Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Significant Accounting Policies

Schedule of reclassification adjustments in balance sheet

December 31, 2012 Consolidated Balance Sheet (amounts in thousands)

Financial Statement Caption	Amount As Previously Reported	Reclassification Adjustment		Amount as Adjusted
Mortgage-backed securities, available-for-sale, at fair value	862,587	(862,587	)(a)	—
Investment securities	—	862,587	(a)
		21,667	(b)	884,254
Other investments	221,983	(21,667	)(b)
		(167,998	)(c)
		(32,318	)(d)	—
Residential real estate, net	—	99,115	(c)	99,115
Non-performing residential loans	—	68,883	(c)	68,883
Investment in unconsolidated entities	—	32,318	(d)	32,318
Accounts payable, accrued expenses and other liabilities	—	21,204	(e)
		8,890	(e)	30,094
Accounts payable and accrued expenses	8,890	(8,890	)(e)	—
Other liabilities	21,204	(21,204	)(e)	—

(a) Mortgage-backed securities, available-for-sale, at fair value are now included in “Investment securities,” which is a new caption in the September 30, 2013 balance sheet.

(b) There were $21.7 million of marketable equity securities reported within “Other investments” as of December 31, 2012, which are now classified as “Investment securities,” a new caption in the September 30, 2013 balance sheet.

(c) Our investments in residential real estate and non-performing residential loans have increased significantly during 2013, and are now separately reported in the September 30, 2013 balance sheet. Such amounts were classified within “Other investments” as of December 31, 2012.

(d) Represents investments in unconsolidated entities that were classified within “Other investments” as of December 31, 2012. Such investments are now reported within “Investment in unconsolidated entities,” which is a new caption in the September 30, 2013 balance sheet.

(e) We have combined accounts payable, accrued expenses and other liabilities into one caption in the September 30, 2013 balance sheet. Other liabilities were presented separately in the December 31, 2012 balance sheet.

Schedule of reclassification adjustments in statements of operations

Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, 2012
 (amounts in thousands)

Financial Statement Caption	Amount As Previously Reported		Reclassification Adjustment		Amount as Adjusted
Other revenues	—		180	(a)	180
Interest income from cash balances	180		(180	)(a)	—
Earnings from unconsolidated entities	—		2,739	(b)	2,739
Rental income	—		59	(b)	59
Residential segment, other operating costs	—		327	(b)	327
Depreciation and amortization	—		78	(b)	78
Other income	2,923		(2,393	)(b)	530
Net gains (losses) on currency hedges	(10,392	)	10,392	(c)	—
Net gains (losses) on interest rate hedges	608		(608	)(c)	—
Loss on derivative financial instruments	—		(9,784	)(c)	(9,784	)
Net realized foreign currency gains (losses)	8,515		(8,515	)(d)	—
Unrealized foreign currency remeasurement gains	2,707		(2,707	)(d)	—
Foreign currency gain, net	—		11,222	(d)	11,222

Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2012
 (amounts in thousands)

Financial Statement Caption	Amount As Previously Reported		Reclassification Adjustment		Amount as Adjusted
Other revenues	—		66	(a)	66
Interest income from cash balances	66		(66	)(a)	—
Earnings from unconsolidated entities	—		787	(b)	787
Rental income	—		59	(b)	59
Residential segment, other operating costs	—		327	(b)	327
Depreciation and amortization	—		78	(b)	78
Other income	621		(441	)(b)	180
Net gains (losses) on currency hedges	(7,510	)	7,510	(c)	—
Net gains (losses) on interest rate hedges	(51	)	51	(c)	—
Loss on derivative financial instruments	—		(7,561	)(c)	(7,561	)
Net realized foreign currency gains (losses)	(337	)	337	(d)	—
Unrealized foreign currency remeasurement gains (losses)	7,062		(7,062	)(d)	—
Foreign currency gain, net	—		6,725	(d)	6,725

(a) Interest income from cash balances has been reclassified into “Other revenues,” a new caption in the income statement for the three and nine months ended September 30, 2013.

(b) Earnings from unconsolidated entities and various other items are now separate captions in the income statement for the three and nine months ended September 30, 2013. We previously classified such items for the three and nine months ended September 30, 2012, within “Other income.”

(c) The amounts in “Net gains (losses) on currency hedges” and “Net gains (losses) on interest rate hedges” have been reclassified into “Loss on derivative financial instruments,” a new caption in the income statement for the three and nine months ended September 30, 2013.

(d) The amounts in “Net realized foreign currency gains (losses) and “Unrealized foreign currency remeasurement gains (losses)” have been reclassified into “Foreign currency gain, net,” which is a new caption in the income statement for the three and nine months ended September 30, 2013.

Schedule of reclassification adjustments in statements of cash flows

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2012

(amounts in thousands)

Financial Statement Caption	Amount As Previously Reported		Reclassification Adjustment		Amount as Adjusted
Gain on sale of available-for-sale securities	(12,097	)	12,097	(a)	—
Gain on sale of loans	(7,177	)	7,177	(a)	—
Gain on sale of investments	—		(19,274	)(a)	(19,274	)
Unrealized gains (losses) on interest rate hedges	(9,991	)	9,991	(b)	—
Unrealized losses on currency hedges	13,319		(13,319	)(b)	—
Change in fair value of derivatives	—		3,328	(b)	3,328
Gain on foreign currency remeasurement	(8,809	)	8,809	(c)	—
Unrealized foreign currency remeasurement losses (gains)	(2,707	)	2,707	(c)	—
Foreign currency gain, net	—		(11,516	)(c)	(11,516	)
Purchased interest on investments	(638	)	638	(d)	—
Origination and purchase of loans held-for-investment	(942,692	)	(638	)(d)	(943,330	)
Loan maturities	460,789		(460,789	)(e)	—
Loan investment principal repayments	33,518		(33,518	)(e)	—
Proceeds from principal collections on loans	—		494,307	(e)	494,307

(a) We have combined “Gain on sale of available-for-sale securities” and “Gain on sale of loans” into “Gain on sale of investments,” a new caption in our cash flow statement for the nine months ended September 30, 2013.

(b) We have combined “Unrealized gains (losses) on interest rate hedges” and “Unrealized (gains) losses on currency hedges” into “Change in fair value of derivatives,” which is a new caption in our cash flow statement for the nine months ended September 30, 2013.

(c) We have combined “Gain on foreign currency remeasurement” and “Unrealized foreign currency remeasurement losses (gains)” into “Foreign currency gain, net,” which is a new caption in our cash flow statement for the nine months ended September 30, 2013.

(d) We have combined “Purchased interest on investments” into “Origination and purchase of loans held-for-investment.”

(e) We have combined “Loan maturities” and “Loan investment principal repayments” into “Proceeds from principal collections on loans,” which is a new caption in our cash flow statement for the nine months ended September 30, 2013.