MFA Financial (MFA) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017
Document and Entity Information
Entity Registrant Name	MFA FINANCIAL, INC.
Entity Central Index Key	1,055,160
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		372,840,969
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities		$ 9,460,859	$ 9,969,163
Securities obtained and pledged as collateral, at fair value		371,333	510,767
Residential whole loans, at carrying value ($418,372 and $427,880 pledged as collateral, respectively)		573,715	590,540
Residential whole loans, at fair value ($745,044 and $734,331 pledged as collateral, respectively)		775,152	814,682
Cash and cash equivalents		421,572	260,112
Restricted cash		10,980	58,463
Other assets		286,495	280,295
Total Assets		11,900,106	12,484,022
Liabilities:
Repurchase agreements and other advances		8,137,102	8,687,268
Obligation to return securities obtained as collateral, at fair value		510,733	510,767
8% Senior Notes due 2042 (“Senior Notes”)		96,743	96,733
Other liabilities		99,581	155,352
Total Liabilities		8,844,159	9,450,120
Commitments and contingencies (See Note 11)
Stockholders’ Equity:
Preferred stock, $.01 par value; 7.50% Series B cumulative redeemable; 8,050 shares authorized; 8,000 shares issued and outstanding ($200,000 aggregate liquidation preference)		80	80
Common stock, $.01 par value; 886,950 shares authorized; 372,819 and 371,854 shares issued and outstanding, respectively		3,728	3,719
Additional paid-in capital, in excess of par		3,030,603	3,029,062
Accumulated deficit		(573,127)	(572,641)
Accumulated other comprehensive income		594,663	573,682
Total Stockholders’ Equity		3,055,947	3,033,902
Total Liabilities and Stockholders’ Equity		11,900,106	12,484,022
Non-Agency MBS Transferred to Consolidated VIEs
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities	[1]	0	174,404
Agency MBS
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities		3,494,614	3,738,497
Non-Agency MBS
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities		5,468,178	5,825,816
Non-Agency MBS | Non-Agency MBS
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities		5,468,178	5,651,412
CRT securities
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Mortgage-backed securities and credit risk transfer securities		$ 498,067	$ 404,850
[1]	Non-Agency MBS transferred to consolidated VIEs at December 31, 2016 represented assets of the consolidated VIEs that can be used only to settle the obligations of each respective VIE.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Residential whole loans, at carrying value, pledged as collateral (in dollars)	$ 418,372,000	$ 427,880,000
Residential whole loans, at fair value, pledged as collateral (in dollars)	$ 745,044,000	$ 734,331,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	8,050,000	8,050,000
Preferred stock, dividend rate	7.50%	7.50%
Preferred stock, shares issued	8,000,000	8,000,000
Preferred stock, shares outstanding	8,000,000	8,000,000
Preferred stock, aggregate liquidation preference (in dollars)	$ 200,000,000	$ 200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	886,950,000	886,950,000
Common stock, shares issued	372,819,000	371,854,000
Common stock, shares outstanding	372,819,000	371,854,000
Senior Notes
Stated interest rate	8.00%	8.00%
Agency MBS
Securities, at fair value, pledged as collateral	$ 3,361,376,000	$ 3,540,401,000
Non-Agency MBS
Securities, at fair value, pledged as collateral	4,446,745,000	4,978,199,000
CRT securities
Securities, at fair value, pledged as collateral	$ 446,231,000	$ 357,488,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest Income:
Residential whole loans held at carrying value	$ 8,690	$ 4,436
Other interest-earning investments	1,699	0
Cash and cash equivalent investments	355	140
Interest Income	117,257	117,417
Interest Expense:
Repurchase agreements and other advances	48,339	45,395
Senior Notes and other interest expense	2,010	2,205
Interest Expense	50,349	47,600
Net Interest Income	66,908	69,817
Other-Than-Temporary Impairments:
Total other-than-temporary impairment losses	(63)	0
Portion of loss reclassed from other comprehensive income	(351)	0
Net Impairment Losses Recognized in Earnings	(414)	0
Other Income, net:
Net gain on residential whole loans held at fair value	13,773	12,348
Net gain on sales of MBS and U.S. Treasury securities	9,708	9,745
Other, net	4,512	619
Other Income, net	27,993	22,712
Operating and Other Expense:
Compensation and benefits	7,793	7,407
Other general and administrative expense	4,225	3,918
Loan servicing and other related operating expenses	4,409	3,134
Operating and Other Expense	16,427	14,459
Net Income	78,060	78,070
Less Preferred Stock Dividends	3,750	3,750
Net Income Available to Common Stock and Participating Securities	$ 74,310	$ 74,320
Earnings per Common Share - Basic and Diluted (in dollars per share)	$ 0.20	$ 0.20
Dividends Declared per Share of Common Stock (in dollars per share)	$ 0.20	$ 0.20
Agency MBS
Interest Income:
Securities	$ 17,894	$ 23,997
Non-Agency MBS | Non-Agency MBS
Interest Income:
Securities	80,163	80,305
Non-Agency MBS | Non-Agency MBS Transferred to Consolidated VIEs
Interest Income:
Securities	2,080	5,847
CRT securities
Interest Income:
Securities	$ 6,376	$ 2,692

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 78,060	$ 78,070
Other Comprehensive Income/(Loss):
Reclassification adjustment for MBS sales included in net income	(9,971)	(10,485)
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net	414	0
Derivative hedging instrument fair value changes, net	11,897	(49,342)
Other Comprehensive Income/(Loss)	20,981	(105,441)
Comprehensive income/(loss) before preferred stock dividends	99,041	(27,371)
Dividends declared on preferred stock	(3,750)	(3,750)
Comprehensive Income/(Loss) Available to Common Stock and Participating Securities	95,291	(31,121)
Agency MBS
Other Comprehensive Income/(Loss):
Unrealized (loss)/gain, net	(8,052)	13,226
Non-Agency MBS
Other Comprehensive Income/(Loss):
Unrealized (loss)/gain, net	$ 27,521	$ (58,840)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Preferred StockPreferred Stock 7.50% Series B Cumulative Redeemable - Liquidation Preference $25.00 per Share	Common Stock		Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Balance (in shares) at Dec. 31, 2015			8,000,000	370,584,000
Balance at Dec. 31, 2015		$ 2,967,261	$ 80	$ 3,706		$ 3,019,956	$ (572,332)	$ 515,851
Increase (Decrease) in Stockholders' Equity
Net income		78,070					78,070
Issuance of common stock, net of expenses (in shares)	[1]			589,000
Issuance of common stock, net of expenses	[1]	306		$ 4		302
Repurchase of shares of common stock (in shares)	[1]			(196,000)
Repurchase of shares of common stock	[1]	(1,324)				(1,324)
Equity based compensation expense		1,130				1,130
Accrued dividends attributable to stock-based awards		(173)				(173)
Dividends declared on common stock		(74,215)					(74,215)
Dividends declared on preferred stock		(3,750)					(3,750)
Dividends attributable to dividend equivalents		(218)					(218)
Change in unrealized gains on MBS, net		(56,099)						(56,099)
Derivative hedging instrument fair value changes, net		(49,342)						(49,342)
Balance (in shares) at Mar. 31, 2016			8,000,000	370,977,000
Balance at Mar. 31, 2016		2,861,646	$ 80	$ 3,710		3,019,891	(572,445)	410,410
Increase (Decrease) in Stockholders' Equity
Adjustments related to tax withholding for share-based compensation				$ 1,300
Shares paid for tax withholding for share based compensation (in shares)				196,333
Balance (in shares) at Dec. 31, 2016			8,000,000	371,854,000
Balance at Dec. 31, 2016		3,033,902	$ 80	$ 3,719		3,029,062	(572,641)	573,682
Increase (Decrease) in Stockholders' Equity
Net income		78,060					78,060
Issuance of common stock, net of expenses (in shares)	[1]			1,457,000
Issuance of common stock, net of expenses	[1]	$ 3,956		$ 9		3,947
Repurchase of shares of common stock (in shares)		0		(492,000)	[1]
Repurchase of shares of common stock	[1]	$ (3,859)				(3,859)
Equity based compensation expense		1,024				1,024
Accrued dividends attributable to stock-based awards		429				429
Dividends declared on common stock		(74,569)					(74,569)
Dividends declared on preferred stock		(3,750)					(3,750)
Dividends attributable to dividend equivalents		(227)					(227)
Change in unrealized gains on MBS, net		9,084						9,084
Derivative hedging instrument fair value changes, net		11,897						11,897
Balance (in shares) at Mar. 31, 2017			8,000,000	372,819,000
Balance at Mar. 31, 2017		$ 3,055,947	$ 80	$ 3,728		$ 3,030,603	$ (573,127)	$ 594,663
Increase (Decrease) in Stockholders' Equity
Adjustments related to tax withholding for share-based compensation				$ 3,900
Shares paid for tax withholding for share based compensation (in shares)				492,447
[1]	For the three months ended March 31, 2017 and 2016, includes approximately $3.9 million (492,447 shares) and $1.3 million (196,333 shares), respectively surrendered for tax purposes related to equity-based compensation awards.

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Apr. 15, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Preferred Stock, dividend rate		7.50%		7.50%
Preferred Stock | Preferred Stock 7.50% Series B Cumulative Redeemable - Liquidation Preference $25.00 per Share
Preferred Stock, dividend rate	7.50%	7.50%	7.50%
Preferred Stock, liquidation preference per share (in dollars per share)	$ 25	$ 25	$ 25

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities:
Net income	$ 78,060	$ 78,070
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of MBS and U.S. Treasury securities	(9,708)	(9,745)
Gain on sales of real estate owned	(875)	(509)
Other-than-temporary impairment charges	414	0
Accretion of purchase discounts on MBS and CRT securities and residential whole loans	(23,682)	(22,083)
Amortization of purchase premiums on MBS and CRT securities	8,029	8,143
Depreciation and amortization on real estate, fixed assets and other assets	210	272
Equity-based compensation expense	1,106	1,134
Unrealized gain on residential whole loans at fair value	(2,948)	(6,226)
Decrease/(increase) in other assets	5,241	(6,259)
Decrease in other liabilities	(12,392)	(3,798)
Net cash provided by operating activities	43,455	38,999
Cash Flows From Investing Activities:
Principal payments on MBS and CRT securities and other investments	762,747	807,349
Proceeds from sales of MBS and U.S. Treasury securities	160,697	32,034
Purchases of MBS and CRT securities and other investments	(244,582)	(375,404)
Purchases of residential whole loans and capitalized advances	(5,027)	(165,510)
Principal payments on residential whole loans	35,453	21,666
Proceeds from sales of real estate owned	10,438	6,157
Redemption of Federal Home Loan Bank stock	10,422	10,475
Additions to leasehold improvements, furniture and fixtures	(133)	(56)
Net cash provided by investing activities	730,015	336,711
Cash Flows From Financing Activities:
Principal payments on repurchase agreements and other advances	(20,513,712)	(19,776,510)
Proceeds from borrowings under repurchase agreements and other advances	19,963,451	19,532,131
Principal payments on securitized debt	0	(10,133)
Payments made for margin calls on repurchase agreements and interest rate swap agreements (“Swaps”)	(24,846)	(117,800)
Proceeds from reverse margin calls on repurchase agreements and Swaps	37,517	55,700
Proceeds from issuances of common stock	3,952	306
Dividends paid on preferred stock	(3,750)	(3,750)
Dividends paid on common stock and dividend equivalents	(74,622)	(74,425)
Net cash used in financing activities	(612,010)	(394,481)
Net increase/(decrease) in cash and cash equivalents	161,460	(18,771)
Cash and cash equivalents at beginning of period	260,112	165,007
Cash and cash equivalents at end of period	421,572	146,236
Non-cash Investing and Financing Activities:
Net increase/(decrease) in securities obtained as collateral/obligation to return securities obtained as collateral	4,155	(5,175)
Transfer from residential whole loans to real estate owned	31,098	22,280
Dividends and dividend equivalents declared and unpaid	$ 74,830	$ 74,583

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization MFA Financial, Inc. (the “Company”) was incorporated in Maryland on July 24, 1997 and began operations on April 10, 1998. The Company has elected to be treated as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. In order to maintain its qualification as a REIT, the Company must comply with a number of requirements under federal tax law, including that it must distribute at least 90% of its annual REIT taxable income to its stockholders. The Company has elected to treat certain of its subsidiaries as a taxable REIT subsidiary (“TRS”). In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate related business. (See Notes 2 ( o ) and 12 )

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies ( a ) Basis of Presentation and Consolidation The interim unaudited consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted according to these SEC rules and regulations. Management believes that the disclosures included in these interim unaudited consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2017 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2017 should not be construed as indicative of the results to be expected for the full year. The accompanying consolidated financial statements of the Company have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could differ from those estimates, which could materially impact the Company’s results of operations and its financial condition. Management has made significant estimates in several areas, including other-than-temporary impairment (“OTTI”) on MBS (See Note 3 ), valuation of MBS and CRT securities (See Notes 3 and 15 ), income recognition and valuation of residential whole loans (See Notes 4 and 15 ), valuation of derivative instruments (See Notes 5 ( c ) and 15 ) and income recognition on certain Non-Agency MBS (defined below) purchased at a discount. (See Note 3 ) In addition, estimates are used in the determination of taxable income used in the assessment of REIT compliance and contingent liabilities for related taxes, penalties and interest. (See Note 2 ( o )) Actual results could differ from those estimates. The Company has one reportable segment as it manages its business and analyzes and reports its results of operations on the basis of one operating segment; investing, on a leveraged basis, in residential mortgage assets. The consolidated financial statements of the Company include the accounts of all subsidiaries; all intercompany accounts and transactions have been eliminated. In addition, the Company consolidates certain trusts established related to the acquisition of residential whole loans. Certain prior period amounts have been reclassified to conform to the current period presentation. ( b ) MBS (including Non-Agency MBS transferred to consolidated VIEs) and CRT Securities The Company has investments in residential MBS that are issued or guaranteed as to principal and/or interest by a federally chartered corporation, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. Government, such as the Government National Mortgage Association (“Ginnie Mae”) (collectively, “Agency MBS”), and residential MBS that are not guaranteed by any agency of the U.S. Government or any federally chartered corporation (“Non-Agency MBS”). In addition, the Company has investments in CRT securities that are issued by Fannie Mae and Freddie Mac. The coupon payments on CRT securities are paid by Fannie Mae and Freddie Mac and the principal payments received are based on the performance of loans in a reference pool of previously securitized MBS. As the loans in the underlying reference pool are paid, the principal balance of the CRT securities is paid. As an investor in a CRT security, the Company may incur a loss if certain defined credit events occur, including, for certain CRT securities, if the loans in the reference pool experience delinquencies exceeding specified thresholds. Designation The Company generally intends to hold its MBS until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, all of the Company’s MBS are designated as “available-for-sale” (“AFS”) and, accordingly, are carried at their fair value with unrealized gains and losses excluded from earnings (except when an OTTI is recognized, as discussed below) and reported in Accumulated other comprehensive income/(loss) (“AOCI”), a component of Stockholders’ Equity. Upon the sale of an AFS security, any unrealized gain or loss is reclassified out of AOCI to earnings as a realized gain or loss using the specific identification method. The Company has elected the fair value option for certain of its CRT securities as it considers this method of accounting to more appropriately reflect the risk sharing structure of these securities. Such securities are carried at their fair value with changes in fair value included in earnings for the period and reported in Other Income, net on the Company’s consolidated statement of operations. Revenue Recognition, Premium Amortization and Discount Accretion Interest income on securities is accrued based on the outstanding principal balance and their contractual terms. Premiums and discounts associated with Agency MBS and Non-Agency MBS assessed as high credit quality at the time of purchase are amortized into interest income over the life of such securities using the effective yield method. Adjustments to premium amortization are made for actual prepayment activity. Interest income on the Non-Agency MBS that were purchased at a discount to par value and/or are considered to be of less than high credit quality is recognized based on the security’s effective interest rate which is the security’s internal rate of return (“IRR”). The IRR is determined using management’s estimate of the projected cash flows for each security, which are based on the Company’s observation of current information and events and include assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the IRR/ interest income recognized on these securities or in the recognition of OTTIs. (See Note 3 ) Based on the projected cash flows from the Company’s Non-Agency MBS purchased at a discount to par value, a portion of the purchase discount may be designated as non-accretable purchase discount (“Credit Reserve”), which effectively mitigates the Company’s risk of loss on the mortgages collateralizing such MBS and is not expected to be accreted into interest income. The amount designated as Credit Reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a Credit Reserve is more favorable than forecasted, a portion of the amount designated as Credit Reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a Credit Reserve is less favorable than forecasted, the amount designated as Credit Reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. Determination of Fair Value for MBS and CRT Securities In determining the fair value of the Company’s MBS and CRT securities, management considers a number of observable market data points, including prices obtained from pricing services, brokers and repurchase agreement counterparties, dialogue with market participants, as well as management’s observations of market activity. (See Note 15 ) Impairments/OTTI When the fair value of an AFS security is less than its amortized cost at the balance sheet date, the security is considered impaired. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary.” If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then the Company must recognize an OTTI through charges to earnings equal to the entire difference between the investment’s amortized cost and its fair value at the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the OTTI related to credit losses is recognized through charges to earnings with the remainder recognized through AOCI on the consolidated balance sheets. Impairments recognized through other comprehensive income/(loss) (“OCI”) do not impact earnings. Following the recognition of an OTTI through earnings, a new cost basis is established for the security and may not be adjusted for subsequent recoveries in fair value through earnings. However, OTTIs recognized through charges to earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, as such determinations are based on factual information available at the time of assessment as well as the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of OTTIs constitute material estimates that are susceptible to significant change. (See Note 3 ) Non-Agency MBS that are assessed to be of less than high credit quality and on which impairments are recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. The Company’s estimate of cash flows for its Non-Agency MBS is based on its review of the underlying mortgage loans securing the MBS. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios (“LTVs”), geographic concentrations, as well as reports by credit rating agencies, such as Moody’s Investors Services, Inc. (“Moody’s”), Standard & Poor’s Corporation (“S&P”) or Fitch, Inc. (collectively with Moody’s and S&P, “Rating Agencies”), general market assessments, and dialogue with market participants. As a result, significant judgment is used in the Company’s analysis to determine the expected cash flows for its Non-Agency MBS. In determining the OTTI related to credit losses for securities that were purchased at significant discounts to par and/or are considered to be of less than high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the purchase date (or last date previously revised) against the present value of the cash flows expected to be collected at the current financial reporting date. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. Impairment assessment for Non-Agency MBS and CRT Securities that were purchased at prices close to par and/or are otherwise considered to be of high credit quality involves comparing the present value of the remaining cash flows expected to be collected against the amortized cost of the security at the assessment date. The discount rate used to calculate the present value of the expected future cash flows is based on the instrument’s IRR. Balance Sheet Presentation The Company’s MBS and CRT Securities pledged as collateral against repurchase agreements, Federal Home Loan Bank advances and Swaps are included on the consolidated balance sheets with the fair value of the securities pledged disclosed parenthetically. Purchases and sales of securities are recorded on the trade date. ( c ) Securities Obtained and Pledged as Collateral/Obligation to Return Securities Obtained as Collateral The Company has obtained securities as collateral under collateralized financing arrangements in connection with its financing strategy for Non-Agency MBS. Securities obtained as collateral in connection with these transactions are recorded on the Company’s consolidated balance sheets as an asset along with a liability representing the obligation to return the collateral obtained, at fair value. While beneficial ownership of securities obtained remains with the counterparty, the Company has the right to transfer the collateral obtained or to pledge it as part of a subsequent collateralized financing transaction. (See Note 2 ( k ) for Repurchase Agreements and Reverse Repurchase Agreements) ( d ) Residential Whole Loans Residential whole loans included in the Company’s consolidated balance sheets are comprised of pools of fixed and adjustable rate residential mortgage loans acquired through consolidated trusts in secondary market transactions generally at discounted purchase prices. The accounting model utilized by the Company is determined at the time each loan package is initially acquired and is generally based on the delinquency status of the majority of the underlying borrowers in the package at acquisition. The accounting model described below under “Residential Whole Loans at Carrying Value” is typically utilized by the Company for loans where the underlying borrower has a delinquency status of less than 60 days at the acquisition date. The accounting model described below under “Residential Whole Loans at Fair Value” is typically utilized by the Company for loans where the underlying borrower has a delinquency status of 60 days or more at the acquisition date. The accounting model initially applied is not subsequently changed. The Company’s residential whole loans pledged as collateral against repurchase agreements are included in the consolidated balance sheets with amounts pledged disclosed parenthetically. Purchases and sales of residential whole loans are recorded on the trade date, with amounts recorded reflecting management’s current estimate of assets that will be acquired or disposed at the closing of the transaction. This estimate is subject to revision at the closing of the transaction, pending the outcome of due diligence performed prior to closing. Recorded amounts of residential whole loans for which the closing of the purchase transaction is yet to occur are not eligible to be pledged as collateral against any repurchase agreement financing until the closing of the purchase transaction. Residential Whole Loans at Carrying Value Notwithstanding that the majority of these loans are considered to be performing substantially in accordance with their current contractual terms and conditions, the Company has elected to account for these loans as credit impaired as they were acquired at discounted prices that reflect, in part, the impaired credit history of the borrower. Substantially all of the borrowers have previously experienced payment delinquencies and the amount owed on the mortgage loan may exceed the value of the property pledged as collateral. Consequently, the Company has assessed that these loans have a higher likelihood of default than newly originated mortgage loans with LTVs of 80% or less to creditworthy borrowers. The Company believes that amounts paid to acquire these loans represent fair market value at the date of acquisition. Such loans are initially recorded at fair value with no allowance for loan losses. Subsequent to acquisition, the recorded amount reflects the original investment amount, plus accretion of interest income, less principal and interest cash flows received. These loans are presented on the Company’s consolidated balance sheets at carrying value, which reflects the recorded amount reduced by any allowance for loan losses established subsequent to acquisition. Under the application of this accounting model the Company may aggregate into pools loans acquired in the same fiscal quarter that are assessed as having similar risk characteristics. For each pool established, or on an individual loans basis for loans not aggregated into pools, the Company estimates at acquisition and periodically on at least a quarterly basis, the principal and interest cash flows expected to be collected. The difference between the cash flows expected to be collected and the carrying amount of the loans is referred to as the “accretable yield.” This amount is accreted as interest income over the life of the loans using an effective interest rate (level yield) methodology. Interest income recorded each period reflects the amount of accretable yield recognized and not the coupon interest payments received on the underlying loans. The difference between contractually required principal and interest payments and the cash flows expected to be collected is referred to as the “non-accretable difference,” and includes estimates of both the effect of prepayments and expected credit losses over the life of the underlying loans. A decrease in expected cash flows in subsequent periods may indicate impairment at the pool and/or individual loan level, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. The allowance for loan losses represents the present value of cash flows expected at acquisition, adjusted for any increases due to changes in estimated cash flows, that are subsequently no longer expected to be received at the relevant measurement date. A significant increase in expected cash flows in subsequent periods first reduces any previously recognized allowance for loan losses and then will result in a recalculation in the amount of accretable yield. The adjustment of accretable yield due to a significant increase in expected cash flows is accounted for prospectively as a change in estimate and results in reclassification from nonaccretable difference to accretable yield. (See Notes 4 and 16 ) Residential Whole Loans at Fair Value Certain of the Company’s residential whole loans are presented at fair value on its consolidated balance sheets as a result of a fair value election made at time of acquisition. Given the significant uncertainty associated with estimating the timing of and amount of cash flows associated with these loans that will be collected, and that the cash flows ultimately collected may be dependent on the value of the property securing the loan, the Company considers that accounting for these loans at fair value should result in a better reflection over time of the economic returns from these loans. The Company determines the fair value of its residential whole loans held at fair value after considering portfolio valuations obtained from a third-party who specializes in providing valuations of residential mortgage loans and trading activity observed in the market place. Subsequent changes in fair value are reported in current period earnings and presented in Net gain on residential whole loans held at fair value on the Company’s consolidated statements of operations. Cash received reflecting coupon payments on residential whole loans held at fair value is not included in Interest Income, but rather is presented in Net gain on residential whole loans held at fair value on the Company’s consolidated statements of operations. Cash outflows associated with loan related advances made by the Company on behalf of the borrower are included in the basis of the loan and are reflected in Net gain on residential whole loans held at fair value. (See Notes 4 and 15 ) ( e ) Cash and Cash Equivalents Cash and cash equivalents include cash on deposit with financial institutions and investments in money market funds, all of which have original maturities of three months or less. Cash and cash equivalents may also include cash pledged as collateral to the Company by its repurchase agreement and/or Swap counterparties as a result of reverse margin calls (i.e., margin calls made by the Company). The Company did not hold any cash pledged by its counterparties at March 31, 2017 or December 31, 2016 . The Company’s investments in overnight money market funds, which are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, were $382.6 million and $208.9 million at March 31, 2017 and December 31, 2016 , respectively. (See Notes 7 and 15 ) ( f ) Restricted Cash Restricted cash represents the Company’s cash held by its counterparties in connection with certain of the Company’s Swaps and/or repurchase agreements that is not available to the Company for general corporate purposes. Restricted cash may be applied against amounts due to repurchase agreement and/or Swap counterparties, or may be returned to the Company when the related collateral requirements are exceeded or at the maturity of the Swap or repurchase agreement. The Company had aggregate restricted cash held as collateral or otherwise in connection with its Swaps and repurchase agreements of $11.0 million and $58.5 million at March 31, 2017 and December 31, 2016 , respectively. (See Notes 5 ( c ), 6 , 7 and 15 ) ( g ) Goodwill At March 31, 2017 and December 31, 2016 , the Company had goodwill of $7.2 million , which represents the unamortized portion of the excess of the fair value of its common stock issued over the fair value of net assets acquired in connection with its formation in 1998. Goodwill is tested for impairment at least annually, or more frequently under certain circumstances, at the entity level. Through March 31, 2017 , the Company had not recognized any impairment against its goodwill. Goodwill is included in Other assets on the Company’s consolidated balance sheets. ( h ) Real Estate Owned (“REO”) REO represents real estate acquired by the Company, including through foreclosure, deed in lieu of foreclosure, or purchased in connection with the acquisition of residential whole loans. REO acquired through foreclosure or deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs. REO acquired in connection with the acquisition of residential whole loans is initially recorded at its purchase price. Subsequent to acquisition, REO is reported, at each reporting date, at the lower of the current carrying amount or fair value less estimated selling costs and for presentation purposes is included in Other assets on the Company’s consolidated balance sheets. Changes in fair value that result in an adjustment to the reported amount of an REO property that has a fair value at or below its carrying amount are reported in Other Income, net on the Company’s consolidated statements of operations. (See Note 5 ( a )) ( i ) Depreciation Leasehold Improvements and Other Depreciable Assets Depreciation is computed on the straight-line method over the estimated useful life of the related assets or, in the case of leasehold improvements, over the shorter of the useful life or the lease term. Furniture, fixtures, computers and related hardware have estimated useful lives ranging from five to eight years at the time of purchase. ( j ) Resecuritization and Other Debt Issuance Costs Resecuritization related costs are costs associated with the issuance of beneficial interests by consolidated VIEs and incurred by the Company in connection with various resecuritization transactions completed by the Company. Other debt issuance and related costs include costs incurred by the Company in connection with issuing Senior Notes and certain other repurchase agreement financings. These costs may include underwriting, rating agency, legal, accounting and other fees. Such costs, which reflect deferred charges, are included on the Company’s consolidated balance sheets as a direct deduction from the corresponding debt liability. These deferred charges are amortized as an adjustment to interest expense using the effective interest method. For resecuritization financings, amortization is based upon the actual repayments of the associated beneficial interests issued to third parties. For Senior Notes and other repurchase agreement financings, such costs are amortized over the shorter of the period to the expected or stated legal maturity of the debt instruments. The Company periodically reviews the recoverability of these deferred costs and in the event an impairment charge is required, such amount will be included in Operating and Other Expense on the Company’s consolidated statements of operations. ( k ) Repurchase Agreements and Other Advances Repurchase Agreements The Company finances the holdings of a significant portion of its residential mortgage assets with repurchase agreements. Under repurchase agreements, the Company sells securities to a lender and agrees to repurchase the same securities in the future for a price that is higher than the original sale price. The difference between the sale price that the Company receives and the repurchase price that the Company pays represents interest paid to the lender. Although legally structured as sale and repurchase transactions, the Company accounts for repurchase agreements as secured borrowings. Under its repurchase agreements, the Company pledges its securities as collateral to secure the borrowing, which is equal in value to a specified percentage of the fair value of the pledged collateral, while the Company retains beneficial ownership of the pledged collateral. At the maturity of a repurchase financing, unless the repurchase financing is renewed with the same counterparty, the Company is required to repay the loan including any accrued interest and concurrently receives back its pledged collateral from the lender. With the consent of the lender, the Company may renew a repurchase financing at the then prevailing financing terms. Margin calls, whereby a lender requires that the Company pledge additional securities or cash as collateral to secure borrowings under its repurchase financing with such lender, are routinely experienced by the Company when the value of the MBS pledged as collateral declines as a result of principal amortization and prepayments or due to changes in market interest rates, spreads or other market conditions. The Company also may make margin calls on counterparties when collateral values increase. The Company’s repurchase financings typically have terms ranging from one month to six months at inception, but may also have longer or shorter terms. Should a counterparty decide not to renew a repurchase financing at maturity, the Company must either refinance elsewhere or be in a position to satisfy the obligation. If, during the term of a repurchase financing, a lender should default on its obligation, the Company might experience difficulty recovering its pledged assets which could result in an unsecured claim against the lender for the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged by the Company to such lender, including accrued interest receivable or such collateral. (See Notes 6 , 7 and 15 ) In addition to the repurchase agreement financing arrangements discussed above, as part of its financing strategy for Non-Agency MBS, the Company has entered into contemporaneous repurchase and reverse repurchase agreements with a single counterparty. Under a typical reverse repurchase agreement, the Company buys securities from a borrower for cash and agrees to sell the same securities in the future for a price that is higher than the original purchase price. The difference between the purchase price the Company originally paid and the sale price represents interest received from the borrower. In contrast, the contemporaneous repurchase and reverse repurchase transactions effectively resulted in the Company pledging Non-Agency MBS as collateral to the counterparty in connection with the repurchase agreement financing and obtaining U.S. Treasury securities as collateral from the same counterparty in connection with the reverse repurchase agreement. No net cash was exchanged between the Company and counterparty at the inception of the transactions. Securities obtained and pledged as collateral are recorded as an asset on the Company’s consolidated balance sheets. Interest income is recorded on the reverse repurchase agreement and interest expense is recorded on the repurchase agreement on an accrual basis. Both the Company and the counterparty have the right to make daily margin calls based on changes in the value of the collateral obtained and/or pledged. The Company’s liability to the counterparty in connection with this financing arrangement is recorded on the Company’s consolidated balance sheets and disclosed as “Obligation to return securities obtained as collateral, at fair value.” (See Note 2 ( c )) Federal Home Loan Bank (“FHLB”) Advances In January 2016, the Federal Housing Finance Agency (the “FHFA”) released its final rule amending its regulation on FHLB membership, which, among other things, provided termination rules for then current captive insurance members. As a result of such regulation, the Company’s wholly-owned subsidiary, MFA Insurance, Inc. (“MFA Insurance”) was required to repay all of its outstanding FHLB advances by February 19, 2017 and its FHLB membership was terminated on such date. FHLB advances were secured financing transactions and were carried at their contractual amounts. Accrued interest payable on FHLB advances is included in Other liabilities on the Company’s consolidated balance sheet at December 31, 2016 . (See Notes 6 , 7 and 15 ) ( l ) Equity-Based Compensation Compensation expense for equity-based awards that are subject to vesting conditions, is recognized ratably over the vesting period of such awards, based upon the fair value of such awards at the grant date. For certain awards granted prior to January 1, 2017, compensation expense recognized included the impact of estimated forfeitures, with any changes in estimated forfeiture rates accounted for as a change in estimate. Upon adoption of new accounting guidance that was effective for the Company on January 1, 2017, the Company made a policy election to account for forfeitures as they occur. (See Note 2 ( t )) From 2011 through 2013, the Company granted certain restricted stock units (“RSUs”) that vested annually over a one or three -year period, provided that certain criteria were met, which were based on a formula tied to the Company’s achievement of average total stockholder return during that three -year period. Starting in 2014, the Company has made annual grants of RSUs certain of which cliff vest after a three -year period and others of which cliff vest after a three -year period, subject to the achievement of certain performance criteria based on a formula tied to the Company’s achievement of average total stockholder return during that three -year period. The features in these awards related to the attainment of total stockholder return over a specified period constitute a “market condition” which impacts the amount of compensation expense recognized for these awards. Specifically, the uncertainty regarding the achievement of the market condition was reflected in the grant date fair valuation of the RSUs, which is recognized as compensation expense over the relevant vesting period. The amount of

