Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 07, 2019
Document and Entity Information
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Central Index Key	0001000298
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		21,181,357
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 22,995	$ 23,200
Restricted cash	6,865	6,989
Mortgage loans held-for-sale	460,773	353,601
Mortgage servicing rights	59,823	64,728
Securitized mortgage trust assets	3,067,911	3,165,590
Other assets	55,364	33,835
Total assets	3,673,731	3,647,943
LIABILITIES
Warehouse borrowings	404,763	284,137
Convertible notes, net	24,987	24,985
Long-term debt	44,561	44,856
Securitized mortgage trust liabilities	3,051,736	3,148,215
Other liabilities	49,734	35,575
Total liabilities	3,575,781	3,537,768
Commitments and contingencies (See Note 11)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 21,181,357 and 21,117,006 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	212	211
Additional paid-in capital	1,235,377	1,235,108
Accumulated other comprehensive earnings, net of tax of $11.0 million	23,994	23,877
Net accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Retained deficit	(339,134)	(326,522)
Net accumulated deficit	(1,161,654)	(1,149,042)
Total stockholders’ equity	97,950	110,175
Total liabilities and stockholders’ equity	3,673,731	3,647,943
Series A-1 junior participating preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock
Series B 9.375% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	7	7
Series C 9.125% redeemable preferred stock
STOCKHOLDERS’ EQUITY
Preferred stock	$ 14	$ 14

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	21,181,357	21,117,006
Common stock, shares outstanding	21,181,357	21,117,006
Accumulated other comprehensive earnings, tax	$ 11,000
Series A-1 junior participating preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B 9.375% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.375%	9.375%
Preferred stock, liquidation value (in dollars)	$ 31,460	$ 31,460
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	665,592	665,592
Preferred stock, shares outstanding	665,592	665,592
Series C 9.125% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.125%	9.125%
Preferred stock, liquidation value (in dollars)	$ 35,127	$ 35,127
Preferred stock, shares authorized	5,500,000	5,500,000
Preferred stock, shares issued	1,405,086	1,405,086
Preferred stock, shares outstanding	1,405,086	1,405,086

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) EARNINGS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Gain on sale of loans, net	$ 12,214	$ 21,482
Servicing fees, net	2,969	9,463
(Loss) gain on mortgage servicing rights, net	(5,623)	7,705
Real estate services fees, net	806	1,385
Other		90
Total revenues	10,366	40,125
Expenses:
Personnel expense	14,121	17,742
Business promotion	2,923	9,731
General, administrative and other	5,226	8,275
Total expenses	22,270	35,748
Operating (loss) income	(11,904)	4,377
Other (expense) income:
Interest income	45,254	50,150
Interest expense	(43,458)	(49,130)
Change in fair value of long-term debt	265	1,224
Change in fair value of net trust assets, including trust REO gains	(2,683)	(2,138)
Total other (expense) income, net	(622)	106
(Loss) earnings before income taxes	(12,526)	4,483
Income tax expense	86	610
Net (loss) earnings	(12,612)	3,873
Other comprehensive (loss) earnings:
Change in fair value of mortgage-backed securities	21
Change in fair value of instrument specific credit risk of long-term debt	96	(1,440)
Total comprehensive (loss) earnings	$ (12,495)	$ 2,433
Net (loss) earnings per common share:
Basic (in dollars per share)	$ (0.60)	$ 0.18
Diluted (in dollars per share)	$ (0.60)	$ 0.18
Real Estate
Revenues:
Real estate services fees, net	$ 806	$ 1,385

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends Declared	Retained Deficit	Accumulated Other Comprehensive Earnings (Loss)	Accumulated Other Comprehensive Earnings (Loss)	Total
Balance at Dec. 31, 2017	$ 21	$ 209	$ 1,233,704	$ (822,520)	$ (146,267)			$ 265,147
Balance (in shares) at Dec. 31, 2017	2,070,678	20,949,679
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	15					16
Proceeds and tax benefit from exercise of stock options (in shares)		3,000
Stock based compensation			430					430
Other comprehensive loss						$ (1,440)		(1,440)
Net loss					3,873			3,873
Balance at Mar. 31, 2018	$ 21	$ 210	1,234,149	(822,520)	(177,239)	25,578		260,199
Balance (in shares) at Mar. 31, 2018	2,070,678	20,952,679
Increase (Decrease) in Stockholders' Equity
Reclassification and adjustment related to adoption of new standard \| ASU 2016-01					(27,018)	$ 27,018
Reclassification and adjustment related to adoption of new standard \| ASU 2016-16					(7,827)			(7,827)
Balance at Dec. 31, 2018	$ 21	$ 211	1,235,108	(822,520)	(326,522)		$ 23,877	110,175
Balance (in shares) at Dec. 31, 2018	2,070,678	21,117,006
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	162					163
Proceeds and tax benefit from exercise of stock options (in shares)		64,351
Stock based compensation			107					107
Other comprehensive loss							117	117
Net loss					(12,612)			(12,612)
Balance at Mar. 31, 2019	$ 21	$ 212	$ 1,235,377	$ (822,520)	$ (339,134)		$ 23,994	$ 97,950
Balance (in shares) at Mar. 31, 2019	2,070,678	21,181,357

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) earnings	$ (12,612)	$ 3,873
Gain on sale of mortgage servicing rights	(865)	2
Change in fair value of mortgage servicing rights	6,488	(9,180)
Gain on sale of mortgage loans	(10,984)	(28,851)
Change in fair value of mortgage loans held-for-sale	(3,469)	4,891
Change in fair value of derivatives lending, net	609	1,815
Provision for repurchases	1,630	378
Origination of mortgage loans held-for-sale	(581,509)	(1,320,128)
Sale and principal reduction on mortgage loans held-for-sale	487,207	1,246,881
Gains from trust REO	(3,473)	(2,193)
Change in fair value of net trust assets, excluding trust REO	6,156	4,331
Change in fair value of long-term debt	(265)	(1,224)
Accretion of interest income and expense	7,412	14,531
Amortization of intangible and other assets	143	1,193
Amortization of debt issuance costs and discount on note payable	8	21
Stock-based compensation	107	430
Net change in other assets	3,241	(3,835)
Net change in other liabilities	(7,553)	(949)
Net cash used in operating activities	(107,729)	(88,014)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	123,865	116,205
Finance receivable advances to customers		(165,668)
Repayments of finance receivables		180,456
Purchase of premises and equipment	(134)	(109)
Purchase of mortgage-backed securities	(5,347)
Proceeds from the sale of REO	5,587	5,418
Net cash provided by investing activities	123,971	136,302
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of MSR financing		(25,133)
Borrowings under MSR financing		35,000
Repayment of warehouse borrowings	(405,840)	(1,204,301)
Borrowings under warehouse agreements	526,466	1,279,280
Payment of acquisition related contingent consideration		(554)
Repayment of securitized mortgage borrowings	(137,272)	(136,444)
Principal payments on capital lease	(49)
Principal payments on capital lease		(59)
Tax payments on stock based compensation awards	(39)	(3)
Proceeds from exercise of stock options	163	16
Net cash used in financing activities	(16,571)	(52,198)
Net change in cash, cash equivalents and restricted cash	(329)	(3,910)
Cash, cash equivalents and restricted cash at beginning of period	30,189	39,099
Cash, cash equivalents and restricted cash at end of period	29,860	35,189
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral to real estate owned	5,825	4,835
Mortgage servicing rights retained from loan sales and issuance of mortgage backed securities	1,583	$ 10,482
Initial recognition of operating lease right of use assets (net of $3.8 million of deferred rent)	19,694
Initial recognition of operating lease liabilities	$ 23,447

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2019	Jan. 01, 2019
CONSOLIDATED STATEMENTS OF CASH FLOWS
Deferred rent liability	$ 3.8	$ 3.8

Summary of Business and Financial Statement Presentation	3 Months Ended
	Mar. 31, 2019
Summary of Business and Financial Statement Presentation
Summary of Business and Financial Statement Presentation	IMPAC MORTGAGE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, except share and per share data or as otherwise indicated) Note 1.—Summary of Business and Financial Statement Presentation Business Summary Impac Mortgage Holdings, Inc. (the Company or IMH) is a Maryland corporation with the following direct and indirect wholly-owned subsidiaries: Integrated Real Estate Service Corporation (IRES), Impac Mortgage Corp. (IMC), IMH Assets Corp. (IMH Assets) and Impac Funding Corporation (IFC). The Company’s operations include the mortgage lending operations and real estate services conducted by IRES and IMC and the long-term mortgage portfolio (residual interests in securitizations reflected as net trust assets and liabilities in the consolidated balance sheets) conducted by IMH. IMC’s mortgage lending operations include the activities of its division, CashCall Mortgage (CCM). Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the United States Securities and Exchange Commission (SEC). All significant intercompany balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage-backed securities, mortgage servicing rights, mortgage loans held-for-sale and derivative instruments, including interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions. Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases (Topic 842)”, and subsequent amendments to the initial guidance: Accounting Standards Update (ASU) 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The Company adopted ASU 2016-02 on January 1, 2019 and applied the practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 will remain unchanged in accordance with Leases (Topic 840). On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million in the consolidated balance sheet. There was no impact to retained earnings upon adoption of Topic 842. For additional information related to the impact of the new guidance, see Note 4.—Leases. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive earnings (AOCE) to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act) which was signed into law in the fourth quarter of 2017. The ASU is effective in years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. This ASU specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This update requires companies to measure all expected credit losses for financial assets not recorded at fair value at the reporting date and includes in its scope: loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures and other financial assets that have contractual rights to receive cash flows. The standard also amends the accounting for credit losses on available-for-sale debt securities, purchased financial assets with credit deterioration and trade and other receivables. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments, Credit Losses”, which made technical corrections and improvements to the previous ASU issued. The standards will take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of these ASUs to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Mortgage Loans Held-for-Sale

3 Months Ended

Mar. 31, 2019

Mortgage Loans Held-for-Sale

Mortgage Loans Held-for-Sale

Note 2.—Mortgage Loans Held-for-Sale

A summary of the unpaid principal balance (UPB) of mortgage loans held-for-sale by type is presented below:


	March 31,		December 31,
	2019		2018
Government (1)	$	24,182	$	39,522
Conventional (2)		86,953		53,148
Non-qualified mortgages (NonQM).		341,729		256,491
Fair value adjustment (3)		7,909		4,440
Total mortgage loans held-for-sale	$	460,773	$	353,601

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC).

(3)

Changes in fair value are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive (loss) earnings.

Gain on mortgage loans held-for-sale (LHFS), included in gain on sale of loans, net in the consolidated statements of operations and comprehensive (loss) earnings, is comprised of the following for the three months ended March 31, 2019 and 2018:


	For the Three Months Ended
	March 31,
	2019		2018
Gain on sale of mortgage loans	$	13,608	$	29,338
Premium from servicing retained loan sales		1,583		10,482
Unrealized losses from derivative financial instruments		(609)		(2,100)
Realized (losses) gains from derivative financial instruments		(1,054)		12,045
Mark to market gain (loss) on LHFS		3,469		(4,891)
Direct origination expenses, net		(3,153)		(23,014)
Provision for repurchases		(1,630)		(378)
Total gain on sale of loans, net	$	12,214	$	21,482

Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2019

Mortgage Servicing Rights

Mortgage Servicing Rights

Note 3.—Mortgage Servicing Rights

The Company retains mortgage servicing rights (MSRs) from its sales and securitization of certain mortgage loans or as a result of purchase transactions. MSRs are reported at fair value based on the income derived from the net projected cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the UPB of the loans. The servicing fees are collected from the monthly payments made by the mortgagors or if delinquent, when the underlying real estate is foreclosed upon and liquidated. The Company may receive other remuneration from rights to various mortgagor-contracted fees, such as late charges, collateral reconveyance charges and nonsufficient fund fees, and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments.

The following table summarizes the activity of MSRs for the three months ended March 31, 2019 and year ended December 31, 2018:


	March 31,		December 31,
	2019		2018
Balance at beginning of period	$	64,728	$	154,405
Additions from servicing retained loan sales		1,583		24,879
Reductions from bulk sales		—		(118,313)
Changes in fair value (1)		(6,488)		3,757
Fair value of MSRs at end of period	$	59,823	$	64,728

(1)

Changes in fair value are included within (loss) gain on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive (loss) earnings.

At March 31, 2019 and December 31, 2018, the outstanding principal balance of the mortgage servicing portfolio was comprised of the following:


	March 31,		December 31,
	2019		2018
Government insured	$	93,873	$	51,157
Conventional		6,139,530		6,165,129
NonQM		1,838		1,848
Total loans serviced (1)	$	6,235,241	$	6,218,134

(1)

No collateral was pledged as part of the MSR Financing at March 31, 2019 or December 31, 2018.

The table below illustrates hypothetical changes in fair values of MSRs caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 7.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs.


