Distributions from equity affiliates		16,144		17,181
Purchase of securities held-to-maturity, net		(27,598)		(23,747)
Payoffs and paydowns of securities held-to-maturity		9,083		5,487
Due to borrowers and reserves		9,364		(80,986)
Net cash used in investing activities		(2,841,615)		(2,014,005)
Financing activities:
Proceeds from credit and repurchase facilities		6,120,513		6,393,023
Paydowns and payoffs of credit and repurchase facilities		(6,052,818)		(6,610,333)
Proceeds from issuance of collateralized loan obligations		2,525,624		1,329,887
Payoffs and paydowns of collateralized loan obligations		(441,000)		(356,150)
Proceeds from issuance of common stock		268,243		328,014
Proceeds from issuance of preferred stock		77,392		222,463
Proceeds from issuance of senior unsecured notes		—		175,000
Redemption of preferred stock		—		(89,296)
Redemption of operating partnership units		(546)		(21,110)
Payments of withholding taxes on net settlement of vested stock		(5,575)		(5,955)
Repurchase of common stock		—		(23,460)
Distributions to stockholders		(151,099)		(107,317)
Payment of deferred financing costs		(24,994)		(20,592)
Net cash provided by financing activities		2,315,740		1,214,174
Net increase (decrease) in cash, cash equivalents and restricted cash		238,673		(72,250)
Cash, cash equivalents and restricted cash at beginning of period		891,270		536,998
Cash, cash equivalents and restricted cash at end of period	$	1,129,943	$	464,748

See Notes to Consolidated Financial Statements.

6

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Continued)

(in thousands)

	Six Months Ended June 30,
	2022		2021
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period	$	404,580	$	339,528
Restricted cash at beginning of period		486,690		197,470
Cash, cash equivalents and restricted cash at beginning of period	$	891,270	$	536,998
Cash and cash equivalents at end of period	$	341,991	$	215,658
Restricted cash at end of period		787,952		249,090
Cash, cash equivalents and restricted cash at end of period	$	1,129,943	$	464,748
Supplemental cash flow information:
Cash used to pay interest	$	164,402	$	75,568
Cash used to pay taxes		20,733		25,739
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	$	7,010	$	1,181
Cummulative-effect adjustment (Note 2)		2,447		—
Loans transferred from loans and investment, net to loans held-for-sale		—		65,204

See Notes to Consolidated Financial Statements.

7

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 1 — Description of Business

Arbor Realty Trust, Inc. (“we,” “us,” or “our”) is a Maryland corporation formed in 2003. We are a nationwide REIT and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Loan Origination and Investment Business, or “Structured Business,” and our Agency Loan Origination and Servicing Business, or “Agency Business.”

Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental (“SFR”) and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages and preferred and direct equity. We also invest in real estate-related joint ventures and may 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 “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. We also originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans, and originate and sell finance products through conduit/commercial mortgage-backed securities (“CMBS”) programs. We pool and securitize the Private Label loans and sell certificates in the securitizations to third-party investors, while retaining the servicing rights and the highest risk bottom tranche certificate of the securitization (“APL certificates”).

Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the indirect 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. A REIT is generally not subject to federal income tax on that portion of its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS”), which are part of our TRS consolidated group (the “TRS Consolidated Group”) and are 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.

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 2021 Annual Report.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 14. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management 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. Since early 2020, there has been a global outbreak of COVID-19, which had forced many countries, including the United States, to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 has had, and may continue to have, a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19.

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive.	First quarter of 2022	We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the three and six months ended June 30, 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Recently Issued Accounting Pronouncements

Description	Effective Date	Effect on Financial Statements
In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty.	First quarter of 2023, with early adoption permitted	We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements.

Significant Accounting Policies

See Item 8 – Financial Statements and Supplementary Data in our 2021 Annual Report for a description of our significant accounting policies. Except for the adoption of ASU 2020-06 described above, there have been no significant changes to our significant accounting policies since December 31, 2021.

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
	June 30, 2022		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	14,668,418	98	%	674	5.47	%	23.6	0	%	76	%
Mezzanine loans		181,019	1	%	36	7.63	%	64.2	41	%	79	%
Preferred equity investments		148,254	1	%	9	5.48	%	34.7	58	%	87	%
Other loans (5)		36,120	<1	%	3	6.12	%	38.7	0	%	67	%
		15,033,811	100	%	722	5.49	%	24.2	1	%	76	%
Allowance for credit losses		(121,331)
Unearned revenue		(80,178)
Loans and investments, net	$	14,832,302

	December 31, 2021
Bridge loans (4)	$	11,750,710	97	%	528	4.19	%	23.8	0	%	76	%
Mezzanine loans		223,378	2	%	39	7.32	%	56.3	34	%	84	%
Preferred equity investments		155,513	1	%	11	5.57	%	38.0	58	%	87	%
Other loans (5)		29,394	<1	%	2	4.63	%	48.1	0	%	67	%
		12,158,995	100	%	580	4.26	%	24.6	1	%	76	%
Allowance for credit losses		(113,241)
Unearned revenue		(64,706)
Loans and investments, net	$	11,981,048

(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 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(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) At June 30, 2022 and December 31, 2021, bridge loans included 181 and 120, respectively, of SFR loans with a total gross loan commitment of $1.11 billion and $804.6 million, respectively, of which $653.8 million and $408.2 million, respectively, was funded.

(5) At June 30, 2022 and December 31, 2021, other loans included 3 and 2, respectively, variable rate SFR permanent loans.

Concentration of Credit Risk

We are subject to concentration risk in that, at June 30, 2022, the UPB related to 39 loans with five different borrowers represented 11% of total assets. At December 31, 2021, the UPB related to 31 loans with five different borrowers represented 11% of total assets. During both the six months ended June 30, 2022 and the year ended December 31, 2021, 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 17 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. 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2022 is as follows ($ in thousands):

																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2022		2021		2020		2019		2018		Prior		Total			LTV Ratio		LTV Ratio
Multifamily:
Pass	$	1,181,993	$	2,106,750	$	86,978	$	—	$	—	$	20,300	$	3,396,021
Pass/Watch		2,288,500		3,644,880		643,991		169,310		51,450		32,850		6,830,981
Special Mention		798,856		2,182,343		288,038		296,970		64,200		8,250		3,638,657
Substandard		—		7,400		20,400		40,325		—		—		68,125
Total Multifamily	$	4,269,349	$	7,941,373	$	1,039,407	$	506,605	$	115,650	$	61,400	$	13,933,784		1	%	77	%
Single-Family Rental:												Percentage of portfolio		93	%
Pass	$	5,995	$	36,882	$	13,333	$	—	$	—	$	—	$	56,210
Pass/Watch		207,171		225,418		4,979		18,664		—		—		456,232
Special Mention		1,459		68,046		107,986		—		—		—		177,491
Total Single-Family Rental	$	214,625	$	330,346	$	126,298	$	18,664	$	—	$	—	$	689,933		0	%	65	%
Land:												Percentage of portfolio		5	%
Special Mention	$	—	$	—	$	8,100	$	—	$	—	$	—	$	8,100
Substandard		—		—		—		—		—		127,928		127,928
Total Land	$	—	$	—	$	8,100	$	—	$	—	$	127,928	$	136,028		0	%	97	%
Office:												Percentage of portfolio		1	%
Special Mention	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064
Total Office	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064		0	%	87	%
Healthcare:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	—	$	—	$	14,558	$	—	$	—	$	14,558
Special Mention		—		—		—		51,069		—		—		51,069
Total Healthcare	$	—	$	—	$	—	$	65,627	$	—	$	—	$	65,627		0	%	77	%
Student Housing:												Percentage of portfolio		< 1	%
Pass	$	—	$	25,700	$	—	$	—	$	—	$	—	$	25,700
Substandard		—		—		21,500		—		—		—		21,500
Total Student Housing	$	—	$	25,700	$	21,500	$	—	$	—	$	—	$	47,200		34	%	76	%
Hotel:												Percentage of portfolio		< 1	%
Pass/Watch	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850
Total Hotel	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850		0	%	69	%
Retail:												Percentage of portfolio		< 1	%
Pass	$	—	$	—	$	—	$	4,000	$	—	$	—	$	4,000
Special Mention		—		—		—		—		18,600		—		18,600
Substandard		—		—		—		—		—		3,445		3,445
Total Retail	$	—	$	—	$	—	$	4,000	$	18,600	$	3,445	$	26,045		12	%	71	%
Other:												Percentage of portfolio		< 1	%
Special Mention	$	—	$	—	$	—	$	—	$	—	$	13,580	$	13,580
Doubtful		—		—		—		—		—		1,700		1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	15,280	$	15,280		7	%	51	%
												Percentage of portfolio		< 1	%
Grand Total	$	4,483,974	$	8,297,419	$	1,230,715	$	635,746	$	177,904	$	208,053	$	15,033,811		1	%	76	%

Geographic Concentration Risk

As of June 30, 2022, underlying properties in Texas and Florida represented 20% and 13%, respectively, of the outstanding balance of our loan and investment portfolio. As of December 31, 2021, underlying properties in Texas and Florida represented 19% and 12%, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Allowance for Credit Losses

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

	Three Months Ended June 30, 2022
	Land		Multifamily		Office		Retail		Student Housing		Hotel		Healthcare		Other		Total
Allowance for credit losses:
Beginning balance	$	77,940	$	22,084	$	8,085	$	5,819	$	324	$	4	$	5	$	2,121	$	116,382
Provision for credit losses (net of recoveries)		(22)		5,874		(1,054)		—		(163)		12		(2)		304		4,949
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Three Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,096	$	30,029	$	8,051	$	13,848	$	3,498	$	7,754	$	3,872	$	2,152	$	147,300
Provision for credit losses (net of recoveries)		(39)		131		(229)		(29)		(1,133)		(7,529)		(6)		(19)		(8,853)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

	Six Months Ended June 30, 2022
Allowance for credit losses:
Beginning balance	$	77,970	$	18,707	$	8,073	$	5,819	$	636	$	8	$	8	$	2,020	$	113,241
Provision for credit losses (net of recoveries)		(52)		9,251		(1,042)		—		(475)		8		(5)		405		8,090
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Six Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	7,759	$	3,880	$	2,287	$	148,329
Provision for credit losses (net of recoveries)		(93)		(6,308)		5,976		(42)		(1,713)		(7,534)		(14)		(154)		(9,882)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

During the three and six months ended June 30, 2022, we recorded a $4.9 million and a $8.1 million provision for credit losses, which was net of a $1.5 million loan loss recovery for a loan that paid off during the second quarter of 2022. The increase in the provision for credit losses during the three and six months ended June 30, 2022 was primarily attributable to an increase in our loans and investments balance as a result of portfolio growth and the impact of rising interest rates and economic forecasts. Our estimate of allowance for credit losses on our structured loans and investments, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including an increase in interest rates, higher unemployment forecasts, and rising inflation, partially offset by increasing property values and other market factors, including continued optimism in the COVID-19 pandemic.

The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our current expected credit loss (“CECL”) allowance for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. As of June 30, 2022 and December 31, 2021, we had outstanding unfunded commitments of $1.22 billion and $975.2 million, respectively, that we are obligated to fund as borrowers meet certain requirements.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

As of June 30, 2022 and December 31, 2021, accrued interest receivable related to our loans totaling $76.8 million and $58.3 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands):

	June 30, 2022
							Wtd. Avg. First		Wtd. Avg. Last
			Carrying		Allowance for		Dollar LTV		Dollar LTV
Asset Class	UPB (1)		Value		Credit Losses		Ratio		Ratio
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,563		5,817	14	%	79	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	157,960	$	147,131	$	85,386	3	%	96	%

	December 31, 2021
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,291		5,817	14	%	77	%
Office		1,980		1,980		1,500	0	%	51	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	159,940	$	148,839	$	86,886	3	%	95	%

(1) Represents the UPB of seven and eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2022 and December 31, 2021, respectively.

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 credit loss as of June 30, 2022 and December 31, 2021.

At June 30, 2022, four loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $5.1 million, were classified as non-performing and, at December 31, 2021, three loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $2.6 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):

	June 30, 2022						December 31, 2021
			Less Than		Greater Than				Less Than		Greater Than
			90 Days		90 Days				90 Days		90 Days
	UPB		Past Due		Past Due		UPB		Past Due		Past Due
Student Housing	$	21,500	$	—	$	21,500	$	21,500	$	—	$	21,500
Retail		3,445		—		3,445		920		—		920
Commercial		1,700		—		1,700		1,700		—		1,700
Total	$	26,645	$	—	$	26,645	$	24,120	$	—	$	24,120

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In addition, we have six loans with a carrying value totaling $121.4 million at June 30, 2022, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.1 million entitle us to a weighted average accrual rate of interest of 7.91%. 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 June 30, 2022 and December 31, 2021, we had a cumulative allowance for credit losses of $71.4 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.

At both June 30, 2022 and December 31, 2021, we had no loans contractually past due 90 days or more that are still accruing interest. During both the three and six months ended June 30, 2022 and 2021, there was no interest income recognized on nonaccrual loans.

During the second quarter of 2022, we sold a bridge loan and mezzanine loans totaling $110.5 million, that were collateralized by a land development project, at a discount for $102.2 million. In connection with this transaction, we released $66.3 million of capital to be used for future investments and recorded a $9.2 million loss (including fees and expenses), which is included in other income, net on the consolidated statements of income. Additionally, we have the potential to recover up to $2.8 million depending on the future performance of the loan.

In July 2022, we sold four bridge loans with an aggregate UPB of $296.9 million at par less shared loan origination fees and selling costs. During the second quarter of 2022, we recorded a $2.0 million unrealized impairment loss associated with these loans which was included in other income, net on the consolidated statements of income.

In 2020, we entered into a loan modification agreement on a $26.5 million bridge loan with an interest rate of LIBOR plus 6.00% with a 2.375% LIBOR floor and a $6.1 million mezzanine loan with a fixed rate of 12% collateralized by a retail property to: (1) reduce the interest rate on both loans to the greater of: (i) LIBOR plus 5.50% and (ii) 6.50%, and (2) to extend the maturity three years to December 2024. A portion of the foregoing interest equal to 2.00% will be deferred to payoff and will be waived if the loan is paid off by December 31, 2022. The loan modification agreement also included a $6.0 million required principal paydown, which occurred at the closing of the modification transaction, and an $8.0 million principal reduction once the borrower deposited an additional reserve of $4.6 million, which took place in 2021 and was charged-off against the previously recorded allowance for credit losses.

In 2019, we purchased $50.0 million of a $110.0 million bridge loan, which was collateralized by a hotel property and scheduled to mature in December 2022. In 2020, we recorded a $7.5 million allowance for credit losses due to a reduction in the appraised value of the property. In 2020, we purchased the remaining $60.0 million bridge loan at a discount for $39.9 million, which we determined had experienced a more than insignificant deterioration in credit quality since origination and, therefore, deemed to be a purchased loan with credit deterioration. The $20.1 million discount was classified as a noncredit discount and no portion of the discount was allocated to allowance for credit losses at the date of purchase since the appraised value of the property was greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid off by March 2, 2021. In 2021, we entered into a second forbearance agreement that temporarily eliminated the pay rate, extended the principal reduction payoff deadline to June 30, 2021 and increased the interest rate to an unaccrued default rate of 9.50%, which was deferred until payoff. In June 2021, we received $95.0 million for full satisfaction of these loans, reversed the $7.5 million allowance for credit losses and recorded interest income of $3.5 million.

These two loan modifications were deemed troubled debt restructurings. There were no other loan modifications, refinancing’s and/or extensions during the six months ended June 30, 2022 and 2021 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 June 30, 2022 and December 31, 2021, we had total interest reserves of $112.7 million and $87.4 million, respectively, on 424 loans and 328 loans, respectively, with an aggregate UPB of $7.36 billion and $5.75 billion, respectively.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 4 — Loans Held-for-Sale, Net

Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our Private Label loans are generally expected to be sold and securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands):

	June 30, 2022		December 31, 2021
Fannie Mae	$	272,405	$	392,876
Private Label		106,002		507,918
Freddie Mac		97,767		112,561
SFR - Fixed Rate		35,109		9,352
FHA		7,835		54,532
		519,118		1,077,239
Fair value of future MSR		7,431		19,318
Unrealized impairment loss		(4,380)		—
Unearned discount		(3,234)		(2,948)
Loans held-for-sale, net	$	518,935	$	1,093,609

During the three and six months ended June 30, 2022, we sold $1.03 billion and $2.62 billion of loans held-for-sale, respectively, and $1.48 billion and $3.32 billion during the three and six months ended June 30, 2021, respectively. Included in the total loans sold during 2022 and 2021 were Private Label loans totaling $489.3 million and $449.9 million, respectively, which were sold to unconsolidated affiliates of ours who securitized the loans. We retained the most subordinate class of certificates in the 2022 and 2021 securitizations totaling $43.4 million and $38.2 million, respectively, in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans.

During the three months ended June 30, 2022, we determined that the fair value of certain loans held-for-sale were below their carrying values and, based on the fair value analysis performed, we recorded an unrealized impairment loss of $4.1 million. The unrealized impairment loss was included in other income, net on the consolidated statements of income.

At June 30, 2022 and December 31, 2021, 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% - 13% (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 8.9 years and 8.5 years at June 30, 2022 and December 31, 2021, respectively.

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

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	398,061	$	23,975	$	422,036	$	395,573	$	27,161	$	422,734
Additions		17,123		—		17,123		44,095		—		44,095
Amortization		(13,066)		(1,713)		(14,779)		(25,993)		(3,757)		(29,750)
Write-downs and payoffs		(10,721)		(2,125)		(12,846)		(22,278)		(3,267)		(25,545)
Ending balance	$	391,397	$	20,137	$	411,534	$	391,397	$	20,137	$	411,534

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
Beginning balance	$	367,428	$	39,552	$	406,980	$	336,466	$	43,508	$	379,974
Additions		31,971		—		31,971		77,009		—		77,009
Amortization		(11,796)		(2,871)		(14,667)		(22,875)		(5,996)		(28,871)
Write-downs and payoffs		(4,540)		(1,091)		(5,631)		(7,537)		(1,922)		(9,459)
Ending balance	$	383,063	$	35,590	$	418,653	$	383,063	$	35,590	$	418,653

We collected prepayment fees totaling $15.2 million and $31.4 million during the three and six months ended June 30, 2022, respectively, and $4.2 million and $6.9 million during the three and six months ended June 30, 2021, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. As of June 30, 2022 and December 31, 2021, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of June 30, 2022 is as follows (in thousands):

Year	Amortization
2022 (six months ending 12/31/2022)	$	29,451
2023		57,065
2024		55,210
2025		52,744
2026		49,089
2027		43,518
Thereafter		124,457
Total	$	411,534

Based on scheduled maturities, actual amortization may vary from these estimates.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 6 — Mortgage Servicing

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

June 30, 2022
Product Concentrations					Geographic Concentrations
						UPB
Product	UPB (1)		% of Total		State	% of Total
Fannie Mae	$	18,600,196	69	%	Texas	12	%
Freddie Mac		4,805,068	18	%	New York	12	%
Private Label		2,061,813	8	%	California	8	%
FHA		1,076,237	4	%	North Carolina	8	%
SFR - Fixed Rate		226,568	1	%	Georgia	6	%
Total	$	26,769,882	100	%	New Jersey	6	%
					Florida	5	%
					Other (2)	43	%
					Total	100	%

December 31, 2021
Fannie Mae	$	19,127,397	71	%	Texas	12	%
Freddie Mac		4,943,905	18	%	New York	11	%
Private Label		1,711,326	6	%	North Carolina	9	%
FHA		985,063	4	%	California	8	%
SFR - Fixed Rate		191,698	1	%	Georgia	6	%
Total	$	26,959,389	100	%	Florida	6	%
					New Jersey	6	%
					Other (2)	42	%
					Total	100	%

(1) Excludes loans which we are not collecting a servicing fee.

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

At June 30, 2022 and December 31, 2021, our weighted average servicing fee was 43.6 basis points and 44.9 basis points, respectively. At June 30, 2022 and December 31, 2021, we held total escrow balances of $2.21 billion and $1.99 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $646.5 million and $682.5 million at June 30, 2022 and December 31, 2021, 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 $1.7 million and $2.6 million during the three and six months ended June 30, 2022, respectively, and $1.1 million and $2.2 million during the three and six months ended June 30, 2021, respectively, and is a component of servicing revenue, net in the consolidated statements of income.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 7 — Securities Held-to-Maturity

Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. As of June 30, 2022, we retained APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 8.0 years. The weighted average effective interest rate was 8.85% and 9.11% at June 30, 2022 and December 31, 2021, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $6.8 million is estimated to mature after one year through five years and $186.0 million is estimated to mature after five years through ten years.

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 ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. As of June 30, 2022, 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 6.2 years. The weighted average effective interest rate was 12.07% and 11.32% at June 30, 2022 and December 31, 2021, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $8.2 million is estimated to mature within one year, $21.3 million is estimated to mature after one year through five years, $0.8 million is estimated to mature after five years through ten years and $17.2 million is estimated to mature after ten years.

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

			Net Carrying		Unrealized		Estimated		Allowance for
	Face Value		Value		Gain (Loss)		Fair Value		Credit Losses
June 30, 2022
APL certificates	$	192,791	$	122,222	$	(3,308)	$	118,914	$	1,756
B Piece bonds		47,499		37,464		2,338		39,802		266
Total	$	240,290	$	159,686	$	(970)	$	158,716	$	2,022
December 31, 2021
APL certificates	$	149,368	$	92,869	$	5,007	$	97,876	$	1,422
B Piece bonds		61,360		47,615		4,420		52,035		331
Total	$	210,728	$	140,484	$	9,427	$	149,911	$	1,753

A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands):

	Three Months Ended June 30, 2022
	APL		B Piece
	Certificates		Bonds		Total
Beginning balance	$	1,812	$	231	$	2,043
Provision for credit loss expense/(reversal)		(56)		35		(21)
Ending balance	$	1,756	$	266	$	2,022

	Six Months Ended June 30, 2022
Beginning balance	$	1,422	$	331	$	1,753
Provision for credit loss expense/(reversal)		334		(65)		269
Ending balance	$	1,756	$	266	$	2,022

The allowance for credit losses on our held-to-maturity securities was estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities. The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities. As of June 30, 2022, no other-than-temporary impairment was recorded on our held-to-maturity securities.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

We recorded interest income (including the amortization of discount) related to these investments of $5.1 million and $10.3 million during the three and six months ended June 30, 2022, respectively, and $3.1 million and $6.0 million during the three and six months ended June 30, 2021, respectively.

Note 8 — Investments in Equity Affiliates

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

					UPB of Loans to
	Investments in Equity Affiliates at				Equity Affiliates at
Equity Affiliates	June 30, 2022		December 31, 2021		June 30, 2022
Arbor Residential Investor LLC	$	56,916	$	65,756	$	—
AMAC Holdings III LLC		17,243		13,772		—
Fifth Wall Ventures		11,465		5,409		—
North Vermont Avenue		2,461		2,419		—
Lightstone Value Plus REIT L.P.		1,895		1,895		—
Docsumo Pte. Ltd.		450		—		—
JT Prime		425		425		—
West Shore Café		—		—		1,688
Lexford Portfolio		—		—		—
East River Portfolio		—		—		—
Total	$	90,855	$	89,676	$	1,688

Arbor Residential Investor LLC (“ARI”). During the three and six months ended June 30, 2022, we recorded income of $1.1 million and $6.1 million, respectively, and during the three and six months ended June 30, 2021, we recorded income of $4.8 million and $27.3 million, respectively, to income from equity affiliates in our consolidated statements of income. During the three and six months ended June 30, 2022, we also received cash distributions totaling $7.5 million and $15.0 million, respectively, and during the three and six months ended June 30, 2021, we received cash distributions totaling $5.6 million and $18.7 million from this investment, respectively, which were classified as returns of capital. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% as of June 30, 2022.

AMAC Holdings III LLC (“AMAC III”). We funded an additional $4.9 million during 2022. During the three and six months ended June 30, 2022, we recorded a loss associated with this investment of $0.6 million and $1.1 million, respectively.

Fifth Wall Ventures (“Fifth Wall”). We funded an additional $6.9 million during 2022. In addition, during the three months ended June 30, 2022, we received a distribution from this investment of $0.9 million, which was classified as a return of capital.

Docsumo Pte. Ltd. (“Docsumo”). During 2022, we invested $0.5 million for a noncontrolling interest in Docsumo, a startup company that converts unstructured documents, such as bank statements and pay stubs, to accurate structured data and checks documents for fraud, such as photoshopped layers and font changes, using artificial intelligence.

Lexford Portfolio. During the three months ended June 30, 2022, we received distributions of $6.0 million from this equity investment, which was recognized as income from equity affiliates.

Equity Participation Interest. During the first quarter of 2022, we received $2.6 million from an equity participation interest on a property that was sold and which we had a preferred equity loan that previously paid-off.

See Note 17 for details of certain investments described above.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 9 — Debt Obligations

Credit and Repurchase Facilities

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

				June 30, 2022						December 31, 2021
			Note	Debt		Collateral				Debt		Collateral
	Current	Extended	Rate	Carrying		Carrying		Wtd. Avg.		Carrying		Carrying
	Maturity	Maturity	Type	Value (1)		Value		Note Rate		Value (1)		Value
Structured Business
$2.5B joint repurchase facility (2)	Mar. 2024	Mar. 2025	V	$	1,883,227	$	2,381,351	4.16	%	$	1,486,380	$	1,877,930
$1B repurchase facility (2)	Mar. 2023	N/A	V		724,010		997,641	3.78	%		675,415		937,880
$500M repurchase facility	(3)	N/A	V		—		—	—			—		—
$450M repurchase facility	Mar. 2023	Mar. 2026	V		374,675		487,156	3.64	%		397,272		511,269
$450M repurchase facility	Oct. 2023	Oct. 2024	V		280,199		367,285	3.55	%		293,700		385,337
$399M repurchase facility (2) (4)	Dec. 2022	N/A	V		362,629		487,685	3.80	%		241,450		289,956
$225M credit facility	Oct. 2023	Oct. 2024	V		56,637		87,537	4.08	%		27,826		42,270
$200M repurchase facility	Mar. 2024	Mar. 2025	V		7,011		18,153	4.11	%		—		—
$200M repurchase facility	Jan. 2024	Jan. 2025	V		179,374		225,538	3.55	%		—		—
$200M credit facility	July 2023	N/A	V		64,361		81,577	3.16	%		177,406		236,538
$97.4M loan specific credit facilities	May 2023 to Oct. 2024	N/A	V/F		97,306		137,700	4.07	%		153,727		214,300
$50M credit facility (5)	July 2022	N/A	V		29,200		36,500	3.84	%		29,194		36,500
$35M working capital facility	Apr. 2023	N/A	V		—		—	—			—		—
$25M credit facility	Oct. 2022	N/A	V		6,131		7,745	4.35			1,235		1,900
$25M credit facility	Oct. 2022	Oct. 2023	V		3,192		3,902	4.09	%		10,218		14,773
$1M master security agreement	Dec. 2022	N/A	F		321		—	4.01	%		635		—
Repurchase facility - securities (2)	N/A	N/A	V		25,634		—	4.39	%		30,849		—
Structured Business total				$	4,093,907	$	5,319,770	3.93	%	$	3,525,307	$	4,548,653
Agency Business
$750M ASAP agreement	N/A	N/A	V	$	108,220	$	108,877	2.23	%	$	182,130	$	182,140
$500M joint repurchase facility (2)	Mar. 2024	Mar. 2025	V		77,572		100,348	2.80	%		395,317		475,360
$500M repurchase facility	Nov. 2022	N/A	V		197,249		197,293	3.16	%		236,429		236,527
$200M credit facility	Mar. 2023	N/A	V		56,228		56,376	2.96	%		115,304		115,351
$150M credit facility	July 2023	N/A	V		14,396		14,396	2.96	%		16,544		16,657
$50M credit facility	Sept. 2022	N/A	V		1,065		1,065	3.09	%		9,295		9,295
$1M repurchase facility (2) (4)	Dec. 2022	N/A	V		823		953	3.87	%		1,253		1,477
Agency Business total				$	455,553	$	479,308	2.85	%	$	956,272	$	1,036,807
Consolidated total				$	4,549,460	$	5,799,078	3.82	%	$	4,481,579	$	5,585,460

V = Variable Note Rate; F = Fixed Note Rate

(1) The debt carrying value for the Structured Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $8.7 million and $7.7 million, respectively. The debt carrying value for the Agency Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $3.2 million and $4.4 million, respectively.

(2) These facilities are subject to margin call provisions associated with changes in interest spreads. At June 30, 2022 and December 31, 2021, the repurchase facility - securities were collateralized by B Piece bonds with a carrying value of $37.5 million and $47.6 million, respectively.

(3) The commitment amount under this repurchase facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans.

(4) A portion of this facility was used to finance a $1.0 million fixed rate SFR permanent loan reported through our Agency Business.

(5) We are currently in negotiations with this lender to extend the facility.

During the first half of 2022, several of our credit and repurchase facilities, in both our Structured Business and Agency Business, converted from a LIBOR-based interest rate to a SOFR-based interest rate for new financings. Existing financings generally remain at a LIBOR-based interest rate.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Joint Repurchase Facility. We amended this facility twice in the second quarter of 2022. The facility size was increased from $2.50 billion to $3.00 billion, is shared between the Structured Business and the Agency Business and is used to finance both structured and Private Label loans. The interest rate under the facility is determined on a loan-by-loan basis and may include a floor equal to a pro rata share of the floors included in our originated loans. The facility has a maximum advance rate of 80% on all loans and has a $150.0 million over advance available that bears interest at a rate of the applicable benchmark plus 7.00%. The over advance is available through March 2023 and is being amortized on a monthly basis through its expiration. If the estimated market value of the loans financed in this facility decrease, we may be required to pay down borrowings under this facility.

Structured Business

At June 30, 2022 and December 31, 2021, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 4.24% and 2.51%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facilities, working capital facility and the master security agreement used to finance leasehold and capital expenditure improvements at our corporate office, was 77% at both June 30, 2022 and December 31, 2021.

In June 2022, we entered into a $500.0 million repurchase facility that has an interest rate of SOFR plus 2.76% and a maximum advance rate of 82.5%.

In April 2022, we amended our $325.0 million repurchase facility to increase the facility size to $450.0 million, extend the maturity to October 2023 and amend the interest rate for new loans after December 31, 2021 to daily SOFR or term SOFR at our election at loan inception.

In April 2022, we amended our $30.0 million working capital facility to increase the facility size to $35.0 million, extend the maturity to April 2023 and amend the interest rate from a LIBOR-based rate to SOFR plus 3.00%.

In March 2022, we entered into a $200.0 million repurchase facility that matures in March 2024, with a one year extension option. This facility has an interest rate of SOFR plus 2.55% and an advance rate equal to the lessor of: (1) 75% of the principal balance; (2) 60% of the project cost; or (3) 60% of the underlying property value.

In January 2022, we entered into a $150.0 million repurchase facility to finance bridge and construction loans that matures in January 2024, with a one year extension option. This facility has interest rates of SOFR plus 1.75% to 3.50% depending on the type of loan financed with a SOFR floor determined on a loan by loan basis and a maximum advance rate of 80%. In March 2022, we increased the facility by $50.0 million to $200.0 million.

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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

	Debt						Collateral (3)
							Loans				Cash
			Carrying		Wtd. Avg.				Carrying		Restricted
June 30, 2022	Face Value		Value (1)		Rate (2)		UPB		Value		Cash (4)
CLO 19	$	872,812	$	865,734	3.91	%	$	949,974	$	944,124	$	60,448
CLO 18		1,652,812		1,644,623	3.35	%		1,945,841		1,935,490		—
CLO 17		1,714,125		1,706,612	3.52	%		1,950,220		1,941,438		70,750
CLO 16		1,237,500		1,230,942	3.14	%		1,357,413		1,351,490		93,500
CLO 15		674,412		670,616	3.20	%		744,694		741,567		59,061
CLO 14		655,475		651,772	3.16	%		729,933		727,220		30,077
CLO 13		668,000		665,612	3.25	%		714,062		712,425		67,552
CLO 12		534,193		532,584	3.33	%		523,068		521,893		102,943
Total CLOs	$	8,009,329	$	7,968,495	3.38	%	$	8,915,205	$	8,875,647	$	484,331

December 31, 2021
CLO 17	$	1,714,125	$	1,705,549	1.81	%	$	1,914,280	$	1,903,997	$	118,520
CLO 16		1,237,500		1,230,093	1.44	%		1,444,573		1,436,743		—
CLO 15		674,412		669,723	1.49	%		785,761		782,682		15,750
CLO 14		655,475		650,947	1.45	%		717,396		715,154		53,342
CLO 13		668,000		665,006	1.54	%		740,369		738,265		48,543
CLO 12		534,193		531,939	1.62	%		557,249		555,974		35,635
CLO 10		441,000		439,553	1.57	%		485,460		483,995		57,706
Total CLOs	$	5,924,705	$	5,892,810	1.59	%	$	6,645,088	$	6,616,810	$	329,496

(1) Debt carrying value is net of $40.8 million and $31.9 million of deferred financing fees at June 30, 2022 and December 31, 2021, respectively.

(2) At June 30, 2022 and December 31, 2021, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.59% and 1.86%, respectively.

(3) At June 30, 2022 and December 31, 2021, there were no collateral deemed a “credit risk” as defined by the CLO indentures.

(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 $283.1 million and $133.7 million at June 30, 2022 and December 31, 2021, respectively.

CLO 19. In May 2022, we completed CLO 19, issuing nine tranches of CLO notes through a wholly-owned subsidiary totaling $1.05 billion. Of the total CLO notes issued, $872.8 million were investment grade notes issued to third-party investors and $177.2 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 $976.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two-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 $73.1 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, resulting in the issuer owning loan obligations with a face value of $1.05 billion, representing leverage of 83%. The notes sold to third parties had an initial weighted average interest rate of 2.36% plus term SOFR and interest payments on the notes are payable monthly.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

CLO 18. In February 2022, we completed CLO 18, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.86 billion. Of the total CLO notes issued, $1.65 billion were investment grade notes issued to third-party investors and $210.1 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 $1.70 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two-and-a-half-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 $347.3 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, resulting in the issuer owning loan obligations with a face value of $2.05 billion, representing leverage of 81%. We retained a residual interest in the portfolio with a notional amount of $397.2 million, including the $210.1 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.81% plus compounded SOFR and interest payments on the notes are payable monthly.

CLO 10. In February 2022, we unwound CLO 10, redeeming $441.0 million of outstanding notes which were repaid primarily from the refinancing of the remaining assets within CLO 18, as well as with cash held by CLO 10, and expensed $1.4 million of deferred financing fees into loss on extinguishment of debt on the consolidated statements of income.

Senior Unsecured Notes

A summary of our senior unsecured notes is as follows (in thousands):

Senior			June 30, 2022						December 31, 2021
Unsecured	Issuance				Carrying		Wtd. Avg.				Carrying		Wtd. Avg.
Notes	Date	Maturity	UPB		Value (1)		Rate (2)		UPB		Value (1)		Rate (2)
5.00% Notes (3)	Dec. 2021	Dec. 2028	$	180,000	$	177,238	5.00	%	$	180,000	$	177,105	5.00	%
4.50% Notes (3)	Aug. 2021	Sept. 2026		270,000		266,509	4.50	%		270,000		266,090	4.50	%
5.00% Notes (3)	Apr. 2021	Apr. 2026		175,000		172,605	5.00	%		175,000		172,302	5.00	%
8.00% Notes (3)	Apr. 2020	Apr. 2023		70,750		70,407	8.00	%		70,750		70,202	8.00	%
4.50% Notes (3)	Mar. 2020	Mar. 2027		275,000		272,718	4.50	%		275,000		272,477	4.50	%
4.75% Notes (4)	Oct. 2019	Oct. 2024		110,000		109,190	4.75	%		110,000		109,018	4.75	%
5.75% Notes (4)	Mar. 2019	Apr. 2024		90,000		89,321	5.75	%		90,000		89,135	5.75	%
5.625% Notes (4)	Mar. 2018	May 2023		125,000		124,510	5.63	%		125,000		124,216	5.63	%
			$	1,295,750	$	1,282,498	5.05	%	$	1,295,750	$	1,280,545	5.05	%

(1) At June 30, 2022 and December 31, 2021, the carrying value is net of deferred financing fees of $13.3 million and $15.2 million, respectively.

(2) At both June 30, 2022 and December 31, 2021, the aggregate weighted average note rate, including certain fees and costs, was 5.34%.

(3) These notes can be redeemed by us prior to three months before the maturity date, 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 notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

(4) These notes can be redeemed by us at any time prior to the maturity date, 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 notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Convertible Senior Unsecured Notes

In 2019, we issued $264.0 million in aggregate principal amount of 4.75% convertible senior notes (the “4.75% Convertible Notes”) through a private placement offering. The 4.75% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in November 2022, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 56.1695 shares of common stock per $1,000 of principal representing a conversion price of $17.80 per share of common stock. We received proceeds of $256.5 million, net of the underwriter’s discount and fees, which was being amortized through interest expense until the adoption of ASU 2020-06 on January 1, 2022. At June 30, 2022, the 4.75% Convertible Notes had a conversion rate of 57.3503 shares of common stock per $1,000 of principal, which represented a conversion price of $17.44 per share of common stock.

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. 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.

On January 1, 2022, we adopted ASU 2020-06, see Note 2 for details, which no longer allows for the allocation of proceeds between debt and equity components, eliminates the amortization of the debt discount and requires the if-converted method to calculate diluted earnings per share, regardless of the settlement intent.

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

	Liability								Equity
	Component								Component
			Unamortized Debt		Unamortized Deferred		Net Carrying		Net Carrying
Period	UPB		Discount		Financing Fees		Value		Value
June 30, 2022	$	264,000	$	—	$	874	$	263,126	$	—
December 31, 2021	$	264,000	$	2,520	$	2,095	$	259,385	$	8,684

During the three months ended June 30, 2022, we incurred interest expense on the notes totaling $3.8 million, of which $3.1 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. During the six months ended June 30, 2022, we incurred interest expense on the notes totaling $7.6 million, of which $6.3 million and $1.3 million related to the cash coupon and deferred financing fees, respectively. During the three months ended June 30, 2021, we incurred interest expense on the notes totaling $4.8 million, of which $3.3 million, $0.8 million and $0.7 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. During the six months ended June 30, 2021, we incurred total interest expense on the notes of $9.6 million, of which $6.6 million, $1.6 million and $1.4 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. Including the amortization of the deferred financing fees and debt discount, our weighted average total cost of the notes was 5.73% and 6.71% at June 30, 2022 and December 31, 2021, respectively, or 5.73% at December 31, 2021 excluding the amortization of the debt discount (which ceased on January 1, 2022 with the adoption of ASU 2020-06).

Junior Subordinated Notes

The carrying values of borrowings under our junior subordinated notes were $142.8 million and $142.4 million at June 30, 2022 and December 31, 2021, respectively, which is net of a deferred amount of $9.9 million and $10.2 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.6 million and $1.7 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate based on LIBOR. The weighted average note rate was 5.13% and 3.03% at June 30, 2022 and December 31, 2021, respectively. Including certain fees and costs, the weighted average note rate was 5.21% and 3.12% at June 30, 2022 and December 31, 2021, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Debt Covenants

Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt (senior and convertible notes) contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset 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 June 30, 2022.

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 June 30, 2022, as well as on the most recent determination dates in July 2022. 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 (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) 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 July 2022 are as follows:

Cash Flow Triggers	CLO 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
Overcollateralization (1)
Current	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
Limit	117.87	%	118.76	%	118.76	%	119.85	%	120.21	%	121.51	%	123.03	%	119.30	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass		Pass		Pass		Pass
Interest Coverage (2)
Current	253.59	%	234.87	%	226.47	%	226.54	%	216.65	%	186.01	%	217.98	%	132.93	%
Limit	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%
Pass / Fail	Pass		Pass		Pass		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 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
July 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
April 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	—
January 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	—		—
October 2021	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	—		—		—
July 2021	118.87	%	119.76	%	119.76	%	120.85	%	—		—		—		—

(1) This table 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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.

Note 10 — 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Beginning balance	$	55,172	$	65,893	$	56,064	$	64,303
Provisions for loss sharing		114		716		247		2,464
Provisions reversal for loan repayments		(2,063)		(167)		(2,858)		(263)
Charge – offs, net		(170)		(797)		(400)		(859)
Ending balance	$	53,053	$	65,645	$	53,053	$	65,645

When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At June 30, 2022 and 2021, guarantee obligations of $34.3 million and $34.5 million, respectively, were included in the allowance for loss-sharing obligations.

In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The current expected loss related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio.

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 June 30, 2022 and December 31, 2021, we had outstanding advances of $0.4 million and less than $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations.

At June 30, 2022 and December 31, 2021, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $18.7 million and $21.7 million, respectively, and represented 0.10% and 0.11%, respectively, of our Fannie Mae servicing portfolio. During the three and six months ended June 30, 2022, we recorded a $2.1 million and a $2.9 million, respectively, decrease in CECL reserves, which included a $1.2 million recovery for a loan that paid off during the second quarter of 2022.

At June 30, 2022 and December 31, 2021, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.47 billion and $3.60 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.

Note 11 — 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 and credit risk. We do not use these derivatives for speculative purposes, but are instead using them to manage our interest rate and credit risk exposure.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 simultaneously 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 gain (loss) on derivative instruments, 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 six months ended June 30, 2022, we recorded net gains of $5.0 million and $2.4 million, respectively, from changes in the fair value of these derivatives and $17.6 million and $32.9 million, respectively, of income from MSRs. During the three and six months ended June 30,2021, we recorded net gains of $9.9 million and $1.2 million, respectively, from changes in the fair value of these derivatives and $26.3 million and $63.2 million, respectively, of income from MSRs. The gains and losses are recorded in gain (loss) on derivative instruments, net. See Note 12 for details.

Interest Rate and Credit Default Swaps (“Swaps”). We enter into over-the-counter swaps to hedge our interest rate and credit risk exposure inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our interest rate swaps typically have a three-month maturity and are tied to the five-year and ten-year swap rates. Our credit default swaps typically have a five-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. The Swaps do not meet the criteria for hedge accounting, 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 months ended June 30, 2022, we recorded realized gains and unrealized losses of $5.7 million and $2.0 million, respectively, to our Agency Business related to our Swaps. During the six months ended June 30, 2022, we recorded realized gains and unrealized losses of $23.6 million and less than $0.1 million, respectively, to our Agency Business related to our Swaps. During the three months ended June 30, 2021, we recorded realized and unrealized losses of $9.4 million and $3.0 million, respectively, to our Agency Business related to our Swap Futures. During the six months ended June 30, 2021, we recorded realized and unrealized losses of $6.5 million and $0.4 million, respectively, to our Agency Business related to our Swap Futures. The realized and unrealized gains and losses are recorded in gain (loss) on derivative instruments, net.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

	June 30, 2022
					Fair Value
		Notional		Balance Sheet	Derivative		Derivative
Derivative	Count	Value		Location	Assets		Liabilities
Rate lock commitments	7	$	62,971	Other assets/other liabilities	$	1,035	$	(1,091)
Forward sale commitments	42		440,979	Other assets/other liabilities		3,933		(504)
Swaps	1,017		101,700			—		—
		$	605,650		$	4,968	$	(1,595)

	December 31, 2021
Rate lock commitments	2	$	11,250	Other assets/other liabilities	$	295	$	(33)
Forward sale commitments	55		571,220	Other assets/other liabilities		1,370		(1,449)
Swaps	3,882		388,200			—		—
		$	970,670		$	1,665	$	(1,482)

Note 12 — 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):

	June 30, 2022						December 31, 2021
	Principal /		Carrying		Estimated		Principal /		Carrying		Estimated
	Notional Amount		Value		Fair Value		Notional Amount		Value		Fair Value
Financial assets:
Loans and investments, net	$	15,033,811	$	14,832,302	$	15,027,449	$	12,158,995	$	11,981,048	$	12,181,194
Loans held-for-sale, net		519,118		518,935		527,296		1,077,239		1,093,609		1,117,085
Capitalized mortgage servicing rights, net		n/a		411,534		491,853		n/a		422,734		477,323
Securities held-to-maturity, net		240,290		159,686		158,716		210,728		140,484		149,911
Derivative financial instruments		419,571		4,968		4,968		280,654		1,665		1,665
Financial liabilities:
Credit and repurchase facilities	$	4,561,393	$	4,549,460	$	4,548,205	$	4,493,699	$	4,481,579	$	4,484,107
Collateralized loan obligations		8,009,329		7,968,495		7,731,113		5,924,705		5,892,810		5,914,453
Senior unsecured notes		1,295,750		1,282,498		1,179,563		1,295,750		1,280,545		1,301,708
Convertible senior unsecured notes, net		264,000		263,126		262,350		264,000		259,385		294,690
Junior subordinated notes		154,336		142,758		102,839		154,336		142,382		101,698
Derivative financial instruments		84,379		1,595		1,595		301,816		1,482		1,482

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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.

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 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 (Level 3). Fair values of impaired loans and investments are estimated using 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 (Level 3).

Loans held-for-sale, net. Consists of originated loans that are generally expected to be transferred or sold within 60 days to 180 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 inputs based on discounted future net cash flow methodology (Level 3). 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 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 (Level 3).

Derivative financial instruments. 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 and repurchase facilities. Fair values for credit and repurchase facilities of the Structured Business are estimated 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 (Level 3). The majority of our credit and repurchase facilities for the Agency Business bear interest at rates that are similar to those available in the market currently and fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values.

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Convertible senior unsecured notes, net. Fair values are estimated using current market quotes received from inactive markets (Level 2).

We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels as of June 30, 2022 (in thousands):

					Fair Value Measurements Using Fair
	Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Derivative financial instruments	$	4,968	$	4,968	$	—	$	3,933	$	1,035
Financial liabilities:
Derivative financial instruments	$	1,595	$	1,595	$	—	$	1,595	$	—

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, are determined using the following input levels as of June 30, 2022 (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
Loans held-for-investment (1)	$	61,745	$	61,745	$	—	$	—	$	61,745
Loans held-for-sale (2)		101,622		101,622		—		101,622		—
	$	163,367	$	163,367	$	—	$	101,622	$	61,745

(1) We had an allowance for credit losses of $85.4 million relating to seven impaired loans with an aggregate carrying value, before loan loss reserves, of $147.1 million at June 30, 2022.

(2) We recorded an impairment loss of $4.1 million related to five impaired loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $106.0 million.

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 credit 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 all amounts due for both principal and interest will not be collected 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 credit losses, or an impairment loss. 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.