MBS and CRT Securities

MBS and CRT Securities	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
MBS and CRT Securities	MBS and CRT Securities Agency and Non-Agency MBS The Company’s MBS are comprised of Agency MBS and Non-Agency MBS which include MBS issued prior to 2008 (“Legacy Non-Agency MBS”). These MBS are secured by: (i) hybrid mortgages (“Hybrids”), which have interest rates that are fixed for a specified period of time and, thereafter, generally adjust annually to an increment over a specified interest rate index; (ii) adjustable-rate mortgages (“ARMs”); (iii) mortgages that have interest rates that reset more frequently (collectively, “ARM-MBS”); and (iv) 15 year and longer-term fixed rate mortgages. In addition, the Company also holds MBS that are structured with a contractual coupon step-up feature where the coupon increases up to 300 basis points at 36 months from issuance or sooner (“3 Year Step-up securities”). The majority of the Company’s 3 Year Step-up securities are backed by securitized re-performing and non-performing loans and the cash flows of the bond may not reflect the contractual cash flows of the underlying collateral. The Company pledges a significant portion of its MBS as collateral against its borrowings under repurchase agreements and Swaps. (See Note 7 ) Agency MBS: Agency MBS are guaranteed as to principal and/or interest by a federally chartered corporation, such as Fannie Mae or Freddie Mac, or an agency of the U.S. Government, such as Ginnie Mae. The payment of principal and/or interest on Ginnie Mae MBS is explicitly backed by the full faith and credit of the U.S. Government. Since the third quarter of 2008, Fannie Mae and Freddie Mac have been under the conservatorship of the Federal Housing Finance Agency, which significantly strengthened the backing for these government-sponsored entities. Non-Agency MBS (including Non-Agency MBS transferred to consolidated VIEs): The Company’s Non-Agency MBS are primarily secured by pools of residential mortgages, which are not guaranteed by an agency of the U.S. Government or any federally chartered corporation. Credit risk associated with Non-Agency MBS is regularly assessed as new information regarding the underlying collateral becomes available and based on updated estimates of cash flows generated by the underlying collateral. CRT Securities CRT securities are debt obligations issued by Fannie Mae and Freddie Mac. While the coupon payments are paid by Fannie Mae or Freddie Mac on a monthly basis, the payment of principal is dependent on the performance of loans in a reference pool of MBS securitized by Fannie Mae or Freddie Mac. As principal on loans in the reference pool are paid, principal payments on the securities are made and the principal balances of the securities are reduced. Consequently, CRT securities mirror the payment and prepayment behavior of the mortgage loans in the reference pool. As an investor in a CRT security, the Company may incur a loss if certain defined credit events occur, including, for certain CRT securities, if the loans in the reference pool experience delinquencies exceeding specified thresholds. The Company assesses the credit risk associated with CRT securities by assessing the current and expected future performance of the associated reference pool. The Company pledges a significant portion of its CRT securities as collateral against its borrowings under repurchase agreements. (See Note 7 ) The following tables present certain information about the Company’s MBS and CRT securities at March 31, 2017 and December 31, 2016 : March 31, 2017 (In Thousands) Principal/ Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve and OTTI (1) Amortized Cost (2) Fair Value Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Agency MBS: Fannie Mae $ 2,686,996 $ 101,284 $ (49 ) $ — $ 2,788,231 $ 2,808,236 $ 39,653 $ (19,648 ) $ 20,005 Freddie Mac 661,114 25,447 — — 687,614 678,899 3,770 (12,485 ) (8,715 ) Ginnie Mae 7,231 130 — — 7,361 7,479 118 — 118 Total Agency MBS 3,355,341 126,861 (49 ) — 3,483,206 3,494,614 43,541 (32,133 ) 11,408 Non-Agency MBS: Expected to Recover Par (3)(4) 2,640,311 57 (23,788 ) — 2,616,580 2,643,478 27,882 (984 ) 26,898 Expected to Recover Less than Par (3) 3,145,353 — (245,937 ) (653,337 ) 2,246,079 2,824,700 579,929 (1,308 ) 578,621 Total Non-Agency MBS (5) 5,785,664 57 (269,725 ) (653,337 ) 4,862,659 5,468,178 607,811 (2,292 ) 605,519 Total MBS 9,141,005 126,918 (269,774 ) (653,337 ) 8,345,865 8,962,792 651,352 (34,425 ) 616,927 CRT securities (6) 467,886 4,159 (4,875 ) — 467,170 498,067 30,975 (78 ) 30,897 Total MBS and CRT securities $ 9,608,891 $ 131,077 $ (274,649 ) $ (653,337 ) $ 8,813,035 $ 9,460,859 $ 682,327 $ (34,503 ) $ 647,824 December 31, 2016 (In Thousands) Principal/ Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve and OTTI (1) Amortized Cost (2) Fair Value Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Agency MBS: Fannie Mae $ 2,879,807 $ 108,310 $ (51 ) $ — $ 2,988,066 $ 3,014,464 $ 45,706 $ (19,308 ) $ 26,398 Freddie Mac 693,945 26,736 — — 723,285 716,209 4,809 (11,885 ) (7,076 ) Ginnie Mae 7,550 136 — — 7,686 7,824 138 — 138 Total Agency MBS 3,581,302 135,182 (51 ) — 3,719,037 3,738,497 50,653 (31,193 ) 19,460 Non-Agency MBS: Expected to Recover Par (3)(4) 2,847,398 57 (24,273 ) — 2,823,182 2,847,291 26,477 (2,368 ) 24,109 Expected to Recover Less than Par (3) 3,359,200 — (253,918 ) (694,241 ) 2,411,041 2,978,525 570,318 (2,834 ) 567,484 Total Non-Agency MBS (5) 6,206,598 57 (278,191 ) (694,241 ) 5,234,223 5,825,816 596,795 (5,202 ) 591,593 Total MBS 9,787,900 135,239 (278,242 ) (694,241 ) 8,953,260 9,564,313 647,448 (36,395 ) 611,053 CRT securities (6) 384,993 3,312 (5,557 ) — 382,748 404,850 22,105 (3 ) 22,102 Total MBS and CRT securities $ 10,172,893 $ 138,551 $ (283,799 ) $ (694,241 ) $ 9,336,008 $ 9,969,163 $ 669,553 $ (36,398 ) $ 633,155 (1) Discount designated as Credit Reserve and amounts related to OTTI are generally not expected to be accreted into interest income. Amounts disclosed at March 31, 2017 reflect Credit Reserve of $636.2 million and OTTI of $17.1 million . Amounts disclosed at December 31, 2016 reflect Credit Reserve of $675.6 million and OTTI of $18.6 million . (2) Includes principal payments receivable of $1.1 million and $2.6 million at March 31, 2017 and December 31, 2016 , respectively, which are not included in the Principal/Current Face. (3) Based on managemen t ’ s current estimates of future principal cash flows expected to be received. (4) Includes 3 Year Step-up securities, which at March 31, 2017 had a $2.5 billion Principal/Current face, $2.4 billion amortized cost and $2.5 billion fair value. At December 31, 2016 , 3Year Step-up securities had a $2.7 billion Principal/Current face, $2.7 billion amortized cost and $2.7 billion fair value. (5) At March 31, 2017 and December 31, 2016 , the Company expected to recover approximately 89% and 89% , respectively, of the then-current face amount of Non-Agency MBS. (6) Amounts disclosed at March 31, 2017 includes CRT securities with a fair value of $362.1 million for which the fair value option has been elected. Such securities had gross unrealized gains of approximately $18.4 million at March 31, 2017 . Amounts disclosed at December 31, 2016 includes CRT securities with a fair value of $271.2 million for which the fair value option has been elected. Such securities had gross unrealized gains of approximately $12.7 million and net unrealized losses of approximately $3,000 at December 31, 2016 . Unrealized Losses on MBS and CRT Securities The following table presents information about the Company’s MBS and CRT securities that were in an unrealized loss position at March 31, 2017 : Unrealized Loss Position For: Less than 12 Months 12 Months or more Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (Dollars in Thousands) Agency MBS: Fannie Mae $ 385,791 $ 2,985 82 $ 862,234 $ 16,663 154 $ 1,248,025 $ 19,648 Freddie Mac 268,644 5,259 48 237,012 7,226 65 505,656 12,485 Total Agency MBS 654,435 8,244 130 1,099,246 23,889 219 1,753,681 32,133 Non-Agency MBS: Expected to Recover Par (1) 207,251 399 4 126,702 585 12 333,953 984 Expected to Recover Less than Par (1) 3,504 80 2 50,019 1,228 9 53,523 1,308 Total Non-Agency MBS 210,755 479 6 176,721 1,813 21 387,476 2,292 Total MBS 865,190 8,723 136 1,275,967 25,702 240 2,141,157 34,425 CRT securities (2) 24,950 78 1 — — — 24,950 78 Total MBS and CRT securities $ 890,140 $ 8,801 137 $ 1,275,967 $ 25,702 240 $ 2,166,107 $ 34,503 (1) Based on management’s current estimates of future principal cash flows expected to be received. (2) Amounts disclosed at March 31, 2017 includes CRT securities with a fair value of $25.0 million for which the fair value option has been elected. Such securities have unrealized losses of $78,000 at March 31, 2017 . At March 31, 2017 , the Company did not intend to sell any of its investments that were in an unrealized loss position, and it is “more likely than not” that the Company will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. Gross unrealized losses on the Company’s Agency MBS were $32.1 million at March 31, 2017 . Agency MBS are issued by Government Sponsored Entities (“GSEs”) and enjoy either the implicit or explicit backing of the full faith and credit of the U.S. Government. While the Company’s Agency MBS are not rated by any rating agency, they are currently perceived by market participants to be of high credit quality, with risk of default limited to the unlikely event that the U.S. Government would not continue to support the GSEs. Given the credit quality inherent in Agency MBS, the Company does not consider any of the current impairments on its Agency MBS to be credit related. In assessing whether it is more likely than not that it will be required to sell any impaired security before its anticipated recovery, which may be at its maturity, the Company considers for each impaired security, the significance of each investment, the amount of impairment, the projected future performance of such impaired securities, as well as the Company’s current and anticipated leverage capacity and liquidity position. Based on these analyses, the Company determined that at March 31, 2017 any unrealized losses on its Agency MBS were temporary. Gross unrealized losses on the Company’s Non-Agency MBS were $2.3 million at March 31, 2017 . Based upon the most recent evaluation, the Company does not consider these unrealized losses to be indicative of OTTI and does not believe that these unrealized losses are credit related, but are rather a reflection of current market yields and/or marketplace bid-ask spreads. The Company has reviewed its Non-Agency MBS that are in an unrealized loss position to identify those securities with losses that are other-than-temporary based on an assessment of changes in expected cash flows for such securities, which considers recent bond performance and, where possible, expected future performance of the underlying collateral. The Company recognized credit-related OTTI losses through earnings related to its Non-Agency MBS of $414,000 during three months ended March 31, 2017 . The Company did no t recognize any credit-related OTTI losses through earnings related to its investments during the three months ended March 31, 2016 . Non-Agency MBS on which OTTI is recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. The Company’s estimate of cash flows for these Non-Agency MBS is based on its review of the underlying mortgage loans securing these MBS. The Company considers information available about the structure of the securitization, including structural credit enhancement, if any, and the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, LTVs, geographic concentrations, as well as Rating Agency reports, general market assessments, and dialogue with market participants. Changes in the Company’s evaluation of each of these factors impacts the cash flows expected to be collected at the OTTI assessment date. For Non-Agency MBS purchased at a discount to par that were assessed for and had no OTTI recorded this period, such cash flow estimates indicated that the amount of expected losses decreased compared to the previous OTTI assessment date. These positive cash flow changes are primarily driven by recent improvements in LTVs due to loan amortization and home price appreciation, which, in turn, positively impacts the Company’s estimates of default rates and loss severities for the underlying collateral. In addition, voluntary prepayments (i.e., loans that prepay in full with no loss) have generally trended higher for these MBS which also positively impacts the Company’s estimate of expected loss. Overall, the combination of higher voluntary prepayments and lower LTVs supports the Company’s assessment that such MBS are not other-than-temporarily impaired. The following table presents the composition of OTTI charges recorded by the Company for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 Total OTTI losses $ (63 ) $ — OTTI reclassified from OCI (351 ) — OTTI recognized in earnings $ (414 ) $ — The following table presents a roll-forward of the credit loss component of OTTI on the Company’s Non-Agency MBS for which a non-credit component of OTTI was previously recognized in OCI. Changes in the credit loss component of OTTI are presented based upon whether the current period is the first time OTTI was recorded on a security or a subsequent OTTI charge was recorded. Three Months Ended (In Thousands) 2017 2016 Credit loss component of OTTI at beginning of period $ 37,305 $ 36,820 Additions for credit related OTTI not previously recognized 63 — Subsequent additional credit related OTTI recorded 351 — Credit loss component of OTTI at end of period $ 37,719 $ 36,820 Purchase Discounts on Non-Agency MBS The following tables present the changes in the components of the Company’s purchase discount on its Non-Agency MBS between purchase discount designated as Credit Reserve and OTTI and accretable purchase discount for the three months ended March 31, 2017 and 2016 : Three Months Ended Three Months Ended (In Thousands) Discount Designated as Credit Reserve and OTTI Accretable Discount (1) Discount Designated as Credit Reserve and OTTI Accretable Discount (1) Balance at beginning of period $ (694,241 ) $ (278,191 ) $ (787,541 ) $ (312,182 ) Accretion of discount — 21,616 — 21,406 Realized credit losses 12,324 — 18,050 — Purchases — — (4,294 ) 1,606 Sales 19,741 (3,897 ) 12,020 12,040 Net impairment losses recognized in earnings (414 ) — — — Transfers/release of credit reserve 9,253 (9,253 ) 4,201 (4,201 ) Balance at end of period $ (653,337 ) $ (269,725 ) $ (757,564 ) $ (281,331 ) (1) Together with coupon interest, accretable purchase discount is recognized as interest income over the life of the security. Impact of AFS Securities on AOCI The following table presents the impact of the Company’s AFS securities on its AOCI for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In Thousands) 2017 2016 AOCI from AFS securities: Unrealized gain on AFS securities at beginning of period $ 620,403 $ 585,250 Unrealized (loss)/gain on Agency MBS, net (8,052 ) 13,226 Unrealized gain/(loss) on Non-Agency MBS, net 27,521 (58,840 ) Reclassification adjustment for MBS sales included in net income (9,971 ) (10,485 ) Reclassification adjustment for OTTI included in net income (414 ) — Change in AOCI from AFS securities 9,084 (56,099 ) Balance at end of period $ 629,487 $ 529,151 Sales of MBS During the three months ended March 31, 2017 , the Company sold certain Non-Agency MBS for $21.6 million realizing gross gains of $10.0 million . During the three months ended March 31, 2016 , the Company sold certain Non-Agency MBS for $32.0 million and realizing gross gains of $9.7 million . The Company has no continuing involvement with any of the sold MBS. Interest Income on MBS and CRT Securities The following table presents the components of interest income on the Company’s MBS and CRT securities for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In Thousands) 2017 2016 Agency MBS Coupon interest $ 26,212 $ 32,132 Effective yield adjustment (1) (8,318 ) (8,135 ) Interest income $ 17,894 $ 23,997 Legacy Non-Agency MBS Coupon interest $ 34,662 $ 40,309 Effective yield adjustment (2) 21,442 19,913 Interest income $ 56,104 $ 60,222 3 Year Step-up securities Coupon interest $ 25,965 $ 24,370 Effective yield adjustment (1) 174 1,560 Interest income $ 26,139 $ 25,930 CRT securities Coupon interest $ 5,257 $ 2,356 Effective yield adjustment (2) 1,119 336 Interest income $ 6,376 $ 2,692 (1) Includes amortization of premium paid net of accretion of purchase discount. For Agency MBS and 3 Year Step-up securities, interest income is recorded at an effective yield, which reflects net premium amortization/accretion based on actual prepayment activity. (2) The effective yield adjustment is the difference between the net income calculated using the net yield, which is based on management’s estimates of the amount and timing of future cash flows, less the current coupon yield.

Residential Whole Loans

Residential Whole Loans	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Residential Whole Loans	Residential Whole Loans Included on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016 are approximately $1.3 billion and $1.4 billion , respectively, of residential whole loans arising from the Company’s 100% equity interest in certificates issued by certain trusts established to acquire the loans. Based on its evaluation of these interests and other factors, the Company has determined that the trusts are required to be consolidated for financial reporting purposes. Residential Whole Loans at Carrying Value Residential whole loans at carrying value totaled approximately $573.7 million and $590.5 million at March 31, 2017 and December 31, 2016 , respectively. The carrying value reflects the original investment amount, plus accretion of interest income, less principal and interest cash flows received. The carrying value is reduced by any allowance for loan losses established subsequent to acquisition. The Company had approximately 3,150 and 3,226 Residential whole loans held at carrying value at March 31, 2017 and December 31, 2016 , respectively. As of March 31, 2017 the Company had established an allowance for loan losses of approximately $769,000 on its residential whole loan pools held at carrying value. For the three months ended March 31, 2017 and 2016 , a net reversal of provision for loan losses of approximately $221,000 and $37,000 was recorded, respectively, which is included in Operating and Other expense on the Company’s consolidated statement of operations. The following table presents the activity in the Company’s allowance for loan losses on its residential whole loan pools at carrying value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at the beginning of period $ 990 $ 1,165 Reversal of provisions for loan losses (221 ) (37 ) Balance at the end of period $ 769 $ 1,128 The following table presents information regarding estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the residential whole loans held at carrying value acquired by the Company for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Contractually required principal and interest $ — $ 199,092 Contractual cash flows not expected to be collected (non-accretable yield) — (28,663 ) Expected cash flows to be collected — 170,429 Interest component of expected cash flows (accretable yield) — (58,509 ) Fair value at the date of acquisition $ — $ 111,920 The following table presents accretable yield activity for the Company’s residential whole loans held at carrying value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 334,379 $ 175,271 Additions — 58,509 Accretion (8,690 ) (4,436 ) Reclassifications (to)/from non-accretable difference, net (138 ) 64 Balance at end of period $ 325,551 $ 229,408 Accretable yield for residential whole loans is the excess of loan cash flows expected to be collected over the purchase price. The cash flows expected to be collected represent the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from non-accretable yield. Accretable yield is reduced by accretion during the period. The reclassifications between accretable and non-accretable yield and the accretion of interest income are based on changes in estimates regarding loan performance and the value of the underlying real estate securing the loans. In future periods, as the Company updates estimates of cash flows expected to be collected from the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded during the three months ended March 31, 2017 is not necessarily indicative of future results. Residential Whole Loans at Fair Value Certain of the Company’s residential whole loans are presented at fair value on its consolidated balance sheets as a result of a fair value election made at time of acquisition. Subsequent changes in fair value are reported in current period earnings and presented in Net gain on residential whole loans held at fair value on the Company’s consolidated statements of operations. The following table presents information regarding the Company’s residential whole loans held at fair value at March 31, 2017 and December 31, 2016 : (Dollars in Thousands) March 31, 2017 December 31, 2016 Outstanding principal balance $ 907,312 $ 966,276 Aggregate fair value $ 775,152 $ 814,682 Number of loans 3,558 3,812 During the three months ended March 31, 2017 and 2016 , the Company recorded net gains on residential whole loans held at fair value of $13.8 million and $12.3 million , respectively. The following table presents the components of Net gain on residential whole loans held at fair value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Coupon payments and other income received $ 8,173 $ 4,401 Net unrealized gains 2,948 6,226 Net gain on payoff/liquidation of loans 868 1,254 Net gain on transfer to REO 1,784 467 Total $ 13,773 $ 12,348