	March 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2019		2018
Fair value of MSRs	$	59,823	$	64,728
Prepayment Speed:
Decrease in fair value from 10% adverse change		(1,925)		(1,419)
Decrease in fair value from 20% adverse change		(3,865)		(2,918)
Decrease in fair value from 30% adverse change		(5,805)		(4,475)
Discount Rate:
Decrease in fair value from 10% adverse change		(2,082)		(2,345)
Decrease in fair value from 20% adverse change		(4,027)		(4,532)
Decrease in fair value from 30% adverse change		(5,849)		(6,575)

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those displayed above.

(Loss) gain on mortgage servicing rights, net is comprised of the following for the three months ended March 31, 2019 and 2018:


	For the Three Months Ended
	March 31,
	2019		2018
Change in fair value of mortgage servicing rights	$	(6,488)	$	9,180
Gain (loss) on sale of mortgage servicing rights		865		(2)
Realized and unrealized losses from hedging instruments		—		(1,473)
(Loss) gain on mortgage servicing rights, net	$	(5,623)	$	7,705

Servicing fees, net is comprised of the following for the three months ended March 31, 2019 and 2018:


	For the Three Months Ended
	March 31,
	2019		2018
Contractual servicing fees	$	4,189	$	11,538
Late and ancillary fees		55		151
Subservicing and other costs		(1,275)		(2,226)
Servicing fees, net	$	2,969	$	9,463

Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

Note 4.—Leases

On January 1, 2019, the Company adopted Topic 842 using the modified retrospective transition approach and elected the practical expedients transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million and are included in other assets and liabilities, respectively, in the accompanying consolidated balance sheets.

The Company has three operating leases for office space and certain office equipment under long‑term leases expiring at various dates through 2024. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. When the Company cannot readily determine the rate implicit in the lease, the Company determines its incremental borrowing rate by using the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. As a practical expedient permitted under Topic 842, the Company has elected to account for the lease and non-lease components as a single lease component for all leases of which it is the lessee. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and lease expense for these leases is recognized on a straight-line basis over the lease term. For operating leases existing prior to January 1, 2019, the rate used for the remaining lease term was determined as of the date of adoption. The Company had financing leases for office equipment which were not material at March 31, 2019 and are included in other assets and liabilities in the accompanying consolidated balance sheets.

During the three months ended March 31, 2019, cash paid for operating leases was $1.1 million while total operating lease expense for the three months ended March 31, 2019 was $986 thousand, which includes short-term leases and sublease income, both of which are immaterial.

The following table presents the operating lease balances within the consolidated balance sheets, weighted average remaining lease term, and weighted average discount rates related to the Company's operating leases as of March 31, 2019:


		March 31,
Lease Assets and Liabilities	Classification	2019
Assets
Operating lease ROU assets	Other assets	$ 18,861

Liabilities
Operating lease liabilities	Other liabilities	$ 22,537

Weighted average remaining lease term		5.48 years
Weighted average discount rate		4.8	%

The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2019:


Remainder of 2019	$	3,314
Year 2020		4,541
Year 2021		4,593
Year 2022		4,721
Year 2023		4,867
Year 2024		3,729
Total lease commitments		25,765
Less: imputed interest		(3,228)
Total operating lease liability	$	22,537

As of March 31, 2019, the Company had no additional operating or finance leases that had not yet commenced.

Debt

3 Months Ended

Mar. 31, 2019

Debt

Debt

Note 5.—Debt

Warehouse Borrowings

The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are uncommitted facilities used to fund, and are secured by, residential mortgage loans from the time of funding until the time of settlement when sold to the investor. In accordance with the terms of the Master Repurchase Agreements, the Company’s subsidiaries are required to maintain cash balances with the lender as additional collateral for the borrowings, which are included in restricted cash in the accompanying consolidated balance sheets. At March 31, 2019, the Company was not in compliance with a financial covenant and received the necessary waiver.

The following table presents certain information on warehouse borrowings and related accrued interest for the periods indicated:


	Maximum		Balance Outstanding At
	Borrowing		March 31,		December 31,
	Capacity		2019		2018		Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	31,753	$	84,897	June 14, 2019
Repurchase agreement 2		50,000		45,522		47,108	May 28, 2019
Repurchase agreement 3		225,000		167,408		35,920	January 17, 2020
Repurchase agreement 4		200,000		129,333		80,141	July 12, 2019
Repurchase agreement 5 (1)		175,000		20,003		23,370	March 31, 2020
Repurchase agreement 6		100,000		10,744		12,701	June 27, 2019
Total warehouse borrowings	$	900,000	$	404,763	$	284,137

(1)

In April 2019, the maturity of the line was extended to March 31, 2020.

MSR Financings

In February 2018, IMC (Borrower) amended the Line of Credit Promissory Note (FHLMC and GNMA Financing) originally entered into in August 2017, increasing the maximum borrowing capacity of the revolving line of credit to $50.0 million and extending the term to January 31, 2019. In May 2018, the agreement was amended increasing the maximum borrowing capacity of the revolving line of credit to $60.0 million, increasing the borrowing capacity up to 60% of the fair market value of the pledged mortgage servicing rights and reducing the interest rate per annum to one-month LIBOR plus 3.0%. As part of the May 2018 amendment, the obligations under the Line of Credit are secured by FHLMC and GNMA pledged mortgage servicing rights (subject to an acknowledgement agreement) and is guaranteed by IRES. At March 31, 2019, there were no outstanding borrowings under the FHLMC and GNMA Financing agreement. In April 2019, the maturity of the line was extended until January 31, 2020.

In February 2017, IMC (Borrower) entered into a Loan and Security Agreement (Agreement) with a lender providing for a revolving loan commitment of $40.0 million for a period of two years (FNMA Financing). The Borrower is able to borrow up to 55% of the fair market value of FNMA pledged servicing rights. Upon the two year anniversary of the Agreement, any amounts outstanding will automatically be converted into a term loan due and payable in full on the one year anniversary of the conversion date. Interest payments are payable monthly and accrue interest at the rate per annum equal to one-month LIBOR plus 4.0% and the balance of the obligation may be prepaid at any time. The Borrower initially drew down $35.1 million and used a portion of the proceeds to pay off the Term Financing (approximately $30.1 million) originally entered into in June 2015 as discussed below. The Borrower also paid the lender an origination fee of $100 thousand, which was deferred and amortized over the life of the FNMA Financing. At March 31, 2019, there were no outstanding borrowings under the FNMA Financing agreement. In February 2019, the line converted into a term loan with no balance.

Convertible Notes

In May 2015, the Company issued $25.0 million Convertible Promissory Notes (2015 Convertible Notes). The 2015 Convertible Notes mature on or before May 9, 2020 and accrue interest at a rate of 7.5% per annum, to be paid quarterly. Transaction costs of approximately $50 thousand are being deferred and amortized over the life of the 2015 Convertible Notes.

Noteholders may convert all or a portion of the outstanding principal amount of the 2015 Convertible Notes into shares of the Company’s common stock (Conversion Shares) at a rate of $21.50 per share, subject to adjustment for stock splits and dividends (Conversion Price). The Company has the right to convert the entire outstanding principal of the 2015 Convertible Notes into Conversion Shares at the Conversion Price if the market price per share of the common stock, as measured by the average volume-weighted closing stock price per share of the common stock on the NYSE AMERICAN (or any other U.S. national securities exchange then serving as the principal such exchange on which the shares of common stock are listed), reaches the level of $30.10 for any twenty (20) trading days in any period of thirty (30) consecutive trading days after the Closing Date. Upon conversion of the 2015 Convertible Notes by the Company, the entire amount of accrued and unpaid interest (and all other amounts owing) under the 2015 Convertible Notes are immediately due and payable. To the extent the Company pays any cash dividends on its shares of common stock prior to conversion of the 2015 Convertible Notes, upon conversion of the 2015 Convertible Notes, the Noteholders will also receive such dividends on an as-converted basis of the 2015 Convertible Notes less the amount of interest paid by the Company prior to such dividend.

Long-term Debt

Junior Subordinated Notes

The Company carries its Junior Subordinated Notes at estimated fair value as more fully described in Note 7.—Fair Value of Financial Instruments. The following table shows the remaining principal balance and fair value of junior subordinated notes issued as of March 31, 2019 and December 31, 2018:


	March 31,		December 31,
	2019		2018
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,439)		(17,144)
Total Junior Subordinated Notes	$	44,561	$	44,856

(1)

Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3‑month LIBOR plus 3.75% per annum.

Securitized Mortgage Trusts

3 Months Ended

Mar. 31, 2019

Securitized Mortgage Trusts

Securitized Mortgage Trusts

Note 6.—Securitized Mortgage Trusts

Securitized Mortgage Trust Assets

Securitized mortgage trust assets, which are recorded at their estimated fair value, are comprised of the following at March 31, 2019 and December 31, 2018:


	March 31,		December 31,
	2019		2018
Securitized mortgage collateral	$	3,054,720	$	3,157,071
Real estate owned (REO)		13,191		8,519
Total securitized mortgage trust assets	$	3,067,911	$	3,165,590

Securitized Mortgage Trust Liabilities

Securitized mortgage trust liabilities, which are recorded at their estimated fair value, are comprised of the following at March 31, 2019 and December 31, 2018:


	March 31,		December 31,
	2019		2018
Securitized mortgage borrowings	$	3,051,736	$	3,148,215

Changes in fair value of net trust assets, including trust REO gains and losses, are comprised of the following for the three months ended March 31, 2019 and 2018:


	For the Three Months Ended
	March 31,
	2019		2018
Change in fair value of net trust assets, excluding REO	$	(6,156)	$	(4,331)
Gains from REO		3,473		2,193
Change in fair value of net trust assets, including trust REO gains	$	(2,683)	$	(2,138)

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2019

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 7.—Fair Value of Financial Instruments

The use of fair value to measure the Company’s financial instruments is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value.

The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated:


	March 31, 2019								December 31, 2018
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	22,995	$	22,995	$	—	$	—	$	23,200	$	23,200	$	—	$	—
Restricted cash		6,865		6,865		—		—		6,989		6,989		—		—
Mortgage loans held-for-sale		460,773		—		460,773		—		353,601		—		353,601		—
Mortgage servicing rights		59,823		—		—		59,823		64,728		—		—		64,728
Derivative assets, lending, net		3,164		—		—		3,164		3,351		—		—		3,351
Mortgage-backed securities		6,368		—		6,368		—		1,000		—		1,000		—
Securitized mortgage collateral		3,054,720		—		—		3,054,720		3,157,071		—		—		3,157,071

Liabilities
Warehouse borrowings	$	404,763	$	—	$	404,763	$	—	$	284,137	$	—	$	284,137	$	—
Convertible notes		24,987		—		—		24,987		24,985		—		—		24,985
Long-term debt		44,561		—		—		44,561		44,856		—		—		44,856
Securitized mortgage borrowings		3,051,736		—		—		3,051,736		3,148,215		—		—		3,148,215
Derivative liabilities, lending, net		1,105		—		1,105		—		683		—		683		—

The fair value amounts above have been estimated by management using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates of fair value in both inactive and orderly markets. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

For securitized mortgage collateral and securitized mortgage borrowings, the underlying Alt-A (non-conforming) residential and commercial loans and mortgage-backed securities market have experienced significant declines in market activity, along with a lack of orderly transactions. The Company’s methodology to estimate fair value of these assets and liabilities include the use of internal pricing techniques such as the net present value of future expected cash flows (with observable market participant assumptions, where available) discounted at a rate of return based on the Company’s estimates of market participant requirements. The significant assumptions utilized in these internal pricing techniques, which are based on the characteristics of the underlying collateral, include estimated credit losses, estimated prepayment speeds and appropriate discount rates.

Refer to Recurring Fair Value Measurements below for a description of the valuation methods used to determine the fair value of investment securities available-for-sale, securitized mortgage collateral and borrowings, derivative assets and liabilities, long-term debt, mortgage servicing rights and mortgage loans held-for-sale.

The carrying amount of cash, cash equivalents and restricted cash approximates fair value.

Warehouse borrowings carrying amounts approximate fair value due to the short-term nature of the liabilities and do not present unanticipated interest rate or credit concerns.

Convertible notes are recorded at amortized cost, which approximates fair value.

Fair Value Hierarchy

The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value.

FASB ASC 820-10-35 specifies a hierarchy of valuation techniques based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1—Quoted prices (unadjusted) in active markets for identical instruments or liabilities that an entity has the ability to assess at measurement date.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for an asset or liability, including interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, loss severities, credit risks and default rates; and market-corroborated inputs.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value.

As a result of the lack of observable market data resulting from inactive markets, the Company has classified its mortgage servicing rights, securitized mortgage collateral and borrowings, derivative assets and liabilities (IRLCs), and long-term debt as Level 3 fair value measurements. Level 3 assets and liabilities measured at fair value on a recurring basis were approximately 87% and 99% and 90% and 99%, respectively, of total assets and total liabilities measured at estimated fair value at March 31, 2019 and December 31, 2018.

Recurring Fair Value Measurements

The Company assesses the financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by ASC Topic 810. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels occur at the beginning of the reporting period. There were no material transfers between Level 1 and Level 2 classified instruments during the three months ended March 31, 2019.