Loans held-for-sale are generally transferred and sold within 60-180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 June 30, 2022 is as follows ($ in thousands):

	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Financial assets:
Impaired loans:
Land	$	50,000	Discounted cash flows	Discount rate	21.50	%
				Revenue growth rate	3.00	%
				Discount rate	11.25	%
Retail		11,745	Discounted cash flows	Capitalization rate	9.25	%
				Revenue growth rate	3.00	%
Derivative financial instruments:
Rate lock commitments		1,035	Discounted cash flows	W/A discount rate	12.26	%

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 is as follows (in thousands):

	Fair Value Measurements Using				Fair Value Measurements Using
	Significant Unobservable Inputs				Significant Unobservable Inputs
	for the Three Months Ended June 30,				for the Six Months Ended June 30,
	2022		2021		2022		2021
Derivative assets and liabilities, net
Beginning balance	$	1,355	$	1,439	$	295	$	1,967
Settlements		(17,254)		(23,045)		(30,937)		(58,074)
Realized gains recorded in earnings		15,899		21,606		30,642		56,107
Unrealized gains recorded in earnings		1,035		124		1,035		124
Ending balance	$	1,035	$	124	$	1,035	$	124

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 are as follows (in thousands):

							Unrealized
	Notional/		Fair Value of		Interest Rate		Impairemnt		Total Fair Value
June 30, 2022	Principal Amount		Servicing Rights		Movement Effect		Loss		Adjustment
Rate lock commitments	$	62,971	$	1,035	$	515	$	—	$	1,550
Forward sale commitments		440,979		—		(515)		—		(515)
Loans held-for-sale, net (1)		519,118		7,431		—		(4,380)		3,051
Total			$	8,466	$	—	$	(4,380)	$	4,086

(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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

We measure certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities are determined using the following input levels as of June 30, 2022 (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	$	14,832,302	$	15,027,449	$	—	$	—	$	15,027,449
Loans held-for-sale, net		518,935		527,296		—		519,865		7,431
Capitalized mortgage servicing rights, net		411,534		491,853		—		—		491,853
Securities held-to-maturity, net		159,686		158,716		—		—		158,716
Financial liabilities:
Credit and repurchase facilities	$	4,549,460	$	4,548,205	$	—	$	455,553	$	4,092,652
Collateralized loan obligations		7,968,495		7,731,113		—		—		7,731,113
Senior unsecured notes		1,282,498		1,179,563		1,179,563		—		—
Convertible senior unsecured notes, net		263,126		262,350		—		262,350		—
Junior subordinated notes		142,758		102,839		—		—		102,839

Note 13 — Commitments and Contingencies

Impact of COVID-19. The magnitude and duration of COVID-19 and its impact on our business and on our borrowers is uncertain and will mostly depend on future events, which cannot be predicted. As this pandemic continues and if economic conditions deteriorate, it may have long-term impacts on our financial position, results of operations and cash flows. See Note 2 and Item 1A. Risk Factors of our 2021 Annual Report for further discussion of COVID-19.

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 June 30, 2022, we were required to maintain at least $18.2 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 June 30, 2022, we met the restricted liquidity requirement with a $45.0 million letter of credit and $18.9 million of cash collateral.

As of June 30, 2022, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $37.7 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 June 30, 2022, 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 and FHA, as 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 more detail in Note 11 and Note 12.

Debt Obligations and Operating Leases. As of June 30, 2022, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands):

			Minimum Annual
	Debt		Operating Lease
Year	Obligations		Payments		Total
2022 (six months ending December 31, 2022)	$	1,577,515	$	4,204	$	1,581,719
2023		2,404,359		8,468		2,412,827
2024		3,585,363		8,214		3,593,577
2025		1,638,303		8,268		1,646,571
2026		4,120,591		8,292		4,128,883
2027		598,707		6,841		605,548
Thereafter		359,970		23,373		383,343
Total	$	14,284,808	$	67,660	$	14,352,468

During both the three months ended June 30, 2022 and 2021, we recorded lease expense of $2.4 million, and during both the six months ended June 30, 2022 and 2021, we recorded lease expense of $4.7 million.

Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $1.22 billion at June 30, 2022 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 was removed to the Bankruptcy Court. Currently, there is just a single case in Bankruptcy Court.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The lawsuits all alleged, 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 named 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, 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. The Trust also alleges 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, 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, (1) consolidate the lawsuits into one lawsuit, (2) remove 47 defendants from the lawsuits, none of whom are related to us, so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (3) reduce the counts within the lawsuits from over 100 down to 17.

The remaining counts in the Trust’s 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 to amend 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 moved to dismiss the referenced remaining actions in December 2013.

After supplemental briefing and multiple adjourned conferences, in August 2020, the Court issued a decision granting our motion to dismiss in part, dismissing 9 of the 17 counts. The Court permitted claims against director designees to proceed on theories of authorization of illegal dividends and breach of fiduciary duty. The Court permitted claims against the defendant entities, including our affiliated entities, to proceed on theories of constructive fraudulent transfer and fraudulent transfer under state and federal law. Moreover, the Court affirmatively dismissed four counts against the defendant entities to the extent they are based on distributions from certain so-called LIBOR Floor Certificates. According to the amended complaint, the total LIBOR Floor Certificate transfers were $74.0 million in value. As a result, with what remains of the amended complaint, total possible liability against the affiliated entities has correspondingly fallen, whereas total possible liability against the director designees remains at approximately $139.0 million.

The parties have stipulated to a schedule for discovery and we intend to vigorously defend against the remaining claims. 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.

Note 14 — 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.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO 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 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 to third parties by the CLOs, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the CLOs as opposed to our net economic interests in those entities.

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

	June 30, 2022		December 31, 2021
Assets:
Restricted cash	$	767,432	$	466,523
Loans and investments, net		8,875,647		6,616,809
Other assets		71,297		61,474
Total assets	$	9,714,376	$	7,144,806
Liabilities:
Collateralized loan obligations	$	7,968,495	$	5,892,810
Other liabilities		17,755		9,813
Total liabilities	$	7,986,250	$	5,902,623

Assets held by the CLOs are restricted and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to us and can only be satisfied from each respective asset pool. See Note 9 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.

Unconsolidated VIEs. We determined that we are not the primary beneficiary of 30 VIEs in which we have a variable interest at June 30, 2022 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, at June 30, 2022 is as follows (in thousands):

Type	Carrying Amount (1)
Loans	$	473,161
APL certificates		123,978
B Piece bonds		37,730
Equity investments		24,073
Agency interest only strips		339
Total	$	659,281

(1) Represents the carrying amount of loans and investments before reserves. At June 30, 2022, $127.9 million of loans to VIEs had corresponding specific loan loss reserves of $77.9 million. The maximum loss exposure as of June 30, 2022 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $4.43 billion at June 30, 2022.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 15 — Equity

Preferred Stock. In the first quarter of 2022, we completed a public offering of an additional 3,292,000 shares of 6.25% Series F fixed-to-floating rate cumulative redeemable preferred stock generating net proceeds of $77.1 million after deducting the underwriting discount and other offering expenses. The additional shares issued have the same terms as the original issuance completed in October 2021.

Common Stock. During the six months ended June 30, 2022, we sold 8,980,100 shares of our common stock for net proceeds of $144.4 million through an “At-The-Market” equity offering sales agreement.

In March 2022, we completed a public offering of 7,475,000 shares of our common stock (including the full exercise of the overallotment) for $16.57 per share and received net proceeds of $123.7 million after deducting the underwriter’s discount and other offering expenses.

The proceeds from the offerings above were used to make investments related to our business and for general corporate purposes.

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 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. At June 30, 2022, there were 16,293,589 OP Units outstanding, which represented 8.8% of the voting power of our outstanding stock.

Distributions. Dividends declared (on a per share basis) during the six months ended June 30, 2022 are as follows:

Common Stock			Preferred Stock
				Dividend
Declaration Date	Dividend		Declaration Date	Series D		Series E		Series F
February 16, 2022	$	0.37	January 3, 2022	$	0.3984375	$	0.390625	$	0.46875
May 4, 2022	$	0.38	April 1, 2022	$	0.3984375	$	0.390625	$	0.390625

Common Stock – On July 27, 2022, the Board of Directors declared a cash dividend of $0.39 per share of common stock. The dividend is payable on August 31, 2022 to common stockholders of record as of the close of business on August 15, 2022.

Preferred Stock – On July 1, 2022, the Board of Directors declared cash dividends of $0.3984375 per share of Series D preferred stock and $0.390625 per share of both Series E and Series F preferred stock. These amounts reflect dividends from April 30, 2022 through July 29, 2022 and are payable on August 1, 2022 to preferred stockholders of record on July 15, 2022.

Deferred Compensation. During 2022, we issued 591,367 shares of restricted common stock to our employees and Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $10.2 million, of which: (1) 205,389 shares with a grant date fair value of $3.5 million were fully vested on the grant date; (2) 201,014 shares with a grant date fair value of $3.5 million will vest in 2023; (3) 165,075 shares with a grant date fair value of $2.8 million will vest in 2024; (4) 9,951 shares with a grant date fair value of $0.2 million will vest in 2025; and (5) 9,938 shares with a grant date fair value of $0.2 million will vest in 2026. We also issued 25,012 of fully vested restricted stock units (“RSUs”) with a grant date fair value of $0.4 million to certain members of our Board of Directors and 189,873 RSUs with a grant date fair value of $3.3 million that vest in full in the first quarter of 2025 to our chief executive officer. The individuals decided to defer the receipt of the common stock, to which the RSUs are converted into, to a future date.

During the first quarter of 2022, 381,503 shares of performance-based restricted stock units previously granted to our chief executive officer fully vested and were net settled for 186,772 common shares.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

During 2022, we withheld 130,770 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

Earnings Per Share (“EPS”). Basic EPS is calculated by dividing net income (loss) 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 (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of 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 June 30,
	2022				2021
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	69,909	$	69,909	$	69,126	$	69,126
Net income attributable to noncontrolling interest (2)		—		6,992		—		8,717
Interest expense on convertible notes (3)		—		3,995		—		—
Net income attributable to common stockholders and noncontrolling interest	$	69,909	$	80,896	$	69,126	$	77,843
Weighted average shares outstanding		163,044,217		163,044,217		135,262,197		135,262,197
Dilutive effect of OP Units (2)		—		16,306,745		—		17,056,229
Dilutive effect of restricted stock units (3)		—		522,367		—		929,734
Dilutive effect of convertible notes (4)		—		15,140,481		—		368,431
Weighted average shares outstanding		163,044,217		195,013,810		135,262,197		153,616,591
Net income per common share (1)	$	0.43	$	0.41	$	0.51	$	0.51

	Six Months Ended June 30,
	2022				2021
Net income attributable to common stockholders (1)	$	133,968	$	133,968	$	138,606	$	138,606
Net income attributable to noncontrolling interest (2)		—		13,808		—		18,459
Interest expense on convertible notes (3)		—		7,989		—		—
Net income attributable to common stockholders and noncontrolling interest	$	133,968	$	155,765	$	138,606	$	157,065
Weighted average shares outstanding		158,258,813		158,258,813		130,276,499		130,276,499
Dilutive effect of OP Units (2)		—		16,315,869		—		17,307,037
Dilutive effect of restricted stock units (3)		—		655,489		—		921,187
Dilutive effect of convertible notes (4)		—		15,126,859		—		313,307
Weighted average shares outstanding		158,258,813		190,357,030		130,276,499		148,818,030
Net income per common share (1)	$	0.85	$	0.82	$	1.06	$	1.06

(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) Our chief executive officer was granted restricted stock units during 2020, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

(4) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior unsecured notes impacted diluted earnings per share if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. See Note 2 for details.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 16 — 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 six months ended June 30, 2022, we recorded a tax provision of $5.4 million and $13.5 million, respectively. In the three and six months ended June 30, 2021, we recorded a tax provision of $11.0 million and $23.5 million, respectively. The tax provision recorded in the three months ended June 30, 2022 consisted of a current tax provision of $6.1 million and a deferred tax benefit of $0.7 million. The tax provision recorded in the six months ended June 30, 2022 consisted of a current tax provision of $15.9 million and a deferred tax benefit of $2.4 million. The tax provision recorded in the three months ended June 30, 2021 consisted of a current tax provision of $11.0 million and a deferred tax benefit of less than $0.1 million. The tax provision recorded in the six months ended June 30, 2021 consisted of a current and deferred tax provision of $19.0 million and $4.5 million. 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.

Note 17 — Agreements and Transactions with Related Parties

Support Agreement and Employee Secondment Agreement. We have a support agreement and a secondment agreement with ACM and certain of its affiliates and certain affiliates of a relative of our chief executive officer (“Service Recipients”) where we provide support services and seconded employees to the Service Recipients. The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees. During the three and six months ended June 30, 2022, we incurred $0.9 million and $1.7 million, respectively, and, during the three and six months ended June 30, 2021, we incurred $0.8 million and $1.6 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which were reimbursed to us and included in due from related party on the consolidated balance sheets.

Other Related Party Transactions. Due from related party was $53.0 million and $84.3 million at June 30, 2022 and December 31, 2021, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of the quarter and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above.

Due to related party was $27.0 million and $26.6 million at June 30, 2022 and December 31, 2021, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions.

In April 2022, we committed to fund a $67.1 million bridge loan (none of which was funded at June 30, 2022) in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25% equity interest in the borrowing entity. The bridge loan has an interest rate of SOFR plus 4.625% with a SOFR floor of 0.25% and matures in April 2025. Interest income recorded from this loan was $0.1 million for both the three and six months ended June 30, 2022.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In February 2022, we committed to fund a $39.4 million bridge loan (none of which was funded at June 30, 2022) in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 4.00% with a LIBOR floor of 0.25% and matures in March 2025. Interest income recorded from this loan was less than $0.1 million and $0.1 million for the three and six months ended June 30, 2022, respectively.

In December 2021, we invested $4.2 million for 49.3% interest in a limited liability company (“LLC”) which purchased a retail property for $32.5 million and assumed an existing $26.0 million CMBS loan. A portion of the property can potentially be converted to office space, of which we obtain the right to occupy, in part. An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10.0% ownership, is the managing member and holds the right to purchase our interest in the LLC.

In October 2021, we entered into a $40.0 million promissory note with ACM to fund a portion of a $67.0 million bridge loan we originated to a third-party to purchase a multifamily property. The promissory note has an interest rate of LIBOR plus 3.0% and was scheduled to mature in April 2022. In December 2021, the borrower repaid the bridge loan in full and we repaid the promissory note. In December 2021, the promissory note was amended to include the funding of an additional asset, which matured in May 2022 without any additional funding.

In March 2021, we originated a $63.4 million bridge loan to a third-party to purchase a multifamily property from a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members, which fund has no continued involvement with the property following the purchase. The loan has an interest rate of LIBOR plus 3.75% with a LIBOR floor of 0.25% and matures in March 2024. Interest income recorded from this loan was $0.8 million and $1.5 million for the three and six months ended June 30, 2022, respectively, and $0.7 million for both the three and six months ended June 30, 2021.

In 2020, we committed to fund a $32.5 million bridge loan ($6.4 million was funded at June 30, 2022) and made a $3.5 million preferred equity investment in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 21.8% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75%, the preferred equity investment has a 12.0% fixed rate, and both loans mature in October 2023. Interest income recorded from these loans was $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2021, respectively.

In 2020, we committed to fund a $30.5 million bridge loan and we made a $4.6 million preferred equity investment in a SFR build-to-rent construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9% equity interest in the borrowing entity. The bridge loan ($9.1 million was funded at June 30, 2022) has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75% and matures in May 2023 and the preferred equity investment has a 12.0% fixed rate and matures in April 2023. Interest income recorded from these loans was $0.3 million and $0.6 million for the three and six months ended June 30, 2022, respectively, and $0.2 million and $0.3 million for the three and six months ended June 30, 2021, respectively.

In 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan 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 Private Label loan bears interest at a 3.1% fixed rate and the mezzanine loan bears interest at a 9.0% fixed rate and both loans mature in April 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from the mezzanine loan was $0.1 million for all periods presented.

In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. We have an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives’ charter. During the six months ended June 30, 2022 and 2021, we reimbursed the aircraft owner $0.7 million and $0.1 million, respectively, for the flights chartered by our executives pursuant the agreement.
​

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In 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 sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment ($25.2 million was funded at June 30, 2022) for an 18% interest in AMAC III. During the three and six months ended June 30, 2022, we recorded a loss associated with this investment of $0.6 million and $1.1 million, respectively. In 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower with which we have an outstanding $34.0 million bridge loan. In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property. Also in 2020, the $34.0 million bridge loan was refinanced with a $35.4 million bridge loan, which bears interest at a rate of LIBOR plus 3.5% and matures in August 2022. We also originated a $15.6 million Private Label loan in 2019 to a borrower which is 100% owned by AMAC III, which bears interest at a 3.735% fixed rate and matures in January 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.4 million and $0.7 million for the three and six months ended June 30, 2022, respectively, and $0.3 million and $0.6 million for the three and six months ended June 30, 2021, respectively.

In 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 0.25% and was scheduled to mature in June 2021, which was extended to August 2023. Interest income recorded from this loan was $0.3 million for both the three months ended June 30, 2022 and 2021 and $0.6 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively.

In 2018, we acquired a $9.4 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 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and was scheduled to mature in January 2021, which was extended to January 2022 and, in September 2021, this loan paid off in full. Interest income recorded from this loan was $0.1 million and $0.3 million for the three and six months ended June 30, 2021, 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 had an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and were scheduled to mature in 2020. The borrower refinanced these loans with a $31.1 million bridge loan we originated in 2019 with an interest rate of LIBOR plus 4.0%, a LIBOR floor of 1.8% and a maturity date in October 2021, which was extended to October 2022 and, in May 2022, these loans paid off in full. Interest income recorded from this loan was $0.3 million and $0.8 million for the three and six months ended June 30, 2022, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2021, 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 all periods presented.

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 June 30, 2022. 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 had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and were scheduled to mature in 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 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 the mezzanine loan was $0.1 million for all periods presented.

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. We recorded income from equity affiliates related to this investment of $1.1 million and $6.1 million in the three and six months ended June 30, 2022, respectively, and $4.8 million and $27.3 million in the three and six months ended June 30, 2021, respectively. During the three and six months ended June 30, 2022, we also received cash distributions totaling $7.5 million and $15.0 million from this investment, respectively, and $5.6 million and $18.7 million during the three and six months ended June 30, 2021, respectively, which were classified as returns of capital.

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 2018, the owners of Lexford restructured part of its debt and we originated 12 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 were originated in 2018, had interest rates of LIBOR plus 4.0% and were scheduled to mature in June 2021. During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million and in 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which bears interest at a 3.3% fixed rate and matures in March 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Further, as part of this 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 a $6.0 million distribution during the three months ended June 30, 2022, which was recorded as income from equity affiliates. Separate from the loans we originated in 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 June 30, 2022, this debt had an aggregate outstanding balance of $608.9 million and is scheduled to mature through 2029.

Several of our executives, including our chief financial officer, senior 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 35% 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. At June 30, 2022, ACM holds 2,535,870 shares of our common stock and 10,634,024 OP Units, which represents 7.1% 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.

42

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 18 — 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 June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	192,047	$	9,281	$	—	$	201,328
Interest expense		103,165		3,902		—		107,067
Net interest income		88,882		5,379		—		94,261
Other revenue:
Gain on sales, including fee-based services, net		—		16,510		—		16,510
Mortgage servicing rights		—		17,567		—		17,567
Servicing revenue		—		35,493		—		35,493
Amortization of MSRs		—		(14,779)		—		(14,779)
Property operating income		290		—		—		290
Loss on derivative instruments, net		—		8,606		—		8,606
Other income, net		(9,328)		(3,921)		—		(13,249)
Total other revenue		(9,038)		59,476		—		50,438
Other expenses:
Employee compensation and benefits		13,866		25,034		—		38,900
Selling and administrative		6,429		6,759		—		13,188
Property operating expenses		542		—		—		542
Depreciation and amortization		858		1,173		—		2,031
Provision for loss sharing (net of recoveries)		—		(1,949)		—		(1,949)
Provision for credit losses (net of recoveries)		5,088		(21)		—		5,067
Total other expenses		26,783		30,996		—		57,779
Income before income from equity affiliates and income taxes		53,061		33,859		—		86,920
Income from equity affiliates		6,547		—		—		6,547
Provision for income taxes		(255)		(5,097)		—		(5,352)
Net income		59,353		28,762		—		88,115
Preferred stock dividends		11,214		—		—		11,214
Net income attributable to noncontrolling interest		—		—		6,992		6,992
Net income attributable to common stockholders	$	48,139	$	28,762	$	(6,992)	$	69,909

43

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended June 30, 2021
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	96,498	$	8,650	$	—	$	105,148
Interest expense		42,748		3,630		—		46,378
Net interest income		53,750		5,020		—		58,770
Other revenue:
Gain on sales, including fee-based services, net		—		40,901		—		40,901
Mortgage servicing rights		—		26,299		—		26,299
Servicing revenue		—		29,982		—		29,982
Amortization of MSRs		—		(14,667)		—		(14,667)
Loss on derivative instruments, net		—		(2,607)		—		(2,607)
Other income, net		1,255		8		—		1,263
Total other revenue		1,255		79,916		—		81,171
Other expenses:
Employee compensation and benefits		11,907		31,793		—		43,700
Selling and administrative		5,248		5,885		—		11,133
Property operating expenses		129		—		—		129
Depreciation and amortization		615		1,173		—		1,788
Provision for loss sharing (net of recoveries)		—		549		—		549
Provision for credit losses (net of recoveries)		(8,333)		518		—		(7,815)
Total other expenses		9,566		39,918		—		49,484
Income before income from equity affiliates and income taxes		45,439		45,018		—		90,457
Income from equity affiliates		4,759		—		—		4,759
Provision for income taxes		(682)		(10,277)		—		(10,959)
Net income		49,516		34,741		—		84,257
Preferred stock dividends		6,414		—		—		6,414
Net income attributable to noncontrolling interest		—		—		8,717		8,717
Net income attributable to common stockholders	$	43,102	$	34,741	$	(8,717)	$	69,126

44

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Six Months Ended June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	348,308	$	19,718	$	—	$	368,026
Interest expense		181,367		8,260		—		189,627
Net interest income		166,941		11,458		—		178,399
Other revenue:
Gain on sales, including fee-based services, net		—		18,166		—		18,166
Mortgage servicing rights		—		32,879		—		32,879
Servicing revenue		—		71,519		—		71,519
Amortization of MSRs		—		(29,750)		—		(29,750)
Property operating income		586		—		—		586
Gain on derivative instruments, net		—		25,992		—		25,992
Other income, net		(6,131)		(3,917)		—		(10,048)
Total other revenue		(5,545)		114,889		—		109,344
Other expenses:
Employee compensation and benefits		29,352		51,573		—		80,925
Selling and administrative		13,838		13,897		—		27,735
Property operating expenses		1,077		—		—		1,077
Depreciation and amortization		1,668		2,346		—		4,014
Provision for loss sharing (net of recoveries)		—		(2,611)		—		(2,611)
Provision for credit losses (net of recoveries)		7,157		269		—		7,426
Total other expenses		53,092		65,474		—		118,566
Income before extinguishment of debt, income from equity affiliates and income taxes		108,304		60,873		—		169,177
Loss on extinguishment of debt		(1,350)		—		—		(1,350)
Income from equity affiliates		13,759		—		—		13,759
Provision for income taxes		(1,687)		(11,853)		—		(13,540)
Net income		119,026		49,020		—		168,046
Preferred stock dividends		20,270		—		—		20,270
Net income attributable to noncontrolling interest		—		—		13,808		13,808
Net income attributable to common stockholders	$	98,756	$	49,020	$	(13,808)	$	133,968

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ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Six Months Ended June 30, 2021
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	179,708	$	16,584	$	—	$	196,292
Interest expense		80,972		7,590		—		88,562
Net interest income		98,736		8,994		—		107,730
Other revenue:
Gain on sales, including fee-based services, net		—		69,768		—		69,768
Mortgage servicing rights		—		63,235		—		63,235
Servicing revenue		—		59,721		—		59,721
Amortization of MSRs		—		(28,871)		—		(28,871)
Loss on derivative instruments, net		—		(5,828)		—		(5,828)
Other income, net		1,935		8		—		1,943
Total other revenue		1,935		158,033		—		159,968
Other expenses:
Employee compensation and benefits		23,484		63,190		—		86,674
Selling and administrative		9,761		12,186		—		21,947
Property operating expenses		272		—		—		272
Depreciation and amortization		1,197		2,346		—		3,543
Provision for loss sharing (net of recoveries)		—		2,201		—		2,201
Provision for credit losses (net of recoveries)		(9,362)		472		—		(8,890)
Total other expenses		25,352		80,395		—		105,747
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes		75,319		86,632		—		161,951
Loss on extinguishment of debt		(1,370)		—		—		(1,370)
Gain on sale of real estate		—		1,228		—		1,228
Income from equity affiliates		27,010		—		—		27,010
Provision for income taxes		(5,665)		(17,786)		—		(23,451)
Net income		95,294		70,074		—		165,368
Preferred stock dividends		8,303		—		—		8,303
Net income attributable to noncontrolling interest		—		—		18,459		18,459
Net income attributable to common stockholders	$	86,991	$	70,074	$	(18,459)	$	138,606

(1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

46

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	June 30, 2022
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	94,983	$	247,008	$	341,991
Restricted cash		769,009		18,943		787,952
Loans and investments, net		14,832,302		—		14,832,302
Loans held-for-sale, net		—		518,935		518,935
Capitalized mortgage servicing rights, net		—		411,534		411,534
Securities held-to-maturity, net		—		159,686		159,686
Investments in equity affiliates		90,855		—		90,855
Goodwill and other intangible assets		12,500		85,914		98,414
Other assets and due from related party		272,679		65,242		337,921
Total assets	$	16,072,328	$	1,507,262	$	17,579,590
Liabilities:
Debt obligations	$	13,750,783	$	455,554	$	14,206,337
Allowance for loss-sharing obligations		—		53,053		53,053
Other liabilities and due to related parties		311,873		95,331		407,204
Total liabilities	$	14,062,656	$	603,938	$	14,666,594

	December 31, 2021
Assets:
Cash and cash equivalents	$	142,771	$	261,809	$	404,580
Restricted cash		468,013		18,677		486,690
Loans and investments, net		11,981,048		—		11,981,048
Loans held-for-sale, net		—		1,093,609		1,093,609
Capitalized mortgage servicing rights, net		—		422,734		422,734
Securities held-to-maturity, net		—		140,484		140,484
Investments in equity affiliates		89,676		—		89,676
Goodwill and other intangible assets		12,500		88,260		100,760
Other assets and due from related party		285,600		68,664		354,264
Total assets	$	12,979,608	$	2,094,237	$	15,073,845
Liabilities:
Debt obligations	$	11,100,429	$	956,272	$	12,056,701
Allowance for loss-sharing obligations		—		56,064		56,064
Other liabilities and due to related parties		278,726		132,370		411,096
Total liabilities	$	11,379,155	$	1,144,706	$	12,523,861

47

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Origination Data:
Structured Business
Bridge loans (1)	$	2,047,599		$	1,800,688		$	4,868,315		$	2,806,376
Mezzanine / Preferred Equity		—			38,257			8,139			94,257
SFR - Permanent loans		—			—			—			26,238
Total new loan originations	$	2,047,599		$	1,838,945		$	4,876,454		$	2,926,871
(1) The three and six months ended June 30, 2022 includes 36 and 71 SFR loans with a UPB of $155.0 million and $288.4 million, respectively. The three and six months ended June 30, 2021 includes 25 and 43 SFR loans with a UPB of $70.9 million and $114.2 million, respectively. During the three and six months ended June 30, 2022, we committed to fund SFR loans totaling $185.2 million and $268.5 million, respectively. During the three and six months ended June 30, 2021, we committed to fund SFR loans totaling $40.0 million and $138.4 million, respectively.
Loan payoffs / paydowns	$	1,122,407		$	662,940		$	1,788,958		$	895,968
Agency Business
Origination Volumes by Investor:
Fannie Mae	$	665,449		$	637,494		$	1,115,129		$	1,701,477
Freddie Mac		407,691			155,914			706,763			270,631
Private Label		83,346			377,184			156,242			529,638
FHA		78,364			130,764			90,354			197,244
SFR - Fixed Rate		34,334			11,996			39,205			11,996
Total	$	1,269,184		$	1,313,352		$	2,107,693		$	2,710,986
Total loan commitment volume	$	1,184,282		$	1,194,344		$	2,159,414		$	2,654,479
Agency Business Loan Sales Data:
Fannie Mae	$	569,048		$	722,499		$	1,235,592		$	2,159,865
Freddie Mac		362,442			134,122			721,528			408,946
Private Label		11,250			449,890			500,519			449,890
FHA		75,101			163,602			146,917			230,005
SFR - Fixed Rate		12,862			11,996			12,862			75,294
Total	$	1,030,703		$	1,482,109		$	2,617,418		$	3,324,000
Sales margin (fee-based services as a % of loan sales) (1)		1.60	%		2.76	%		1.35	%		2.10	%
MSR rate (MSR income as a % of loan commitments)		1.48	%		2.20	%		1.52	%		2.38	%

(1) The six months ended June 30, 2022 includes $17.1 million of gains recognized on our Swaps related to the Private Label loans sold in the three months ended March 31, 2022, which is included as a component of gain (loss) on derivative instruments, net in the consolidated statements of income.

	June 30, 2022
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio UPB		(basis points)	(years)
Fannie Mae	$	18,600,196	52.6	8.2
Freddie Mac		4,805,068	26.4	9.5
Private Label		2,061,813	20.0	8.4
FHA		1,076,237	15.1	19.5
SFR - Fixed Rate		226,568	20.0	6.3
Total	$	26,769,882	43.6	8.9

	December 31, 2021
Fannie Mae	$	19,127,397	53.5	8.0
Freddie Mac		4,943,905	27.1	9.3
Private Label		1,711,326	20.0	8.3
FHA		985,063	15.4	21.0
SFR - Fixed Rate		191,698	20.0	6.5
Total	$	26,959,389	44.9	8.8

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion in conjunction with the unaudited consolidated interim financial statements, and related notes and the section entitled “Forward-Looking Statements” included herein.

Overview

Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, SFR and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages and preferred and direct equity. We also invest in real estate-related joint ventures and may 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 Fannie Mae and Freddie Mac, Ginnie Mae, FHA and 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 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 SBL lender, seller/servicer, nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans and originate and sell finance products through CMBS programs. We pool and securitize the Private Label loans and sell certificates in the securitizations to third-party investors, while retaining the servicing rights and APL certificates.

We conduct our operations to qualify as a REIT. A REIT is generally not subject to federal income tax on its REIT—taxable income that is distributed to its stockholders, provided that at least 90% of its REIT—taxable income is distributed and provided that certain other requirements are met.

Our operating performance is primarily driven by the following factors:

Net interest income earned on our investments. Net interest income represents the amount by which the interest income earned on our assets exceeds the interest expense incurred on our borrowings. If the yield on our assets increases or the cost of borrowings decreases, this will have a positive impact on earnings. However, if the yield earned on our assets decreases or the cost of borrowings increases, this will have a negative impact on earnings. Net interest income is also directly impacted by the size and performance of our asset portfolio. We recognize the bulk of our net interest income from our Structured Business. Additionally, we recognize net interest income from loans originated through our Agency Business, which are generally sold within 60 days of origination.

Fees and other revenues recognized from originating, selling and servicing mortgage loans through the GSE and HUD programs. Revenue recognized from the origination and sale of mortgage loans consists of gains on sale of loans (net of any direct loan origination costs incurred), commitment fees, broker fees, loan assumption fees and loan origination fees. These gains and fees are collectively referred to as gain on sales, including fee-based services, net. We record income from MSRs at the time of commitment to the borrower, which represents the fair value of the expected net future cash flows associated with the rights to service mortgage loans that we originate, with the recognition of a corresponding asset upon sale. We also record servicing revenue which consists of fees received for servicing mortgage loans, net of amortization on the MSR assets recorded. Although we have long-established relationships with the GSE and HUD agencies, our operating performance would be negatively impacted if our business relationships with these agencies deteriorate. Additionally, we also recognize revenue from originating, selling and servicing our Private Label loans.

Income earned from our structured transactions. Our structured transactions are primarily comprised of investments in equity affiliates, which represent unconsolidated joint venture investments formed to acquire, develop and/or sell real estate-related assets. Operating results from these investments can be difficult to predict and can vary significantly period-to-period. If interest rates were to rise, it is likely that income from these investments would be significantly and negatively impacted, particularly from our investment in a residential mortgage banking business, since rising interest rates generally decrease the demand for residential real estate loans and the number of loan originations. In addition, we periodically receive distributions from our equity investments. It is difficult to forecast the timing of such payments, which can be substantial in any given quarter. We account for structured transactions within our Structured Business.

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Credit quality of our loans and investments, including our servicing portfolio. Effective portfolio management is essential to maximize the performance and value of our loan and investment and servicing portfolios. Maintaining the credit quality of the loans in our portfolios is of critical importance. Loans that do not perform in accordance with their terms may have a negative impact on earnings and liquidity.

COVID-19 Impact. The global outbreak of COVID-19, has forced many countries, including the U.S., to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. Although we have not been significantly impacted by COVID-19 to-date, the impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear and present risk with respect to our financial condition, results of operations, liquidity, and ability to pay distributions.

Significant Developments During the Second Quarter of 2022

Financing and Capital Markets Activity.

● Closed a collateralized securitization vehicle (CLO 19) totaling $1.05 billion, of which $872.8 million of investment grade notes were issued to third-party investors and $177.2 million of below investment-grade notes were retained by us;

● Raised $130.4 million of capital from the issuances of common stock under our “At-The-Market” equity offering sales agreement; and

● Increased our Structured Business warehouse capacity by $1.13 billion.

Structured Business Activity.

● Grew our structured loan and investment portfolio 6% to $15.03 billion on loan originations totaling $2.05 billion, partially offset by loan runoff totaling $1.12 million;

● Received cash distributions from several equity investments totaling $14.4 million, including $7.5 million (recognized as a return of capital) from our residential mortgage venture and $6.0 million (recognized as income) from our Lexford venture; and

● Sold a $110.5 million loan at a discount for $102.2 million, releasing $66.3 million of capital for future investment and recognized a $9.2 million loss. We have the potential to recover up to $2.8 million depending on the future performance of the loan.

Agency Business Activity.

● Loan originations and sales totaled $1.27 billion and $1.03 billion, respectively; and

● Our fee-based servicing portfolio remained flat at $26.77 billion, as loan originations were offset by loan maturities and prepayments.

Dividend. We raised our quarterly common dividend to $0.39 per share, our 9^th consecutive quarterly increase, representing a 30% increase over that time span.

Current Market Conditions, Risks and Recent Trends

As discussed throughout this report, the COVID-19 pandemic continues to impact the global economy in unprecedented ways, swiftly halting activity across many industries, and continuing to cause significant disruption and liquidity constraints in many market segments, including the financial services, real estate and credit markets. The impact of COVID-19 on companies continues to evolve, the full extent of which will depend on future developments, including, among other factors, the emergence of new variants in the US and abroad, the recovery time of the disrupted supply chains and industries, the impact of labor market interruptions, the impact of government interventions and the effectiveness of vaccination programs. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. Although we have not been significantly impacted by COVID-19 to-date, adverse economic conditions have resulted, and may continue to result, in declining real estate values of certain asset classes, increased payment delinquencies and defaults and increased loan modifications and foreclosures, all of which could have a significant impact on our future results of operations, financial condition, business prospects and our ability to make distributions to our stockholders.

50

The Federal Reserve has started to raise interest rates in 2022 to combat inflation and restore price stability and it is expected that rates will continue to rise throughout the remainder of 2022. Currently, rising interest rates will positively impact our net interest income since our structured loan portfolio exceeds our corresponding debt balances and the vast majority of our loan portfolio is floating-rate based on LIBOR or SOFR. In addition, a greater portion of our debt is fixed-rate, as compared to our structured loan portfolio, and will not reset as interest rates rise. Therefore, increases in interest income due to rising interest rates is likely to be greater than the corresponding increase in interest expense on our variable rate debt. Additionally, we earn interest on our escrow balances, so an increasing interest rate environment will increase our earnings on such balances. See “Quantitative and Qualitative Disclosures about Market Risk” below for additional details. Conversely, rising interest rates could negatively impact real estate values and limit a borrower’s ability to make debt service payments, which may limit new mortgage loan originations and increase the likelihood of incurring losses from defaulted loans if the reduction in the collateral value is insufficient to repay their loans in full.

We have been very successful in raising capital through various vehicles to grow our business. The anticipated continual rise in interest rates and unpredictable geopolitical landscape may cause a further dislocation in the capital markets resulting in a continual reduction of available liquidity and an increase in borrowing costs. Since our Structured Business is more reliant on the capital markets to grow, a lack of liquidity for a prolonged period of time could limit our ability to grow this business. However, our Agency Business requires limited capital to grow, as originations are financed through warehouse facilities for generally up to 60 days before the loans are sold, therefore a lack of liquidity should not impact our ability to grow this business.

We are a national originator with Fannie Mae and Freddie Mac, and the GSEs remain the most significant providers of capital to the multifamily market. In October 2021, the Federal Housing Finance Agency (“FHFA”) announced that its 2022 loan origination caps for Fannie Mae and Freddie Mac will be $78 billion for each enterprise for a total opportunity of $156 billion (the “2022 Caps”), which is an increase from its 2021 origination caps of $70 billion for each enterprise. The 2022 Caps will continue to apply to all multifamily business, have no exclusions and mandate that 50% be directed towards mission driven, affordable housing. The FHFA will also require at least 25% be affordable to residents at or below 60% of area median income for 2022, up from 20% in 2021. Our originations with the GSEs are highly profitable executions as they provide significant gains from the sale of our loans, non-cash gains related to MSRs and servicing revenues. Therefore, a decline in our GSE originations could negatively impact our financial results. We are unsure whether the FHFA will impose stricter limitations on GSE multifamily production volume in the future.

Changes in Financial Condition

Assets — Comparison of balances at June 30, 2022 to December 31, 2021:

Our Structured loan and investment portfolio balance was $15.03 billion and $12.16 billion at June 30, 2022 and December 31, 2021, respectively. This increase was primarily due to loan originations exceeding loan payoffs and paydowns by $3.09 billion. See below for details.

Our portfolio had a weighted average current interest pay rate of 5.49% and 4.26% at June 30, 2022 and December 31, 2021, respectively. Including certain fees earned and costs associated with the structured portfolio, the weighted average current interest rate was 5.82% and 4.62% at June 30, 2022 and December 31, 2021, respectively. Our debt that finances our loans and investment portfolio totaled $13.83 billion and $11.17 billion at June 30, 2022 and December 31, 2021, respectively, with a weighted average funding cost of 3.75% and 2.33%, respectively, which excludes financing costs. Including financing costs, the weighted average funding rate was 4.00% and 2.61% at June 30, 2022 and December 31, 2021, respectively.

51

Activity from our Structured Business portfolio is comprised of the following ($ in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2022			June 30, 2022
Loans originated (1)	$	2,047,599		$	4,876,454
Number of loans		91			216
Weighted average interest rate		5.76	%		5.01	%
(1) We committed to fund SFR loans totaling $185.2 million and $268.5 million during the three and six months ended June 30, 2022, respectively.
Loans paid-off / paid-down	$	1,122,407		$	1,788,958
Number of loans		55			91
Weighted average interest rate		6.55	%		6.30	%
Loans extended	$	494,131		$	915,203
Number of loans		22			33

Loans held-for-sale from the Agency Business decreased $574.7 million, primarily from loan sales exceeding originations by $509.7 million as noted in the following table (in thousands). Loan sales includes $489.3 million of Private Label loans which were sold in a Private Label loan securitization in the first quarter of 2022. Our GSE loans are generally sold within 60 days, while our Private Label loans are generally expected to be sold and securitized within 180 days from the loan origination date. Activity from our Agency Business portfolio is comprised of the following ($ in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2022				June 30, 2022
	Loan				Loan
	Originations		Loan Sales		Originations		Loan Sales
Fannie Mae	$	665,449	$	569,048	$	1,115,129	$	1,235,592
Freddie Mac		407,691		362,442		706,763		721,528
Private Label		83,346		11,250		156,242		500,519
FHA		78,364		75,101		90,354		146,917
SFR - Fixed Rate		34,334		12,862		39,205		12,862
Total	$	1,269,184	$	1,030,703	$	2,107,693	$	2,617,418

Securities held-to-maturity increased $19.2 million, primarily due to the purchase, at a discount, of APL certificates in connection with a Private Label securitization, partially offset by principal payments received from underlying loan payoffs from our B Piece bonds.

Investments in equity affiliates increased $1.2 million, primarily due to additional fundings totaling $11.9 million on our Fifth Wall and AMAC III equity investments, along with $6.1 million of income from our investment in a residential mortgage banking business, partially offset by $15.0 million in cash distributions received from the same investment.

Due from related party decreased $31.3 million as a result of funds received from our affiliated servicing operations related to loan payoffs.

Other assets increased $14.9 million, primarily due to increases in interest receivables from portfolio growth.

Liabilities – Comparison of balances at June 30, 2022 to December 31, 2021:

Collateralized loan obligations increased $2.08 billion, primarily due to the issuance of new CLOs, where we issued $2.53 billion of notes to third party investors, partially offset by the unwind of a CLO totaling $441.0 million.

Due to borrowers increased $19.3 million, primarily due to funds held on new originations in our Structured Business, partially offset by the release of unfunded loan originations.

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Other liabilities decreased $23.7 million primarily due to the payment of accrued commissions and incentive compensation during the first half of 2022, related to 2021 performance, along with a decrease in tax liabilities.

Equity

During the first half of 2022, we sold 16,455,100 shares of our common stock through our “At-The-Market” equity agreement and a public offering, raising net proceeds totaling $268.1 million.

During the first quarter of 2022, we completed a public offering of an additional 3,292,000 shares of our Series F preferred stock generating net proceeds of $77.1 million.

See Note 15 for details of our dividends declared and deferred compensation transactions during the six months ended June 30, 2022.

Agency Servicing Portfolio

The following table sets forth the characteristics of our loan servicing portfolio collateralizing our mortgage servicing rights and servicing revenue ($ in thousands):

	June 30, 2022
				Wtd. Avg.	Wtd. Avg.							Annualized
	Servicing			Age of	Portfolio							Prepayments		Delinquencies
	Portfolio		Loan	Portfolio	Maturity	Interest Rate Type				Wtd. Avg.		as a %		as a %
Product	UPB		Count	(years)	(years)	Fixed		Adjustable		Note Rate		of Portfolio (1)		of Portfolio (2)
Fannie Mae	$	18,600,196	2,539	3.1	8.6	97	%	3	%	3.98	%	13.85	%	0.18	%
Freddie Mac		4,805,068	1,222	2.8	10.7	87	%	13	%	3.84	%	31.39	%	0.09	%
Private Label		2,061,813	129	1.4	8.3	100	%	—	%	3.60	%	—	%	—	%
FHA		1,076,237	93	2.3	33.7	100	%	—	%	3.03	%	0.20	%	—	%
SFR - Fixed Rate		226,568	47	1.2	6.3	100	%	—	%	4.70	%	0.73	%	—	%
Total	$	26,769,882	4,030	2.9	10.0	95	%	5	%	3.89	%	15.27	%	0.14	%

	December 31, 2021
Fannie Mae	$	19,127,397	2,710	3.0	8.8	98	%	2	%	3.99	%	12.00	%	0.20	%
Freddie Mac		4,943,905	1,317	2.8	10.9	86	%	14	%	3.82	%	17.01	%	0.79	%
Private Label		1,711,326	102	1.2	8.6	100	%	—	%	3.64	%	—	%	—	%
FHA		985,063	90	2.0	33.9	100	%	—	%	3.01	%	23.69	%	—	%
SFR - Fixed Rate		191,698	45	0.9	6.7	100	%	—	%	4.54	%	—	%	—	%
Total	$	26,959,389	4,264	2.8	10.1	96	%	4	%	3.90	%	12.50	%	0.29	%

(1) Prepayments reflect loans repaid prior to six months from the loan maturity. The majority of our loan servicing portfolio has a prepayment protection term and therefore, we may collect a prepayment fee which is included as a component of servicing revenue, net. See Note 5 for details.

(2) Delinquent loans reflect loans that are contractually 60 days or more past due. At June 30, 2022 and December 31, 2021, delinquent loans totaled $38.6 million and $77.6 million, respectively, of which zero and $9.8 million, respectively, were in the foreclosure process. No loans were in bankruptcy at June 30, 2022 and December 31, 2021.

Our Agency Business servicing portfolio represents commercial real estate loans, which are generally transferred or sold within 60 days from the date the loan is funded. Primarily all of the loans in our servicing portfolio are collateralized by multifamily properties. In addition, we are generally required to share in the risk of any losses associated with loans sold under the Fannie Mae DUS program, see Note 10.