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2017
Other Assets [Abstract]
Other Assets	Other Assets The following table presents the components of the Company’s Other assets at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 REO $ 98,708 $ 80,503 Corporate loan 93,002 85,800 Interest receivable 27,465 27,795 Swaps, at fair value 119 233 Goodwill 7,189 7,189 Prepaid and other assets 60,012 78,775 Total Other Assets $ 286,495 $ 280,295 ( a ) Real Estate Owned At March 31, 2017 , the Company had 542 REO properties with an aggregate carrying value of $98.7 million . At December 31, 2016 , the Company had 447 REO properties with an aggregate carrying value of $80.5 million . During the three months ended March 31, 2017 and 2016 , the Company reclassified 179 and 138 mortgage loans to REO at an aggregate estimated fair value less estimated selling costs of $31.1 million and $22.3 million , respectively, at the time of transfer. Such transfers occur when the Company takes possession of the property by foreclosing on the borrower or completes a “deed-in-lieu of foreclosure” transaction. At March 31, 2017 , $97.7 million of residential real estate property was held by the Company that was acquired either through a completed foreclosure proceeding or from completion of a deed-in-lieu of foreclosure or similar legal agreement. In addition, formal foreclosure proceedings were in process with respect to $29.2 million of residential whole loans held at carrying value and $467.9 million of residential whole loans held at fair value at March 31, 2017 . During the three months ended March 31, 2017 and 2016 , the Company sold 84 and 50 REO properties for consideration of $12.7 million and $6.2 million , realizing net gains of approximately $875,000 and $509,000 , respectively. These amounts are included in Other, net on the Company’s consolidated statements of operations. In addition, following an updated assessment of liquidation amounts expected to be realized that was performed on all REO held at the end of the first quarters of 2017 and 2016 , downward adjustments of approximately $1.8 million and $1.8 million were recorded to reflect certain REO properties at the lower of cost or estimated fair value as of March 31, 2017 and 2016 , respectively. The following table presents the activity in the Company’s REO for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 80,503 $ 28,026 Adjustments to record at lower of cost or fair value (1,823 ) (1,777 ) Transfer from residential whole loans (1) 31,098 22,280 Purchases and capital improvements 774 410 Disposals (11,844 ) (5,648 ) Balance at end of period $ 98,708 $ 43,291 (1) Includes net gain recorded on transfer of approximately $1.3 million and $441,000 , respectively, for the three months ended March 31, 2017 and 2016 . ( b ) Corporate Loan The Company has entered into a loan agreement with an entity that originates loans and owns mortgage servicing rights (“MSRs”). The loan is secured by certain Government, Agency and Private-Label MSRs, as well as other unencumbered assets owned by the borrower. Under the terms of the loan agreement, the Company has committed to lend $130.0 million of which approximately $93.9 million was drawn at March 31, 2017 . At March 31, 2017 , the coupon paid by the borrower on the drawn amount is 7.50% , the remaining term associated with the loan is 3.3 years and remaining commitment period on any undrawn amount is 1.2 years . During the commitment period, the Company receives a commitment fee of 1% of the undrawn amount. The term loan is recorded on the Company’s balance sheet at the drawn amount, with interest income recognized on an accrual basis. Commitment fees received are deferred and recognized as interest income over remaining loan term at the time of draw. At the end of the commitment period, any remaining deferred commitment fees will be recorded as Other income. The Company evaluates the recoverability of the loan on a quarterly basis by considering various factors, including the current status of the loan, changes in fair value of the MSRs that secure the loan and the recent financial performance of the borrower. At March 31, 2017 no allowance for loan loss was recorded in relation to this loan. ( c ) Derivative Instruments The Company’s derivative instruments are currently comprised of Swaps, which are designated as cash flow hedges against the interest rate risk associated with its borrowings. The following table presents the fair value of the Company’s derivative instruments and their balance sheet location at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Derivative Instrument Designation Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value (In Thousands) Non-cleared legacy Swaps (1) Hedging Assets $ 300,000 $ 119 $ 350,000 $ 233 Cleared Swaps (2) Hedging Liabilities $ 2,550,000 $ — $ 2,550,000 $ (46,954 ) (1) Non-cleared legacy Swaps include Swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. (2) Cleared Swaps include Swaps executed bilaterally with a counterparty in the over-the-counter market but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap. Swaps Consistent with market practice, the Company has agreements with its Swap counterparties on contracts that are not required to be novated to a central clearing house that provide for the posting of collateral based on the fair values of its derivative contracts. Through this margining process, either the Company or its derivative counterparty may be required to pledge cash or securities as collateral. In addition, Swaps novated to and cleared by a central clearing house are subject to initial margin requirements. Certain derivative contracts provide for cross collateralization with repurchase agreements with the same counterparty. A number of the Company’s Swap contracts include financial covenants, which, if breached, could cause an event of default or early termination event to occur under such agreements. Such financial covenants include minimum net worth requirements and maximum debt-to-equity ratios. If the Company were to cause an event of default or trigger an early termination event pursuant to one of its Swap contracts, the counterparty to such agreement may have the option to terminate all of its outstanding Swap contracts with the Company and, if applicable, any close-out amount due to the counterparty upon termination of the Swap contracts would be immediately payable by the Company. The Company was in compliance with all of its financial covenants through March 31, 2017 . The following table presents the assets pledged as collateral against the Company’s Swap contracts at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 Agency MBS, at fair value $ 31,125 $ 32,468 Restricted cash 4,756 53,849 Total assets pledged against Swaps $ 35,881 $ 86,317 The Company’s derivative hedging instruments, or a portion thereof, could become ineffective in the future if the associated repurchase agreements that such derivatives hedge fail to exist or fail to have terms that match those of the derivatives that hedge such borrowings. At March 31, 2017 , all of the Company’s derivatives were deemed effective for hedging purposes and no derivatives were terminated during the three months ended March 31, 2017 and 2016 . The Company’s Swaps designated as hedging transactions have the effect of modifying the repricing characteristics of the Company’s repurchase agreements and cash flows for such liabilities. To date, no cost has been incurred at the inception of a Swap (except for certain transaction fees related to entering into Swaps cleared though a central clearing house), pursuant to which the Company agrees to pay a fixed rate of interest and receive a variable interest rate, generally based on one -month or three -month London Interbank Offered Rate (“LIBOR”), on the notional amount of the Swap. The Company did not recognize any change in the value of its existing Swaps designated as hedges through earnings as a result of hedge ineffectiveness during the three months ended March 31, 2017 and 2016 . At March 31, 2017 , the Company had Swaps designated in hedging relationships with an aggregate notional amount of $2.9 billion and extended 32 months on average with a maximum term of approximately 77 months . The following table presents certain information with respect to the Company’s Swap activity during the three months ended March 31, 2017 : (Dollars in Thousands) Three Months Ended New Swaps: Number of new Swaps — Aggregate notional amount $ — Swaps amortized/expired: Aggregate notional amount $ 50,000 Weighted average fixed-pay rate 0.67 % The following table presents information about the Company’s Swaps at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Notional Amount Weighted Average Fixed-Pay Interest Rate Weighted Average Variable Interest Rate (2) Notional Amount Weighted Average Fixed-Pay Interest Rate Weighted Average Variable Interest Rate (2) Maturity (1) (Dollars in Thousands) Within 30 days $ — — % — % $ — — % — % Over 30 days to 3 months 300,000 0.57 0.84 50,000 0.67 0.64 Over 3 months to 6 months — — — 300,000 0.57 0.66 Over 6 months to 12 months — — — — — — Over 12 months to 24 months 650,000 1.53 0.93 550,000 1.49 0.71 Over 24 months to 36 months 100,000 1.71 0.98 200,000 1.71 0.76 Over 36 months to 48 months 1,600,000 2.22 0.96 1,500,000 2.22 0.74 Over 48 months to 60 months 100,000 2.21 0.98 200,000 2.20 0.75 Over 60 months to 72 months — — — — — — Over 72 months to 84 months (3) 100,000 2.75 0.98 100,000 2.75 0.74 Total Swaps $ 2,850,000 1.89 % 0.94 % $ 2,900,000 1.87 % 0.72 % (1) Each maturity category reflects contractual amortization and/or maturity of notional amounts. (2) Reflects the benchmark variable rate due from the counterparty at the date presented, which rate adjusts monthly or quarterly based on one -month or three -month LIBOR, respectively. (3) Reflects one Swap with a maturity date of July 2023. The following table presents the net impact of the Company’s derivative hedging instruments on its interest expense and the weighted average interest rate paid and received for such Swaps for the three months ended March 31, 2017 and 2016 : Three Months Ended (Dollars in Thousands) 2017 2016 Interest expense attributable to Swaps $ 7,809 $ 10,650 Weighted average Swap rate paid 1.88 % 1.82 % Weighted average Swap rate received 0.79 % 0.42 % Impact of Derivative Hedging Instruments on AOCI The following table presents the impact of the Company’s derivative hedging instruments on its AOCI for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 AOCI from derivative hedging instruments: Balance at beginning of period $ (46,721 ) $ (69,399 ) Net gain/(loss) on Swaps 11,897 (49,342 ) Balance at end of period $ (34,824 ) $ (118,741 )

Repurchase Agreements and Other

Repurchase Agreements and Other Advances	3 Months Ended
	Mar. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
Repurchase Agreements and Other Advances	Repurchase Agreements and Other Advances Repurchase Agreements The Company’s repurchase agreements are accounted for as secured borrowings and bear interest that is generally LIBOR-based. (See Notes 2 ( k ) and 7 ) At March 31, 2017 , the Company’s borrowings under repurchase agreements had a weighted average remaining term-to-interest rate reset of 17 days and an effective repricing period of 12 months , including the impact of related Swaps. At December 31, 2016 , the Company’s borrowings under repurchase agreements had a weighted average remaining term-to-interest rate reset of 19 days and an effective repricing period of 12 months , including the impact of related Swaps. The following table presents information with respect to the Company’s borrowings under repurchase agreements and associated assets pledged as collateral at March 31, 2017 and December 31, 2016 : (Dollars in Thousands) March 31, December 31, Repurchase agreement borrowings secured by Agency MBS $ 3,093,737 $ 3,095,020 Fair value of Agency MBS pledged as collateral under repurchase agreements $ 3,330,251 $ 3,280,689 Weighted average haircut on Agency MBS (1) 4.56 % 4.67 % Repurchase agreement borrowings secured by Legacy Non-Agency MBS $ 1,573,545 $ 1,690,937 Fair value of Legacy Non-Agency MBS pledged as collateral under repurchase agreements (2) $ 2,070,626 $ 2,317,708 Weighted average haircut on Legacy Non-Agency MBS (1) 22.44 % 24.01 % Repurchase agreement borrowings secured by 3 Year Step-up securities $ 1,875,157 $ 2,035,531 Fair value of 3 Year Step-up securities pledged as collateral under repurchase agreements $ 2,376,119 $ 2,574,691 Weighted average haircut on 3 Year Step-up securities (1) 21.52 % 21.70 % Repurchase agreements secured by U.S. Treasuries $ 366,475 $ 504,572 Fair value of U.S. Treasuries pledged as collateral under repurchase agreements $ 371,333 $ 510,767 Weighted average haircut on U.S. Treasuries (1) 1.73 % 1.60 % Repurchase agreements secured by CRT securities $ 345,482 $ 271,205 Fair value of CRT securities pledged as collateral under repurchase agreements $ 446,231 $ 357,488 Weighted average haircut on CRT securities (1) 22.36 % 23.22 % Repurchase agreements secured by residential whole loans (3) $ 836,203 $ 832,060 Fair value of residential whole loans pledged as collateral under repurchase agreements $ 1,178,562 $ 1,175,088 Weighted average haircut on residential whole loans (1) 25.16 % 25.03 % Repurchase agreements secured by other investments $ 46,944 $ 43,333 Fair value of other investments pledged as collateral under repurchase agreements $ 93,002 $ 85,800 Weighted average haircut on other investments (1) 50.00 % 50.00 % (1) Haircut represents the percentage amount by which the collateral value is contractually required to exceed the loan amount. (2) At December 31, 2016 includes $172.4 million of Legacy Non-Agency MBS acquired from consolidated VIEs that are eliminated from the Company’s consolidated balance sheets. (3) Excludes $441,000 and $210,000 of unamortized debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. The following table presents repricing information about the Company’s borrowings under repurchase agreements, which does not reflect the impact of associated derivative hedging instruments, at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Balance Weighted Average Interest Rate Balance Weighted Average Interest Rate Time Until Interest Rate Reset (Dollars in Thousands) Within 30 days $ 7,502,995 1.86 % $ 7,284,062 1.77 % Over 30 days to 3 months 634,548 2.41 1,188,416 1.91 Total repurchase agreements 8,137,543 1.91 % 8,472,478 1.48 % Less debt issuance costs 441 210 Total repurchase agreements less debt issuance costs $ 8,137,102 $ 8,472,268 The following table presents contractual maturity information about the Company’s borrowings under repurchase agreements, all of which are accounted for as secured borrowings, at March 31, 2017 , and does not reflect the impact of derivative contracts that hedge such repurchase agreements: March 31, 2017 Contractual Maturity Overnight Within 30 Days Over 30 Days to 3 Months Over 3 Months to 12 Months Over 12 months Total (Dollars in Thousands) Agency MBS $ — $ 3,093,737 $ — $ — $ — $ 3,093,737 Legacy Non-Agency MBS — 926,866 336,316 310,363 — 1,573,545 3 Year Step-up securities — 894,904 304,141 676,112 — 1,875,157 U.S. Treasuries — 366,475 — — — 366,475 CRT securities — 327,674 17,808 — — 345,482 Residential whole loans — — — 805,595 30,608 836,203 Other investments — 46,944 — — — 46,944 Total (1) $ — $ 5,656,600 $ 658,265 $ 1,792,070 $ 30,608 $ 8,137,543 Weighted Average Interest Rate — % 1.56 % 2.41 % 2.80 % 3.36 % 1.91 % Gross amount of recognized liabilities for repurchase agreements in Note 8 $ 8,137,543 Amounts related to repurchase agreements not included in offsetting disclosure in Note 8 $ — (1) Excludes $441,000 of unamortized debt issuance costs at March 31, 2017 . The Company had repurchase agreements with 31 counterparties at both March 31, 2017 and December 31, 2016 , respectively. The following table presents information with respect to each counterparty under repurchase agreements for which the Company had greater than 5% of stockholders’ equity at risk in the aggregate at March 31, 2017 : March 31, 2017 Counterparty Rating (1) Amount at Risk (2) Weighted Average Months to Maturity for Repurchase Agreements Percent of Stockholders’ Equity Counterparty (Dollars in Thousands) Wells Fargo (3) AA-/Aa2/AA $ 262,489 6 8.6 % Credit Suisse (4) BBB+/Aa2/A- 244,263 6 8.0 RBC (5) AA-/Aa3/AA 241,521 1 7.9 Goldman Sachs BBB+/A3/A 210,562 1 6.9 UBS (6) A+/A1/A+ 167,321 14 5.5 (1) As rated at March 31, 2017 by S&P, Moody’s and Fitch, Inc., respectively. The counterparty rating presented is the lowest published for these entities. (2) The amount at risk reflects the difference between (a) the amount loaned to the Company through repurchase agreements, including interest payable, and (b) the cash and the fair value of the securities pledged by the Company as collateral, including accrued interest receivable on such securities. (3) Includes $248.7 million at risk with Wells Fargo Bank, NA and $13.8 million at risk with Wells Fargo Securities LLC. (4) Includes $196.7 million at risk with Credit Suisse AG, Cayman Islands and $47.5 million at risk with Credit Suisse. Counterparty ratings are not published for Credit Suisse AG, Cayman Islands. (5) Includes $226.8 million at risk with RBC Barbados, $9.3 million at risk with Royal Bank of Canada and $5.4 million at risk with RBC Capital Markets LLC. Counterparty ratings are not published for RBC Barbados and RBC Capital Markets LLC. (6) Includes Non-Agency MBS pledged as collateral with contemporaneous repurchase and reverse repurchase agreements. FHLB Advances In January 2016, the FHFA released its final rule amending its regulation on FHLB membership, which, among other things, provided termination rules for then current captive insurance members. As a result of such regulation, MFA Insurance was required to repay all of its outstanding FHLB advances by February 19, 2017 and its FHLB membership was terminated on such date. At December 31, 2016 , MFA Insurance had $215.0 million in outstanding long-term secured FHLB advances with a weighted average borrowing rate of 0.78% . Interest payable on outstanding FHLB advances at December 31, 2016 totaled approximately $42,000 and was included in Other liabilities on the Company’s consolidated balance sheets.

Collateral Positions

Collateral Positions	3 Months Ended
	Mar. 31, 2017
Collateral Positions
Collateral Positions	Collateral Positions The Company pledges securities or cash as collateral to its counterparties pursuant to its borrowings under repurchase agreements, certain of its Swap contracts that are not centrally cleared that are in an unrealized loss position and for initial margin payments on centrally cleared Swaps, and it receives securities or cash as collateral pursuant to financing provided under reverse repurchase agreements and certain of its Swap contracts that are not centrally cleared that are in an unrealized gain position. The Company exchanges collateral with its counterparties based on changes in the fair value, notional amount and term of the associated repurchase agreements and Swap contracts, as applicable. In connection with these margining practices, either the Company or its counterparty may be required to pledge cash or securities as collateral. When the Company’s pledged collateral exceeds the required margin, the Company may initiate a reverse margin call, at which time the counterparty may either return the excess collateral or provide collateral to the Company in the form of cash or equivalent securities. The following table summarizes the fair value of the Company’s collateral positions, which includes collateral pledged and collateral held, with respect to its borrowings under repurchase agreements, reverse repurchase agreements, derivative hedging instruments and FHLB advances at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Assets Pledged Collateral Held Assets Pledged Collateral Held Derivative Hedging Instruments: Agency MBS $ 31,125 $ — $ 32,468 $ — Cash (1) 4,756 — 53,849 — 35,881 — 86,317 — Repurchase Agreement Borrowings: Agency MBS 3,330,251 — 3,280,689 — Legacy Non-Agency MBS (2)(3) 2,070,626 — 2,317,708 — 3 Year Step-up securities 2,376,119 — 2,574,691 — U.S. Treasury securities 371,333 — 510,767 — CRT securities 446,231 — 357,488 — Residential whole loans 1,178,562 — 1,175,088 — Other investments 93,002 — 85,800 — Cash (1) 6,224 — 4,614 — 9,872,348 — 10,306,845 — FHLB Advances: Agency MBS — — 227,244 — — — 227,244 — Reverse Repurchase Agreements: U.S. Treasury securities — 510,733 — 510,767 — 510,733 — 510,767 Total $ 9,908,229 $ 510,733 $ 10,620,406 $ 510,767 (1) Cash pledged as collateral is reported as “Restricted cash” on the Company’s consolidated balance sheets. (2) At December 31, 2016 includes $172.4 million of Legacy Non-Agency MBS acquired in connection with resecuritization transactions from consolidated VIEs that are eliminated from the Company’s consolidated balance sheets. (3) In addition, at March 31, 2017 and December 31, 2016 , $687.8 million and $688.2 million of Legacy Non-Agency MBS, respectively, are pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty. The following table presents detailed information about the Company’s assets pledged as collateral pursuant to its borrowings under repurchase agreements and derivative hedging instruments at March 31, 2017 : March 31, 2017 Assets Pledged Under Repurchase Agreements Assets Pledged Against Derivative Hedging Instruments Total Fair Value of Assets Pledged and Accrued Interest (In Thousands) Fair Value Amortized Cost Accrued Interest on Pledged Assets Fair Value/ Carrying Value Amortized Cost Accrued Interest on Pledged Assets Agency MBS $ 3,330,251 $ 3,318,013 $ 8,344 $ 31,125 $ 31,917 $ 64 $ 3,369,784 Legacy Non-Agency MBS (1) 2,070,626 1,668,418 7,726 — — — 2,078,352 3 Year Step-up securities 2,376,119 2,371,887 1,536 — — — 2,377,655 U.S. Treasuries 371,333 374,081 — — — — 371,333 CRT securities 446,231 417,091 279 — — — 446,510 Residential whole loans (2) 1,178,562 1,163,416 3,861 — — — 1,182,423 Other investments 93,002 93,002 572 — — — 93,574 Cash (3) 6,224 6,224 — 4,756 4,756 — 10,980 Total $ 9,872,348 $ 9,412,132 $ 22,318 $ 35,881 $ 36,673 $ 64 $ 9,930,611 (1) In addition, at March 31, 2017 , $687.8 million of Legacy Non-Agency MBS are pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty. (2) Includes residential whole loans held at carrying value with an aggregate fair value of $433.5 million and aggregate amortized cost of $418.4 million and residential whole loans held at fair value with an aggregate fair value and amortized cost of $745.0 million . (3) Cash pledged as collateral is reported as “Restricted cash” on the Company’s consolidated balance sheets.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	3 Months Ended
	Mar. 31, 2017
Offsetting [Abstract]
Offsetting Assets and Liabilities	Offsetting Assets and Liabilities The following tables present information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) and may potentially be offset on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016 : Offsetting of Financial Assets and Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount (In Thousands) Financial Instruments Cash Collateral Received March 31, 2017 Swaps, at fair value $ 119 $ — $ 119 $ (119 ) $ — $ — Total $ 119 $ — $ 119 $ (119 ) $ — $ — December 31, 2016 Swaps, at fair value $ 233 $ — $ 233 $ (233 ) $ — $ — Total $ 233 $ — $ 233 $ (233 ) $ — $ — Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount (In Thousands) Financial Instruments (1) Cash Collateral Pledged (1) March 31, 2017 Swaps, at fair value (2) $ — $ — $ — $ — $ — $ — Repurchase agreements and other advances (3)(4) 8,137,543 — 8,137,543 (8,131,319 ) (6,224 ) — Total $ 8,137,543 $ — $ 8,137,543 $ (8,131,319 ) $ (6,224 ) $ — December 31, 2016 Swaps, at fair value (2) $ 46,954 $ — $ 46,954 $ — $ (46,954 ) $ — Repurchase agreements and other advances (3)(4) 8,687,478 — 8,687,478 (8,682,864 ) (4,614 ) — Total $ 8,734,432 $ — $ 8,734,432 $ (8,682,864 ) $ (51,568 ) $ — (1) Amounts disclosed in the Financial Instruments column of the table above represent collateral pledged that is available to be offset against liability balances associated with repurchase agreements and other advances, and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represent amounts pledged as collateral against derivative transactions and repurchase agreements, and exclude excess collateral of $4.8 million and $6.9 million at March 31, 2017 and December 31, 2016 , respectively. (2) The fair value of securities pledged against the Company’s Swaps was $31.1 million and $32.5 million at March 31, 2017 and December 31, 2016 , respectively. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap. (3) The fair value of financial instruments pledged against the Company’s repurchase agreements and other advances was $9.9 billion and $10.5 billion at March 31, 2017 and December 31, 2016 , respectively. (4) Excludes $441,000 and $210,000 of unamortized debt issuance costs at March 31, 2017 and December 31, 2016 , respectively. Nature of Setoff Rights In the Company’s consolidated balance sheets, all balances associated with the repurchase agreement and Swap transactions that are not centrally cleared are presented on a gross basis. Certain of the Company’s repurchase agreement and derivative transactions are governed by underlying agreements that generally provide for a right of setoff in the event of default or in the event of a bankruptcy of either party to the transaction. For one repurchase agreement counterparty, the underlying agreements provide for an unconditional right of setoff.

Senior Notes

Senior Notes	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Senior Notes	Senior Notes On April 11, 2012, the Company issued $100.0 million in aggregate principal amount of its Senior Notes in an underwritten public offering. The total net proceeds to the Company from the offering of the Senior Notes were approximately $96.6 million , after deducting offering expenses and the underwriting discount. The Senior Notes bear interest at a fixed rate of 8.00% per year, paid quarterly in arrears on January 15, April 15, July 15 and October 15 of each year and will mature on April 15, 2042. The Senior Notes have an effective interest rate, including the impact of amortization to interest expense of debt issuance costs, of 8.31% . The Company may redeem the Senior Notes, in whole or in part, at any time on or after April 15, 2017, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to, but not excluding, the redemption date. The Senior Notes are the Company’s senior unsecured obligations and are subordinate to all of the Company’s secured indebtedness, which includes the Company’s repurchase agreements, obligation to return securities obtained as collateral and other financing arrangements, to the extent of the value of the collateral securing such indebtedness.

Other Liabilities

Other Liabilities	3 Months Ended
	Mar. 31, 2017
Other Liabilities [Abstract]
Other Liabilities	Other Liabilities The following table presents the components of the Company’s Other liabilities at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 Accrued interest payable $ 13,648 $ 14,129 Swaps, at fair value (1) — 46,954 Dividends and dividend equivalents payable 74,830 74,657 Accrued expenses and other liabilities 11,103 19,612 Total Other Liabilities $ 99,581 $ 155,352 (1) Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments The Company pays monthly rent pursuant to two operating leases. The lease term for the Company’s headquarters in New York, New York extends through May 31, 2020. The lease provides for aggregate cash payments ranging over time of approximately $2.5 million per year, paid on a monthly basis, exclusive of escalation charges. In addition, as part of this lease agreement, the Company has provided the landlord a $785,000 irrevocable standby letter of credit fully collateralized by cash. The letter of credit may be drawn upon by the landlord in the event that the Company defaults under certain terms of the lease. In addition, the Company has a lease through December 31, 2021 for its off-site back-up facility located in Rockville Centre, New York, which provides for, among other things, lease payments totaling $32,000 , annually. Corporate Loan The Company has entered into a loan agreement with an entity that originates loans and owns MSRs. The loan is secured by certain Government, Agency and Private-Label MSRs, as well as other unencumbered assets owned by the borrower. Under the terms of the loan agreement, the Company has committed to lend $130.0 million of which approximately $93.9 million was drawn at March 31, 2017 .

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity ( a ) Preferred Stock Issuance of 7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) On April 15, 2013, the Company completed the issuance of 8.0 million shares of its Series B Preferred Stock with a par value of $0.01 per share, and a liquidation preference of $25.00 per share plus accrued and unpaid dividends, in an underwritten public offering. The Company’s Series B Preferred Stock is entitled to receive a dividend at a rate of 7.50% per year on the $25.00 liquidation preference before the Company’s common stock is paid any dividends and is senior to the Company’s common stock with respect to distributions upon liquidation, dissolution or winding up. Dividends on the Series B Preferred Stock are payable quarterly in arrears on or about March 31, June 30, September 30 and December 31 of each year. The Series B Preferred Stock is redeemable at $25.00 per share plus accrued and unpaid dividends (whether or not authorized or declared) exclusively at the Company’s option commencing on April 15, 2018 (subject to the Company’s right, under limited circumstances, to redeem the Series B Preferred Stock prior to that date in order to preserve its qualification as a REIT) and upon certain specified change in control transactions in which the Company’s common stock and the acquiring or surviving entity common securities would not be listed on the New York Stock Exchange (the “NYSE”), the NYSE MKT or NASDAQ, or any successor exchange. The Series B Preferred Stock generally does not have any voting rights, subject to an exception in the event the Company fails to pay dividends on such stock for six or more quarterly periods (whether or not consecutive). Under such circumstances, the Series B Preferred Stock will be entitled to vote to elect two additional directors to the Company’s Board of Directors (the “Board”), until all unpaid dividends have been paid or declared and set apart for payment. In addition, certain material and adverse changes to the terms of the Series B Preferred Stock cannot be made without the affirmative vote of holders of at least 66 2/3% of the outstanding shares of Series B Preferred Stock. The following table presents cash dividends declared by the Company on its Series B Preferred Stock from January 1, 2017 through March 31, 2017 : Declaration Date Record Date Payment Date Dividend Per Share February 17, 2017 March 6, 2017 March 31, 2017 $ 0.46875 ( b ) Dividends on Common Stock The following table presents cash dividends declared by the Company on its common stock from January 1, 2017 through March 31, 2017 : Declaration Date (1) Record Date Payment Date Dividend Per Share March 8, 2017 March 29, 2017 April 28, 2017 $ 0.20 (1) (1) At March 31, 2017 , the Company had accrued dividends and dividend equivalents payable of $74.8 million related to the common stock dividend declared on March 8, 2017 . ( c ) Discount Waiver, Direct Stock Purchase and Dividend Reinvestment Plan (“DRSPP”) On September 16, 2016, the Company filed a shelf registration statement on Form S-3 with the SEC under the Securities Act of 1933, as amended (the “1933 Act”), for the purpose of registering additional common stock for sale through its DRSPP. Pursuant to Rule 462(e) of the 1933 Act, this shelf registration statement became effective automatically upon filing with the SEC and, when combined with the unused portion of the Company’s previous DRSPP shelf registration statements, registered an aggregate of 15 million shares of common stock. The Company’s DRSPP is designed to provide existing stockholders and new investors with a convenient and economical way to purchase shares of common stock through the automatic reinvestment of dividends and/or optional cash investments. At March 31, 2017 , 14.0 million shares of common stock remained available for issuance pursuant to the DRSPP shelf registration statement. During the three months ended March 31, 2017 , the Company issued 514,324 shares of common stock through the DRSPP, raising net proceeds of approximately $4.0 million . From the inception of the DRSPP in September 2003 through March 31, 2017 , the Company issued 31,897,109 shares pursuant to the DRSPP, raising net proceeds of $266.9 million . ( d ) Stock Repurchase Program As previously disclosed, in August 2005, the Company’s Board authorized a stock repurchase program (the “Repurchase Program”) to repurchase up to 4.0 million shares of its outstanding common stock. The Board reaffirmed such authorization in May 2010. In December 2013, the Board increased the number of shares authorized under the Repurchase Program to an aggregate of 10.0 million . Such authorization does not have an expiration date and, at present, there is no intention to modify or otherwise rescind such authorization. Subject to applicable securities laws, repurchases of common stock under the Repurchase Program are made at times and in amounts as the Company deems appropriate, (including, in our discretion, through the use of one or more plans adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “1934 Act”)) using available cash resources. Shares of common stock repurchased by the Company under the Repurchase Program are cancelled and, until reissued by the Company, are deemed to be authorized but unissued shares of the Company’s common stock. The Repurchase Program may be suspended or discontinued by the Company at any time and without prior notice. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2017 . At March 31, 2017 , 6,616,355 shares remained authorized for repurchase under the Repurchase Program. ( e ) Accumulated Other Comprehensive Income/(Loss) The following table presents changes in the balances of each component of the Company’s AOCI for the three months ended March 31, 2017 : Three Months Ended (In Thousands) Net Unrealized Gain/(Loss) on AFS Securities Net (Loss)/Gain on Swaps Total AOCI Balance at beginning of period $ 620,403 $ (46,721 ) $ 573,682 OCI before reclassifications 19,469 11,897 31,366 Amounts reclassified from AOCI (1) (10,385 ) — (10,385 ) Net OCI during the period (2) 9,084 11,897 20,981 Balance at end of period $ 629,487 $ (34,824 ) $ 594,663 (1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss). The following table presents changes in the balances of each component of the Company’s AOCI for the three months ended March 31, 2016 : Three Months Ended (In Thousands) Net Unrealized Net on Swaps Total AOCI Balance at beginning of period $ 585,250 $ (69,399 ) $ 515,851 OCI before reclassifications (45,614 ) (49,342 ) (94,956 ) Amounts reclassified from AOCI (1) (10,485 ) — (10,485 ) Net OCI during the period (2) (56,099 ) (49,342 ) (105,441 ) Balance at end of period $ 529,151 $ (118,741 ) $ 410,410 (1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss). The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three months ended March 31, 2017 : Three Months Ended Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statement (In Thousands) AFS Securities: Realized gain on sale of securities $ (9,971 ) Net gain on sales of MBS and U.S. Treasury securities OTTI recognized in earnings (414 ) Net impairment losses recognized in earnings Total AFS Securities $ (10,385 ) Total reclassifications for period $ (10,385 ) The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three months ended March 31, 2016 : Three Months Ended Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statement (In Thousands) AFS Securities: Realized gain on sale of securities $ (10,485 ) Net gain on sales of MBS and U.S. Treasury securities OTTI recognized in earnings — Net impairment losses recognized in earnings Total AFS Securities $ (10,485 ) Total reclassifications for period $ (10,485 ) At March 31, 2017 and December 31, 2016 , the Company had unrealized losses recorded in AOCI of approximately $872,000 and $1.7 million , respectively, on securities for which OTTI had been recognized in earnings in prior periods.