The following tables present the Company’s assets and liabilities that are measured at estimated fair value on a recurring basis, including financial instruments for which the Company has elected the fair value option at March 31, 2019 and December 31, 2018, based on the fair value hierarchy:


	Recurring Fair Value Measurements
	March 31, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	460,773	$	—	$	—	$	353,601	$	—
Mortgage-backed securities		—		6,368		—		—		1,000		—
Derivative assets, lending, net (1)		—		—		3,164		—		—		3,351
Mortgage servicing rights		—		—		59,823		—		—		64,728
Securitized mortgage collateral		—		—		3,054,720		—		—		3,157,071
Total assets at fair value	$	—	$	467,141	$	3,117,707	$	—	$	354,601	$	3,225,150
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	3,051,736	$	—	$	—	$	3,148,215
Long-term debt		—		—		44,561		—		—		44,856
Derivative liabilities, lending, net (2)		—		1,105		—		—		683		—
Total liabilities at fair value	$	—	$	1,105	$	3,096,297	$	—	$	683	$	3,193,071

(1)

At March 31, 2019 and December 31, 2018, derivative assets, lending, net included $3.2 million and $3.4 million, respectively, in IRLCs and is included in other assets in the accompanying consolidated balance sheets.

(2)

At March 31, 2019 and December 31, 2018, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

The following tables present reconciliations for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018:


	Level 3 Recurring Fair Value Measurements
	For the Three Months Ended March 31, 2019

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2018	$	3,157,071	$	(3,148,215)	$	64,728	$	3,351	$	(44,856)
Total gains (losses) included in earnings:
Interest income (1)		6,255		—		—		—		—
Interest expense (1)		—		(13,553)		—		—		(114)
Change in fair value		21,084		(27,240)		(6,488)		(187)		265
Change in fair value of instrument specific credit risk		—		—		—		—		144	(2)
Total gains (losses) included in earnings		27,339		(40,793)		(6,488)		(187)		295
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		1,583		—		—
Settlements		(129,690)		137,272		—		—		—
Fair value, March 31, 2019	$	3,054,720	$	(3,051,736)	$	59,823	$	3,164	$	(44,561)
Unrealized (losses) gains still held (3)	$	(331,987)	$	2,539,845	$	59,823	$	3,164	$	17,439

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.0 million for the three months ended March 31, 2019. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive (loss) earnings is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Amount represents the change in instrument specific credit risk in other comprehensive earnings in the consolidated statements of operations and comprehensive (loss) earnings as required by the adoption of ASU 2016-01 on January 1, 2018.

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2019.


	Level 3 Recurring Fair Value Measurements
	For the Three Months Ended March 31, 2018

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term			Contingent
	collateral		borrowings		rights		net		debt			consideration
Fair value, December 31, 2017	$	3,662,008	$	(3,653,265)	$	154,405	$	4,357	$	(44,982)		$	(554)
Total gains (losses) included in earnings:
Interest income (1)		5,688		—		—		—		—			—
Interest expense (1)		—		(20,080)		—		—		(139)			—
Change in fair value		(32,755)		28,424		9,180		(503)		1,224			—
Change in instrument specific credit risk		—		—		—		—		(1,440)	(2)		—
Total gains (losses) included in earnings		(27,067)		8,344		9,180		(503)		(355)			—
Transfers in and/or out of Level 3		—		—		—		—		—			—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—			—
Issuances		—		—		10,482		—		—			—
Settlements		(121,040)		136,444		—		—		—			554
Fair value, March 31, 2018	$	3,513,901	$	(3,508,477)	$	174,067	$	3,854	$	(45,337)		$	—
Unrealized (losses) gains still held (3)	$	(533,589)	$	2,694,742	$	174,067	$	3,854	$	16,663		$	—

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.2 million for the three months ended March 31, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive (loss) earnings is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2018.

The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and nonrecurring basis at March 31, 2019:


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	3,054,720	DCF	Prepayment rates	2.7 - 19.9	%	6.9	%
Securitized mortgage borrowings		(3,051,736)		Default rates	0.02 - 6.5	%	1.1	%
				Loss severities	3.1 - 81.9	%	46.1	%
				Discount rates	3.3 - 25.0	%	4.5	%
Other assets and liabilities
Mortgage servicing rights	$	59,823	DCF	Discount rate	9.0 - 14.0	%	9.2	%
				Prepayment rates	7.7 - 84.4	%	12.5	%
Derivative assets - IRLCs, net		3,164	Market pricing	Pull-through rate	7.5 - 99.9	%	71.2	%
Long-term debt		(44,561)	DCF	Discount rate	9.8	%	9.8	%

DCF = Discounted Cash Flow

For assets and liabilities backed by real estate, a significant increase in discount rates, default rates or loss severities would result in a significantly lower estimated fair value. The effect of changes in prepayment speeds would have differing effects depending on the seniority or other characteristics of the instrument. For other assets and liabilities, a significant increase in discount rates would result in a significantly lower estimated fair value. A significant increase in one-month LIBOR would result in a significantly higher estimated fair value for derivative liabilities, net, securitized trusts. The Company believes that the imprecision of an estimate could be significant.

The following tables present the changes in recurring fair value measurements included in net (loss) earnings for the three months ended March 31, 2019 and 2018:


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net (Loss) Earnings
	For the Three Months Ended March 31, 2019
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	6,255	$	—	$	21,084		$	—	$	—	$	—	$	27,339
Securitized mortgage borrowings		—		(13,553)		(27,240)			—		—		—		(40,793)
Long-term debt		—		(114)		—			265		—		—		151
Mortgage servicing rights (2)		—		—		—			—		(6,488)		—		(6,488)
Mortgage loans held-for-sale		—		—		—			—		—		3,469		3,469
Derivative assets — IRLCs		—		—		—			—		—		(187)		(187)
Derivative liabilities — Hedging Instruments		—		—		—			—		—		(422)		(422)
Total	$	6,255	$	(13,667)	$	(6,156)	(3)	$	265	$	(6,488)	$	2,860	$	(16,931)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive (loss) earnings.

(3)

For the three months ended March 31, 2019, change in the fair value of net trust assets, excluding REO was $6.2 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net (Loss) Earnings
	For the Three Months Ended March 31, 2018
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		Revenue		of Loans, net		Total
Securitized mortgage collateral	$	5,688	$	—	$	(32,755)		$	—	$	—	$	—	$	(27,067)
Securitized mortgage borrowings		—		(20,080)		28,424			—		—		—		8,344
Long-term debt		—		(139)		—			1,224		—		—		1,085
Mortgage servicing rights (2)		—		—		—			—		9,180		—		9,180
Mortgage loans held-for-sale		—		—		—			—		—		(4,891)		(4,891)
Derivative assets — IRLCs		—		—		—			—		—		(503)		(503)
Derivative liabilities — Hedging Instruments		—		—		—			—		285		(1,597)		(1,312)
Total	$	5,688	$	(20,219)	$	(4,331)	(3)	$	1,224	$	9,465	$	(6,991)	$	(15,164)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive (loss) earnings.

(3)

For the three months ended March 31, 2018, change in the fair value of net trust assets, excluding REO was $4.3 million.

The following is a description of the measurement techniques for items recorded at estimated fair value on a recurring basis.

Mortgage servicing rights—The Company elected to carry its MSRs arising from its mortgage loan origination operation at estimated fair value. The fair value of MSRs is based upon market prices for similar instruments and a discounted cash flow model. The valuation model incorporates assumptions that market participants would use in estimating the fair value of servicing. These assumptions include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. Mortgage servicing rights are considered a Level 3 measurement at March 31, 2019.

Mortgage loans held-for-sale—The Company elected to carry its mortgage loans held-for-sale originated or acquired at estimated fair value. Fair value is based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. Given the meaningful level of secondary market activity for mortgage loans, active pricing is available for similar assets and accordingly, the Company classifies its mortgage loans held-for-sale as a Level 2 measurement at March 31, 2019.

Mortgage-backed Securities—The Company invested in mortgage-backed securities collateralized by NonQM loans originated by the Company and sold to third party investors. Fair value is based on prices for other traded mortgage-backed securities with similar characteristics and bid information received from market participants. Given the market pricing for other traded mortgage-backed securities, active pricing is available for similar assets and accordingly, the Company classifies its mortgage-backed securities as a Level 2 measurement at March 31, 2019.

Securitized mortgage collateral—The Company elected to carry its securitized mortgage collateral at fair value. These assets consist primarily of non-conforming mortgage loans securitized between 2002 and 2007. Fair value measurements are based on the Company’s internal models used to compute the net present value of future expected cash flows with observable market participant assumptions, where available. The Company’s assumptions include its expectations of inputs that other market participants would use in pricing these assets. These assumptions include judgments about the underlying collateral, prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of March 31, 2019, securitized mortgage collateral had UPB of $3.4 billion, compared to an estimated fair value on the Company’s balance sheet of $3.1 billion. The aggregate UPB exceeded the fair value by $0.3 billion at March 31, 2019. As of March 31, 2019, the UPB of loans 90 days or more past due was $0.4 billion compared to an estimated fair value of $0.2 billion. The aggregate UPB of loans 90 days or more past due exceeded the fair value by $0.2 billion at March 31, 2019. Securitized mortgage collateral is considered a Level 3 measurement at March 31, 2019.

Securitized mortgage borrowings—The Company elected to carry its securitized mortgage borrowings at fair value. These borrowings consist of individual tranches of bonds issued by securitization trusts and are primarily backed by non-conforming mortgage loans. Fair value measurements include the Company’s judgments about the underlying collateral and assumptions such as prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of March 31, 2019, securitized mortgage borrowings had an outstanding principal balance of $3.4 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $3.1 billion. The aggregate outstanding principal balance exceeded the fair value by $0.3 billion at March 31, 2019. Securitized mortgage borrowings are considered a Level 3 measurement at March 31, 2019.

Long-term debt—The Company elected to carry its remaining long-term debt (consisting of junior subordinated notes) at fair value. These securities are measured based upon an analysis prepared by management, which considered the Company’s own credit risk, including settlements with trust preferred debt holders and discounted cash flow analysis. As of March 31, 2019, long-term debt had UPB of $62.0 million compared to an estimated fair value of $44.6 million. The aggregate UPB exceeded the fair value by $17.4 million at March 31, 2019. The long-term debt is considered a Level 3 measurement at March 31, 2019.

Derivative assets and liabilities, lending—The Company’s derivative assets and liabilities are carried at fair value as required by GAAP and are accounted for as free standing derivatives. The derivatives include IRLCs with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked in that interest rate. These commitments are determined to be derivative instruments in accordance with GAAP. The derivatives also include hedging instruments (typically TBA MBS) used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending originations. The Company hedges the period from the interest rate lock (assuming a fall-out factor) to the date of the loan sale. The estimated fair value of IRLCs are based on underlying loan types with similar characteristics using the TBA MBS market, which is actively quoted and easily validated through external sources. The data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program and expected sale date of the loan, adjusted for current market conditions. These valuations are adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. For all IRLCs, the base value is then adjusted for the anticipated Pull-through Rate. The anticipated Pull-through Rate is an unobservable input based on historical experience, which results in classification of IRLCs as a Level 3 measurement at March 31, 2019.

The fair value of the Hedging Instruments is based on the actively quoted TBA MBS market using observable inputs related to characteristics of the underlying MBS stratified by product, coupon and settlement date. Therefore, the Hedging Instruments are classified as a Level 2 measurement at March 31, 2019.

The following table includes information for the derivative assets and liabilities related to lending for the periods presented:


					Total Gains (Losses)
	Notional Amount				For the Three Months Ended
	March 31,		December 31,		March 31,
	2019		2018		2019		2018
Derivative – IRLC's (1)	$	214,872	$	183,595	$	(187)	$	(503)
Derivative – TBA MBS (2)		178,314		88,018		(1,476)		10,448
Derivative – Forward delivery loan commitment		74,821		150,000		—		—

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive (loss) earnings.

(2)

Amounts included in gain on sale of loans, net and (loss) gain on mortgage servicing rights, net within the accompanying consolidated statements of operations and comprehensive (loss) earnings.

Nonrecurring Fair Value Measurements

The Company is required to measure certain assets and liabilities at estimated fair value from time to time. These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820-10.

The following tables present financial and non-financial assets and liabilities measured using nonrecurring fair value measurements at March 31, 2019 and 2018, respectively:


	Nonrecurring Fair Value Measurements						Total Gains (1)
	March 31, 2019						For the Three Months Ended
	Level 1		Level 2		Level 3		March 31, 2019
REO (2)	$	—	$	3,562	$	—	$	3,473

(1)

Total gains reflect gains from all nonrecurring measurements during the period.

(2)

Balance represents REO at March 31, 2019, which have been impaired subsequent to foreclosure. For the three months ended March 31, 2019, the Company recorded $3.5 million in gains which represent recovery of the NRV attributable to an improvement in state specific loss severities on properties held during the period which resulted in an increase to NRV.


	Nonrecurring Fair Value Measurements						Total Gains (1)
	March 31, 2018						For the Three Months Ended
	Level 1		Level 2		Level 3		March 31, 2018
REO (2)	$	—	$	1,307	$	—	$	2,193

(1)

Total gains reflect gains from all nonrecurring measurements during the period.

