Business Combination (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the Company’s purchase price allocation as of the acquisition date:

	October 3, 2022
Purchase Price:	(In thousands)
Cash	$	38,886
Investment in unconsolidated entity, at fair value	38,886
Total Consideration	77,772
Allocated to:
Cash and cash equivalents	20,368
Restricted cash	2,250
Loans, at fair value	7,698,426
Loan commitments, at fair value	3,090
Mortgage servicing rights, at fair value	8,174
Real estate owned	8,511
Financial derivatives—assets, at fair value	7,121
Due from brokers	7,534
Other assets	51,475
Intangible assets, net(2)	3,500
Total assets acquired	7,810,449
HMBS related obligations, at fair value	7,448,524
Other secured borrowings	218,261
Interest payable	1,273
Accrued expenses and other liabilities	51,592
Total liabilities assumed	7,719,650
Total identifiable net assets	90,799
Non-controlling interests(1)	2,237
Total net assets acquired	88,562
Deferred tax liability related to bargain purchase gain	2,858
Total net assets acquired less deferred tax liability	85,704
Bargain purchase gain	$	7,932

(1)Represents net assets of Longbridge not acquired by the Company.

(2)See Note 10 for additional details on intangibles assets acquired by the Company.

Business Acquisition, Pro Forma Information

The following table provides unaudited proforma information for the combined entity for the year ended December 31, 2022 and 2021, after giving effect to the Longbridge Transaction, including associated transaction costs and various other adjustments, and is intended to reflect the impact of the consolidation of Longbridge by the Company.

	Year Ended December 31,
(In thousands)	2022		2021
Interest income	$	289,082	$	179,432
Total other income (loss)(1)	(45,772)		123,508
Earnings (losses) from investments in unconsolidated entities(2)	(26,511)		44,217
Net Income (Loss)(3)(4)	(75,095)		168,280

(1)Includes $7.9 million bargain purchase for the year ended December 31, 2021 and excludes such bargain purchase gain for the year ended December 31, 2022.

(2)For the years ended December 31, 2022 and 2021, includes an adjustment to reverse $(37.1) million and $13.9 million of net unrealized and realized gains (losses) recognized by the Company related to its existing non-controlling equity interest in Longbridge, for which the Company had elected the fair value option as provided for under ASC 825, Financial Instruments.

(3)Reflects adjustment for the amortization expense related to intangible assets acquired of $0.4 million and $1.0 million, for the years ended December 31, 2022 and 2021, respectively. See Note 10 for additional details on the Company's intangible assets.

(4)Includes an adjustment to recognize a $2.9 million income tax benefit related to the bargain purchase gain for the year ended December 31, 2021 and an adjustment to reverse such amount for the year ended December 31, 2022

Schedule of revenue and net income related to acquired business

Schedule of Income from Consolidated Subsidiary Subsequent to Business Combination

The following table summarizes interest income, total other income (loss), and net income (loss) of Longbridge that has been recognized by the Company from the date of the Longbridge Transaction through December 31, 2022.

(In thousands)	Year Ended December 31, 2022
Interest income	$	2,859
Total other income (loss)	39,935
Net Income (Loss)	14,492