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Comparison of Results of Operations for the Three Months Ended June 30, 2022 and 2021

The following table provides our consolidated operating results ($ in thousands):

	Three Months Ended June 30,				Increase / (Decrease)
	2022		2021		Amount		Percent
Interest income	$	201,328	$	105,148	$	96,180	91	%
Interest expense		107,067		46,378		60,689	131	%
Net interest income		94,261		58,770		35,491	60	%
Other revenue:
Gain on sales, including fee-based services, net		16,510		40,901		(24,391)	(60)	%
Mortgage servicing rights		17,567		26,299		(8,732)	(33)	%
Servicing revenue, net		20,714		15,315		5,399	35	%
Property operating income		290		—		290	nm
Gain (loss)on derivative instruments, net		8,606		(2,607)		11,213	nm
Other income, net		(13,249)		1,263		(14,512)	nm
Total other revenue		50,438		81,171		(30,733)	(38)	%
Other expenses:
Employee compensation and benefits		38,900		43,700		(4,800)	(11)	%
Selling and administrative		13,188		11,133		2,055	18	%
Property operating expenses		542		129		413	nm
Depreciation and amortization		2,031		1,788		243	14	%
Provision for loss sharing (net of recoveries)		(1,949)		549		(2,498)	nm
Provision for credit losses (net of recoveries)		5,067		(7,815)		12,882	nm
Total other expenses		57,779		49,484		8,295	17	%
Income before income from equity affiliates and income taxes		86,920		90,457		(3,537)	(4)	%
Income from equity affiliates		6,547		4,759		1,788	38	%
Provision for income taxes		(5,352)		(10,959)		5,607	(51)	%
Net income		88,115		84,257		3,858	5	%
Preferred stock dividends		11,214		6,414		4,800	75	%
Net income attributable to noncontrolling interest		6,992		8,717		(1,725)	(20)	%
Net income attributable to common stockholders	$	69,909	$	69,126	$	783	1	%

nm — not meaningful

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The following table presents the average balance of our Structured Business interest-earning assets and interest-bearing liabilities, associated interest income (expense) and the corresponding weighted average yields ($ in thousands):

	Three Months Ended June 30,
	2022						2021
	Average		Interest		W/A Yield /		Average		Interest		W/A Yield /
	Carrying		Income /		Financing		Carrying		Income /		Financing
	Value (1)		Expense		Cost (2)		Value (1)		Expense		Cost (2)
Structured Business interest-earning assets:
Bridge loans	$	14,231,039	$	182,362	5.14	%	$	6,153,318	$	86,336	5.63	%
Mezzanine / junior participation loans		209,871		5,080	9.71	%		203,102		4,059	8.02	%
Preferred equity investments		148,220		2,845	7.70	%		224,840		5,627	10.04	%
Other		36,302		1,377	15.21	%		29,410		331	4.51	%
Core interest-earning assets		14,625,432		191,664	5.26	%		6,610,670		96,353	5.85	%
Cash equivalents		779,582		383	0.20	%		380,954		145	0.15	%
Total interest-earning assets	$	15,405,014	$	192,047	5.00	%	$	6,991,624	$	96,498	5.54	%

Structured Business interest-bearing liabilities:
CLO	$	7,491,397	$	46,709	2.50	%	$	2,987,301	$	13,560	1.82	%
Warehouse lines		4,160,842		33,797	3.26	%		1,727,737		12,198	2.83	%
Unsecured debt		1,559,750		21,158	5.44	%		1,066,013		15,792	5.94	%
Trust preferred		154,336		1,501	3.90	%		154,336		1,198	3.11	%
Total interest-bearing liabilities	$	13,366,325		103,165	3.10	%	$	5,935,387		42,748	2.89	%
Net interest income			$	88,882					$	53,750

(1) Based on UPB for loans, amortized cost for securities and principal amount of debt.

(2) Weighted average yield calculated based on annualized interest income or expense divided by average carrying value.

Net Interest Income

The increase in interest income was mainly due to a $95.5 million increase from our Structured Business, primarily due to a significant increase in our average core interest-earning assets from loan originations exceeding loan runoff, partially offset by a decrease in the average yield on core interest-earning assets. The decrease in the average yield was due to lower rates on originations as compared to loan runoff, partially offset by increases in benchmark index rates.

The increase in interest expense was mainly due to a $60.4 million increase from our Structured Business, primarily due to an increase in the average balance of our interest-bearing liabilities, due to the significant growth in our loan portfolio and the issuance of additional unsecured debt, and an increase in the average cost of our interest-bearing liabilities, mainly from increases in benchmark index rates.

Agency Business Revenue

The decrease in gain on sales, including fee-based services, net was primarily due to a 30% decrease ($451.4 million) in loan sales volume, along with a 42% decrease in the sales margin from 2.76% to 1.60%. The decrease in the loan sales volume and sales margin were primarily driven by the absence of a Private Label securitization in the second quarter of 2022.

The decrease in income from MSRs was primarily due to a 33% decrease in the MSR rate from 2.20% to 1.48%. The decrease in the MSR rate was primarily driven by lower average servicing fees on Fannie Mae loan commitments, due to a reduction in servicing rates on newer loans and a larger average loan size which carries lower servicing rates.

The increase in servicing revenue, net was primarily due to an increase in prepayment penalties received.

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Other Income

The gains and losses on derivative instruments in 2022 and 2021, respectively, were related to changes in the fair values of our rate lock commitments and Swaps held by our Agency Business.

The decrease in other income, net was primarily due to a $9.2 million loss recognized on the sale of a structured bridge and mezzanine loan at a discount, a $4.1 million unrealized impairment loss recorded on certain loans held-for sale in our Agency Business and a $2.0 million unrealized impairment loss recorded on the sale of structured bridge loans in July 2022.

Other Expenses

The decrease in employee compensation and benefits expense was primarily due to a decrease in commissions from lower GSE/Agency loan sales volume, partially offset by an increase in headcount as a result of the portfolio growth in both business segments.

The increase in selling and administrative expenses was primarily due to higher professional fees (legal and consulting) in both business segments. Administrative expenses were also higher in 2022 as a result of increases in travel and events as travel restrictions subside from the COVID-19 pandemic.

The net increase in our CECL reserves of $4.4 million, excluding recoveries of $1.5 million and $7.5 million in our Structured Business during 2022 and 2021, respectively, was primarily due to the growth in our structured portfolio and the impact of rising interest rates in our CECL models for our Structured Business, which predominantly consists of variable rate loans. This was partially offset by improvements in general market conditions and expected future forecasts in our CECL models for both business segments, including increased property values and optimism in COVID-19.

Income from Equity Affiliates

Income from equity affiliates in the second quarter of 2022 primarily reflects a $6.0 million distribution received from our Lexford joint venture, while income in the second quarter of 2021 primarily reflects income from our investment in a residential mortgage banking business of $4.8 million.

Provision for Income Taxes

In the three months ended June 30, 2022, we recorded a tax provision of $5.4 million, which consisted of a current tax provision of $6.1 million and a deferred tax benefit of $0.7 million. In the three months ended June 30, 2021, we recorded a tax provision of $11.0 million, which consisted of a current tax provision of $11.0 million and a deferred tax benefit of less than $0.1 million. The decrease in the tax provision was primarily due to lower income generated from our investment in a residential banking business and a decrease in the pre-tax income from our Agency Business.

Preferred Stock Dividends

The increase in preferred stock dividends was due to the issuances of our Series D, E and F preferred stock, which included a significantly larger number of shares than our Series A, B and C preferred stock that were redeemed in the second quarter of 2021.

Net Income Attributable to Noncontrolling Interest

The noncontrolling interest relates to the outstanding OP Units issued as part of the Acquisition. There were 16,293,589 OP Units and 16,352,233 OP Units outstanding as of June 30, 2022 and 2021, respectively, which represented 8.8% and 10.3% of our outstanding stock at June 30, 2022 and 2021, respectively.

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Comparison of Results of Operations for the Six Months Ended June 30, 2022 and 2021

The following table provides our consolidated operating results ($ in thousands):

	Six Months Ended June 30,				Increase / (Decrease)
	2022		2021		Amount		Percent
Interest income	$	368,026	$	196,292	$	171,734	87	%
Interest expense		189,627		88,562		101,065	114	%
Net interest income		178,399		107,730		70,669	66	%
Other revenue:
Gain on sales, including fee-based services, net		18,166		69,768		(51,602)	(74)	%
Mortgage servicing rights		32,879		63,235		(30,356)	(48)	%
Servicing revenue, net		41,769		30,850		10,919	35	%
Property operating income		586		—		586	nm
Gain (loss) on derivative instruments, net		25,992		(5,828)		31,820	nm
Other income, net		(10,048)		1,943		(11,991)	nm
Total other revenue		109,344		159,968		(50,624)	(32)	%
Other expenses:
Employee compensation and benefits		80,925		86,674		(5,749)	(7)	%
Selling and administrative		27,735		21,947		5,788	26	%
Property operating expenses		1,077		272		805	nm
Depreciation and amortization		4,014		3,543		471	13	%
Provision for loss sharing (net of recoveries)		(2,611)		2,201		(4,812)	nm
Provision for credit losses (net of recoveries)		7,426		(8,890)		16,316	nm
Total other expenses		118,566		105,747		12,819	12	%
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes		169,177		161,951		7,226	4	%
Loss on extinguishment of debt		(1,350)		(1,370)		20	(1)	%
Gain on sale of real estate		—		1,228		(1,228)	nm
Income from equity affiliates		13,759		27,010		(13,251)	(49)	%
Provision for income taxes		(13,540)		(23,451)		9,911	(42)	%
Net income		168,046		165,368		2,678	2	%
Preferred stock dividends		20,270		8,303		11,967	144	%
Net income attributable to noncontrolling interest		13,808		18,459		(4,651)	(25)	%
Net income attributable to common stockholders	$	133,968	$	138,606	$	(4,638)	(3)	%

nm — not meaningful

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The following table presents the average balance of our Structured Business interest-earning assets and interest-bearing liabilities, associated interest income (expense) and the corresponding weighted average yields ($ in thousands):

	Six Months Ended June 30,
	2022						2021
		Average		Interest	W/A Yield /			Average		Interest	W/A Yield /
		Carrying		Income /	Financing			Carrying		Income /	Financing
		Value (1)		Expense	Cost (2)			Value (1)		Expense	Cost (2)
Structured Business interest-earning assets:
Bridge loans	$	13,425,205	$	329,133	4.94	%	$	5,814,922	$	159,979	5.55	%
Mezzanine / junior participation loans		216,279		10,158	9.47	%		184,911		7,592	8.28	%
Preferred equity investments		150,478		5,505	7.38	%		224,869		11,190	10.03	%
Other		36,475		3,015	16.67	%		28,817		653	4.57	%
Core interest-earning assets		13,828,437		347,811	5.07	%		6,253,519		179,414	5.79	%
Cash equivalents		769,031		497	0.13	%		332,572		294	0.18	%
Total interest-earning assets	$	14,597,468	$	348,308	4.81	%	$	6,586,091	$	179,708	5.50	%
Structured Business interest-bearing liabilities:
CLO	$	7,050,184	$	78,432	2.24	%	$	2,793,960	$	25,695	1.85	%
Credit and repurchase facilities		3,916,009		57,918	2.98	%		1,604,360		22,875	2.88	%
Unsecured debt		1,559,750		42,312	5.47	%		1,007,855		30,012	6.00	%
Trust preferred		154,336		2,705	3.53	%		154,336		2,390	3.12	%
Total interest-bearing liabilities	$	12,680,279		181,367	2.88	%	$	5,560,511		80,972	2.94	%
Net interest income			$	166,941					$	98,736

(1) Based on UPB for loans, amortized cost for securities and principal amount of debt.

(2) Weighted average yield calculated based on annualized interest income or expense divided by average carrying value.

Net Interest Income

The increase in interest income was mainly due to a $168.6 million increase from our Structured Business, primarily due to a significant increase in our average core interest-earning assets from loan originations exceeding loan runoff, partially offset by a decrease in the average yield on core interest-earning assets. The decrease in the average yield was due to lower rates on originations as compared to loan runoff, partially offset by increases in benchmark index rates.

The increase in interest expense was mainly due to a $100.4 million increase from our Structured Business, primarily due to an increase in the average balance of our interest-bearing liabilities, due to the significant growth in our loan portfolio and the issuance of additional unsecured debt.

Agency Business Revenue

The decrease in gain on sales, including fee-based services, net was primarily due to a 36% decrease in the sales margin from 2.10% to 1.35%, along with a 21% decrease ($706.6 million) in loan sales volume. The decrease in the sales margin was primarily due to lower margins received on our Private Label loan sales.

The decrease in income from MSRs was primarily due to a 36% decrease in the MSR rate from 2.38% to 1.52% and a 19% decrease ($495.1 million) in loan commitment volume. The decrease in the MSR rate was primarily due to lower mix of Fannie Mae loan commitments, which carry higher servicing rates compared to the rest of the portfolio, along with lower average servicing fees on Fannie Mae loan commitments, due to a reduction in servicing rates on newer loans and a larger average loan size which carries lower servicing rates.

The increase in servicing revenue, net was primarily due to an increase in prepayment penalties received in 2022 and growth in our servicing portfolio.

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Other Income

The gains and losses on derivative instruments in 2022 and 2021, respectively, were related to changes in the fair values of our Swaps and rate lock commitments held by our Agency Business.

The decrease in other income, net was primarily due to a $9.2 million loss recognized on the sale of a structured bridge and mezzanine loan at a discount, a $4.4 million unrealized impairment loss recorded on certain loans held-for sale in our Agency Business and a $2.0 million unrealized impairment loss recorded on the sale of structured bridge loans in July 2022, partially offset by higher loan origination volume in our Structured Business.

Other Expenses

The decrease in employee compensation and benefits expense was primarily due to a decrease in commissions from lower GSE/Agency loan sales volume, partially offset by an increase in headcount as a result of the portfolio growth in both business segments.

The increase in selling and administrative expenses was primarily due to higher professional fees (legal and consulting) in both business segments. Administrative expenses were also higher in 2022 as a result of increases in travel and events as travel restrictions subside from the COVID-19 pandemic.

The net increase in our CECL reserves of $5.5 million, excluding recoveries of $1.5 million and $7.5 million in our Structured Business during 2022 and 2021, respectively, was primarily due to the growth in our structured portfolio and the impact of rising interest rates in our CECL models for our Structured Business, which predominantly consists of variable rate loans. This was partially offset by improvements in general market conditions and expected future forecasts in our CECL models for both business segments, including increased property values and optimism in COVID-19.

Loss on Extinguishment of Debt

The loss on extinguishment of debt in 2022 and 2021 represents deferred financing fees recognized in connection with the unwind of CLOs.

Gain on Sale of Real Estate

The gain recorded in 2021 was from the sale of a repurchased Fannie Mae loan.

Income from Equity Affiliates

Income from equity affiliates in 2022 and 2021 primarily reflects income from our investment in a residential mortgage banking business of $6.1 million and $27.3 million, respectively, as well as a $6.0 million distribution received from our Lexford joint venture in 2022 and $2.6 million in 2022 from an equity participation interest on a property that was sold. The higher income in 2021 from our investment in a residential mortgage banking business was driven by the historically low interest rates and strength in the residential housing market during COVID-19.

Provision for Income Taxes

In the six months ended June 30, 2022, we recorded a tax provision of $13.5 million, which consisted of a current tax provision of $15.9 million and a deferred tax benefit of $2.4 million. In the six months ended June 30, 2021, we recorded a tax provision of $23.5 million, which consisted of current and deferred tax provisions of $19.0 million and $4.5 million, respectively. The decrease in the tax provision was primarily due to lower income generated from our investment in a residential banking business and a decrease in the pre-tax income from our Agency Business.

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Preferred Stock Dividends

The increase in preferred stock dividends was due to the issuances of our Series D, E and F preferred stock, which included a significantly larger number of shares than our Series A, B and C preferred stock that were redeemed in the second quarter of 2021.

Net Income Attributable to Noncontrolling Interest

The noncontrolling interest relates to the outstanding OP Units issued as part of the Acquisition. There were 16,293,589 OP Units and 16,352,233 OP Units outstanding as of June 30, 2022 and 2021, respectively, which represented 8.8% and 10.3% of our outstanding stock at June 30, 2022 and 2021, respectively.

Liquidity and Capital Resources

Sources of Liquidity. Liquidity is a measure of our ability to meet our potential cash requirements, including ongoing commitments to repay borrowings, satisfaction of collateral requirements under the Fannie Mae DUS risk-sharing agreement and, as an approved designated seller/servicer of Freddie Mac’s SBL program, operational liquidity requirements of the GSE agencies, fund new loans and investments, fund operating costs and distributions to our stockholders, as well as other general business needs. Our primary sources of funds for liquidity consist of proceeds from equity and debt offerings, proceeds from CLOs and securitizations, debt facilities and cash flows from operations. We closely monitor our liquidity position and believe our existing sources of funds and access to additional liquidity will be adequate to meet our liquidity needs.

We are monitoring the COVID-19 pandemic and its impact on our financing sources, borrowers and their tenants, and the economy as a whole. The magnitude and duration of the pandemic, and its impact on our operations and liquidity, are uncertain and continue to evolve. To the extent that our financing sources, borrowers and their tenants continue to be impacted by the pandemic, or by the other risks disclosed in our filings with the SEC, it would have a material adverse effect on our liquidity and capital resources.

We had $13.83 billion in total structured debt outstanding at June 30, 2022. Of this total, $9.73 billion, or 70%, does not contain mark-to-market provisions and is comprised of non-recourse CLO vehicles, senior unsecured debt and junior subordinated notes, the majority of which have maturity dates in 2023, or later. The remaining $4.10 billion of debt is in credit and repurchase facilities with several different banks that we have long-standing relationships with. While we expect to extend or renew all of our facilities as they mature, we cannot provide assurance that they will be extended or renewed on as favorable terms.

In addition to our ability to extend our credit and repurchase facilities and raise funds from equity and debt offerings, we have approximately $1.00 billion in cash and available liquidity as well as other liquidity sources, including our $26.77 billion agency servicing portfolio, which is mostly prepayment protected and generates approximately $117 million per year in recurring cash flow.

At June 30, 2022, we had $47.5 million of securities financed with $25.6 million of debt that was subject to margin calls related to changes in interest spreads.

To maintain our status as a REIT under the Internal Revenue Code, we must distribute annually at least 90% of our REIT-taxable income. These distribution requirements limit our ability to retain earnings and thereby replenish or increase capital for operations. However, we believe that our capital resources and access to financing will provide us with financial flexibility and market responsiveness at levels sufficient to meet current and anticipated capital and liquidity requirements.

Cash Flows. Cash flows provided by operating activities totaled $780.7 million during the six months ended June 30, 2022 and consisted primarily of net cash inflows of $499.8 million as a result of loan sales exceeding loan originations in our Agency Business and net income of $168.0 million, as well as certain other non-cash net income adjustments.

Cash flows used in investing activities totaled $2.86 billion during the six months ended June 30, 2022. Loan and investment activity (originations and payoffs/paydowns) comprise the majority of our investing activities. Loan originations from our Structured Business totaling $4.66 billion, net of payoffs and paydowns of $1.79 billion, resulted in net cash outflows of $2.87 billion.

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Cash flows provided by financing activities totaled $2.32 billion during the six months ended June 30, 2022 and consisted primarily of net proceeds of $2.08 billion from CLO activity and $345.6 million of proceeds from the issuance of common and preferred stock, partially offset by $151.1 million of distributions to our stockholders and OP Unit holders.

Agency Business Requirements. The 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, purchase and loss obligations and compliance with reporting requirements. Our adjusted net worth and operational liquidity exceeded the agencies’ requirements at June 30, 2022. Our restricted liquidity and purchase and loss obligations were satisfied with letters of credit totaling $50.0 million and $18.9 million of cash collateral. See Note 13 for details about our performance regarding these requirements.

We also 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 11.

Debt Facilities. We maintain various forms of short-term and long-term financing arrangements. Borrowings underlying these arrangements are primarily secured by a significant amount of our loans and investments and substantially all of our loans held-for-sale. The following is a summary of our debt facilities (in thousands):

	June 30, 2022
							Maturity
Debt Instruments	Commitment		UPB (1)			Available	Dates (2)
Structured Business
Credit and repurchase facilities	$	6,382,569	$	4,102,645	$	2,279,924	2022 - 2024
Collateralized loan obligations (3)		8,009,329		8,009,329		—	2022 - 2027
Senior unsecured notes		1,295,750		1,295,750		—	2023 - 2028
Convertible senior unsecured notes		264,000		264,000		—	2022
Junior subordinated notes		154,336		154,336		—	2034 - 2037
Structured Business total		16,105,984		13,826,060		2,279,924
Agency Business
Credit and repurchase facilities (4)		2,150,824		458,748		1,692,076	2022 - 2024
Consolidated total	$	18,256,808	$	14,284,808	$	3,972,000

(1) Excludes the impact of deferred financing costs.

(2) See Note 13 for a breakdown of debt maturities by year.

(3) Maturity dates represent the weighted average remaining maturity based on the underlying collateral at June 30, 2022.

(4) The ASAP agreement we have with Fannie Mae has no expiration date.

We utilize our credit and repurchase facilities primarily to finance our loan originations on a short-term basis prior to loan securitizations, including through CLOs. The timing, size and frequency of our securitizations impact the balances of these borrowings and produce some fluctuations. The following table provides additional information regarding the balances of our borrowings (in thousands):

	Quarterly Average		End of Period		Maximum UPB at
Quarter Ended	UPB		UPB		Any Month-End
June 30, 2022	$	4,581,226	$	4,561,393	$	4,926,070
March 31, 2022		4,224,503		4,315,388		4,842,785
December 31, 2021		3,771,684		4,493,699		4,493,699
September 30, 2021		3,191,129		3,409,598		3,409,598
June 30, 2021		2,327,114		2,021,412		2,588,456

Our debt facilities, including their restrictive covenants, are described in Note 9.

Off-Balance Sheet Arrangements. At June 30, 2022, we had no off-balance sheet arrangements.

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Inflation. The Federal Reserve started raising interest rates in 2022 to combat inflation and restore price stability and it is expected that rates will continue to rise throughout the remainder of 2022. Currently, rising interest rates will positively impact our net interest income since our structured loan portfolio exceeds our corresponding debt balances and the vast majority of our loan portfolio is floating-rate based on LIBOR or SOFR. Additionally, a greater portion of our debt is fixed-rate, as compared to our structured loan portfolio, and will not reset as interest rates rise. Therefore, increases in interest income due to rising interest rates is likely to be greater than the corresponding increase in interest expense on our variable rate debt. See “Quantitative and Qualitative Disclosures about Market Risk” below for additional details.

Contractual Obligations. During the six months ended June 30, 2022, the following significant changes were made to our contractual obligations disclosed in our 2021 Annual Report: (1) closed new CLOs issuing $2.52 billion of investment grade notes and unwound a CLO redeeming $441.0 million of outstanding notes; (2) closed a Private Label securitization totaling $489.3 million; and (3) entered into new and modified existing debt facilities.

Refer to Note 13 for a description of our debt maturities by year and unfunded commitments at June 30, 2022.

Derivative Financial Instruments

We enter into derivative financial instruments in the normal course of business to manage the potential loss exposure caused by fluctuations of interest rates. See Note 11 for details.

Critical Accounting Policies

Please refer to Note 2 of the Notes to Consolidated Financial Statements in our 2021 Annual Report for a discussion of our critical accounting policies. During the six months ended June 30, 2022, there were no material changes to these policies, except for the adoption of ASU 2020-06 described in Note 2.

Non-GAAP Financial Measures

Distributable Earnings. We are presenting distributable earnings because we believe it is an important supplemental measure of our operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. We consider distributable earnings in determining our quarterly dividend and believe that, over time, distributable earnings are a useful indicator of our dividends per share.

We define distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, the tax impact on cumulative gains/losses on derivative instruments associated with Private Label loans sold during the periods presented, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below), amortization of the convertible senior notes conversion option (in comparative periods prior to 2022) and gains/losses on the receipt of real estate from the settlement of loans (prior to the sale of the real estate). We also add back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock.

We reduce distributable earnings for realized losses in the period we determine that a loan is deemed nonrecoverable in whole or in part. Loans are deemed nonrecoverable upon the earlier of: (1) when the loan receivable is settled (i.e., when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); or (2) when we determine that it is nearly certain that all amounts due will not be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset.

Distributable earnings are not intended to be an indication of our cash flows from operating activities (determined in accordance with GAAP) or a measure of our liquidity, nor is it entirely indicative of funding our cash needs, including our ability to make cash distributions. Our calculation of distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.

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Distributable earnings is as follows ($ in thousands, except share and per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income attributable to common stockholders	$	69,909	$	69,126	$	133,968	$	138,606
Adjustments:
Net income attributable to noncontrolling interest		6,992		8,717		13,808		18,459
Income from mortgage servicing rights		(17,567)		(26,299)		(32,879)		(63,235)
Deferred tax (benefit) provision		(706)		(50)		(2,426)		4,436
Amortization and write-offs of MSRs		27,625		20,299		55,295		38,331
Depreciation and amortization		2,617		2,733		5,186		5,432
Loss on extinguishment of debt		—		—		1,350		1,370
Provision for credit losses, net		5,849		(8,065)		7,546		(8,343)
Gain on derivative instruments, net		(4,155)		(3,230)		(4,453)		(9)
Stock-based compensation		3,149		2,044		9,241		5,375
Loss on redemption of preferred stock		—		3,479		—		3,479
Distributable earnings (1)	$	93,713	$	68,754	$	186,636	$	143,901
Diluted weighted average shares outstanding - GAAP (1)		195,013,810		153,616,591		190,357,030		148,818,030
Less: Convertible notes dilution (2)		(15,140,481)		—		(15,104,631)		—
Diluted weighted average shares outstanding - distributable earnings (1)		179,873,329		153,616,591		175,252,399		148,818,030
Diluted distributable earnings per share (1)	$	0.52	$	0.45	$	1.06	$	0.97

(1) Amounts are attributable to common stockholders and OP Unit holders. The OP Units are redeemable for cash, or at our option for shares of our common stock on a one-for-one basis.

(2) Beginning in the first quarter of 2022, the diluted weighted average shares outstanding were adjusted to exclude the potential shares issuable upon conversion and settlement of our convertible senior notes principal balance. Excluding the effect of a potential conversion in shares until a conversion occurs is consistent with past treatment and other unrealized adjustments to distributable earnings.

Item 3.        Quantitative and Qualitative Disclosures About Market Risk

We disclosed a quantitative and qualitative analysis regarding market risk in Item 7A of our 2021 Annual Report. That information is supplemented by the information included above in Item 2 of this report. Other than the developments described thereunder, there have been no material changes in our exposure to market risk since December 31, 2021. The following table projects the potential impact on interest (in thousands) for a 12-month period, assuming hypothetical instantaneous increases of 50 basis points and 100 basis points in LIBOR, or other applicable index rate, such as SOFR (collectively referred to as the “Index Rates” below). Since it is unlikely that the Index Rates will decrease in the near future as a result of the current economic environment, we have excluded the impact of decreases in the Index Rates.

	Assets (Liabilities)
	Subject to Interest		50 Basis Point		100 Basis Point
	Rate Sensitivity (1)		Increase (2)		Increase (2)
Interest income from loans and investments	$	15,033,811	$	70,628	$	142,908
Interest expense from debt obligations		(13,826,060)		61,504		123,007
Impact to net interest income (3)			$	9,124	$	19,901

(1) Represents the UPB of our loan portfolio and the principal balance of our debt.

63

(2) Interest rate floors on our loan portfolio that are above Index Rates could limit the effect of an increase on interest income. Conversely, these floors could reduce the impact on interest income from decreases in the Index Rates, which could result in increases to net interest income.

(3) The impact of hypothetical rate changes to net interest income are further benefited by interest income earned on our cash, restricted cash and escrow balances. At June 30, 2022, we had $2.65 billion of cash, restricted cash and escrows, which is earning interest at a weighted average rate of approximately 1.20%, or approximately $32 million annually. The interest rates on these balances are not indexed to an Index Rate and are negotiated periodically with each corresponding bank, therefore, the interest rates may not change in conjunction with changes in Index Rates.

We enter into interest rate swaps to hedge our exposure to changes in interest rates inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our interest rate swaps are tied to the five-year and ten-year swap rates and hedge our exposure to Private Label loans, until the time they are securitized, and changes in the fair value of our held-for-sale Agency Business SFR – fixed rate loans. A 50 basis point and a 100 basis point increase to the five-year and ten-year swap rates on our interest rate swaps held at June 30, 2022 would have resulted in a gain of $4.1 million and $7.9 million, respectively, in the six months ended June 30, 2022, while a 50 basis point and a 100 basis point decrease in the rates would have resulted in a loss of $4.3 million and $8.8 million, respectively.

Our Agency Business originates, sells and services a range of multifamily finance products with Fannie Mae, Freddie Mac and HUD. Our loans held-for-sale to these agencies are not currently exposed to interest rate risk during the loan commitment, closing and delivery process. The sale or placement of each loan to an investor is negotiated prior to closing on the loan with the borrower, and the sale or placement is generally effectuated within 60 days of closing. The coupon rate for the loan is set after we establish the interest rate with the investor.

In addition, the fair value of our MSRs is subject to market risk since a significant driver of the fair value of these assets is the discount rates. A 100 basis point increase in the weighted average discount rate would decrease the fair value of our MSRs by $16.8 million at June 30, 2022, while a 100 basis point decrease would increase the fair value by $17.8 million.

Item 4.         Controls and Procedures

Management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures at June 30, 2022. Based on this evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2022.

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II.  OTHER INFORMATION

Item 1.       Legal Proceedings

We are not involved in any material litigation nor, to our knowledge, is any material litigation threatened against us other than the litigation described in Note 13.

Item 1A.    Risk Factors

There have been no material changes to the risk factors set forth in Item 1A of our 2021 Annual Report.

64

Item 6.         Exhibits

Exhibit #	Description
3.1	Articles of Incorporation of Arbor Realty Trust, Inc. (1)
3.2	Articles of Amendment to Articles of Incorporation of Arbor Realty Trust, Inc. (2)
3.3	Amended and Restated Bylaws of Arbor Realty Trust, Inc. (3)
31.1	Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14.
31.2	Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14.
32	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1	Financial statements from the Quarterly Report on Form 10-Q of Arbor Realty Trust, Inc. for the quarter ended June 30, 2022, filed on July 29, 2022, formatted in Inline Extensible Business Reporting Language (“XBRL”): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Income, (3) the Consolidated Statements of Changes in Equity, (4) the Consolidated Statements of Cash Flows and (5) the Notes to Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

In accordance with Item 601 (b)(4)(iii)(A) of Regulation S-K, certain instruments with respect to long-term debt of the registrant have been omitted but will be furnished to the Securities and Exchange Commission upon request.

(1) Incorporated by reference to Registration Statement on Form S-11 (No. 333-110472), as amended filed November 13, 2003.

(2) Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q filed August 7, 2007.

(3) Incorporated by reference to Exhibit 3.1 of Form 8-K filed December 1, 2020.

65

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ARBOR REALTY TRUST, INC.
Date: July 29, 2022	By:	/s/ Ivan Kaufman
		Ivan Kaufman
		Chief Executive Officer
Date: July 29, 2022	By:	/s/ Paul Elenio
		Paul Elenio
		Chief Financial Officer

66

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

I, Ivan Kaufman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Arbor Realty Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 29, 2022	By:	/s/ Ivan Kaufman
		Ivan Kaufman
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Paul Elenio, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Arbor Realty Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 29, 2022	By:	/s/ Paul Elenio
		Paul Elenio
		Chief Financial Officer

EX-32

EXHIBIT 32

Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Arbor Realty Trust, Inc. (the “Company”) for the quarter ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 29, 2022	By:	/s/ Ivan Kaufman
		Ivan Kaufman
		Chief Executive Officer

Date: July 29, 2022	By:	/s/ Paul Elenio
		Paul Elenio
		Chief Financial Officer

This certification is being furnished and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this certification required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 22, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-32136
Entity Registrant Name	Arbor Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	20-0057959
Entity Address, Address Line One	333 Earle Ovington Boulevard
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Uniondale
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11553
City Area Code	516
Local Phone Number	506-4200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		170,302,444
Entity Central Index Key	0001253986
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ABR
Security Exchange Name	NYSE
Series D Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.375% Series D CumulativeRedeemable, par value $0.01 per share
Trading Symbol	ABR-PD
Security Exchange Name	NYSE
Series E Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.25% Series E CumulativeRedeemable, par value $0.01 per share
Trading Symbol	ABR-PE
Security Exchange Name	NYSE
Series F Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value$0.01 per share
Trading Symbol	ABR-PF
Security Exchange Name	NYSE

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 341,991	$ 404,580
Restricted cash	787,952	486,690
Loans and investments, net (allowance for credit losses of $121,331 and $113,241)	14,832,302	11,981,048
Loans held-for-sale, net	518,935	1,093,609
Capitalized mortgage servicing rights, net	411,534	422,734
Securities held-to-maturity, net (allowance for credit losses of $2,022 and $1,753)	159,686	140,484
Investments in equity affiliates	90,855	89,676
Due from related party	53,037	84,318
Goodwill and other intangible assets	98,414	100,760
Other assets	284,884	269,946
Total assets	17,579,590	15,073,845
Liabilities and Equity:
Credit and repurchase facilities	4,549,460	4,481,579
Collateralized loan obligations	7,968,495	5,892,810
Senior unsecured notes	1,282,498	1,280,545
Convertible senior unsecured notes, net	263,126	259,385
Junior subordinated notes to subsidiary trust issuing preferred securities	142,758	142,382
Due to related party	27,014	26,570
Due to borrowers	115,990	96,641
Allowance for loss-sharing obligations	53,053	56,064
Other liabilities	264,200	287,885
Total liabilities	14,666,594	12,523,861
Commitments and contingencies (Note 13)
Arbor Realty Trust, Inc. stockholders' equity:
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: Special voting preferred shares - 16,293,589 and 16,325,095 shares 6.375% Series D - 9,200,000 shares 6.25% Series E - 5,750,000 shares 6.25% Series F - 11,342,000 and 8,050,000 shares	633,684	556,163
Common stock, $0.01 par value: 500,000,000 shares authorized - 168,454,805 and 151,362,181 shares issued and outstanding	1,685	1,514
Additional paid-in capital	2,060,837	1,797,913
Retained earnings	83,271	62,532
Total Arbor Realty Trust, Inc. stockholders' equity	2,779,477	2,418,122
Noncontrolling interest	133,519	131,862
Total equity	2,912,996	2,549,984
Total liabilities and equity	$ 17,579,590	$ 15,073,845

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Loans and investments, net allowance for credit losses	$ 121,331	$ 113,241
Securities held-to-maturity, net allowance for credit losses	$ 2,022	$ 1,753
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)	168,454,805	151,362,181
Common stock, shares outstanding (in shares)	168,454,805	151,362,181
Assets	$ 17,579,590	$ 15,073,845
Liabilities	14,666,594	12,523,861
Consolidated VIEs
Assets	9,714,376	7,144,806
Liabilities	$ 7,986,250	$ 5,902,623
Special voting preferred shares
Preferred stock, shares issued (in shares)	16,293,589	16,325,095
Preferred stock, shares outstanding (in shares)	16,293,589	16,325,095
6.375% Series D preferred stock
Preferred stock, dividend rate (as a percent)	6.375%	6.375%
Preferred stock, shares issued (in shares)	9,200,000
6.25% Series E preferred stock
Preferred stock, dividend rate (as a percent)	6.25%	6.25%
Preferred stock, shares issued (in shares)	5,750,000
6.25% Series F preferred stock
Preferred stock, dividend rate (as a percent)	6.25%	6.25%
Preferred stock, shares issued (in shares)	11,342,000	8,050,000

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$ 201,328	$ 105,148	$ 368,026	$ 196,292
Interest expense	107,067	46,378	189,627	88,562
Net interest income	94,261	58,770	178,399	107,730
Other revenue:
Gain on sales, including fee-based services, net	16,510	40,901	18,166	69,768
Mortgage servicing rights	17,567	26,299	32,879	63,235
Servicing revenue, net	20,714	15,315	41,769	30,850
Property operating income	290		586
Gain (loss) on derivative instruments, net	8,606	(2,607)	25,992	(5,828)
Other income, net	(13,249)	1,263	(10,048)	1,943
Total other revenue	50,438	81,171	109,344	159,968
Other expenses:
Employee compensation and benefits	38,900	43,700	80,925	86,674
Selling and administrative	13,188	11,133	27,735	21,947
Property operating expenses	542	129	1,077	272
Depreciation and amortization	2,031	1,788	4,014	3,543
Provision for loss sharing (net of recoveries)	(1,949)	549	(2,611)	2,201
Provision for credit losses (net of recoveries)	5,067	(7,815)	7,426	(8,890)
Total other expenses	57,779	49,484	118,566	105,747
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes	86,920	90,457	169,177	161,951
Loss on extinguishment of debt			(1,350)	(1,370)
Gain on sale of real estate				1,228
Income from equity affiliates	6,547	4,759	13,759	27,010
Provision for income taxes	(5,352)	(10,959)	(13,540)	(23,451)
Net income	88,115	84,257	168,046	165,368
Preferred stock dividends	11,214	6,414	20,270	8,303
Net income attributable to noncontrolling interest	6,992	8,717	13,808	18,459
Net income attributable to common stockholders	$ 69,909	$ 69,126	$ 133,968	$ 138,606
Basic earnings per common share	$ 0.43	$ 0.51	$ 0.85	$ 1.06
Diluted earnings per common share	$ 0.41	$ 0.51	$ 0.82	$ 1.06
Weighted average shares outstanding:
Basic	163,044,217	135,262,197	158,258,813	130,276,499
Diluted	195,013,810	153,616,591	190,357,030	148,818,030
Dividends declared per common share	$ 0.38	$ 0.34	$ 0.75	$ 0.67

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Preferred Stock 6.375% Series D preferred stock	Preferred Stock 6.25% Series F preferred stock	Preferred Stock Balance as adjusted for the adoption of ASU 2016-13	Preferred Stock	Common Stock 6.25% Series F preferred stock	Common Stock Balance as adjusted for the adoption of ASU 2016-13	Common Stock	Additional Paid-in Capital 6.25% Series F preferred stock	Additional Paid-in Capital Cumulative-effect adjustment	Additional Paid-in Capital Balance as adjusted for the adoption of ASU 2016-13	Additional Paid-in Capital	Accumulated Deficit 6.25% Series F preferred stock	Accumulated Deficit Cumulative-effect adjustment	Accumulated Deficit Balance as adjusted for the adoption of ASU 2016-13	Accumulated Deficit	Total Arbor Realty Trust, Inc. Stockholders' Equity 6.375% Series D preferred stock	Total Arbor Realty Trust, Inc. Stockholders' Equity 6.25% Series F preferred stock	Total Arbor Realty Trust, Inc. Stockholders' Equity Cumulative-effect adjustment	Total Arbor Realty Trust, Inc. Stockholders' Equity Balance as adjusted for the adoption of ASU 2016-13	Total Arbor Realty Trust, Inc. Stockholders' Equity	Noncontrolling Interest 6.25% Series F preferred stock	Noncontrolling Interest Cumulative-effect adjustment	Noncontrolling Interest Balance as adjusted for the adoption of ASU 2016-13	Noncontrolling Interest	6.375% Series D preferred stock	6.25% Series F preferred stock	Cumulative-effect adjustment	Balance as adjusted for the adoption of ASU 2016-13	Total
Balance at Dec. 31, 2020				$ 89,472			$ 1,232				$ 1,317,109				$ (63,442)					$ 1,344,371				$ 138,314					$ 1,482,685
Balance (in shares) at Dec. 31, 2020				21,272,133			123,181,173
Increase (Decrease) in Stockholders' Equity
Issuance of common stock	$ 222,463						$ 194				327,820					$ 222,463				328,014					$ 222,463				328,014
Issuance of common stock (in shares)	9,200,000						19,422,879
Repurchase of common stock							$ (14)				(23,446)									(23,460)									(23,460)
Repurchase of common stock (in shares)							(1,399,999)
Redemption of preferred stock				$ (89,296)																(89,296)									(89,296)
Redemption of preferred stock (in shares)				(3,711,500)
Stock-based compensation, net							$ 5				(585)									(580)									(580)
Stock-based compensation, net (in shares)							534,556
Distributions - common stock															(87,240)					(87,240)									(87,240)
Distributions - preferred stock															(8,311)					(8,311)									(8,311)
Distributions - noncontrolling interest																								(11,766)					(11,766)
Redemption of operating partnership units				$ (12)																(12)				(21,098)					(21,110)
Redemption of operating partnership units (in shares)				(1,208,400)
Net income															146,909					146,909				18,459					165,368
Balance at Jun. 30, 2021				$ 222,627			$ 1,417				1,620,898				(12,084)					1,832,858				123,909					1,956,767
Balance (in shares) at Jun. 30, 2021				25,552,233			141,738,609
Balance at Mar. 31, 2021				$ 89,472			$ 1,337				1,473,120				(35,498)					1,528,431				142,261					1,670,692
Balance (in shares) at Mar. 31, 2021				21,272,133			133,690,060
Increase (Decrease) in Stockholders' Equity
Issuance of common stock	$ 222,463						$ 93				169,488					$ 222,463				169,581					$ 222,463				169,581
Issuance of common stock (in shares)	9,200,000						9,282,479
Repurchase of common stock							$ (14)				(23,446)									(23,460)									(23,460)
Repurchase of common stock (in shares)							(1,399,999)
Redemption of preferred stock				$ (89,296)																(89,296)									(89,296)
Redemption of preferred stock (in shares)				(3,711,500)
Stock-based compensation, net							$ 1				1,736									1,737									1,737
Stock-based compensation, net (in shares)							166,069
Distributions - common stock															(45,710)					(45,710)									(45,710)
Distributions - preferred stock															(6,416)					(6,416)									(6,416)
Distributions - noncontrolling interest																								(5,971)					(5,971)
Redemption of operating partnership units				$ (12)																(12)				(21,098)					(21,110)
Redemption of operating partnership units (in shares)				(1,208,400)
Net income															75,540					75,540				8,717					84,257
Balance at Jun. 30, 2021				$ 222,627			$ 1,417				1,620,898				(12,084)					1,832,858				123,909					1,956,767
Balance (in shares) at Jun. 30, 2021				25,552,233			141,738,609
Balance at Dec. 31, 2021				$ 556,163			$ 1,514				1,797,913				62,532					2,418,122				131,862					2,549,984
Balance (in shares) at Dec. 31, 2021				39,325,095			151,362,181
Balance at Mar. 31, 2022				$ 633,734			$ 1,602				1,927,621				75,828					2,638,785				133,263					2,772,048
Balance (in shares) at Mar. 31, 2022				42,617,095			160,198,115
Balance at Dec. 31, 2021				$ 556,163			$ 1,514				1,797,913				62,532					2,418,122				131,862					2,549,984
Balance (in shares) at Dec. 31, 2021				39,325,095			151,362,181
Increase (Decrease) in Stockholders' Equity
Issuance of common stock		$ 77,522					$ 164	$ (130)			268,079						$ 77,392			268,243						$ 77,392			268,243
Issuance of common stock (in shares)		3,292,000					16,455,100
Stock-based compensation, net							$ 7				3,659									3,666									3,666
Stock-based compensation, net (in shares)							637,524
Distributions - common stock															(118,838)					(118,838)									(118,838)
Distributions - preferred stock															(20,273)					(20,273)									(20,273)
Distributions - noncontrolling interest																								(12,231)					(12,231)
Redemption of operating partnership units				$ (1)																(1)				(545)					(546)
Redemption of operating partnership units (in shares)				(31,506)
Net income															154,238					154,238				13,808					168,046
Balance at Jun. 30, 2022			$ 556,163	$ 633,684		$ 1,514	$ 1,685		$ (8,684)	$ 1,789,229	2,060,837		$ 5,612	$ 68,144	83,271			$ (3,072)	$ 2,415,050	2,779,477		$ 625	$ 132,487	133,519			$ (2,447)	$ 2,547,537	2,912,996
Balance (in shares) at Jun. 30, 2022			39,325,095	42,585,589		151,362,181	168,454,805
Balance at Mar. 31, 2022				$ 633,734			$ 1,602				1,927,621				75,828					2,638,785				133,263					2,772,048
Balance (in shares) at Mar. 31, 2022				42,617,095			160,198,115
Increase (Decrease) in Stockholders' Equity
Issuance of common stock		$ (49)			$ 0		$ 82	$ (130)			130,361	$ 0					$ (179)			130,443	$ 0					$ (179)			130,443
Issuance of common stock (in shares)		0			0		8,229,350
Stock-based compensation, net							$ 1				2,985									2,986									2,986
Stock-based compensation, net (in shares)							27,340
Distributions - common stock															(62,463)					(62,463)									(62,463)
Distributions - preferred stock															(11,217)					(11,217)									(11,217)
Distributions - noncontrolling interest																								(6,191)					(6,191)
Redemption of operating partnership units				$ (1)																(1)				(545)					(546)
Redemption of operating partnership units (in shares)				(31,506)
Net income															81,123					81,123				6,992					88,115
Balance at Jun. 30, 2022			$ 556,163	$ 633,684		$ 1,514	$ 1,685		$ (8,684)	$ 1,789,229	$ 2,060,837		$ 5,612	$ 68,144	$ 83,271			$ (3,072)	$ 2,415,050	$ 2,779,477		$ 625	$ 132,487	$ 133,519			$ (2,447)	$ 2,547,537	$ 2,912,996
Balance (in shares) at Jun. 30, 2022			39,325,095	42,585,589		151,362,181	168,454,805

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 168,046	$ 165,368
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,014	3,543
Stock-based compensation	9,241	5,375
Amortization and accretion of interest and fees, net	(6,782)	354
Amortization of capitalized mortgage servicing rights	29,750	28,871
Originations of loans held-for-sale	(2,117,624)	(2,741,453)
Proceeds from sales of loans held-for-sale, net of gain on sale	2,617,418	3,324,001
Mortgage servicing rights	(32,879)	(63,235)
Write-off of capitalized mortgage servicing rights from payoffs	25,545	9,459
Provision for loss sharing (net of recoveries)	(2,611)	2,201
Provision for credit losses (net of recoveries)	7,426	(8,890)
Net charge-offs for loss sharing obligations	(400)	(859)
Deferred tax (benefit) provision	(2,426)	4,439
Income from equity affiliates	(13,759)	(27,010)
Distributions from operations of equity affiliates	11,438	18,923
Loss on extinguishment of debt	1,350	1,370
Payoffs and paydowns of loans held-for-sale	58,327	2,322
Loss on sale of loans	9,180
Change in fair value of held-for-sale loans	4,380
Changes in operating assets and liabilities	(5,086)	2,802
Net cash provided by operating activities	764,548	727,581
Investing Activities:
Loans and investments funded, originated and purchased, net	(4,661,893)	(2,814,170)
Payoffs and paydowns of loans and investments	1,686,546	773,163
Proceeds from sale of loans and investments	102,228	110,000
Deferred fees	39,514	20,141
Contributions to equity affiliates	(15,003)	(21,074)
Distributions from equity affiliates	16,144	17,181
Purchase of securities held-to-maturity, net	(27,598)	(23,747)
Payoffs and paydowns of securities held-to-maturity	9,083	5,487
Due to borrowers and reserves	9,364	(80,986)
Net cash used in investing activities	(2,841,615)	(2,014,005)
Financing activities:
Proceeds from credit and repurchase facilities	6,120,513	6,393,023
Paydowns and payoffs of credit and repurchase facilities	(6,052,818)	(6,610,333)
Proceeds from issuance of collateralized loan obligations	2,525,624	1,329,887
Payoffs and paydowns of collateralized loan obligations	(441,000)	(356,150)
Proceeds from issuance of common stock	268,243	328,014
Proceeds from issuance of preferred stock	77,392	222,463
Proceeds from issuance of senior unsecured notes		175,000
Redemption of preferred stock		(89,296)
Redemption of operating partnership units	(546)	(21,110)
Payments of withholding taxes on net settlement of vested stock	(5,575)	(5,955)
Repurchase of common stock		(23,460)
Distributions to stockholders	(151,099)	(107,317)
Payment of deferred financing costs	(24,994)	(20,592)
Net cash provided by financing activities	2,315,740	1,214,174
Net increase (decrease) in cash, cash equivalents and restricted cash	238,673	(72,250)
Cash, cash equivalents and restricted cash at beginning of period	891,270	536,998
Cash, cash equivalents and restricted cash at end of period	1,129,943	464,748
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period	404,580	339,528
Restricted cash at beginning of period	486,690	197,470
Cash, cash equivalents and restricted cash at beginning of period	891,270	536,998
Cash and cash equivalents at end of period	341,991	215,658
Restricted cash at end of period	787,952	249,090
Cash, cash equivalents and restricted cash at end of period	1,129,943	464,748
Supplemental cash flow information:
Cash used to pay interest	164,402	75,568
Cash used to pay taxes	20,733	25,739
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	7,010	1,181
Cummulative-effect adjustment (Note 2)	$ 2,447
Loans transferred from loans and investment, net to loans held-for-sale		$ 65,204

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Description of Business

6 Months Ended

Jun. 30, 2022

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 are a nationwide REIT and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Loan Origination and Investment Business, or “Structured Business,” and our Agency Loan Origination and Servicing Business, or “Agency Business.”

Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental (“SFR”) and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages and preferred and direct equity. We also invest in real estate-related joint ventures and may 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 “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. We also originate and service permanent financing loans underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans, and originate and sell finance products through conduit/commercial mortgage-backed securities (“CMBS”) programs. We pool and securitize the Private Label loans and sell certificates in the securitizations to third-party investors, while retaining the servicing rights and the highest risk bottom tranche certificate of the securitization (“APL certificates”).

Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the indirect 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. A REIT is generally not subject to federal income tax on that portion of its REIT-taxable income that is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS”), which are part of our TRS consolidated group (the “TRS Consolidated Group”) and are 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.

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Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

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 2021 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 14. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management 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. Since early 2020, there has been a global outbreak of COVID-19, which had forced many countries, including the United States, to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 has had, and may continue to have, a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19.

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive.	First quarter of 2022	We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the three and six months ended June 30, 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock.

Recently Issued Accounting Pronouncements

Description	Effective Date	Effect on Financial Statements
In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty.	First quarter of 2023, with early adoption permitted	We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements.

Significant Accounting Policies

See Item 8 – Financial Statements and Supplementary Data in our 2021 Annual Report for a description of our significant accounting policies. Except for the adoption of ASU 2020-06 described above, there have been no significant changes to our significant accounting policies since December 31, 2021.

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Loans and Investments

6 Months Ended

Jun. 30, 2022

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
	June 30, 2022		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	14,668,418	98	%	674	5.47	%	23.6	0	%	76	%
Mezzanine loans		181,019	1	%	36	7.63	%	64.2	41	%	79	%
Preferred equity investments		148,254	1	%	9	5.48	%	34.7	58	%	87	%
Other loans (5)		36,120	<1	%	3	6.12	%	38.7	0	%	67	%
		15,033,811	100	%	722	5.49	%	24.2	1	%	76	%
Allowance for credit losses		(121,331)
Unearned revenue		(80,178)
Loans and investments, net	$	14,832,302

	December 31, 2021
Bridge loans (4)	$	11,750,710	97	%	528	4.19	%	23.8	0	%	76	%
Mezzanine loans		223,378	2	%	39	7.32	%	56.3	34	%	84	%
Preferred equity investments		155,513	1	%	11	5.57	%	38.0	58	%	87	%
Other loans (5)		29,394	<1	%	2	4.63	%	48.1	0	%	67	%
		12,158,995	100	%	580	4.26	%	24.6	1	%	76	%
Allowance for credit losses		(113,241)
Unearned revenue		(64,706)
Loans and investments, net	$	11,981,048

(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 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) At June 30, 2022 and December 31, 2021, bridge loans included 181 and 120, respectively, of SFR loans with a total gross loan commitment of $1.11 billion and $804.6 million, respectively, of which $653.8 million and $408.2 million, respectively, was funded.

(5) At June 30, 2022 and December 31, 2021, other loans included 3 and 2, respectively, variable rate SFR permanent loans.

Concentration of Credit Risk

We are subject to concentration risk in that, at June 30, 2022, the UPB related to 39 loans with five different borrowers represented 11% of total assets. At December 31, 2021, the UPB related to 31 loans with five different borrowers represented 11% of total assets. During both the six months ended June 30, 2022 and the year ended December 31, 2021, 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 17 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. 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.

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2022 is as follows ($ in thousands):

																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2022		2021		2020		2019		2018		Prior		Total			LTV Ratio		LTV Ratio
Multifamily:
Pass	$	1,181,993	$	2,106,750	$	86,978	$	—	$	—	$	20,300	$	3,396,021
Pass/Watch		2,288,500		3,644,880		643,991		169,310		51,450		32,850		6,830,981
Special Mention		798,856		2,182,343		288,038		296,970		64,200		8,250		3,638,657
Substandard		—		7,400		20,400		40,325		—		—		68,125
Total Multifamily	$	4,269,349	$	7,941,373	$	1,039,407	$	506,605	$	115,650	$	61,400	$	13,933,784		1	%	77	%
Single-Family Rental:												Percentage of portfolio		93	%
Pass	$	5,995	$	36,882	$	13,333	$	—	$	—	$	—	$	56,210
Pass/Watch		207,171		225,418		4,979		18,664		—		—		456,232
Special Mention		1,459		68,046		107,986		—		—		—		177,491
Total Single-Family Rental	$	214,625	$	330,346	$	126,298	$	18,664	$	—	$	—	$	689,933		0	%	65	%
Land:												Percentage of portfolio		5	%
Special Mention	$	—	$	—	$	8,100	$	—	$	—	$	—	$	8,100
Substandard		—		—		—		—		—		127,928		127,928
Total Land	$	—	$	—	$	8,100	$	—	$	—	$	127,928	$	136,028		0	%	97	%
Office:												Percentage of portfolio		1	%
Special Mention	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064
Total Office	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064		0	%	87	%
Healthcare:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	—	$	—	$	14,558	$	—	$	—	$	14,558
Special Mention		—		—		—		51,069		—		—		51,069
Total Healthcare	$	—	$	—	$	—	$	65,627	$	—	$	—	$	65,627		0	%	77	%
Student Housing:												Percentage of portfolio		< 1	%
Pass	$	—	$	25,700	$	—	$	—	$	—	$	—	$	25,700
Substandard		—		—		21,500		—		—		—		21,500
Total Student Housing	$	—	$	25,700	$	21,500	$	—	$	—	$	—	$	47,200		34	%	76	%
Hotel:												Percentage of portfolio		< 1	%
Pass/Watch	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850
Total Hotel	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850		0	%	69	%
Retail:												Percentage of portfolio		< 1	%
Pass	$	—	$	—	$	—	$	4,000	$	—	$	—	$	4,000
Special Mention		—		—		—		—		18,600		—		18,600
Substandard		—		—		—		—		—		3,445		3,445
Total Retail	$	—	$	—	$	—	$	4,000	$	18,600	$	3,445	$	26,045		12	%	71	%
Other:												Percentage of portfolio		< 1	%
Special Mention	$	—	$	—	$	—	$	—	$	—	$	13,580	$	13,580
Doubtful		—		—		—		—		—		1,700		1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	15,280	$	15,280		7	%	51	%
												Percentage of portfolio		< 1	%
Grand Total	$	4,483,974	$	8,297,419	$	1,230,715	$	635,746	$	177,904	$	208,053	$	15,033,811		1	%	76	%

Geographic Concentration Risk

As of June 30, 2022, underlying properties in Texas and Florida represented 20% and 13%, respectively, of the outstanding balance of our loan and investment portfolio. As of December 31, 2021, underlying properties in Texas and Florida represented 19% and 12%, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio.

Allowance for Credit Losses

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

	Three Months Ended June 30, 2022
	Land		Multifamily		Office		Retail		Student Housing		Hotel		Healthcare		Other		Total
Allowance for credit losses:
Beginning balance	$	77,940	$	22,084	$	8,085	$	5,819	$	324	$	4	$	5	$	2,121	$	116,382
Provision for credit losses (net of recoveries)		(22)		5,874		(1,054)		—		(163)		12		(2)		304		4,949
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Three Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,096	$	30,029	$	8,051	$	13,848	$	3,498	$	7,754	$	3,872	$	2,152	$	147,300
Provision for credit losses (net of recoveries)		(39)		131		(229)		(29)		(1,133)		(7,529)		(6)		(19)		(8,853)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

	Six Months Ended June 30, 2022
Allowance for credit losses:
Beginning balance	$	77,970	$	18,707	$	8,073	$	5,819	$	636	$	8	$	8	$	2,020	$	113,241
Provision for credit losses (net of recoveries)		(52)		9,251		(1,042)		—		(475)		8		(5)		405		8,090
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Six Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	7,759	$	3,880	$	2,287	$	148,329
Provision for credit losses (net of recoveries)		(93)		(6,308)		5,976		(42)		(1,713)		(7,534)		(14)		(154)		(9,882)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

During the three and six months ended June 30, 2022, we recorded a $4.9 million and a $8.1 million provision for credit losses, which was net of a $1.5 million loan loss recovery for a loan that paid off during the second quarter of 2022. The increase in the provision for credit losses during the three and six months ended June 30, 2022 was primarily attributable to an increase in our loans and investments balance as a result of portfolio growth and the impact of rising interest rates and economic forecasts. Our estimate of allowance for credit losses on our structured loans and investments, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including an increase in interest rates, higher unemployment forecasts, and rising inflation, partially offset by increasing property values and other market factors, including continued optimism in the COVID-19 pandemic.

The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our current expected credit loss (“CECL”) allowance for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. As of June 30, 2022 and December 31, 2021, we had outstanding unfunded commitments of $1.22 billion and $975.2 million, respectively, that we are obligated to fund as borrowers meet certain requirements.

As of June 30, 2022 and December 31, 2021, accrued interest receivable related to our loans totaling $76.8 million and $58.3 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands):

	June 30, 2022
							Wtd. Avg. First		Wtd. Avg. Last
			Carrying		Allowance for		Dollar LTV		Dollar LTV
Asset Class	UPB (1)		Value		Credit Losses		Ratio		Ratio
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,563		5,817	14	%	79	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	157,960	$	147,131	$	85,386	3	%	96	%

	December 31, 2021
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,291		5,817	14	%	77	%
Office		1,980		1,980		1,500	0	%	51	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	159,940	$	148,839	$	86,886	3	%	95	%

(1) Represents the UPB of seven and eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2022 and December 31, 2021, respectively.

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 credit loss as of June 30, 2022 and December 31, 2021.

At June 30, 2022, four loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $5.1 million, were classified as non-performing and, at December 31, 2021, three loans with an aggregate net carrying value of $20.1 million, net of related loan loss reserves of $2.6 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):

	June 30, 2022						December 31, 2021
			Less Than		Greater Than				Less Than		Greater Than
			90 Days		90 Days				90 Days		90 Days
	UPB		Past Due		Past Due		UPB		Past Due		Past Due
Student Housing	$	21,500	$	—	$	21,500	$	21,500	$	—	$	21,500
Retail		3,445		—		3,445		920		—		920
Commercial		1,700		—		1,700		1,700		—		1,700
Total	$	26,645	$	—	$	26,645	$	24,120	$	—	$	24,120

In addition, we have six loans with a carrying value totaling $121.4 million at June 30, 2022, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.1 million entitle us to a weighted average accrual rate of interest of 7.91%. 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 June 30, 2022 and December 31, 2021, we had a cumulative allowance for credit losses of $71.4 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.

At both June 30, 2022 and December 31, 2021, we had no loans contractually past due 90 days or more that are still accruing interest. During both the three and six months ended June 30, 2022 and 2021, there was no interest income recognized on nonaccrual loans.

During the second quarter of 2022, we sold a bridge loan and mezzanine loans totaling $110.5 million, that were collateralized by a land development project, at a discount for $102.2 million. In connection with this transaction, we released $66.3 million of capital to be used for future investments and recorded a $9.2 million loss (including fees and expenses), which is included in other income, net on the consolidated statements of income. Additionally, we have the potential to recover up to $2.8 million depending on the future performance of the loan.

In July 2022, we sold four bridge loans with an aggregate UPB of $296.9 million at par less shared loan origination fees and selling costs. During the second quarter of 2022, we recorded a $2.0 million unrealized impairment loss associated with these loans which was included in other income, net on the consolidated statements of income.

In 2020, we entered into a loan modification agreement on a $26.5 million bridge loan with an interest rate of LIBOR plus 6.00% with a 2.375% LIBOR floor and a $6.1 million mezzanine loan with a fixed rate of 12% collateralized by a retail property to: (1) reduce the interest rate on both loans to the greater of: (i) LIBOR plus 5.50% and (ii) 6.50%, and (2) to extend the maturity three years to December 2024. A portion of the foregoing interest equal to 2.00% will be deferred to payoff and will be waived if the loan is paid off by December 31, 2022. The loan modification agreement also included a $6.0 million required principal paydown, which occurred at the closing of the modification transaction, and an $8.0 million principal reduction once the borrower deposited an additional reserve of $4.6 million, which took place in 2021 and was charged-off against the previously recorded allowance for credit losses.

In 2019, we purchased $50.0 million of a $110.0 million bridge loan, which was collateralized by a hotel property and scheduled to mature in December 2022. In 2020, we recorded a $7.5 million allowance for credit losses due to a reduction in the appraised value of the property. In 2020, we purchased the remaining $60.0 million bridge loan at a discount for $39.9 million, which we determined had experienced a more than insignificant deterioration in credit quality since origination and, therefore, deemed to be a purchased loan with credit deterioration. The $20.1 million discount was classified as a noncredit discount and no portion of the discount was allocated to allowance for credit losses at the date of purchase since the appraised value of the property was greater than the purchase price. Shortly after the purchase, we entered into a forbearance agreement with the borrower to temporarily reduce the interest rate from LIBOR plus 3.00% with a 1.50% LIBOR floor to a pay rate of 1.00% and to include a $10.0 million principal reduction if the loan is paid off by March 2, 2021. In 2021, we entered into a second forbearance agreement that temporarily eliminated the pay rate, extended the principal reduction payoff deadline to June 30, 2021 and increased the interest rate to an unaccrued default rate of 9.50%, which was deferred until payoff. In June 2021, we received $95.0 million for full satisfaction of these loans, reversed the $7.5 million allowance for credit losses and recorded interest income of $3.5 million.

These two loan modifications were deemed troubled debt restructurings. There were no other loan modifications, refinancing’s and/or extensions during the six months ended June 30, 2022 and 2021 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 June 30, 2022 and December 31, 2021, we had total interest reserves of $112.7 million and $87.4 million, respectively, on 424 loans and 328 loans, respectively, with an aggregate UPB of $7.36 billion and $5.75 billion, respectively.

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Loans Held-for-Sale, Net

6 Months Ended

Jun. 30, 2022

Loans Held-for-Sale, Net

Loans Held-for-Sale, Net

Note 4 — Loans Held-for-Sale, Net

Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our Private Label loans are generally expected to be sold and securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands):

	June 30, 2022		December 31, 2021
Fannie Mae	$	272,405	$	392,876
Private Label		106,002		507,918
Freddie Mac		97,767		112,561
SFR - Fixed Rate		35,109		9,352
FHA		7,835		54,532
		519,118		1,077,239
Fair value of future MSR		7,431		19,318
Unrealized impairment loss		(4,380)		—
Unearned discount		(3,234)		(2,948)
Loans held-for-sale, net	$	518,935	$	1,093,609

During the three and six months ended June 30, 2022, we sold $1.03 billion and $2.62 billion of loans held-for-sale, respectively, and $1.48 billion and $3.32 billion during the three and six months ended June 30, 2021, respectively. Included in the total loans sold during 2022 and 2021 were Private Label loans totaling $489.3 million and $449.9 million, respectively, which were sold to unconsolidated affiliates of ours who securitized the loans. We retained the most subordinate class of certificates in the 2022 and 2021 securitizations totaling $43.4 million and $38.2 million, respectively, in satisfaction of credit risk retention requirements (see Note 7 for details), and we are also the primary servicer of the mortgage loans.

During the three months ended June 30, 2022, we determined that the fair value of certain loans held-for-sale were below their carrying values and, based on the fair value analysis performed, we recorded an unrealized impairment loss of $4.1 million. The unrealized impairment loss was included in other income, net on the consolidated statements of income.

At June 30, 2022 and December 31, 2021, 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.

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Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2022

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 or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% - 13% (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 8.9 years and 8.5 years at June 30, 2022 and December 31, 2021, respectively.

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

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	398,061	$	23,975	$	422,036	$	395,573	$	27,161	$	422,734
Additions		17,123		—		17,123		44,095		—		44,095
Amortization		(13,066)		(1,713)		(14,779)		(25,993)		(3,757)		(29,750)
Write-downs and payoffs		(10,721)		(2,125)		(12,846)		(22,278)		(3,267)		(25,545)
Ending balance	$	391,397	$	20,137	$	411,534	$	391,397	$	20,137	$	411,534

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
Beginning balance	$	367,428	$	39,552	$	406,980	$	336,466	$	43,508	$	379,974
Additions		31,971		—		31,971		77,009		—		77,009
Amortization		(11,796)		(2,871)		(14,667)		(22,875)		(5,996)		(28,871)
Write-downs and payoffs		(4,540)		(1,091)		(5,631)		(7,537)		(1,922)		(9,459)
Ending balance	$	383,063	$	35,590	$	418,653	$	383,063	$	35,590	$	418,653

We collected prepayment fees totaling $15.2 million and $31.4 million during the three and six months ended June 30, 2022, respectively, and $4.2 million and $6.9 million during the three and six months ended June 30, 2021, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. As of June 30, 2022 and December 31, 2021, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of June 30, 2022 is as follows (in thousands):

Year	Amortization
2022 (six months ending 12/31/2022)	$	29,451
2023		57,065
2024		55,210
2025		52,744
2026		49,089
2027		43,518
Thereafter		124,457
Total	$	411,534

Based on scheduled maturities, actual amortization may vary from these estimates.

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Mortgage Servicing

6 Months Ended

Jun. 30, 2022

Mortgage Servicing

Mortgage Servicing

Note 6 — Mortgage Servicing

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

June 30, 2022
Product Concentrations					Geographic Concentrations
						UPB
Product	UPB (1)		% of Total		State	% of Total
Fannie Mae	$	18,600,196	69	%	Texas	12	%
Freddie Mac		4,805,068	18	%	New York	12	%
Private Label		2,061,813	8	%	California	8	%
FHA		1,076,237	4	%	North Carolina	8	%
SFR - Fixed Rate		226,568	1	%	Georgia	6	%
Total	$	26,769,882	100	%	New Jersey	6	%
					Florida	5	%
					Other (2)	43	%
					Total	100	%

December 31, 2021
Fannie Mae	$	19,127,397	71	%	Texas	12	%
Freddie Mac		4,943,905	18	%	New York	11	%
Private Label		1,711,326	6	%	North Carolina	9	%
FHA		985,063	4	%	California	8	%
SFR - Fixed Rate		191,698	1	%	Georgia	6	%
Total	$	26,959,389	100	%	Florida	6	%
					New Jersey	6	%
					Other (2)	42	%
					Total	100	%

(1) Excludes loans which we are not collecting a servicing fee.

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

At June 30, 2022 and December 31, 2021, our weighted average servicing fee was 43.6 basis points and 44.9 basis points, respectively. At June 30, 2022 and December 31, 2021, we held total escrow balances of $2.21 billion and $1.99 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $646.5 million and $682.5 million at June 30, 2022 and December 31, 2021, 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 $1.7 million and $2.6 million during the three and six months ended June 30, 2022, respectively, and $1.1 million and $2.2 million during the three and six months ended June 30, 2021, respectively, and is a component of servicing revenue, net in the consolidated statements of income.

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Securities Held-to-Maturity

6 Months Ended

Jun. 30, 2022

Securities Held-to-Maturity

Securities Held-to-Maturity

Note 7 — Securities Held-to-Maturity

Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. As of June 30, 2022, we retained APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 8.0 years. The weighted average effective interest rate was 8.85% and 9.11% at June 30, 2022 and December 31, 2021, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $6.8 million is estimated to mature after one year through five years and $186.0 million is estimated to mature after five years through ten years.

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 ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. As of June 30, 2022, 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 6.2 years. The weighted average effective interest rate was 12.07% and 11.32% at June 30, 2022 and December 31, 2021, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $8.2 million is estimated to mature within one year, $21.3 million is estimated to mature after one year through five years, $0.8 million is estimated to mature after five years through ten years and $17.2 million is estimated to mature after ten years.

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

			Net Carrying		Unrealized		Estimated		Allowance for
	Face Value		Value		Gain (Loss)		Fair Value		Credit Losses
June 30, 2022
APL certificates	$	192,791	$	122,222	$	(3,308)	$	118,914	$	1,756
B Piece bonds		47,499		37,464		2,338		39,802		266
Total	$	240,290	$	159,686	$	(970)	$	158,716	$	2,022
December 31, 2021
APL certificates	$	149,368	$	92,869	$	5,007	$	97,876	$	1,422
B Piece bonds		61,360		47,615		4,420		52,035		331
Total	$	210,728	$	140,484	$	9,427	$	149,911	$	1,753

A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands):

	Three Months Ended June 30, 2022
	APL		B Piece
	Certificates		Bonds		Total
Beginning balance	$	1,812	$	231	$	2,043
Provision for credit loss expense/(reversal)		(56)		35		(21)
Ending balance	$	1,756	$	266	$	2,022

	Six Months Ended June 30, 2022
Beginning balance	$	1,422	$	331	$	1,753
Provision for credit loss expense/(reversal)		334		(65)		269
Ending balance	$	1,756	$	266	$	2,022

The allowance for credit losses on our held-to-maturity securities was estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities. The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities. As of June 30, 2022, no other-than-temporary impairment was recorded on our held-to-maturity securities.

We recorded interest income (including the amortization of discount) related to these investments of $5.1 million and $10.3 million during the three and six months ended June 30, 2022, respectively, and $3.1 million and $6.0 million during the three and six months ended June 30, 2021, respectively.

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Investments in Equity Affiliates

6 Months Ended

Jun. 30, 2022

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 these investments is as follows (in thousands):

					UPB of Loans to
	Investments in Equity Affiliates at				Equity Affiliates at
Equity Affiliates	June 30, 2022		December 31, 2021		June 30, 2022
Arbor Residential Investor LLC	$	56,916	$	65,756	$	—
AMAC Holdings III LLC		17,243		13,772		—
Fifth Wall Ventures		11,465		5,409		—
North Vermont Avenue		2,461		2,419		—
Lightstone Value Plus REIT L.P.		1,895		1,895		—
Docsumo Pte. Ltd.		450		—		—
JT Prime		425		425		—
West Shore Café		—		—		1,688
Lexford Portfolio		—		—		—
East River Portfolio		—		—		—
Total	$	90,855	$	89,676	$	1,688

Arbor Residential Investor LLC (“ARI”). During the three and six months ended June 30, 2022, we recorded income of $1.1 million and $6.1 million, respectively, and during the three and six months ended June 30, 2021, we recorded income of $4.8 million and $27.3 million, respectively, to income from equity affiliates in our consolidated statements of income. During the three and six months ended June 30, 2022, we also received cash distributions totaling $7.5 million and $15.0 million, respectively, and during the three and six months ended June 30, 2021, we received cash distributions totaling $5.6 million and $18.7 million from this investment, respectively, which were classified as returns of capital. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% as of June 30, 2022.

AMAC Holdings III LLC (“AMAC III”). We funded an additional $4.9 million during 2022. During the three and six months ended June 30, 2022, we recorded a loss associated with this investment of $0.6 million and $1.1 million, respectively.

Fifth Wall Ventures (“Fifth Wall”). We funded an additional $6.9 million during 2022. In addition, during the three months ended June 30, 2022, we received a distribution from this investment of $0.9 million, which was classified as a return of capital.

Docsumo Pte. Ltd. (“Docsumo”). During 2022, we invested $0.5 million for a noncontrolling interest in Docsumo, a startup company that converts unstructured documents, such as bank statements and pay stubs, to accurate structured data and checks documents for fraud, such as photoshopped layers and font changes, using artificial intelligence.

Lexford Portfolio. During the three months ended June 30, 2022, we received distributions of $6.0 million from this equity investment, which was recognized as income from equity affiliates.

Equity Participation Interest. During the first quarter of 2022, we received $2.6 million from an equity participation interest on a property that was sold and which we had a preferred equity loan that previously paid-off.

See Note 17 for details of certain investments described above.

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Debt Obligations

6 Months Ended

Jun. 30, 2022

Debt Obligations

Debt Obligations

Note 9 — Debt Obligations

Credit and Repurchase Facilities

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

				June 30, 2022						December 31, 2021
			Note	Debt		Collateral				Debt		Collateral
	Current	Extended	Rate	Carrying		Carrying		Wtd. Avg.		Carrying		Carrying
	Maturity	Maturity	Type	Value (1)		Value		Note Rate		Value (1)		Value
Structured Business
$2.5B joint repurchase facility (2)	Mar. 2024	Mar. 2025	V	$	1,883,227	$	2,381,351	4.16	%	$	1,486,380	$	1,877,930
$1B repurchase facility (2)	Mar. 2023	N/A	V		724,010		997,641	3.78	%		675,415		937,880
$500M repurchase facility	(3)	N/A	V		—		—	—			—		—
$450M repurchase facility	Mar. 2023	Mar. 2026	V		374,675		487,156	3.64	%		397,272		511,269
$450M repurchase facility	Oct. 2023	Oct. 2024	V		280,199		367,285	3.55	%		293,700		385,337
$399M repurchase facility (2) (4)	Dec. 2022	N/A	V		362,629		487,685	3.80	%		241,450		289,956
$225M credit facility	Oct. 2023	Oct. 2024	V		56,637		87,537	4.08	%		27,826		42,270
$200M repurchase facility	Mar. 2024	Mar. 2025	V		7,011		18,153	4.11	%		—		—
$200M repurchase facility	Jan. 2024	Jan. 2025	V		179,374		225,538	3.55	%		—		—
$200M credit facility	July 2023	N/A	V		64,361		81,577	3.16	%		177,406		236,538
$97.4M loan specific credit facilities	May 2023 to Oct. 2024	N/A	V/F		97,306		137,700	4.07	%		153,727		214,300
$50M credit facility (5)	July 2022	N/A	V		29,200		36,500	3.84	%		29,194		36,500
$35M working capital facility	Apr. 2023	N/A	V		—		—	—			—		—
$25M credit facility	Oct. 2022	N/A	V		6,131		7,745	4.35			1,235		1,900
$25M credit facility	Oct. 2022	Oct. 2023	V		3,192		3,902	4.09	%		10,218		14,773
$1M master security agreement	Dec. 2022	N/A	F		321		—	4.01	%		635		—
Repurchase facility - securities (2)	N/A	N/A	V		25,634		—	4.39	%		30,849		—
Structured Business total				$	4,093,907	$	5,319,770	3.93	%	$	3,525,307	$	4,548,653
Agency Business
$750M ASAP agreement	N/A	N/A	V	$	108,220	$	108,877	2.23	%	$	182,130	$	182,140
$500M joint repurchase facility (2)	Mar. 2024	Mar. 2025	V		77,572		100,348	2.80	%		395,317		475,360
$500M repurchase facility	Nov. 2022	N/A	V		197,249		197,293	3.16	%		236,429		236,527
$200M credit facility	Mar. 2023	N/A	V		56,228		56,376	2.96	%		115,304		115,351
$150M credit facility	July 2023	N/A	V		14,396		14,396	2.96	%		16,544		16,657
$50M credit facility	Sept. 2022	N/A	V		1,065		1,065	3.09	%		9,295		9,295
$1M repurchase facility (2) (4)	Dec. 2022	N/A	V		823		953	3.87	%		1,253		1,477
Agency Business total				$	455,553	$	479,308	2.85	%	$	956,272	$	1,036,807
Consolidated total				$	4,549,460	$	5,799,078	3.82	%	$	4,481,579	$	5,585,460

V = Variable Note Rate; F = Fixed Note Rate

(1) The debt carrying value for the Structured Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $8.7 million and $7.7 million, respectively. The debt carrying value for the Agency Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $3.2 million and $4.4 million, respectively.

(2) These facilities are subject to margin call provisions associated with changes in interest spreads. At June 30, 2022 and December 31, 2021, the repurchase facility - securities were collateralized by B Piece bonds with a carrying value of $37.5 million and $47.6 million, respectively.

(3) The commitment amount under this repurchase facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans.

(4) A portion of this facility was used to finance a $1.0 million fixed rate SFR permanent loan reported through our Agency Business.

(5) We are currently in negotiations with this lender to extend the facility.

During the first half of 2022, several of our credit and repurchase facilities, in both our Structured Business and Agency Business, converted from a LIBOR-based interest rate to a SOFR-based interest rate for new financings. Existing financings generally remain at a LIBOR-based interest rate.

Joint Repurchase Facility. We amended this facility twice in the second quarter of 2022. The facility size was increased from $2.50 billion to $3.00 billion, is shared between the Structured Business and the Agency Business and is used to finance both structured and Private Label loans. The interest rate under the facility is determined on a loan-by-loan basis and may include a floor equal to a pro rata share of the floors included in our originated loans. The facility has a maximum advance rate of 80% on all loans and has a $150.0 million over advance available that bears interest at a rate of the applicable benchmark plus 7.00%. The over advance is available through March 2023 and is being amortized on a monthly basis through its expiration. If the estimated market value of the loans financed in this facility decrease, we may be required to pay down borrowings under this facility.

Structured Business

At June 30, 2022 and December 31, 2021, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 4.24% and 2.51%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facilities, working capital facility and the master security agreement used to finance leasehold and capital expenditure improvements at our corporate office, was 77% at both June 30, 2022 and December 31, 2021.

In June 2022, we entered into a $500.0 million repurchase facility that has an interest rate of SOFR plus 2.76% and a maximum advance rate of 82.5%.

In April 2022, we amended our $325.0 million repurchase facility to increase the facility size to $450.0 million, extend the maturity to October 2023 and amend the interest rate for new loans after December 31, 2021 to daily SOFR or term SOFR at our election at loan inception.

In April 2022, we amended our $30.0 million working capital facility to increase the facility size to $35.0 million, extend the maturity to April 2023 and amend the interest rate from a LIBOR-based rate to SOFR plus 3.00%.

In March 2022, we entered into a $200.0 million repurchase facility that matures in March 2024, with a one year extension option. This facility has an interest rate of SOFR plus 2.55% and an advance rate equal to the lessor of: (1) 75% of the principal balance; (2) 60% of the project cost; or (3) 60% of the underlying property value.

In January 2022, we entered into a $150.0 million repurchase facility to finance bridge and construction loans that matures in January 2024, with a one year extension option. This facility has interest rates of SOFR plus 1.75% to 3.50% depending on the type of loan financed with a SOFR floor determined on a loan by loan basis and a maximum advance rate of 80%. In March 2022, we increased the facility by $50.0 million to $200.0 million.

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):

	Debt						Collateral (3)
							Loans				Cash
			Carrying		Wtd. Avg.				Carrying		Restricted
June 30, 2022	Face Value		Value (1)		Rate (2)		UPB		Value		Cash (4)
CLO 19	$	872,812	$	865,734	3.91	%	$	949,974	$	944,124	$	60,448
CLO 18		1,652,812		1,644,623	3.35	%		1,945,841		1,935,490		—
CLO 17		1,714,125		1,706,612	3.52	%		1,950,220		1,941,438		70,750
CLO 16		1,237,500		1,230,942	3.14	%		1,357,413		1,351,490		93,500
CLO 15		674,412		670,616	3.20	%		744,694		741,567		59,061
CLO 14		655,475		651,772	3.16	%		729,933		727,220		30,077
CLO 13		668,000		665,612	3.25	%		714,062		712,425		67,552
CLO 12		534,193		532,584	3.33	%		523,068		521,893		102,943
Total CLOs	$	8,009,329	$	7,968,495	3.38	%	$	8,915,205	$	8,875,647	$	484,331

December 31, 2021
CLO 17	$	1,714,125	$	1,705,549	1.81	%	$	1,914,280	$	1,903,997	$	118,520
CLO 16		1,237,500		1,230,093	1.44	%		1,444,573		1,436,743		—
CLO 15		674,412		669,723	1.49	%		785,761		782,682		15,750
CLO 14		655,475		650,947	1.45	%		717,396		715,154		53,342
CLO 13		668,000		665,006	1.54	%		740,369		738,265		48,543
CLO 12		534,193		531,939	1.62	%		557,249		555,974		35,635
CLO 10		441,000		439,553	1.57	%		485,460		483,995		57,706
Total CLOs	$	5,924,705	$	5,892,810	1.59	%	$	6,645,088	$	6,616,810	$	329,496

(1) Debt carrying value is net of $40.8 million and $31.9 million of deferred financing fees at June 30, 2022 and December 31, 2021, respectively.

(2) At June 30, 2022 and December 31, 2021, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.59% and 1.86%, respectively.

(3) At June 30, 2022 and December 31, 2021, there were no collateral deemed a “credit risk” as defined by the CLO indentures.

(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 $283.1 million and $133.7 million at June 30, 2022 and December 31, 2021, respectively.

CLO 19. In May 2022, we completed CLO 19, issuing nine tranches of CLO notes through a wholly-owned subsidiary totaling $1.05 billion. Of the total CLO notes issued, $872.8 million were investment grade notes issued to third-party investors and $177.2 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 $976.9 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two-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 $73.1 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, resulting in the issuer owning loan obligations with a face value of $1.05 billion, representing leverage of 83%. The notes sold to third parties had an initial weighted average interest rate of 2.36% plus term SOFR and interest payments on the notes are payable monthly.

CLO 18. In February 2022, we completed CLO 18, issuing eight tranches of CLO notes through two wholly-owned subsidiaries totaling $1.86 billion. Of the total CLO notes issued, $1.65 billion were investment grade notes issued to third-party investors and $210.1 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 $1.70 billion, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate two-and-a-half-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 $347.3 million for the purpose of acquiring additional loan obligations for a period of up to 180 days from the CLO closing date, resulting in the issuer owning loan obligations with a face value of $2.05 billion, representing leverage of 81%. We retained a residual interest in the portfolio with a notional amount of $397.2 million, including the $210.1 million below investment grade notes. The notes sold to third parties had an initial weighted average interest rate of 1.81% plus compounded SOFR and interest payments on the notes are payable monthly.

CLO 10. In February 2022, we unwound CLO 10, redeeming $441.0 million of outstanding notes which were repaid primarily from the refinancing of the remaining assets within CLO 18, as well as with cash held by CLO 10, and expensed $1.4 million of deferred financing fees into loss on extinguishment of debt on the consolidated statements of income.

Senior Unsecured Notes

A summary of our senior unsecured notes is as follows (in thousands):

Senior			June 30, 2022						December 31, 2021
Unsecured	Issuance				Carrying		Wtd. Avg.				Carrying		Wtd. Avg.
Notes	Date	Maturity	UPB		Value (1)		Rate (2)		UPB		Value (1)		Rate (2)
5.00% Notes (3)	Dec. 2021	Dec. 2028	$	180,000	$	177,238	5.00	%	$	180,000	$	177,105	5.00	%
4.50% Notes (3)	Aug. 2021	Sept. 2026		270,000		266,509	4.50	%		270,000		266,090	4.50	%
5.00% Notes (3)	Apr. 2021	Apr. 2026		175,000		172,605	5.00	%		175,000		172,302	5.00	%
8.00% Notes (3)	Apr. 2020	Apr. 2023		70,750		70,407	8.00	%		70,750		70,202	8.00	%
4.50% Notes (3)	Mar. 2020	Mar. 2027		275,000		272,718	4.50	%		275,000		272,477	4.50	%
4.75% Notes (4)	Oct. 2019	Oct. 2024		110,000		109,190	4.75	%		110,000		109,018	4.75	%
5.75% Notes (4)	Mar. 2019	Apr. 2024		90,000		89,321	5.75	%		90,000		89,135	5.75	%
5.625% Notes (4)	Mar. 2018	May 2023		125,000		124,510	5.63	%		125,000		124,216	5.63	%
			$	1,295,750	$	1,282,498	5.05	%	$	1,295,750	$	1,280,545	5.05	%

(1) At June 30, 2022 and December 31, 2021, the carrying value is net of deferred financing fees of $13.3 million and $15.2 million, respectively.

(2) At both June 30, 2022 and December 31, 2021, the aggregate weighted average note rate, including certain fees and costs, was 5.34%.

(3) These notes can be redeemed by us prior to three months before the maturity date, 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 notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

(4) These notes can be redeemed by us at any time prior to the maturity date, 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 notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

Convertible Senior Unsecured Notes

In 2019, we issued $264.0 million in aggregate principal amount of 4.75% convertible senior notes (the “4.75% Convertible Notes”) through a private placement offering. The 4.75% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in November 2022, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 56.1695 shares of common stock per $1,000 of principal representing a conversion price of $17.80 per share of common stock. We received proceeds of $256.5 million, net of the underwriter’s discount and fees, which was being amortized through interest expense until the adoption of ASU 2020-06 on January 1, 2022. At June 30, 2022, the 4.75% Convertible Notes had a conversion rate of 57.3503 shares of common stock per $1,000 of principal, which represented a conversion price of $17.44 per share of common stock.

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. 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.

On January 1, 2022, we adopted ASU 2020-06, see Note 2 for details, which no longer allows for the allocation of proceeds between debt and equity components, eliminates the amortization of the debt discount and requires the if-converted method to calculate diluted earnings per share, regardless of the settlement intent.

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

	Liability								Equity
	Component								Component
			Unamortized Debt		Unamortized Deferred		Net Carrying		Net Carrying
Period	UPB		Discount		Financing Fees		Value		Value
June 30, 2022	$	264,000	$	—	$	874	$	263,126	$	—
December 31, 2021	$	264,000	$	2,520	$	2,095	$	259,385	$	8,684

During the three months ended June 30, 2022, we incurred interest expense on the notes totaling $3.8 million, of which $3.1 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. During the six months ended June 30, 2022, we incurred interest expense on the notes totaling $7.6 million, of which $6.3 million and $1.3 million related to the cash coupon and deferred financing fees, respectively. During the three months ended June 30, 2021, we incurred interest expense on the notes totaling $4.8 million, of which $3.3 million, $0.8 million and $0.7 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. During the six months ended June 30, 2021, we incurred total interest expense on the notes of $9.6 million, of which $6.6 million, $1.6 million and $1.4 million related to the cash coupon, amortization of the debt discount and of the deferred financing fees, respectively. Including the amortization of the deferred financing fees and debt discount, our weighted average total cost of the notes was 5.73% and 6.71% at June 30, 2022 and December 31, 2021, respectively, or 5.73% at December 31, 2021 excluding the amortization of the debt discount (which ceased on January 1, 2022 with the adoption of ASU 2020-06).

Junior Subordinated Notes

The carrying values of borrowings under our junior subordinated notes were $142.8 million and $142.4 million at June 30, 2022 and December 31, 2021, respectively, which is net of a deferred amount of $9.9 million and $10.2 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.6 million and $1.7 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate based on LIBOR. The weighted average note rate was 5.13% and 3.03% at June 30, 2022 and December 31, 2021, respectively. Including certain fees and costs, the weighted average note rate was 5.21% and 3.12% at June 30, 2022 and December 31, 2021, respectively.

Debt Covenants

Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt (senior and convertible notes) contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset 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 June 30, 2022.

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 June 30, 2022, as well as on the most recent determination dates in July 2022. 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 (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) 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 July 2022 are as follows:

Cash Flow Triggers	CLO 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
Overcollateralization (1)
Current	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
Limit	117.87	%	118.76	%	118.76	%	119.85	%	120.21	%	121.51	%	123.03	%	119.30	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass		Pass		Pass		Pass
Interest Coverage (2)
Current	253.59	%	234.87	%	226.47	%	226.54	%	216.65	%	186.01	%	217.98	%	132.93	%
Limit	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%
Pass / Fail	Pass		Pass		Pass		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 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
July 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
April 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	—
January 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	—		—
October 2021	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	—		—		—
July 2021	118.87	%	119.76	%	119.76	%	120.85	%	—		—		—		—

(1) This table 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.

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Allowance for Loss-Sharing Obligations

6 Months Ended

Jun. 30, 2022

Allowance for Loss-Sharing Obligations

Allowance for Loss-Sharing Obligations

Note 10 — 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Beginning balance	$	55,172	$	65,893	$	56,064	$	64,303
Provisions for loss sharing		114		716		247		2,464
Provisions reversal for loan repayments		(2,063)		(167)		(2,858)		(263)
Charge – offs, net		(170)		(797)		(400)		(859)
Ending balance	$	53,053	$	65,645	$	53,053	$	65,645

When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At June 30, 2022 and 2021, guarantee obligations of $34.3 million and $34.5 million, respectively, were included in the allowance for loss-sharing obligations.

In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The current expected loss related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio.

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 June 30, 2022 and December 31, 2021, we had outstanding advances of $0.4 million and less than $0.1 million, respectively, which were netted against the allowance for loss-sharing obligations.

At June 30, 2022 and December 31, 2021, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $18.7 million and $21.7 million, respectively, and represented 0.10% and 0.11%, respectively, of our Fannie Mae servicing portfolio. During the three and six months ended June 30, 2022, we recorded a $2.1 million and a $2.9 million, respectively, decrease in CECL reserves, which included a $1.2 million recovery for a loan that paid off during the second quarter of 2022.

At June 30, 2022 and December 31, 2021, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $3.47 billion and $3.60 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.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Financial Instruments

Derivative Financial Instruments

Note 11 — 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 and credit risk. We do not use these derivatives for speculative purposes, but are instead using them to manage our interest rate and credit risk exposure.

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 simultaneously 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 gain (loss) on derivative instruments, 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 six months ended June 30, 2022, we recorded net gains of $5.0 million and $2.4 million, respectively, from changes in the fair value of these derivatives and $17.6 million and $32.9 million, respectively, of income from MSRs. During the three and six months ended June 30,2021, we recorded net gains of $9.9 million and $1.2 million, respectively, from changes in the fair value of these derivatives and $26.3 million and $63.2 million, respectively, of income from MSRs. The gains and losses are recorded in gain (loss) on derivative instruments, net. See Note 12 for details.

Interest Rate and Credit Default Swaps (“Swaps”). We enter into over-the-counter swaps to hedge our interest rate and credit risk exposure inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale and securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our interest rate swaps typically have a three-month maturity and are tied to the five-year and ten-year swap rates. Our credit default swaps typically have a five-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. The Swaps do not meet the criteria for hedge accounting, 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 months ended June 30, 2022, we recorded realized gains and unrealized losses of $5.7 million and $2.0 million, respectively, to our Agency Business related to our Swaps. During the six months ended June 30, 2022, we recorded realized gains and unrealized losses of $23.6 million and less than $0.1 million, respectively, to our Agency Business related to our Swaps. During the three months ended June 30, 2021, we recorded realized and unrealized losses of $9.4 million and $3.0 million, respectively, to our Agency Business related to our Swap Futures. During the six months ended June 30, 2021, we recorded realized and unrealized losses of $6.5 million and $0.4 million, respectively, to our Agency Business related to our Swap Futures. The realized and unrealized gains and losses are recorded in gain (loss) on derivative instruments, net.

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

	June 30, 2022
					Fair Value
		Notional		Balance Sheet	Derivative		Derivative
Derivative	Count	Value		Location	Assets		Liabilities
Rate lock commitments	7	$	62,971	Other assets/other liabilities	$	1,035	$	(1,091)
Forward sale commitments	42		440,979	Other assets/other liabilities		3,933		(504)
Swaps	1,017		101,700			—		—
		$	605,650		$	4,968	$	(1,595)

	December 31, 2021
Rate lock commitments	2	$	11,250	Other assets/other liabilities	$	295	$	(33)
Forward sale commitments	55		571,220	Other assets/other liabilities		1,370		(1,449)
Swaps	3,882		388,200			—		—
		$	970,670		$	1,665	$	(1,482)

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Fair Value

6 Months Ended

Jun. 30, 2022

Fair Value

Fair Value

Note 12 — 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):

	June 30, 2022						December 31, 2021
	Principal /		Carrying		Estimated		Principal /		Carrying		Estimated
	Notional Amount		Value		Fair Value		Notional Amount		Value		Fair Value
Financial assets:
Loans and investments, net	$	15,033,811	$	14,832,302	$	15,027,449	$	12,158,995	$	11,981,048	$	12,181,194
Loans held-for-sale, net		519,118		518,935		527,296		1,077,239		1,093,609		1,117,085
Capitalized mortgage servicing rights, net		n/a		411,534		491,853		n/a		422,734		477,323
Securities held-to-maturity, net		240,290		159,686		158,716		210,728		140,484		149,911
Derivative financial instruments		419,571		4,968		4,968		280,654		1,665		1,665
Financial liabilities:
Credit and repurchase facilities	$	4,561,393	$	4,549,460	$	4,548,205	$	4,493,699	$	4,481,579	$	4,484,107
Collateralized loan obligations		8,009,329		7,968,495		7,731,113		5,924,705		5,892,810		5,914,453
Senior unsecured notes		1,295,750		1,282,498		1,179,563		1,295,750		1,280,545		1,301,708
Convertible senior unsecured notes, net		264,000		263,126		262,350		264,000		259,385		294,690
Junior subordinated notes		154,336		142,758		102,839		154,336		142,382		101,698
Derivative financial instruments		84,379		1,595		1,595		301,816		1,482		1,482

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

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 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 (Level 3). Fair values of impaired loans and investments are estimated using 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 (Level 3).

Loans held-for-sale, net. Consists of originated loans that are generally expected to be transferred or sold within 60 days to 180 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 inputs based on discounted future net cash flow methodology (Level 3). 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 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 (Level 3).

Derivative financial instruments. 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 and repurchase facilities. Fair values for credit and repurchase facilities of the Structured Business are estimated 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 (Level 3). The majority of our credit and repurchase facilities for the Agency Business bear interest at rates that are similar to those available in the market currently and fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values.

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

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

Convertible senior unsecured notes, net. Fair values are estimated using current market quotes received from inactive markets (Level 2).

We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels as of June 30, 2022 (in thousands):

					Fair Value Measurements Using Fair
	Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Derivative financial instruments	$	4,968	$	4,968	$	—	$	3,933	$	1,035
Financial liabilities:
Derivative financial instruments	$	1,595	$	1,595	$	—	$	1,595	$	—

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, are determined using the following input levels as of June 30, 2022 (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
Loans held-for-investment (1)	$	61,745	$	61,745	$	—	$	—	$	61,745
Loans held-for-sale (2)		101,622		101,622		—		101,622		—
	$	163,367	$	163,367	$	—	$	101,622	$	61,745

(1) We had an allowance for credit losses of $85.4 million relating to seven impaired loans with an aggregate carrying value, before loan loss reserves, of $147.1 million at June 30, 2022.