(2)

Balance represents REO at March 31, 2018, which has been impaired subsequent to foreclosure. For the three months ended March 31, 2018, the Company recorded $2.2 million in gains which represent recovery of the NRV attributable to an improvement in state specific loss severities on properties held during the period which resulted in an increase to NRV.

Real estate owned—REO consists of residential real estate (within securitized mortgage trust assets) acquired in satisfaction of loans. Upon foreclosure, REO is adjusted to the estimated fair value of the residential real estate less estimated selling and holding costs, offset by expected contractual mortgage insurance proceeds to be received, if any. Subsequently, REO is recorded at the lower of carrying value or estimated fair value less costs to sell. REO balance representing REOs which have been impaired subsequent to foreclosure are subject to nonrecurring fair value measurement and are included in the nonrecurring fair value measurements tables. Fair values of REO are generally based on observable market inputs, and are considered Level 2 measurements at March 31, 2019.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes
Income Taxes	Note 8.—Income Taxes The Company calculates its quarterly tax provision pursuant to the guidelines in ASC 740 Income Taxes. ASC 740 requires companies to estimate the annual effective tax rate for current year ordinary income. In calculating the effective tax rate, permanent differences between financial reporting and taxable income are factored into the calculation, but temporary differences are not. The estimated annual effective tax rate represents the best estimate of the tax provision in relation to the best estimate of pre-tax ordinary income or loss. The estimated annual effective tax rate is then applied to year-to-date ordinary income or loss to calculate the year-to-date interim tax provision. The Company recorded income tax expense of $86 thousand and $610 thousand for the three months ended March 31, 2019 and 2018, respectively. Tax expense for the three months ended March 31, 2019 is primarily the result of state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, offset by a benefit resulting from the intraperiod allocation rules that are applied when there is a pre-tax loss from continuing operations and pre-tax income from other comprehensive income. As of December 31, 2018, the Company had estimated federal net operating loss (NOL) carryforwards of approximately $564.6 million. Federal net operating loss carryforwards begin to expire in 2027. As of December 31, 2018, the Company had estimated California NOL carryforwards of approximately $386.0 million, which begin to expire in 2028. The Company may not be able to realize the maximum benefit due to the nature and tax entities that holds the NOL.

Reconciliation of (Loss) Earnings Per Share

3 Months Ended

Mar. 31, 2019

Reconciliation of (Loss) Earnings Per Share

Reconciliation of (Loss) Earnings Per Share

Note 9.—Reconciliation of (Loss) Earnings Per Share

Basic net (loss) earnings per share is computed by dividing net (loss) earnings available to common stockholders (numerator) by the weighted average number of vested common shares outstanding during the period (denominator). Diluted net (loss) earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the if-converted method. Dilutive potential common shares include shares issuable upon conversion of Convertible Notes, dilutive effect of outstanding stock options and deferred stock units (DSUs).


	For the Three Months Ended
	March 31,
	2019		2018
Numerator for basic (loss) earnings per share:
Net (loss) earnings	$	(12,612)	$	3,873

Numerator for diluted (loss) earnings per share:
Net (loss) earnings	$	(12,612)	$	3,873
Interest expense attributable to convertible notes (1)		—		—
Net (loss) earnings plus interest expense attributable to convertible notes	$	(12,612)	$	3,873

Denominator for basic (loss) earnings per share (2):
Basic weighted average common shares outstanding during the period		21,159		20,951

Denominator for diluted (loss) earnings per share (2):
Basic weighted average common shares outstanding during the period		21,159		20,951
Net effect of dilutive convertible notes (1)		—		—
Net effect of dilutive stock options and DSU’s		—		151
Diluted weighted average common shares		21,159		21,102
Net (loss) earnings per common share:
Basic	$	(0.60)	$	0.18
Diluted	$	(0.60)	$	0.18

(1)

Adjustments to diluted (loss) earnings per share for the convertible notes for the three months ended March 31, 2019 and 2018 were excluded from the calculation, as they were anti-dilutive.

(2)

Number of shares presented in thousands.

At March 31, 2019, there were 1.2 million shares attributable to the Convertible Notes and 1.2 million stock options outstanding which were anti-dilutive. At March 31, 2018, there were 1.2 million shares attributable to the Convertible Notes which were anti-dilutive.

Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting

Segment Reporting

Note 10.—Segment Reporting

The Company has three primary reporting segments which include mortgage lending, long-term mortgage portfolio and real estate services. Unallocated corporate and other administrative costs, including the costs associated with being a public company, are presented in Corporate and other.


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Three Months Ended March 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	12,214	$	—	$	—	$	—	$	12,214
Real estate services fees, net		—		806		—		—		806
Servicing fees, net		2,969		—		—		—		2,969
Loss on mortgage servicing rights, net		(5,623)		—		—		—		(5,623)
Other revenue		—		—		(32)		32		—
Other operating expense		(17,500)		(387)		(138)		(4,245)		(22,270)
Other income (expense)		1,415		—		(1,580)		(457)		(622)
Net (loss) earnings before income tax expense	$	(6,525)	$	419	$	(1,750)	$	(4,670)		(12,526)
Income tax expense										86
Net loss									$	(12,612)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Three Months Ended March 31, 2018:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	21,482	$	—	$	—	$	—	$	21,482
Real estate services fees, net		—		1,385		—		—		1,385
Servicing fees, net		9,463		—		—		—		9,463
Loss on mortgage servicing rights, net		7,705		—		—		—		7,705
Other revenue		—		—		84		6		90
Other operating expense		(31,548)		(638)		(65)		(3,497)		(35,748)
Other income (expense)		334		—		196		(424)		106
Net earnings (loss) before income tax expense	$	7,436	$	747	$	215	$	(3,915)	$	4,483
Income tax expense										610
Net earnings									$	3,873


	Mortgage		Real Estate		Long-term		Corporate
Balance Sheet Items as of:	Lending		Services		Portfolio		and other		Consolidated
Total Assets at March 31, 2019 (1)	$	580,569	$	104	$	3,067,979	$	25,079	$	3,673,731
Total Assets at December 31, 2018 (1)	$	475,734	$	126	$	3,165,669	$	6,414	$	3,647,943

(1)

All segment asset balances exclude intercompany balances.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

Note 11.—Commitments and Contingencies

Legal Proceedings

The Company is a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any.

In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and estimable. In any case, there may be an exposure to losses in excess of any such amounts whether accrued or not. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated loss will change from time to time, and actual results may vary significantly from the current estimate. Therefore, an estimate of possible loss represents what the Company believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure.

Based on the Company’s current understanding of these pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, in light of the inherent uncertainties involved in these matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period.

The legal matter updates summarized below are ongoing and may have an effect on the Company’s business and future financial condition and results of operations:

In 2001, Baker, et al. v. Century Financial Group, et al., was filed in the Circuit Court of Clay County, Missouri, as a putative class action against the Company, Century Financial, and others, claiming violations of Missouri's Second Mortgage Loan Act. Plaintiffs seek on behalf of themselves and the members of the putative class, among other things, disgorgement or restitution of all allegedly improperly-collected charges, the right to rescind all affected loan transactions, the right to offset any finance charges, closing costs, points or other loan fees paid against the principal amounts due on the loans if rescinded, actual and punitive damages, and attorneys' fees. On March 12, 2019, the parties entered into a settlement agreement that resolved all matters among them.

On December 7, 2011, a purported class action was filed in the Circuit Court of Baltimore City entitled Timm, v. Impac Mortgage Holdings, Inc., et al. alleging on behalf of holders of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock (Preferred B) and 9.125% Series C Cumulative Redeemable Preferred Stock (Preferred C) who did not tender their stock in connection with the Company’s 2009 completion of its Offer to Purchase and Consent Solicitation that the Company failed to achieve the required consent of the Preferred B and C holders, the consents to amend the Preferred stock were not effective because they were given on unissued stock (after redemption), the Company tied the tender offer with a consent requirement that constituted an improper “vote buying” scheme, and that the tender offer was a breach of a fiduciary duty. The action seeks the payment of two quarterly dividends for the Preferred B and C holders, the unwinding of the consents and reinstatement of the cumulative dividend on the Preferred B and C stock, and the election of two directors by the Preferred B and C holders. The action also seeks punitive damages and legal expenses. On July 16, 2018, the Court entered a Judgement Order whereby it (1) declared and entered judgment in favor of all defendants on all claims related to the Preferred C holders and all claims against all individual defendants thereby affirming the validity of the 2009 amendments to the Series B Articles Supplementary; (2) declared its interpretation of the voting provision language in the Preferred B Articles Supplementary to mean that consent of two-thirds of the Preferred B stockholders was required to approve the 2009 amendments to the Preferred B Articles Supplementary, which consent was not obtained, thus rendering the amendments invalid and leaving the 2004 Preferred B Articles Supplementary in effect; (3) ordered the Company to hold a special election within sixty days for the Preferred B stockholders to elect two directors to the Board of Directors pursuant to the 2004 Preferred B Articles Supplementary (which Directors will remain on the Company’s Board of Directors until such time as all accumulated dividends on the Preferred B have been paid or set aside for payment) and, (4) declared that the Company is required to pay three quarters of dividends on the Preferred B stock under the 2004 Articles Supplementary (approximately, $1.2 million, but did not order the Company to make any payment at this time). The Court declined to certify any class pending the outcome of appeals and certified its Judgment Order for immediate appeal. On April 10, 2019, the Company filed its opening appellate brief.

On April 30, 2012, a purported class action was filed entitled Marentes v. Impac Mortgage Holdings, Inc., alleging that certain loan modification activities of the Company constitute an unfair business practice, false advertising and marketing, and that the fees charged are improper. The complaint seeks unspecified damages, restitution, injunctive relief, attorney’s fees and prejudgment interest. On August 22, 2012, the plaintiffs filed an amended complaint adding Impac Funding Corporation as a defendant and on October 2, 2012, the plaintiffs dismissed Impac Mortgage Holdings, Inc., without prejudice. On January 11, 2019, the trial court determined that the plaintiffs were unable to prove their case and ordered that judgment be entered in favor of the defendant. On April 19, 2019, the plaintiffs filed their Notice of Appeal.

On September 18, 2018, a purported class action was filed in the Superior Court of California, Orange County, entitled McNair v. Impac Mortgage Corp. dba CashCall Mortgage. The plaintiff contends the defendant did not pay the plaintiff and purported class members overtime compensation, provide required meal and rest breaks, or provide accurate wage statements. The action seeks damages, restitution, penalties, interest, attorney’s fees, and all other appropriate injunctive, declaratory, and equitable relief. On March 8, 2019, a First Amended Complaint was filed, which added a claim alleging violations of the California Labor Code Private Attorneys General Act (PAGA). On March 12, 2019, the parties filed a stipulation with the court stating (1) the plaintiff’s individual claims should be arbitrated pursuant to the parties’ arbitration agreement, (2) the class claims should be struck from the First Amended Complaint, and (3) the plaintiff will proceed solely with regard to her PAGA claims.

On November 2, 2018, a purported class action was filed in the Superior Court of California, Orange County, entitled Riggin v. Impac Mortgage Corp. dba CashCall Mortgage. The plaintiff contends the defendant did not pay the plaintiff and purported class members overtime compensation, provide required meal and rest breaks, or provide accurate wage statements. The action seeks damages, restitution, penalties, interest, attorney’s fees, and all other appropriate injunctive, declaratory, and equitable relief. On February 15, 2019, the court granted the Company’s motion to compel arbitration of the plaintiff’s individual claims and stayed all other claims pending completion of the arbitration.

On December 27, 2018, a purported class action was filed in the Superior Court of California, Orange County, entitled Batres v. Impac Mortgage Corp. dba CashCall Mortgage. The plaintiff contends the defendant did not pay the plaintiff and purported class members overtime compensation, provide required meal and rest breaks, or provide accurate wage statements. The action seeks damages, restitution, penalties, interest, attorney’s fees, and all other appropriate injunctive, declaratory, and equitable relief. On March 14, 2019, the plaintiff filed an amended complaint alleging only a violation of the California Labor Code Private Attorneys General Act seeking penalties, attorneys’ fees, and such other appropriate relief.

The Company is a party to other litigation and claims which are normal in the course of the Company’s operations. While the results of such other litigation and claims cannot be predicted with certainty, we believe the final outcome of such matters will not have a material adverse effect on our financial condition or results of operations. The Company believes that it has meritorious defenses to the claims and intends to defend these claims vigorously and as such the Company believes the final outcome of such matters will not have a material adverse effect on its financial condition or results of operations. Nevertheless, litigation is uncertain and the Company may not prevail in the lawsuits and can express no opinion as to their ultimate resolution. An adverse judgment in any of these matters could have a material adverse effect on the Company’s financial position and results of operations.

Please refer to IMH’s report on Form 10-K for the year ended December 31, 2018 for a description of litigation and claims.

Repurchase Reserve

When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company’s whole loan sale agreements generally require it to repurchase loans if the Company breached a representation or warranty given to the loan purchaser.

