Segment Reporting

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

Note 3 — Segment Reporting

The Company conducts its business through the following segments: (i) investments in RMBS; (ii) investments in Servicing Related Assets; and (iii) “All Other,” which consists primarily of general and administrative expenses, including fees paid to the Company’s directors and management fees and reimbursements paid to the Manager pursuant to the Management Agreement (see Note 7). For segment reporting purposes, the Company does not allocate interest income on short-term investments or general and administrative expenses.

Summary financial data with respect to the Company’s segments is given below, together with the data for the Company as a whole (dollars in thousands):

	Servicing Related Assets			RMBS			All Other			Total
Income Statement
Three Months Ended June 30, 2021
Interest income	$	105		$	6,980		$	-		$	7,085
Interest expense		(771	)		1,220			-			449
Net interest income		876			5,760			-			6,636
Servicing fee income		13,748			-			-			13,748
Servicing costs		4,072			-			-			4,072
Net servicing income		9,676			-			-			9,676
Other expense		(12,995	)		(13,085	)		-			(26,080	)
Other operating expenses		846			-			2,829			3,675
Benefit from corporate business taxes		(1,830	)		-			-			(1,830	)
Net Loss	$	(1,459	)	$	(7,325	)	$	(2,829	)	$	(11,613	)
Three Months Ended June 30, 2020
Interest income	$	479		$	9,653		$	-		$	10,132
Interest expense		438			2,987			-			3,425
Net interest income		41			6,666			-			6,707
Servicing fee income		18,032			-			-			18,032
Servicing costs		6,594			-			-			6,594
Net servicing income		11,438			-			-			11,438
Other expense		(24,746	)		(5,966	)		-			(30,712	)
Other operating expenses		1,135			-			2,259			3,394
Benefit from corporate business taxes		(3,278	)		-			-			(3,278	)
Net Income (Loss)	$	(11,124	)	$	700		$	(2,259	)	$	(12,683	)
Six Months Ended June 30, 2021
Interest income	$	225		$	12,845		$	-		$	13,070
Interest expense		(1,959	)		2,520			-			561
Net interest income		2,184			10,325			-			12,509
Servicing fee income		27,288			-			-			27,288
Servicing costs		7,154			-			-			7,154
Net servicing income		20,134			-			-			20,134
Other income (expense)		(19,880	)		5,563			-			(14,317	)
Other operating expenses		1,408			-			5,670			7,078
Provision for corporate business taxes		1,633			-			-			1,633
Net Income (Loss)	$	(603	)	$	15,888		$	(5,670	)	$	9,615
Six Months Ended June 30, 2020
Interest income	$	2,120		$	28,261		$	-		$	30,381
Interest expense		2,147			13,569			-			15,716
Net interest income (expense)		(27	)		14,692			-			14,665
Servicing fee income		37,551			-			-			37,551
Servicing costs		12,434			-			-			12,434
Net servicing income		25,117			-			-			25,117
Other expense		(56,602	)		(52,016	)		-			(108,618	)
Other operating expenses		1,735			-			6,380			8,115
Benefit from corporate business taxes		(15,432	)		-			-			(15,432	)
Net Loss	$	(17,815	)	$	(37,324	)	$	(6,380	)	$	(61,519	)

	Servicing Related Assets		RMBS		All Other		Total
Balance Sheet
June 30, 2021
Investments	$	211,995	$	998,799	$	-	$	1,210,794
Other assets		48,668		20,638		54,656		123,962
Total assets		260,663		1,019,437		54,656		1,334,756
Debt		134,978		897,047		-		1,032,025
Other liabilities		2,575		837		12,271		15,683
Total liabilities		137,553		897,884		12,271		1,047,708
Book value	$	123,110	$	121,553	$	42,385	$	287,048

December 31, 2020
Investments	$	174,414	$	1,228,251	$	-	$	1,402,665
Other assets		51,063		55,260		84,500		190,823
Total assets		225,477		1,283,511		84,500		1,593,488
Debt		111,379		1,149,978		-		1,261,357
Other liabilities		2,392		6,370		10,803		19,565
Total liabilities		113,771		1,156,348		10,803		1,280,922
Book value	$	111,706	$	127,163	$	73,697	$	312,566