Loans Held for Sale |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | Loans Held for Sale Loans held for sale consisted of the following:
Commercial Loans During the first half of 2026, we sold portfolios of commercial mortgage loans to third-party sponsored asset-backed financing entities with an aggregate carrying value of $1.1 billion at the time of sale and recognized immaterial losses on sale. The majority of these loans were previously transferred to held for sale in 2025, and an additional $0.2 billion was transferred to held for sale in the second quarter of 2026. In connection with these sales, we provided senior secured loans to the buyers for portions of the purchase prices. See Note 14, "Variable Interest Entities," for additional information. Commercial loans held for sale also include certain other loans that we no longer intend to hold for investment and were transferred to held for sale. These loans totaled $86 million and $45 million at June 30, 2026 and December 31, 2025, respectively. During the three and six months ended June 30, 2026 and 2025, lower of amortized cost or fair value adjustments on commercial loans held for sale were immaterial. Also included in commercial loans held for sale are certain loans that we have elected to designate under the fair value option ("FVO"). These comprise loans originated through our participation in certain syndicated credit facilities that we intend to sell to unaffiliated third parties and loans purchased in the secondary market that are held as hedges against our exposure to certain total return swaps or that we intend to sell. The fair value of these loans totaled $795 million and $626 million at June 30, 2026 and December 31, 2025, respectively. See Note 8, "Fair Value Option," for additional information. Valuation Allowances Excluding the loans designated under FVO discussed above, loans held for sale are recorded at the lower of amortized cost or fair value, with adjustments to fair value being recorded as a valuation allowance through other revenues. The valuation allowance on loans held for sale was immaterial at June 30, 2026 and December 31, 2025.
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