The following table summarizes the repurchase reserve activity, within other liabilities on the consolidated balance sheets, related to previously sold loans for the three months ended March 31, 2019 and year ended December 31, 2018:


	March 31,		December 31,
	2019		2018
Beginning balance	$	7,657	$	6,020
Provision for repurchases		1,630		5,074
Settlements		(321)		(3,437)
Total repurchase reserve	$	8,966	$	7,657

Commitments to Extend Credit

The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. These loan commitments are treated as derivatives and are carried at fair value. See Note 7. — Fair Value of Financial Instruments for more information.

Equity and Share Based Payments

3 Months Ended

Mar. 31, 2019

Equity and Share Based Payments

Equity and Share Based Payments

Note 12.—Equity and Share Based Payments

Redeemable Preferred Stock

At March 31, 2019, the Company had outstanding $66.6 million liquidation preference of Series B and Series C Preferred Stock. The holders of each series of Preferred Stock, which are non‑voting and redeemable at the option of the Company, retain the right to a $25.00 per share liquidation preference in the event of a liquidation of the Company and the right to receive dividends on the Preferred Stock if any such dividends are declared.

As previously disclosed within Note 11.—Redeemable Preferred Stock, of the 2018 Form 10-K, all rights of the Preferred B holders under the 2004 Articles were deemed reinstated. Subject to an appeal, the Company has cumulative undeclared dividends in arrears of approximately $14.8 million, or approximately $22.27 per outstanding share of Preferred B, increasing the liquidation value to approximately $47.27 per share. Additionally, every quarter the cumulative undeclared dividends in arrears will increase by $0.5859 per share, or approximately $390 thousand. The liquidation preference, inclusive of the cumulative undeclared dividends in arrears, is only payable upon voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs.

Share Based Payments

The following table summarizes activity, pricing and other information for the Company’s stock options for the three months ended March 31, 2019:


		Weighted-
		Average
	Number of	Exercise
	Shares	Price
Options outstanding at December 31, 2018	1,001,469	$	13.16
Options granted	562,500		3.69
Options exercised	(64,351)		2.52
Options forfeited/cancelled	(293,217)		14.47
Options outstanding at March 31, 2019	1,206,401		8.99
Options exercisable at March 31, 2019	469,164	$	14.07

As of March 31, 2019, there was approximately $1.5 million of total unrecognized compensation cost related to stock option compensation arrangements granted under the plan, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 2.4 years.

The following table summarizes activity, pricing and other information for the Company’s restricted stock units (RSU’s) for the three months ended March 31, 2019:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSU's outstanding at December 31, 2018	—	$	—
RSU’s granted	75,000		3.75
RSU’s issued	—		—
RSU’s forfeited/cancelled	—		—
RSU’s outstanding at March 31, 2019	75,000	$	3.75

As of March 31, 2019, there was approximately $273 thousand of total unrecognized compensation cost related to the RSU compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 2.9 years

The following table summarizes activity, pricing and other information for the Company’s deferred stock units (DSU’s) for the three months ended March 31, 2019:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU's outstanding at December 31, 2018	24,500	$	10.11
DSU’s granted	30,000		3.75
DSU’s issued	—		—
DSU’s forfeited/cancelled	—		—
DSU’s outstanding at March 31, 2019	54,500	$	6.61

As of March 31, 2019, there was approximately $141 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 2.6 years.

Summary of Business and Financial Statement Presentation (Policies)	3 Months Ended
	Mar. 31, 2019
Summary of Business and Financial Statement Presentation
Financial Statement Presentation	Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the United States Securities and Exchange Commission (SEC). All significant intercompany balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage-backed securities, mortgage servicing rights, mortgage loans held-for-sale and derivative instruments, including interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions.
Recent Accounting Pronouncements	Accounting Pronouncements Adopted in 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases (Topic 842)”, and subsequent amendments to the initial guidance: Accounting Standards Update (ASU) 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The Company adopted ASU 2016-02 on January 1, 2019 and applied the practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 will remain unchanged in accordance with Leases (Topic 840). On January 1, 2019, the Company recognized right of use (ROU) assets of $19.7 million (net of the reversal of $3.8 million deferred rent liability) and lease liabilities of $23.4 million in the consolidated balance sheet. There was no impact to retained earnings upon adoption of Topic 842. For additional information related to the impact of the new guidance, see Note 4.—Leases. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from accumulated other comprehensive earnings (AOCE) to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act) which was signed into law in the fourth quarter of 2017. The ASU is effective in years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. This ASU specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted this guidance on January 1, 2019, and the adoption of this ASU had no impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This update requires companies to measure all expected credit losses for financial assets not recorded at fair value at the reporting date and includes in its scope: loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures and other financial assets that have contractual rights to receive cash flows. The standard also amends the accounting for credit losses on available-for-sale debt securities, purchased financial assets with credit deterioration and trade and other receivables. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments, Credit Losses”, which made technical corrections and improvements to the previous ASU issued. The standards will take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of these ASUs to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” The ASU eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40).” This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Mortgage Loans Held-for-Sale (Tables)

3 Months Ended

Mar. 31, 2019

Mortgage Loans Held-for-Sale

Summary of the unpaid principal balance (UPB ) of mortgage loans held-for-sale by type


	March 31,		December 31,
	2019		2018
Government (1)	$	24,182	$	39,522
Conventional (2)		86,953		53,148
Non-qualified mortgages (NonQM).		341,729		256,491
Fair value adjustment (3)		7,909		4,440
Total mortgage loans held-for-sale	$	460,773	$	353,601

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC).

(3)

Changes in fair value are included in gain on sale of loans, net in the accompanying consolidated statements of operations and comprehensive (loss) earnings.

Schedule of gain on loans held-for-sale (LHFS)


	For the Three Months Ended
	March 31,
	2019		2018
Gain on sale of mortgage loans	$	13,608	$	29,338
Premium from servicing retained loan sales		1,583		10,482
Unrealized losses from derivative financial instruments		(609)		(2,100)
Realized (losses) gains from derivative financial instruments		(1,054)		12,045
Mark to market gain (loss) on LHFS		3,469		(4,891)
Direct origination expenses, net		(3,153)		(23,014)
Provision for repurchases		(1,630)		(378)
Total gain on sale of loans, net	$	12,214	$	21,482

Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2019

Mortgage Servicing Rights

Schedule of changes in the fair value of MSRs


	March 31,		December 31,
	2019		2018
Balance at beginning of period	$	64,728	$	154,405
Additions from servicing retained loan sales		1,583		24,879
Reductions from bulk sales		—		(118,313)
Changes in fair value (1)		(6,488)		3,757
Fair value of MSRs at end of period	$	59,823	$	64,728

(1)

Changes in fair value are included within (loss) gain on mortgage servicing rights, net in the accompanying consolidated statements of operations and comprehensive (loss) earnings.

Schedule of the outstanding loans serviced by entity


	March 31,		December 31,
	2019		2018
Government insured	$	93,873	$	51,157
Conventional		6,139,530		6,165,129
NonQM		1,838		1,848
Total loans serviced (1)	$	6,235,241	$	6,218,134

(1)

No collateral was pledged as part of the MSR Financing at March 31, 2019 or December 31, 2018.

Schedule of hypothetical changes in the fair values of MSRs


	March 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2019		2018
Fair value of MSRs	$	59,823	$	64,728
Prepayment Speed:
Decrease in fair value from 10% adverse change		(1,925)		(1,419)
Decrease in fair value from 20% adverse change		(3,865)		(2,918)
Decrease in fair value from 30% adverse change		(5,805)		(4,475)
Discount Rate:
Decrease in fair value from 10% adverse change		(2,082)		(2,345)
Decrease in fair value from 20% adverse change		(4,027)		(4,532)
Decrease in fair value from 30% adverse change		(5,849)		(6,575)

Schedule of Gain (loss) on mortgage servicing rights


	For the Three Months Ended
	March 31,
	2019		2018
Change in fair value of mortgage servicing rights	$	(6,488)	$	9,180
Gain (loss) on sale of mortgage servicing rights		865		(2)
Realized and unrealized losses from hedging instruments		—		(1,473)
(Loss) gain on mortgage servicing rights, net	$	(5,623)	$	7,705

Schedule of components of servicing income


	For the Three Months Ended
	March 31,
	2019		2018
Contractual servicing fees	$	4,189	$	11,538
Late and ancillary fees		55		151
Subservicing and other costs		(1,275)		(2,226)
Servicing fees, net	$	2,969	$	9,463

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Lessee, Lease, Description [Line Items]

Schedule of maturities of operating leases


Remainder of 2019	$	3,314
Year 2020		4,541
Year 2021		4,593
Year 2022		4,721
Year 2023		4,867
Year 2024		3,729
Total lease commitments		25,765
Less: imputed interest		(3,228)
Total operating lease liability	$	22,537

ASU 2016-02

Lessee, Lease, Description [Line Items]

Schedule of balance sheets, weighted average remaining lease term and weighted average discount rates


		March 31,
Lease Assets and Liabilities	Classification	2019
Assets
Operating lease ROU assets	Other assets	$ 18,861

Liabilities
Operating lease liabilities	Other liabilities	$ 22,537

Weighted average remaining lease term		5.48 years
Weighted average discount rate		4.8	%

Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Instrument [Line Items]

Schedule of information on warehouse borrowings


	Maximum		Balance Outstanding At
	Borrowing		March 31,		December 31,
	Capacity		2019		2018		Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	31,753	$	84,897	June 14, 2019
Repurchase agreement 2		50,000		45,522		47,108	May 28, 2019
Repurchase agreement 3		225,000		167,408		35,920	January 17, 2020
Repurchase agreement 4		200,000		129,333		80,141	July 12, 2019
Repurchase agreement 5 (1)		175,000		20,003		23,370	March 31, 2020
Repurchase agreement 6		100,000		10,744		12,701	June 27, 2019
Total warehouse borrowings	$	900,000	$	404,763	$	284,137

(1)

In April 2019, the maturity of the line was extended to March 31, 2020.

Junior Subordinated Notes

Debt Instrument [Line Items]

Schedule of remaining principal balance and fair value


	March 31,		December 31,
	2019		2018
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,439)		(17,144)
Total Junior Subordinated Notes	$	44,561	$	44,856

(1)

Stated maturity of March 2034; requires quarterly interest payments at a variable rate of 3‑month LIBOR plus 3.75% per annum.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Securitized Mortgage Trusts (Tables)

3 Months Ended

Mar. 31, 2019

Securitized Mortgage Trusts

Schedule of securitized mortgage trust assets


	March 31,		December 31,
	2019		2018
Securitized mortgage collateral	$	3,054,720	$	3,157,071
Real estate owned (REO)		13,191		8,519
Total securitized mortgage trust assets	$	3,067,911	$	3,165,590

Schedule of securitized mortgage trust liabilities


	March 31,		December 31,
	2019		2018
Securitized mortgage borrowings	$	3,051,736	$	3,148,215

Schedule of changes in fair value of net trust assets, including trust REO losses


	For the Three Months Ended
	March 31,
	2019		2018
Change in fair value of net trust assets, excluding REO	$	(6,156)	$	(4,331)
Gains from REO		3,473		2,193
Change in fair value of net trust assets, including trust REO gains	$	(2,683)	$	(2,138)

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value of Financial Instruments

Schedule of estimated fair value of financial instruments included in consolidated financial statements


	March 31, 2019								December 31, 2018
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	22,995	$	22,995	$	—	$	—	$	23,200	$	23,200	$	—	$	—
Restricted cash		6,865		6,865		—		—		6,989		6,989		—		—
Mortgage loans held-for-sale		460,773		—		460,773		—		353,601		—		353,601		—
Mortgage servicing rights		59,823		—		—		59,823		64,728		—		—		64,728
Derivative assets, lending, net		3,164		—		—		3,164		3,351		—		—		3,351
Mortgage-backed securities		6,368		—		6,368		—		1,000		—		1,000		—
Securitized mortgage collateral		3,054,720		—		—		3,054,720		3,157,071		—		—		3,157,071

Liabilities
Warehouse borrowings	$	404,763	$	—	$	404,763	$	—	$	284,137	$	—	$	284,137	$	—
Convertible notes		24,987		—		—		24,987		24,985		—		—		24,985
Long-term debt		44,561		—		—		44,561		44,856		—		—		44,856
Securitized mortgage borrowings		3,051,736		—		—		3,051,736		3,148,215		—		—		3,148,215
Derivative liabilities, lending, net		1,105		—		1,105		—		683		—		683		—

Schedule of assets and liabilities that are measured at estimated fair value on recurring basis


	Recurring Fair Value Measurements
	March 31, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	460,773	$	—	$	—	$	353,601	$	—
Mortgage-backed securities		—		6,368		—		—		1,000		—
Derivative assets, lending, net (1)		—		—		3,164		—		—		3,351
Mortgage servicing rights		—		—		59,823		—		—		64,728
Securitized mortgage collateral		—		—		3,054,720		—		—		3,157,071
Total assets at fair value	$	—	$	467,141	$	3,117,707	$	—	$	354,601	$	3,225,150
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	3,051,736	$	—	$	—	$	3,148,215
Long-term debt		—		—		44,561		—		—		44,856
Derivative liabilities, lending, net (2)		—		1,105		—		—		683		—
Total liabilities at fair value	$	—	$	1,105	$	3,096,297	$	—	$	683	$	3,193,071

(1)

(2)

At March 31, 2019 and December 31, 2018, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

Schedule of reconciliation for all assets and liabilities measured at estimated fair value on recurring basis using significant unobservable inputs (Level 3)


	Level 3 Recurring Fair Value Measurements
	For the Three Months Ended March 31, 2019

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term
	collateral		borrowings		rights		net		debt
Fair value, December 31, 2018	$	3,157,071	$	(3,148,215)	$	64,728	$	3,351	$	(44,856)
Total gains (losses) included in earnings:
Interest income (1)		6,255		—		—		—		—
Interest expense (1)		—		(13,553)		—		—		(114)
Change in fair value		21,084		(27,240)		(6,488)		(187)		265
Change in fair value of instrument specific credit risk		—		—		—		—		144	(2)
Total gains (losses) included in earnings		27,339		(40,793)		(6,488)		(187)		295
Transfers in and/or out of Level 3		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—
Issuances		—		—		1,583		—		—
Settlements		(129,690)		137,272		—		—		—
Fair value, March 31, 2019	$	3,054,720	$	(3,051,736)	$	59,823	$	3,164	$	(44,561)
Unrealized (losses) gains still held (3)	$	(331,987)	$	2,539,845	$	59,823	$	3,164	$	17,439

(1)

(2)

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2019.