(2) We recorded an impairment loss of $4.1 million related to five impaired loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $106.0 million.

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 credit 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 all amounts due for both principal and interest will not be collected 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 credit losses, or an impairment loss. 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.

Loans held-for-sale are generally transferred and sold within 60-180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans 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.

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 June 30, 2022 is as follows ($ in thousands):

	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Financial assets:
Impaired loans:
Land	$	50,000	Discounted cash flows	Discount rate	21.50	%
				Revenue growth rate	3.00	%
				Discount rate	11.25	%
Retail		11,745	Discounted cash flows	Capitalization rate	9.25	%
				Revenue growth rate	3.00	%
Derivative financial instruments:
Rate lock commitments		1,035	Discounted cash flows	W/A discount rate	12.26	%

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 is as follows (in thousands):

	Fair Value Measurements Using				Fair Value Measurements Using
	Significant Unobservable Inputs				Significant Unobservable Inputs
	for the Three Months Ended June 30,				for the Six Months Ended June 30,
	2022		2021		2022		2021
Derivative assets and liabilities, net
Beginning balance	$	1,355	$	1,439	$	295	$	1,967
Settlements		(17,254)		(23,045)		(30,937)		(58,074)
Realized gains recorded in earnings		15,899		21,606		30,642		56,107
Unrealized gains recorded in earnings		1,035		124		1,035		124
Ending balance	$	1,035	$	124	$	1,035	$	124

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 are as follows (in thousands):

							Unrealized
	Notional/		Fair Value of		Interest Rate		Impairemnt		Total Fair Value
June 30, 2022	Principal Amount		Servicing Rights		Movement Effect		Loss		Adjustment
Rate lock commitments	$	62,971	$	1,035	$	515	$	—	$	1,550
Forward sale commitments		440,979		—		(515)		—		(515)
Loans held-for-sale, net (1)		519,118		7,431		—		(4,380)		3,051
Total			$	8,466	$	—	$	(4,380)	$	4,086

(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 are determined using the following input levels as of June 30, 2022 (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	$	14,832,302	$	15,027,449	$	—	$	—	$	15,027,449
Loans held-for-sale, net		518,935		527,296		—		519,865		7,431
Capitalized mortgage servicing rights, net		411,534		491,853		—		—		491,853
Securities held-to-maturity, net		159,686		158,716		—		—		158,716
Financial liabilities:
Credit and repurchase facilities	$	4,549,460	$	4,548,205	$	—	$	455,553	$	4,092,652
Collateralized loan obligations		7,968,495		7,731,113		—		—		7,731,113
Senior unsecured notes		1,282,498		1,179,563		1,179,563		—		—
Convertible senior unsecured notes, net		263,126		262,350		—		262,350		—
Junior subordinated notes		142,758		102,839		—		—		102,839

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Commitments and Contingencies

Note 13 — Commitments and Contingencies

Impact of COVID-19. The magnitude and duration of COVID-19 and its impact on our business and on our borrowers is uncertain and will mostly depend on future events, which cannot be predicted. As this pandemic continues and if economic conditions deteriorate, it may have long-term impacts on our financial position, results of operations and cash flows. See Note 2 and Item 1A. Risk Factors of our 2021 Annual Report for further discussion of COVID-19.

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 June 30, 2022, we were required to maintain at least $18.2 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 June 30, 2022, we met the restricted liquidity requirement with a $45.0 million letter of credit and $18.9 million of cash collateral.

As of June 30, 2022, reserve requirements for the Fannie Mae DUS loan portfolio will require us to fund $37.7 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 June 30, 2022, 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 and FHA, as 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 more detail in Note 11 and Note 12.

Debt Obligations and Operating Leases. As of June 30, 2022, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands):

			Minimum Annual
	Debt		Operating Lease
Year	Obligations		Payments		Total
2022 (six months ending December 31, 2022)	$	1,577,515	$	4,204	$	1,581,719
2023		2,404,359		8,468		2,412,827
2024		3,585,363		8,214		3,593,577
2025		1,638,303		8,268		1,646,571
2026		4,120,591		8,292		4,128,883
2027		598,707		6,841		605,548
Thereafter		359,970		23,373		383,343
Total	$	14,284,808	$	67,660	$	14,352,468

During both the three months ended June 30, 2022 and 2021, we recorded lease expense of $2.4 million, and during both the six months ended June 30, 2022 and 2021, we recorded lease expense of $4.7 million.

Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $1.22 billion at June 30, 2022 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 was removed to the Bankruptcy Court. Currently, there is just a single case in Bankruptcy Court.

The lawsuits all alleged, 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 named 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, 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. The Trust also alleges 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, 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, (1) consolidate the lawsuits into one lawsuit, (2) remove 47 defendants from the lawsuits, none of whom are related to us, so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (3) reduce the counts within the lawsuits from over 100 down to 17.

The remaining counts in the Trust’s 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 to amend 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 moved to dismiss the referenced remaining actions in December 2013.

After supplemental briefing and multiple adjourned conferences, in August 2020, the Court issued a decision granting our motion to dismiss in part, dismissing 9 of the 17 counts. The Court permitted claims against director designees to proceed on theories of authorization of illegal dividends and breach of fiduciary duty. The Court permitted claims against the defendant entities, including our affiliated entities, to proceed on theories of constructive fraudulent transfer and fraudulent transfer under state and federal law. Moreover, the Court affirmatively dismissed four counts against the defendant entities to the extent they are based on distributions from certain so-called LIBOR Floor Certificates. According to the amended complaint, the total LIBOR Floor Certificate transfers were $74.0 million in value. As a result, with what remains of the amended complaint, total possible liability against the affiliated entities has correspondingly fallen, whereas total possible liability against the director designees remains at approximately $139.0 million.

The parties have stipulated to a schedule for discovery and we intend to vigorously defend against the remaining claims. 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.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Variable Interest Entities

Variable Interest Entities

Note 14 — 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 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 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 to third parties by the CLOs, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the CLOs as opposed to our net economic interests in those entities.

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

	June 30, 2022		December 31, 2021
Assets:
Restricted cash	$	767,432	$	466,523
Loans and investments, net		8,875,647		6,616,809
Other assets		71,297		61,474
Total assets	$	9,714,376	$	7,144,806
Liabilities:
Collateralized loan obligations	$	7,968,495	$	5,892,810
Other liabilities		17,755		9,813
Total liabilities	$	7,986,250	$	5,902,623

Assets held by the CLOs are restricted and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to us and can only be satisfied from each respective asset pool. See Note 9 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.

Unconsolidated VIEs. We determined that we are not the primary beneficiary of 30 VIEs in which we have a variable interest at June 30, 2022 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, at June 30, 2022 is as follows (in thousands):

Type	Carrying Amount (1)
Loans	$	473,161
APL certificates		123,978
B Piece bonds		37,730
Equity investments		24,073
Agency interest only strips		339
Total	$	659,281

(1) Represents the carrying amount of loans and investments before reserves. At June 30, 2022, $127.9 million of loans to VIEs had corresponding specific loan loss reserves of $77.9 million. The maximum loss exposure as of June 30, 2022 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $4.43 billion at June 30, 2022.

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Equity

6 Months Ended

Jun. 30, 2022

Equity

Equity

Note 15 — Equity

Preferred Stock. In the first quarter of 2022, we completed a public offering of an additional 3,292,000 shares of 6.25% Series F fixed-to-floating rate cumulative redeemable preferred stock generating net proceeds of $77.1 million after deducting the underwriting discount and other offering expenses. The additional shares issued have the same terms as the original issuance completed in October 2021.

Common Stock. During the six months ended June 30, 2022, we sold 8,980,100 shares of our common stock for net proceeds of $144.4 million through an “At-The-Market” equity offering sales agreement.

In March 2022, we completed a public offering of 7,475,000 shares of our common stock (including the full exercise of the overallotment) for $16.57 per share and received net proceeds of $123.7 million after deducting the underwriter’s discount and other offering expenses.

The proceeds from the offerings above were used to make investments related to our business and for general corporate purposes.

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 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. At June 30, 2022, there were 16,293,589 OP Units outstanding, which represented 8.8% of the voting power of our outstanding stock.

Distributions. Dividends declared (on a per share basis) during the six months ended June 30, 2022 are as follows:

Common Stock			Preferred Stock
				Dividend
Declaration Date	Dividend		Declaration Date	Series D		Series E		Series F
February 16, 2022	$	0.37	January 3, 2022	$	0.3984375	$	0.390625	$	0.46875
May 4, 2022	$	0.38	April 1, 2022	$	0.3984375	$	0.390625	$	0.390625

Common Stock – On July 27, 2022, the Board of Directors declared a cash dividend of $0.39 per share of common stock. The dividend is payable on August 31, 2022 to common stockholders of record as of the close of business on August 15, 2022.

Preferred Stock – On July 1, 2022, the Board of Directors declared cash dividends of $0.3984375 per share of Series D preferred stock and $0.390625 per share of both Series E and Series F preferred stock. These amounts reflect dividends from April 30, 2022 through July 29, 2022 and are payable on August 1, 2022 to preferred stockholders of record on July 15, 2022.

Deferred Compensation. During 2022, we issued 591,367 shares of restricted common stock to our employees and Board of Directors under the 2020 Amended Omnibus Stock Incentive Plan (the “2020 Plan”) with a total grant date fair value of $10.2 million, of which: (1) 205,389 shares with a grant date fair value of $3.5 million were fully vested on the grant date; (2) 201,014 shares with a grant date fair value of $3.5 million will vest in 2023; (3) 165,075 shares with a grant date fair value of $2.8 million will vest in 2024; (4) 9,951 shares with a grant date fair value of $0.2 million will vest in 2025; and (5) 9,938 shares with a grant date fair value of $0.2 million will vest in 2026. We also issued 25,012 of fully vested restricted stock units (“RSUs”) with a grant date fair value of $0.4 million to certain members of our Board of Directors and 189,873 RSUs with a grant date fair value of $3.3 million that vest in full in the first quarter of 2025 to our chief executive officer. The individuals decided to defer the receipt of the common stock, to which the RSUs are converted into, to a future date.

During the first quarter of 2022, 381,503 shares of performance-based restricted stock units previously granted to our chief executive officer fully vested and were net settled for 186,772 common shares.

During 2022, we withheld 130,770 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

Earnings Per Share (“EPS”). Basic EPS is calculated by dividing net income (loss) 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 (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of 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 June 30,
	2022				2021
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	69,909	$	69,909	$	69,126	$	69,126
Net income attributable to noncontrolling interest (2)		—		6,992		—		8,717
Interest expense on convertible notes (3)		—		3,995		—		—
Net income attributable to common stockholders and noncontrolling interest	$	69,909	$	80,896	$	69,126	$	77,843
Weighted average shares outstanding		163,044,217		163,044,217		135,262,197		135,262,197
Dilutive effect of OP Units (2)		—		16,306,745		—		17,056,229
Dilutive effect of restricted stock units (3)		—		522,367		—		929,734
Dilutive effect of convertible notes (4)		—		15,140,481		—		368,431
Weighted average shares outstanding		163,044,217		195,013,810		135,262,197		153,616,591
Net income per common share (1)	$	0.43	$	0.41	$	0.51	$	0.51

	Six Months Ended June 30,
	2022				2021
Net income attributable to common stockholders (1)	$	133,968	$	133,968	$	138,606	$	138,606
Net income attributable to noncontrolling interest (2)		—		13,808		—		18,459
Interest expense on convertible notes (3)		—		7,989		—		—
Net income attributable to common stockholders and noncontrolling interest	$	133,968	$	155,765	$	138,606	$	157,065
Weighted average shares outstanding		158,258,813		158,258,813		130,276,499		130,276,499
Dilutive effect of OP Units (2)		—		16,315,869		—		17,307,037
Dilutive effect of restricted stock units (3)		—		655,489		—		921,187
Dilutive effect of convertible notes (4)		—		15,126,859		—		313,307
Weighted average shares outstanding		158,258,813		190,357,030		130,276,499		148,818,030
Net income per common share (1)	$	0.85	$	0.82	$	1.06	$	1.06

(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) Our chief executive officer was granted restricted stock units during 2020, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

(4) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior unsecured notes impacted diluted earnings per share if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. See Note 2 for details.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes

Income Taxes

Note 16 — 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 six months ended June 30, 2022, we recorded a tax provision of $5.4 million and $13.5 million, respectively. In the three and six months ended June 30, 2021, we recorded a tax provision of $11.0 million and $23.5 million, respectively. The tax provision recorded in the three months ended June 30, 2022 consisted of a current tax provision of $6.1 million and a deferred tax benefit of $0.7 million. The tax provision recorded in the six months ended June 30, 2022 consisted of a current tax provision of $15.9 million and a deferred tax benefit of $2.4 million. The tax provision recorded in the three months ended June 30, 2021 consisted of a current tax provision of $11.0 million and a deferred tax benefit of less than $0.1 million. The tax provision recorded in the six months ended June 30, 2021 consisted of a current and deferred tax provision of $19.0 million and $4.5 million. 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.

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Agreements and Transactions with Related Parties

6 Months Ended

Jun. 30, 2022

Agreements and Transactions with Related Parties

Agreements and Transactions with Related Parties

Note 17 — Agreements and Transactions with Related Parties

Support Agreement and Employee Secondment Agreement. We have a support agreement and a secondment agreement with ACM and certain of its affiliates and certain affiliates of a relative of our chief executive officer (“Service Recipients”) where we provide support services and seconded employees to the Service Recipients. The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees. During the three and six months ended June 30, 2022, we incurred $0.9 million and $1.7 million, respectively, and, during the three and six months ended June 30, 2021, we incurred $0.8 million and $1.6 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which were reimbursed to us and included in due from related party on the consolidated balance sheets.

Other Related Party Transactions. Due from related party was $53.0 million and $84.3 million at June 30, 2022 and December 31, 2021, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of the quarter and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above.

Due to related party was $27.0 million and $26.6 million at June 30, 2022 and December 31, 2021, respectively, and consisted of loan payoffs, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions.

In April 2022, we committed to fund a $67.1 million bridge loan (none of which was funded at June 30, 2022) in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25% equity interest in the borrowing entity. The bridge loan has an interest rate of SOFR plus 4.625% with a SOFR floor of 0.25% and matures in April 2025. Interest income recorded from this loan was $0.1 million for both the three and six months ended June 30, 2022.

In February 2022, we committed to fund a $39.4 million bridge loan (none of which was funded at June 30, 2022) in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 4.00% with a LIBOR floor of 0.25% and matures in March 2025. Interest income recorded from this loan was less than $0.1 million and $0.1 million for the three and six months ended June 30, 2022, respectively.

In December 2021, we invested $4.2 million for 49.3% interest in a limited liability company (“LLC”) which purchased a retail property for $32.5 million and assumed an existing $26.0 million CMBS loan. A portion of the property can potentially be converted to office space, of which we obtain the right to occupy, in part. An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10.0% ownership, is the managing member and holds the right to purchase our interest in the LLC.

In October 2021, we entered into a $40.0 million promissory note with ACM to fund a portion of a $67.0 million bridge loan we originated to a third-party to purchase a multifamily property. The promissory note has an interest rate of LIBOR plus 3.0% and was scheduled to mature in April 2022. In December 2021, the borrower repaid the bridge loan in full and we repaid the promissory note. In December 2021, the promissory note was amended to include the funding of an additional asset, which matured in May 2022 without any additional funding.

In March 2021, we originated a $63.4 million bridge loan to a third-party to purchase a multifamily property from a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members, which fund has no continued involvement with the property following the purchase. The loan has an interest rate of LIBOR plus 3.75% with a LIBOR floor of 0.25% and matures in March 2024. Interest income recorded from this loan was $0.8 million and $1.5 million for the three and six months ended June 30, 2022, respectively, and $0.7 million for both the three and six months ended June 30, 2021.

In 2020, we committed to fund a $32.5 million bridge loan ($6.4 million was funded at June 30, 2022) and made a $3.5 million preferred equity investment in an SFR build-to-rent construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 21.8% equity interest in the borrowing entity. The bridge loan has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75%, the preferred equity investment has a 12.0% fixed rate, and both loans mature in October 2023. Interest income recorded from these loans was $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2021, respectively.

In 2020, we committed to fund a $30.5 million bridge loan and we made a $4.6 million preferred equity investment in a SFR build-to-rent construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project and own an 18.9% equity interest in the borrowing entity. The bridge loan ($9.1 million was funded at June 30, 2022) has an interest rate of LIBOR plus 5.5% with a LIBOR floor of 0.75% and matures in May 2023 and the preferred equity investment has a 12.0% fixed rate and matures in April 2023. Interest income recorded from these loans was $0.3 million and $0.6 million for the three and six months ended June 30, 2022, respectively, and $0.2 million and $0.3 million for the three and six months ended June 30, 2021, respectively.

In 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan 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 Private Label loan bears interest at a 3.1% fixed rate and the mezzanine loan bears interest at a 9.0% fixed rate and both loans mature in April 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from the mezzanine loan was $0.1 million for all periods presented.

In certain instances, our business requires our executives to charter privately owned aircraft in furtherance of our business. We have an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives’ charter. During the six months ended June 30, 2022 and 2021, we reimbursed the aircraft owner $0.7 million and $0.1 million, respectively, for the flights chartered by our executives pursuant the agreement.
​

In 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 sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment ($25.2 million was funded at June 30, 2022) for an 18% interest in AMAC III. During the three and six months ended June 30, 2022, we recorded a loss associated with this investment of $0.6 million and $1.1 million, respectively. In 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower with which we have an outstanding $34.0 million bridge loan. In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property. Also in 2020, the $34.0 million bridge loan was refinanced with a $35.4 million bridge loan, which bears interest at a rate of LIBOR plus 3.5% and matures in August 2022. We also originated a $15.6 million Private Label loan in 2019 to a borrower which is 100% owned by AMAC III, which bears interest at a 3.735% fixed rate and matures in January 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Interest income recorded from these loans totaled $0.4 million and $0.7 million for the three and six months ended June 30, 2022, respectively, and $0.3 million and $0.6 million for the three and six months ended June 30, 2021, respectively.

In 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 0.25% and was scheduled to mature in June 2021, which was extended to August 2023. Interest income recorded from this loan was $0.3 million for both the three months ended June 30, 2022 and 2021 and $0.6 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively.

In 2018, we acquired a $9.4 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 75% of the borrowing entity. The loan has an interest rate of LIBOR plus 5.0% with a LIBOR floor of 1.25% and was scheduled to mature in January 2021, which was extended to January 2022 and, in September 2021, this loan paid off in full. Interest income recorded from this loan was $0.1 million and $0.3 million for the three and six months ended June 30, 2021, 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 had an interest rate of LIBOR plus 5.25% with LIBOR floors ranging from 1.24% to 1.54% and were scheduled to mature in 2020. The borrower refinanced these loans with a $31.1 million bridge loan we originated in 2019 with an interest rate of LIBOR plus 4.0%, a LIBOR floor of 1.8% and a maturity date in October 2021, which was extended to October 2022 and, in May 2022, these loans paid off in full. Interest income recorded from this loan was $0.3 million and $0.8 million for the three and six months ended June 30, 2022, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2021, 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 all periods presented.

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 June 30, 2022. 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 had an interest rate of LIBOR plus 4.5% with a LIBOR floor of 0.25% and were scheduled to mature in 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 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 the mezzanine loan was $0.1 million for all periods presented.

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. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. We recorded income from equity affiliates related to this investment of $1.1 million and $6.1 million in the three and six months ended June 30, 2022, respectively, and $4.8 million and $27.3 million in the three and six months ended June 30, 2021, respectively. During the three and six months ended June 30, 2022, we also received cash distributions totaling $7.5 million and $15.0 million from this investment, respectively, and $5.6 million and $18.7 million during the three and six months ended June 30, 2021, respectively, which were classified as returns of capital.

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 2018, the owners of Lexford restructured part of its debt and we originated 12 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 were originated in 2018, had interest rates of LIBOR plus 4.0% and were scheduled to mature in June 2021. During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million and in 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which bears interest at a 3.3% fixed rate and matures in March 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Further, as part of this 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 a $6.0 million distribution during the three months ended June 30, 2022, which was recorded as income from equity affiliates. Separate from the loans we originated in 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 June 30, 2022, this debt had an aggregate outstanding balance of $608.9 million and is scheduled to mature through 2029.

Several of our executives, including our chief financial officer, senior 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 35% 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. At June 30, 2022, ACM holds 2,535,870 shares of our common stock and 10,634,024 OP Units, which represents 7.1% 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.

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Segment Information

6 Months Ended

Jun. 30, 2022

Segment Information

Segment Information

Note 18 — 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 June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	192,047	$	9,281	$	—	$	201,328
Interest expense		103,165		3,902		—		107,067
Net interest income		88,882		5,379		—		94,261
Other revenue:
Gain on sales, including fee-based services, net		—		16,510		—		16,510
Mortgage servicing rights		—		17,567		—		17,567
Servicing revenue		—		35,493		—		35,493
Amortization of MSRs		—		(14,779)		—		(14,779)
Property operating income		290		—		—		290
Loss on derivative instruments, net		—		8,606		—		8,606
Other income, net		(9,328)		(3,921)		—		(13,249)
Total other revenue		(9,038)		59,476		—		50,438
Other expenses:
Employee compensation and benefits		13,866		25,034		—		38,900
Selling and administrative		6,429		6,759		—		13,188
Property operating expenses		542		—		—		542
Depreciation and amortization		858		1,173		—		2,031
Provision for loss sharing (net of recoveries)		—		(1,949)		—		(1,949)
Provision for credit losses (net of recoveries)		5,088		(21)		—		5,067
Total other expenses		26,783		30,996		—		57,779
Income before income from equity affiliates and income taxes		53,061		33,859		—		86,920
Income from equity affiliates		6,547		—		—		6,547
Provision for income taxes		(255)		(5,097)		—		(5,352)
Net income		59,353		28,762		—		88,115
Preferred stock dividends		11,214		—		—		11,214
Net income attributable to noncontrolling interest		—		—		6,992		6,992
Net income attributable to common stockholders	$	48,139	$	28,762	$	(6,992)	$	69,909

	Three Months Ended June 30, 2021
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	96,498	$	8,650	$	—	$	105,148
Interest expense		42,748		3,630		—		46,378
Net interest income		53,750		5,020		—		58,770
Other revenue:
Gain on sales, including fee-based services, net		—		40,901		—		40,901
Mortgage servicing rights		—		26,299		—		26,299
Servicing revenue		—		29,982		—		29,982
Amortization of MSRs		—		(14,667)		—		(14,667)
Loss on derivative instruments, net		—		(2,607)		—		(2,607)
Other income, net		1,255		8		—		1,263
Total other revenue		1,255		79,916		—		81,171
Other expenses:
Employee compensation and benefits		11,907		31,793		—		43,700
Selling and administrative		5,248		5,885		—		11,133
Property operating expenses		129		—		—		129
Depreciation and amortization		615		1,173		—		1,788
Provision for loss sharing (net of recoveries)		—		549		—		549
Provision for credit losses (net of recoveries)		(8,333)		518		—		(7,815)
Total other expenses		9,566		39,918		—		49,484
Income before income from equity affiliates and income taxes		45,439		45,018		—		90,457
Income from equity affiliates		4,759		—		—		4,759
Provision for income taxes		(682)		(10,277)		—		(10,959)
Net income		49,516		34,741		—		84,257
Preferred stock dividends		6,414		—		—		6,414
Net income attributable to noncontrolling interest		—		—		8,717		8,717
Net income attributable to common stockholders	$	43,102	$	34,741	$	(8,717)	$	69,126

	Six Months Ended June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	348,308	$	19,718	$	—	$	368,026
Interest expense		181,367		8,260		—		189,627
Net interest income		166,941		11,458		—		178,399
Other revenue:
Gain on sales, including fee-based services, net		—		18,166		—		18,166
Mortgage servicing rights		—		32,879		—		32,879
Servicing revenue		—		71,519		—		71,519
Amortization of MSRs		—		(29,750)		—		(29,750)
Property operating income		586		—		—		586
Gain on derivative instruments, net		—		25,992		—		25,992
Other income, net		(6,131)		(3,917)		—		(10,048)
Total other revenue		(5,545)		114,889		—		109,344
Other expenses:
Employee compensation and benefits		29,352		51,573		—		80,925
Selling and administrative		13,838		13,897		—		27,735
Property operating expenses		1,077		—		—		1,077
Depreciation and amortization		1,668		2,346		—		4,014
Provision for loss sharing (net of recoveries)		—		(2,611)		—		(2,611)
Provision for credit losses (net of recoveries)		7,157		269		—		7,426
Total other expenses		53,092		65,474		—		118,566
Income before extinguishment of debt, income from equity affiliates and income taxes		108,304		60,873		—		169,177
Loss on extinguishment of debt		(1,350)		—		—		(1,350)
Income from equity affiliates		13,759		—		—		13,759
Provision for income taxes		(1,687)		(11,853)		—		(13,540)
Net income		119,026		49,020		—		168,046
Preferred stock dividends		20,270		—		—		20,270
Net income attributable to noncontrolling interest		—		—		13,808		13,808
Net income attributable to common stockholders	$	98,756	$	49,020	$	(13,808)	$	133,968

	Six Months Ended June 30, 2021
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	179,708	$	16,584	$	—	$	196,292
Interest expense		80,972		7,590		—		88,562
Net interest income		98,736		8,994		—		107,730
Other revenue:
Gain on sales, including fee-based services, net		—		69,768		—		69,768
Mortgage servicing rights		—		63,235		—		63,235
Servicing revenue		—		59,721		—		59,721
Amortization of MSRs		—		(28,871)		—		(28,871)
Loss on derivative instruments, net		—		(5,828)		—		(5,828)
Other income, net		1,935		8		—		1,943
Total other revenue		1,935		158,033		—		159,968
Other expenses:
Employee compensation and benefits		23,484		63,190		—		86,674
Selling and administrative		9,761		12,186		—		21,947
Property operating expenses		272		—		—		272
Depreciation and amortization		1,197		2,346		—		3,543
Provision for loss sharing (net of recoveries)		—		2,201		—		2,201
Provision for credit losses (net of recoveries)		(9,362)		472		—		(8,890)
Total other expenses		25,352		80,395		—		105,747
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes		75,319		86,632		—		161,951
Loss on extinguishment of debt		(1,370)		—		—		(1,370)
Gain on sale of real estate		—		1,228		—		1,228
Income from equity affiliates		27,010		—		—		27,010
Provision for income taxes		(5,665)		(17,786)		—		(23,451)
Net income		95,294		70,074		—		165,368
Preferred stock dividends		8,303		—		—		8,303
Net income attributable to noncontrolling interest		—		—		18,459		18,459
Net income attributable to common stockholders	$	86,991	$	70,074	$	(18,459)	$	138,606

(1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

	June 30, 2022
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	94,983	$	247,008	$	341,991
Restricted cash		769,009		18,943		787,952
Loans and investments, net		14,832,302		—		14,832,302
Loans held-for-sale, net		—		518,935		518,935
Capitalized mortgage servicing rights, net		—		411,534		411,534
Securities held-to-maturity, net		—		159,686		159,686
Investments in equity affiliates		90,855		—		90,855
Goodwill and other intangible assets		12,500		85,914		98,414
Other assets and due from related party		272,679		65,242		337,921
Total assets	$	16,072,328	$	1,507,262	$	17,579,590
Liabilities:
Debt obligations	$	13,750,783	$	455,554	$	14,206,337
Allowance for loss-sharing obligations		—		53,053		53,053
Other liabilities and due to related parties		311,873		95,331		407,204
Total liabilities	$	14,062,656	$	603,938	$	14,666,594

	December 31, 2021
Assets:
Cash and cash equivalents	$	142,771	$	261,809	$	404,580
Restricted cash		468,013		18,677		486,690
Loans and investments, net		11,981,048		—		11,981,048
Loans held-for-sale, net		—		1,093,609		1,093,609
Capitalized mortgage servicing rights, net		—		422,734		422,734
Securities held-to-maturity, net		—		140,484		140,484
Investments in equity affiliates		89,676		—		89,676
Goodwill and other intangible assets		12,500		88,260		100,760
Other assets and due from related party		285,600		68,664		354,264
Total assets	$	12,979,608	$	2,094,237	$	15,073,845
Liabilities:
Debt obligations	$	11,100,429	$	956,272	$	12,056,701
Allowance for loss-sharing obligations		—		56,064		56,064
Other liabilities and due to related parties		278,726		132,370		411,096
Total liabilities	$	11,379,155	$	1,144,706	$	12,523,861

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Origination Data:
Structured Business
Bridge loans (1)	$	2,047,599		$	1,800,688		$	4,868,315		$	2,806,376
Mezzanine / Preferred Equity		—			38,257			8,139			94,257
SFR - Permanent loans		—			—			—			26,238
Total new loan originations	$	2,047,599		$	1,838,945		$	4,876,454		$	2,926,871
(1) The three and six months ended June 30, 2022 includes 36 and 71 SFR loans with a UPB of $155.0 million and $288.4 million, respectively. The three and six months ended June 30, 2021 includes 25 and 43 SFR loans with a UPB of $70.9 million and $114.2 million, respectively. During the three and six months ended June 30, 2022, we committed to fund SFR loans totaling $185.2 million and $268.5 million, respectively. During the three and six months ended June 30, 2021, we committed to fund SFR loans totaling $40.0 million and $138.4 million, respectively.
Loan payoffs / paydowns	$	1,122,407		$	662,940		$	1,788,958		$	895,968
Agency Business
Origination Volumes by Investor:
Fannie Mae	$	665,449		$	637,494		$	1,115,129		$	1,701,477
Freddie Mac		407,691			155,914			706,763			270,631
Private Label		83,346			377,184			156,242			529,638
FHA		78,364			130,764			90,354			197,244
SFR - Fixed Rate		34,334			11,996			39,205			11,996
Total	$	1,269,184		$	1,313,352		$	2,107,693		$	2,710,986
Total loan commitment volume	$	1,184,282		$	1,194,344		$	2,159,414		$	2,654,479
Agency Business Loan Sales Data:
Fannie Mae	$	569,048		$	722,499		$	1,235,592		$	2,159,865
Freddie Mac		362,442			134,122			721,528			408,946
Private Label		11,250			449,890			500,519			449,890
FHA		75,101			163,602			146,917			230,005
SFR - Fixed Rate		12,862			11,996			12,862			75,294
Total	$	1,030,703		$	1,482,109		$	2,617,418		$	3,324,000
Sales margin (fee-based services as a % of loan sales) (1)		1.60	%		2.76	%		1.35	%		2.10	%
MSR rate (MSR income as a % of loan commitments)		1.48	%		2.20	%		1.52	%		2.38	%

(1) The six months ended June 30, 2022 includes $17.1 million of gains recognized on our Swaps related to the Private Label loans sold in the three months ended March 31, 2022, which is included as a component of gain (loss) on derivative instruments, net in the consolidated statements of income.

	June 30, 2022
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio UPB		(basis points)	(years)
Fannie Mae	$	18,600,196	52.6	8.2
Freddie Mac		4,805,068	26.4	9.5
Private Label		2,061,813	20.0	8.4
FHA		1,076,237	15.1	19.5
SFR - Fixed Rate		226,568	20.0	6.3
Total	$	26,769,882	43.6	8.9

	December 31, 2021
Fannie Mae	$	19,127,397	53.5	8.0
Freddie Mac		4,943,905	27.1	9.3
Private Label		1,711,326	20.0	8.3
FHA		985,063	15.4	21.0
SFR - Fixed Rate		191,698	20.0	6.5
Total	$	26,959,389	44.9	8.8

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Basis of Presentation and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

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 2021 Annual Report.

Principles of Consolidation

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 14. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management 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. Since early 2020, there has been a global outbreak of COVID-19, which had forced many countries, including the United States, to declare national emergencies, to institute “stay-at-home” orders, to close financial markets and to restrict operations of non-essential businesses. Such actions have created significant disruptions in global supply chains, and adversely impacted many industries. COVID-19 has had, and may continue to have, a continued and prolonged adverse impact on economic and market conditions, which could continue a period of global economic slowdown. The impact of COVID-19 on companies continues to evolve, and the extent and duration of the economic fallout from this pandemic, both globally and to our business, remain unclear, making any estimate or assumption as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive.	First quarter of 2022	We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the three and six months ended June 30, 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock.

Recently Issued Accounting Pronouncements

Description	Effective Date	Effect on Financial Statements
In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty.	First quarter of 2023, with early adoption permitted	We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements.

Significant Accounting Policies

See Item 8 – Financial Statements and Supplementary Data in our 2021 Annual Report for a description of our significant accounting policies. Except for the adoption of ASU 2020-06 described above, there have been no significant changes to our significant accounting policies since December 31, 2021.

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Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Basis of Presentation and Significant Accounting Policies

Schedules of Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Description	Adoption Date	Effect on Financial Statements
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). Upon adoption of this guidance, convertible debt proceeds will no longer be allocated between debt and equity components, reducing the unamortized debt discount and lowering interest expense. This guidance also changes the method used to calculate diluted earnings per share when an instrument may be settled in cash or shares, if the effect is dilutive.	First quarter of 2022	We adopted this guidance on January 1, 2022 using the modified retrospective method of transition. Upon adoption, we reclassified the remaining equity component from equity to our convertible senior unsecured notes liability and ceased amortization of the debt discount through interest expense. Additionally, this guidance and the adoption method chosen requires the use of the if-converted method for the diluted net income per share calculation for our convertible instruments on a retrospective basis, regardless of our settlement intent. The adoption of this guidance resulted in a $2.5 million increase to the carrying value of our convertible debt, an $8.7 million decrease to our additional paid-in capital and a $5.6 million increase to our retained earnings at January 1, 2022. Additionally, the adoption of this guidance has reduced our diluted earnings per share for the three and six months ended June 30, 2022 by $0.02 per share, mainly due to the dilutive affect of 15.1 million shares from the assumption that we will redeem the principal balance with common stock.

Recently Issued Accounting Pronouncements

Description	Effective Date	Effect on Financial Statements
In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This guidance eliminates the accounting guidance on troubled debt restructurings and amends existing disclosures, including the requirment to disclose current period gross write-offs by year of origination. The guidance also updates the requirements related to accounting for credit losses and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty.	First quarter of 2023, with early adoption permitted	We have not early adopted this guidance and will make all the necessary additional disclosure requirements once adopted. We are currently evaluating the impact the changes, other than the disclosure changes, will have on our consolidated financial statements.

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Loans and Investments (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Investments

Schedule of 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
	June 30, 2022		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	14,668,418	98	%	674	5.47	%	23.6	0	%	76	%
Mezzanine loans		181,019	1	%	36	7.63	%	64.2	41	%	79	%
Preferred equity investments		148,254	1	%	9	5.48	%	34.7	58	%	87	%
Other loans (5)		36,120	<1	%	3	6.12	%	38.7	0	%	67	%
		15,033,811	100	%	722	5.49	%	24.2	1	%	76	%
Allowance for credit losses		(121,331)
Unearned revenue		(80,178)
Loans and investments, net	$	14,832,302

	December 31, 2021
Bridge loans (4)	$	11,750,710	97	%	528	4.19	%	23.8	0	%	76	%
Mezzanine loans		223,378	2	%	39	7.32	%	56.3	34	%	84	%
Preferred equity investments		155,513	1	%	11	5.57	%	38.0	58	%	87	%
Other loans (5)		29,394	<1	%	2	4.63	%	48.1	0	%	67	%
		12,158,995	100	%	580	4.26	%	24.6	1	%	76	%
Allowance for credit losses		(113,241)
Unearned revenue		(64,706)
Loans and investments, net	$	11,981,048

(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 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) At June 30, 2022 and December 31, 2021, bridge loans included 181 and 120, respectively, of SFR loans with a total gross loan commitment of $1.11 billion and $804.6 million, respectively, of which $653.8 million and $408.2 million, respectively, was funded.

(5) At June 30, 2022 and December 31, 2021, other loans included 3 and 2, respectively, variable rate SFR permanent loans.

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

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2022 is as follows ($ in thousands):

																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2022		2021		2020		2019		2018		Prior		Total			LTV Ratio		LTV Ratio
Multifamily:
Pass	$	1,181,993	$	2,106,750	$	86,978	$	—	$	—	$	20,300	$	3,396,021
Pass/Watch		2,288,500		3,644,880		643,991		169,310		51,450		32,850		6,830,981
Special Mention		798,856		2,182,343		288,038		296,970		64,200		8,250		3,638,657
Substandard		—		7,400		20,400		40,325		—		—		68,125
Total Multifamily	$	4,269,349	$	7,941,373	$	1,039,407	$	506,605	$	115,650	$	61,400	$	13,933,784		1	%	77	%
Single-Family Rental:												Percentage of portfolio		93	%
Pass	$	5,995	$	36,882	$	13,333	$	—	$	—	$	—	$	56,210
Pass/Watch		207,171		225,418		4,979		18,664		—		—		456,232
Special Mention		1,459		68,046		107,986		—		—		—		177,491
Total Single-Family Rental	$	214,625	$	330,346	$	126,298	$	18,664	$	—	$	—	$	689,933		0	%	65	%
Land:												Percentage of portfolio		5	%
Special Mention	$	—	$	—	$	8,100	$	—	$	—	$	—	$	8,100
Substandard		—		—		—		—		—		127,928		127,928
Total Land	$	—	$	—	$	8,100	$	—	$	—	$	127,928	$	136,028		0	%	97	%
Office:												Percentage of portfolio		1	%
Special Mention	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064
Total Office	$	—	$	—	$	35,410	$	—	$	43,654	$	—	$	79,064		0	%	87	%
Healthcare:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	—	$	—	$	14,558	$	—	$	—	$	14,558
Special Mention		—		—		—		51,069		—		—		51,069
Total Healthcare	$	—	$	—	$	—	$	65,627	$	—	$	—	$	65,627		0	%	77	%
Student Housing:												Percentage of portfolio		< 1	%
Pass	$	—	$	25,700	$	—	$	—	$	—	$	—	$	25,700
Substandard		—		—		21,500		—		—		—		21,500
Total Student Housing	$	—	$	25,700	$	21,500	$	—	$	—	$	—	$	47,200		34	%	76	%
Hotel:												Percentage of portfolio		< 1	%
Pass/Watch	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850
Total Hotel	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850		0	%	69	%
Retail:												Percentage of portfolio		< 1	%
Pass	$	—	$	—	$	—	$	4,000	$	—	$	—	$	4,000
Special Mention		—		—		—		—		18,600		—		18,600
Substandard		—		—		—		—		—		3,445		3,445
Total Retail	$	—	$	—	$	—	$	4,000	$	18,600	$	3,445	$	26,045		12	%	71	%
Other:												Percentage of portfolio		< 1	%
Special Mention	$	—	$	—	$	—	$	—	$	—	$	13,580	$	13,580
Doubtful		—		—		—		—		—		1,700		1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	15,280	$	15,280		7	%	51	%
												Percentage of portfolio		< 1	%
Grand Total	$	4,483,974	$	8,297,419	$	1,230,715	$	635,746	$	177,904	$	208,053	$	15,033,811		1	%	76	%

Summary of the changes in the allowance for credit losses for our loan portfolio

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

	Three Months Ended June 30, 2022
	Land		Multifamily		Office		Retail		Student Housing		Hotel		Healthcare		Other		Total
Allowance for credit losses:
Beginning balance	$	77,940	$	22,084	$	8,085	$	5,819	$	324	$	4	$	5	$	2,121	$	116,382
Provision for credit losses (net of recoveries)		(22)		5,874		(1,054)		—		(163)		12		(2)		304		4,949
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Three Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,096	$	30,029	$	8,051	$	13,848	$	3,498	$	7,754	$	3,872	$	2,152	$	147,300
Provision for credit losses (net of recoveries)		(39)		131		(229)		(29)		(1,133)		(7,529)		(6)		(19)		(8,853)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

	Six Months Ended June 30, 2022
Allowance for credit losses:
Beginning balance	$	77,970	$	18,707	$	8,073	$	5,819	$	636	$	8	$	8	$	2,020	$	113,241
Provision for credit losses (net of recoveries)		(52)		9,251		(1,042)		—		(475)		8		(5)		405		8,090
Ending balance	$	77,918	$	27,958	$	7,031	$	5,819	$	161	$	16	$	3	$	2,425	$	121,331

	Six Months Ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	7,759	$	3,880	$	2,287	$	148,329
Provision for credit losses (net of recoveries)		(93)		(6,308)		5,976		(42)		(1,713)		(7,534)		(14)		(154)		(9,882)
Ending balance	$	78,057	$	30,160	$	7,822	$	13,819	$	2,365	$	225	$	3,866	$	2,133	$	138,447

Summary of our loans considered impaired by asset class

	June 30, 2022
							Wtd. Avg. First		Wtd. Avg. Last
			Carrying		Allowance for		Dollar LTV		Dollar LTV
Asset Class	UPB (1)		Value		Credit Losses		Ratio		Ratio
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,563		5,817	14	%	79	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	157,960	$	147,131	$	85,386	3	%	96	%

	December 31, 2021
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,291		5,817	14	%	77	%
Office		1,980		1,980		1,500	0	%	51	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	159,940	$	148,839	$	86,886	3	%	95	%

(1) Represents the UPB of seven and eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2022 and December 31, 2021, respectively.

Summary of our non-performing loans by asset class

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

	June 30, 2022						December 31, 2021
			Less Than		Greater Than				Less Than		Greater Than
			90 Days		90 Days				90 Days		90 Days
	UPB		Past Due		Past Due		UPB		Past Due		Past Due
Student Housing	$	21,500	$	—	$	21,500	$	21,500	$	—	$	21,500
Retail		3,445		—		3,445		920		—		920
Commercial		1,700		—		1,700		1,700		—		1,700
Total	$	26,645	$	—	$	26,645	$	24,120	$	—	$	24,120

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Loans Held-for-Sale, Net (Tables)

6 Months Ended

Jun. 30, 2022

Loans Held-for-Sale, Net

Summary of loans held-for-sale, net

	June 30, 2022		December 31, 2021
Fannie Mae	$	272,405	$	392,876
Private Label		106,002		507,918
Freddie Mac		97,767		112,561
SFR - Fixed Rate		35,109		9,352
FHA		7,835		54,532
		519,118		1,077,239
Fair value of future MSR		7,431		19,318
Unrealized impairment loss		(4,380)		—
Unearned discount		(3,234)		(2,948)
Loans held-for-sale, net	$	518,935	$	1,093,609

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Capitalized Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2022

Capitalized Mortgage Servicing Rights

Summary of capitalized MSR activity

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

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	398,061	$	23,975	$	422,036	$	395,573	$	27,161	$	422,734
Additions		17,123		—		17,123		44,095		—		44,095
Amortization		(13,066)		(1,713)		(14,779)		(25,993)		(3,757)		(29,750)
Write-downs and payoffs		(10,721)		(2,125)		(12,846)		(22,278)		(3,267)		(25,545)
Ending balance	$	391,397	$	20,137	$	411,534	$	391,397	$	20,137	$	411,534

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
Beginning balance	$	367,428	$	39,552	$	406,980	$	336,466	$	43,508	$	379,974
Additions		31,971		—		31,971		77,009		—		77,009
Amortization		(11,796)		(2,871)		(14,667)		(22,875)		(5,996)		(28,871)
Write-downs and payoffs		(4,540)		(1,091)		(5,631)		(7,537)		(1,922)		(9,459)
Ending balance	$	383,063	$	35,590	$	418,653	$	383,063	$	35,590	$	418,653

Schedule of expected amortization of capitalized MSRs recorded

The expected amortization of capitalized MSRs recorded as of June 30, 2022 is as follows (in thousands):

Year	Amortization
2022 (six months ending 12/31/2022)	$	29,451
2023		57,065
2024		55,210
2025		52,744
2026		49,089
2027		43,518
Thereafter		124,457
Total	$	411,534

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Mortgage Servicing (Tables)

6 Months Ended

Jun. 30, 2022

MSRs

Product and geographic concentrations

Schedule of product and geographic concentrations in servicing revenue

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

June 30, 2022
Product Concentrations					Geographic Concentrations
						UPB
Product	UPB (1)		% of Total		State	% of Total
Fannie Mae	$	18,600,196	69	%	Texas	12	%
Freddie Mac		4,805,068	18	%	New York	12	%
Private Label		2,061,813	8	%	California	8	%
FHA		1,076,237	4	%	North Carolina	8	%
SFR - Fixed Rate		226,568	1	%	Georgia	6	%
Total	$	26,769,882	100	%	New Jersey	6	%
					Florida	5	%
					Other (2)	43	%
					Total	100	%

December 31, 2021
Fannie Mae	$	19,127,397	71	%	Texas	12	%
Freddie Mac		4,943,905	18	%	New York	11	%
Private Label		1,711,326	6	%	North Carolina	9	%
FHA		985,063	4	%	California	8	%
SFR - Fixed Rate		191,698	1	%	Georgia	6	%
Total	$	26,959,389	100	%	Florida	6	%
					New Jersey	6	%
					Other (2)	42	%
					Total	100	%

(1) Excludes loans which we are not collecting a servicing fee.

