Loan Securitization/Sale Activities	9 Months Ended
Sep. 30, 2013
Loan Securitization/Sale Activities
Loan Securitization/Sale Activities	12. Loan Securitization/Sale Activities As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transfer of control. Unless otherwise described below, the sales during the three and nine months ended September 30, 2013 met the criteria for sale accounting. Within LNR, we originate commercial mortgage loans with the intent to sell these mortgage loans to SPEs for the purposes of securitization. These SPEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the SPE. In certain instances, we retain a subordinated interest in the SPE and serve as special servicer for the SPE. During the three months ended September 30, 2013 and the LNR Stub Period, we sold $363.7 million and $814.8 million, respectively, par value of loans held-for-sale from our conduit platform for their fair values of $375.2 million and $851.5 million, respectively. During the three months ended September 30, 2013 and the LNR Stub Period, the sale proceeds were used in part to repay $272.1 million and $610.4 million, respectively, of the outstanding balance of the repurchase agreements associated with these loans. Within the Real Estate Investment Lending segment (refer to Note 24), we originate or acquire loans and then subsequently sell a senior portion, which can be represented in various forms including first mortgages, A-Notes and senior participations. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. During the third quarter 2013, we sold $261.6 million in face amount of first mortgage loans, including a $100.0 million A-note into securitization. LNR was engaged as the special servicer in the securitization transaction, which represents a form of continuing involvement that we concluded was not significant and therefore accounted for the transaction as a sale. During the second quarter 2013, we concurrently sold senior participations in two separate B-Notes, which generated $95.0 million in aggregate proceeds. We retained the subordinated interests and therefore accounted for the sales as secured borrowings as required by GAAP. In addition, we sold first mortgages in May and June where we held and retained mezzanine loans. These sales generated $52.9 million in total proceeds. During the three months ended March 31, 2013, a related party venture that we consolidate (refer to Note 11) sold its first mortgage loan to independent third parties. We immediately thereafter purchased a pari-passu participation in the loan such that our economic interest in the loan was effectively unchanged. We did not recognize any gain on sale from these transactions given that we held the same economic interest in the first mortgage loan after they were consummated.

12. Loan Securitization/Sale Activities

As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transfer of control. Unless otherwise described below, the sales during the three and nine months ended September 30, 2013 met the criteria for sale accounting.

Within LNR, we originate commercial mortgage loans with the intent to sell these mortgage loans to SPEs for the purposes of securitization. These SPEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the SPE. In certain instances, we retain a subordinated interest in the SPE and serve as special servicer for the SPE. During the three months ended September 30, 2013 and the LNR Stub Period, we sold $363.7 million and $814.8 million, respectively, par value of loans held-for-sale from our conduit platform for their fair values of $375.2 million and $851.5 million, respectively. During the three months ended September 30, 2013 and the LNR Stub Period, the sale proceeds were used in part to repay $272.1 million and $610.4 million, respectively, of the outstanding balance of the repurchase agreements associated with these loans.

Within the Real Estate Investment Lending segment (refer to Note 24), we originate or acquire loans and then subsequently sell a senior portion, which can be represented in various forms including first mortgages, A-Notes and senior participations. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. During the third quarter 2013, we sold $261.6 million in face amount of first mortgage loans, including a $100.0 million A-note into securitization. LNR was engaged as the special servicer in the securitization transaction, which represents a form of continuing involvement that we concluded was not significant and therefore accounted for the transaction as a sale. During the second quarter 2013, we concurrently sold senior participations in two separate B-Notes, which generated $95.0 million in aggregate proceeds. We retained the subordinated interests and therefore accounted for the sales as secured borrowings as required by GAAP. In addition, we sold first mortgages in May and June where we held and retained mezzanine loans. These sales generated $52.9 million in total proceeds. During the three months ended March 31, 2013, a related party venture that we consolidate (refer to Note 11) sold its first mortgage loan to independent third parties. We immediately thereafter purchased a pari-passu participation in the loan such that our economic interest in the loan was effectively unchanged. We did not recognize any gain on sale from these transactions given that we held the same economic interest in the first mortgage loan after they were consummated.