	Level 3 Recurring Fair Value Measurements
	For the Three Months Ended March 31, 2018

							Interest
	Securitized		Securitized		Mortgage		rate lock		Long-
	mortgage		mortgage		servicing		commitments,		term			Contingent
	collateral		borrowings		rights		net		debt			consideration
Fair value, December 31, 2017	$	3,662,008	$	(3,653,265)	$	154,405	$	4,357	$	(44,982)		$	(554)
Total gains (losses) included in earnings:
Interest income (1)		5,688		—		—		—		—			—
Interest expense (1)		—		(20,080)		—		—		(139)			—
Change in fair value		(32,755)		28,424		9,180		(503)		1,224			—
Change in instrument specific credit risk		—		—		—		—		(1,440)	(2)		—
Total gains (losses) included in earnings		(27,067)		8,344		9,180		(503)		(355)			—
Transfers in and/or out of Level 3		—		—		—		—		—			—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—			—
Issuances		—		—		10,482		—		—			—
Settlements		(121,040)		136,444		—		—		—			554
Fair value, March 31, 2018	$	3,513,901	$	(3,508,477)	$	174,067	$	3,854	$	(45,337)		$	—
Unrealized (losses) gains still held (3)	$	(533,589)	$	2,694,742	$	174,067	$	3,854	$	16,663		$	—

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.2 million for the three months ended March 31, 2018. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations and comprehensive (loss) earnings is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

(3)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2018.

Schedule of quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	3,054,720	DCF	Prepayment rates	2.7 - 19.9	%	6.9	%
Securitized mortgage borrowings		(3,051,736)		Default rates	0.02 - 6.5	%	1.1	%
				Loss severities	3.1 - 81.9	%	46.1	%
				Discount rates	3.3 - 25.0	%	4.5	%
Other assets and liabilities
Mortgage servicing rights	$	59,823	DCF	Discount rate	9.0 - 14.0	%	9.2	%
				Prepayment rates	7.7 - 84.4	%	12.5	%
Derivative assets - IRLCs, net		3,164	Market pricing	Pull-through rate	7.5 - 99.9	%	71.2	%
Long-term debt		(44,561)	DCF	Discount rate	9.8	%	9.8	%

DCF = Discounted Cash Flow

Schedule of changes in recurring fair value measurements included in net earnings


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net (Loss) Earnings
	For the Three Months Ended March 31, 2019
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of Loans, net		Total
Securitized mortgage collateral	$	6,255	$	—	$	21,084		$	—	$	—	$	—	$	27,339
Securitized mortgage borrowings		—		(13,553)		(27,240)			—		—		—		(40,793)
Long-term debt		—		(114)		—			265		—		—		151
Mortgage servicing rights (2)		—		—		—			—		(6,488)		—		(6,488)
Mortgage loans held-for-sale		—		—		—			—		—		3,469		3,469
Derivative assets — IRLCs		—		—		—			—		—		(187)		(187)
Derivative liabilities — Hedging Instruments		—		—		—			—		—		(422)		(422)
Total	$	6,255	$	(13,667)	$	(6,156)	(3)	$	265	$	(6,488)	$	2,860	$	(16,931)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive (loss) earnings.

(3)

For the three months ended March 31, 2019, change in the fair value of net trust assets, excluding REO was $6.2 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net (Loss) Earnings
	For the Three Months Ended March 31, 2018
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other		Gain on Sale
	Income (1)		Expense (1)		Assets			Debt		Revenue		of Loans, net		Total
Securitized mortgage collateral	$	5,688	$	—	$	(32,755)		$	—	$	—	$	—	$	(27,067)
Securitized mortgage borrowings		—		(20,080)		28,424			—		—		—		8,344
Long-term debt		—		(139)		—			1,224		—		—		1,085
Mortgage servicing rights (2)		—		—		—			—		9,180		—		9,180
Mortgage loans held-for-sale		—		—		—			—		—		(4,891)		(4,891)
Derivative assets — IRLCs		—		—		—			—		—		(503)		(503)
Derivative liabilities — Hedging Instruments		—		—		—			—		285		(1,597)		(1,312)
Total	$	5,688	$	(20,219)	$	(4,331)	(3)	$	1,224	$	9,465	$	(6,991)	$	(15,164)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in (loss) gain on MSRs, net in the consolidated statements of operations and comprehensive (loss) earnings.

(3)

For the three months ended March 31, 2018, change in the fair value of net trust assets, excluding REO was $4.3 million.

Schedule of information for derivative assets and liabilities - lending


					Total Gains (Losses)
	Notional Amount				For the Three Months Ended
	March 31,		December 31,		March 31,
	2019		2018		2019		2018
Derivative – IRLC's (1)	$	214,872	$	183,595	$	(187)	$	(503)
Derivative – TBA MBS (2)		178,314		88,018		(1,476)		10,448
Derivative – Forward delivery loan commitment		74,821		150,000		—		—

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations and comprehensive (loss) earnings.

(2)

Amounts included in gain on sale of loans, net and (loss) gain on mortgage servicing rights, net within the accompanying consolidated statements of operations and comprehensive (loss) earnings.

Schedule of financial and non-financial assets and liabilities measured using nonrecurring fair value measurements


	Nonrecurring Fair Value Measurements						Total Gains (1)
	March 31, 2019						For the Three Months Ended
	Level 1		Level 2		Level 3		March 31, 2019
REO (2)	$	—	$	3,562	$	—	$	3,473

(1)

Total gains reflect gains from all nonrecurring measurements during the period.

(2)


	Nonrecurring Fair Value Measurements						Total Gains (1)
	March 31, 2018						For the Three Months Ended
	Level 1		Level 2		Level 3		March 31, 2018
REO (2)	$	—	$	1,307	$	—	$	2,193

(1)

Total gains reflect gains from all nonrecurring measurements during the period.

(2)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Reconciliation of (Loss) Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Reconciliation of (Loss) Earnings Per Share

Schedule of computation of basic and diluted earnings per common share


	For the Three Months Ended
	March 31,
	2019		2018
Numerator for basic (loss) earnings per share:
Net (loss) earnings	$	(12,612)	$	3,873

Numerator for diluted (loss) earnings per share:
Net (loss) earnings	$	(12,612)	$	3,873
Interest expense attributable to convertible notes (1)		—		—
Net (loss) earnings plus interest expense attributable to convertible notes	$	(12,612)	$	3,873

Denominator for basic (loss) earnings per share (2):
Basic weighted average common shares outstanding during the period		21,159		20,951

Denominator for diluted (loss) earnings per share (2):
Basic weighted average common shares outstanding during the period		21,159		20,951
Net effect of dilutive convertible notes (1)		—		—
Net effect of dilutive stock options and DSU’s		—		151
Diluted weighted average common shares		21,159		21,102
Net (loss) earnings per common share:
Basic	$	(0.60)	$	0.18
Diluted	$	(0.60)	$	0.18

(1)

Adjustments to diluted (loss) earnings per share for the convertible notes for the three months ended March 31, 2019 and 2018 were excluded from the calculation, as they were anti-dilutive.

(2)

Number of shares presented in thousands.

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting

Reconciliation of earnings from segment to consolidated


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Three Months Ended March 31, 2019:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	12,214	$	—	$	—	$	—	$	12,214
Real estate services fees, net		—		806		—		—		806
Servicing fees, net		2,969		—		—		—		2,969
Loss on mortgage servicing rights, net		(5,623)		—		—		—		(5,623)
Other revenue		—		—		(32)		32		—
Other operating expense		(17,500)		(387)		(138)		(4,245)		(22,270)
Other income (expense)		1,415		—		(1,580)		(457)		(622)
Net (loss) earnings before income tax expense	$	(6,525)	$	419	$	(1,750)	$	(4,670)		(12,526)
Income tax expense										86
Net loss									$	(12,612)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Three Months Ended March 31, 2018:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	21,482	$	—	$	—	$	—	$	21,482
Real estate services fees, net		—		1,385		—		—		1,385
Servicing fees, net		9,463		—		—		—		9,463
Loss on mortgage servicing rights, net		7,705		—		—		—		7,705
Other revenue		—		—		84		6		90
Other operating expense		(31,548)		(638)		(65)		(3,497)		(35,748)
Other income (expense)		334		—		196		(424)		106
Net earnings (loss) before income tax expense	$	7,436	$	747	$	215	$	(3,915)	$	4,483
Income tax expense										610
Net earnings									$	3,873

Reconciliation of assets from segment to consolidated


	Mortgage		Real Estate		Long-term		Corporate
Balance Sheet Items as of:	Lending		Services		Portfolio		and other		Consolidated
Total Assets at March 31, 2019 (1)	$	580,569	$	104	$	3,067,979	$	25,079	$	3,673,731
Total Assets at December 31, 2018 (1)	$	475,734	$	126	$	3,165,669	$	6,414	$	3,647,943

All segment asset balances exclude intercompany balances.

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Schedule of the activity related to the repurchase reserve for previously sold loans


	March 31,		December 31,
	2019		2018
Beginning balance	$	7,657	$	6,020
Provision for repurchases		1,630		5,074
Settlements		(321)		(3,437)
Total repurchase reserve	$	8,966	$	7,657

Equity and Share Based Payments (Tables)

3 Months Ended

Mar. 31, 2019

Summary of activity, pricing and other information for the Company's stock options


		Weighted-
		Average
	Number of	Exercise
	Shares	Price
Options outstanding at December 31, 2018	1,001,469	$	13.16
Options granted	562,500		3.69
Options exercised	(64,351)		2.52
Options forfeited/cancelled	(293,217)		14.47
Options outstanding at March 31, 2019	1,206,401		8.99
Options exercisable at March 31, 2019	469,164	$	14.07

Restricted stock units

Summary of activity, pricing and other information for the Company's


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSU's outstanding at December 31, 2018	—	$	—
RSU’s granted	75,000		3.75
RSU’s issued	—		—
RSU’s forfeited/cancelled	—		—
RSU’s outstanding at March 31, 2019	75,000	$	3.75

Deferred stock units

Summary of activity, pricing and other information for the Company's


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU's outstanding at December 31, 2018	24,500	$	10.11
DSU’s granted	30,000		3.75
DSU’s issued	—		—
DSU’s forfeited/cancelled	—		—
DSU’s outstanding at March 31, 2019	54,500	$	6.61

Summary of Business and Financial Statement Presentation (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Recent Accounting Pronouncements
Right of use asset	$ 18,861
Deferred rent liability	3,800	$ 3,800
Lease liabilities	$ 22,537
ASU 2016-02 \| Restatement adjustment
Recent Accounting Pronouncements
Right of use asset		19,700
Deferred rent liability		3,800
Lease liabilities		$ 23,400

Mortgage Loans Held-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Mortgage loans held-for-Sale
Fair value adjustment	$ 7,909		$ 4,440
Total mortgage loans held-for-sale	460,773		353,601
Gain on LHFS
Provision for repurchases	(1,630)	$ (378)
Total gain on sale of loans, net	10,984	28,851
Government
Mortgage loans held-for-Sale
Fair value adjustment	24,182		39,522
Conventional
Mortgage loans held-for-Sale
Fair value adjustment	86,953		53,148
Other
Mortgage loans held-for-Sale
Fair value adjustment	341,729		$ 256,491
LHFS
Gain on LHFS
Gain on sale of mortgage loans	13,608	29,338
Premium from servicing retained loan sales	1,583	10,482
Unrealized losses from derivative financial instruments	(609)	(2,100)
Realized gains (losses) from derivative financial instruments	(1,054)	12,045
Mark to market (loss) gain on LHFS	3,469	(4,891)
Direct origination expenses, net	(3,153)	(23,014)
Provision for repurchases	(1,630)	(378)
Total gain on sale of loans, net	$ 12,214	$ 21,482