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

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Securities Held-to-Maturity (Tables)

6 Months Ended

Jun. 30, 2022

Securities Held-to-Maturity

Schedule of securities held-to-maturity

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

			Net Carrying		Unrealized		Estimated		Allowance for
	Face Value		Value		Gain (Loss)		Fair Value		Credit Losses
June 30, 2022
APL certificates	$	192,791	$	122,222	$	(3,308)	$	118,914	$	1,756
B Piece bonds		47,499		37,464		2,338		39,802		266
Total	$	240,290	$	159,686	$	(970)	$	158,716	$	2,022
December 31, 2021
APL certificates	$	149,368	$	92,869	$	5,007	$	97,876	$	1,422
B Piece bonds		61,360		47,615		4,420		52,035		331
Total	$	210,728	$	140,484	$	9,427	$	149,911	$	1,753

Schedule of changes in the allowance for credit losses

A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands):

	Three Months Ended June 30, 2022
	APL		B Piece
	Certificates		Bonds		Total
Beginning balance	$	1,812	$	231	$	2,043
Provision for credit loss expense/(reversal)		(56)		35		(21)
Ending balance	$	1,756	$	266	$	2,022

	Six Months Ended June 30, 2022
Beginning balance	$	1,422	$	331	$	1,753
Provision for credit loss expense/(reversal)		334		(65)		269
Ending balance	$	1,756	$	266	$	2,022

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Investments in Equity Affiliates (Tables)

6 Months Ended

Jun. 30, 2022

Investments in Equity Affiliates

Summary of the company's investments in equity affiliates

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

					UPB of Loans to
	Investments in Equity Affiliates at				Equity Affiliates at
Equity Affiliates	June 30, 2022		December 31, 2021		June 30, 2022
Arbor Residential Investor LLC	$	56,916	$	65,756	$	—
AMAC Holdings III LLC		17,243		13,772		—
Fifth Wall Ventures		11,465		5,409		—
North Vermont Avenue		2,461		2,419		—
Lightstone Value Plus REIT L.P.		1,895		1,895		—
Docsumo Pte. Ltd.		450		—		—
JT Prime		425		425		—
West Shore Café		—		—		1,688
Lexford Portfolio		—		—		—
East River Portfolio		—		—		—
Total	$	90,855	$	89,676	$	1,688

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Debt Obligations (Tables)

6 Months Ended

Jun. 30, 2022

Debt Obligations

Schedule of senior unsecured notes

A summary of our senior unsecured notes is as follows (in thousands):

Senior			June 30, 2022						December 31, 2021
Unsecured	Issuance				Carrying		Wtd. Avg.				Carrying		Wtd. Avg.
Notes	Date	Maturity	UPB		Value (1)		Rate (2)		UPB		Value (1)		Rate (2)
5.00% Notes (3)	Dec. 2021	Dec. 2028	$	180,000	$	177,238	5.00	%	$	180,000	$	177,105	5.00	%
4.50% Notes (3)	Aug. 2021	Sept. 2026		270,000		266,509	4.50	%		270,000		266,090	4.50	%
5.00% Notes (3)	Apr. 2021	Apr. 2026		175,000		172,605	5.00	%		175,000		172,302	5.00	%
8.00% Notes (3)	Apr. 2020	Apr. 2023		70,750		70,407	8.00	%		70,750		70,202	8.00	%
4.50% Notes (3)	Mar. 2020	Mar. 2027		275,000		272,718	4.50	%		275,000		272,477	4.50	%
4.75% Notes (4)	Oct. 2019	Oct. 2024		110,000		109,190	4.75	%		110,000		109,018	4.75	%
5.75% Notes (4)	Mar. 2019	Apr. 2024		90,000		89,321	5.75	%		90,000		89,135	5.75	%
5.625% Notes (4)	Mar. 2018	May 2023		125,000		124,510	5.63	%		125,000		124,216	5.63	%
			$	1,295,750	$	1,282,498	5.05	%	$	1,295,750	$	1,280,545	5.05	%

(1) At June 30, 2022 and December 31, 2021, the carrying value is net of deferred financing fees of $13.3 million and $15.2 million, respectively.

(2) At both June 30, 2022 and December 31, 2021, the aggregate weighted average note rate, including certain fees and costs, was 5.34%.

(3) These notes can be redeemed by us prior to three months before the maturity date, 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 notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

(4) These notes can be redeemed by us at any time prior to the maturity date, 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 notes on the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

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 are as follows (in thousands):

	Liability								Equity
	Component								Component
			Unamortized Debt		Unamortized Deferred		Net Carrying		Net Carrying
Period	UPB		Discount		Financing Fees		Value		Value
June 30, 2022	$	264,000	$	—	$	874	$	263,126	$	—
December 31, 2021	$	264,000	$	2,520	$	2,095	$	259,385	$	8,684

Repurchase agreements and credit facilities

Debt Obligations

Schedule of borrowings

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

				June 30, 2022						December 31, 2021
			Note	Debt		Collateral				Debt		Collateral
	Current	Extended	Rate	Carrying		Carrying		Wtd. Avg.		Carrying		Carrying
	Maturity	Maturity	Type	Value (1)		Value		Note Rate		Value (1)		Value
Structured Business
$2.5B joint repurchase facility (2)	Mar. 2024	Mar. 2025	V	$	1,883,227	$	2,381,351	4.16	%	$	1,486,380	$	1,877,930
$1B repurchase facility (2)	Mar. 2023	N/A	V		724,010		997,641	3.78	%		675,415		937,880
$500M repurchase facility	(3)	N/A	V		—		—	—			—		—
$450M repurchase facility	Mar. 2023	Mar. 2026	V		374,675		487,156	3.64	%		397,272		511,269
$450M repurchase facility	Oct. 2023	Oct. 2024	V		280,199		367,285	3.55	%		293,700		385,337
$399M repurchase facility (2) (4)	Dec. 2022	N/A	V		362,629		487,685	3.80	%		241,450		289,956
$225M credit facility	Oct. 2023	Oct. 2024	V		56,637		87,537	4.08	%		27,826		42,270
$200M repurchase facility	Mar. 2024	Mar. 2025	V		7,011		18,153	4.11	%		—		—
$200M repurchase facility	Jan. 2024	Jan. 2025	V		179,374		225,538	3.55	%		—		—
$200M credit facility	July 2023	N/A	V		64,361		81,577	3.16	%		177,406		236,538
$97.4M loan specific credit facilities	May 2023 to Oct. 2024	N/A	V/F		97,306		137,700	4.07	%		153,727		214,300
$50M credit facility (5)	July 2022	N/A	V		29,200		36,500	3.84	%		29,194		36,500
$35M working capital facility	Apr. 2023	N/A	V		—		—	—			—		—
$25M credit facility	Oct. 2022	N/A	V		6,131		7,745	4.35			1,235		1,900
$25M credit facility	Oct. 2022	Oct. 2023	V		3,192		3,902	4.09	%		10,218		14,773
$1M master security agreement	Dec. 2022	N/A	F		321		—	4.01	%		635		—
Repurchase facility - securities (2)	N/A	N/A	V		25,634		—	4.39	%		30,849		—
Structured Business total				$	4,093,907	$	5,319,770	3.93	%	$	3,525,307	$	4,548,653
Agency Business
$750M ASAP agreement	N/A	N/A	V	$	108,220	$	108,877	2.23	%	$	182,130	$	182,140
$500M joint repurchase facility (2)	Mar. 2024	Mar. 2025	V		77,572		100,348	2.80	%		395,317		475,360
$500M repurchase facility	Nov. 2022	N/A	V		197,249		197,293	3.16	%		236,429		236,527
$200M credit facility	Mar. 2023	N/A	V		56,228		56,376	2.96	%		115,304		115,351
$150M credit facility	July 2023	N/A	V		14,396		14,396	2.96	%		16,544		16,657
$50M credit facility	Sept. 2022	N/A	V		1,065		1,065	3.09	%		9,295		9,295
$1M repurchase facility (2) (4)	Dec. 2022	N/A	V		823		953	3.87	%		1,253		1,477
Agency Business total				$	455,553	$	479,308	2.85	%	$	956,272	$	1,036,807
Consolidated total				$	4,549,460	$	5,799,078	3.82	%	$	4,481,579	$	5,585,460

V = Variable Note Rate; F = Fixed Note Rate

(1) The debt carrying value for the Structured Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $8.7 million and $7.7 million, respectively. The debt carrying value for the Agency Business at June 30, 2022 and December 31, 2021 was net of unamortized deferred finance costs of $3.2 million and $4.4 million, respectively.

(2) These facilities are subject to margin call provisions associated with changes in interest spreads. At June 30, 2022 and December 31, 2021, the repurchase facility - securities were collateralized by B Piece bonds with a carrying value of $37.5 million and $47.6 million, respectively.

(3) The commitment amount under this repurchase facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans.

(4) A portion of this facility was used to finance a $1.0 million fixed rate SFR permanent loan reported through our Agency Business.

(5) We are currently in negotiations with this lender to extend the facility.

Collateralized loan obligations

Debt Obligations

Schedule of borrowings

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

	Debt						Collateral (3)
							Loans				Cash
			Carrying		Wtd. Avg.				Carrying		Restricted
June 30, 2022	Face Value		Value (1)		Rate (2)		UPB		Value		Cash (4)
CLO 19	$	872,812	$	865,734	3.91	%	$	949,974	$	944,124	$	60,448
CLO 18		1,652,812		1,644,623	3.35	%		1,945,841		1,935,490		—
CLO 17		1,714,125		1,706,612	3.52	%		1,950,220		1,941,438		70,750
CLO 16		1,237,500		1,230,942	3.14	%		1,357,413		1,351,490		93,500
CLO 15		674,412		670,616	3.20	%		744,694		741,567		59,061
CLO 14		655,475		651,772	3.16	%		729,933		727,220		30,077
CLO 13		668,000		665,612	3.25	%		714,062		712,425		67,552
CLO 12		534,193		532,584	3.33	%		523,068		521,893		102,943
Total CLOs	$	8,009,329	$	7,968,495	3.38	%	$	8,915,205	$	8,875,647	$	484,331

December 31, 2021
CLO 17	$	1,714,125	$	1,705,549	1.81	%	$	1,914,280	$	1,903,997	$	118,520
CLO 16		1,237,500		1,230,093	1.44	%		1,444,573		1,436,743		—
CLO 15		674,412		669,723	1.49	%		785,761		782,682		15,750
CLO 14		655,475		650,947	1.45	%		717,396		715,154		53,342
CLO 13		668,000		665,006	1.54	%		740,369		738,265		48,543
CLO 12		534,193		531,939	1.62	%		557,249		555,974		35,635
CLO 10		441,000		439,553	1.57	%		485,460		483,995		57,706
Total CLOs	$	5,924,705	$	5,892,810	1.59	%	$	6,645,088	$	6,616,810	$	329,496

(1) Debt carrying value is net of $40.8 million and $31.9 million of deferred financing fees at June 30, 2022 and December 31, 2021, respectively.

(2) At June 30, 2022 and December 31, 2021, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 3.59% and 1.86%, respectively.

(3) At June 30, 2022 and December 31, 2021, there were no collateral deemed a “credit risk” as defined by the CLO indentures.

(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 $283.1 million and $133.7 million at June 30, 2022 and December 31, 2021, respectively.

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

Our CLO compliance tests as of the most recent determination dates in July 2022 are as follows:

Cash Flow Triggers	CLO 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
Overcollateralization (1)
Current	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
Limit	117.87	%	118.76	%	118.76	%	119.85	%	120.21	%	121.51	%	123.03	%	119.30	%
Pass / Fail	Pass		Pass		Pass		Pass		Pass		Pass		Pass		Pass
Interest Coverage (2)
Current	253.59	%	234.87	%	226.47	%	226.54	%	216.65	%	186.01	%	217.98	%	132.93	%
Limit	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%	120.00	%
Pass / Fail	Pass		Pass		Pass		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.

Schedule of company's CLO overcollateralization ratios

Determination (1)	CLO 12		CLO 13		CLO 14		CLO 15		CLO 16		CLO 17		CLO 18		CLO 19
July 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	120.30	%
April 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	124.03	%	—
January 2022	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	122.51	%	—		—
October 2021	118.87	%	119.76	%	119.76	%	120.85	%	121.21	%	—		—		—
July 2021	118.87	%	119.76	%	119.76	%	120.85	%	—		—		—		—

(1) This table 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.

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Allowance for Loss-Sharing Obligations (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Beginning balance	$	55,172	$	65,893	$	56,064	$	64,303
Provisions for loss sharing		114		716		247		2,464
Provisions reversal for loan repayments		(2,063)		(167)		(2,858)		(263)
Charge – offs, net		(170)		(797)		(400)		(859)
Ending balance	$	53,053	$	65,645	$	53,053	$	65,645

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Agency Business

Derivatives, Fair Value [Line Items]

Schedule of non-qualifying derivative financial instruments

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

	June 30, 2022
					Fair Value
		Notional		Balance Sheet	Derivative		Derivative
Derivative	Count	Value		Location	Assets		Liabilities
Rate lock commitments	7	$	62,971	Other assets/other liabilities	$	1,035	$	(1,091)
Forward sale commitments	42		440,979	Other assets/other liabilities		3,933		(504)
Swaps	1,017		101,700			—		—
		$	605,650		$	4,968	$	(1,595)

	December 31, 2021
Rate lock commitments	2	$	11,250	Other assets/other liabilities	$	295	$	(33)
Forward sale commitments	55		571,220	Other assets/other liabilities		1,370		(1,449)
Swaps	3,882		388,200			—		—
		$	970,670		$	1,665	$	(1,482)

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value

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

	June 30, 2022						December 31, 2021
	Principal /		Carrying		Estimated		Principal /		Carrying		Estimated
	Notional Amount		Value		Fair Value		Notional Amount		Value		Fair Value
Financial assets:
Loans and investments, net	$	15,033,811	$	14,832,302	$	15,027,449	$	12,158,995	$	11,981,048	$	12,181,194
Loans held-for-sale, net		519,118		518,935		527,296		1,077,239		1,093,609		1,117,085
Capitalized mortgage servicing rights, net		n/a		411,534		491,853		n/a		422,734		477,323
Securities held-to-maturity, net		240,290		159,686		158,716		210,728		140,484		149,911
Derivative financial instruments		419,571		4,968		4,968		280,654		1,665		1,665
Financial liabilities:
Credit and repurchase facilities	$	4,561,393	$	4,549,460	$	4,548,205	$	4,493,699	$	4,481,579	$	4,484,107
Collateralized loan obligations		8,009,329		7,968,495		7,731,113		5,924,705		5,892,810		5,914,453
Senior unsecured notes		1,295,750		1,282,498		1,179,563		1,295,750		1,280,545		1,301,708
Convertible senior unsecured notes, net		264,000		263,126		262,350		264,000		259,385		294,690
Junior subordinated notes		154,336		142,758		102,839		154,336		142,382		101,698
Derivative financial instruments		84,379		1,595		1,595		301,816		1,482		1,482

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

					Fair Value Measurements Using Fair
	Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Derivative financial instruments	$	4,968	$	4,968	$	—	$	3,933	$	1,035
Financial liabilities:
Derivative financial instruments	$	1,595	$	1,595	$	—	$	1,595	$	—

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

					Fair Value Measurements Using Fair
	Net Carrying				Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans, net
Loans held-for-investment (1)	$	61,745	$	61,745	$	—	$	—	$	61,745
Loans held-for-sale (2)		101,622		101,622		—		101,622		—
	$	163,367	$	163,367	$	—	$	101,622	$	61,745

(1) We had an allowance for credit losses of $85.4 million relating to seven impaired loans with an aggregate carrying value, before loan loss reserves, of $147.1 million at June 30, 2022.

(2) We recorded an impairment loss of $4.1 million related to five impaired loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $106.0 million.

Schedule of quantitative information about Level 3 fair value measurements

Quantitative information about Level 3 fair value measurements at June 30, 2022 is as follows ($ in thousands):

	Fair Value		Valuation Techniques	Significant Unobservable Inputs
Financial assets:
Impaired loans:
Land	$	50,000	Discounted cash flows	Discount rate	21.50	%
				Revenue growth rate	3.00	%
				Discount rate	11.25	%
Retail		11,745	Discounted cash flows	Capitalization rate	9.25	%
				Revenue growth rate	3.00	%
Derivative financial instruments:
Rate lock commitments		1,035	Discounted cash flows	W/A discount rate	12.26	%

Schedule of roll forward of Level 3 derivative instruments

	Fair Value Measurements Using				Fair Value Measurements Using
	Significant Unobservable Inputs				Significant Unobservable Inputs
	for the Three Months Ended June 30,				for the Six Months Ended June 30,
	2022		2021		2022		2021
Derivative assets and liabilities, net
Beginning balance	$	1,355	$	1,439	$	295	$	1,967
Settlements		(17,254)		(23,045)		(30,937)		(58,074)
Realized gains recorded in earnings		15,899		21,606		30,642		56,107
Unrealized gains recorded in earnings		1,035		124		1,035		124
Ending balance	$	1,035	$	124	$	1,035	$	124

Schedule of components of fair value and other relevant information

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 are as follows (in thousands):

							Unrealized
	Notional/		Fair Value of		Interest Rate		Impairemnt		Total Fair Value
June 30, 2022	Principal Amount		Servicing Rights		Movement Effect		Loss		Adjustment
Rate lock commitments	$	62,971	$	1,035	$	515	$	—	$	1,550
Forward sale commitments		440,979		—		(515)		—		(515)
Loans held-for-sale, net (1)		519,118		7,431		—		(4,380)		3,051
Total			$	8,466	$	—	$	(4,380)	$	4,086

(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

					Fair Value Measurements Using Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Loans and investments, net	$	14,832,302	$	15,027,449	$	—	$	—	$	15,027,449
Loans held-for-sale, net		518,935		527,296		—		519,865		7,431
Capitalized mortgage servicing rights, net		411,534		491,853		—		—		491,853
Securities held-to-maturity, net		159,686		158,716		—		—		158,716
Financial liabilities:
Credit and repurchase facilities	$	4,549,460	$	4,548,205	$	—	$	455,553	$	4,092,652
Collateralized loan obligations		7,968,495		7,731,113		—		—		7,731,113
Senior unsecured notes		1,282,498		1,179,563		1,179,563		—		—
Convertible senior unsecured notes, net		263,126		262,350		—		262,350		—
Junior subordinated notes		142,758		102,839		—		—		102,839

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Schedule of maturities of operating lease liabilities

Debt Obligations and Operating Leases. As of June 30, 2022, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows (in thousands):

			Minimum Annual
	Debt		Operating Lease
Year	Obligations		Payments		Total
2022 (six months ending December 31, 2022)	$	1,577,515	$	4,204	$	1,581,719
2023		2,404,359		8,468		2,412,827
2024		3,585,363		8,214		3,593,577
2025		1,638,303		8,268		1,646,571
2026		4,120,591		8,292		4,128,883
2027		598,707		6,841		605,548
Thereafter		359,970		23,373		383,343
Total	$	14,284,808	$	67,660	$	14,352,468

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2022

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 are as follows (in thousands):

	June 30, 2022		December 31, 2021
Assets:
Restricted cash	$	767,432	$	466,523
Loans and investments, net		8,875,647		6,616,809
Other assets		71,297		61,474
Total assets	$	9,714,376	$	7,144,806
Liabilities:
Collateralized loan obligations	$	7,968,495	$	5,892,810
Other liabilities		17,755		9,813
Total liabilities	$	7,986,250	$	5,902,623

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, at June 30, 2022 is as follows (in thousands):

Type	Carrying Amount (1)
Loans	$	473,161
APL certificates		123,978
B Piece bonds		37,730
Equity investments		24,073
Agency interest only strips		339
Total	$	659,281

(1) Represents the carrying amount of loans and investments before reserves. At June 30, 2022, $127.9 million of loans to VIEs had corresponding specific loan loss reserves of $77.9 million. The maximum loss exposure as of June 30, 2022 would not exceed the carrying amount of our investment.

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Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity

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

Common Stock			Preferred Stock
				Dividend
Declaration Date	Dividend		Declaration Date	Series D		Series E		Series F
February 16, 2022	$	0.37	January 3, 2022	$	0.3984375	$	0.390625	$	0.46875
May 4, 2022	$	0.38	April 1, 2022	$	0.3984375	$	0.390625	$	0.390625

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 June 30,
	2022				2021
	Basic		Diluted		Basic		Diluted
Net income attributable to common stockholders (1)	$	69,909	$	69,909	$	69,126	$	69,126
Net income attributable to noncontrolling interest (2)		—		6,992		—		8,717
Interest expense on convertible notes (3)		—		3,995		—		—
Net income attributable to common stockholders and noncontrolling interest	$	69,909	$	80,896	$	69,126	$	77,843
Weighted average shares outstanding		163,044,217		163,044,217		135,262,197		135,262,197
Dilutive effect of OP Units (2)		—		16,306,745		—		17,056,229
Dilutive effect of restricted stock units (3)		—		522,367		—		929,734
Dilutive effect of convertible notes (4)		—		15,140,481		—		368,431
Weighted average shares outstanding		163,044,217		195,013,810		135,262,197		153,616,591
Net income per common share (1)	$	0.43	$	0.41	$	0.51	$	0.51

	Six Months Ended June 30,
	2022				2021
Net income attributable to common stockholders (1)	$	133,968	$	133,968	$	138,606	$	138,606
Net income attributable to noncontrolling interest (2)		—		13,808		—		18,459
Interest expense on convertible notes (3)		—		7,989		—		—
Net income attributable to common stockholders and noncontrolling interest	$	133,968	$	155,765	$	138,606	$	157,065
Weighted average shares outstanding		158,258,813		158,258,813		130,276,499		130,276,499
Dilutive effect of OP Units (2)		—		16,315,869		—		17,307,037
Dilutive effect of restricted stock units (3)		—		655,489		—		921,187
Dilutive effect of convertible notes (4)		—		15,126,859		—		313,307
Weighted average shares outstanding		158,258,813		190,357,030		130,276,499		148,818,030
Net income per common share (1)	$	0.85	$	0.82	$	1.06	$	1.06

(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) Our chief executive officer was granted restricted stock units during 2020, which vest at the end of a four-year performance period based upon our achievement of total stockholder return objectives.

(4) Beginning January 1, 2022, the effective date we adopted ASU 2020-06, we started utilizing the if-converted method of calculating EPS to reflect the impact of our convertible senior notes. For 2021, the convertible senior unsecured notes impacted diluted earnings per share if the average price of our common stock exceeded the conversion price, as calculated in accordance with the terms of the indenture. See Note 2 for details.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Information

Schedule of statement of income and balance sheet by segment

	Three Months Ended June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	192,047	$	9,281	$	—	$	201,328
Interest expense		103,165		3,902		—		107,067
Net interest income		88,882		5,379		—		94,261
Other revenue:
Gain on sales, including fee-based services, net		—		16,510		—		16,510
Mortgage servicing rights		—		17,567		—		17,567
Servicing revenue		—		35,493		—		35,493
Amortization of MSRs		—		(14,779)		—		(14,779)
Property operating income		290		—		—		290
Loss on derivative instruments, net		—		8,606		—		8,606
Other income, net		(9,328)		(3,921)		—		(13,249)
Total other revenue		(9,038)		59,476		—		50,438
Other expenses:
Employee compensation and benefits		13,866		25,034		—		38,900
Selling and administrative		6,429		6,759		—		13,188
Property operating expenses		542		—		—		542
Depreciation and amortization		858		1,173		—		2,031
Provision for loss sharing (net of recoveries)		—		(1,949)		—		(1,949)
Provision for credit losses (net of recoveries)		5,088		(21)		—		5,067
Total other expenses		26,783		30,996		—		57,779
Income before income from equity affiliates and income taxes		53,061		33,859		—		86,920
Income from equity affiliates		6,547		—		—		6,547
Provision for income taxes		(255)		(5,097)		—		(5,352)
Net income		59,353		28,762		—		88,115
Preferred stock dividends		11,214		—		—		11,214
Net income attributable to noncontrolling interest		—		—		6,992		6,992
Net income attributable to common stockholders	$	48,139	$	28,762	$	(6,992)	$	69,909

	Three Months Ended June 30, 2021
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	96,498	$	8,650	$	—	$	105,148
Interest expense		42,748		3,630		—		46,378
Net interest income		53,750		5,020		—		58,770
Other revenue:
Gain on sales, including fee-based services, net		—		40,901		—		40,901
Mortgage servicing rights		—		26,299		—		26,299
Servicing revenue		—		29,982		—		29,982
Amortization of MSRs		—		(14,667)		—		(14,667)
Loss on derivative instruments, net		—		(2,607)		—		(2,607)
Other income, net		1,255		8		—		1,263
Total other revenue		1,255		79,916		—		81,171
Other expenses:
Employee compensation and benefits		11,907		31,793		—		43,700
Selling and administrative		5,248		5,885		—		11,133
Property operating expenses		129		—		—		129
Depreciation and amortization		615		1,173		—		1,788
Provision for loss sharing (net of recoveries)		—		549		—		549
Provision for credit losses (net of recoveries)		(8,333)		518		—		(7,815)
Total other expenses		9,566		39,918		—		49,484
Income before income from equity affiliates and income taxes		45,439		45,018		—		90,457
Income from equity affiliates		4,759		—		—		4,759
Provision for income taxes		(682)		(10,277)		—		(10,959)
Net income		49,516		34,741		—		84,257
Preferred stock dividends		6,414		—		—		6,414
Net income attributable to noncontrolling interest		—		—		8,717		8,717
Net income attributable to common stockholders	$	43,102	$	34,741	$	(8,717)	$	69,126

	Six Months Ended June 30, 2022
	Structured		Agency		Other /
	Business		Business		Eliminations (1)		Consolidated
Interest income	$	348,308	$	19,718	$	—	$	368,026
Interest expense		181,367		8,260		—		189,627
Net interest income		166,941		11,458		—		178,399
Other revenue:
Gain on sales, including fee-based services, net		—		18,166		—		18,166
Mortgage servicing rights		—		32,879		—		32,879
Servicing revenue		—		71,519		—		71,519
Amortization of MSRs		—		(29,750)		—		(29,750)
Property operating income		586		—		—		586
Gain on derivative instruments, net		—		25,992		—		25,992
Other income, net		(6,131)		(3,917)		—		(10,048)
Total other revenue		(5,545)		114,889		—		109,344
Other expenses:
Employee compensation and benefits		29,352		51,573		—		80,925
Selling and administrative		13,838		13,897		—		27,735
Property operating expenses		1,077		—		—		1,077
Depreciation and amortization		1,668		2,346		—		4,014
Provision for loss sharing (net of recoveries)		—		(2,611)		—		(2,611)
Provision for credit losses (net of recoveries)		7,157		269		—		7,426
Total other expenses		53,092		65,474		—		118,566
Income before extinguishment of debt, income from equity affiliates and income taxes		108,304		60,873		—		169,177
Loss on extinguishment of debt		(1,350)		—		—		(1,350)
Income from equity affiliates		13,759		—		—		13,759
Provision for income taxes		(1,687)		(11,853)		—		(13,540)
Net income		119,026		49,020		—		168,046
Preferred stock dividends		20,270		—		—		20,270
Net income attributable to noncontrolling interest		—		—		13,808		13,808
Net income attributable to common stockholders	$	98,756	$	49,020	$	(13,808)	$	133,968

	Six Months Ended June 30, 2021
		Structured		Agency		Other /
		Business		Business		Eliminations (1)		Consolidated
Interest income	$	179,708	$	16,584	$	—	$	196,292
Interest expense		80,972		7,590		—		88,562
Net interest income		98,736		8,994		—		107,730
Other revenue:
Gain on sales, including fee-based services, net		—		69,768		—		69,768
Mortgage servicing rights		—		63,235		—		63,235
Servicing revenue		—		59,721		—		59,721
Amortization of MSRs		—		(28,871)		—		(28,871)
Loss on derivative instruments, net		—		(5,828)		—		(5,828)
Other income, net		1,935		8		—		1,943
Total other revenue		1,935		158,033		—		159,968
Other expenses:
Employee compensation and benefits		23,484		63,190		—		86,674
Selling and administrative		9,761		12,186		—		21,947
Property operating expenses		272		—		—		272
Depreciation and amortization		1,197		2,346		—		3,543
Provision for loss sharing (net of recoveries)		—		2,201		—		2,201
Provision for credit losses (net of recoveries)		(9,362)		472		—		(8,890)
Total other expenses		25,352		80,395		—		105,747
Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes		75,319		86,632		—		161,951
Loss on extinguishment of debt		(1,370)		—		—		(1,370)
Gain on sale of real estate		—		1,228		—		1,228
Income from equity affiliates		27,010		—		—		27,010
Provision for income taxes		(5,665)		(17,786)		—		(23,451)
Net income		95,294		70,074		—		165,368
Preferred stock dividends		8,303		—		—		8,303
Net income attributable to noncontrolling interest		—		—		18,459		18,459
Net income attributable to common stockholders	$	86,991	$	70,074	$	(18,459)	$	138,606

(1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

	June 30, 2022
	Structured Business		Agency Business		Consolidated
Assets:
Cash and cash equivalents	$	94,983	$	247,008	$	341,991
Restricted cash		769,009		18,943		787,952
Loans and investments, net		14,832,302		—		14,832,302
Loans held-for-sale, net		—		518,935		518,935
Capitalized mortgage servicing rights, net		—		411,534		411,534
Securities held-to-maturity, net		—		159,686		159,686
Investments in equity affiliates		90,855		—		90,855
Goodwill and other intangible assets		12,500		85,914		98,414
Other assets and due from related party		272,679		65,242		337,921
Total assets	$	16,072,328	$	1,507,262	$	17,579,590
Liabilities:
Debt obligations	$	13,750,783	$	455,554	$	14,206,337
Allowance for loss-sharing obligations		—		53,053		53,053
Other liabilities and due to related parties		311,873		95,331		407,204
Total liabilities	$	14,062,656	$	603,938	$	14,666,594

	December 31, 2021
Assets:
Cash and cash equivalents	$	142,771	$	261,809	$	404,580
Restricted cash		468,013		18,677		486,690
Loans and investments, net		11,981,048		—		11,981,048
Loans held-for-sale, net		—		1,093,609		1,093,609
Capitalized mortgage servicing rights, net		—		422,734		422,734
Securities held-to-maturity, net		—		140,484		140,484
Investments in equity affiliates		89,676		—		89,676
Goodwill and other intangible assets		12,500		88,260		100,760
Other assets and due from related party		285,600		68,664		354,264
Total assets	$	12,979,608	$	2,094,237	$	15,073,845
Liabilities:
Debt obligations	$	11,100,429	$	956,272	$	12,056,701
Allowance for loss-sharing obligations		—		56,064		56,064
Other liabilities and due to related parties		278,726		132,370		411,096
Total liabilities	$	11,379,155	$	1,144,706	$	12,523,861

Schedule of origination data and loan sales data

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Origination Data:
Structured Business
Bridge loans (1)	$	2,047,599		$	1,800,688		$	4,868,315		$	2,806,376
Mezzanine / Preferred Equity		—			38,257			8,139			94,257
SFR - Permanent loans		—			—			—			26,238
Total new loan originations	$	2,047,599		$	1,838,945		$	4,876,454		$	2,926,871
(1) The three and six months ended June 30, 2022 includes 36 and 71 SFR loans with a UPB of $155.0 million and $288.4 million, respectively. The three and six months ended June 30, 2021 includes 25 and 43 SFR loans with a UPB of $70.9 million and $114.2 million, respectively. During the three and six months ended June 30, 2022, we committed to fund SFR loans totaling $185.2 million and $268.5 million, respectively. During the three and six months ended June 30, 2021, we committed to fund SFR loans totaling $40.0 million and $138.4 million, respectively.
Loan payoffs / paydowns	$	1,122,407		$	662,940		$	1,788,958		$	895,968
Agency Business
Origination Volumes by Investor:
Fannie Mae	$	665,449		$	637,494		$	1,115,129		$	1,701,477
Freddie Mac		407,691			155,914			706,763			270,631
Private Label		83,346			377,184			156,242			529,638
FHA		78,364			130,764			90,354			197,244
SFR - Fixed Rate		34,334			11,996			39,205			11,996
Total	$	1,269,184		$	1,313,352		$	2,107,693		$	2,710,986
Total loan commitment volume	$	1,184,282		$	1,194,344		$	2,159,414		$	2,654,479
Agency Business Loan Sales Data:
Fannie Mae	$	569,048		$	722,499		$	1,235,592		$	2,159,865
Freddie Mac		362,442			134,122			721,528			408,946
Private Label		11,250			449,890			500,519			449,890
FHA		75,101			163,602			146,917			230,005
SFR - Fixed Rate		12,862			11,996			12,862			75,294
Total	$	1,030,703		$	1,482,109		$	2,617,418		$	3,324,000
Sales margin (fee-based services as a % of loan sales) (1)		1.60	%		2.76	%		1.35	%		2.10	%
MSR rate (MSR income as a % of loan commitments)		1.48	%		2.20	%		1.52	%		2.38	%

(1) The six months ended June 30, 2022 includes $17.1 million of gains recognized on our Swaps related to the Private Label loans sold in the three months ended March 31, 2022, which is included as a component of gain (loss) on derivative instruments, net in the consolidated statements of income.

Schedule of key servicing metrics for Agency Business

	June 30, 2022
			Wtd. Avg. Servicing	Wtd. Avg. Life of
	Servicing		Fee Rate	Servicing Portfolio
Key Servicing Metrics for Agency Business:	Portfolio UPB		(basis points)	(years)
Fannie Mae	$	18,600,196	52.6	8.2
Freddie Mac		4,805,068	26.4	9.5
Private Label		2,061,813	20.0	8.4
FHA		1,076,237	15.1	19.5
SFR - Fixed Rate		226,568	20.0	6.3
Total	$	26,769,882	43.6	8.9

	December 31, 2021
Fannie Mae	$	19,127,397	53.5	8.0
Freddie Mac		4,943,905	27.1	9.3
Private Label		1,711,326	20.0	8.3
FHA		985,063	15.4	21.0
SFR - Fixed Rate		191,698	20.0	6.5
Total	$	26,959,389	44.9	8.8

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Description of Business (Details)	6 Months Ended
	Jun. 30, 2022 segment
Description of Business
Number of business segments	2

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Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jan. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Significant Accounting Policies
Retained Earnings (Accumulated Deficit)	$ 83,271		$ 83,271				$ 62,532
Real Estate Owned and Held-For-Sale
Aggregate increase to retained earnings	$ 83,271		$ 83,271				$ 62,532
Decrease in diluted earnings per share	$ 0.41	$ 0.51	$ 0.82	$ 1.06
ASU 2020-20 | Cumulative-effect adjustment
Significant Accounting Policies
Retained Earnings (Accumulated Deficit)						$ 5,600
Real Estate Owned and Held-For-Sale
Aggregate increase to retained earnings						5,600
Aggregate decrease to additional paid-in capital						$ 8,700
Increase in Convertible debt					$ 2,500
Decrease in diluted earnings per share	$ 0.02
Dilutive effect			15.1
Minimum
Loans Held-for-Sale, Net
Maximum number of days held-for-sale loans are generally transferred or sold			60 days
Minimum | Interest Rate Swaps
Real Estate Owned and Held-For-Sale
Derivative Swap Rate Period			5 years
Maximum
Loans Held-for-Sale, Net
Maximum number of days held-for-sale loans are generally transferred or sold			180 days
Maximum | Interest Rate Swaps
Real Estate Owned and Held-For-Sale
Derivative Swap Rate Period			10 years

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Loans and Investments - Investment Portfolio and Concentration of Credit Risk (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) loan borrower	Dec. 31, 2021 USD ($) loan borrower	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Loans and Investments
Loans and investments	$ 15,033,811	$ 12,158,995
Allowance for credit losses	(121,331)	(113,241)	$ (116,382)	$ (138,447)	$ (147,300)	$ (148,329)
Unearned revenue	(80,178)	(64,706)
Loans and investments, net	$ 14,832,302	$ 11,981,048
Percent of Total	100.00%	100.00%
Loan Count | loan	722	580
Wtd. Avg. Pay Rate (as a percent)	5.49%	4.26%
Wtd. Avg. Remaining Months to Maturity	24 months 6 days	24 months 18 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	1.00%	1.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%	76.00%
Credit risk concentration
Loans and Investments
Loans and investments	$ 15,033,811
Wtd. Avg. First Dollar LTV Ratio (as percent)	1.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%
Credit risk concentration | Single-Family Rental
Loans and Investments
Loans and investments	$ 689,933
Percent of Total	5.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	65.00%
Total assets | Credit risk concentration
Loans and Investments
Loan Count | loan	39	31
Number of different borrowers | borrower	5	5
Total assets | Credit risk concentration | Five Borrowers
Loans and Investments
Concentration risk, percentage	11.00%	11.00%
Bridge Loans
Loans and Investments
Loans and investments	$ 14,668,418	$ 11,750,710
Percent of Total	98.00%	97.00%
Loan Count | loan	674	528
Wtd. Avg. Pay Rate (as a percent)	5.47%	4.19%
Wtd. Avg. Remaining Months to Maturity	23 months 18 days	23 months 24 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%	76.00%
Bridge Loans | Single-Family Rental
Loans and Investments
Number of loans under the loan portfolio | loan	181	120
Total loan commitment	$ 1,110,000	$ 804,600
Mezzanine Loans
Loans and Investments
Loans and investments	$ 181,019	$ 223,378
Percent of Total	1.00%	2.00%
Loan Count | loan	36	39
Wtd. Avg. Pay Rate (as a percent)	7.63%	7.32%
Wtd. Avg. Remaining Months to Maturity	64 months 6 days	56 months 9 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	41.00%	34.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	79.00%	84.00%
Preferred equity investments
Loans and Investments
Loans and investments	$ 148,254	$ 155,513
Percent of Total	1.00%	1.00%
Loan Count | loan	9	11
Wtd. Avg. Pay Rate (as a percent)	5.48%	5.57%
Wtd. Avg. Remaining Months to Maturity	34 months 21 days	38 months
Wtd. Avg. First Dollar LTV Ratio (as percent)	58.00%	58.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	87.00%	87.00%
Other loans
Loans and Investments
Loans and investments	$ 36,120	$ 29,394
Percent of Total	1.00%	1.00%
Loan Count | loan	3	2
Wtd. Avg. Pay Rate (as a percent)	6.12%	4.63%
Wtd. Avg. Remaining Months to Maturity	38 months 21 days	48 months 3 days
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	67.00%	67.00%
Other loans | Single-Family Rental
Loans and Investments
Number of loans under the loan portfolio | loan	3	2
Unpaid principal balance, funded	$ 653,800	$ 408,200

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Loans and Investments - Risk Ratings and LTV Ratios (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Loans and Investments
Loans and investments	$ 15,033,811	$ 12,158,995
Percentage of Portfolio	100.00%	100.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	1.00%	1.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%	76.00%
Healthcare | Loans and investments portfolio
Loans and Investments
Percentage of Portfolio	1.00%
Credit risk concentration
Loans and Investments
Origination Year 2022	$ 4,483,974
Origination Year 2021	8,297,419
Origination Year 2020	1,230,715
Origination Year 2019	635,746
Origination Year 2018	177,904
Origination Year Prior	208,053
Loans and investments	$ 15,033,811
Wtd. Avg. First Dollar LTV Ratio (as percent)	1.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%
Credit risk concentration | Loans and investments portfolio | Texas
Loans and Investments
Concentration risk, percentage	20.00%	19.00%
Credit risk concentration | Loans and investments portfolio | Florida
Loans and Investments
Concentration risk, percentage	13.00%	12.00%
Credit risk concentration | Multifamily Portfolio
Loans and Investments
Origination Year 2022	$ 4,269,349
Origination Year 2021	7,941,373
Origination Year 2020	1,039,407
Origination Year 2019	506,605
Origination Year 2018	115,650
Origination Year Prior	61,400
Loans and investments	$ 13,933,784
Percentage of Portfolio	93.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	1.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	77.00%
Credit risk concentration | Multifamily Portfolio | Pass
Loans and Investments
Origination Year 2022	$ 1,181,993
Origination Year 2021	2,106,750
Origination Year 2020	86,978
Origination Year Prior	20,300
Loans and investments	3,396,021
Credit risk concentration | Multifamily Portfolio | Pass/Watch
Loans and Investments
Origination Year 2022	2,288,500
Origination Year 2021	3,644,880
Origination Year 2020	643,991
Origination Year 2019	169,310
Origination Year 2018	51,450
Origination Year Prior	32,850
Loans and investments	6,830,981
Credit risk concentration | Multifamily Portfolio | Special Mention
Loans and Investments
Origination Year 2022	798,856
Origination Year 2021	2,182,343
Origination Year 2020	288,038
Origination Year 2019	296,970
Origination Year 2018	64,200
Origination Year Prior	8,250
Loans and investments	3,638,657
Credit risk concentration | Multifamily Portfolio | Substandard
Loans and Investments
Origination Year 2021	7,400
Origination Year 2020	20,400
Origination Year 2019	40,325
Loans and investments	68,125
Credit risk concentration | Single-Family Rental
Loans and Investments
Origination Year 2022	214,625
Origination Year 2021	330,346
Origination Year 2020	126,298
Origination Year 2019	18,664
Loans and investments	$ 689,933
Percentage of Portfolio	5.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	65.00%
Credit risk concentration | Single-Family Rental | Pass
Loans and Investments
Origination Year 2022	$ 5,995
Origination Year 2021	36,882
Origination Year 2020	13,333
Loans and investments	56,210
Credit risk concentration | Single-Family Rental | Pass/Watch
Loans and Investments
Origination Year 2022	207,171
Origination Year 2021	225,418
Origination Year 2020	4,979
Origination Year 2019	18,664
Loans and investments	456,232
Credit risk concentration | Single-Family Rental | Special Mention
Loans and Investments
Origination Year 2022	1,459
Origination Year 2021	68,046
Origination Year 2020	107,986
Loans and investments	177,491
Credit risk concentration | Land
Loans and Investments
Origination Year 2020	8,100
Origination Year Prior	127,928
Loans and investments	$ 136,028
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	97.00%
Credit risk concentration | Land | Special Mention
Loans and Investments
Origination Year 2020	$ 8,100
Loans and investments	8,100
Credit risk concentration | Land | Substandard
Loans and Investments
Origination Year Prior	127,928
Loans and investments	127,928
Credit risk concentration | Office
Loans and Investments
Origination Year 2020	35,410
Origination Year 2018	43,654
Loans and investments	$ 79,064
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	87.00%
Credit risk concentration | Office | Special Mention
Loans and Investments
Origination Year 2020	$ 35,410
Origination Year 2018	43,654
Loans and investments	79,064
Credit risk concentration | Healthcare
Loans and Investments
Origination Year 2019	65,627
Loans and investments	$ 65,627
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	77.00%
Credit risk concentration | Healthcare | Pass
Loans and Investments
Loans and investments	$ 14,558
Credit risk concentration | Healthcare | Pass/Watch
Loans and Investments
Origination Year 2019	14,558
Credit risk concentration | Healthcare | Special Mention
Loans and Investments
Origination Year 2019	51,069
Loans and investments	51,069
Credit risk concentration | Student Housing
Loans and Investments
Origination Year 2021	25,700
Origination Year 2020	21,500
Loans and investments	$ 47,200
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	34.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	76.00%
Credit risk concentration | Student Housing | Pass
Loans and Investments
Origination Year 2021	$ 25,700
Loans and investments	25,700
Credit risk concentration | Student Housing | Substandard
Loans and Investments
Origination Year 2020	21,500
Loans and investments	21,500
Credit risk concentration | Hotel Portfolio
Loans and Investments
Origination Year 2019	40,850
Loans and investments	$ 40,850
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	0.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	69.00%
Credit risk concentration | Hotel Portfolio | Pass/Watch
Loans and Investments
Origination Year 2019	$ 40,850
Loans and investments	40,850
Credit risk concentration | Retail
Loans and Investments
Origination Year 2019	4,000
Origination Year 2018	18,600
Origination Year Prior	3,445
Loans and investments	$ 26,045
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	12.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	71.00%
Credit risk concentration | Retail | Pass
Loans and Investments
Origination Year 2019	$ 4,000
Loans and investments	4,000
Credit risk concentration | Retail | Special Mention
Loans and Investments
Origination Year 2018	18,600
Loans and investments	18,600
Credit risk concentration | Retail | Substandard
Loans and Investments
Origination Year Prior	3,445
Loans and investments	3,445
Credit risk concentration | Other Property
Loans and Investments
Origination Year Prior	15,280
Loans and investments	$ 15,280
Percentage of Portfolio	1.00%
Wtd. Avg. First Dollar LTV Ratio (as percent)	7.00%
Wtd. Avg. Last Dollar LTV Ratio (as percent)	51.00%
Credit risk concentration | Other Property | Special Mention
Loans and Investments
Origination Year Prior	$ 13,580
Loans and investments	13,580
Credit risk concentration | Other Property | Doubtful
Loans and Investments
Origination Year Prior	1,700
Loans and investments	$ 1,700

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Loans and Investments - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	$ 116,382	$ 147,300	$ 113,241	$ 148,329
Provision for credit losses (net of recoveries)	4,949	(8,853)	8,090	(9,882)
Allowance at end of period	121,331	138,447	121,331	138,447
Accrued interest receivable related to loans	76,800		76,800		$ 58,300
Land
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	77,940	78,096	77,970	78,150
Provision for credit losses (net of recoveries)	(22)	(39)	(52)	(93)
Allowance at end of period	77,918	78,057	77,918	78,057
Multifamily Portfolio
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	22,084	30,029	18,707	36,468
Provision for credit losses (net of recoveries)	5,874	131	9,251	(6,308)
Allowance at end of period	27,958	30,160	27,958	30,160
Retail
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	5,819	13,848	5,819	13,861
Provision for credit losses (net of recoveries)		(29)		(42)
Allowance at end of period	5,819	13,819	5,819	13,819
Office
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	8,085	8,051	8,073	1,846
Provision for credit losses (net of recoveries)	(1,054)	(229)	(1,042)	5,976
Allowance at end of period	7,031	7,822	7,031	7,822
Healthcare
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	5	3,872	8	3,880
Provision for credit losses (net of recoveries)	(2)	(6)	(5)	(14)
Allowance at end of period	3	3,866	3	3,866
Student Housing
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	324	3,498	636	4,078
Provision for credit losses (net of recoveries)	(163)	(1,133)	(475)	(1,713)
Allowance at end of period	161	2,365	161	2,365
Hotel Portfolio
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	4	7,754	8	7,759
Provision for credit losses (net of recoveries)	12	(7,529)	8	(7,534)
Allowance at end of period	16	225	16	225
Other Property
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	2,121	2,152	2,020	2,287
Provision for credit losses (net of recoveries)	304	(19)	405	(154)
Allowance at end of period	$ 2,425	$ 2,133	$ 2,425	2,133
Bridge Loans | Hotel Portfolio
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period				$ 7,500

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Loans and Investments - Summary of impaired loans (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) item	Dec. 31, 2021 USD ($) item
Loans and Investments
UPB	$ 157,960	$ 159,940
Carrying Value	147,131	148,839
Allowance for Credit Losses	$ 85,386	$ 86,886
Wtd. Avg. First Dollar LTV Ratio	3	3
Wtd. Avg. Last Dollar LTV Ratio	96	95
Number of impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class | item	7	8
Land
Loans and Investments
UPB	$ 134,215	$ 134,215
Carrying Value	127,868	127,868
Allowance for Credit Losses	$ 77,869	$ 77,869
Wtd. Avg. First Dollar LTV Ratio	0	0
Wtd. Avg. Last Dollar LTV Ratio	99	99
Retail
Loans and Investments
UPB	$ 22,045	$ 22,045
Carrying Value	17,563	17,291
Allowance for Credit Losses	$ 5,817	$ 5,817
Wtd. Avg. First Dollar LTV Ratio	14	14
Wtd. Avg. Last Dollar LTV Ratio	79	77
Office
Loans and Investments
UPB		$ 1,980
Carrying Value		1,980
Allowance for Credit Losses		$ 1,500
Wtd. Avg. First Dollar LTV Ratio		0
Wtd. Avg. Last Dollar LTV Ratio		51
Commercial
Loans and Investments
UPB	$ 1,700	$ 1,700
Carrying Value	1,700	1,700
Allowance for Credit Losses	$ 1,700	$ 1,700
Wtd. Avg. First Dollar LTV Ratio	63	63
Wtd. Avg. Last Dollar LTV Ratio	63	63

