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MORTGAGE LOAN RECEIVABLES (Tables)
 6 Months Ended
Jun. 30, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Schedule of mortgage loan receivables
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loans held by consolidated subsidiaries
$
3,340,381

 
$
3,318,390

 
7.84
%
 
1.32
Provision for loan losses
N/A

 
(17,900
)
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost
3,340,381

 
3,300,490

 
 
 
 
Mortgage loan receivables held for sale
181,905

 
182,439

 
5.46
%
 
9.75
Total
$
3,522,286

 
$
3,482,929

 
7.76
%
 
1.77
 
(1)
December 31, 2018 LIBOR rates are used to calculate weighted average yield for floating rate loans.
(2)
Includes amounts relating to consolidated variable interest entities. See Note 3.
 
Outstanding
Face Amount
 
Carrying
Value
 
Weighted
Average
Yield (1)
 
Remaining
Maturity
(years)
 
 
 
 
 
 
 
 
Mortgage loans held by consolidated subsidiaries(2)
$
3,136,334

 
$
3,119,857

 
8.01
%
 
1.19
Provision for loan losses
N/A

 
(18,500
)
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost
3,136,334

 
3,101,357

 
 
 
 
Mortgage loan receivables held for sale
112,099

 
111,977

 
5.05
%
 
9.41
Total
$
3,248,433

 
$
3,213,334

 
7.96
%
 
1.48
 
(1)
June 30, 2019 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans.
(2)
Includes amounts relating to consolidated variable interest entities. See Note 3.
Summary of mortgage loan receivables by loan type
The following table summarizes mortgage loan receivables by loan type ($ in thousands):
 
 
June 30, 2019
 
December 31, 2018
 
Outstanding
Face Amount
 
Carrying
Value
 
Outstanding
Face Amount
 
Carrying
Value
 
 
 
 
 
 
 
 
Mortgage loan receivables held for investment, net, at amortized cost:
 

 
 

 
 

 
 

First mortgage loans
$
2,992,553

 
$
2,976,625

 
$
3,192,160

 
$
3,170,788

Mezzanine loans
143,781

 
143,232

 
148,221

 
147,602

Mortgage loan receivables held for investment, net, at amortized cost
3,136,334

 
3,119,857

 
3,340,381

 
3,318,390

Mortgage loan receivables held for sale
 

 
 

 
 

 
 

First mortgage loans
112,099

 
111,977

 
181,905

 
182,439

Total mortgage loan receivables held for sale
112,099

 
111,977

 
181,905

 
182,439

 
 
 
 
 
 
 
 
Provision for loan losses
N/A

 
(18,500
)
 
N/A

 
(17,900
)
Total
$
3,248,433

 
$
3,213,334

 
$
3,522,286

 
$
3,482,929



For the six months ended June 30, 2019 and 2018, the activity in our loan portfolio was as follows ($ in thousands):

 
Mortgage loan receivables held for investment, net, at amortized cost:
 
 
 
Mortgage loans held by consolidated subsidiaries
 
Mortgage loans transferred but not considered sold
 
Provision for loan losses
 
Mortgage loan 
receivables held
for sale
 
 
 
 
 
 
 
 
Balance, December 31, 2018
$
3,318,390

 
$
—

 
$
(17,900
)
 
$
182,439

Origination of mortgage loan receivables
484,496

 
—

 
—

 
333,342

Repayment of mortgage loan receivables
(693,323
)
 
—

 
—

 
(497
)
Proceeds from sales of mortgage loan receivables(1)
—

 
(15,504
)
 
—

 
(415,145
)
Realized gain on sale of mortgage loan receivables
—

 
—

 
—

 
27,342

Transfer between held for investment and held for sale(1)
—

 
15,504

 
—

 
(15,504
)
Accretion/amortization of discount, premium and other fees
10,294

 
—

 
—

 
—

Provision for loan losses
—

 
—

 
(600
)
 
—

Balance, June 30, 2019
$
3,119,857

 
$
—

 
$
(18,500
)
 
$
111,977

 
(1)
During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, one loan with an outstanding face amount of $15.4 million, a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequently, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 will be accounted for as a sale during the six months ended June 30, 2019.


 
Mortgage loan receivables held for investment, net, at amortized cost:
 
 
 
Mortgage loans held by consolidated subsidiaries
 
Provision for loan losses
 
Mortgage loan
receivables held
for sale
 
 
 
 
 
 
Balance, December 31, 2017
$
3,282,462

 
$
(4,000
)
 
$
230,180

Origination of mortgage loan receivables
914,489

 
—

 
764,948

Repayment of mortgage loan receivables
(497,124
)
 
—

 
(286
)
Proceeds from sales of mortgage loan receivables
—

 
—

 
(842,727
)
Realized gain on sale of mortgage loan receivables(1)
—

 
—

 
11,032

Transfer between held for investment and held for sale(2)
55,403

 
—

 
(55,403
)
Accretion/amortization of discount, premium and other fees
8,942

 
—

 
—

Provision for loan losses
—

 
(3,300
)
 
—

Balance, June 30, 2018
$
3,764,172

 
$
(7,300
)
 
$
107,744

 
(1)
Includes $0.5 million of realized losses on loans related to lower of cost or market adjustments for the six months ended June 30, 2018.
(2)
During the six months ended June 30, 2018, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, three loans with a combined outstanding face amount of $57.6 million, a combined book value of $55.4 million (fair value at date of reclassification) and a remaining maturity of 2.5 years. The loans had been recorded at lower of cost or market prior to their reclassification. The discount to fair value is the result of an increase in market interest rates since the loans’ origination and not a deterioration in credit of the borrowers or collateral coverage and the Company expects to collect all amounts due under the loans.
Schedule of provision for loan losses
Provision for Loan Losses and Non-Accrual Status ($ in thousands)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Provision for loan losses at beginning of period
$
18,200

 
$
7,000

 
$
17,900

 
$
4,000

Provision for loan losses
300

 
300

 
600

 
3,300

Provision for loan losses at end of period
$
18,500

 
$
7,300

 
$
18,500

 
$
7,300

 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019
 
December 31, 2018
 
 
 
 
 
 
 
 
Principal balance of loans on non-accrual status
 
 
 
 
$
36,946

 
$
36,850