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Changes in the fair value of MSRs
Balance at beginning of period	$ 64,728	$ 154,405	$ 154,405
Additions from servicing retained loan sales	1,583		24,879
Reductions from bulk sales			(118,313)
Changes in fair value	(6,488)		3,757
Fair value of MSRs at end of period	59,823		64,728
Total loans serviced	6,235,241		6,218,134
Amount pledged as collateral as part of the MSR Financing	0		0
Mortgage Servicing Rights Sensitivity Analysis
Change in fair value of mortgage servicing rights	(6,488)	9,180
Gain (loss) on sale of mortgage servicing rights	865	(2)
Realized and unrealized losses from hedging instruments		(1,473)
(Loss) gain on mortgage servicing rights, net	(5,623)	7,705
Servicing income, net
Contractual servicing fees	4,189	11,538
Late and ancillary fees	55	151
Subservicing and other costs	(1,275)	(2,226)
Servicing fees, net	2,969	$ 9,463
Government
Changes in the fair value of MSRs
Total loans serviced	93,873		51,157
Conventional
Changes in the fair value of MSRs
Total loans serviced	6,139,530		6,165,129
NonQM
Changes in the fair value of MSRs
Total loans serviced	1,838		1,848
Mortgage servicing rights
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs	59,823		64,728
Prepayment Speed, Decrease in fair value from 10% adverse change	(1,925)		(1,419)
Prepayment Speed, Decrease in fair value from 20% adverse change	(3,865)		(2,918)
Prepayment Speed, Decrease in fair value from 30% adverse change	(5,805)		(4,475)
Discount Rate, Decrease in fair value from 10% adverse change	(2,082)		(2,345)
Discount Rate, Decrease in fair value from 20% adverse change	(4,027)		(4,532)
Discount Rate, Decrease in fair value from 30% adverse change	$ (5,849)		$ (6,575)

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2019 USD ($) segment	Jan. 01, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Right of use (ROU) assets	$ 18,861
Deferred rent liability	3,800	$ 3,800
Lease liabilities	$ 22,537
Number of operating leases \| segment	3
Cash paid for operating leases	$ 1,100
Total operating lease expense	$ 986,000
ASU 2016-02 \| Restatement adjustment
Lessee, Lease, Description [Line Items]
Right of use (ROU) assets		19,700
Deferred rent liability		3,800
Lease liabilities		$ 23,400

Leases - Balance sheet and quantitative information (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Lease Assets and Liabilities
Right of use (ROU) assets	$ 18,861
Balance sheet classification - ROU assets	us-gaap:OtherAssets
Lease liabilities	$ 22,537
Balance sheet classification - Operating lease liabilities	us-gaap:OtherLiabilities
Weighted average remaining lease term	5 years 5 months 23 days
Weighted average discount rate	4.80%

Leases - Maturities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases
Additional operating leases not yet commenced	$ 0
Additional finance leases not yet commenced	0
Operating lease liabilities:
Remainder of 2019	3,314
Year 2020	4,541
Year 2021	4,593
Year 2022	4,721
Year 2023	4,867
Year 2024	3,729
Total lease commitments	25,765
Less: imputed interest	(3,228)
Total operating lease liability	$ 22,537

Debt - Warehouse Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Warehouse Borrowings
Maximum Borrowing Capacity	$ 900,000
Balance Outstanding	404,763	$ 284,137
Repurchase agreement 1
Warehouse Borrowings
Maximum Borrowing Capacity	150,000
Balance Outstanding	31,753	84,897
Repurchase agreement 2
Warehouse Borrowings
Maximum Borrowing Capacity	50,000
Balance Outstanding	45,522	47,108
Repurchase agreement 3
Warehouse Borrowings
Maximum Borrowing Capacity	225,000
Balance Outstanding	167,408	35,920
Repurchase agreement 4
Warehouse Borrowings
Maximum Borrowing Capacity	200,000
Balance Outstanding	129,333	80,141
Repurchase agreement 5
Warehouse Borrowings
Maximum Borrowing Capacity	175,000
Balance Outstanding	20,003	23,370
Repurchase agreement 6
Warehouse Borrowings
Maximum Borrowing Capacity	100,000
Balance Outstanding	$ 10,744	$ 12,701

Debt - MSR Financings (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
Debt - MSR Financings (Details) - USD ($) $ in Thousands	Feb. 10, 2017	May 31, 2018	Mar. 31, 2019	Feb. 28, 2018
Long-term Debt
Maximum Borrowing Capacity			$ 900,000
Line of credit \| FHLMC and GNMA Financing \| IMC
Long-term Debt
Maximum Borrowing Capacity		$ 60,000		$ 50,000
Maximum borrowing capacity (in percentage)		60.00%
Amount outstanding			0
Line of credit \| FHLMC and GNMA Financing \| 1ML \| IMC
Long-term Debt
Interest margin over base rate (as a percent)		3.00%
Revolving credit facility \| FNMA Financing \| IMC
Long-term Debt
Maximum Borrowing Capacity	$ 40,000
Maximum borrowing capacity (in percentage)	55.00%
Agreement term	2 years
Amount outstanding			$ 0
Proceeds from Issuance of Secured Debt	$ 35,100
Origination fee	$ 100
Revolving credit facility \| FNMA Financing \| 1ML \| IMC
Long-term Debt
Interest margin over base rate (as a percent)	4.00%
Term Loan
Long-term Debt
Repayments of Debt	$ 30,100

Debt - Convertible Notes (Details) - 2015 Convertible Notes $ / shares in Units, $ in Thousands	1 Months Ended
	May 31, 2015 USD ($) D $ / shares
Convertible Notes
Amount of debt issued \| $	$ 25,000
Interest rate of debt (as a percent)	7.50%
Transaction costs \| $	$ 50
Conversion price (in dollars per share) \| $ / shares	$ 21.50
Conditional conversion price (in dollars per share) \| $ / shares	$ 30.10
Number of trading days for which stock price must exceed specified price \| D	20
Number of consecutive trading days during which stock price must exceed specified price \| D	30

Debt - Long-term Debt (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Trust Preferred Securities and Junior Subordinated Notes, Fair Value
Long-term debt	$ 44,561	$ 44,856
Trust Preferred Securities \| LIBOR
Long-term Debt
Applicable margin (as a percent)	3.75%
Junior Subordinated Notes
Trust Preferred Securities and Junior Subordinated Notes, Fair Value
Long-term debt	$ 62,000	62,000
Fair value adjustment	(17,439)	(17,144)
Total	$ 44,561	$ 44,856

Securitized Mortgage Trusts - Securitized Mortgage Trust Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Trust Assets
Total securitized mortgage trust assets	$ 3,067,911	$ 3,165,590
Mortgages secured by residential real estate
Trust Assets
Securitized mortgage collateral	3,054,720	3,157,071
REO inside trusts
Trust Assets
Real estate owned (REO)	$ 13,191	$ 8,519

Securitized Mortgage Trusts - Change in Fair Value of Net Trust Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Change in fair value of net trust assets, including trust REO losses
Change in fair value of net trust assets, excluding REO	$ (6,156)	$ (4,331)
(Losses) gains from REO	3,473	2,193
Change in fair value of net trust assets, including trust REO gains (losses)	$ (2,683)	$ (2,138)

Fair Value of Financial Instruments - Fair value of Financial Instruments Included in the Consolidated Financial Statements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Mortgage servicing rights	$ 59,823	$ 64,728	$ 154,405
Carrying Amount
Assets
Cash and cash equivalents.	22,995	23,200
Restricted cash	6,865	6,989
Mortgage loans held for-for-sale	460,773	353,601
Mortgage servicing rights	59,823	64,728
Derivatives assets, lending, net	3,164	3,351
Mortgage-backed securities	6,368	1,000
Securitized mortgage collateral	3,054,720	3,157,071
Liabilities
Warehouse borrowings	404,763	284,137
Convertible notes	24,987	24,985
Long-term debt	44,561	44,856
Securitized mortgage borrowings	3,051,736	3,148,215
Derivative liabilities, lending, net	1,105	683
Estimated Fair Value \| Level 1
Assets
Cash and cash equivalents.	22,995	23,200
Restricted cash	6,865	6,989
Estimated Fair Value \| Level 2
Assets
Mortgage loans held for-for-sale	460,773	353,601
Mortgage-backed securities	6,368	1,000
Liabilities
Warehouse borrowings	404,763	284,137
Derivative liabilities, lending, net	1,105	683
Estimated Fair Value \| Level 3
Assets
Mortgage servicing rights	59,823	64,728
Derivatives assets, lending, net	3,164	3,351
Securitized mortgage collateral	3,054,720	3,157,071
Liabilities
Convertible notes	24,987	24,985
Long-term debt	44,561	44,856
Securitized mortgage borrowings	$ 3,051,736	$ 3,148,215

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Mortgage servicing rights	$ 59,823	$ 64,728	$ 154,405
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	87.00%	90.00%
Percentage of level three liabilities to total liabilities measured at fair value	99.00%	99.00%
Recurring basis \| Level 2
Assets
Mortgage-backed securities	$ 6,368	$ 1,000
Mortgage loans held for-for-sale	460,773	353,601
Total assets at fair value	467,141	354,601
Liabilities
Derivative liabilities, lending, net	1,105	683
Total liabilities at fair value	1,105	683
Recurring basis \| Level 3
Assets
Derivatives assets, lending, net	3,164	3,351
Mortgage servicing rights	59,823	64,728
Securitized mortgage collateral	3,054,720	3,157,071
Total assets at fair value	3,117,707	3,225,150
Liabilities
Securitized mortgage borrowings	3,051,736	3,148,215
Long-term debt	44,561	44,856
Total liabilities at fair value	3,096,297	3,193,071
Recurring basis \| Derivative assets, lending, net \| Interest rate lock commitments. net (IRLCs) \| Level 3
Assets
Total assets at fair value	$ 3,200	$ 3,400

Fair Value of Financial Instruments - Reconciliation of All Assets and Liabilities Measured Using Level 3 Input (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Level 3
Purchases, issuances and settlements
Net interest income including cash received and paid	$ 2,000	$ 2,200
Securitized mortgage borrowings
Purchases, issuances and settlements
Unrealized gains (losses) still held	2,539,845	2,694,742
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(3,148,215)	(3,653,265)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(40,793)	8,344
Purchases, issuances and settlements
Settlements	137,272	136,444
Fair value at the end of the period	(3,051,736)	(3,508,477)
Securitized mortgage borrowings \| Interest expense
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(13,553)	(20,080)
Securitized mortgage borrowings \| Change in fair value
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(27,240)	28,424
Long-term debt
Purchases, issuances and settlements
Unrealized gains (losses) still held	17,439	16,663
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(44,856)	(44,982)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	295	(355)
Purchases, issuances and settlements
Fair value at the end of the period	(44,561)	(45,337)
Long-term debt \| Interest expense
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(114)	(139)
Long-term debt \| Change in fair value
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	265	1,224
Long-term debt \| Change in instrument specific credit risk
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	144	(1,440)
Contingent consideration
Changes in fair value of liabilities during the period
Fair value in the beginning of the period		(554)
Purchases, issuances and settlements
Settlements		554
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	3,157,071	3,662,008
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	27,339	(27,067)
Purchases, issuances and settlements
Settlements	(129,690)	(121,040)
Fair value at the end of the period	3,054,720	3,513,901
Unrealized gains (losses) still held	(331,987)	(533,589)
Securitized mortgage collateral \| Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	6,255	5,688
Securitized mortgage collateral \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	21,084	(32,755)
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	64,728	154,405
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(6,488)	9,180
Purchases, issuances and settlements
Issuances	1,583	10,482
Fair value at the end of the period	59,823	174,067
Unrealized gains (losses) still held	59,823	174,067
Mortgage servicing rights \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(6,488)	9,180
Interest rate lock commitments. net (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	3,351	4,357
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(187)	(503)
Purchases, issuances and settlements
Fair value at the end of the period	3,164	3,854
Unrealized gains (losses) still held	3,164	3,854
Interest rate lock commitments. net (IRLCs) \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	$ (187)	$ (503)