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Loans and Investments - Non-performing Loans (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Non-performing loans by asset class
Number of loans for which no provision for loan loss made | loan	0	0
Number of loans | loan	722	580
Amortized cost of loans on nonaccrual status	$ 0	$ 0
UPB	157,960	159,940
Financing Receivable, before Allowance for Credit Loss	$ 15,033,811	$ 12,158,995
Non-performing loans
Non-performing loans by asset class
Number of loans | loan	4	3
Carrying value of loans	$ 20,100	$ 20,100
Loan loss reserves	5,100	2,600
UPB	26,645	24,120
Less Than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	0	0
Greater than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	26,645	24,120
Student Housing | Non-performing loans
Non-performing loans by asset class
UPB	21,500	21,500
Student Housing | Less Than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	0	0
Student Housing | Greater than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	21,500	21,500
Retail
Non-performing loans by asset class
UPB	22,045	22,045
Retail | Non-performing loans
Non-performing loans by asset class
UPB	3,445	920
Retail | Less Than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	0	0
Retail | Greater than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	3,445	920
Commercial
Non-performing loans by asset class
UPB	1,700	1,700
Commercial | Non-performing loans
Non-performing loans by asset class
UPB	1,700	1,700
Commercial | Less Than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	0	0
Commercial | Greater than 90 Days Past Due | Non-performing loans
Non-performing loans by asset class
Financing Receivable, before Allowance for Credit Loss	$ 1,700	$ 1,700

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Loans and Investments - Charge-offs and Recoveries Narratives (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Loans and Investments
Amount of provision for credit losses	$ 4,949	$ (8,853)	$ 8,090	$ (9,882)
Amount of loan loss recovery	1,500
Allowance for credit losses	121,331	138,447	121,331	138,447	$ 116,382	$ 113,241	$ 147,300	$ 148,329
Six loans collateralized by a land development project
Loans and Investments
Unpaid principal balance on loans	$ 1,220,000		$ 1,220,000			975,200
Six loans collateralized by a land development project | Maturity date of March 2020
Loans and Investments
Number of loans with unpaid principal balance | loan	6		6
Unpaid principal balance on loans	$ 121,400		$ 121,400
Five loans collateralized by a land development project | Maturity date of March 2020
Loans and Investments
Number of loans with unpaid principal balance | loan	5		5
Unpaid principal balance on loans	$ 112,100		$ 112,100
Weighted average accrual rate of interest (as a percent)			7.91%
Allowance for credit losses	71,400		$ 71,400			71,400
Hotel Portfolio
Loans and Investments
Amount of provision for credit losses	12	(7,529)	8	(7,534)
Allowance for credit losses	$ 16	$ 225	$ 16	$ 225	$ 4	$ 8	$ 7,754	$ 7,759

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Loans and Investments - Purchased Credit Deterioration and Troubled Debt Restructurings (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) item loan	Jun. 30, 2021 USD ($) item	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchase of loan					$ 4,661,893	$ 2,814,170
Allowance for credit losses		$ 138,447	$ 121,331	$ 138,447	$ 121,331	138,447	$ 113,241	$ 148,329		$ 116,382	$ 147,300
Proceeds from full satisfaction of loans		95,000
Reversal of allowance for credit losses		7,500		7,500		$ 7,500
Interest income from loans		3,500
Troubled debt restructurings, number | item					2
Other loans modification | item					0	0
Interest reserve					$ 112,700		$ 87,400
Number of loans covered under interest reserve | loan			424		424		328
Aggregate UPB covered under interest reserve			$ 7,360,000		$ 7,360,000		$ 5,750,000
Impairment loss on sale of loans			16,510	40,901	18,166	$ 69,768
Hotel Portfolio
Financing Receivable, Recorded Investment, Past Due [Line Items]
Allowance for credit losses		$ 225	16	225	16	225	8	7,759		4	7,754
Hotel Portfolio | Forbearance agreement
Financing Receivable, Recorded Investment, Past Due [Line Items]
Fixed rate of interest (as a percent)		9.50%
Principal reduction									$ (10,000)
Pay rate (as a percent)									1.00%
Hotel Portfolio | Forbearance agreement | LIBOR
Financing Receivable, Recorded Investment, Past Due [Line Items]
Variable rate, spread (as a percent)									3.00%
LIBOR Floor rate									1.50%
Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Allowance for credit losses		$ 13,819	5,819	$ 13,819	5,819	$ 13,819	5,819	$ 13,861		$ 5,819	$ 13,848
Retail | Loan modification agreement
Financing Receivable, Recorded Investment, Past Due [Line Items]
Maturity period (in years)								3 years
Percentage of interest foregone								2.00
Principal paydowns								$ 6,000
Principal reduction								(8,000)
Additional reserve deposit								$ 4,600
Retail | Loan modification agreement | LIBOR
Financing Receivable, Recorded Investment, Past Due [Line Items]
Variable rate, spread (as a percent)								5.50%
LIBOR Floor rate								6.50%
Bridge Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans sold | loan	4
Unpaid principal balance on loans	$ 296,900
Impairment loss on sale of loans			2,000
Bridge Loans | Hotel Portfolio
Financing Receivable, Recorded Investment, Past Due [Line Items]
Principal amount									$ 110,000
Purchase of loan								$ 60,000	50,000
Allowance for credit losses								7,500
Loan discount								39,900
Total discount received									$ 20,100
Bridge Loans | Retail | Loan modification agreement
Financing Receivable, Recorded Investment, Past Due [Line Items]
Principal amount								$ 26,500
Bridge Loans | Retail | Loan modification agreement | LIBOR
Financing Receivable, Recorded Investment, Past Due [Line Items]
Variable rate, spread (as a percent)								6.00%
LIBOR Floor rate								2.375%
Mezzanine Loans | Retail | Loan modification agreement
Financing Receivable, Recorded Investment, Past Due [Line Items]
Principal amount								$ 6,100
Fixed rate of interest (as a percent)								12.00%
Bridge loan and mezzanine loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loan discount			102,200
Total mortgage loans and mezzanine Loan sold			110,500		110,500
Capital investment used to be future			66,300		66,300
Fees and expenses			9,200
Additional potential loan recover			2,800		2,800
Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans past due 90 days or more still accruing interest			$ 0		$ 0		$ 0

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Loans Held-for-Sale, Net (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) loan
Loans Held-for-Sale, Net
Loans held-for-sale	$ 519,118		$ 519,118		$ 1,077,239
Fair value of future MSR	7,431		7,431		19,318
Unearned discount	(3,234)		(3,234)		(2,948)
Loans held-for-sale, net	518,935		518,935		$ 1,093,609
Unrealized impairment loss	(4,380)		(4,380)
Sale of loans held-for-sale excluding acquired loans	1,030,000	$ 1,480,000	$ 2,620,000	$ 3,320,000
Number of loans | loan			722		580
Amount of securitizations	43,400	$ 38,200	$ 43,400	38,200
Unrealized impairment loss recorded	4,100
Amortized cost of loans on nonaccrual status	0		0		$ 0
Greater than 90 Days Past Due
Loans Held-for-Sale, Net
Past Due	0		$ 0		0
US Government Sponsored-Enterprise Insured Loans
Loans Held-for-Sale, Net
Period of loans held for sale sold			60 days
Fannie Mae
Loans Held-for-Sale, Net
Loans held-for-sale, net	272,405		$ 272,405		392,876
Private Label
Loans Held-for-Sale, Net
Loans held-for-sale, net	106,002		$ 106,002		507,918
Period of loans held for sale sold			180 days
Sale of loans held-for-sale excluding acquired loans			$ 489,300	$ 449,900
Freddie Mac
Loans Held-for-Sale, Net
Loans held-for-sale, net	97,767		97,767		112,561
FHA
Loans Held-for-Sale, Net
Loans held-for-sale, net	7,835		7,835		54,532
SFR - Fixed Rate.
Loans Held-for-Sale, Net
Loans held-for-sale, net	$ 35,109		$ 35,109		$ 9,352

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Capitalized Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Capitalized Mortgage Servicing Rights
Balance at beginning of the year			$ 422,734
Balance at end of the year	$ 411,534		411,534		$ 422,734
MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of the year	422,036	$ 406,980	422,734	$ 379,974	379,974
Additions	17,123	31,971	44,095	77,009
Amortization	(14,779)	(14,667)	(29,750)	(28,871)
Write-downs and payoffs	(12,846)	(5,631)	(25,545)	(9,459)
Balance at end of the year	411,534	418,653	411,534	418,653	422,734
Prepayment fees collected	15,200	4,200	31,400	6,900
Valuation allowance	0		0		$ 0
Expected amortization of capitalized MSRs balances
2022 (six months ending 12/31/2022)	29,451		29,451
2023	57,065		57,065
2024	55,210		55,210
2025	52,744		52,744
2026	49,089		49,089
2027	43,518		43,518
Total	411,534		411,534
Thereafter	124,457		$ 124,457
MSRs | Minimum
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			8.00%
MSRs | Maximum
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			13.00%
MSRs | Weighted average
Capitalized Mortgage Servicing Rights
Percentage of MSRs discount rate			12.00%
Estimated life remaining			8 years 10 months 24 days		8 years 6 months
Originated MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of the year	398,061	367,428	$ 395,573	336,466	$ 336,466
Additions	17,123	31,971	44,095	77,009
Amortization	(13,066)	(11,796)	(25,993)	(22,875)
Write-downs and payoffs	(10,721)	(4,540)	(22,278)	(7,537)
Balance at end of the year	391,397	383,063	391,397	383,063	395,573
Acquired MSRs
Capitalized Mortgage Servicing Rights
Balance at beginning of the year	23,975	39,552	27,161	43,508	43,508
Additions	0		0
Amortization	(1,713)	(2,871)	(3,757)	(5,996)
Write-downs and payoffs	(2,125)	(1,091)	(3,267)	(1,922)
Balance at end of the year	$ 20,137	$ 35,590	$ 20,137	$ 35,590	$ 27,161

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Mortgage Servicing (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) state	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) state
Mortgage Servicing
Interest earned on total escrows	$ 1,700	$ 1,100	$ 2,600	$ 2,200
Fee-based servicing portfolio
Mortgage Servicing
Escrow Deposit	2,210,000		2,210,000		$ 1,990,000
MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	26,769,882		$ 26,769,882		$ 26,959,389
Weighted average servicing fee (as a percent)			43.60%		44.90%
MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			100.00%		100.00%
Escrow Deposit	646,500		$ 646,500		$ 682,500
Texas | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			12.00%		12.00%
New York | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			12.00%		11.00%
North Carolina | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			8.00%		9.00%
California | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			8.00%		8.00%
Florida | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			5.00%		6.00%
Georgia | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			6.00%		6.00%
New Jersey | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			6.00%		6.00%
Other States | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			43.00%		42.00%
Number of states accounted for more than 4% of UPB and related servicing revenues | state			0		0
Fannie Mae | MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	18,600,196		$ 18,600,196		$ 19,127,397
Fannie Mae | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			69.00%		71.00%
Freddie Mac | MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	4,805,068		$ 4,805,068		$ 4,943,905
Freddie Mac | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			18.00%		18.00%
Private Label | MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	2,061,813		$ 2,061,813		$ 1,711,326
Private Label | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			8.00%		6.00%
FHA | MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	1,076,237		$ 1,076,237		$ 985,063
FHA | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			4.00%		4.00%
SFR - Fixed Rate. | MSRs
Mortgage Servicing
Unpaid principal balance of loans serviced	$ 226,568		$ 226,568		$ 191,698
SFR - Fixed Rate. | MSRs | Fee-based servicing portfolio
Mortgage Servicing
UPB Percentage of Total			1.00%		1.00%

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Securities Held-to-Maturity (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Mar. 31, 2022 USD ($)
Held-to-Maturity
Face Value	$ 240,290,000	$ 210,728,000
Net Carrying Value	159,686,000	140,484,000
Unrealized Gain		9,427,000
Unrealized Loss	(970,000)
Estimated Fair Value	158,716,000	149,911,000
Allowance for Credit Losses	2,022,000	1,753,000	$ 2,043,000
B Piece bonds
Held-to-Maturity
Face Value	47,499,000	61,360,000
Net Carrying Value	37,464,000	47,615,000
Unrealized Gain	2,338,000	4,420,000
Estimated Fair Value	39,802,000	52,035,000
Allowance for Credit Losses	$ 266,000	$ 331,000	231,000
Seven B Piece Bonds | Held-to-Maturity Securities
Held-to-Maturity
Bonds retained percentage	49.00%
Number of B Piece bonds | item	7
Discounted value of bonds purchased	$ 74,700,000
Remaining of B Piece bond sold to the third party at par	51.00%
Estimated weighted average remaining maturity period	6 years 2 months 12 days
Initial face value of bonds purchased	$ 106,200,000
Agency B Piece Bonds
Held-to-Maturity
Weighted average variable interest rate (as a percent)		11.32%
Agency B Piece Bonds | Held-to-Maturity Securities
Held-to-Maturity
Weighted average variable interest rate (as a percent)	3.74%
Weighted average effective interest rate (as a percent)	12.07%
Held-to-maturity securities, estimated fiscal year
Within one year	$ 8,200,000
After one year through five years	21,300,000
After five years through ten years	800,000
After ten years	17,200,000
APL certificates
Held-to-Maturity
Face Value	192,791,000	$ 149,368,000
Net Carrying Value	122,222,000	92,869,000
Unrealized Gain		5,007,000
Unrealized Loss	(3,308,000)
Estimated Fair Value	118,914,000	97,876,000
Allowance for Credit Losses	1,756,000	$ 1,422,000	$ 1,812,000
APL certificates | Held-to-Maturity Securities
Held-to-Maturity
Face Value	$ 192,800,000
Weighted average variable interest rate (as a percent)	3.94%
Estimated weighted average remaining maturity period	8 years
Amount purchased at a discount	$ 119,000,000.0
Weighted average fixed interest rate	8.85%	9.11%
Held-to-maturity securities, estimated fiscal year
After one year through five years	$ 6,800,000
After five years through ten years	$ 186,000,000.0
APL certificates | Held-to-Maturity Securities | Minimum
Held-to-Maturity
Securities maturity term	5 years
APL certificates | Held-to-Maturity Securities | Maximum
Held-to-Maturity
Securities maturity term	10 years

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Securities Held-to-Maturity - Rollforward of Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Changes in the allowance for credit losses
Allowance for credit loss, Beginning balance	$ 2,043		$ 1,753
Provision for credit loss expense/(reversal)	(21)		269
Allowance for credit loss, Ending balance	2,022		2,022
Impairment of held-to maturity securities			0
Held-to-Maturity Securities
Changes in the allowance for credit losses
Interest income (including the amortization of discount)	5,100	$ 3,100	10,300	$ 6,000
APL certificates
Changes in the allowance for credit losses
Allowance for credit loss, Beginning balance	1,812		1,422
Provision for credit loss expense/(reversal)	(56)		334
Allowance for credit loss, Ending balance	1,756		1,756
B Piece bonds
Changes in the allowance for credit losses
Allowance for credit loss, Beginning balance	231		331
Provision for credit loss expense/(reversal)	35		(65)
Allowance for credit loss, Ending balance	$ 266		$ 266

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Investments in Equity Affiliates - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Investment in Equity Affiliates
Investment in Equity Affiliates	$ 90,855	$ 89,676
UPB of Loans to Equity Affiliates	1,688
Arbor Residential Investor LLC
Investment in Equity Affiliates
Investment in Equity Affiliates	56,916	65,756
AMAC Holdings III LLC
Investment in Equity Affiliates
Investment in Equity Affiliates	17,243	13,772
Fifth Wall Ventures
Investment in Equity Affiliates
Investment in Equity Affiliates	11,465	5,409
North Vermont Avenue
Investment in Equity Affiliates
Investment in Equity Affiliates	2,461	2,419
Lightstone Value Plus REIT L.P.
Investment in Equity Affiliates
Investment in Equity Affiliates	1,895	1,895
Docsumo Pte. Ltd.
Investment in Equity Affiliates
Investment in Equity Affiliates	450
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

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Investments in Equity Affiliates - All Investments (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022
Investment in Equity Affiliates
Income from equity affiliates		$ 6,547	$ 4,759	$ 13,759	$ 27,010
Indirect ownership percentage				9.20%
Amount of provision for credit losses		4,949	(8,853)	$ 8,090	(9,882)
Arbor Residential Investor LLC
Investment in Equity Affiliates
Income from equity affiliates		1,100	4,800	6,100	27,300
Distribution received		7,500	5,600	15,000	18,700
Indirect ownership percentage	12.30%
Equity investment distributions		7,500	$ 5,600	15,000	$ 18,700
AMAC Holdings III LLC
Investment in Equity Affiliates
Noncontrolling interest				4,900
Equity investment made				4,900
Loss on investment		600		1,100
Fifth Wall Ventures
Investment in Equity Affiliates
Noncontrolling interest				6,900
Equity investment made				6,900
Distribution from investment classified as return capital		900
Docsumo Pte. Ltd.
Investment in Equity Affiliates
Noncontrolling interest				500
Equity investment made				$ 500
Lexford Portfolio
Investment in Equity Affiliates
Distribution received		6,000
Equity investment distributions		$ 6,000
Equity Participation Interest
Investment in Equity Affiliates
Proceeds from sale						$ 2,600

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Debt Obligations - Credit and Repurchase Facilities (Details) - USD ($) $ in Thousands			1 Months Ended				6 Months Ended
	Apr. 01, 2022	Mar. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Jan. 31, 2022	Oct. 31, 2021	Jun. 30, 2022	Dec. 31, 2021
Debt Obligations
Collateral Carrying Value			$ 5,799,078				$ 5,799,078	$ 5,585,460
Maximum borrowing capacity		$ 200,000		$ 200,000
Utilization of credit facility				$ 50,000		$ 67,000
Extension of maturity date (in years)				1 year	1 year
Weighted Average Note Rate (as a percent)			3.82%				3.82%
Debt Carrying Value			$ 4,549,460				$ 4,549,460	4,481,579
$325M repurchase facility
Debt Obligations
Total committed amount	$ 450,000	325,000
$30M working capital facility
Debt Obligations
Weighted average note rate including certain fees and costs (as a percent)	3.00%
Total committed amount	$ 35,000	$ 30,000
Repurchase facility - securities (4) | B Piece bonds
Debt Obligations
Collateral Carrying Value			37,500				37,500	47,600
$500M joint repurchase facility
Debt Obligations
Maximum borrowing capacity			500,000				500,000	500,000
$35M working capital facility
Debt Obligations
Maximum borrowing capacity			35,000				35,000	35,000
$200 million repurchase facility. | SOFR
Debt Obligations
Decrease in interest rate (as a percent)				2.55%
Joint Repurchase Facility
Debt Obligations
Additional borrowing capacity			150,000				$ 150,000
Advance rate (as a percent)							80.00%
Joint Repurchase Facility | LIBOR
Debt Obligations
Variable rate, spread (as a percent)							7.00%
Joint Repurchase Facility | Minimum
Debt Obligations
Maximum borrowing capacity			2,500,000				$ 2,500,000
Joint Repurchase Facility | Maximum
Debt Obligations
Maximum borrowing capacity			3,000,000				3,000,000
Structured Transaction Business
Debt Obligations
Collateral Carrying Value			5,319,770				5,319,770	4,548,653
Unamortized deferred finance costs			$ 8,700				$ 8,700	$ 7,700
Weighted average note rate including certain fees and costs (as a percent)			4.24%				4.24%	2.51%
Leverage on loans and investment portfolio financed through credit facilities and repurchase agreements, excluding securities repurchase facility, working capital line of credit and security agreement used to finance leasehold and capital expenditure improvements at corporate office (as a percent)			77.00%				77.00%	77.00%
Weighted Average Note Rate (as a percent)			3.93%				3.93%
Debt Carrying Value			$ 4,093,907				$ 4,093,907	$ 3,525,307
Maximum advance rate			82.5		80
Maximum advance rate, threshold percentage of Principal balance (as a percent)				75
Maximum advance rate, threshold percentage of Project cost (as a percent)				60
Maximum advance rate, threshold percentage of Underlying Property Value (as a percent)				60
Structured Transaction Business | Minimum | SOFR
Debt Obligations
Variable rate, spread (as a percent)					1.75%
Structured Transaction Business | Maximum | SOFR
Debt Obligations
Variable rate, spread (as a percent)					3.50%
Structured Transaction Business | $2.5B joint repurchase facility (2)
Debt Obligations
Collateral Carrying Value			$ 2,381,351				2,381,351	1,877,930
Maximum borrowing capacity			$ 2,500,000				$ 2,500,000	2,500,000
Weighted Average Note Rate (as a percent)			4.16%				4.16%
Debt Carrying Value			$ 1,883,227				$ 1,883,227	1,486,380
Structured Transaction Business | $1B repurchase facility
Debt Obligations
Collateral Carrying Value			997,641				997,641	937,880
Maximum borrowing capacity			$ 1,000,000				$ 1,000,000	1,000,000
Weighted Average Note Rate (as a percent)			3.78%				3.78%
Debt Carrying Value			$ 724,010				$ 724,010	675,415
Structured Transaction Business | $500M repurchase facility
Debt Obligations
Maximum borrowing capacity			$ 500,000				$ 500,000	500,000
Expiration period after the lender provides written notice							6 months
Additional period to repurchase the underlying loans							6 months
Variable rate, spread (as a percent)			2.76%
Structured Transaction Business | $450M repurchase facility.
Debt Obligations
Collateral Carrying Value			$ 487,156				$ 487,156	511,269
Maximum borrowing capacity			$ 450,000				$ 450,000	450,000
Weighted Average Note Rate (as a percent)			3.64%				3.64%
Debt Carrying Value			$ 374,675				$ 374,675	397,272
Structured Transaction Business | $450M repurchase facility
Debt Obligations
Collateral Carrying Value			367,285				367,285	385,337
Maximum borrowing capacity			$ 450,000				$ 450,000	450,000
Weighted Average Note Rate (as a percent)			3.55%				3.55%
Debt Carrying Value			$ 280,199				$ 280,199	293,700
Structured Transaction Business | 399 M repurchase facility (2)
Debt Obligations
Collateral Carrying Value			487,685				487,685	289,956
Maximum borrowing capacity			$ 399,000				$ 399,000	399,000
Weighted Average Note Rate (as a percent)			3.80%				3.80%
Debt Carrying Value			$ 362,629				$ 362,629	241,450
Structured Transaction Business | $225M credit facility
Debt Obligations
Collateral Carrying Value			87,537				87,537	42,270
Maximum borrowing capacity			$ 225,000				$ 225,000	225,000
Weighted Average Note Rate (as a percent)			4.08%				4.08%
Debt Carrying Value			$ 56,637				$ 56,637	27,826
Structured Transaction Business | $200M credit facility
Debt Obligations
Collateral Carrying Value			81,577				81,577	236,538
Maximum borrowing capacity			$ 200,000				$ 200,000	200,000
Weighted Average Note Rate (as a percent)			3.16%				3.16%
Debt Carrying Value			$ 64,361				$ 64,361	177,406
Structured Transaction Business | $50M credit facility
Debt Obligations
Collateral Carrying Value			36,500				36,500	36,500
Maximum borrowing capacity			$ 50,000				$ 50,000	50,000
Weighted Average Note Rate (as a percent)			3.84%				3.84%
Debt Carrying Value			$ 29,200				$ 29,200	29,194
Structured Transaction Business | $25M credit facility
Debt Obligations
Collateral Carrying Value			7,745				7,745	1,900
Maximum borrowing capacity			$ 25,000				$ 25,000	25,000
Weighted Average Note Rate (as a percent)			4.35%				4.35%
Debt Carrying Value			$ 6,131				$ 6,131	1,235
Structured Transaction Business | $25M credit facility.
Debt Obligations
Collateral Carrying Value			3,902				3,902	14,773
Maximum borrowing capacity			$ 25,000				$ 25,000	25,000
Weighted Average Note Rate (as a percent)			4.09%				4.09%
Debt Carrying Value			$ 3,192				$ 3,192	10,218
Structured Transaction Business | $1M master security agreement
Debt Obligations
Maximum borrowing capacity			$ 1,000				$ 1,000	1,000
Weighted Average Note Rate (as a percent)			4.01%				4.01%
Debt Carrying Value			$ 321				$ 321	635
Structured Transaction Business | Repurchase facility - securities (4)
Debt Obligations
Weighted Average Note Rate (as a percent)			4.39%				4.39%
Debt Carrying Value			$ 25,634				$ 25,634	30,849
Structured Transaction Business | $97.4 M loan specific credit facilities
Debt Obligations
Collateral Carrying Value			137,700				137,700	214,300
Maximum borrowing capacity			$ 97,400				$ 97,400	97,400
Weighted Average Note Rate (as a percent)			4.07%				4.07%
Debt Carrying Value			$ 97,306				$ 97,306	153,727
Structured Transaction Business | $200 million repurchase facility.
Debt Obligations
Collateral Carrying Value			18,153				18,153
Maximum borrowing capacity			$ 200,000				$ 200,000	200,000
Weighted Average Note Rate (as a percent)			4.11%				4.11%
Debt Carrying Value			$ 7,011				$ 7,011
Structured Transaction Business | $150 million repurchase facility
Debt Obligations
Maximum borrowing capacity					$ 150,000
Structured Transaction Business | $200 million repurchase facility
Debt Obligations
Collateral Carrying Value			$ 225,538				$ 225,538
Weighted Average Note Rate (as a percent)			3.55%				3.55%
Debt Carrying Value			$ 179,374				$ 179,374
Agency Business
Debt Obligations
Collateral Carrying Value			479,308				479,308	1,036,807
Unamortized deferred finance costs			$ 3,200				$ 3,200	4,400
Weighted Average Note Rate (as a percent)			2.85%				2.85%
Debt Carrying Value			$ 455,553				$ 455,553	956,272
Agency Business | $500M repurchase facility
Debt Obligations
Collateral Carrying Value			197,293				197,293	236,527
Maximum borrowing capacity			$ 500,000				$ 500,000	500,000
Weighted Average Note Rate (as a percent)			3.16%				3.16%
Debt Carrying Value			$ 197,249				$ 197,249	236,429
Agency Business | $200M credit facility
Debt Obligations
Collateral Carrying Value			56,376				56,376	115,351
Maximum borrowing capacity			$ 200,000				$ 200,000	200,000
Weighted Average Note Rate (as a percent)			2.96%				2.96%
Debt Carrying Value			$ 56,228				$ 56,228	115,304
Agency Business | $50M credit facility
Debt Obligations
Collateral Carrying Value			1,065				1,065	9,295
Maximum borrowing capacity			$ 50,000				$ 50,000	50,000
Weighted Average Note Rate (as a percent)			3.09%				3.09%
Debt Carrying Value			$ 1,065				$ 1,065	9,295
Agency Business | $750M ASAP agreement
Debt Obligations
Collateral Carrying Value			108,877				108,877	182,140
Maximum borrowing capacity			$ 750,000				$ 750,000	750,000
Weighted Average Note Rate (as a percent)			2.23%				2.23%
Debt Carrying Value			$ 108,220				$ 108,220	182,130
Agency Business | $500M joint repurchase facility
Debt Obligations
Collateral Carrying Value			$ 100,348				$ 100,348	475,360
Weighted Average Note Rate (as a percent)			2.80%				2.80%
Debt Carrying Value			$ 77,572				$ 77,572	395,317
Agency Business | $150M credit facility
Debt Obligations
Collateral Carrying Value			14,396				14,396	16,657
Maximum borrowing capacity			$ 150,000				$ 150,000	150,000
Weighted Average Note Rate (as a percent)			2.96%				2.96%
Debt Carrying Value			$ 14,396				$ 14,396	16,544
Agency Business | $1M repurchase facility (2)
Debt Obligations
Collateral Carrying Value			953				953	1,477
Maximum borrowing capacity			$ 1,000				$ 1,000	1,000
Weighted Average Note Rate (as a percent)			3.87%				3.87%
Debt Carrying Value			$ 823				$ 823	$ 1,253

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Debt Obligations - Collateralized Loan Obligations (Details) $ in Thousands	1 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2022 USD ($) subsidiary tranche	Feb. 28, 2022 USD ($) tranche	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Debt Obligations
Proceeds from issuance of collateralized loan obligations			$ 2,525,624	$ 1,329,887
Debt, Carrying Value			$ 7,968,495		$ 5,892,810
Weighted average note rate (as a percent)			3.82%
Payoffs and paydowns of collateralized loan obligations			$ 441,000	$ 356,150
UPB			4,561,393		4,493,699
Collateralized loan obligations
Debt Obligations
Debt, Face Value			8,009,329		5,924,705
Debt, Carrying Value			$ 7,968,495		$ 5,892,810
Weighted average note rate (as a percent)			3.38%		1.59%
Collateral Loans, Unpaid Principal			$ 8,915,205		$ 6,645,088
Collateral Loans, Carrying Value			8,875,647		6,616,810
Cash, Restricted Cash			484,331		329,496
Deferred financing fees			40,800		31,900
Replacement period		2 years 6 months
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations			$ 283,100		$ 133,700
Weighted average note rate including certain fees and costs (as a percent)			3.59%		1.86%
Collateral at risk			$ 0		$ 0
CLO 19
Debt Obligations
Number of tranches of CLO notes issued | tranche	9
Number of newly-formed wholly-owned subsidiaries | subsidiary	1
Value of the tranches issued	$ 1,050,000
Debt, Face Value	$ 872,800		872,812
Debt, Carrying Value			$ 865,734
Weighted average note rate (as a percent)			3.91%
Collateral Loans, Unpaid Principal			$ 949,974
Collateral Loans, Carrying Value			944,124
Cash, Restricted Cash			60,448
Replacement period	2 years 6 months
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations	$ 73,100
Maximum period to acquire additional loan obligations	180 days
Weighted average note rate including certain fees and costs (as a percent)	2.36%
Value of portfolio loans as collateral	$ 976,900
Face value of loan obligations will be owned by the issuer	$ 1,050,000
Leverage (as a percent)	83.00%
UPB	$ 177,200
CLO 18
Debt Obligations
Number of tranches of CLO notes issued | tranche		8
Number of newly-formed wholly-owned subsidiaries | tranche		2
Value of the tranches issued		$ 1,860,000
Debt, Face Value		1,650,000	1,652,812
Debt, Carrying Value		210,100	$ 1,644,623
Weighted average note rate (as a percent)			3.35%
Collateral Loans, Unpaid Principal			$ 1,945,841
Collateral Loans, Carrying Value			1,935,490
Proceeds from issuance of collateralized loan obligations for acquiring additional loan obligations		$ 347,300
Maximum period to acquire additional loan obligations		180 days
Notional amount of residual interest retained		$ 397,200
Value of portfolio loans as collateral		1,700,000
Face value of loan obligations will be owned by the issuer		$ 2,050,000
Leverage (as a percent)		81.00%
CLO 18 | One-month LIBOR
Debt Obligations
Weighted average note rate including certain fees and costs (as a percent)		1.81%
CLO 18 | Below investment grade
Debt Obligations
Notional amount of residual interest retained		$ 210,100
CLO 17
Debt Obligations
Debt, Face Value			1,714,125		1,714,125
Debt, Carrying Value			$ 1,706,612		$ 1,705,549
Weighted average note rate (as a percent)			3.52%		1.81%
Collateral Loans, Unpaid Principal			$ 1,950,220		$ 1,914,280
Collateral Loans, Carrying Value			1,941,438		1,903,997
Cash, Restricted Cash			70,750		118,520
CLO 16
Debt Obligations
Debt, Face Value			1,237,500		1,237,500
Debt, Carrying Value			$ 1,230,942		$ 1,230,093
Weighted average note rate (as a percent)			3.14%		1.44%
Collateral Loans, Unpaid Principal			$ 1,357,413		$ 1,444,573
Collateral Loans, Carrying Value			1,351,490		1,436,743
Cash, Restricted Cash			93,500
CLO 15
Debt Obligations
Debt, Face Value			674,412		674,412
Debt, Carrying Value			$ 670,616		$ 669,723
Weighted average note rate (as a percent)			3.20%		1.49%
Collateral Loans, Unpaid Principal			$ 744,694		$ 785,761
Collateral Loans, Carrying Value			741,567		782,682
Cash, Restricted Cash			59,061		15,750
CLO 14
Debt Obligations
Debt, Face Value			655,475		655,475
Debt, Carrying Value			$ 651,772		$ 650,947
Weighted average note rate (as a percent)			3.16%		1.45%
Collateral Loans, Unpaid Principal			$ 729,933		$ 717,396
Collateral Loans, Carrying Value			727,220		715,154
Cash, Restricted Cash			30,077		53,342
CLO 13
Debt Obligations
Debt, Face Value			668,000		668,000
Debt, Carrying Value			$ 665,612		$ 665,006
Weighted average note rate (as a percent)			3.25%		1.54%
Collateral Loans, Unpaid Principal			$ 714,062		$ 740,369
Collateral Loans, Carrying Value			712,425		738,265
Cash, Restricted Cash			67,552		48,543
CLO 12
Debt Obligations
Debt, Face Value			534,193		534,193
Debt, Carrying Value			$ 532,584		$ 531,939
Weighted average note rate (as a percent)			3.33%		1.62%
Collateral Loans, Unpaid Principal			$ 523,068		$ 557,249
Collateral Loans, Carrying Value			521,893		555,974
Cash, Restricted Cash			$ 102,943		35,635
CLO 10
Debt Obligations
Debt, Face Value					441,000
Debt, Carrying Value					$ 439,553
Weighted average note rate (as a percent)					1.57%
Collateral Loans, Unpaid Principal					$ 485,460
Collateral Loans, Carrying Value					483,995
Cash, Restricted Cash					$ 57,706
Payoffs and paydowns of collateralized loan obligations		441,000
Deferred fees expensed as interest expense		$ 1,400

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Debt Obligations - Luxembourg Debt Fund (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Obligations
Secured Debt.	$ 7,968,495		$ 5,892,810
Debt, Weighted Average Interest Rate	3.82%
Gain (loss) on real estate	$ (1,350)	$ (1,370)

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Debt Obligations - Senior Unsecured Notes (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Obligations
Redemption of aggregate principal amount (as a percent)	100.00%
Senior notes carrying value	$ 1,282,498	$ 1,280,545
5.00% Convertible notes
Debt Obligations
Junior subordinated notes	$ 180,000	180,000
Interest rate (as a percent)	5.00%
4.50% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 270,000	270,000
Interest rate (as a percent)	4.50%
5.00% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 175,000	175,000
Interest rate (as a percent)	5.00%
5.625% Notes
Debt Obligations
Junior subordinated notes	$ 125,000	125,000
Interest rate (as a percent)	5.625%
4.75% Notes
Debt Obligations
Junior subordinated notes	$ 110,000	110,000
Interest rate (as a percent)	4.75%
5.75% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 90,000	90,000
Interest rate (as a percent)	5.75%
Senior Notes
Debt Obligations
Junior subordinated notes	$ 1,295,750	1,295,750
8.00% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 70,750	$ 70,750
Interest rate (as a percent)	8.00%

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Debt Obligations - Senior Unsecured Notes, Summary (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Obligations
Wtd. Avg Rate	3.82%
Redemption of aggregate principal amount (as a percent)	100.00%
Senior Notes
Debt Obligations
UPB	$ 1,295,750	$ 1,295,750
Carrying value	$ 1,282,498	$ 1,280,545
Wtd. Avg Rate	5.05%	5.05%
Deferred financing fees	$ 13,300	$ 15,200
Weighted average note rate including certain fees and costs (as a percent)	5.34%	5.34%
5.00% Convertible notes
Debt Obligations
UPB	$ 180,000	$ 180,000
Carrying value	$ 177,238	$ 177,105
Wtd. Avg Rate	5.00%	5.00%
Interest rate (as a percent)	5.00%
5.00% Convertible Notes
Debt Obligations
UPB	$ 175,000	$ 175,000
Carrying value	$ 172,605	$ 172,302
Wtd. Avg Rate	5.00%	5.00%
Interest rate (as a percent)	5.00%
8.00% Convertible Notes
Debt Obligations
UPB	$ 70,750	$ 70,750
Carrying value	$ 70,407	$ 70,202
Wtd. Avg Rate	8.00%	8.00%
Interest rate (as a percent)	8.00%
4.50% Convertible Notes
Debt Obligations
UPB	$ 270,000	$ 270,000
Carrying value	$ 266,509	$ 266,090
Wtd. Avg Rate	4.50%	4.50%
Interest rate (as a percent)	4.50%
4.50% Senior Unsecured Notes
Debt Obligations
UPB	$ 275,000	$ 275,000
Carrying value	$ 272,718	$ 272,477
Wtd. Avg Rate	4.50%	4.50%
4.75% Notes
Debt Obligations
UPB	$ 110,000	$ 110,000
Carrying value	$ 109,190	$ 109,018
Wtd. Avg Rate	4.75%	4.75%
Interest rate (as a percent)	4.75%
5.75% Convertible Notes
Debt Obligations
UPB	$ 90,000	$ 90,000
Carrying value	$ 89,321	$ 89,135
Wtd. Avg Rate	5.75%	5.75%
Interest rate (as a percent)	5.75%
5.625% Notes
Debt Obligations
UPB	$ 125,000	$ 125,000
Carrying value	$ 124,510	$ 124,216
Wtd. Avg Rate	5.63%	5.63%
Interest rate (as a percent)	5.625%

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Debt Obligations - Convertible Senior Unsecured Notes (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2019 USD ($) $ / shares
Debt Obligations
Gain (loss) on real estate			$ (1,350,000)	$ (1,370,000)
Total	$ 14,284,808,000		14,284,808,000
Convertible Senior Unsecured Notes
Debt Obligations
Junior subordinated notes	264,000,000		$ 264,000,000		$ 264,000,000
Percentage of the Notes required to be repurchased if the agreement is fundamentally changed			100.00%
Unamortized Debt Discount					2,520,000
Unamortized Deferred Financing Fees	874,000		$ 874,000		2,095,000
Total	263,126,000		263,126,000		259,385,000
Net Carrying Value, Equity Component					$ 8,684,000
Interest expense	3,800,000	$ 4,800,000	7,600,000	9,600,000
Interest expense related to cash coupon	3,100,000	3,300,000	6,300,000	6,600,000
Debt discount		$ 800,000	$ 1,300,000	1,400,000
Deferred fees expensed as interest expense	$ 700,000			$ 1,600,000
Cost of the notes (as a percent)	5.73%		5.73%		6.71%
Cost of the notes excluding the amortization of the debt discount (as a percent)					5.73%
Senior Notes
Debt Obligations
Junior subordinated notes	$ 1,295,750,000		$ 1,295,750,000		$ 1,295,750,000
Unamortized Deferred Financing Fees	13,300,000		13,300,000		15,200,000
8.00% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 70,750,000		$ 70,750,000		70,750,000
Interest rate (as a percent)	8.00%		8.00%
4.50% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 270,000,000		$ 270,000,000		270,000,000
Interest rate (as a percent)	4.50%		4.50%
4.75% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 1,000		$ 1,000			$ 264,000,000.0
Interest rate (as a percent)	4.75%		4.75%			4.75%
Proceeds received, net of estimated issuance costs						$ 256,500,000
Conversion rate of the notes to common stock, per $1,000 principal amount of notes			57.3503
Conversion price per share of common stock | $ / shares	$ 17.44		$ 17.44
4.75% Convertible Notes | First Offering
Debt Obligations
Junior subordinated notes						$ 1,000
Conversion rate of the notes to common stock, per $1,000 principal amount of notes						56.1695
Conversion price per share of common stock | $ / shares						$ 17.80
5.75% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 90,000,000		$ 90,000,000		90,000,000
Interest rate (as a percent)	5.75%		5.75%
5.625% Notes
Debt Obligations
Junior subordinated notes	$ 125,000,000		$ 125,000,000		125,000,000
Interest rate (as a percent)	5.625%		5.625%
5.00% Convertible Notes
Debt Obligations
Junior subordinated notes	$ 175,000,000		$ 175,000,000		175,000,000
Interest rate (as a percent)	5.00%		5.00%
Junior subordinated notes
Debt Obligations
Junior subordinated notes	$ 154,336,000		$ 154,336,000		154,336,000
Deferred fees expensed as interest expense			$ 1,600,000		$ 1,700,000

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Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Obligations
Debt carrying value	$ 142,758	$ 142,382
Weighted average note rate (as a percent)	3.82%
Junior subordinated notes
Debt Obligations
Debt carrying value	$ 142,800	142,400
Deferred amount Due at maturity	9,900	10,200
Deferred fees expensed as interest expense	$ 1,600	$ 1,700
Weighted average note rate (as a percent)	5.13%	3.03%
Weighted average note rate including certain fees and costs (as a percent)	5.21%	3.12%

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Debt Obligations - Debt Covenants (Details) - USD ($)	1 Months Ended					6 Months Ended
	Apr. 30, 2022	Jan. 31, 2022	Oct. 31, 2021	Jul. 31, 2021	Apr. 30, 2021	Jun. 30, 2022
CLO 12
Debt Covenants
Current overcollateralization ratio (as a percent)	118.87%	118.87%	118.87%	118.87%	118.87%	118.87%
Limit overcollateralization ratio (as a percent)						117.87%
Current interest coverage ratio (as a percent)						253.59%
Limit interest coverage ratio (as a percent)						120.00%
CLO 13
Debt Covenants
Current overcollateralization ratio (as a percent)	119.76%	119.76%	119.76%	119.76%	119.76%	119.76%
Limit overcollateralization ratio (as a percent)						118.76%
Current interest coverage ratio (as a percent)						234.87%
Limit interest coverage ratio (as a percent)						120.00%
CLO 14
Debt Covenants
Current overcollateralization ratio (as a percent)	119.76%	119.76%	119.76%	119.76%	119.76%	119.76%
Limit overcollateralization ratio (as a percent)						118.76%
Current interest coverage ratio (as a percent)						226.47%
Limit interest coverage ratio (as a percent)						120.00%
CLO 15
Debt Covenants
Current overcollateralization ratio (as a percent)	120.85%	120.85%	120.85%	120.85%	120.85%	120.85%
Limit overcollateralization ratio (as a percent)						119.85%
Current interest coverage ratio (as a percent)						226.54%
Limit interest coverage ratio (as a percent)						120.00%
CLO 16
Debt Covenants
Current overcollateralization ratio (as a percent)	121.21%	121.21%	121.21%	121.21%		121.21%
Limit overcollateralization ratio (as a percent)						120.21%
Current interest coverage ratio (as a percent)						216.65%
Limit interest coverage ratio (as a percent)						120.00%
Junior subordinated notes
Debt Covenants
Amount payable on default of senior debt						$ 0
CLO 17
Debt Covenants
Current overcollateralization ratio (as a percent)	122.51%	122.51%	122.51%			122.51%
Limit overcollateralization ratio (as a percent)						121.51%
Current interest coverage ratio (as a percent)						186.01%
Limit interest coverage ratio (as a percent)						120.00%
CLO 18
Debt Covenants
Current overcollateralization ratio (as a percent)	124.03%	124.03%				124.03%
Limit overcollateralization ratio (as a percent)						123.03%
Current interest coverage ratio (as a percent)						217.98%
Limit interest coverage ratio (as a percent)						120.00%
CLO 19
Debt Covenants
Current overcollateralization ratio (as a percent)	120.30%					120.30%
Limit overcollateralization ratio (as a percent)						119.30%
Current interest coverage ratio (as a percent)						132.93%
Limit interest coverage ratio (as a percent)						120.00%

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Allowance for Loss - Sharing Obligations (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)
Roll forward of loss contingency accrual
Provisions for loss sharing	$ (1,949)	$ 549	$ (2,611)	$ 2,201
Guarantee obligations	34,300	34,500	$ 34,300	34,500		$ 34,300
Percentage of total Fannie Mae servicing portfolio			0.10		0.11
Allowance for loss sharing obligations	18,700		$ 18,700		$ 21,700
Impact of adopting CECL	2,100		2,900
Allowance for Loan and Lease Loss, Recovery of Bad Debts	1,200
Loss-Sharing Obligation
Roll forward of loss contingency accrual
Outstanding advances under the Fannie Mae DUS program	400		400		100
Loss-Sharing Obligation | Fannie Mae Mortgage
Roll forward of loss contingency accrual
Beginning balance of the period	55,172	65,893	56,064	64,303	64,303
Provisions for loss sharing	114	716	247	2,464
Provisions reversal for loan repayments	(2,063)	(167)	(2,858)	(263)
Charge - offs, net	(170)	(797)	(400)	(859)
Ending balance of the period	53,053	$ 65,645	53,053	$ 65,645	56,064
Maximum quantifiable liability	$ 3,470,000		$ 3,470,000		$ 3,600,000

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Derivative Financial Instruments - Agency Business (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) item	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) item	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) item
Derivative Financial Instruments
Net (losses) gains from changes in the fair value of derivatives	$ 5,000	$ 9,900	$ 2,400	$ 1,200
Mortgage servicing rights	17,567	26,299	32,879	63,235
(Loss) gain on derivative instruments	8,606	(2,607)	25,992	(5,828)
Notional Value, classified in Other Assets	419,571		419,571		$ 280,654
Income from Mortgage Service Rights
Derivative Financial Instruments
(Loss) gain on derivative instruments		$ 26,300		$ 63,200
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Noninterest Income		Noninterest Income
Rate lock commitments
Derivative Financial Instruments
Notional value	62,971		62,971
Forward sale commitments
Derivative Financial Instruments
Notional value	440,979		$ 440,979
Interest Rate Swaps
Derivative Financial Instruments
Derivative, maturity term			3 months
Derivative swap default credit.			5 years
Interest Rate Swaps | Minimum
Derivative Financial Instruments
Derivative Swap Rate Period			5 years
Interest Rate Swaps | Maximum
Derivative Financial Instruments
Derivative Swap Rate Period			10 years
Interest Rate Swaps | Agency Business
Derivative Financial Instruments
Unrealized gain (loss) on derivatives			$ (100)
Interest Rate Swaps | Agency Business | Other Income
Derivative Financial Instruments
Realized gain (loss) on derivatives	5,700	$ 9,400	(23,600)	$ 6,500
Unrealized gain (loss) on derivatives	2,000	$ 3,000		$ 400
Non-Qualifying | Agency Business
Derivative Financial Instruments
Notional value	605,650		605,650		970,670
Fair Value, classified in Other Assets	4,968		4,968		1,665
Fair Value, classified in Other Liabilities	$ (1,595)		$ (1,595)		$ (1,482)
Non-Qualifying | Rate lock commitments | Agency Business
Derivative Financial Instruments
Count | item	7		7		2
Notional value	$ 62,971		$ 62,971		$ 11,250
Fair Value, classified in Other Assets	1,035		1,035		295
Fair Value, classified in Other Liabilities	$ (1,091)		$ (1,091)		$ (33)
Non-Qualifying | Forward sale commitments | Agency Business
Derivative Financial Instruments
Count | item	42		42		55
Notional value	$ 440,979		$ 440,979		$ 571,220
Fair Value, classified in Other Assets	3,933		3,933		1,370
Fair Value, classified in Other Liabilities	$ (504)		$ (504)		$ (1,449)
Non-Qualifying | Interest Rate Swaps | Agency Business
Derivative Financial Instruments
Count | item	1,017		1,017		3,882
Notional value	$ 101,700		$ 101,700		$ 388,200