EPS Calculation

EPS Calculation	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
EPS Calculation	EPS Calculation The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands, Except Per Share Amounts) 2017 2016 Numerator: Net income $ 78,060 $ 78,070 Dividends declared on preferred stock (3,750 ) (3,750 ) Dividends, dividend equivalents and undistributed earnings allocated to participating securities (431 ) (395 ) Net income to common stockholders - basic and diluted $ 73,879 $ 73,925 Denominator: Weighted average common shares for basic and diluted earnings per share (1) 372,579 370,942 Basic and diluted earnings per share $ 0.20 $ 0.20 (1) At March 31, 2017 , the Company had an aggregate of 2.3 million equity instruments outstanding that were not included in the calculation of diluted EPS for the three months ended March 31, 2017 , as their inclusion would have been anti-dilutive. These equity instruments were comprised of approximately 22,000 shares of restricted common stock with a weighted average grant date fair value of $7.12 and approximately 2.3 million RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $6.50 . These equity instruments may have a dilutive impact on future EPS.

Equity Compensation, Employment

Equity Compensation, Employment Agreements and Other Benefit Plans	3 Months Ended
	Mar. 31, 2017
Compensation Related Costs [Abstract]
Equity Compensation, Employment Agreements and Other Benefit Plans	Equity Compensation, Employment Agreements and Other Benefit Plans ( a ) Equity Compensation Plan In accordance with the terms of the Company’s Equity Compensation Plan (the “Equity Plan”), which was adopted by the Company’s stockholders on May 21, 2015 (and which amended and restated the Company’s 2010 Equity Compensation Plan), directors, officers and employees of the Company and any of its subsidiaries and other persons expected to provide significant services for the Company and any of its subsidiaries are eligible to receive grants of stock options (“Options”), restricted stock, RSUs, dividend equivalent rights and other stock-based awards under the Equity Plan. Subject to certain exceptions, stock-based awards relating to a maximum of 12.0 million shares of common stock may be granted under the Equity Plan; forfeitures and/or awards that expire unexercised do not count towards this limit. At March 31, 2017 , approximately 7.1 million shares of common stock remained available for grant in connection with stock-based awards under the Equity Plan. A participant may generally not receive stock-based awards in excess of 1.5 million shares of common stock in any one year and no award may be granted to any person who, assuming exercise of all Options and payment of all awards held by such person, would own or be deemed to own more than 9.8% of the outstanding shares of the Company’s common stock. Unless previously terminated by the Board, awards may be granted under the Equity Plan until May 20, 2025. Restricted Stock Units Under the terms of the Equity Plan, RSUs are instruments that provide the holder with the right to receive, subject to the satisfaction of conditions set by the Compensation Committee of the Board (the “Compensation Committee”) at the time of grant, a payment of a specified value, which may be a share of the Company’s common stock, the fair market value of a share of the Company’s common stock, or such fair market value to the extent in excess of an established base value, on the applicable settlement date. Although the Equity Plan permits the Company to issue RSUs that can settle in cash, all of the Company’s outstanding RSUs as of March 31, 2017 are designated to be settled in shares of the Company’s common stock. The Company granted 758,750 and 615,000 RSUs during the three months ended March 31, 2017 and 2016 , respectively. There were no RSUs forfeited during the three months ended March 31, 2017 . During the three months ended March 31, 2016 an aggregate of 10,000 RSUs were forfeited. All RSUs outstanding at March 31, 2017 may be entitled to receive dividend equivalent payments depending on the terms and conditions of the award either in cash at the time dividends are paid by the Company, or for certain performance-based RSU awards, as a grant of stock at the time such awards are settled. At March 31, 2017 and December 31, 2016 , the Company had unrecognized compensation expense of $7.8 million and $3.6 million , respectively, related to RSUs. The unrecognized compensation expense at March 31, 2017 is expected to be recognized over a weighted average period of 2.3 years . Restricted Stock The Company did no t award any shares of restricted common stock during the three months ended March 31, 2017 and 2016 . At March 31, 2017 and December 31, 2016 , the Company had unrecognized compensation expense of approximately $153,000 and $203,000 , respectively, related to the unvested shares of restricted common stock. The Company had accrued dividends payable of approximately $40,000 and $55,000 on unvested shares of restricted stock at March 31, 2017 and December 31, 2016 , respectively. The unrecognized compensation expense at March 31, 2017 is expected to be recognized over a weighted average period of nine months . Dividend Equivalents A dividend equivalent is a right to receive a distribution equal to the dividend distributions that would be paid on a share of the Company’s common stock. Dividend equivalents may be granted as a separate instrument or may be a right associated with the grant of another award (e.g., an RSU) under the Equity Plan, and they are paid in cash or other consideration at such times and in accordance with such rules, as the Compensation Committee shall determine in its discretion. Payments made on the Company’s outstanding dividend equivalent rights that have been granted as a separate instrument are charged to Stockholders’ Equity when common stock dividends are declared to the extent that such equivalents are expected to vest. The Company did not make any payments in respect of such instruments during the three months ended March 31, 2017 and made payments of approximately $1,600 in respect of such separate instruments during the three months ended March 31, 2016 . At March 31, 2017 , there were no dividend equivalent rights outstanding, which had been awarded separately from, but in connection with, grants of RSUs made in prior years. Options The Company did not grant any stock options during the three months ended March 31, 2017 and 2016 . At March 31, 2017 , the Company had no stock options outstanding. Expense Recognized for Equity-Based Compensation Instruments The following table presents the Company’s expenses related to its equity-based compensation instruments for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 RSUs $ 1,056 $ 960 Restricted shares of common stock 50 152 Dividend equivalent rights — 22 Total $ 1,106 $ 1,134 ( b ) Employment Agreements At March 31, 2017 , the Company had employment agreements with four of its officers, with varying terms that provide for, among other things, base salary, bonus and change-in-control payments upon the occurrence of certain triggering events. ( c ) Deferred Compensation Plans The Company administers deferred compensation plans for its senior officers and non-employee directors (collectively, the “Deferred Plans”), pursuant to which participants may elect to defer up to 100% of certain cash compensation. The Deferred Plans are designed to align participants’ interests with those of the Company’s stockholders. Amounts deferred under the Deferred Plans are considered to be converted into “stock units” of the Company. Stock units do not represent stock of the Company, but rather are a liability of the Company that changes in value as would equivalent shares of the Company’s common stock. Deferred compensation liabilities are settled in cash at the termination of the deferral period, based on the value of the stock units at that time. The Deferred Plans are non-qualified plans under the Employee Retirement Income Security Act of 1974 and, as such, are not funded. Prior to the time that the deferred accounts are settled, participants are unsecured creditors of the Company. The Company’s liability for stock units in the Deferred Plans is based on the market price of the Company’s common stock at the measurement date. The following table presents the Company’s expenses related to its Deferred Plans for its non-employee directors and senior officers for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 Non-employee directors $ 114 $ 49 Total $ 114 $ 49 The following table presents the aggregate amount of income deferred by participants of the Deferred Plans through March 31, 2017 and December 31, 2016 that had not been distributed and the Company’s associated liability for such deferrals at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Undistributed Income Deferred (1) Liability Under Deferred Plans Undistributed Income Deferred (1) Liability Under Deferred Plans Non-employee directors $ 1,208 $ 1,519 $ 1,066 $ 1,263 Total $ 1,208 $ 1,519 $ 1,066 $ 1,263 (1) Represents the cumulative amounts that were deferred by participants through March 31, 2017 and December 31, 2016 , which had not been distributed through such respective date. ( d ) Savings Plan The Company sponsors a tax-qualified employee savings plan (the “Savings Plan”) in accordance with Section 401(k) of the Code. Subject to certain restrictions, all of the Company’s employees are eligible to make tax-deferred contributions to the Savings Plan subject to limitations under applicable law. Participant’s accounts are self-directed and the Company bears the costs of administering the Savings Plan. The Company matches 100% of the first 3% of eligible compensation deferred by employees and 50% of the next 2% , subject to a maximum as provided by the Code. The Company has elected to operate the Savings Plan under the applicable safe harbor provisions of the Code, whereby among other things, the Company must make contributions for all participating employees and all matches contributed by the Company immediately vest 100% . For the three months ended March 31, 2017 and 2016 , the Company recognized expenses for matching contributions of $87,500 and $86,000 , respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of valuation hierarchy are defined as follows: Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following describes the valuation methodologies used for the Company’s financial instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Securities Obtained and Pledged as Collateral/Obligation to Return Securities Obtained as Collateral The fair value of U.S. Treasury securities obtained as collateral and the associated obligation to return securities obtained as collateral are based upon prices obtained from a third-party pricing service, which are indicative of market activity. Securities obtained as collateral are classified as Level 1 in the fair value hierarchy. MBS and CRT Securities The Company determines the fair value of its Agency MBS, based upon prices obtained from third-party pricing services, which are indicative of market activity and repurchase agreement counterparties. For Agency MBS, the valuation methodology of the Company’s third-party pricing services incorporate commonly used market pricing methods, trading activity observed in the marketplace and other data inputs. The methodology also considers the underlying characteristics of each security, which are also observable inputs, including: collateral vintage, coupon, maturity date, loan age, reset date, collateral type, periodic and life cap, geography, and prepayment speeds. Management analyzes pricing data received from third-party pricing services and compares it to other indications of fair value including data received from repurchase agreement counterparties and its own observations of trading activity observed in the marketplace. In determining the fair value of its Non-Agency MBS and CRT securities, management considers a number of observable market data points, including prices obtained from pricing services and brokers as well as dialogue with market participants. In valuing Non-Agency MBS, the Company understands that pricing services use observable inputs that include, in addition to trading activity observed in the marketplace, loan delinquency data, credit enhancement levels and vintage, which are taken into account to assign pricing factors such as spread and prepayment assumptions. For tranches of Legacy Non-Agency MBS that are cross-collateralized, performance of all collateral groups involved in the tranche are considered. The Company collects and considers current market intelligence on all major markets, including benchmark security evaluations and bid-lists from various sources, when available. The Company’s Legacy Non-Agency MBS, 3 Year Step-up securities backed by re-performing and non-performing loans and CRT securities are valued using various market data points as described above, which management considers directly or indirectly observable parameters. Accordingly, these securities are classified as Level 2 in the fair value hierarchy. The Company’s 3 Year Step-up securities reflecting investments in term notes backed by MSR-related collateral are valued using a similar process to Non-Agency MBS and CRT Securities. However, as the valuation of these securities requires certain significant unobservable inputs, the securities are classified as Level 3 in the fair value hierarchy. Residential Whole Loans, at Fair Value The Company determines the fair value of its residential whole loans held at fair value after considering valuations obtained from a third-party who specializes in providing valuations of residential mortgage loans trading activity observed in the marketplace. The Company’s residential whole loans held at fair value are classified as Level 3 in the fair value hierarchy. Swaps The Company determines the fair value of non-centrally cleared Swaps by considering valuations obtained from a third-party pricing service. For Swaps that are cleared by a central clearing house, valuations provided by the clearing house are used. All valuations obtained are tested with internally developed models that apply readily observable market parameters. The Company considers the creditworthiness of both the Company and its counterparties, along with collateral provisions contained in each derivative agreement, from the perspective of both the Company and its counterparties. All of the Company’s Swaps are subject either to bilateral collateral arrangements, or for cleared Swaps, to the clearing house’s margin requirements. Consequently, no credit valuation adjustment was made in determining the fair value of such instruments. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap. Swaps are classified as Level 2 in the fair value hierarchy. The following tables present the Company’s financial instruments carried at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , on the consolidated balance sheets by the valuation hierarchy, as previously described: Fair Value at March 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Total Assets: Agency MBS $ — $ 3,494,614 $ — $ 3,494,614 Non-Agency MBS — 5,185,846 282,332 5,468,178 CRT securities — 498,067 — 498,067 Securities obtained and pledged as collateral 371,333 — — 371,333 Residential whole loans, at fair value — — 775,152 775,152 Swaps — 119 — 119 Total assets carried at fair value $ 371,333 $ 9,178,646 $ 1,057,484 $ 10,607,463 Liabilities: Swaps $ — $ — $ — $ — Obligation to return securities obtained as collateral 510,733 — — 510,733 Total liabilities carried at fair value $ 510,733 $ — $ — $ 510,733 Fair Value at December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Total Assets: Agency MBS $ — $ 3,738,497 $ — $ 3,738,497 Non-Agency MBS, including MBS transferred to consolidated VIEs — 5,825,816 — 5,825,816 CRT securities — 404,850 — 404,850 Securities obtained and pledged as collateral 510,767 — — 510,767 Residential whole loans, at fair value — — 814,682 814,682 Swaps — 233 — 233 Total assets carried at fair value $ 510,767 $ 9,969,396 $ 814,682 $ 11,294,845 Liabilities: Swaps $ — $ 46,954 $ — $ 46,954 Obligation to return securities obtained as collateral 510,767 — — 510,767 Total liabilities carried at fair value $ 510,767 $ 46,954 $ — $ 557,721 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis The following table presents additional information for the three months ended March 31, 2017 and 2016 about the Company’s Residential whole loans, at fair value, which are classified as Level 3 and measured at fair value on a recurring basis: Residential Whole Loans, at Fair Value Three Months Ended March 31, (In Thousands) 2017 2016 Balance at beginning of period $ 814,682 $ 623,276 Purchases and capitalized advances 5,333 53,590 Changes in fair value recorded in Net gain on residential whole loans held at fair value 2,948 6,226 Collection of principal, net of liquidation gains/losses (20,043 ) (14,602 ) Repurchases (306 ) — Transfer to REO (27,462 ) (21,130 ) Balance at end of period $ 775,152 $ 647,360 The following table presents additional information for the three months ended March 31, 2017 and 2016 about the Company’s investments in term notes backed by MSR-related collateral held at fair value, which are classified as Level 3 and measured at fair value on a recurring basis: Term Notes Backed by MSR-Related Collateral Three Months Ended March 31, (In Thousands) 2017 2016 Balance at beginning of period $ — $ — Purchases 150,000 — Collection of principal (8,648 ) — Transfers from Level 2 to Level 3 (1) 140,980 — Balance at end of period $ 282,332 $ — (1) Investments in term notes backed by MSR-related collateral were transferred from Level 2 to Level 3 during the three months ended March 31, 2017 as there has been very limited secondary market trading in these securities since issuance. Transfers between levels are deemed to take place on the first day of the reporting period in which the transfer has taken place. The Company did not transfer any assets or liabilities from one level to another during the three months ended March 31, 2016 . Fair Value Methodology for Level 3 Financial Instruments Residential Whole Loans, at Fair Value The following table presents a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Company’s residential whole loans held at fair value for which it has utilized Level 3 inputs to determine fair value as of March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in Thousands) Fair Value (1) Valuation Technique Unobservable Input Weighted Average (2) Range Residential whole loans, at fair value $ 267,878 Discounted cash flow Discount rate 6.6 % 5.0-7.7% Prepayment rate 7.8 % 0.0-12.3% Default rate 3.2 % 0.0-10.1% Loss severity 12.8 % 0.0-100.0% $ 507,274 Liquidation model Discount rate 7.7 % 6.2-26.9% Annual change in home prices 1.9 % (5.0)-10.7% Liquidation timeline (in years) 1.5 0.1-4.4 Current value of underlying properties (3) $ 641 $15-$4,900 Total $ 775,152 December 31, 2016 (Dollars in Thousands) Fair Value (1) Valuation Technique Unobservable Input Weighted Average (2) Range Residential whole loans, at fair value $ 253,287 Discounted cash flow Discount rate 6.6 % 5.0-7.7% Prepayment rate 7.6 % 0.0-12.0% Default rate 2.9 % 0.0-9.7% Loss severity 13.0 % 0.0-77.5% $ 516,014 Liquidation model Discount rate 7.7 % 6.8-26.9% Annual change in home prices 1.7 % (9.2)-7.7% Liquidation timeline (in years) 1.6 0.1-4.4 Current value of underlying properties (3) $ 634 $5-$4,900 Total $ 769,301 (1) Excludes approximately zero and $45.4 million of loans for which management considers the purchase price continues to reflect the fair value of such loans at March 31, 2017 and December 31, 2016 , respectively. (2) Amounts are weighted based on the fair value of the underlying loan. (3) The simple average value of the properties underlying residential whole loans held at fair value valued via a liquidation model was approximately $340,000 and $320,000 as of March 31, 2017 and December 31, 2016 , respectively. The following table presents the difference between the fair value and the aggregate unpaid principal balance of the Company’s residential whole loans for which the fair value option was elected, at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Fair Value Unpaid Principal Balance Difference Fair Value Unpaid Principal Balance Difference Residential whole loans, at fair value Total loans $ 775,152 $ 907,311 $ (132,159 ) $ 814,682 $ 966,174 $ (151,492 ) Loans 90 days or more past due $ 523,637 $ 626,554 $ (102,917 ) $ 570,025 $ 695,282 $ (125,257 ) Term Notes Backed by MSR-Related Collateral The Company’s valuation process for term notes backed by MSR-related collateral considers a number of factors, including a comparable bond analysis performed by a third party pricing service which involves determining a pricing spread at issuance of the term note. The pricing spread is used at each subsequent valuation date to determine an implied yield to maturity of the term note, which is used to derive an indicative market value for the security. This indicative market value is further reviewed by the Company and may be adjusted to ensure it reflects a realistic exit price at the valuation date given the structural features of these securities. At March 31, 2017, the implied yields used in the valuation of these securities ranged from 4.0% to 6.6% . The weighted average yield to maturity was 5.25% . Other factors taken into consideration include indicative values provided by repurchase agreement counterparties, estimated changes in fair value of the related underlying MSR collateral and the financial performance of the ultimate parent or sponsoring entity of the issuer, who has provided a guarantee that is intended to provide for payment of interest and principal to the holders of the term notes should cash flows generated by the related underlying MSR collateral be insufficient. Changes to the valuation methodologies used with respect to the Company’s financial instruments are reviewed by management to ensure any such changes result in appropriate exit price valuations. The Company will refine its valuation methodologies as markets and products develop and pricing methodologies evolve. The methods described above may produce fair value estimates that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those used by market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may include periods of market dislocation, during which price transparency may be reduced. The Company reviews the classification of its financial instruments within the fair value hierarchy on a quarterly basis, and management may conclude that its financial instruments should be reclassified to a different level in the future. The following table presents the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (In Thousands) Financial Assets: Agency MBS $ 3,494,614 $ 3,494,614 $ 3,738,497 $ 3,738,497 Non-Agency MBS, including MBS transferred to consolidated VIEs 5,468,178 5,468,178 5,825,816 5,825,816 CRT securities 498,067 498,067 404,850 404,850 Securities obtained and pledged as collateral 371,333 371,333 510,767 510,767 Residential whole loans, at carrying value 573,715 608,209 590,540 621,548 Residential whole loans, at fair value 775,152 775,152 814,682 814,682 Cash and cash equivalents 421,572 421,572 260,112 260,112 Restricted cash 10,980 10,980 58,463 58,463 Corporate loan 93,002 93,002 85,800 85,800 Swaps 119 119 233 233 Financial Liabilities (1) : Repurchase agreements 8,137,102 8,137,251 8,472,268 8,472,078 FHLB advances — — 215,000 215,000 Obligation to return securities obtained as collateral 510,733 510,733 510,767 510,767 Senior Notes 96,743 100,591 96,733 101,111 Swaps — — 46,954 46,954 (1) Carrying value of Senior Notes and certain repurchase agreements is net of associated debt issuance costs. In addition to the methodologies used to determine the fair value of the Company’s financial assets and liabilities reported at fair value on a recurring basis discussed on pages 41-45, the following methods and assumptions were used by the Company in arriving at the fair value of the Company’s other financial instruments presented in the above table that are not reported at fair value on a recurring basis: Residential Whole Loans at Carrying Value: The Company determines the fair value of its residential whole loans held at carrying value after considering portfolio valuations obtained from a third-party who specializes in providing valuations of residential mortgage loans and trading activity observed in the market place. The Company’s residential whole loans held at carrying value are classified as Level 3 in the fair value hierarchy. Cash and Cash Equivalents and Restricted Cash: Cash and cash equivalents and restricted cash are comprised of cash held in overnight money market investments and demand deposit accounts. At March 31, 2017 and December 31, 2016 , the Company’s money market funds were invested in securities issued by the U.S. Government, or its agencies, instrumentalities, and sponsored entities, and repurchase agreements involving the securities described above. Given the overnight term and assessed credit risk, the Company’s investments in money market funds are determined to have a fair value equal to their carrying value. Corporate Loan: The Company determines the fair value of this loan after considering recent past and expected future loan performance, recent financial performance of the borrower and estimates of the current value of the underlying collateral, which includes certain MSRs and other assets of the borrower that are pledged to secure the borrowing. The Company’s investment in this term loan is classified as Level 3 in the fair value hierarchy. Repurchase Agreements: The fair value of repurchase agreements reflects the present value of the contractual cash flows discounted at market interest rates at the valuation date for repurchase agreements with a term equivalent to the remaining term to interest rate repricing, which may be at maturity. Such interest rates are estimated based on LIBOR rates observed in the market. The Company’s repurchase agreements are classified as Level 2 in the fair value hierarchy. FHLB Advance s: As previously discussed, the Company did not have any FHLB advances as of March 31, 2017 . FHLB advances at December 31, 2016 reflected collateralized borrowings at variable market interest rates that reset on a monthly basis. Accordingly, the carrying amount of FHLB advances were considered to approximate fair value. The Company’s FHLB advances at December 31, 2016 were classified as Level 2 in the fair value hierarchy. Senior Notes: The fair value of the Senior Notes is determined using the end of day market price quoted on the NYSE at the reporting date. The Company’s Senior Notes are classified as Level 1 in the fair value hierarchy. The Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs. At March 31, 2017 and December 31, 2016 , the Company’s REO had an aggregate carrying value of $98.7 million and $80.5 million , and an aggregate estimated fair value of $112.7 million and $91.1 million , respectively. The Company’s REO is classified as Level 3 in the fair value hierarchy.

Use of Special Purpose Entities

Use of Special Purpose Entities and Variable Interest Entities	3 Months Ended
	Mar. 31, 2017
Use of Special Purpose Entities and Variable Interest Entities
Use of Special Purpose Entities and Variable Interest Entities	Use of Special Purpose Entities and Variable Interest Entities A Special Purpose Entity (“SPE”) is an entity designed to fulfill a specific limited need of the company that organized it. SPEs are often used to facilitate transactions that involve securitizing financial assets or resecuritizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to a SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business, through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and, depending on the overall structure of the transaction, may benefit from various forms of credit enhancement such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. Resecuritization Transactions The Company has in prior years entered into several resecuritization transactions that resulted in the Company consolidating as VIEs the SPEs that were created to facilitate the transactions and to which the underlying assets in connection with the resecuritizations were transferred. See Note 2 ( r ) for a discussion of the accounting policies applied to the consolidation of VIEs and transfers of financial assets in connection with resecuritization transactions. The Company has engaged in resecuritization transactions primarily for the purpose of obtaining non-recourse financing on a portion of its Non-Agency MBS portfolio, as well as refinancing a portion of its Non-Agency MBS portfolio on improved terms. Notwithstanding the Company’s participation in these transactions, the risks facing the Company are largely unchanged as the Company remains economically exposed to the first loss position on the underlying MBS transferred to the VIEs. The activities that can be performed by an entity created to facilitate a resecuritization transaction are generally specified in the entity’s formation documents. Those documents do not permit the entity, any beneficial interest holder in the entity, or any other party associated with the entity to cause the entity to sell or replace the assets held by the entity, or limit such ability to when specific events of default occur. The Company concluded that the entities created to facilitate these resecuritization transactions are VIEs. The Company then completed an analysis of whether each VIE created to facilitate the resecuritization transaction should be consolidated by the Company, based on consideration of its involvement in each VIE, including the design and purpose of the SPE, and whether its involvement reflected a controlling financial interest that resulted in the Company being deemed the primary beneficiary of each VIE. In determining whether the Company would be considered the primary beneficiary, the following factors were assessed: • Whether the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE; and • Whether the Company has a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. Based on its evaluation of the factors discussed above, including its involvement in the purpose and design of the entity, the Company determined that it was required to consolidate each VIE created to facilitate these resecuritization transaction. During the first quarter of 2017, the Company entered into a transaction to exchange the remaining beneficial interests issued by the WFMLT 2012-RR1 (the “Trust”) and held by the Company for the underlying securities that had previously been transferred to and held by the Trust. Following the completion of this transaction, the remaining beneficial interests were cancelled and the Trust was terminated . For financial reporting purposes, the exchange transaction and termination of this financing structure did not result in any gain or loss to the Company as this resecuritization was accounted for as a financing transaction. However, for purposes of determining REIT taxable income, this resecuritization transaction was originally accounted for as a sale of the underlying securities to the Trust and acquisition of beneficial interests issued by the Trust. Because the fair value of the underlying securities received exceeded the Company’s tax basis in the remaining beneficial interests at the exchange date, the unwind of this resecuritization structure resulted in the Company recognizing taxable income currently estimated to be approximately $47.1 million or $0.13 per common share. In addition, the underlying securities originally transferred as part of this resecuritization are reported as Non-Agency MBS in the Company’s consolidated balance sheets at March 31, 2017 and interest income from the underlying securities from the date of exchange transaction through March 31, 2017 is reported as Interest income from Non-Agency MBS in the Company’s consolidated statements of operations. As of March 31, 2017 the Company did not have any Non-Agency MBS that were resecuritized as described above. At December 31, 2016 , the aggregate fair value of the Non-Agency MBS that were resecuritized as described above was $174.4 million . These assets were included in the Company’s consolidated balance sheets and disclosed as “Non-Agency MBS transferred to consolidated VIEs, at fair value.” Prior to the completion of the Company’s first resecuritization transaction in October 2010, the Company had not transferred assets to VIEs or QSPEs and other than acquiring MBS issued by such entities, had no other involvement with VIEs or QSPEs. Residential Whole Loans Included on the Company’s consolidated balance sheets as of March 31, 2017 and December 31, 2016 are a total of $1.3 billion and $1.4 billion of residential whole loans, of which approximately $573.7 million and $590.5 million are reported at carrying value and $775.2 million and $814.7 million are reported at fair value, respectively. The inclusion of these assets arises from the Company’s 100% equity interest in certain trusts established to acquire the loans. Based on its evaluation of its 100% interest in these trusts and other factors, the Company has determined that the trusts are required to be consolidated for financial reporting purposes. During the three months ended March 31, 2017 and 2016 , the Company recognized interest income from residential whole loans reported at carrying value of approximately $8.7 million and $4.4 million , respectively, which is included in Interest Income on the Company’s consolidated statements of operations. In addition, the Company recognized net gains on residential whole loans held at fair value during the three months ended March 31, 2017 and 2016 of approximately $13.8 million and $12.3 million , respectively, which amounts are included in Other Income, net on the Company’s consolidated statements of operations. (See Note 4 )