Fair Value of Financial Instruments - Valuation Techniques And Unobservable Inputs Applied (Details) - Level 3	Mar. 31, 2019 USD ($)
Securitized mortgage borrowings \| DCF
Valuation techniques
Estimated fair value of liabilities	$ (3,051,736,000)
Securitized mortgage borrowings \| Measurement Input, Default Rate \| DCF \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	0.02
Securitized mortgage borrowings \| Measurement Input, Default Rate \| DCF \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	6.5
Securitized mortgage borrowings \| Measurement Input, Default Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	1.1
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| DCF \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	3.1
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| DCF \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	81.9
Securitized mortgage borrowings \| Measurement Input, Loss Severity \| DCF \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	46.1
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| DCF \| Minimum
Unobservable input
Measurement input, securitized mortgage borrowings	3.3
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| DCF \| Maximum
Unobservable input
Measurement input, securitized mortgage borrowings	25.0
Securitized mortgage borrowings \| Measurement Input, Discount Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, securitized mortgage borrowings	4.5
Long-term debt \| DCF
Valuation techniques
Estimated fair value of liabilities	$ (44,561,000)
Long-term debt \| Measurement Input, Discount Rate \| DCF
Unobservable input
Measurement input, long-term debt	9.8
Long-term debt \| Measurement Input, Discount Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, long-term debt	9.8
Securitized mortgage collateral \| DCF
Valuation techniques
Estimated fair value of assets	$ 3,054,720,000
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| DCF \| Minimum
Unobservable input
Measurement input, securitized mortgage collateral	2.7
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| DCF \| Maximum
Unobservable input
Measurement input, securitized mortgage collateral	19.9
Securitized mortgage collateral \| Measurement Input, Prepayment Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, securitized mortgage collateral	6.9
Mortgage servicing rights \| DCF
Valuation techniques
Estimated fair value of assets	$ 59,823,000
Mortgage servicing rights \| Measurement Input, Prepayment Rate \| DCF \| Minimum
Unobservable input
Measurement input, mortgage servicing rights	7.7
Mortgage servicing rights \| Measurement Input, Prepayment Rate \| DCF \| Maximum
Unobservable input
Measurement input, mortgage servicing rights	84.4
Mortgage servicing rights \| Measurement Input, Prepayment Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	12.5
Mortgage servicing rights \| Measurement Input, Discount Rate \| DCF \| Minimum
Unobservable input
Measurement input, mortgage servicing rights	9.0
Mortgage servicing rights \| Measurement Input, Discount Rate \| DCF \| Maximum
Unobservable input
Measurement input, mortgage servicing rights	14.0
Mortgage servicing rights \| Measurement Input, Discount Rate \| DCF \| Weighted Average
Unobservable input
Measurement input, mortgage servicing rights	9.2
Interest rate lock commitments. net (IRLCs) \| Market pricing
Valuation techniques
Estimated fair value of assets	$ 3,164,000
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Minimum
Unobservable input
Measurement input, derivative assets - IRLCs, net	7.5
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Maximum
Unobservable input
Measurement input, derivative assets - IRLCs, net	99.9
Interest rate lock commitments. net (IRLCs) \| Measurement Input, Pull-through Rate \| Market pricing \| Weighted Average
Unobservable input
Measurement input, derivative assets - IRLCs, net	71.2

Fair Value of Financial Instruments - Changes in Recurring Fair Value Measurements Included in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of net trust assets, excluding REO	$ (6,156)	$ (4,331)
Securitized mortgage collateral
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	7,909		$ 4,440
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	6,235,241		6,218,134
Forward delivery loan commitment
Derivative assets and liabilities
Derivative Liability, Notional Amount	74,821		150,000
Derivative liabilities, net, securitized trusts \| TBA's
Derivative assets and liabilities
Derivative Liability, Notional Amount	178,314		88,018
Derivative, Gain (Loss) on Derivative, Net	(1,476)	10,448
Derivative assets - IRLCs \| Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities
Derivative Liability, Notional Amount	214,872		183,595
Derivative, Gain (Loss) on Derivative, Net	(187)	(503)
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Total	(16,931)	(15,164)
Recurring basis \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Total	6,255	5,688
Recurring basis \| Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(13,667)	(20,219)
Recurring basis \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	(6,156)	(4,331)
Recurring basis \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total	265	1,224
Recurring basis \| Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Total	(6,488)	9,465
Recurring basis \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	2,860	(6,991)
Recurring basis \| Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(40,793)	8,344
Recurring basis \| Securitized mortgage borrowings \| Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(13,553)	(20,080)
Recurring basis \| Securitized mortgage borrowings \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(27,240)	28,424
Recurring basis \| Derivative liabilities, net, securitized trusts \| Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(422)	(1,312)
Recurring basis \| Derivative liabilities, net, securitized trusts \| Hedging Instruments \| Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		285
Recurring basis \| Derivative liabilities, net, securitized trusts \| Hedging Instruments \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(422)	(1,597)
Recurring basis \| Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	151	1,085
Recurring basis \| Long-term debt \| Interest expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(114)	(139)
Recurring basis \| Long-term debt \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	265	1,224
Recurring basis \| Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	27,339	(27,067)
Recurring basis \| Securitized mortgage collateral \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,255	5,688
Recurring basis \| Securitized mortgage collateral \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	21,084	(32,755)
Recurring basis \| Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(6,488)	9,180
Recurring basis \| Mortgage servicing rights \| Other revenue and expense
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(6,488)	9,180
Recurring basis \| Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	3,469	(4,891)
Recurring basis \| Mortgage loans held-for-sale \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	3,469	(4,891)
Recurring basis \| Derivative assets - IRLCs \| Derivative liabilities, net, securitized trusts
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(187)	(503)
Recurring basis \| Derivative assets - IRLCs \| Derivative liabilities, net, securitized trusts \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(187)	$ (503)
Recurring basis \| Level 3
Long-term debt
Estimated fair value of long-term debt	44,561		$ 44,856
Recurring basis \| Level 3 \| Long-term debt
Long-term debt
Long-term debt unpaid principal balance	62,000
Estimated fair value of long-term debt	44,600
Difference between aggregate unpaid principal balances and fair value of long-term debt	17,400
Recurring basis \| Level 3 \| Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	3,400,000
Estimated fair value of securitized mortgage collateral	3,100,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	300,000
Unpaid principal balance of loans 90 days or more past due	400,000
Estimated fair value of loans 90 days or more past due	200,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	200,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	3,400,000
Estimated fair value of securitized mortgage borrowings	3,100,000
Bond losses	2,200,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 300,000

Fair Value of Financial Instruments - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Fair Value Measurements
Retained earnings	$ (1,161,654)		$ (1,149,042)
Nonrecurring Fair Value Measurements
Total Losses
REO	3,473	$ 2,193
Nonrecurring Fair Value Measurements \| Level 2
Fair Value Measurements
REO	$ 3,562	$ 1,307

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income taxes
Income tax expense (benefit)	$ 86	$ 610
Federal
Income taxes
Net operating loss carryforwards			$ 564,600
State
Income taxes
Net operating loss carryforwards			$ 386,000

Reconciliation of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator for basic loss per share:
Net loss	$ (12,612)	$ 3,873
Numerator for diluted loss per share:
Net loss	(12,612)	3,873
Net loss plus interest expense attributable to convertible notes	$ (12,612)	$ 3,873
Denominator for basic loss per share:
Basic weighted average common shares outstanding during the period	21,159	20,951
Denominator for diluted loss per share:
Basic weighted average common shares outstanding during the period	21,159	20,951
Net effect of dilutive stock options and DSU's		151
Diluted weighted average common shares	21,159	21,102
Basic (in dollars per share)	$ (0.60)	$ 0.18
Diluted (in dollars per share)	$ (0.60)	$ 0.18
Antidilutive stock options excluded from weighted average share calculations (in shares)	1,200	1,200
Convertible Debt Notes
Denominator for diluted loss per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)	1,200

Segment Reporting - Statement of Operations Items (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) item	Mar. 31, 2018 USD ($)
Segment Reporting
Number of reportable segments \| item	3
Gain on sale of loans, net	$ 12,214	$ 21,482
Real estate services fees, net	806	1,385
Servicing fees, net	2,969	9,463
(Loss) gain on mortgage servicing rights, net	(5,623)	7,705
Other revenue		90
Other operating expense	(22,270)	(35,748)
Other income (expense)	(622)	106
(Loss) earnings before income taxes	(12,526)	4,483
Income tax expense	86	610
Net (loss) earnings	(12,612)	3,873
Corporate and other
Segment Reporting
Other revenue	32	6
Other operating expense	(4,245)	(3,497)
Other income (expense)	(457)	(424)
(Loss) earnings before income taxes	(4,670)	(3,915)
Mortgage Lending \| Operating segments
Segment Reporting
Gain on sale of loans, net	12,214	21,482
Servicing fees, net	2,969	9,463
(Loss) gain on mortgage servicing rights, net	(5,623)	7,705
Other operating expense	(17,500)	(31,548)
Other income (expense)	1,415	334
(Loss) earnings before income taxes	(6,525)	7,436
Real Estate Services \| Operating segments
Segment Reporting
Real estate services fees, net	806	1,385
Other operating expense	(387)	(638)
(Loss) earnings before income taxes	419	747
Long-term Portfolio \| Operating segments
Segment Reporting
Other revenue	(32)	84
Other operating expense	(138)	(65)
Other income (expense)	(1,580)	196
(Loss) earnings before income taxes	$ (1,750)	$ 215

Segment Reporting - Balance Sheet Items (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Segment Reporting
Total assets	$ 3,673,731	$ 3,647,943
Operating segments
Segment Reporting
Total assets	25,079	6,414
Mortgage Lending \| Operating segments
Segment Reporting
Total assets	580,569	475,734
Real Estate Services \| Operating segments
Segment Reporting
Total assets	104	126
Long-term Portfolio \| Operating segments
Segment Reporting
Total assets	$ 3,067,979	$ 3,165,669

Commitments and Contingencies - Legal Proceedings (Details) $ in Millions		3 Months Ended	12 Months Ended
	Jul. 16, 2018 USD ($) item	Mar. 31, 2019	Dec. 31, 2018	Dec. 07, 2011 item director
Series B 9.375% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)		9.375%	9.375%
Series C 9.125% redeemable preferred stock
Repurchase reserve
Preferred stock, dividend rate (as a percent)		9.125%	9.125%
Curtis J. Timm
Repurchase reserve
Number of directors elected by Preferred holders \| director				2
Number of days within which special election for election of directors to be held	60 days
Number of quarterly dividend payments sought for Preferred holders				2
Number of quarterly dividends payments granted under judgement for Preferred holders	3
Dividend amount required to be paid by company in three quarterly payment \| $	$ 1.2
Preferred B stock approval percentage	67.00%

Commitments and Contingencies - Repurchase Reserve Activity (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Continuing operations repurchase reserve activity
Beginning balance	$ 7,657	$ 6,020
Provision for repurchases	1,630	5,074
Settlements	(321)	(3,437)
Total repurchase reserve	$ 8,966	$ 7,657

Equity and Share Based Payments - Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 16, 2018	Mar. 31, 2019	Dec. 31, 2018
Series B and C Preferred Stock
Equity and Share Based Payments
Outstanding liquidation preference		$ 66,600
Liquidation preference amount per share (in dollars per share)		$ 25.00
Series B 9.375% redeemable preferred stock
Equity and Share Based Payments
Outstanding liquidation preference		$ 31,460	$ 31,460
Series C 9.125% redeemable preferred stock
Equity and Share Based Payments
Outstanding liquidation preference		$ 35,127	$ 35,127
Curtis J. Timm \| Series B 9.375% redeemable preferred stock
Equity and Share Based Payments
Liquidation preference amount per share (in dollars per share)	$ 47.27
Cumulative undeclared dividends in arrears	$ 14,800
Cumulative undeclared dividends in arrears (per share)	$ 22.27
Cumulative undeclared dividends in arrears, increase in every quarter (per share)	$ 0.5859
Amount of increase in cumulative undeclared dividends in arrears in each quarter	$ 390

Equity and Share Based Payments - Stock Options (Details) - Stock options $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Number of Shares
Options outstanding at beginning of period (in shares) \| shares	1,001,469
Options granted (in shares) \| shares	562,500
Options exercised (in shares) \| shares	(64,351)
Options forfeited / cancelled (in shares) \| shares	(293,217)
Options outstanding at end of year (in shares) \| shares	1,206,401
Options exercisable at end of year (in shares) \| shares	469,164
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share) \| $ / shares	$ 13.16
Options granted (in dollars per share) \| $ / shares	3.69
Options exercised (in dollars per share) \| $ / shares	2.52
Options forfeited / cancelled (in dollars per share) \| $ / shares	14.47
Options outstanding at end of year (in dollars per share) \| $ / shares	8.99
Options exercisable at end of year (in dollars per share) \| $ / shares	$ 14.07
Additional disclosure related to options
Unrecognized compensation cost \| $	$ 1.5
Weighted-average period over which compensation cost is expected to be recognized	2 years 4 months 24 days

Equity and Share Based Payments - Deferred Stock Units (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Restricted stock units
Number of Shares
Granted (in shares) \| shares	75,000
Outstanding at end of year (in shares) \| shares	75,000
Weighted-Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 3.75
Outstanding at end of year (in dollars per share) \| $ / shares	$ 3.75
Additional information regarding DSUs
Unrecognized compensation cost \| $	$ 273
Weighted-average period over which compensation cost is expected to be recognized	2 years 10 months 24 days
Deferred stock units
Number of Shares
Outstanding at beginning of year (in shares) \| shares	24,500
Granted (in shares) \| shares	30,000
Outstanding at end of year (in shares) \| shares	54,500
Weighted-Average Grant Date Fair Value
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 10.11
Granted (in dollars per share) \| $ / shares	3.75
Outstanding at end of year (in dollars per share) \| $ / shares	$ 6.61
Additional information regarding DSUs
Unrecognized compensation cost \| $	$ 141
Weighted-average period over which compensation cost is expected to be recognized	2 years 7 months 6 days

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events
Subsequent Events	Note 13.—Subsequent Events Subsequent events have been evaluated through the date of this filing.

Securitized Mortgage Trusts - Securitized Mortgage Trust Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Securitized Mortgage Trust Liabilities
Securitized mortgage borrowings	$ 3,051,736	$ 3,148,215