TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (Notes)

Variable Interest Entities (Notes)

9 Months Ended

Sep. 30, 2015

Variable Interest Entities [Abstract]

Variable Interest Entities

The Company purchases subordinated debt and excess servicing rights from securitization trusts sponsored by either third parties or the Company’s subsidiaries. Additionally, the Company is the sole certificate holder of a trust entity that holds a commercial real estate loan. All of these trusts are considered VIEs for financial reporting purposes and, thus, were reviewed for consolidation under the applicable consolidation guidance. Because the Company has both the power to direct the activities of the trusts that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the trusts. As the Company is required to reassess VIE consolidation guidance each quarter, new facts and circumstances may change the Company’s determination. A change in the Company’s determination could result in a material impact to the Company’s condensed consolidated financial statements during subsequent reporting periods.

The following table presents a summary of the assets and liabilities of all consolidated trusts as reported on the condensed consolidated balance sheets:



(in thousands)	September 30, 2015		December 31, 2014
Residential mortgage loans held-for-investment in securitization trusts	$	2,978,586	$	1,744,746
Commercial real estate loans held-for-investment	45,651		—
Accrued interest receivable	16,157		10,197
Total Assets	$	3,040,394	$	1,754,943
Collateralized borrowings in securitization trusts	$	1,990,769	$	1,209,663
Accrued interest payable	5,874		3,678
Other liabilities	9,206		6,480
Total Liabilities	$	2,005,849	$	1,219,821