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The interim unaudited consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted according to these SEC rules and regulations. Management believes that the disclosures included in these interim unaudited consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2017 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2017 should not be construed as indicative of the results to be expected for the full year. The accompanying consolidated financial statements of the Company have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could differ from those estimates, which could materially impact the Company’s results of operations and its financial condition. Management has made significant estimates in several areas, including other-than-temporary impairment (“OTTI”) on MBS (See Note 3 ), valuation of MBS and CRT securities (See Notes 3 and 15 ), income recognition and valuation of residential whole loans (See Notes 4 and 15 ), valuation of derivative instruments (See Notes 5 ( c ) and 15 ) and income recognition on certain Non-Agency MBS (defined below) purchased at a discount. (See Note 3 ) In addition, estimates are used in the determination of taxable income used in the assessment of REIT compliance and contingent liabilities for related taxes, penalties and interest. (See Note 2 ( o )) Actual results could differ from those estimates. The Company has one reportable segment as it manages its business and analyzes and reports its results of operations on the basis of one operating segment; investing, on a leveraged basis, in residential mortgage assets. The consolidated financial statements of the Company include the accounts of all subsidiaries; all intercompany accounts and transactions have been eliminated. In addition, the Company consolidates certain trusts established related to the acquisition of residential whole loans. Certain prior period amounts have been reclassified to conform to the current period presentation.
MBS (including Non-Agency MBS transferred to a consolidated VIEs) and CRT Securities	MBS (including Non-Agency MBS transferred to consolidated VIEs) and CRT Securities The Company has investments in residential MBS that are issued or guaranteed as to principal and/or interest by a federally chartered corporation, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. Government, such as the Government National Mortgage Association (“Ginnie Mae”) (collectively, “Agency MBS”), and residential MBS that are not guaranteed by any agency of the U.S. Government or any federally chartered corporation (“Non-Agency MBS”). In addition, the Company has investments in CRT securities that are issued by Fannie Mae and Freddie Mac. The coupon payments on CRT securities are paid by Fannie Mae and Freddie Mac and the principal payments received are based on the performance of loans in a reference pool of previously securitized MBS. As the loans in the underlying reference pool are paid, the principal balance of the CRT securities is paid. As an investor in a CRT security, the Company may incur a loss if certain defined credit events occur, including, for certain CRT securities, if the loans in the reference pool experience delinquencies exceeding specified thresholds. Designation The Company generally intends to hold its MBS until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, all of the Company’s MBS are designated as “available-for-sale” (“AFS”) and, accordingly, are carried at their fair value with unrealized gains and losses excluded from earnings (except when an OTTI is recognized, as discussed below) and reported in Accumulated other comprehensive income/(loss) (“AOCI”), a component of Stockholders’ Equity. Upon the sale of an AFS security, any unrealized gain or loss is reclassified out of AOCI to earnings as a realized gain or loss using the specific identification method. The Company has elected the fair value option for certain of its CRT securities as it considers this method of accounting to more appropriately reflect the risk sharing structure of these securities. Such securities are carried at their fair value with changes in fair value included in earnings for the period and reported in Other Income, net on the Company’s consolidated statement of operations. Revenue Recognition, Premium Amortization and Discount Accretion Interest income on securities is accrued based on the outstanding principal balance and their contractual terms. Premiums and discounts associated with Agency MBS and Non-Agency MBS assessed as high credit quality at the time of purchase are amortized into interest income over the life of such securities using the effective yield method. Adjustments to premium amortization are made for actual prepayment activity. Interest income on the Non-Agency MBS that were purchased at a discount to par value and/or are considered to be of less than high credit quality is recognized based on the security’s effective interest rate which is the security’s internal rate of return (“IRR”). The IRR is determined using management’s estimate of the projected cash flows for each security, which are based on the Company’s observation of current information and events and include assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the IRR/ interest income recognized on these securities or in the recognition of OTTIs. (See Note 3 ) Based on the projected cash flows from the Company’s Non-Agency MBS purchased at a discount to par value, a portion of the purchase discount may be designated as non-accretable purchase discount (“Credit Reserve”), which effectively mitigates the Company’s risk of loss on the mortgages collateralizing such MBS and is not expected to be accreted into interest income. The amount designated as Credit Reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a Credit Reserve is more favorable than forecasted, a portion of the amount designated as Credit Reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a Credit Reserve is less favorable than forecasted, the amount designated as Credit Reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. Determination of Fair Value for MBS and CRT Securities In determining the fair value of the Company’s MBS and CRT securities, management considers a number of observable market data points, including prices obtained from pricing services, brokers and repurchase agreement counterparties, dialogue with market participants, as well as management’s observations of market activity. (See Note 15 ) Impairments/OTTI When the fair value of an AFS security is less than its amortized cost at the balance sheet date, the security is considered impaired. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary.” If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then the Company must recognize an OTTI through charges to earnings equal to the entire difference between the investment’s amortized cost and its fair value at the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the OTTI related to credit losses is recognized through charges to earnings with the remainder recognized through AOCI on the consolidated balance sheets. Impairments recognized through other comprehensive income/(loss) (“OCI”) do not impact earnings. Following the recognition of an OTTI through earnings, a new cost basis is established for the security and may not be adjusted for subsequent recoveries in fair value through earnings. However, OTTIs recognized through charges to earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an OTTI exists and, if so, the amount of credit impairment recognized in earnings is subjective, as such determinations are based on factual information available at the time of assessment as well as the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of OTTIs constitute material estimates that are susceptible to significant change. (See Note 3 ) Non-Agency MBS that are assessed to be of less than high credit quality and on which impairments are recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. The Company’s estimate of cash flows for its Non-Agency MBS is based on its review of the underlying mortgage loans securing the MBS. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios (“LTVs”), geographic concentrations, as well as reports by credit rating agencies, such as Moody’s Investors Services, Inc. (“Moody’s”), Standard & Poor’s Corporation (“S&P”) or Fitch, Inc. (collectively with Moody’s and S&P, “Rating Agencies”), general market assessments, and dialogue with market participants. As a result, significant judgment is used in the Company’s analysis to determine the expected cash flows for its Non-Agency MBS. In determining the OTTI related to credit losses for securities that were purchased at significant discounts to par and/or are considered to be of less than high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the purchase date (or last date previously revised) against the present value of the cash flows expected to be collected at the current financial reporting date. The discount rate used to calculate the present value of expected future cash flows is the current yield used for income recognition purposes. Impairment assessment for Non-Agency MBS and CRT Securities that were purchased at prices close to par and/or are otherwise considered to be of high credit quality involves comparing the present value of the remaining cash flows expected to be collected against the amortized cost of the security at the assessment date. The discount rate used to calculate the present value of the expected future cash flows is based on the instrument’s IRR. Balance Sheet Presentation The Company’s MBS and CRT Securities pledged as collateral against repurchase agreements, Federal Home Loan Bank advances and Swaps are included on the consolidated balance sheets with the fair value of the securities pledged disclosed parenthetically. Purchases and sales of securities are recorded on the trade date.
Securities Obtained and Pledged as Collateral/Obligation to Return Securities Obtained as Collateral	Securities Obtained and Pledged as Collateral/Obligation to Return Securities Obtained as Collateral The Company has obtained securities as collateral under collateralized financing arrangements in connection with its financing strategy for Non-Agency MBS. Securities obtained as collateral in connection with these transactions are recorded on the Company’s consolidated balance sheets as an asset along with a liability representing the obligation to return the collateral obtained, at fair value. While beneficial ownership of securities obtained remains with the counterparty, the Company has the right to transfer the collateral obtained or to pledge it as part of a subsequent collateralized financing transaction. (See Note 2 ( k ) for Repurchase Agreements and Reverse Repurchase Agreements)
Residential Whole Loans	Residential Whole Loans Residential whole loans included in the Company’s consolidated balance sheets are comprised of pools of fixed and adjustable rate residential mortgage loans acquired through consolidated trusts in secondary market transactions generally at discounted purchase prices. The accounting model utilized by the Company is determined at the time each loan package is initially acquired and is generally based on the delinquency status of the majority of the underlying borrowers in the package at acquisition. The accounting model described below under “Residential Whole Loans at Carrying Value” is typically utilized by the Company for loans where the underlying borrower has a delinquency status of less than 60 days at the acquisition date. The accounting model described below under “Residential Whole Loans at Fair Value” is typically utilized by the Company for loans where the underlying borrower has a delinquency status of 60 days or more at the acquisition date. The accounting model initially applied is not subsequently changed. The Company’s residential whole loans pledged as collateral against repurchase agreements are included in the consolidated balance sheets with amounts pledged disclosed parenthetically. Purchases and sales of residential whole loans are recorded on the trade date, with amounts recorded reflecting management’s current estimate of assets that will be acquired or disposed at the closing of the transaction. This estimate is subject to revision at the closing of the transaction, pending the outcome of due diligence performed prior to closing. Recorded amounts of residential whole loans for which the closing of the purchase transaction is yet to occur are not eligible to be pledged as collateral against any repurchase agreement financing until the closing of the purchase transaction. Residential Whole Loans at Carrying Value Notwithstanding that the majority of these loans are considered to be performing substantially in accordance with their current contractual terms and conditions, the Company has elected to account for these loans as credit impaired as they were acquired at discounted prices that reflect, in part, the impaired credit history of the borrower. Substantially all of the borrowers have previously experienced payment delinquencies and the amount owed on the mortgage loan may exceed the value of the property pledged as collateral. Consequently, the Company has assessed that these loans have a higher likelihood of default than newly originated mortgage loans with LTVs of 80% or less to creditworthy borrowers. The Company believes that amounts paid to acquire these loans represent fair market value at the date of acquisition. Such loans are initially recorded at fair value with no allowance for loan losses. Subsequent to acquisition, the recorded amount reflects the original investment amount, plus accretion of interest income, less principal and interest cash flows received. These loans are presented on the Company’s consolidated balance sheets at carrying value, which reflects the recorded amount reduced by any allowance for loan losses established subsequent to acquisition. Under the application of this accounting model the Company may aggregate into pools loans acquired in the same fiscal quarter that are assessed as having similar risk characteristics. For each pool established, or on an individual loans basis for loans not aggregated into pools, the Company estimates at acquisition and periodically on at least a quarterly basis, the principal and interest cash flows expected to be collected. The difference between the cash flows expected to be collected and the carrying amount of the loans is referred to as the “accretable yield.” This amount is accreted as interest income over the life of the loans using an effective interest rate (level yield) methodology. Interest income recorded each period reflects the amount of accretable yield recognized and not the coupon interest payments received on the underlying loans. The difference between contractually required principal and interest payments and the cash flows expected to be collected is referred to as the “non-accretable difference,” and includes estimates of both the effect of prepayments and expected credit losses over the life of the underlying loans. A decrease in expected cash flows in subsequent periods may indicate impairment at the pool and/or individual loan level, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. The allowance for loan losses represents the present value of cash flows expected at acquisition, adjusted for any increases due to changes in estimated cash flows, that are subsequently no longer expected to be received at the relevant measurement date. A significant increase in expected cash flows in subsequent periods first reduces any previously recognized allowance for loan losses and then will result in a recalculation in the amount of accretable yield. The adjustment of accretable yield due to a significant increase in expected cash flows is accounted for prospectively as a change in estimate and results in reclassification from nonaccretable difference to accretable yield. (See Notes 4 and 16 ) Residential Whole Loans at Fair Value Certain of the Company’s residential whole loans are presented at fair value on its consolidated balance sheets as a result of a fair value election made at time of acquisition. Given the significant uncertainty associated with estimating the timing of and amount of cash flows associated with these loans that will be collected, and that the cash flows ultimately collected may be dependent on the value of the property securing the loan, the Company considers that accounting for these loans at fair value should result in a better reflection over time of the economic returns from these loans. The Company determines the fair value of its residential whole loans held at fair value after considering portfolio valuations obtained from a third-party who specializes in providing valuations of residential mortgage loans and trading activity observed in the market place. Subsequent changes in fair value are reported in current period earnings and presented in Net gain on residential whole loans held at fair value on the Company’s consolidated statements of operations. Cash received reflecting coupon payments on residential whole loans held at fair value is not included in Interest Income, but rather is presented in Net gain on residential whole loans held at fair value on the Company’s consolidated statements of operations. Cash outflows associated with loan related advances made by the Company on behalf of the borrower are included in the basis of the loan and are reflected in Net gain on residential whole loans held at fair value. (See Notes 4 and 15 )
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on deposit with financial institutions and investments in money market funds, all of which have original maturities of three months or less. Cash and cash equivalents may also include cash pledged as collateral to the Company by its repurchase agreement and/or Swap counterparties as a result of reverse margin calls (i.e., margin calls made by the Company). The Company did not hold any cash pledged by its counterparties at March 31, 2017 or December 31, 2016 .
Restricted Cash	Restricted Cash Restricted cash represents the Company’s cash held by its counterparties in connection with certain of the Company’s Swaps and/or repurchase agreements that is not available to the Company for general corporate purposes. Restricted cash may be applied against amounts due to repurchase agreement and/or Swap counterparties, or may be returned to the Company when the related collateral requirements are exceeded or at the maturity of the Swap or repurchase agreement.
Goodwill	Goodwill At March 31, 2017 and December 31, 2016 , the Company had goodwill of $7.2 million , which represents the unamortized portion of the excess of the fair value of its common stock issued over the fair value of net assets acquired in connection with its formation in 1998. Goodwill is tested for impairment at least annually, or more frequently under certain circumstances, at the entity level. Through March 31, 2017 , the Company had not recognized any impairment against its goodwill. Goodwill is included in Other assets on the Company’s consolidated balance sheets.
Real Estate Owned (REO)	Real Estate Owned (“REO”) REO represents real estate acquired by the Company, including through foreclosure, deed in lieu of foreclosure, or purchased in connection with the acquisition of residential whole loans. REO acquired through foreclosure or deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs. REO acquired in connection with the acquisition of residential whole loans is initially recorded at its purchase price. Subsequent to acquisition, REO is reported, at each reporting date, at the lower of the current carrying amount or fair value less estimated selling costs and for presentation purposes is included in Other assets on the Company’s consolidated balance sheets. Changes in fair value that result in an adjustment to the reported amount of an REO property that has a fair value at or below its carrying amount are reported in Other Income, net on the Company’s consolidated statements of operations. (See Note 5 ( a ))
Depreciation	Depreciation Leasehold Improvements and Other Depreciable Assets Depreciation is computed on the straight-line method over the estimated useful life of the related assets or, in the case of leasehold improvements, over the shorter of the useful life or the lease term. Furniture, fixtures, computers and related hardware have estimated useful lives ranging from five to eight years at the time of purchase.
Resecuritization and Other Debt Issuance Costs	Resecuritization and Other Debt Issuance Costs Resecuritization related costs are costs associated with the issuance of beneficial interests by consolidated VIEs and incurred by the Company in connection with various resecuritization transactions completed by the Company. Other debt issuance and related costs include costs incurred by the Company in connection with issuing Senior Notes and certain other repurchase agreement financings. These costs may include underwriting, rating agency, legal, accounting and other fees. Such costs, which reflect deferred charges, are included on the Company’s consolidated balance sheets as a direct deduction from the corresponding debt liability. These deferred charges are amortized as an adjustment to interest expense using the effective interest method. For resecuritization financings, amortization is based upon the actual repayments of the associated beneficial interests issued to third parties. For Senior Notes and other repurchase agreement financings, such costs are amortized over the shorter of the period to the expected or stated legal maturity of the debt instruments. The Company periodically reviews the recoverability of these deferred costs and in the event an impairment charge is required, such amount will be included in Operating and Other Expense on the Company’s consolidated statements of operations.
Repurchase Agreements and Other Advances	Repurchase Agreements and Other Advances Repurchase Agreements The Company finances the holdings of a significant portion of its residential mortgage assets with repurchase agreements. Under repurchase agreements, the Company sells securities to a lender and agrees to repurchase the same securities in the future for a price that is higher than the original sale price. The difference between the sale price that the Company receives and the repurchase price that the Company pays represents interest paid to the lender. Although legally structured as sale and repurchase transactions, the Company accounts for repurchase agreements as secured borrowings. Under its repurchase agreements, the Company pledges its securities as collateral to secure the borrowing, which is equal in value to a specified percentage of the fair value of the pledged collateral, while the Company retains beneficial ownership of the pledged collateral. At the maturity of a repurchase financing, unless the repurchase financing is renewed with the same counterparty, the Company is required to repay the loan including any accrued interest and concurrently receives back its pledged collateral from the lender. With the consent of the lender, the Company may renew a repurchase financing at the then prevailing financing terms. Margin calls, whereby a lender requires that the Company pledge additional securities or cash as collateral to secure borrowings under its repurchase financing with such lender, are routinely experienced by the Company when the value of the MBS pledged as collateral declines as a result of principal amortization and prepayments or due to changes in market interest rates, spreads or other market conditions. The Company also may make margin calls on counterparties when collateral values increase. The Company’s repurchase financings typically have terms ranging from one month to six months at inception, but may also have longer or shorter terms. Should a counterparty decide not to renew a repurchase financing at maturity, the Company must either refinance elsewhere or be in a position to satisfy the obligation. If, during the term of a repurchase financing, a lender should default on its obligation, the Company might experience difficulty recovering its pledged assets which could result in an unsecured claim against the lender for the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged by the Company to such lender, including accrued interest receivable or such collateral. (See Notes 6 , 7 and 15 ) In addition to the repurchase agreement financing arrangements discussed above, as part of its financing strategy for Non-Agency MBS, the Company has entered into contemporaneous repurchase and reverse repurchase agreements with a single counterparty. Under a typical reverse repurchase agreement, the Company buys securities from a borrower for cash and agrees to sell the same securities in the future for a price that is higher than the original purchase price. The difference between the purchase price the Company originally paid and the sale price represents interest received from the borrower. In contrast, the contemporaneous repurchase and reverse repurchase transactions effectively resulted in the Company pledging Non-Agency MBS as collateral to the counterparty in connection with the repurchase agreement financing and obtaining U.S. Treasury securities as collateral from the same counterparty in connection with the reverse repurchase agreement. No net cash was exchanged between the Company and counterparty at the inception of the transactions. Securities obtained and pledged as collateral are recorded as an asset on the Company’s consolidated balance sheets. Interest income is recorded on the reverse repurchase agreement and interest expense is recorded on the repurchase agreement on an accrual basis. Both the Company and the counterparty have the right to make daily margin calls based on changes in the value of the collateral obtained and/or pledged. The Company’s liability to the counterparty in connection with this financing arrangement is recorded on the Company’s consolidated balance sheets and disclosed as “Obligation to return securities obtained as collateral, at fair value.” (See Note 2 ( c )) Federal Home Loan Bank (“FHLB”) Advances In January 2016, the Federal Housing Finance Agency (the “FHFA”) released its final rule amending its regulation on FHLB membership, which, among other things, provided termination rules for then current captive insurance members. As a result of such regulation, the Company’s wholly-owned subsidiary, MFA Insurance, Inc. (“MFA Insurance”) was required to repay all of its outstanding FHLB advances by February 19, 2017 and its FHLB membership was terminated on such date. FHLB advances were secured financing transactions and were carried at their contractual amounts. Accrued interest payable on FHLB advances is included in Other liabilities on the Company’s consolidated balance sheet at December 31, 2016 . (See Notes 6 , 7 and 15 )
Equity-Based Compensation	Equity-Based Compensation Compensation expense for equity-based awards that are subject to vesting conditions, is recognized ratably over the vesting period of such awards, based upon the fair value of such awards at the grant date. For certain awards granted prior to January 1, 2017, compensation expense recognized included the impact of estimated forfeitures, with any changes in estimated forfeiture rates accounted for as a change in estimate. Upon adoption of new accounting guidance that was effective for the Company on January 1, 2017, the Company made a policy election to account for forfeitures as they occur. (See Note 2 ( t )) From 2011 through 2013, the Company granted certain restricted stock units (“RSUs”) that vested annually over a one or three -year period, provided that certain criteria were met, which were based on a formula tied to the Company’s achievement of average total stockholder return during that three -year period. Starting in 2014, the Company has made annual grants of RSUs certain of which cliff vest after a three -year period and others of which cliff vest after a three -year period, subject to the achievement of certain performance criteria based on a formula tied to the Company’s achievement of average total stockholder return during that three -year period. The features in these awards related to the attainment of total stockholder return over a specified period constitute a “market condition” which impacts the amount of compensation expense recognized for these awards. Specifically, the uncertainty regarding the achievement of the market condition was reflected in the grant date fair valuation of the RSUs, which is recognized as compensation expense over the relevant vesting period. The amount of compensation expense recognized is not dependent on whether the market condition was or will be achieved. The Company has awarded dividend equivalents in connection with its equity-based awards. Payments pursuant to dividend equivalents are generally charged to Stockholders’ Equity to the extent that the attached equity awards are expected to vest. Compensation expense is recognized for payments made for dividend equivalents to the extent that the attached equity awards do not or are not expected to vest and grantees are not required to return payments of dividends or dividend equivalents to the Company. (See Notes 2 ( m ) and 14 )
Earnings per Common Share (EPS)	Earnings per Common Share (“EPS”) Basic EPS is computed using the two-class method, which includes the weighted-average number of shares of common stock outstanding during the period and an estimate of other securities that participate in dividends, such as the Company’s unvested restricted stock and RSUs that have non-forfeitable rights to dividends and dividend equivalents attached to/associated with RSUs and vested stock options to arrive at total common equivalent shares. In applying the two-class method, earnings are allocated to both shares of common stock and estimated securities that participate in dividends based on their respective weighted-average shares outstanding for the period. For the diluted EPS calculation, common equivalent shares are further adjusted for the effect of dilutive unexercised stock options and RSUs outstanding that are unvested and have dividends that are subject to forfeiture using the treasury stock method. Under the treasury stock method, common equivalent shares are calculated assuming that all dilutive common stock equivalents are exercised and the proceeds, along with future compensation expenses associated with such instruments, are used to repurchase shares of the Company’s outstanding common stock at the average market price during the reported period. (See Note 13 )
Comprehensive Income/(Loss)	Comprehensive Income/(Loss) The Company’s comprehensive income/(loss) available to common stock and participating securities includes net income, the change in net unrealized gains/(losses) on its AFS securities and derivative hedging instruments, (to the extent that such changes are not recorded in earnings), adjusted by realized net gains/(losses) reclassified out of AOCI for sold AFS securities and is reduced by dividends declared on the Company’s preferred stock and issuance costs of redeemed preferred stock.
U.S. Federal Income Taxes	U.S. Federal Income Taxes The Company has elected to be taxed as a REIT under the provisions of the Internal Revenue Code of 1986, as amended, (the “Code”) and the corresponding provisions of state law. The Company expects to operate in a manner that will enable it to satisfy the various requirements to maintain its status as a REIT for federal income tax purposes. In order to maintain its status as a REIT, the Company must, among other things, distribute at least 90% of its REIT taxable income (excluding net long-term capital gains) to stockholders in the timeframe permitted by the Code. As long as the Company maintains its status as a REIT, the Company will not be subject to regular federal income tax to the extent that it distributes 100% of its REIT taxable income (including net long-term capital gains) to its stockholders within the permitted timeframe. Should this not occur, the Company would be subject to federal taxes at prevailing corporate tax rates on the difference between its REIT taxable income and the amounts deemed to be distributed for that tax year. As the Company’s objective is to distribute 100% of its REIT taxable income to its stockholders within the permitted timeframe, no provision for current or deferred income taxes has been made in the accompanying consolidated financial statements. Should the Company incur a liability for corporate income tax, such amounts would be recorded as REIT income tax expense on the Company’s consolidated statements of operations. Furthermore, if the Company fails to distribute during each calendar year, or by the end of January following the calendar year in the case of distributions with declaration and record dates falling in the last three months of the calendar year, at least the sum of (i) 85% its REIT ordinary income for such year, (ii) 95% of its REIT capital gain income for such year, and (iii) any undistributed taxable income from prior periods, the Company would be subject to a 4% nondeductible excise tax on the excess of the required distribution over the amounts actually distributed. To the extent that the Company incurs interest, penalties or related excise taxes in connection with its tax obligations, including as a result of its assessment of uncertain tax positions, such amounts will be included in Operating and Other Expense on the Company’s consolidated statements of operations. In addition, the Company has elected to treat certain of its subsidiaries as a TRS. In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. Generally, a TRS is subject to U.S. federal, state and local corporate income taxes. Since a portion of the Company’s business may be conducted through one or more TRS, its income earned by TRS may be subject to corporate income taxation. To maintain the Company’s REIT election, no more than 25% (or, for 2018 and subsequent taxable years, 20%) of the value of a REIT’s assets at the end of each calendar quarter may consist of stock or securities in TRS. For purposes of the determination of U.S. federal and state income taxes, the Company’s subsidiaries that elected to be treated as a TRS record current or deferred income taxes based on differences (both permanent and timing) between the determination of their taxable income and net income under GAAP. No deferred tax benefit was recorded by the Company for the three months ended March 31, 2017 and 2016 , as a valuation allowance for the full amount of the associated deferred tax asset was recognized as its recovery is not considered more likely than not. Based on its analysis of any potential uncertain tax positions, the Company concluded that it does not have any material uncertain tax positions that meet the relevant recognition or measurement criteria as of March 31, 2017 , December 31, 2016 , or March 31, 2016 . The Company filed its 2015 tax return prior to September 15, 2016. The Company’s tax returns for tax years 2011 and 2013 through 2015 are open to examination.
Derivative Financial Instruments	Derivative Financial Instruments The Company may use a variety of derivative instruments to economically hedge a portion of its exposure to market risks, including interest rate risk and prepayment risk. The objective of the Company’s risk management strategy is to reduce fluctuations in net book value over a range of interest rate scenarios. In particular, the Company attempts to mitigate the risk of the cost of its variable rate liabilities increasing during a period of rising interest rates. The Company’s derivative instruments are currently comprised of Swaps, which are designated as cash flow hedges against the interest rate risk associated with its borrowings. Swaps The Company documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities and the relationship between the hedging instrument and the hedged liability for all Swaps designated as hedging transactions. The Company assesses, both at inception of a hedge and on a quarterly basis thereafter, whether or not the hedge is “highly effective.” Swaps are carried on the Company’s consolidated balance sheets at fair value, in Other assets, if their fair value is positive, or in Other liabilities, if their fair value is negative. Beginning in January 2017, variation margin payments on the Company’s Swaps that have been novated to a clearing house are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap. Changes in the fair value of the Company’s Swaps designated in hedging transactions are recorded in OCI provided that the hedge remains effective. Changes in fair value for any ineffective amount of a Swap are recognized in earnings. The Company has not recognized any change in the value of its existing Swaps designated as hedges through earnings as a result of hedge ineffectiveness. The Company discontinues hedge accounting on a prospective basis and recognizes changes in fair value through earnings when: (i) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions); (ii) it is no longer probable that the forecasted transaction will occur; or (iii) it is determined that designating the derivative as a hedge is no longer appropriate. Although permitted under certain circumstances, the Company does not offset cash collateral receivables or payables against its net derivative positions for Swaps that have not been novated to a clearing house. (See Notes 5 ( c ), 7 and 15 )
Fair Value Measurements and the Fair Value Option for Financial Assets and Financial Liabilities	Fair Value Measurements and the Fair Value Option for Financial Assets and Financial Liabilities The Company’s presentation of fair value for its financial assets and liabilities is determined within a framework that stipulates that the fair value of a financial asset or liability is an exchange price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. This definition of fair value focuses on exit price and prioritizes the use of market-based inputs over entity-specific inputs when determining fair value. In addition, the framework for measuring fair value establishes a three-level hierarchy for fair value measurements based upon the observability of inputs to the valuation of an asset or liability as of the measurement date. In addition to the financial instruments that it is required to report at fair value, the Company has elected the fair value option for certain of its residential whole loans and CRT securities at time of acquisition. Subsequent changes in the fair value of these loans and CRT securities are reported in Net gain on residential whole loans held at fair value and Other income, net respectively on the Company’s consolidated statements of operations. A decision to elect the fair value option for an eligible financial instrument, which may be made on an instrument by instrument basis, is irrevocable. (See Notes 2 ( d ), 4 and 15 )
Variable Interest Entities	Variable Interest Entities An entity is referred to as a VIE if it meets at least one of the following criteria: (i) the entity has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support of other parties; or (ii) as a group, the holders of the equity investment at risk lack (a) the power to direct the activities of an entity that most significantly impact the entity’s economic performance; (b) the obligation to absorb the expected losses; or (c) the right to receive the expected residual returns; or (iii) have disproportional voting rights and the entity’s activities are conducted on behalf of the investor that has disproportionately few voting rights. The Company consolidates a VIE when it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. The Company has in prior years entered into several resecuritization transactions which resulted in the Company consolidating the VIEs that were created to facilitate the transactions and to which the underlying assets in connection with the resecuritizations were transferred. In determining the accounting treatment to be applied to these resecuritization transactions, the Company concluded that the entities used to facilitate these transactions were VIEs and that they should be consolidated. If the Company had determined that consolidation was not required, it would have then assessed whether the transfer of the underlying assets would qualify as a sale or should be accounted for as secured financings under GAAP. Prior to the completion of its initial resecuritization transaction in October 2010, the Company had not transferred assets to VIEs or Qualifying Special Purpose Entities (“QSPEs”) and other than acquiring MBS issued by such entities, had no other involvement with VIEs or QSPEs. (See Note 16 ) The Company also includes on its consolidated balance sheets certain financial assets and liabilities that are acquired/issued by trusts and/or other special purpose entities that have been evaluated as being required to be consolidated by the Company under the applicable accounting guidance.
Offering Costs Related to Issuance and Redemption of Preferred Stock	Offering Costs Related to Issuance and Redemption of Preferred Stock Offering costs related to issuance of preferred stock are recorded as a reduction in Additional paid-in capital, a component of Stockholders’ Equity, at the time such preferred stock is issued. On redemption of preferred stock, any excess of the fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock in the Company’s consolidated balance sheets is included in the determination of Net Income Available to Common Stock and Participating Securities in the calculation of EPS.
New Accounting Standards and Interpretations	New Accounting Standards and Interpretations Accounting Standards Adopted in 2017 Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The amendments of this ASU require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. ASU 2016-09 also allows an employer to repurchase more of an employee’s shares than it could prior to adoption of this ASU for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 was effective for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company’s adoption of ASU 2016-09 did not have a significant impact on its financial position or financial statement disclosures.

