As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control.

Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets.

In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold. There were no such redemptions during the three months ended March 31, 2026 and 2025.

The following summarizes the face amount and proceeds of commercial loans securitized for the three months ended March 31, 2026 and 2025 (amounts in thousands):


	Commercial Loans
	Face Amount		Proceeds
For the Three Months Ended March 31,
2026	$	141,658	$	147,110
2025	268,016		278,731

The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option.

Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party.

Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization.

During the three months ended March 31, 2026 and 2025, there were no sales of commercial or residential loans within the Commercial and Residential Lending Segment.

During the three months ended March 31, 2026, the Investing and Servicing Segment sold loans outside of securitizations with a face amount of $34.4 million for proceeds of $35.0 million. During the three months ended March 31, 2025, the Investing and Servicing Segment sold loans outside of securitization with a face amount of $18.0 million for proceeds of $18.6 million. The sale of these loans does not result in a discrete gain or loss since they are carried under the fair value option.

During the three months ended March 31, 2026 and 2025, there were no sales of loans by the Infrastructure Lending Segment.