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Loan Securitization/Sale Activities
12 Months Ended
Dec. 31, 2023
Loan Securitization/Sale Activities  
Loan Securitization/Sale Activities 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.
Loan Securitizations
Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets.
In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold. During the year ended December 31, 2021, we exercised the optional redemption on certain of our residential securitizations and acquired $524.5 million of loans and redeemed $51.2 million of our existing RMBS holdings. The net amount paid to a consolidated VIE to redeem the outstanding principal amount of its RMBS certificates and acquire the underlying loans pursuant to this provision are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. There were no such redemptions during the years ended December 31, 2023 and 2022.
The following summarizes the face amount and proceeds of commercial and residential loans securitized for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands):
Commercial LoansResidential Loans
Face AmountProceedsFace AmountProceeds
For the Year Ended December 31,
2023$759,740 $770,733 $— $— 
20221,202,274 1,182,861 1,905,829 1,913,459 
20211,185,251 1,242,974 2,287,733 2,362,798 
The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option.
Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party.
Commercial and Residential Loan Sales
Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. 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. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization. The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands):
Loan Transfers Accounted for as Sales
Commercial LoansResidential Loans
Face amount (1)Proceeds (1)Face Amount (2)Proceeds (2)
For the Year Ended December 31,
2023$95,496 $95,271 $— $— 
202275,235 74,859 1,057,013 1,056,683 
2021335,552 328,878 216,827 225,940 
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(1)During the year ended December 31, 2023, we sold $95.5 million of mezzanine loans at par less costs to sell. During the year ended December 31, 2022, we sold $11.5 million of senior interests in first mortgage loans and $63.7 million of whole loan interests for proceeds of $10.2 million and $64.6 million, respectively. During the year ended December 31, 2021, we sold $313.0 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $307.3 million and $21.5 million, respectively.
(2)Amounts in 2022 include the sale of $745.0 million of agency-eligible residential loans in February 2022, which were later repurchased in October 2022. See related discussion in Note 5.
During the years ended December 31, 2023 and 2022, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were immaterial. During the year ended December 31, 2021 losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $1.1 million.
Infrastructure Loan Sales
During the year ended December 31, 2023, there were no sales of loans by the Infrastructure Lending Segment. During the year ended December 31, 2022, the Infrastructure Lending Segment sold a loan with a face amount of $26.8 million for par. During the year ended December 31, 2021, the Infrastructure Lending Segment sold loans with an aggregate face amount of $16.3 million for proceeds of $15.3 million, recognizing gains of $0.2 million.