MBS and CRT Securities (Tables)

MBS and CRT Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of information about MBS and CRT Securities	The following tables present certain information about the Company’s MBS and CRT securities at March 31, 2017 and December 31, 2016 : March 31, 2017 (In Thousands) Principal/ Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve and OTTI (1) Amortized Cost (2) Fair Value Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Agency MBS: Fannie Mae $ 2,686,996 $ 101,284 $ (49 ) $ — $ 2,788,231 $ 2,808,236 $ 39,653 $ (19,648 ) $ 20,005 Freddie Mac 661,114 25,447 — — 687,614 678,899 3,770 (12,485 ) (8,715 ) Ginnie Mae 7,231 130 — — 7,361 7,479 118 — 118 Total Agency MBS 3,355,341 126,861 (49 ) — 3,483,206 3,494,614 43,541 (32,133 ) 11,408 Non-Agency MBS: Expected to Recover Par (3)(4) 2,640,311 57 (23,788 ) — 2,616,580 2,643,478 27,882 (984 ) 26,898 Expected to Recover Less than Par (3) 3,145,353 — (245,937 ) (653,337 ) 2,246,079 2,824,700 579,929 (1,308 ) 578,621 Total Non-Agency MBS (5) 5,785,664 57 (269,725 ) (653,337 ) 4,862,659 5,468,178 607,811 (2,292 ) 605,519 Total MBS 9,141,005 126,918 (269,774 ) (653,337 ) 8,345,865 8,962,792 651,352 (34,425 ) 616,927 CRT securities (6) 467,886 4,159 (4,875 ) — 467,170 498,067 30,975 (78 ) 30,897 Total MBS and CRT securities $ 9,608,891 $ 131,077 $ (274,649 ) $ (653,337 ) $ 8,813,035 $ 9,460,859 $ 682,327 $ (34,503 ) $ 647,824 December 31, 2016 (In Thousands) Principal/ Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve and OTTI (1) Amortized Cost (2) Fair Value Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Agency MBS: Fannie Mae $ 2,879,807 $ 108,310 $ (51 ) $ — $ 2,988,066 $ 3,014,464 $ 45,706 $ (19,308 ) $ 26,398 Freddie Mac 693,945 26,736 — — 723,285 716,209 4,809 (11,885 ) (7,076 ) Ginnie Mae 7,550 136 — — 7,686 7,824 138 — 138 Total Agency MBS 3,581,302 135,182 (51 ) — 3,719,037 3,738,497 50,653 (31,193 ) 19,460 Non-Agency MBS: Expected to Recover Par (3)(4) 2,847,398 57 (24,273 ) — 2,823,182 2,847,291 26,477 (2,368 ) 24,109 Expected to Recover Less than Par (3) 3,359,200 — (253,918 ) (694,241 ) 2,411,041 2,978,525 570,318 (2,834 ) 567,484 Total Non-Agency MBS (5) 6,206,598 57 (278,191 ) (694,241 ) 5,234,223 5,825,816 596,795 (5,202 ) 591,593 Total MBS 9,787,900 135,239 (278,242 ) (694,241 ) 8,953,260 9,564,313 647,448 (36,395 ) 611,053 CRT securities (6) 384,993 3,312 (5,557 ) — 382,748 404,850 22,105 (3 ) 22,102 Total MBS and CRT securities $ 10,172,893 $ 138,551 $ (283,799 ) $ (694,241 ) $ 9,336,008 $ 9,969,163 $ 669,553 $ (36,398 ) $ 633,155 (1) Discount designated as Credit Reserve and amounts related to OTTI are generally not expected to be accreted into interest income. Amounts disclosed at March 31, 2017 reflect Credit Reserve of $636.2 million and OTTI of $17.1 million . Amounts disclosed at December 31, 2016 reflect Credit Reserve of $675.6 million and OTTI of $18.6 million . (2) Includes principal payments receivable of $1.1 million and $2.6 million at March 31, 2017 and December 31, 2016 , respectively, which are not included in the Principal/Current Face. (3) Based on managemen t ’ s current estimates of future principal cash flows expected to be received. (4) Includes 3 Year Step-up securities, which at March 31, 2017 had a $2.5 billion Principal/Current face, $2.4 billion amortized cost and $2.5 billion fair value. At December 31, 2016 , 3Year Step-up securities had a $2.7 billion Principal/Current face, $2.7 billion amortized cost and $2.7 billion fair value. (5) At March 31, 2017 and December 31, 2016 , the Company expected to recover approximately 89% and 89% , respectively, of the then-current face amount of Non-Agency MBS. (6) Amounts disclosed at March 31, 2017 includes CRT securities with a fair value of $362.1 million for which the fair value option has been elected. Such securities had gross unrealized gains of approximately $18.4 million at March 31, 2017 . Amounts disclosed at December 31, 2016 includes CRT securities with a fair value of $271.2 million for which the fair value option has been elected. Such securities had gross unrealized gains of approximately $12.7 million and net unrealized losses of approximately $3,000 at December 31, 2016 .
Schedule of information about MBS and CRT Securities that were in an unrealized loss position	The following table presents information about the Company’s MBS and CRT securities that were in an unrealized loss position at March 31, 2017 : Unrealized Loss Position For: Less than 12 Months 12 Months or more Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses (Dollars in Thousands) Agency MBS: Fannie Mae $ 385,791 $ 2,985 82 $ 862,234 $ 16,663 154 $ 1,248,025 $ 19,648 Freddie Mac 268,644 5,259 48 237,012 7,226 65 505,656 12,485 Total Agency MBS 654,435 8,244 130 1,099,246 23,889 219 1,753,681 32,133 Non-Agency MBS: Expected to Recover Par (1) 207,251 399 4 126,702 585 12 333,953 984 Expected to Recover Less than Par (1) 3,504 80 2 50,019 1,228 9 53,523 1,308 Total Non-Agency MBS 210,755 479 6 176,721 1,813 21 387,476 2,292 Total MBS 865,190 8,723 136 1,275,967 25,702 240 2,141,157 34,425 CRT securities (2) 24,950 78 1 — — — 24,950 78 Total MBS and CRT securities $ 890,140 $ 8,801 137 $ 1,275,967 $ 25,702 240 $ 2,166,107 $ 34,503 (1) Based on management’s current estimates of future principal cash flows expected to be received. (2) Amounts disclosed at March 31, 2017 includes CRT securities with a fair value of $25.0 million for which the fair value option has been elected. Such securities have unrealized losses of $78,000 at March 31, 2017 .
Schedule of composition of OTTI charges recorded	The following table presents the composition of OTTI charges recorded by the Company for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 Total OTTI losses $ (63 ) $ — OTTI reclassified from OCI (351 ) — OTTI recognized in earnings $ (414 ) $ —
Schedule of changes in credit loss component of OTTI	The following table presents a roll-forward of the credit loss component of OTTI on the Company’s Non-Agency MBS for which a non-credit component of OTTI was previously recognized in OCI. Changes in the credit loss component of OTTI are presented based upon whether the current period is the first time OTTI was recorded on a security or a subsequent OTTI charge was recorded. Three Months Ended (In Thousands) 2017 2016 Credit loss component of OTTI at beginning of period $ 37,305 $ 36,820 Additions for credit related OTTI not previously recognized 63 — Subsequent additional credit related OTTI recorded 351 — Credit loss component of OTTI at end of period $ 37,719 $ 36,820
Schedule of changes in the components of the purchase discount on Non-Agency MBS	The following tables present the changes in the components of the Company’s purchase discount on its Non-Agency MBS between purchase discount designated as Credit Reserve and OTTI and accretable purchase discount for the three months ended March 31, 2017 and 2016 : Three Months Ended Three Months Ended (In Thousands) Discount Designated as Credit Reserve and OTTI Accretable Discount (1) Discount Designated as Credit Reserve and OTTI Accretable Discount (1) Balance at beginning of period $ (694,241 ) $ (278,191 ) $ (787,541 ) $ (312,182 ) Accretion of discount — 21,616 — 21,406 Realized credit losses 12,324 — 18,050 — Purchases — — (4,294 ) 1,606 Sales 19,741 (3,897 ) 12,020 12,040 Net impairment losses recognized in earnings (414 ) — — — Transfers/release of credit reserve 9,253 (9,253 ) 4,201 (4,201 ) Balance at end of period $ (653,337 ) $ (269,725 ) $ (757,564 ) $ (281,331 ) (1) Together with coupon interest, accretable purchase discount is recognized as interest income over the life of the security.
Schedule of impact of AFS on AOCI	The following table presents the impact of the Company’s AFS securities on its AOCI for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In Thousands) 2017 2016 AOCI from AFS securities: Unrealized gain on AFS securities at beginning of period $ 620,403 $ 585,250 Unrealized (loss)/gain on Agency MBS, net (8,052 ) 13,226 Unrealized gain/(loss) on Non-Agency MBS, net 27,521 (58,840 ) Reclassification adjustment for MBS sales included in net income (9,971 ) (10,485 ) Reclassification adjustment for OTTI included in net income (414 ) — Change in AOCI from AFS securities 9,084 (56,099 ) Balance at end of period $ 629,487 $ 529,151
Schedule of interest income on MBS and CRT Securities	The following table presents the components of interest income on the Company’s MBS and CRT securities for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In Thousands) 2017 2016 Agency MBS Coupon interest $ 26,212 $ 32,132 Effective yield adjustment (1) (8,318 ) (8,135 ) Interest income $ 17,894 $ 23,997 Legacy Non-Agency MBS Coupon interest $ 34,662 $ 40,309 Effective yield adjustment (2) 21,442 19,913 Interest income $ 56,104 $ 60,222 3 Year Step-up securities Coupon interest $ 25,965 $ 24,370 Effective yield adjustment (1) 174 1,560 Interest income $ 26,139 $ 25,930 CRT securities Coupon interest $ 5,257 $ 2,356 Effective yield adjustment (2) 1,119 336 Interest income $ 6,376 $ 2,692 (1) Includes amortization of premium paid net of accretion of purchase discount. For Agency MBS and 3 Year Step-up securities, interest income is recorded at an effective yield, which reflects net premium amortization/accretion based on actual prepayment activity. (2) The effective yield adjustment is the difference between the net income calculated using the net yield, which is based on management’s estimates of the amount and timing of future cash flows, less the current coupon yield.

Residential Whole Loans (Tables

Residential Whole Loans (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of Activity in Allowance for Loan Losses, Residential Whole Loans	The following table presents the activity in the Company’s allowance for loan losses on its residential whole loan pools at carrying value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at the beginning of period $ 990 $ 1,165 Reversal of provisions for loan losses (221 ) (37 ) Balance at the end of period $ 769 $ 1,128
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period	The following table presents information regarding estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the residential whole loans held at carrying value acquired by the Company for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Contractually required principal and interest $ — $ 199,092 Contractual cash flows not expected to be collected (non-accretable yield) — (28,663 ) Expected cash flows to be collected — 170,429 Interest component of expected cash flows (accretable yield) — (58,509 ) Fair value at the date of acquisition $ — $ 111,920
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement	The following table presents accretable yield activity for the Company’s residential whole loans held at carrying value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 334,379 $ 175,271 Additions — 58,509 Accretion (8,690 ) (4,436 ) Reclassifications (to)/from non-accretable difference, net (138 ) 64 Balance at end of period $ 325,551 $ 229,408
Residential Whole Loans, Fair Value	The following table presents information regarding the Company’s residential whole loans held at fair value at March 31, 2017 and December 31, 2016 : (Dollars in Thousands) March 31, 2017 December 31, 2016 Outstanding principal balance $ 907,312 $ 966,276 Aggregate fair value $ 775,152 $ 814,682 Number of loans 3,558 3,812
Residential Whole Loans, Fair Value, Component of Net gain on residential whole loans	The following table presents the components of Net gain on residential whole loans held at fair value for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Coupon payments and other income received $ 8,173 $ 4,401 Net unrealized gains 2,948 6,226 Net gain on payoff/liquidation of loans 868 1,254 Net gain on transfer to REO 1,784 467 Total $ 13,773 $ 12,348

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Other Assets [Abstract]
Schedule of other assets	The following table presents the components of the Company’s Other assets at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 REO $ 98,708 $ 80,503 Corporate loan 93,002 85,800 Interest receivable 27,465 27,795 Swaps, at fair value 119 233 Goodwill 7,189 7,189 Prepaid and other assets 60,012 78,775 Total Other Assets $ 286,495 $ 280,295
Schedule of activity for real estate owned	The following table presents the activity in the Company’s REO for the three months ended March 31, 2017 and 2016 : (In Thousands) Three Months Ended March 31, 2017 2016 Balance at beginning of period $ 80,503 $ 28,026 Adjustments to record at lower of cost or fair value (1,823 ) (1,777 ) Transfer from residential whole loans (1) 31,098 22,280 Purchases and capital improvements 774 410 Disposals (11,844 ) (5,648 ) Balance at end of period $ 98,708 $ 43,291 (1) Includes net gain recorded on transfer of approximately $1.3 million and $441,000 , respectively, for the three months ended March 31, 2017 and 2016 .
Schedule of derivative instruments and balance sheet location	The following table presents the fair value of the Company’s derivative instruments and their balance sheet location at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Derivative Instrument Designation Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value (In Thousands) Non-cleared legacy Swaps (1) Hedging Assets $ 300,000 $ 119 $ 350,000 $ 233 Cleared Swaps (2) Hedging Liabilities $ 2,550,000 $ — $ 2,550,000 $ (46,954 ) (1) Non-cleared legacy Swaps include Swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. (2) Cleared Swaps include Swaps executed bilaterally with a counterparty in the over-the-counter market but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap.
Schedule of assets pledged as collateral against derivative contracts	The following table presents the assets pledged as collateral against the Company’s Swap contracts at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 Agency MBS, at fair value $ 31,125 $ 32,468 Restricted cash 4,756 53,849 Total assets pledged against Swaps $ 35,881 $ 86,317
Schedule of information about swap activity	The following table presents certain information with respect to the Company’s Swap activity during the three months ended March 31, 2017 : (Dollars in Thousands) Three Months Ended New Swaps: Number of new Swaps — Aggregate notional amount $ — Swaps amortized/expired: Aggregate notional amount $ 50,000 Weighted average fixed-pay rate 0.67 %
Schedule of information about swaps	The following table presents information about the Company’s Swaps at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Notional Amount Weighted Average Fixed-Pay Interest Rate Weighted Average Variable Interest Rate (2) Notional Amount Weighted Average Fixed-Pay Interest Rate Weighted Average Variable Interest Rate (2) Maturity (1) (Dollars in Thousands) Within 30 days $ — — % — % $ — — % — % Over 30 days to 3 months 300,000 0.57 0.84 50,000 0.67 0.64 Over 3 months to 6 months — — — 300,000 0.57 0.66 Over 6 months to 12 months — — — — — — Over 12 months to 24 months 650,000 1.53 0.93 550,000 1.49 0.71 Over 24 months to 36 months 100,000 1.71 0.98 200,000 1.71 0.76 Over 36 months to 48 months 1,600,000 2.22 0.96 1,500,000 2.22 0.74 Over 48 months to 60 months 100,000 2.21 0.98 200,000 2.20 0.75 Over 60 months to 72 months — — — — — — Over 72 months to 84 months (3) 100,000 2.75 0.98 100,000 2.75 0.74 Total Swaps $ 2,850,000 1.89 % 0.94 % $ 2,900,000 1.87 % 0.72 % (1) Each maturity category reflects contractual amortization and/or maturity of notional amounts. (2) Reflects the benchmark variable rate due from the counterparty at the date presented, which rate adjusts monthly or quarterly based on one -month or three -month LIBOR, respectively. (3) Reflects one Swap with a maturity date of July 2023.
Schedule of interest expense and the weighted average interest rate paid and received on swaps	The following table presents the net impact of the Company’s derivative hedging instruments on its interest expense and the weighted average interest rate paid and received for such Swaps for the three months ended March 31, 2017 and 2016 : Three Months Ended (Dollars in Thousands) 2017 2016 Interest expense attributable to Swaps $ 7,809 $ 10,650 Weighted average Swap rate paid 1.88 % 1.82 % Weighted average Swap rate received 0.79 % 0.42 %
Schedule of impact of hedging instruments on AOCI	The following table presents the impact of the Company’s derivative hedging instruments on its AOCI for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 AOCI from derivative hedging instruments: Balance at beginning of period $ (46,721 ) $ (69,399 ) Net gain/(loss) on Swaps 11,897 (49,342 ) Balance at end of period $ (34,824 ) $ (118,741 )

Repurchase Agreements and Oth29

Repurchase Agreements and Other Advances (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
Schedule of Company's borrowings under repurchase agreements and associated assets pledged as collateral	The following table presents information with respect to the Company’s borrowings under repurchase agreements and associated assets pledged as collateral at March 31, 2017 and December 31, 2016 : (Dollars in Thousands) March 31, December 31, Repurchase agreement borrowings secured by Agency MBS $ 3,093,737 $ 3,095,020 Fair value of Agency MBS pledged as collateral under repurchase agreements $ 3,330,251 $ 3,280,689 Weighted average haircut on Agency MBS (1) 4.56 % 4.67 % Repurchase agreement borrowings secured by Legacy Non-Agency MBS $ 1,573,545 $ 1,690,937 Fair value of Legacy Non-Agency MBS pledged as collateral under repurchase agreements (2) $ 2,070,626 $ 2,317,708 Weighted average haircut on Legacy Non-Agency MBS (1) 22.44 % 24.01 % Repurchase agreement borrowings secured by 3 Year Step-up securities $ 1,875,157 $ 2,035,531 Fair value of 3 Year Step-up securities pledged as collateral under repurchase agreements $ 2,376,119 $ 2,574,691 Weighted average haircut on 3 Year Step-up securities (1) 21.52 % 21.70 % Repurchase agreements secured by U.S. Treasuries $ 366,475 $ 504,572 Fair value of U.S. Treasuries pledged as collateral under repurchase agreements $ 371,333 $ 510,767 Weighted average haircut on U.S. Treasuries (1) 1.73 % 1.60 % Repurchase agreements secured by CRT securities $ 345,482 $ 271,205 Fair value of CRT securities pledged as collateral under repurchase agreements $ 446,231 $ 357,488 Weighted average haircut on CRT securities (1) 22.36 % 23.22 % Repurchase agreements secured by residential whole loans (3) $ 836,203 $ 832,060 Fair value of residential whole loans pledged as collateral under repurchase agreements $ 1,178,562 $ 1,175,088 Weighted average haircut on residential whole loans (1) 25.16 % 25.03 % Repurchase agreements secured by other investments $ 46,944 $ 43,333 Fair value of other investments pledged as collateral under repurchase agreements $ 93,002 $ 85,800 Weighted average haircut on other investments (1) 50.00 % 50.00 % (1) Haircut represents the percentage amount by which the collateral value is contractually required to exceed the loan amount. (2) At December 31, 2016 includes $172.4 million of Legacy Non-Agency MBS acquired from consolidated VIEs that are eliminated from the Company’s consolidated balance sheets. (3) Excludes $441,000 and $210,000 of unamortized debt issuance costs at March 31, 2017 and December 31, 2016 , respectively.
Schedule of repricing information about borrowings under repurchase agreements	The following table presents repricing information about the Company’s borrowings under repurchase agreements, which does not reflect the impact of associated derivative hedging instruments, at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Balance Weighted Average Interest Rate Balance Weighted Average Interest Rate Time Until Interest Rate Reset (Dollars in Thousands) Within 30 days $ 7,502,995 1.86 % $ 7,284,062 1.77 % Over 30 days to 3 months 634,548 2.41 1,188,416 1.91 Total repurchase agreements 8,137,543 1.91 % 8,472,478 1.48 % Less debt issuance costs 441 210 Total repurchase agreements less debt issuance costs $ 8,137,102 $ 8,472,268
Schedule of contractual maturity information about repurchase agreements	The following table presents contractual maturity information about the Company’s borrowings under repurchase agreements, all of which are accounted for as secured borrowings, at March 31, 2017 , and does not reflect the impact of derivative contracts that hedge such repurchase agreements: March 31, 2017 Contractual Maturity Overnight Within 30 Days Over 30 Days to 3 Months Over 3 Months to 12 Months Over 12 months Total (Dollars in Thousands) Agency MBS $ — $ 3,093,737 $ — $ — $ — $ 3,093,737 Legacy Non-Agency MBS — 926,866 336,316 310,363 — 1,573,545 3 Year Step-up securities — 894,904 304,141 676,112 — 1,875,157 U.S. Treasuries — 366,475 — — — 366,475 CRT securities — 327,674 17,808 — — 345,482 Residential whole loans — — — 805,595 30,608 836,203 Other investments — 46,944 — — — 46,944 Total (1) $ — $ 5,656,600 $ 658,265 $ 1,792,070 $ 30,608 $ 8,137,543 Weighted Average Interest Rate — % 1.56 % 2.41 % 2.80 % 3.36 % 1.91 % Gross amount of recognized liabilities for repurchase agreements in Note 8 $ 8,137,543 Amounts related to repurchase agreements not included in offsetting disclosure in Note 8 $ — (1) Excludes $441,000 of unamortized debt issuance costs at March 31, 2017 .
Schedule of information about counterparty for repurchase agreements for which the entity had greater than 5% of stockholders' equity at risk	The following table presents information with respect to each counterparty under repurchase agreements for which the Company had greater than 5% of stockholders’ equity at risk in the aggregate at March 31, 2017 : March 31, 2017 Counterparty Rating (1) Amount at Risk (2) Weighted Average Months to Maturity for Repurchase Agreements Percent of Stockholders’ Equity Counterparty (Dollars in Thousands) Wells Fargo (3) AA-/Aa2/AA $ 262,489 6 8.6 % Credit Suisse (4) BBB+/Aa2/A- 244,263 6 8.0 RBC (5) AA-/Aa3/AA 241,521 1 7.9 Goldman Sachs BBB+/A3/A 210,562 1 6.9 UBS (6) A+/A1/A+ 167,321 14 5.5 (1) As rated at March 31, 2017 by S&P, Moody’s and Fitch, Inc., respectively. The counterparty rating presented is the lowest published for these entities. (2) The amount at risk reflects the difference between (a) the amount loaned to the Company through repurchase agreements, including interest payable, and (b) the cash and the fair value of the securities pledged by the Company as collateral, including accrued interest receivable on such securities. (3) Includes $248.7 million at risk with Wells Fargo Bank, NA and $13.8 million at risk with Wells Fargo Securities LLC. (4) Includes $196.7 million at risk with Credit Suisse AG, Cayman Islands and $47.5 million at risk with Credit Suisse. Counterparty ratings are not published for Credit Suisse AG, Cayman Islands. (5) Includes $226.8 million at risk with RBC Barbados, $9.3 million at risk with Royal Bank of Canada and $5.4 million at risk with RBC Capital Markets LLC. Counterparty ratings are not published for RBC Barbados and RBC Capital Markets LLC. (6) Includes Non-Agency MBS pledged as collateral with contemporaneous repurchase and reverse repurchase agreements.

