XML 41 R28.htm IDEA: XBRL DOCUMENT v3.7.0.1
MORTGAGE LOAN RECEIVABLES (Tables)
 3 Months Ended
Mar. 31, 2017
Mortgage Loans on Real Estate [Abstract]  
Schedule of mortgage loan receivables March 31, 2017 ($ in thousands)
 
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loan receivables held for investment, at amortized cost
$
2,317,221

 
$
2,304,093

 
6.93
%
 
1.70
Provision for loan losses
N/A

 
(4,000
)
 
 
 
 
Total mortgage loan receivables held for investment, at amortized cost
2,317,221

 
2,300,093

 
 
 
 
Mortgage loan receivables held for sale
520,679

 
516,582

 
5.06
%
 
7.71
Total
$
2,837,900

 
$
2,816,675

 
6.59
%
 
2.81
 
(1)         March 31, 2017 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans.

December 31, 2016 ($ in thousands)
 
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loan receivables held for investment, at amortized cost
$
2,011,309

 
$
2,000,095

 
7.17
%
 
1.66
Provision for loan losses
N/A

 
(4,000
)
 
 
 
 
Total mortgage loan receivables held for investment, at amortized cost
2,011,309

 
1,996,095

 
 
 
 
Mortgage loan receivables held for sale
360,518

 
357,882

 
4.20
%
 
4.55
Total
2,371,827

 
2,353,977

 
6.73
%
 
2.10
 
(1)         December 31, 2016 LIBOR rates are used to calculate weighted average yield for floating rate loans.
Summary of mortgage loan receivables by loan type The following table summarizes mortgage loan receivables by loan type ($ in thousands):
 
 
March 31, 2017
 
December 31, 2016
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
 
 
 
 
 
 
 
 
Mortgage loan receivables held for investment, at amortized cost
 

 
 

 
 

 
 

First mortgage loans
$
2,149,727

 
$
2,137,383

 
$
1,843,006

 
$
1,832,626

Mezzanine loans
167,494

 
166,710

 
168,303

 
167,469

Total mortgage loan receivables held for investment, at amortized cost
2,317,221

 
2,304,093

 
2,011,309

 
2,000,095

Mortgage loan receivables held for sale
 

 
 

 
 

 
 

First mortgage loans
520,679

 
516,582

 
360,518

 
357,882

Total mortgage loan receivables held for sale
520,679

 
516,582

 
360,518

 
357,882

 
 
 
 
 
 
 
 
Provision for loan losses
N/A

 
(4,000
)
 
N/A

 
(4,000
)
Total
$
2,837,900

 
$
2,816,675

 
$
2,371,827

 
$
2,353,977
Schedule of activity in loan portfolio For the three months ended March 31, 2017 and 2016, the activity in our loan portfolio was as follows ($ in thousands):

 
Mortgage loan
receivables held
for investment, at
amortized cost (1)
 
Mortgage loan 
receivables held
for sale
 
 
 
 
Balance, December 31, 2016
$
1,996,095

 
$
357,882

Origination of mortgage loan receivables
249,829

 
279,898

Repayment of mortgage loan receivables
(68,251
)
 
(247
)
Realized gain on sale of mortgage loan receivables(2)
—

 
(999
)
Transfer between held for investment and held for sale(3)
119,952

 
(119,952
)
Accretion/amortization of discount, premium and other fees
2,468

 
—

Balance, March 31, 2017
$
2,300,093

 
$
516,582


 
Mortgage loan
receivables held
for investment, at
amortized cost (1)
 
Mortgage loan
receivables held
for sale
 
 
 
 
Balance, December 31, 2015
$
1,738,645

 
$
571,764

Origination of mortgage loan receivables
49,735

 
91,027

Repayment of mortgage loan receivables
(218,410
)
 
(524
)
Proceeds from sales of mortgage loan receivables
—

 
(316,766
)
Realized gain on sale of mortgage loan receivables
—

 
7,830

Accretion/amortization of discount, premium and other fees
3,013

 
—

Loan loss provision
(150
)
 
—

Balance, March 31, 2016
$
1,572,833

 
$
353,331

 
 
 
 
 

(1)         Includes provision for loan losses of $4.0 million and $3.9 million as of March 31, 2017 and 2016, respectively.
(2)         Includes $1.0 million of realized losses on loans recorded as other than temporary impairments related to lower of cost or market adjustments for the three months ended March 31, 2017.
(3)
During the three months ended March 31, 2017, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, at amortized cost, a loan with an outstanding face amount of $120.0 million, a book value of $120.0 million (fair value at date of reclassification) and a remaining maturity of 3 years. The loan had been recorded at lower of cost or market prior to its reclassification. The discount to fair value is the result of an increase in market interest rates since the loan’s origination and not a deterioration in credit of the borrower or collateral coverage and the Company expects to collect all amounts due under the loan. The transfer has been reflected as a non-cash item on the consolidated statement of cash flows for the three months ended March 31, 2017.
Schedule of provision for loan losses Provision for Loan Losses ($ in thousands)
 
Three Months Ended March 31,
 
2017
 
2016
 
 
 
 
Provision for loan losses at beginning of period
$
4,000

 
$
3,700

Provision for loan losses
—

 
150

Provision for loan losses at end of period
$
4,000

 
$
3,850