FAIR VALUE	3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Valuation Allowance and Fair Value Measurement of Loans, Real Estate Held for Sale, Other REO Our valuation analysis process and procedures are disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. We perform a valuation analysis of our loans, REO held for sale, and other REO on a quarterly basis. We consider all relevant, material circumstances to determine if, and the extent to which, a valuation allowance is required. Impairment for collateral dependent loans is measured at the balance sheet date based on the then fair value of the collateral in relation to contractual amounts due under the terms of the applicable loan if foreclosure is probable. Substantially all of our loans in default are deemed to be collateral dependent. REO assets that are classified as held for sale and other REO are measured at the lower of carrying amount or fair value, less estimated cost to sell. If an asset is considered impaired, an impairment loss is recognized for the difference between the asset’s carrying amount and its fair value, less estimated cost to sell. If we elect to change the disposition strategy for our other REO, and such assets were deemed to be held for sale, we may record additional impairment charges, and the amounts could be significant. Selection of Single Best Estimate of Value The results of our valuation efforts generally provide a range of values for the collateral valued or REO assets rather than a single value. The selection of a value from within a range of values depends upon general overall market conditions as well as specific market conditions for each property valued and its stage of entitlement or development. In selecting the single best estimate of value, we consider the information in any relevant valuation reports, credible purchase offers received and agreements executed, as well as multiple observable and unobservable inputs. Valuation Conclusions Based on the results of our evaluation and analysis, we recorded no non-cash provision for credit losses or impairment losses during the three months ended March 31, 2020 or 2019. However, we recorded recoveries of investment and credit losses totaling $1.8 million during the three months ended March 31, 2020, resulting from the collection of cash and other assets recovered from certain guarantors on certain mezzanine loans. No recoveries were recorded during the three months ended March 31, 2019. As of March 31, 2020 and December 31, 2019, the valuation allowance on our mortgage loans totaled $12.7 million, representing 100.0% of the total outstanding loan principal and accrued interest balances. With the existing valuation allowance recorded as of March 31, 2020, we believe that, as of that date, the fair value of our loans, REO assets held for sale, and other REO is adequate in relation to the net carrying value of the related assets and that no additional valuation allowance or impairment is considered necessary. While the above results reflect management’s assessment of fair value as of March 31, 2020, based on currently available data, we will continue to evaluate our loans and REO assets to determine the appropriateness of the carrying value of such assets. Depending on market conditions, such updates may yield materially different values and potentially increase or decrease the valuation allowance for loans or impairment charges for REO assets.

FAIR VALUE

Valuation Allowance and Fair Value Measurement of Loans, Real Estate Held for Sale, Other REO

Our valuation analysis process and procedures are disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. We perform a valuation analysis of our loans, REO held for sale, and other REO on a quarterly basis. We consider all relevant, material circumstances to determine if, and the extent to which, a valuation allowance is required.

Impairment for collateral dependent loans is measured at the balance sheet date based on the then fair value of the collateral in relation to contractual amounts due under the terms of the applicable loan if foreclosure is probable. Substantially all of our loans in default are deemed to be collateral dependent.

REO assets that are classified as held for sale and other REO are measured at the lower of carrying amount or fair value, less estimated cost to sell. If an asset is considered impaired, an impairment loss is recognized for the difference between the asset’s carrying amount and its fair value, less estimated cost to sell. If we elect to change the disposition strategy for our other REO, and such assets were deemed to be held for sale, we may record additional impairment charges, and the amounts could be significant.

Selection of Single Best Estimate of Value

The results of our valuation efforts generally provide a range of values for the collateral valued or REO assets rather than a single value. The selection of a value from within a range of values depends upon general overall market conditions as well as specific market conditions for each property valued and its stage of entitlement or development. In selecting the single best estimate of value, we consider the information in any relevant valuation reports, credible purchase offers received and agreements executed, as well as multiple observable and unobservable inputs.

Valuation Conclusions

Based on the results of our evaluation and analysis, we recorded no non-cash provision for credit losses or impairment losses during the three months ended March 31, 2020 or 2019. However, we recorded recoveries of investment and credit losses totaling $1.8 million during the three months ended March 31, 2020, resulting from the collection of cash and other assets recovered from certain guarantors on certain mezzanine loans. No recoveries were recorded during the three months ended March 31, 2019.

As of March 31, 2020 and December 31, 2019, the valuation allowance on our mortgage loans totaled $12.7 million, representing 100.0% of the total outstanding loan principal and accrued interest balances. With the existing valuation allowance recorded as of March 31, 2020, we believe that, as of that date, the fair value of our loans, REO assets held for sale, and other REO is adequate in relation to the net carrying value of the related assets and that no additional valuation allowance or impairment is considered necessary. While the above results reflect management’s assessment of fair value as of March 31, 2020, based on currently available data, we will continue to evaluate our loans and REO assets to determine the appropriateness of the carrying value of such assets. Depending on market conditions, such updates may yield materially different values and potentially increase or decrease the valuation allowance for loans or impairment charges for REO assets.