Collateral Positions (Tables)

Collateral Positions (Tables)	3 Months Ended
	Mar. 31, 2017
Collateral Positions
Schedule of fair value of collateral pledged and collateral held	The following table summarizes the fair value of the Company’s collateral positions, which includes collateral pledged and collateral held, with respect to its borrowings under repurchase agreements, reverse repurchase agreements, derivative hedging instruments and FHLB advances at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Assets Pledged Collateral Held Assets Pledged Collateral Held Derivative Hedging Instruments: Agency MBS $ 31,125 $ — $ 32,468 $ — Cash (1) 4,756 — 53,849 — 35,881 — 86,317 — Repurchase Agreement Borrowings: Agency MBS 3,330,251 — 3,280,689 — Legacy Non-Agency MBS (2)(3) 2,070,626 — 2,317,708 — 3 Year Step-up securities 2,376,119 — 2,574,691 — U.S. Treasury securities 371,333 — 510,767 — CRT securities 446,231 — 357,488 — Residential whole loans 1,178,562 — 1,175,088 — Other investments 93,002 — 85,800 — Cash (1) 6,224 — 4,614 — 9,872,348 — 10,306,845 — FHLB Advances: Agency MBS — — 227,244 — — — 227,244 — Reverse Repurchase Agreements: U.S. Treasury securities — 510,733 — 510,767 — 510,733 — 510,767 Total $ 9,908,229 $ 510,733 $ 10,620,406 $ 510,767 (1) Cash pledged as collateral is reported as “Restricted cash” on the Company’s consolidated balance sheets. (2) At December 31, 2016 includes $172.4 million of Legacy Non-Agency MBS acquired in connection with resecuritization transactions from consolidated VIEs that are eliminated from the Company’s consolidated balance sheets. (3) In addition, at March 31, 2017 and December 31, 2016 , $687.8 million and $688.2 million of Legacy Non-Agency MBS, respectively, are pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty.
Schedule of additional information about assets Pledged as collateral pursuant to borrowings under repurchase agreements and Derivative Hedging Contracts	The following table presents detailed information about the Company’s assets pledged as collateral pursuant to its borrowings under repurchase agreements and derivative hedging instruments at March 31, 2017 : March 31, 2017 Assets Pledged Under Repurchase Agreements Assets Pledged Against Derivative Hedging Instruments Total Fair Value of Assets Pledged and Accrued Interest (In Thousands) Fair Value Amortized Cost Accrued Interest on Pledged Assets Fair Value/ Carrying Value Amortized Cost Accrued Interest on Pledged Assets Agency MBS $ 3,330,251 $ 3,318,013 $ 8,344 $ 31,125 $ 31,917 $ 64 $ 3,369,784 Legacy Non-Agency MBS (1) 2,070,626 1,668,418 7,726 — — — 2,078,352 3 Year Step-up securities 2,376,119 2,371,887 1,536 — — — 2,377,655 U.S. Treasuries 371,333 374,081 — — — — 371,333 CRT securities 446,231 417,091 279 — — — 446,510 Residential whole loans (2) 1,178,562 1,163,416 3,861 — — — 1,182,423 Other investments 93,002 93,002 572 — — — 93,574 Cash (3) 6,224 6,224 — 4,756 4,756 — 10,980 Total $ 9,872,348 $ 9,412,132 $ 22,318 $ 35,881 $ 36,673 $ 64 $ 9,930,611 (1) In addition, at March 31, 2017 , $687.8 million of Legacy Non-Agency MBS are pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty. (2) Includes residential whole loans held at carrying value with an aggregate fair value of $433.5 million and aggregate amortized cost of $418.4 million and residential whole loans held at fair value with an aggregate fair value and amortized cost of $745.0 million . (3) Cash pledged as collateral is reported as “Restricted cash” on the Company’s consolidated balance sheets.

Offsetting Assets and Liabili31

Offsetting Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Offsetting [Abstract]
Schedule of information about certain assets that are subject to master netting arrangements (or similar agreements)	The following tables present information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) and may potentially be offset on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016 : Offsetting of Financial Assets and Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount (In Thousands) Financial Instruments Cash Collateral Received March 31, 2017 Swaps, at fair value $ 119 $ — $ 119 $ (119 ) $ — $ — Total $ 119 $ — $ 119 $ (119 ) $ — $ — December 31, 2016 Swaps, at fair value $ 233 $ — $ 233 $ (233 ) $ — $ — Total $ 233 $ — $ 233 $ (233 ) $ — $ —
Schedule of information about certain liabilities that are subject to master netting arrangements (or similar agreements)	Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Amount (In Thousands) Financial Instruments (1) Cash Collateral Pledged (1) March 31, 2017 Swaps, at fair value (2) $ — $ — $ — $ — $ — $ — Repurchase agreements and other advances (3)(4) 8,137,543 — 8,137,543 (8,131,319 ) (6,224 ) — Total $ 8,137,543 $ — $ 8,137,543 $ (8,131,319 ) $ (6,224 ) $ — December 31, 2016 Swaps, at fair value (2) $ 46,954 $ — $ 46,954 $ — $ (46,954 ) $ — Repurchase agreements and other advances (3)(4) 8,687,478 — 8,687,478 (8,682,864 ) (4,614 ) — Total $ 8,734,432 $ — $ 8,734,432 $ (8,682,864 ) $ (51,568 ) $ — (1) Amounts disclosed in the Financial Instruments column of the table above represent collateral pledged that is available to be offset against liability balances associated with repurchase agreements and other advances, and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represent amounts pledged as collateral against derivative transactions and repurchase agreements, and exclude excess collateral of $4.8 million and $6.9 million at March 31, 2017 and December 31, 2016 , respectively. (2) The fair value of securities pledged against the Company’s Swaps was $31.1 million and $32.5 million at March 31, 2017 and December 31, 2016 , respectively. Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap. (3) The fair value of financial instruments pledged against the Company’s repurchase agreements and other advances was $9.9 billion and $10.5 billion at March 31, 2017 and December 31, 2016 , respectively. (4) Excludes $441,000 and $210,000 of unamortized debt issuance costs at March 31, 2017 and December 31, 2016 , respectively.

Other Liabilities (Tables)

Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Other Liabilities [Abstract]
Other Liabilities	The following table presents the components of the Company’s Other liabilities at March 31, 2017 and December 31, 2016 : (In Thousands) March 31, 2017 December 31, 2016 Accrued interest payable $ 13,648 $ 14,129 Swaps, at fair value (1) — 46,954 Dividends and dividend equivalents payable 74,830 74,657 Accrued expenses and other liabilities 11,103 19,612 Total Other Liabilities $ 99,581 $ 155,352 (1) Beginning in January 2017, variation margin payments on the Company’s cleared Swaps are treated as a legal settlement of the exposure under the Swap contract. Previously such payments were treated as collateral pledged against the exposure under the contract. The effect of this change is to reduce what would have otherwise been reported as fair value of the Swap.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Schedule of preferred stock dividend declaration and payment	The following table presents cash dividends declared by the Company on its Series B Preferred Stock from January 1, 2017 through March 31, 2017 : Declaration Date Record Date Payment Date Dividend Per Share February 17, 2017 March 6, 2017 March 31, 2017 $ 0.46875
Schedule of cash dividends declared on common stock	The following table presents cash dividends declared by the Company on its common stock from January 1, 2017 through March 31, 2017 : Declaration Date (1) Record Date Payment Date Dividend Per Share March 8, 2017 March 29, 2017 April 28, 2017 $ 0.20 (1) (1) At March 31, 2017 , the Company had accrued dividends and dividend equivalents payable of $74.8 million related to the common stock dividend declared on March 8, 2017 .
Schedule of changes in balances of each component of the entity's AOCI	The following table presents changes in the balances of each component of the Company’s AOCI for the three months ended March 31, 2017 : Three Months Ended (In Thousands) Net Unrealized Gain/(Loss) on AFS Securities Net (Loss)/Gain on Swaps Total AOCI Balance at beginning of period $ 620,403 $ (46,721 ) $ 573,682 OCI before reclassifications 19,469 11,897 31,366 Amounts reclassified from AOCI (1) (10,385 ) — (10,385 ) Net OCI during the period (2) 9,084 11,897 20,981 Balance at end of period $ 629,487 $ (34,824 ) $ 594,663 (1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss). The following table presents changes in the balances of each component of the Company’s AOCI for the three months ended March 31, 2016 : Three Months Ended (In Thousands) Net Unrealized Net on Swaps Total AOCI Balance at beginning of period $ 585,250 $ (69,399 ) $ 515,851 OCI before reclassifications (45,614 ) (49,342 ) (94,956 ) Amounts reclassified from AOCI (1) (10,485 ) — (10,485 ) Net OCI during the period (2) (56,099 ) (49,342 ) (105,441 ) Balance at end of period $ 529,151 $ (118,741 ) $ 410,410 (1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss).
Information about the significant amounts reclassified out of the entity's AOCI	The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three months ended March 31, 2017 : Three Months Ended Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statement (In Thousands) AFS Securities: Realized gain on sale of securities $ (9,971 ) Net gain on sales of MBS and U.S. Treasury securities OTTI recognized in earnings (414 ) Net impairment losses recognized in earnings Total AFS Securities $ (10,385 ) Total reclassifications for period $ (10,385 ) The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three months ended March 31, 2016 : Three Months Ended Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Statement (In Thousands) AFS Securities: Realized gain on sale of securities $ (10,485 ) Net gain on sales of MBS and U.S. Treasury securities OTTI recognized in earnings — Net impairment losses recognized in earnings Total AFS Securities $ (10,485 ) Total reclassifications for period $ (10,485 )

EPS Calculation (Tables)

EPS Calculation (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of reconciliation of the earnings and shares used in calculating basic and diluted EPS	The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands, Except Per Share Amounts) 2017 2016 Numerator: Net income $ 78,060 $ 78,070 Dividends declared on preferred stock (3,750 ) (3,750 ) Dividends, dividend equivalents and undistributed earnings allocated to participating securities (431 ) (395 ) Net income to common stockholders - basic and diluted $ 73,879 $ 73,925 Denominator: Weighted average common shares for basic and diluted earnings per share (1) 372,579 370,942 Basic and diluted earnings per share $ 0.20 $ 0.20 (1) At March 31, 2017 , the Company had an aggregate of 2.3 million equity instruments outstanding that were not included in the calculation of diluted EPS for the three months ended March 31, 2017 , as their inclusion would have been anti-dilutive. These equity instruments were comprised of approximately 22,000 shares of restricted common stock with a weighted average grant date fair value of $7.12 and approximately 2.3 million RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $6.50 . These equity instruments may have a dilutive impact on future EPS.

Equity Compensation, Employme35

Equity Compensation, Employment Agreements and Other Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Compensation Related Costs [Abstract]
Schedule of expenses related to equity-based compensation	The following table presents the Company’s expenses related to its equity-based compensation instruments for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 RSUs $ 1,056 $ 960 Restricted shares of common stock 50 152 Dividend equivalent rights — 22 Total $ 1,106 $ 1,134
Schedule of expenses related to deferred compensation plans	The following table presents the Company’s expenses related to its Deferred Plans for its non-employee directors and senior officers for the three months ended March 31, 2017 and 2016 : Three Months Ended (In Thousands) 2017 2016 Non-employee directors $ 114 $ 49 Total $ 114 $ 49
Schedule of aggregate income deferred by participants and associated liability under deferred compensation plans	The following table presents the aggregate amount of income deferred by participants of the Deferred Plans through March 31, 2017 and December 31, 2016 that had not been distributed and the Company’s associated liability for such deferrals at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Undistributed Income Deferred (1) Liability Under Deferred Plans Undistributed Income Deferred (1) Liability Under Deferred Plans Non-employee directors $ 1,208 $ 1,519 $ 1,066 $ 1,263 Total $ 1,208 $ 1,519 $ 1,066 $ 1,263 (1) Represents the cumulative amounts that were deferred by participants through March 31, 2017 and December 31, 2016 , which had not been distributed through such respective date.

Fair Value of Financial Instr36

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of financial instruments carried at fair value by valuation hierarchy	The following tables present the Company’s financial instruments carried at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , on the consolidated balance sheets by the valuation hierarchy, as previously described: Fair Value at March 31, 2017 (In Thousands) Level 1 Level 2 Level 3 Total Assets: Agency MBS $ — $ 3,494,614 $ — $ 3,494,614 Non-Agency MBS — 5,185,846 282,332 5,468,178 CRT securities — 498,067 — 498,067 Securities obtained and pledged as collateral 371,333 — — 371,333 Residential whole loans, at fair value — — 775,152 775,152 Swaps — 119 — 119 Total assets carried at fair value $ 371,333 $ 9,178,646 $ 1,057,484 $ 10,607,463 Liabilities: Swaps $ — $ — $ — $ — Obligation to return securities obtained as collateral 510,733 — — 510,733 Total liabilities carried at fair value $ 510,733 $ — $ — $ 510,733 Fair Value at December 31, 2016 (In Thousands) Level 1 Level 2 Level 3 Total Assets: Agency MBS $ — $ 3,738,497 $ — $ 3,738,497 Non-Agency MBS, including MBS transferred to consolidated VIEs — 5,825,816 — 5,825,816 CRT securities — 404,850 — 404,850 Securities obtained and pledged as collateral 510,767 — — 510,767 Residential whole loans, at fair value — — 814,682 814,682 Swaps — 233 — 233 Total assets carried at fair value $ 510,767 $ 9,969,396 $ 814,682 $ 11,294,845 Liabilities: Swaps $ — $ 46,954 $ — $ 46,954 Obligation to return securities obtained as collateral 510,767 — — 510,767 Total liabilities carried at fair value $ 510,767 $ 46,954 $ — $ 557,721
Schedule of significant unobservable inputs used in fair value measurement of residential whole loans	The following table presents additional information for the three months ended March 31, 2017 and 2016 about the Company’s Residential whole loans, at fair value, which are classified as Level 3 and measured at fair value on a recurring basis: Residential Whole Loans, at Fair Value Three Months Ended March 31, (In Thousands) 2017 2016 Balance at beginning of period $ 814,682 $ 623,276 Purchases and capitalized advances 5,333 53,590 Changes in fair value recorded in Net gain on residential whole loans held at fair value 2,948 6,226 Collection of principal, net of liquidation gains/losses (20,043 ) (14,602 ) Repurchases (306 ) — Transfer to REO (27,462 ) (21,130 ) Balance at end of period $ 775,152 $ 647,360
Schedule of quantitative information about significant unobservable inputs	The following table presents a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Company’s residential whole loans held at fair value for which it has utilized Level 3 inputs to determine fair value as of March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in Thousands) Fair Value (1) Valuation Technique Unobservable Input Weighted Average (2) Range Residential whole loans, at fair value $ 267,878 Discounted cash flow Discount rate 6.6 % 5.0-7.7% Prepayment rate 7.8 % 0.0-12.3% Default rate 3.2 % 0.0-10.1% Loss severity 12.8 % 0.0-100.0% $ 507,274 Liquidation model Discount rate 7.7 % 6.2-26.9% Annual change in home prices 1.9 % (5.0)-10.7% Liquidation timeline (in years) 1.5 0.1-4.4 Current value of underlying properties (3) $ 641 $15-$4,900 Total $ 775,152 December 31, 2016 (Dollars in Thousands) Fair Value (1) Valuation Technique Unobservable Input Weighted Average (2) Range Residential whole loans, at fair value $ 253,287 Discounted cash flow Discount rate 6.6 % 5.0-7.7% Prepayment rate 7.6 % 0.0-12.0% Default rate 2.9 % 0.0-9.7% Loss severity 13.0 % 0.0-77.5% $ 516,014 Liquidation model Discount rate 7.7 % 6.8-26.9% Annual change in home prices 1.7 % (9.2)-7.7% Liquidation timeline (in years) 1.6 0.1-4.4 Current value of underlying properties (3) $ 634 $5-$4,900 Total $ 769,301 (1) Excludes approximately zero and $45.4 million of loans for which management considers the purchase price continues to reflect the fair value of such loans at March 31, 2017 and December 31, 2016 , respectively. (2) Amounts are weighted based on the fair value of the underlying loan. (3) The simple average value of the properties underlying residential whole loans held at fair value valued via a liquidation model was approximately $340,000 and $320,000 as of March 31, 2017 and December 31, 2016 , respectively.
Schedule of residential whole loans, fair value and aggregate unpaid principal, fair value option elected	The following table presents the difference between the fair value and the aggregate unpaid principal balance of the Company’s residential whole loans for which the fair value option was elected, at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In Thousands) Fair Value Unpaid Principal Balance Difference Fair Value Unpaid Principal Balance Difference Residential whole loans, at fair value Total loans $ 775,152 $ 907,311 $ (132,159 ) $ 814,682 $ 966,174 $ (151,492 ) Loans 90 days or more past due $ 523,637 $ 626,554 $ (102,917 ) $ 570,025 $ 695,282 $ (125,257 )
Schedule of carrying value and fair value of financial instruments	The following table presents the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (In Thousands) Financial Assets: Agency MBS $ 3,494,614 $ 3,494,614 $ 3,738,497 $ 3,738,497 Non-Agency MBS, including MBS transferred to consolidated VIEs 5,468,178 5,468,178 5,825,816 5,825,816 CRT securities 498,067 498,067 404,850 404,850 Securities obtained and pledged as collateral 371,333 371,333 510,767 510,767 Residential whole loans, at carrying value 573,715 608,209 590,540 621,548 Residential whole loans, at fair value 775,152 775,152 814,682 814,682 Cash and cash equivalents 421,572 421,572 260,112 260,112 Restricted cash 10,980 10,980 58,463 58,463 Corporate loan 93,002 93,002 85,800 85,800 Swaps 119 119 233 233 Financial Liabilities (1) : Repurchase agreements 8,137,102 8,137,251 8,472,268 8,472,078 FHLB advances — — 215,000 215,000 Obligation to return securities obtained as collateral 510,733 510,733 510,767 510,767 Senior Notes 96,743 100,591 96,733 101,111 Swaps — — 46,954 46,954 (1) Carrying value of Senior Notes and certain repurchase agreements is net of associated debt issuance costs.

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2017segment
Accounting Policies [Abstract]
Number of reportable segments	1
Number of operating segments	1

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Residential Whole Loans (Details)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Number of days considered to classify loans delinquent	60 days
LTV ratio percentage (or less than)	80.00%

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Overnight money market funds	$ 382,600	$ 208,900
Restricted cash	$ 10,980	$ 58,463

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Goodwill	$ 7,189	$ 7,189

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Depreciation (Details) - Furniture, fixtures, computers and related hardwares	3 Months Ended
	Mar. 31, 2017
Low end of range
Estimated useful life of long-lived assets
Estimated useful life	5 years
High end of range
Estimated useful life of long-lived assets
Estimated useful life	8 years

Summary of Significant Accoun42

Summary of Significant Accounting Policies - Repurchase Agreements (Details)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Repurchase financing period, low end of range	1 month
Repurchase financing period, high end of range	6 months

Summary of Significant Accoun43

Summary of Significant Accounting Policies - Equity Based Compensation (Details) - RSUs	36 Months Ended	39 Months Ended
	Dec. 31, 2013	Mar. 31, 2017
Share based compensation
Vesting period of restricted share units (RSUs)		3 years
Period for measuring market condition of award	3 years	3 years
Minimum
Share based compensation
Vesting period of restricted share units (RSUs)	1 year
Maximum
Share based compensation
Vesting period of restricted share units (RSUs)	3 years

Summary of Significant Accoun44

Summary of Significant Accounting Policies - Income Tax (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Percentage of annual REIT taxable income distributed to stockholders	100.00%
REIT income tax expense	$ 0
Deferred income tax expense (benefit)	$ 0	$ 0

MBS and CRT Securities (Details

MBS and CRT Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Schedule of MBS and CRT Securities [Line Items]
Minimum term of fixed rate mortgages underlying MBS, years	15 years
Principal/ Current Face	$ 9,608,891	$ 10,172,893
Purchase Premiums	131,077	138,551
Accretable Purchase Discounts	(274,649)	(283,799)
Discount Designated as Credit Reserve and OTTI	(653,337)	(694,241)
Amortized Cost	8,813,035	9,336,008
Fair Value	9,460,859	9,969,163
Gross Unrealized Gains	682,327	669,553
Gross Unrealized Losses	(34,503)	(36,398)
Net Unrealized Gain/(Loss)	647,824	633,155
Principal payments receivable	1,100	2,600
Total MBS
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	9,141,005	9,787,900
Purchase Premiums	126,918	135,239
Accretable Purchase Discounts	(269,774)	(278,242)
Discount Designated as Credit Reserve and OTTI	(653,337)	(694,241)
Amortized Cost	8,345,865	8,953,260
Fair Value	8,962,792	9,564,313
Gross Unrealized Gains	651,352	647,448
Gross Unrealized Losses	(34,425)	(36,395)
Net Unrealized Gain/(Loss)	616,927	611,053
Agency MBS
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	3,355,341	3,581,302
Purchase Premiums	126,861	135,182
Accretable Purchase Discounts	(49)	(51)
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	3,483,206	3,719,037
Fair Value	3,494,614	3,738,497
Gross Unrealized Gains	43,541	50,653
Gross Unrealized Losses	(32,133)	(31,193)
Net Unrealized Gain/(Loss)	11,408	19,460
Agency MBS | Fannie Mae
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	2,686,996	2,879,807
Purchase Premiums	101,284	108,310
Accretable Purchase Discounts	(49)	(51)
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	2,788,231	2,988,066
Fair Value	2,808,236	3,014,464
Gross Unrealized Gains	39,653	45,706
Gross Unrealized Losses	(19,648)	(19,308)
Net Unrealized Gain/(Loss)	20,005	26,398
Agency MBS | Freddie Mac
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	661,114	693,945
Purchase Premiums	25,447	26,736
Accretable Purchase Discounts	0	0
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	687,614	723,285
Fair Value	678,899	716,209
Gross Unrealized Gains	3,770	4,809
Gross Unrealized Losses	(12,485)	(11,885)
Net Unrealized Gain/(Loss)	(8,715)	(7,076)
Agency MBS | Ginnie Mae
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	7,231	7,550
Purchase Premiums	130	136
Accretable Purchase Discounts	0	0
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	7,361	7,686
Fair Value	7,479	7,824
Gross Unrealized Gains	118	138
Gross Unrealized Losses	0	0
Net Unrealized Gain/(Loss)	118	138
Non-Agency MBS
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	5,785,664	6,206,598
Purchase Premiums	57	57
Accretable Purchase Discounts	(269,725)	(278,191)
Discount Designated as Credit Reserve and OTTI	(653,337)	(694,241)
Amortized Cost	4,862,659	5,234,223
Fair Value	5,468,178	5,825,816
Gross Unrealized Gains	607,811	596,795
Gross Unrealized Losses	(2,292)	(5,202)
Net Unrealized Gain/(Loss)	605,519	591,593
Credit Reserve	636,200	675,600
OTTI	17,100	18,600
Non-Agency MBS | Expected to Recover Par
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	2,640,311	2,847,398
Purchase Premiums	57	57
Accretable Purchase Discounts	(23,788)	(24,273)
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	2,616,580	2,823,182
Fair Value	2,643,478	2,847,291
Gross Unrealized Gains	27,882	26,477
Gross Unrealized Losses	(984)	(2,368)
Net Unrealized Gain/(Loss)	26,898	24,109
Non-Agency MBS | Expected to Recover Less Than Par
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	3,145,353	3,359,200
Purchase Premiums	0	0
Accretable Purchase Discounts	(245,937)	(253,918)
Discount Designated as Credit Reserve and OTTI	(653,337)	(694,241)
Amortized Cost	2,246,079	2,411,041
Fair Value	2,824,700	2,978,525
Gross Unrealized Gains	579,929	570,318
Gross Unrealized Losses	(1,308)	(2,834)
Net Unrealized Gain/(Loss)	$ 578,621	$ 567,484
Percentage of current face amount of Non-Agency MBS to be recovered	89.00%	89.00%
CRT securities
Schedule of MBS and CRT Securities [Line Items]
Principal/ Current Face	$ 467,886	$ 384,993
Purchase Premiums	4,159	3,312
Accretable Purchase Discounts	(4,875)	(5,557)
Discount Designated as Credit Reserve and OTTI	0	0
Amortized Cost	467,170	382,748
Fair Value	498,067	404,850
Gross Unrealized Gains	30,975	22,105
Gross Unrealized Losses	(78)	(3)
Net Unrealized Gain/(Loss)	30,897	22,102
CRT securities | Fair value option elected, debt securities
Schedule of MBS and CRT Securities [Line Items]
Fair Value	362,100	271,200
Gross Unrealized Gains	18,400	12,700
Gross Unrealized Losses	$ (78)
Net Unrealized Gain/(Loss)		(3)
3 Year Step-up securities
Schedule of MBS and CRT Securities [Line Items]
Debt instrument, basis spread on variable rate	3.00%
Debt instrument, coupon step-up period	36 months
Principal/ Current Face	$ 2,500,000	2,700,000
Amortized Cost	2,400,000	2,700,000
Fair Value	$ 2,500,000	$ 2,700,000

MBS and CRT Securities (Detai46

MBS and CRT Securities (Details 2)	3 Months Ended
	Mar. 31, 2017USD ($)Security	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Fair Value
Less than 12 Months	$ 890,140,000
12 Months or more	1,275,967,000
Total	2,166,107,000
Unrealized Losses
Less than 12 Months	8,801,000
12 Months or more	25,702,000
Total	$ 34,503,000
Number of Securities
Less than 12 months (in security) | Security	137
12 months or more (in security) | Security	240
Gross Unrealized Losses	$ 34,503,000		$ 36,398,000
Total OTTI losses	(63,000)	$ 0
OTTI reclassified from OCI	(351,000)	0
Net Impairment Losses Recognized in Earnings	(414,000)	0
Roll-forward of the credit loss component of OTTI
Credit loss component of OTTI at beginning of period	37,305,000	36,820,000
Additions for credit related OTTI not previously recognized	63,000	0
Subsequent additional credit related OTTI recorded	351,000	0
Credit loss component of OTTI at end of period	37,719,000	36,820,000
AOCI from AFS Securities:
Unrealized gain on AFS securities at beginning of period	620,403,000	585,250,000
Reclassification adjustment for MBS sales included in net income	(9,971,000)	(10,485,000)
Reclassification adjustment for OTTI included in net income	(414,000)	0
Change in AOCI from AFS securities	9,084,000	(56,099,000)
Balance at end of period	629,487,000	529,151,000
Total MBS
Fair Value
Less than 12 Months	865,190,000
12 Months or more	1,275,967,000
Total	2,141,157,000
Unrealized Losses
Less than 12 Months	8,723,000
12 Months or more	25,702,000
Total	$ 34,425,000
Number of Securities
Less than 12 months (in security) | Security	136
12 months or more (in security) | Security	240
Gross Unrealized Losses	$ 34,425,000		36,395,000
Agency MBS
Fair Value
Less than 12 Months	654,435,000
12 Months or more	1,099,246,000
Total	1,753,681,000
Unrealized Losses
Less than 12 Months	8,244,000
12 Months or more	23,889,000
Total	$ 32,133,000
Number of Securities
Less than 12 months (in security) | Security	130
12 months or more (in security) | Security	219
Gross Unrealized Losses	$ 32,133,000		31,193,000
AOCI from AFS Securities:
Unrealized (loss)/gain on AFS securities, net	(8,052,000)	13,226,000
MBS and CRT Securities Interest Income
Coupon interest	26,212,000	32,132,000
Effective yield adjustment	(8,318,000)	(8,135,000)
Interest income	17,894,000	23,997,000
Agency MBS | Fannie Mae
Fair Value
Less than 12 Months	385,791,000
12 Months or more	862,234,000
Total	1,248,025,000
Unrealized Losses
Less than 12 Months	2,985,000
12 Months or more	16,663,000
Total	$ 19,648,000
Number of Securities
Less than 12 months (in security) | Security	82
12 months or more (in security) | Security	154
Gross Unrealized Losses	$ 19,648,000		19,308,000
Agency MBS | Freddie Mac
Fair Value
Less than 12 Months	268,644,000
12 Months or more	237,012,000
Total	505,656,000
Unrealized Losses
Less than 12 Months	5,259,000
12 Months or more	7,226,000
Total	$ 12,485,000
Number of Securities
Less than 12 months (in security) | Security	48
12 months or more (in security) | Security	65
Gross Unrealized Losses	$ 12,485,000		11,885,000
Non-Agency MBS
Fair Value
Less than 12 Months	210,755,000
12 Months or more	176,721,000
Total	387,476,000
Unrealized Losses
Less than 12 Months	479,000
12 Months or more	1,813,000
Total	$ 2,292,000
Number of Securities
Less than 12 months (in security) | Security	6
12 months or more (in security) | Security	21
Gross Unrealized Losses	$ 2,292,000		5,202,000
Credit-related OTTI losses		0
AOCI from AFS Securities:
Unrealized (loss)/gain on AFS securities, net	27,521,000	(58,840,000)
Sales of MBS
Proceeds from sale of MBS categorized as available-for-sale	21,600,000	32,000,000
Gains on sales of MBS	10,000,000	9,700,000
Non-Agency MBS | Discount Designated as Credit Reserve and OTTI
Changes in the components of the purchase discount on Non-Agency MBS
Balance at beginning of period	(694,241,000)	(787,541,000)
Accretion of discount	0	0
Realized credit losses	12,324,000	18,050,000
Purchases	0	(4,294,000)
Sales	19,741,000	12,020,000
Net impairment losses recognized in earnings	(414,000)	0
Transfers/release of credit reserve	9,253,000	4,201,000
Balance at end of period	(653,337,000)	(757,564,000)
Non-Agency MBS | Accretable Discount
Changes in the components of the purchase discount on Non-Agency MBS
Balance at beginning of period	(278,191,000)	(312,182,000)
Accretion of discount	21,616,000	21,406,000
Realized credit losses	0	0
Purchases	0	1,606,000
Sales	(3,897,000)	12,040,000
Net impairment losses recognized in earnings	0	0
Transfers/release of credit reserve	(9,253,000)	(4,201,000)
Balance at end of period	(269,725,000)	(281,331,000)
Non-Agency MBS | Expected to Recover Par
Fair Value
Less than 12 Months	207,251,000
12 Months or more	126,702,000
Total	333,953,000
Unrealized Losses
Less than 12 Months	399,000
12 Months or more	585,000
Total	$ 984,000
Number of Securities
Less than 12 months (in security) | Security	4
12 months or more (in security) | Security	12
Gross Unrealized Losses	$ 984,000		2,368,000
Non-Agency MBS | Expected to Recover Less Than Par
Fair Value
Less than 12 Months	3,504,000
12 Months or more	50,019,000
Total	53,523,000
Unrealized Losses
Less than 12 Months	80,000
12 Months or more	1,228,000
Total	$ 1,308,000
Number of Securities
Less than 12 months (in security) | Security	2
12 months or more (in security) | Security	9
Gross Unrealized Losses	$ 1,308,000		2,834,000
Legacy Non-Agency MBS
MBS and CRT Securities Interest Income
Coupon interest	34,662,000	40,309,000
Effective yield adjustment	21,442,000	19,913,000
Interest income	56,104,000	60,222,000
3 Year Step-up securities
MBS and CRT Securities Interest Income
Coupon interest	25,965,000	24,370,000
Effective yield adjustment	174,000	1,560,000
Interest income	26,139,000	25,930,000
CRT securities
Fair Value
Less than 12 Months	24,950,000
12 Months or more	0
Total	24,950,000
Unrealized Losses
Less than 12 Months	78,000
12 Months or more	0
Total	$ 78,000
Number of Securities
Less than 12 months (in security) | Security	1
12 months or more (in security) | Security	0
Gross Unrealized Losses	$ 78,000		$ 3,000
MBS and CRT Securities Interest Income
Coupon interest	5,257,000	2,356,000
Effective yield adjustment	1,119,000	336,000
Interest income	6,376,000	$ 2,692,000
CRT securities | Fair value option elected, debt securities
Fair Value
Total	25,000,000
Number of Securities
Gross Unrealized Losses	$ 78,000

