Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 71

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 for credit losses (net of recoveries).In April 2024, we exercised our right to foreclose on a group of properties in Houston, Texas, that were the underlying collateral for a bridge loan with a UPB of $100.3 million. We simultaneously sold the properties for $101.3 million to a newly formed entity, which was initially capitalized with $15.0 million of equity and a new $95.3 million bridge loan that we provided at SOFR plus 3.00%. At September 30, 2025, total equity invested was $21.2 million and is made up of $9.4 million from AWC Real Estate Opportunity Partners I LP ("AWC”), a fund in which we have a 46% noncontrolling limited partnership interest (see Note 8 for details) and $11.8 million from multiple independent ownership groups. AWC and one of the other equity members are the co-managing members of the entity that owns the real estate. We did not record a loss on the original bridge loan and received all past due interest owed.See Note 9 for additional loan resolution details.Interest ReservesGiven the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve as required by the contracts to cover debt service costs. At September 30, 2025 and December 31, 2024, we had total interest reserves of $254.5 million and $215.4 million, respectively, on 453 loans and 589 loans, respectively, with a total UPB of $8.18 billion and $8.65 billion, respectively.

Note 4 — Loans Held-for-Sale

Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our non-GSE loans are generally expected to be sold to third parties or securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following (in thousands):September 30, 2025December 31, 2024Fannie Mae$156,042 $171,235 Freddie Mac82,105 159,201 Private Label77,832 38,962 SFR - Fixed Rate2,777 3,246 FHA— 65,589 318,756 438,233 Fair value of future MSR3,329 5,138 Unrealized impairment recovery (loss)1,444 (