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Fair Value - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Financial assets:
Loans and investments, net - Principal/Notional Amount	$ 15,033,811	$ 12,158,995
Loans and investments, net	14,832,302	11,981,048
Loans held-for-sale, net - Principal/Notional Amount	519,118	1,077,239
Loans held-for-sale, net	519,118	1,077,239
Securities, held-to-maturity, net - Principal/Notional Amount	240,290	210,728
Securities held-to-maturity, net	159,686	140,484
Derivative financial instruments - Principal/Notional Amount	419,571	280,654
Financial liabilities:
Credit and repurchase facilities, Principal/Notional Amount	4,561,393	4,493,699
Credit and repurchase facilities, Carrying value	4,549,460	4,481,579
Collateralized loan obligations	7,968,495	5,892,810
Senior unsecured notes	1,282,498	1,280,545
Convertible senior unsecured notes, net	263,126	259,385
Junior subordinated notes	142,758	142,382
Derivative financial instruments - Principal/Notional Amount	$ 84,379	301,816
Minimum
Financial liabilities:
Period of loans held for sale sold	60 days
Maximum
Financial liabilities:
Period of loans held for sale sold	180 days
Carrying Value
Financial assets:
Loans and investments, net	$ 14,832,302	11,981,048
Loans held-for-sale, net	518,935	1,093,609
Capitalized mortgage servicing rights, net	411,534	422,734
Securities held-to-maturity, net	159,686	140,484
Derivative financial instruments	4,968	1,665
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,549,460	4,481,579
Collateralized loan obligations	7,968,495
Senior unsecured notes	1,282,498
Convertible senior unsecured notes, net	263,126
Junior subordinated notes	142,758
Derivative financial instruments	1,595	1,482
Estimated Fair Value Disclosure
Financial assets:
Loans and investments, net	15,027,449	12,181,194
Loans held-for-sale, net	527,296	1,117,085
Capitalized mortgage servicing rights, net	491,853	477,323
Securities held-to-maturity, net	158,716	149,911
Derivative financial instruments	4,968	1,665
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,548,205	4,484,107
Collateralized loan obligations	7,731,113
Senior unsecured notes	1,179,563
Convertible senior unsecured notes, net	262,350
Junior subordinated notes	102,839
Derivative financial instruments	1,595	1,482
Collateralized loan obligations
Financial liabilities:
Collateralized loan obligations	7,968,495	5,892,810
Debt instrument - Principal/Notional Amount	8,009,329	5,924,705
Collateralized debt obligations | Carrying Value
Financial liabilities:
Collateralized loan obligations	7,968,495	5,892,810
Collateralized debt obligations | Estimated Fair Value Disclosure
Financial liabilities:
Collateralized loan obligations	7,731,113	5,914,453
Senior Notes
Financial liabilities:
Debt instrument - Principal/Notional Amount	1,295,750	1,295,750
Senior Notes | Carrying Value
Financial liabilities:
Debt instrument - Principal/Notional Amount	1,282,498	1,280,545
Senior Notes | Estimated Fair Value Disclosure
Financial liabilities:
Debt instrument - Principal/Notional Amount	1,179,563	1,301,708
Convertible Senior Unsecured Notes
Financial liabilities:
Debt instrument - Principal/Notional Amount	264,000	264,000
Convertible Senior Unsecured Notes | Carrying Value
Financial liabilities:
Debt instrument - Principal/Notional Amount	263,126	259,385
Convertible Senior Unsecured Notes | Estimated Fair Value Disclosure
Financial liabilities:
Debt instrument - Principal/Notional Amount	262,350	294,690
Junior subordinated notes
Financial liabilities:
Junior subordinated notes	142,800	142,400
Debt instrument - Principal/Notional Amount	154,336	154,336
Junior subordinated notes | Carrying Value
Financial liabilities:
Debt instrument - Principal/Notional Amount	142,758	142,382
Junior subordinated notes | Estimated Fair Value Disclosure
Financial liabilities:
Debt instrument - Principal/Notional Amount	$ 102,839	$ 101,698

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Fair Value - Measurement on Recurring and Nonrecurring Basis (Details) $ in Thousands, shares in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) item shares	Dec. 31, 2021 USD ($)
Financial assets:
Impaired loans, net	$ 147,131	$ 148,839
Impaired Financing Receivable, Recorded Investment	147,131	148,839
Allowance for credit losses on impaired loans	$ 85,386	86,886
Number of impaired loans | item	7
Number of impaired loans held-for-sale | item	5
Aggregate carrying value, before reserves | shares	147.1
Impairment loss	$ 4,100
Unrealized Impairment Loss	(106,000)
Carrying Value
Financial assets:
Derivative financial instruments	4,968	1,665
Financial liabilities:
Derivative financial instruments	1,595	1,482
Estimated Fair Value Disclosure
Financial assets:
Derivative financial instruments	4,968	1,665
Financial liabilities:
Derivative financial instruments	1,595	$ 1,482
Recurring basis | Carrying Value
Financial assets:
Derivative financial instruments	4,968
Financial liabilities:
Derivative financial instruments	1,595
Recurring basis | Estimated Fair Value Disclosure
Financial assets:
Derivative financial instruments	4,968
Financial liabilities:
Derivative financial instruments	1,595
Nonrecurring basis | Carrying Value
Financial assets:
Impaired loans, net	163,367
Loans held-for-investment	61,745
Loans held-for-sale	101,622
Impaired Financing Receivable, Recorded Investment	163,367
Nonrecurring basis | Estimated Fair Value Disclosure
Financial assets:
Impaired loans, net	163,367
Loans held-for-investment	61,745
Loans held-for-sale	101,622
Impaired Financing Receivable, Recorded Investment	163,367
Level 2 | Recurring basis
Financial assets:
Derivative financial instruments	3,933
Financial liabilities:
Derivative financial instruments	1,595
Level 2 | Nonrecurring basis
Financial assets:
Impaired loans, net	101,622
Loans held-for-sale	101,622
Impaired Financing Receivable, Recorded Investment	101,622
Level 3 | Recurring basis
Financial assets:
Derivative financial instruments	1,035
Level 3 | Nonrecurring basis
Financial assets:
Impaired loans, net	61,745
Loans held-for-investment	61,745
Impaired Financing Receivable, Recorded Investment	$ 61,745

XML

Fair Value - Level 3 Inputs (Details) - Level 3 $ in Thousands	Jun. 30, 2022 USD ($) item
Land
Quantitative information about Level 3 fair value measurements
Impaired loans, fair value | $	$ 50,000
Land | Measurement Input Discount Rate [Member]
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	21.50
Land | Revenue growth rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	3.00
Retail
Quantitative information about Level 3 fair value measurements
Impaired loans, fair value | $	$ 11,745
Retail | Measurement Input Discount Rate [Member]
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	11.25
Retail | Capitalization rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	9.25
Retail | Revenue growth rate
Quantitative information about Level 3 fair value measurements
Impaired loans, measurement input	3.00
Rate lock commitments
Quantitative information about Level 3 fair value measurements
Derivative financial instruments | $	$ 1,035
Derivative Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Derivative Asset, Measurement Input [Extensible List]	Measurement Input Discount Rate [Member]
Rate lock commitments | Measurement Input Discount Rate [Member]
Quantitative information about Level 3 fair value measurements
Derivative financial instruments measurement input	12.26

XML

Fair Value - Level 3 Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative assets
Beginning balance	$ 1,355	$ 1,439	$ 295	$ 1,967
Settlements	(17,254)	(23,045)	(30,937)	(58,074)
Realized gains recorded in earnings	15,899	21,606	30,642	56,107
Unrealized gains recorded in earnings	1,035	124	1,035	124
Ending balance	$ 1,035	$ 124	$ 1,035	$ 124

XML

Fair Value - Components of fair value and other relevant information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Servicing Rights	$ 8,466
Unrealized Impairment Loss	(4,380)
Total Fair Value Adjustment	4,086
Rate lock commitments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notional/Principal Amount	62,971
Fair Value of Servicing Rights	1,035
Interest Rate Movement Effect	515
Total Fair Value Adjustment	1,550
Forward sale commitments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notional/Principal Amount	440,979
Interest Rate Movement Effect	(515)
Total Fair Value Adjustment	(515)
Loans held-for-sale, net
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notional/Principal Amount	519,118
Fair Value of Servicing Rights	7,431
Unrealized Impairment Loss	(4,380)
Total Fair Value Adjustment	$ 3,051

XML

Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets:
Loans and investments, net	$ 14,832,302	$ 11,981,048
Loans held-for-sale, net	519,118	1,077,239
Securities held-to-maturity, net	159,686	140,484
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,549,460	4,481,579
Collateralized loan obligations	7,968,495	5,892,810
Senior unsecured notes	1,282,498	1,280,545
Convertible senior unsecured notes, net	263,126	259,385
Junior subordinated notes	142,758	142,382
Level 1
Financial liabilities:
Senior unsecured notes	1,179,563
Level 2
Financial assets:
Loans held-for-sale, net	519,865
Financial liabilities:
Credit and repurchase facilities, Carrying value	455,553
Convertible senior unsecured notes, net	262,350
Level 3
Financial assets:
Loans and investments, net	15,027,449
Loans held-for-sale, net	7,431
Capitalized mortgage servicing rights, net	491,853
Securities held-to-maturity, net	158,716
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,092,652
Collateralized loan obligations	7,731,113
Junior subordinated notes	102,839
Carrying Value
Financial assets:
Loans and investments, net	14,832,302	11,981,048
Loans held-for-sale, net	518,935	1,093,609
Capitalized mortgage servicing rights, net	411,534
Securities held-to-maturity, net	159,686	140,484
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,549,460	4,481,579
Collateralized loan obligations	7,968,495
Senior unsecured notes	1,282,498
Convertible senior unsecured notes, net	263,126
Junior subordinated notes	142,758
Estimated Fair Value Disclosure
Financial assets:
Loans and investments, net	15,027,449	12,181,194
Loans held-for-sale, net	527,296	1,117,085
Capitalized mortgage servicing rights, net	491,853
Securities held-to-maturity, net	158,716	149,911
Financial liabilities:
Credit and repurchase facilities, Carrying value	4,548,205	$ 4,484,107
Collateralized loan obligations	7,731,113
Senior unsecured notes	1,179,563
Convertible senior unsecured notes, net	262,350
Junior subordinated notes	$ 102,839

XML

Commitments and Contingencies - Contractual Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Agency Business Commitments
Cash collateral	$ 787,952	$ 249,090	$ 787,952	$ 249,090	$ 486,690	$ 197,470
Debt Obligations
2022 (six months ending December 31, 2022)	1,577,515		1,577,515
2023	2,404,359		2,404,359
2024	3,585,363		3,585,363
2025	1,638,303		1,638,303
2026	4,120,591		4,120,591
2027	598,707		598,707
Thereafter	359,970		359,970
Total	14,284,808		14,284,808
Minimum Annual Operating Lease Payments
2022 (six months ending December 31, 2022)	4,204		4,204
2023	8,468		8,468
2024	8,214		8,214
2025	8,268		8,268
2026	8,292		8,292
2027	6,841		6,841
Thereafter	23,373		23,373
Total	67,660		67,660
Total
2022 (six months ending December 31, 2022)	1,581,719		1,581,719
2023	2,412,827		2,412,827
2024	3,593,577		3,593,577
2025	1,646,571		1,646,571
2026	4,128,883		4,128,883
2027	605,548		605,548
Thereafter	383,343		383,343
Total	14,352,468		14,352,468
Operating lease expense	2,400	$ 2,400	4,700	$ 4,700
Unfunded CLO Commitments
Unfunded commitments related to structured loans and investments	1,220,000		1,220,000
Fannie Mae Mortgage
Agency Business Commitments
Minimum liquid assets to be maintained to meet operational liquidity requirements	18,200		$ 18,200
Period of funding for collateral requirement			48 months
Forward Contracts
Agency Business Commitments
Period of contractual commitment			60 days
Restricted liquidity arrangement - loans sold under the Fannie Mae DUS program | Fannie Mae Mortgage
Agency Business Commitments
Letter of credit assigned	45,000		$ 45,000
Cash collateral	18,900		18,900
Reserve required to fund additional restricted liquidity over the next 48 months	37,700		$ 37,700
Period of additional funding for collateral requirement			48 months
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

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Commitments and Contingencies - Litigation (Details) $ in Millions		1 Months Ended
	Jun. 15, 2011 USD ($) lawsuit defendant	Aug. 31, 2020 USD ($) lawsuit defendant	Jun. 30, 2013 USD ($) lawsuit defendant	Jun. 30, 2011 defendant lawsuit
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
Number of counts dismissed | lawsuit		9
Number of counts dismissed against defendant entities		4
Total LIBOR Floor Certificate transfers | $		$ 74.0
Total possible liability against directors | $		$ 139.0
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 who are corporate and partnership entities			16
Number of defendants named in a legal action who are individuals			10
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 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
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Arbor ESH II, LLC
Litigation
Number of lawsuits or complaints filed | lawsuit	1

XML

Variable Interest Entity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) item	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Assets:
Restricted cash	$ 787,952		$ 486,690	$ 249,090		$ 197,470
Loans and investments, net	14,832,302		11,981,048
Other assets	284,884		269,946
Total assets	17,579,590		15,073,845
Liabilities:
Collateralized loan obligations	7,968,495		5,892,810
Other liabilities	264,200		287,885
Total liabilities	14,666,594		12,523,861
Loan loss reserves related to VIEs	121,331	$ 116,382	113,241	$ 138,447	$ 147,300	$ 148,329
Consolidated VIEs
Assets:
Total assets	9,714,376		7,144,806
Liabilities:
Total liabilities	7,986,250		5,902,623
Unconsolidated VIEs
Assets:
Total assets	$ 659,281
Liabilities:
Number of VIEs where the reporting entity is not VIE's primary beneficiary and VIEs have variable interest | item	30
Carrying amount of loans and investments before reserves related to VIEs	$ 127,900
Loan loss reserves related to VIEs	77,900
Exposure to real estate debt	4,430,000
Collateralized loan obligations | Consolidated VIEs
Assets:
Restricted cash	767,432		466,523
Loans and investments, net	8,875,647		6,616,809
Other assets	71,297		61,474
Total assets	9,714,376		7,144,806
Liabilities:
Collateralized loan obligations	7,968,495		5,892,810
Other liabilities	17,755		9,813
Total liabilities	7,986,250		$ 5,902,623
Debt Securities [Member] | Unconsolidated VIEs
Assets:
Total assets	473,161
APL certificates | Unconsolidated VIEs
Assets:
Total assets	123,978
B Piece bonds | Unconsolidated VIEs
Assets:
Total assets	37,730
Equity investments | Unconsolidated VIEs
Assets:
Total assets	24,073
Agency interest only strips | Unconsolidated VIEs
Assets:
Total assets	$ 339

XML

Equity (Details) $ / shares in Units, $ in Thousands						3 Months Ended				6 Months Ended		12 Months Ended
	Jul. 27, 2022 $ / shares	May 04, 2022 $ / shares	Apr. 01, 2022 $ / shares	Mar. 04, 2022 $ / shares	Feb. 16, 2022 $ / shares	Jun. 30, 2022 Vote $ / shares shares	Mar. 31, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares	Mar. 31, 2021 shares	Jun. 30, 2022 USD ($) Vote $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares
Common stock
Proceeds from issuance of shares under public offering | $										$ 268,243	$ 328,014
Repurchase of common stock | $								$ (23,460)			(23,460)
Redemption of operating partnership units | $										$ 546	$ 21,110
Noncontrolling Interest
Preferred stock, par value (in dollars per share) | $ / shares						$ 0.01				$ 0.01		$ 0.01
Distributions
Cash dividend declared (in dollars per share) | $ / shares						$ 0.38		$ 0.34		$ 0.75	$ 0.67
Preferred Stock
Proceeds from issuance of preferred stock | $										$ 77,392	$ 222,463
Restricted common stock
Deferred Compensation
Shares withheld for taxes										130,770
Restricted common stock | Chief executive officer | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										189,873
Total grant date fair value | $										$ 3,300
Restricted common stock | Director | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										25,012
Restricted common stock | Employees
Deferred Compensation
Grants during the period (in shares)										591,367
Total grant date fair value | $										$ 10,200
Restricted common stock | Employees | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										205,389
Total grant date fair value | $										$ 3,500
Restricted common stock | Employees | First anniversaries | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										201,014
Total grant date fair value | $										$ 3,500
Restricted common stock | Employees | Second anniversaries | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										165,075
Total grant date fair value | $										$ 2,800
Restricted common stock | Employees | Third anniversaries | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										9,951
Total grant date fair value | $										$ 200
Restricted common stock | Employees | Fourth anniversaries | 2020 Plan
Deferred Compensation
Grants during the period (in shares)										9,938
Total grant date fair value | $										$ 200
Performance-based restricted stock | Chief executive officer
Deferred Compensation
Restricted stock vested during period (in shares)									381,503
Number of shares issued in net settlement									186,772
6.25% Series E preferred stock
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)										6.25%		6.25%
6.25% Series F preferred stock
Preferred Stock
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)										6.25%		6.25%
Common Stock
Common stock
Number of common stock sold (in shares)						8,229,350		9,282,479		16,455,100	19,422,879
Number of shares purchased								1,399,999			1,399,999
Repurchase of common stock | $								$ (14)			$ (14)
Distributions
Cash dividend declared (in dollars per share) | $ / shares	$ 0.39	$ 0.38			$ 0.37
Common Stock | Director | 2020 Plan
Deferred Compensation
Total grant date fair value | $										$ 400
Common Stock | 6.25% Series F preferred stock
Common stock
Number of common stock sold (in shares)						0
Preferred Stock | 6.375% Series D preferred stocks
Distributions
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares			$ 0.3984375	$ 0.3984375	0.3984375
Preferred Stock | 6.25% Series E preferred stock
Distributions
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares			0.390625	0.390625	0.390625
Preferred Stock | 6.25% Series F preferred stock
Common stock
Number of common stock sold (in shares)						0				3,292,000
Distributions
Cash dividend declared (in dollars per share) | $ / shares			$ 0.390625
Cash dividend declared on redeemable preferred stock (in dollars per share) | $ / shares				$ 0.390625	$ 0.46875
Total Arbor Realty Trust, Inc. Stockholders' Equity
Common stock
Repurchase of common stock | $								$ (23,460)			$ (23,460)
Operating Partnership Units
Noncontrolling Interest
Conversion ratio for operating partnership units to common stock shares										1
Operating Partnership Units | Special voting preferred shares
Noncontrolling Interest
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)						16,293,589				16,293,589
Voting power of outstanding stock (as a percent)										8.80%
Number of preferred stock shares paired with each OP units										1
Public offering | Common Stock
Common stock
Issued price per share (in dollars per share) | $ / shares							$ 16.57
Number of common stock sold (in shares)							7,475,000			8,980,100
Proceeds from issuance of shares under public offering | $							$ 123,700			$ 144,400
Public offering | Preferred Stock | 6.25% Series F preferred stock
Preferred Stock
Issuance of preferred stock (in shares)										3,292,000
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)										6.25%
Proceeds from issuance of preferred stock | $										$ 77,100

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Equity - Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Basic
Net income attributable to common stockholders (1)	$ 69,909	$ 69,126	$ 133,968	$ 138,606
Net income attributable to common stockholders and noncontrolling interest	$ 69,909	$ 69,126	$ 133,968	$ 138,606
Weighted average shares outstanding (in shares)	163,044,217	135,262,197	158,258,813	130,276,499
Weighted average shares outstanding (in shares)	163,044,217	135,262,197	158,258,813	130,276,499
Net income per common share (in dollars per share)	$ 0.43	$ 0.51	$ 0.85	$ 1.06
Diluted
Net income attributable to common stockholders	$ 69,909	$ 69,126	$ 133,968	$ 138,606
Net income attributable to noncontrolling interest	6,992	8,717	13,808	18,459
Interest expense on convertible notes	3,995		7,989
Net income attributable to common stockholders and noncontrolling interest	$ 80,896	$ 77,843	$ 155,765	$ 157,065
Weighted average shares outstanding (in shares)	163,044,217	135,262,197	158,258,813	130,276,499
Dilutive effect of OP Units (in shares)	16,306,745	17,056,229	16,315,869	17,307,037
Dilutive effect of restricted stock units (in shares)	15,140,481	368,431	655,489	921,187
Dilutive effect of convertible notes (in shares)	522,367	929,734	15,126,859	313,307
Weighted average shares outstanding ( in shares)	195,013,810	153,616,591	190,357,030	148,818,030
Decrease in diluted earnings per share	$ 0.41	$ 0.51	$ 0.82	$ 1.06
Mr. Ivan Kaufman | Performance-based restricted stock
Diluted
Vesting period (in years)			4 years

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Contingency [Line Items]
Provision for (benefit) from income taxes	$ 5,352	$ 10,959	$ 13,540	$ 23,451
Deferred tax (benefit) provision	(700)	100	(2,426)	4,439
Current tax provision	$ 6,100	$ 11,000	$ 15,900	19,000
Maximum
Income Tax Contingency [Line Items]
Deferred tax (benefit) provision				$ 4,500
Minimum
Income Tax Contingency [Line Items]
Federal income tax rate (as a percent)			90.00%

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Agreements and Transactions with Related Parties - Shared Services Agreement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Former manager | Support Services and Seconded Employees
Agreements and transactions with related parties
Costs for services to related party	$ 0.9	$ 0.8	$ 1.7	$ 1.6

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Agreements and Transactions with Related Parties - Other Related Party (Details)	1 Months Ended									3 Months Ended					6 Months Ended		12 Months Ended
	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Feb. 28, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021 USD ($)	Jan. 31, 2021	Mar. 31, 2020 USD ($) item	Jan. 31, 2019 USD ($)	Jun. 30, 2018 USD ($) property loan	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($) item	Mar. 31, 2019	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($) loan	Dec. 31, 2017 USD ($) item property loan	Dec. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) property
Agreements and transactions with related parties
Due to related party				$ 26,570,000						$ 27,014,000					$ 27,014,000
Due from related parties				84,318,000						53,037,000					53,037,000
Proceeds from Bridge loan on a multi family property		$ 50,000,000.0			$ 67,000,000.0
Base spread (as a percent)					3.00%
Investment made															$ 4,661,893,000	$ 2,814,170,000
Indirect ownership percentage															9.20%
(Income) loss from equity affiliates										(6,547,000)	$ (4,759,000)				$ (13,759,000)	(27,010,000)
Lexford Portfolio
Agreements and transactions with related parties
Distribution received										6,000,000.0
CMBS/Conduit
Agreements and transactions with related parties
Loans assumed				26.0
Retail property
Agreements and transactions with related parties
Property purchased				$ 32,500,000
Operating Partnership Units | Special voting preferred shares
Agreements and transactions with related parties
Number of preferred stock shares paired with each OP units | shares															1
Mature date of April 2030 | Private Label
Agreements and transactions with related parties
Fixed rate of interest (as a percent)													3.10%
Maturity date of March 2030 | Private Label | Lexford Portfolio
Agreements and transactions with related parties
Principal amount							$ 34,600,000						$ 34,600,000
Fixed rate of interest (as a percent)							3.30%
Bridge Loans | Single-Family Rental
Agreements and transactions with related parties
Loan committed															$ 6,400,000		$ 32,500,000
Investment made																	3.5
Bridge Loans | Maturity Date Of June 2021 [Member] | Lexford Portfolio
Agreements and transactions with related parties
Paydowns of principal made by borrower																		$ 250,000,000.0
Base spread (as a percent)									4.00%
Unsecured financing provided by an unsecured lender to certain parent entities of the property owners										50,000,000.0					50,000,000.0
Bridge Loan Six Multifamily Properties [Member]
Agreements and transactions with related parties
UPB converted to a mezzanine loan								$ 2,000,000.0
ACM, Certain executives and Consortium of independent outside investors | AMAC III
Agreements and transactions with related parties
Amount invested										$ 25,200,000					$ 25,200,000			$ 30,000,000.0
Ownership interest (as a percent)										18.00%					18.00%
Interest income recorded										$ 400,000	300,000				$ 700,000	600,000
ACM, Certain executives and Consortium of independent outside investors | Private Label | AMAC III
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity																		100.00%
Fixed rate of interest (as a percent)																		3.735%
Amount of loan to related party																		$ 15,600,000
ACM, Certain executives and Consortium of independent outside investors | Mature date of April 2030 | Private Label
Agreements and transactions with related parties
Principal amount												$ 63,400,000
ACM, Certain executives and Consortium of independent outside investors | Mezzanine Loans | Mature date of April 2030
Agreements and transactions with related parties
Fixed rate of interest (as a percent)													9.00%
ACM, Certain executives and Consortium of independent outside investors | AMAC III
Agreements and transactions with related parties
Loss on investment										600,000					1,100,000
ACM | Residential Mortgage Banking Company
Agreements and transactions with related parties
Interest income recorded										1,100,000	4,800,000				6,100,000	27,300,000
Noncontrolling interest in equity method investment acquired (as a percent)																					50.00%
Indirect ownership percentage						12.30%															22.50%
Acquisition purchase price																					$ 9,600,000
Cash distribution received										$ 7,500,000	5,600,000				$ 15,000,000.0	18,700,000
ACM | ACM Acquisition
Agreements and transactions with related parties
Number of shares held by related party | shares										2,535,870					2,535,870
OP units hold as part of acquisition | shares															10,634,024
Aggregate percentage of voting power held by related party										7.10%					7.10%
ACM | Preferred equity investments | Single-Family Rental
Agreements and transactions with related parties
Investment made																	$ 4,600,000
ACM | Bridge Loans
Agreements and transactions with related parties
Equity participation interest (as a percentage)																	18.90%
ACM | Bridge Loans | Single-Family Rental
Agreements and transactions with related parties
Loan committed																	$ 30,500,000
ACM | Bridge Loans | Matures in May 2023 [Member] | LIBOR
Agreements and transactions with related parties
Principal amount										$ 9,100,000					$ 9,100,000
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Maturity Date Of August 2022 [Member] | One Multifamily Property [Member]
Agreements and transactions with related parties
Principal amount																	35,400,000
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Maturity Date January 2019 [Member] | Multifamily Portfolio
Agreements and transactions with related parties
Number of properties owned | item							2						2
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Preferred equity investments | Maturity Date September 2019 [Member] | Multifamily Portfolio
Agreements and transactions with related parties
Equity investment							$ 3,400,000						$ 3,400,000
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member]
Agreements and transactions with related parties
Principal amount																		34,000,000.0
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2022 [Member]
Agreements and transactions with related parties
Principal amount																	$ 34,000,000.0
Variable rate, spread (as a percent)																	3.50%
Consortium of investors including other unaffiliated investors, certain of officers and chief executive officer | Bridge Loan Two Multifamily Properties [Member] | Maturity Date January 2019 [Member]
Agreements and transactions with related parties
Principal amount							$ 14,800,000						$ 14,800,000
Percentage of ownership interest of related party in the entity													50.00%
Consortium of investors including an immediate family member of our officers | Multifamily Portfolio | Fannie Mae Mortgage
Agreements and transactions with related parties
Percentage of maximum loss-sharing obligation unpaid principal balance																				5.00%
Principal amount																				$ 46,900,000
Percentage of ownership interest of related party in the entity																				17.60%
Interest income recorded															100,000
Consortium of investors including an immediate family member of our officers | Bridge Loan One Multifamily Property [Member]
Agreements and transactions with related parties
Principal amount																		$ 7,000,000.0
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loans | Maturity Date Of June 2021 [Member]
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity																			75.00%
Interest income recorded										600,000	700,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loans | Maturity Date Of January 2021 [Member]
Agreements and transactions with related parties
Interest income recorded																300,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loans | Maturity Date Of 2020 [Member]
Agreements and transactions with related parties
Interest income recorded											500,000				800,000	1,000,000.0
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member]
Agreements and transactions with related parties
Due to related party																			$ 9,400,000
Percentage of ownership interest of related party in the entity																			75.00%
Interest income recorded											100,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2021 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																			5.00%
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Several Multifamily Properties [Member] | Maturity Date Of January 2022 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																			1.25%
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member]
Agreements and transactions with related parties
Principal amount																			$ 21,700,000
Interest income recorded															300,000	300,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of June 2021 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																			4.75%
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan One Multifamily Property [Member] | Maturity Date Of August 2023 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																			0.25%
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021
Agreements and transactions with related parties
Principal amount																				$ 31,100,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity date of October 2021 | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																				4.00%
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of 2020 [Member]
Agreements and transactions with related parties
Principal amount																				$ 28,000,000.0
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										$ 300,000
Number of bridge loans originated | item																				2
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of 2020 [Member] | 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 [Member] | Maturity Date Of 2020 [Member] | 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 [Member] | Maturity Date January 2019 [Member]
Agreements and transactions with related parties
Interest income recorded															$ 100,000
Certain certain officers, chief executive officer, and other unaffiliated investors | Bridge Loan Two Multifamily Properties [Member] | Maturity Date Of October 2022 Member
Agreements and transactions with related parties
Base spread (as a percent)																				1.80%
Chairman and 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%
Mr. Ivan Kaufman
Agreements and transactions with related parties
Percentage of our Former Manager's outstanding membership interest of related party in another related party										35.00%					35.00%
Director
Agreements and transactions with related parties
Number of portfolios of multifamily properties										2					2
Director | Ginkgo Investment Company LLC [Member]
Agreements and transactions with related parties
Percentage of managing member																				33.00%
Immediate family member of chief executive officer
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity				10.00%
Immediate family member of chief executive officer | Matures in October 2023 [Member] | Preferred equity interest financing agreement
Agreements and transactions with related parties
Interest income recorded										$ 300,000
Immediate family member of chief executive officer | Preferred equity investments | Matures in October 2023 [Member]
Agreements and transactions with related parties
Fixed rate of interest (as a percent)																	12.00%
Immediate family member of chief executive officer | Preferred equity investments | Matures in April 2023 [Member]
Agreements and transactions with related parties
Fixed rate of interest (as a percent)																	12.00%
Immediate family member of chief executive officer | Bridge Loans
Agreements and transactions with related parties
Equity participation interest (as a percentage)																	21.80%
Immediate family member of chief executive officer | Bridge Loans | Matures in October 2023 [Member]
Agreements and transactions with related parties
Base spread (as a percent)																	5.50%
Interest income recorded											100,000				$ 500,000	200,000
Immediate family member of chief executive officer | Bridge Loans | Matures in October 2023 [Member] | LIBOR
Agreements and transactions with related parties
LIBOR floor (as a percentage)																	0.75%
Immediate family member of chief executive officer | Bridge Loans | Matures in May 2023 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)																	5.50%
LIBOR floor (as a percentage)																	0.75%
Immediate family member of chief executive officer | Bridge Loans | Matures in April 2023 [Member]
Agreements and transactions with related parties
Interest income recorded										300,000	200,000				600,000	300,000
Lexford Portfolio | Bridge Loans | Maturity Date Of June 2021 [Member]
Agreements and transactions with related parties
Principal amount									$ 280,500,000
Distribution received											$ 6,000,000.0
Maximum exposure under guaranty										608,900,000					608,900,000
Number of bridge loans originated | loan									12
Number of multifamily properties renovated | property									72
Entity controlled by our chief executive officer
Agreements and transactions with related parties
Reimbursement for flights chartered by the company's executives															700,000	100,000
Certain Officers And Managers [Member] | Mezzanine Loans | Maturity Date Of January 2024 [Member]
Agreements and transactions with related parties
Fixed rate of interest (as a percent)								10.00%
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 2019 [Member]
Agreements and transactions with related parties
Number of properties owned | property																						6
Base spread (as a percent)														4.50%
Interest income recorded															100,000
Number of bridge loans paid off																		28,300,000	4	1
Proceeds from repayment in full																		$ 10,900,000		$ 6,800,000
Remaining bridge loan from repayment																		$ 12,900,000
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 2019 [Member] | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)														0.25%
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 2019 [Member] | Minimum
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity														10.50%
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date Of 2019 [Member] | Maximum
Agreements and transactions with related parties
Percentage of ownership interest of related party in the entity														12.00%
Certain Officers And Managers [Member] | Bridge Loan Six Multifamily Properties [Member] | Maturity Date January 2019 [Member]
Agreements and transactions with related parties
Principal amount																						$ 48,000,000.0
Ginkgo Investment Company LLC [Member] | Fannie Mae Mortgage
Agreements and transactions with related parties
Loan purchased a multifamily apartment complex which assumed																				$ 8,300,000
Percentage of maximum loss-sharing obligation unpaid principal balance																				20.00%
Servicing revenue															$ 100,000	100,000
Percentage of loan assumption fee																				1.00%
Percentage of ownership after transaction															3.60%
Consortium Of Affiliated Investors [Member] | Lexford Portfolio
Agreements and transactions with related parties
Management fee, percentage of gross revenues of underlying properties															4.75%
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity date of March 2024
Agreements and transactions with related parties
Interest income recorded										0.8					$ 1,500,000	$ 700,000
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity date of March 2024 | LIBOR
Agreements and transactions with related parties
Base spread (as a percent)												3.75%
LIBOR floor (as a percentage)												0.25%
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity Date Of March 2025
Agreements and transactions with related parties
Principal amount			$ 39,400,000
Interest income recorded										100,000					100,000
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity Date Of March 2025 | LIBOR
Agreements and transactions with related parties
Equity participation interest (as a percentage)			2.25%
Base spread (as a percent)			4.00%
LIBOR floor (as a percentage)			0.25%
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity Date Of April 2025 [Member]
Agreements and transactions with related parties
Principal amount	$ 67,100,000
Interest income recorded										$ 100,000					$ 100,000
Real estate investment fund sponsored and managed by Chief executive officer and immediate family member of chief executive officer | Bridge Loans | Maturity Date Of April 2025 [Member] | SOFR
Agreements and transactions with related parties
Equity participation interest (as a percentage)	2.25%
Base spread (as a percent)	4.625%
LIBOR floor (as a percentage)	0.25%
LLC | LLC
Agreements and transactions with related parties
Amount invested				$ 4,200,000
Ownership interest (as a percent)				49.30%
Promissory note with AMC
Agreements and transactions with related parties
Related party financing					$ 40,000,000.0
Outstanding principal balance of related party financing					$ 40,000,000.0

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Segment Information - Statements of Income (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) item	Jun. 30, 2021 USD ($)
Segment Information
Interest income	$ 201,328	$ 105,148	$ 368,026	$ 196,292
Interest expense	107,067	46,378	189,627	88,562
Net interest income	94,261	58,770	178,399	107,730
Other revenue:
Gain on sales, including fee-based services, net	16,510	40,901	18,166	69,768
Mortgage servicing rights	17,567	26,299	32,879	63,235
Servicing revenue	35,493	29,982	71,519	59,721
Amortization of MSRs	(14,779)	(14,667)	(29,750)	(28,871)
Property operating income	290		586
Gain (loss) on derivative instruments, net	8,606	(2,607)	25,992	(5,828)
Other income, net	(13,249)	1,263	(10,048)	1,943
Total other revenue	50,438	81,171	109,344	159,968
Other expenses:
Employee compensation and benefits	38,900	43,700	80,925	86,674
Selling and administrative	13,188	11,133	27,735	21,947
Property operating expenses	542	129	1,077	272
Depreciation and amortization	2,031	1,788	4,014	3,543
Provision for loss sharing (net of recoveries)	(1,949)	549	(2,611)	2,201
Provision for credit losses (net of recoveries)	5,067	(7,815)	7,426	(8,890)
Total other expenses	57,779	49,484	118,566	105,747
Income before extinguishment of debt, income from equity affiliates and income taxes	86,920	90,457	169,177	161,951
Loss on extinguishment of debt			(1,350)	(1,370)
Gain on sale of real estate				1,228
Income from equity affiliates	6,547	4,759	13,759	27,010
Provision for income taxes	(5,352)	(10,959)	(13,540)	(23,451)
Net income	88,115	84,257	168,046	165,368
Preferred stock dividends	11,214	6,414	20,270	8,303
Net income attributable to noncontrolling interest	6,992	8,717	13,808	18,459
Net income attributable to common stockholders	69,909	69,126	$ 133,968	138,606
Reporting segments | item			2
Operating segments
Other expenses:
Net income attributable to noncontrolling interest	6,992
Net income attributable to common stockholders	(6,992)
Operating segments | Structured Transaction Business
Segment Information
Interest income	192,047	96,498	$ 348,308	179,708
Interest expense	103,165	42,748	181,367	80,972
Net interest income	88,882	53,750	166,941	98,736
Other revenue:
Property operating income	290		586
Other income, net	(9,328)	1,255	(6,131)	1,935
Total other revenue	(9,038)	1,255	(5,545)	1,935
Other expenses:
Employee compensation and benefits	13,866	11,907	29,352	23,484
Selling and administrative	6,429	5,248	13,838	9,761
Property operating expenses	542	129	1,077	272
Depreciation and amortization	858	615	1,668	1,197
Provision for credit losses (net of recoveries)	5,088	(8,333)	7,157	(9,362)
Total other expenses	26,783	9,566	53,092	25,352
Income before extinguishment of debt, income from equity affiliates and income taxes	53,061	45,439	108,304	75,319
Loss on extinguishment of debt			(1,350)	(1,370)
Income from equity affiliates	6,547	4,759	13,759	27,010
Provision for income taxes	(255)	(682)	(1,687)	(5,665)
Net income	59,353	49,516	119,026	95,294
Preferred stock dividends	11,214	6,414	20,270	8,303
Net income attributable to common stockholders	48,139	43,102	98,756	86,991
Operating segments | Agency Business
Segment Information
Interest income	9,281	8,650	19,718	16,584
Interest expense	3,902	3,630	8,260	7,590
Net interest income	5,379	5,020	11,458	8,994
Other revenue:
Gain on sales, including fee-based services, net	16,510	40,901	18,166	69,768
Mortgage servicing rights	17,567	26,299	32,879	63,235
Servicing revenue	35,493	29,982	71,519	59,721
Amortization of MSRs	(14,779)	(14,667)	(29,750)	(28,871)
Gain (loss) on derivative instruments, net	8,606	(2,607)	25,992	(5,828)
Other income, net	(3,921)	8	(3,917)	8
Total other revenue	59,476	79,916	114,889	158,033
Other expenses:
Employee compensation and benefits	25,034	31,793	51,573	63,190
Selling and administrative	6,759	5,885	13,897	12,186
Depreciation and amortization	1,173	1,173	2,346	2,346
Provision for loss sharing (net of recoveries)	(1,949)	549	(2,611)	2,201
Provision for credit losses (net of recoveries)	(21)	518	269	472
Total other expenses	30,996	39,918	65,474	80,395
Income before extinguishment of debt, income from equity affiliates and income taxes	33,859	45,018	60,873	86,632
Gain on sale of real estate				1,228
Provision for income taxes	(5,097)	(10,277)	(11,853)	(17,786)
Net income	28,762	34,741	49,020	70,074
Net income attributable to common stockholders	$ 28,762	34,741	49,020	70,074
Other / Eliminations
Other expenses:
Net income attributable to noncontrolling interest		8,717	13,808	18,459
Net income attributable to common stockholders		$ (8,717)	$ (13,808)	$ (18,459)

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Segment Information - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 341,991	$ 404,580	$ 215,658	$ 339,528
Restricted cash	787,952	486,690	$ 249,090	$ 197,470
Loans and investments, net	14,832,302	11,981,048
Loans held-for-sale, net	518,935	1,093,609
Capitalized mortgage servicing rights, net	411,534	422,734
Securities held-to-maturity, net	159,686	140,484
Investments in equity affiliates	90,855	89,676
Goodwill and other intangible assets	98,414	100,760
Other assets and due from related party	337,921	354,264
Total assets	17,579,590	15,073,845
Liabilities:
Debt obligations	14,206,337	12,056,701
Allowance for loss-sharing obligations	53,053	56,064
Other liabilities and due to related parties	407,204	411,096
Total liabilities	14,666,594	12,523,861
Structured Transaction Business | Operating segments
Assets:
Cash and cash equivalents	94,983	142,771
Restricted cash	769,009	468,013
Loans and investments, net	14,832,302	11,981,048
Investments in equity affiliates	90,855	89,676
Goodwill and other intangible assets	12,500	12,500
Other assets and due from related party	272,679	285,600
Total assets	16,072,328	12,979,608
Liabilities:
Debt obligations	13,750,783	11,100,429
Other liabilities and due to related parties	311,873	278,726
Total liabilities	14,062,656	11,379,155
Agency Business | Operating segments
Assets:
Cash and cash equivalents	247,008	261,809
Restricted cash	18,943	18,677
Loans held-for-sale, net	518,935	1,093,609
Capitalized mortgage servicing rights, net	411,534	422,734
Securities held-to-maturity, net	159,686	140,484
Goodwill and other intangible assets	85,914	88,260
Other assets and due from related party	65,242	68,664
Total assets	1,507,262	2,094,237
Liabilities:
Debt obligations	455,554	956,272
Allowance for loss-sharing obligations	53,053	56,064
Other liabilities and due to related parties	95,331	132,370
Total liabilities	$ 603,938	$ 1,144,706

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Segment Information - Origination Data (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($) loan	Mar. 31, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($) loan
Segment Information
Origination Volumes	$ 1,184,282,000	$ 1,194,344,000	$ 2,654,479,000	$ 2,159,414,000
Loan Sales Data:
Gain (loss) on derivative instruments, net	8,606,000	(2,607,000)		25,992,000	$ (5,828,000)
Loan Sales	$ 1,030,703,000	$ 1,482,109,000		$ 2,617,418,000	$ 3,324,000,000
Sales margin (fee-based services as a % of loan sales)	1.60%	2.76%		1.35%	2.10%
MSR rate (MSR income as a % of loan commitments)	1.48%	2.20%		1.52%	2.38%
SFR - Fixed Rate
Segment Information
Origination Volumes	$ 34,334,000	$ 11,996,000		$ 39,205,000	$ 11,996,000
Private Label
Loan Sales Data:
Gain (loss) on derivative instruments, net				17,100,000
FHA
Loan Sales Data:
Loan Sales	75,101,000	163,602,000		146,917,000	230,005,000
Structured Transaction Business
Segment Information
Total new loan originations	2,047,599,000	1,838,945,000		4,876,454,000	2,926,871,000
Loan payoffs / paydowns	1,122,407,000	662,940,000		1,788,958,000	895,968,000
Structured Transaction Business | Bridge Loans
Segment Information
Total new loan originations	2,047,599,000	1,800,688,000		4,868,315,000	2,806,376,000
Structured Transaction Business | Mezzanine Loans
Segment Information
Total new loan originations		38,257,000		8,139,000	94,257,000
Structured Transaction Business | Other loans
Segment Information
Total new loan originations					26,238,000
Structured Transaction Business | SFR - Fixed Rate | Bridge Loans
Segment Information
Loans committed	$ 185,200,000	$ 40,000,000.0		$ 268,500,000	$ 138,400,000
Number of loans under the loan portfolio	36	25		71	43
Total loan commitment	$ 155,000,000.0	$ 70,900,000		$ 288,400,000	$ 114,200,000
Agency Business
Segment Information
Origination Volumes	1,269,184,000	1,313,352,000		2,107,693,000	2,710,986,000
Agency Business | SFR - Fixed Rate
Loan Sales Data:
Loan Sales	12,862,000	11,996,000		12,862,000	75,294,000
Agency Business | Fannie Mae
Segment Information
Origination Volumes	665,449,000	637,494,000		1,115,129,000	1,701,477,000
Loan Sales Data:
Loan Sales	569,048,000	722,499,000		1,235,592,000	2,159,865,000
Agency Business | Private Label
Segment Information
Origination Volumes	407,691,000	155,914,000		706,763,000	270,631,000
Agency Business | Freddie Mac
Segment Information
Origination Volumes	83,346,000	377,184,000		156,242,000	529,638,000
Loan Sales Data:
Loan Sales	362,442,000	134,122,000		721,528,000	408,946,000
Agency Business | FHA
Segment Information
Origination Volumes	78,364,000	130,764,000		90,354,000	197,244,000
Loan Sales Data:
Loan Sales	$ 11,250,000	$ 449,890,000		$ 500,519,000	$ 449,890,000

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Segment Information - Key Servicing Metrics (Details) - Agency Business - MSRs - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Segment Information
Servicing Portfolio UPB	$ 26,769,882	$ 26,959,389
Wtd. Avg. Servicing Fee Rate (basis points)	0.436%	44.90%
Wtd. Avg. Life of Servicing Portfolio (in years)	8 years 10 months 24 days	8 years 9 months 18 days
SFR - Fixed Rate
Segment Information
Servicing Portfolio UPB	$ 226,568
Wtd. Avg. Servicing Fee Rate (basis points)	20.00%
Wtd. Avg. Life of Servicing Portfolio (in years)	6 years 3 months 18 days
Fannie Mae
Segment Information
Servicing Portfolio UPB	$ 18,600,196	$ 19,127,397
Wtd. Avg. Servicing Fee Rate (basis points)	52.60%	53.50%
Wtd. Avg. Life of Servicing Portfolio (in years)	8 years 2 months 12 days	8 years
Freddie Mac
Segment Information
Servicing Portfolio UPB	$ 4,805,068	$ 4,943,905
Wtd. Avg. Servicing Fee Rate (basis points)	26.40%	27.10%
Wtd. Avg. Life of Servicing Portfolio (in years)	9 years 6 months	9 years 3 months 18 days
Private Label
Segment Information
Servicing Portfolio UPB	$ 2,061,813	$ 1,711,326
Wtd. Avg. Servicing Fee Rate (basis points)	20.00%	20.00%
Wtd. Avg. Life of Servicing Portfolio (in years)	8 years 4 months 24 days	8 years 3 months 18 days
Private Label | SFR - Fixed Rate
Segment Information
Servicing Portfolio UPB		$ 191,698
Wtd. Avg. Servicing Fee Rate (basis points)		20.00%
Wtd. Avg. Life of Servicing Portfolio (in years)		6 years 6 months
FHA
Segment Information
Servicing Portfolio UPB	$ 1,076,237	$ 985,063
Wtd. Avg. Servicing Fee Rate (basis points)	15.10%	15.40%
Wtd. Avg. Life of Servicing Portfolio (in years)	19 years 6 months	21 years