Residential Whole Loans - Narra

Residential Whole Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Total Residential Whole Loans	$ 1,300,000		$ 1,405,200
Equity interest in certificates	100.00%
Residential whole loans at carrying value	$ 573,715		590,540
Number of Residential whole loans at carrying value	3,150		3,226
Allowance for loan losses, residential whole loan at carrying value	769	$ 1,128	$ 990	$ 1,165
(Reversal of)/Provision for loan losses, residential whole loan at carrying value	$ 221	$ 37

Residential Whole Loans - Provi

Residential Whole Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Balance at the beginning of period	$ 990	$ 1,165
Reversal of provisions for loan losses	(221)	(37)
Balance at the end of period	$ 769	$ 1,128

Residential Whole Loans - Carry

Residential Whole Loans - Carrying Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest component of expected cash flows (accretable yield)	$ 0	$ (58,509)
QTD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractually required principal and interest	0	199,092
Contractual cash flows not expected to be collected (non-accretable yield)	0	(28,663)
Expected cash flows to be collected	0	170,429
Interest component of expected cash flows (accretable yield)	0	(58,509)
Fair value at the date of acquisition	$ 0	$ 111,920

Residential Whole Loans - Car50

Residential Whole Loans - Carrying Value Accretable Yield Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Residential Whole Loans Accretable Yield [Roll Forward]
Balance at beginning of period	$ 334,379	$ 175,271
Additions	0	58,509
Accretion	(8,690)	(4,436)
Reclassifications (to)/from non-accretable difference, net	(138)	64
Balance at end of period	$ 325,551	$ 229,408

Residential Whole Loans - Fair

Residential Whole Loans - Fair Value (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Investments, Debt and Equity Securities [Abstract]
Outstanding principal balance	$ 907,312	$ 966,276
Aggregate fair value	$ 775,152	$ 814,682
Number of loans | loan	3,558	3,812

Residential Whole Loans - Fai52

Residential Whole Loans - Fair Value Components of Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Coupon payments and other income received	$ 8,173	$ 4,401
Net unrealized gains	2,948	6,226
Net gain on payoff/liquidation of loans	868	1,254
Net gain on transfer to REO	1,784	467
Total	$ 13,773	$ 12,348

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Other Assets [Abstract]
REO	$ 98,708	$ 80,503	$ 43,291	$ 28,026
Corporate loan	93,002	85,800
Interest receivable	27,465	27,795
Swaps, at fair value	119	233
Goodwill	7,189	7,189
Prepaid and other assets	60,012	78,775
Total Other Assets	$ 286,495	$ 280,295

Other Assets - Real Estate Owne

Other Assets - Real Estate Owned (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)property	Mar. 31, 2016USD ($)property	Dec. 31, 2016USD ($)property	Dec. 31, 2015USD ($)
Real Estate Owned Properties [Line Items]
Number of real estate owned properties | property	542		447
Real estate owned	$ 98,708	$ 43,291	$ 80,503	$ 28,026
Number of real estate properties reclassified to REO during period | property	179	138
Mortgage loans reclassified to REO	$ 31,098	$ 22,280
Residential Whole Loans acquired through foreclosure ordered in lieu	$ 97,700
Number of REO properties sold during period | property	84	50
Proceeds from sale of real estate owned	$ 12,700	$ 6,200
Gains/(losses) on sales of real estate owned	875	509
Adjustments to record at lower of cost or fair value	1,823	1,777
Estimated Fair Value
Real Estate Owned Properties [Line Items]
Mortgage loans reclassified to REO	31,100	$ 22,300
Mortgage loans in process of foreclosure	467,900
Carrying Value
Real Estate Owned Properties [Line Items]
Mortgage loans in process of foreclosure	$ 29,200

Other Assets - Real Estate Ow55

Other Assets - Real Estate Owned - Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Real Estate Owned [Roll Forward]
Balance at beginning of period	$ 80,503	$ 28,026
Adjustments to record at lower of cost or fair value	(1,823)	(1,777)
Transfer from residential whole loans	31,098	22,280
Purchases and capital improvements	774	410
Disposals	(11,844)	(5,648)
Balance at end of period	98,708	43,291
Gain recorded on transfer from residential whole loans to real estate owned	$ 1,300	$ 441

Other Assets - Corporate Loan (

Other Assets - Corporate Loan (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Commitment to lend	$ 130
Amount drawn	$ 93.9
Interest coupon rate	7.50%
Remaining term	3 years 3 months 18 days
Commitment period on undrawn amount	1 year 2 months 12 days
Commitment fee income	1.00%

Other Assets - Derivative Instr

Other Assets - Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative Instruments
Derivative assets, fair value	$ 119	$ 233
Non-cleared Interest Rate Swap | Hedging | Assets
Derivative Instruments
Notional amount of derivative assets	300,000	350,000
Derivative assets, fair value	119	233
Cleared Interest Rate Swap | Hedging | Liabilities
Derivative Instruments
Notional amount of derivative liabilities	2,550,000	2,550,000
Derivative liabilities, at fair value	$ 0	$ (46,954)

Other Assets - Derivative Ins58

Other Assets - Derivative Instruments (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)derivative	Mar. 31, 2016USD ($)derivative	Dec. 31, 2016USD ($)
Derivative [Line Items]
Number of swaps in default or early termination that would trigger counterparty to terminate all swaps | derivative	1
Assets Pledged	$ 9,908,229		$ 10,620,406
Number of terminated derivatives | derivative	0	0
Interest expense attributable to Swaps	$ 50,349	$ 47,600
AOCI from derivative hedging instruments:
Balance at beginning of period	(46,721)	(69,399)
Net gain/(loss) on Swaps	11,897	(49,342)
Balance at end of period	(34,824)	(118,741)
Interest Rate Contract
Derivative [Line Items]
Assets Pledged	35,881		86,317
Interest Rate Contract | Agency MBS, at fair value
Derivative [Line Items]
Assets Pledged	31,125		32,468
Interest Rate Contract | Restricted cash
Derivative [Line Items]
Assets Pledged	4,756		53,849
Swaps, at fair value
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 2,850,000		$ 2,900,000
Weighted average fixed-pay rate	1.89%		1.87%
Weighted Average Variable Interest Rate	0.94%		0.72%
Interest expense attributable to Swaps	$ 7,809	$ 10,650
Weighted average Swap rate paid	1.88%	1.82%
Weighted average Swap rate received	0.79%	0.42%
Swaps, at fair value | Within 30 days
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 0		$ 0
Weighted average fixed-pay rate	0.00%		0.00%
Weighted Average Variable Interest Rate	0.00%		0.00%
Swaps, at fair value | Over 30 days to 3 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 300,000		$ 50,000
Weighted average fixed-pay rate	0.57%		0.67%
Weighted Average Variable Interest Rate	0.84%		0.64%
Swaps, at fair value | Over 3 months to 6 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 0		$ 300,000
Weighted average fixed-pay rate	0.00%		0.57%
Weighted Average Variable Interest Rate	0.00%		0.66%
Swaps, at fair value | Over 6 months to 12 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 0		$ 0
Weighted average fixed-pay rate	0.00%		0.00%
Weighted Average Variable Interest Rate	0.00%		0.00%
Swaps, at fair value | Over 12 months to 24 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 650,000		$ 550,000
Weighted average fixed-pay rate	1.53%		1.49%
Weighted Average Variable Interest Rate	0.93%		0.71%
Swaps, at fair value | Over 24 months to 36 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 100,000		$ 200,000
Weighted average fixed-pay rate	1.71%		1.71%
Weighted Average Variable Interest Rate	0.98%		0.76%
Swaps, at fair value | Over 36 months to 48 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 1,600,000		$ 1,500,000
Weighted average fixed-pay rate	2.22%		2.22%
Weighted Average Variable Interest Rate	0.96%		0.74%
Swaps, at fair value | Over 48 months to 60 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 100,000		$ 200,000
Weighted average fixed-pay rate	2.21%		2.20%
Weighted Average Variable Interest Rate	0.98%		0.75%
Swaps, at fair value | Over 60 months to 72 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 0		$ 0
Weighted average fixed-pay rate	0.00%		0.00%
Weighted Average Variable Interest Rate	0.00%		0.00%
Swaps, at fair value | Over 72 months to 84 months
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 100,000		$ 100,000
Weighted average fixed-pay rate	2.75%		2.75%
Weighted Average Variable Interest Rate	0.98%		0.74%
Swaps, at fair value | Over 84 Months
Derivative [Line Items]
Number of instruments held | derivative	1
Swaps, at fair value | Hedging
Derivative [Line Items]
Aggregate notional amount of derivatives	$ 2,900,000
Average maturity term of swaps	32 months
Swaps, at fair value | Minimum | LIBOR
Derivative [Line Items]
Derivative, variable interest rate, term	1 month
Swaps, at fair value | Maximum | Hedging
Derivative [Line Items]
Maximum maturity term of swaps	77 months
Swaps, at fair value | Maximum | LIBOR
Derivative [Line Items]
Derivative, variable interest rate, term	3 months
New Swaps
Derivative [Line Items]
Number of new Swaps | derivative	0
Aggregate notional amount	$ 0
Swaps amortized expired
Derivative [Line Items]
Aggregate notional amount	$ 50,000
Swaps amortized expired | QTD
Derivative [Line Items]
Weighted average fixed-pay rate	0.67%

Repurchase Agreements and Oth59

Repurchase Agreements and Other Advances (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Assets Sold under Agreements to Repurchase [Line Items]
Unamortized debt issuance expense	$ 441	$ 210
Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Weighted average remaining term-to-interest rate reset of borrowings under repurchase agreements, days	17 days	19 days
Effective repricing period, months	12 months	12 months
Balance of repurchase agreements	$ 8,137,543	$ 8,472,478
Unamortized debt issuance expense	441	210
Agency MBS | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	3,093,737	3,095,020
Fair value of securities pledged as collateral under repurchase agreements	$ 3,330,251	$ 3,280,689
Weighted average haircut (percent)	4.56%	4.67%
Legacy Non-Agency MBS | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 1,573,545	$ 1,690,937
Fair value of securities pledged as collateral under repurchase agreements	$ 2,070,626	$ 2,317,708
Weighted average haircut (percent)	22.44%	24.01%
Non-Agency MBS acquired from consolidated VIEs		$ 172,400
3 Year Step-up securities | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 1,875,157	2,035,531
Fair value of securities pledged as collateral under repurchase agreements	$ 2,376,119	$ 2,574,691
Weighted average haircut (percent)	21.52%	21.70%
U.S. Treasury securities | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 366,475	$ 504,572
Fair value of securities pledged as collateral under repurchase agreements	$ 371,333	$ 510,767
Weighted average haircut (percent)	1.73%	1.60%
CRT securities | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 345,482	$ 271,205
Fair value of securities pledged as collateral under repurchase agreements	$ 446,231	$ 357,488
Weighted average haircut (percent)	22.36%	23.22%
Residential whole loans | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 836,203	$ 832,060
Fair value of securities pledged as collateral under repurchase agreements	$ 1,178,562	$ 1,175,088
Weighted average haircut (percent)	25.16%	25.03%
Other investments | Securities Sold under Agreements to Repurchase
Assets Sold under Agreements to Repurchase [Line Items]
Balance of repurchase agreements	$ 46,944	$ 43,333
Fair value of securities pledged as collateral under repurchase agreements	$ 93,002	$ 85,800
Weighted average haircut (percent)	50.00%	50.00%

Repurchase Agreements and Oth60

Repurchase Agreements and Other Advances (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Information about MBS [Line Items]
Less unamortized debt issuance costs	$ 441	$ 210
Securities Sold under Agreements to Repurchase, Amounts Not Included in Offsetting Disclosure	0
Repurchase Agreement Borrowings
Information about MBS [Line Items]
Balance of repurchase agreements	$ 8,137,543	$ 8,472,478
Weighted Average Interest Rate	1.91%	1.48%
Less unamortized debt issuance costs	$ 441	$ 210
Total repurchase agreements less debt issuance costs	8,137,102	8,472,268
Repurchase Agreement Borrowings | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	$ 0
Weighted Average Interest Rate	0.00%
Repurchase Agreement Borrowings | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	$ 5,656,600
Weighted Average Interest Rate	1.56%
Repurchase Agreement Borrowings | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	$ 658,265
Weighted Average Interest Rate	2.41%
Repurchase Agreement Borrowings | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	$ 1,792,070
Weighted Average Interest Rate	2.80%
Repurchase Agreement Borrowings | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	$ 30,608
Weighted Average Interest Rate	3.36%
Repurchase Agreement Borrowings | Agency MBS
Information about MBS [Line Items]
Balance of repurchase agreements	$ 3,093,737	3,095,020
Repurchase Agreement Borrowings | Agency MBS | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Agency MBS | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	3,093,737
Repurchase Agreement Borrowings | Agency MBS | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Agency MBS | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Agency MBS | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Legacy Non-Agency MBS
Information about MBS [Line Items]
Balance of repurchase agreements	1,573,545	1,690,937
Repurchase Agreement Borrowings | Legacy Non-Agency MBS | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Legacy Non-Agency MBS | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	926,866
Repurchase Agreement Borrowings | Legacy Non-Agency MBS | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	336,316
Repurchase Agreement Borrowings | Legacy Non-Agency MBS | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	310,363
Repurchase Agreement Borrowings | Legacy Non-Agency MBS | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | 3 Year Step-up securities
Information about MBS [Line Items]
Balance of repurchase agreements	1,875,157	2,035,531
Repurchase Agreement Borrowings | 3 Year Step-up securities | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | 3 Year Step-up securities | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	894,904
Repurchase Agreement Borrowings | 3 Year Step-up securities | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	304,141
Repurchase Agreement Borrowings | 3 Year Step-up securities | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	676,112
Repurchase Agreement Borrowings | 3 Year Step-up securities | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | U.S. Treasuries
Information about MBS [Line Items]
Balance of repurchase agreements	366,475	504,572
Repurchase Agreement Borrowings | U.S. Treasuries | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | U.S. Treasuries | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	366,475
Repurchase Agreement Borrowings | U.S. Treasuries | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | U.S. Treasuries | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | U.S. Treasuries | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | CRT securities
Information about MBS [Line Items]
Balance of repurchase agreements	345,482	271,205
Repurchase Agreement Borrowings | CRT securities | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | CRT securities | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	327,674
Repurchase Agreement Borrowings | CRT securities | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	17,808
Repurchase Agreement Borrowings | CRT securities | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | CRT securities | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Residential whole loans
Information about MBS [Line Items]
Balance of repurchase agreements	836,203	832,060
Repurchase Agreement Borrowings | Residential whole loans | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Residential whole loans | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Residential whole loans | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Residential whole loans | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	805,595
Repurchase Agreement Borrowings | Residential whole loans | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	30,608
Repurchase Agreement Borrowings | Other investments
Information about MBS [Line Items]
Balance of repurchase agreements	46,944	43,333
Repurchase Agreement Borrowings | Other investments | Overnight
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Other investments | Within 30 Days
Information about MBS [Line Items]
Balance of repurchase agreements	46,944
Repurchase Agreement Borrowings | Other investments | Over 30 Days to 3 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Other investments | Over 3 Months to 12 Months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Other investments | Over 12 months
Information about MBS [Line Items]
Balance of repurchase agreements	0
Repurchase Agreement Borrowings | Within 30 days
Information about MBS [Line Items]
Balance of repurchase agreements	$ 7,502,995	$ 7,284,062
Weighted Average Interest Rate	1.86%	1.77%
Repurchase Agreement Borrowings | Over 30 days to 3 months
Information about MBS [Line Items]
Balance of repurchase agreements	$ 634,548	$ 1,188,416
Weighted Average Interest Rate	2.41%	1.91%

Repurchase Agreements and Oth61

Repurchase Agreements and Other Advances (Details 3) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)counterparty	Dec. 31, 2016counterparty
Repurchase agreements counterparty risk
Number of counterparties | counterparty	31	31
Threshold of stockholders' equity at risk with single counterparty to repurchase agreements or linked transactions (greater than) (percent)	5.00%
Wells Fargo
Repurchase agreements counterparty risk
Amount at Risk	$ 262,489
Weighted Average Months to Maturity for Repurchase Agreements	6 months
Percent of Stockholders’ Equity	8.60%
Wells Fargo Bank
Repurchase agreements counterparty risk
Amount at Risk	$ 248,700
Wells Fargo Securities LLC
Repurchase agreements counterparty risk
Amount at Risk	13,800
Credit Suisse
Repurchase agreements counterparty risk
Amount at Risk	$ 244,263
Weighted Average Months to Maturity for Repurchase Agreements	6 months
Percent of Stockholders’ Equity	8.00%
Credit Suisse AG
Repurchase agreements counterparty risk
Amount at Risk	$ 196,700
Credit Suisse
Repurchase agreements counterparty risk
Amount at Risk	47,500
RBC
Repurchase agreements counterparty risk
Amount at Risk	$ 241,521
Weighted Average Months to Maturity for Repurchase Agreements	1 month
Percent of Stockholders’ Equity	7.90%
RBC Barbados
Repurchase agreements counterparty risk
Amount at Risk	$ 226,800
Royal Bank of Canada
Repurchase agreements counterparty risk
Amount at Risk	9,300
RBC Capital Markets LLC
Repurchase agreements counterparty risk
Amount at Risk	5,400
Goldman Sachs
Repurchase agreements counterparty risk
Amount at Risk	$ 210,562
Weighted Average Months to Maturity for Repurchase Agreements	1 month
Percent of Stockholders’ Equity	6.90%
UBS
Repurchase agreements counterparty risk
Amount at Risk	$ 167,321
Weighted Average Months to Maturity for Repurchase Agreements	14 months
Percent of Stockholders’ Equity	5.50%

Repurchase Agreements and Oth62

Repurchase Agreements and Other Advances - FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
FHLB advances, long-term		$ 215,000
Accrued interest payable	$ 13,648	14,129
Federal Home Loan Bank Advances
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Accrued interest payable		$ 42
Weighted Average
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
FHLB advances, weighted average borrowing rate		0.78%

Collateral Positions (Details)

Collateral Positions (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Collateral Positions
Assets Pledged	$ 9,908,229	$ 10,620,406
Collateral Held	510,733	510,767
Derivative Hedging Instruments
Collateral Positions
Assets Pledged	35,881	86,317
Derivative Hedging Instruments | Agency MBS
Collateral Positions
Assets Pledged	31,125	32,468
Derivative Hedging Instruments | Cash
Collateral Positions
Assets Pledged	4,756	53,849
Repurchase Agreement Borrowings
Collateral Positions
Assets Pledged	9,872,348	10,306,845
Repurchase Agreement Borrowings | Agency MBS
Collateral Positions
Assets Pledged	3,330,251	3,280,689
Repurchase Agreement Borrowings | Legacy Non-Agency MBS
Collateral Positions
Assets Pledged	2,070,626	2,317,708
Non-Agency MBS acquired from consolidated VIEs		172,400
Non-Agency MBS pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty	687,800	688,200
Repurchase Agreement Borrowings | 3 Year Step-up securities
Collateral Positions
Assets Pledged	2,376,119	2,574,691
Repurchase Agreement Borrowings | U.S. Treasury securities
Collateral Positions
Assets Pledged	371,333	510,767
Repurchase Agreement Borrowings | CRT securities
Collateral Positions
Assets Pledged	446,231	357,488
Repurchase Agreement Borrowings | Residential whole loans
Collateral Positions
Assets Pledged	1,178,562	1,175,088
Repurchase Agreement Borrowings | Other investments
Collateral Positions
Assets Pledged	93,002	85,800
Repurchase Agreement Borrowings | Cash
Collateral Positions
Assets Pledged	6,224	4,614
FHLB Advances
Collateral Positions
Assets Pledged	0	227,244
FHLB Advances | Agency MBS
Collateral Positions
Assets Pledged	0	227,244
Reverse Repurchase Agreements
Collateral Positions
Collateral Held	510,733	510,767
Reverse Repurchase Agreements | U.S. Treasury securities
Collateral Positions
Collateral Held	$ 510,733	$ 510,767

Collateral Positions (Details 2

Collateral Positions (Details 2) $ in Thousands	Mar. 31, 2017USD ($)
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	$ 9,930,611
Agency MBS
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	3,369,784
Legacy Non-Agency MBS
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	2,078,352
3 Year Step-up securities
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	2,377,655
U.S. Treasury securities
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	371,333
CRT securities
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	446,510
Residential whole loans
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	1,182,423
Other investments
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	93,574
Cash
Collateral Positions
Total Fair Value of Assets Pledged and Accrued Interest	10,980
Repurchase Agreements and Other Advances
Collateral Positions
Fair Value	9,872,348
Amortized Cost	9,412,132
Accrued Interest on Pledged Assets	22,318
Repurchase Agreements and Other Advances | Agency MBS
Collateral Positions
Fair Value	3,330,251
Amortized Cost	3,318,013
Accrued Interest on Pledged Assets	8,344
Repurchase Agreements and Other Advances | Legacy Non-Agency MBS
Collateral Positions
Fair Value	2,070,626
Amortized Cost	1,668,418
Accrued Interest on Pledged Assets	7,726
Non-Agency MBS pledged as collateral in connection with contemporaneous repurchase and reverse repurchase agreements entered into with a single counterparty	687,800
Repurchase Agreements and Other Advances | 3 Year Step-up securities
Collateral Positions
Fair Value	2,376,119
Amortized Cost	2,371,887
Accrued Interest on Pledged Assets	1,536
Repurchase Agreements and Other Advances | U.S. Treasury securities
Collateral Positions
Fair Value	371,333
Amortized Cost	374,081
Accrued Interest on Pledged Assets	0
Repurchase Agreements and Other Advances | CRT securities
Collateral Positions
Fair Value	446,231
Amortized Cost	417,091
Accrued Interest on Pledged Assets	279
Repurchase Agreements and Other Advances | Residential whole loans
Collateral Positions
Fair Value	1,178,562
Amortized Cost	1,163,416
Accrued Interest on Pledged Assets	3,861
Repurchase Agreements and Other Advances | Other investments
Collateral Positions
Fair Value	93,002
Amortized Cost	93,002
Accrued Interest on Pledged Assets	572
Repurchase Agreements and Other Advances | Cash
Collateral Positions
Fair Value	6,224
Amortized Cost	6,224
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments
Collateral Positions
Fair Value	35,881
Amortized Cost	36,673
Accrued Interest on Pledged Assets	64
Derivative Hedging Instruments | Agency MBS
Collateral Positions
Fair Value	31,125
Amortized Cost	31,917
Accrued Interest on Pledged Assets	64
Derivative Hedging Instruments | Legacy Non-Agency MBS
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | 3 Year Step-up securities
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | U.S. Treasury securities
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | CRT securities
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | Residential whole loans
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | Other investments
Collateral Positions
Fair Value	0
Amortized Cost	0
Accrued Interest on Pledged Assets	0
Derivative Hedging Instruments | Cash
Collateral Positions
Fair Value	4,756
Amortized Cost	4,756
Accrued Interest on Pledged Assets	0
Carrying Value | Repurchase Agreements and Other Advances | Residential whole loans
Collateral Positions
Fair Value	433,500
Amortized Cost	418,400
Total Fair Value of Assets Pledged and Accrued Interest	$ 745,000

Offsetting Assets and Liabili65

Offsetting Assets and Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)counterparty	Dec. 31, 2016USD ($)
Swaps, at fair value
Gross Amounts of Recognized Assets	$ 119	$ 233
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheets	119	233
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(119)	(233)
Cash Collateral Received	0	0
Net Amount	0	0
Swaps, at fair value
Gross Amounts of Recognized Liabilities	0	46,954
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets	0	46,954
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	0	0
Cash Collateral Pledged	0	(46,954)
Net Amount	0	0
Repurchase agreements and other advances
Gross Amounts of Recognized Liabilities	8,137,543	8,687,478
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets	8,137,543	8,687,478
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(8,131,319)	(8,682,864)
Cash Collateral Pledged	(6,224)	(4,614)
Net Amount	0	0
Total
Gross Amounts of Recognized Liabilities	8,137,543	8,734,432
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets	8,137,543	8,734,432
Gross Amounts Not Offset in the Consolidated Balance Sheet
Financial Instruments	(8,131,319)	(8,682,864)
Cash Collateral Pledged	(6,224)	(51,568)
Net Amount	0	0
Additional disclosures
Excess collateral	4,800	6,900
Fair value of securities pledged against the swaps	31,100	32,500
Fair value of financial instruments pledged against the repurchase agreements and other advances	9,900,000	10,500,000
Unamortized debt issuance expense	$ 441	210
Number of repurchase agreement counterparties with unconditional right of setoff | counterparty	1
Swaps, at fair value
Swaps, at fair value
Gross Amounts of Recognized Assets	$ 119	233
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheets	119	233
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(119)	(233)
Cash Collateral Received	0	0
Net Amount	$ 0	$ 0

Senior Notes (Details)

Senior Notes (Details) - Senior Notes - USD ($)	Apr. 11, 2012	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000
Proceed from senior notes net of offering expenses and underwriting discount	$ 96,600,000
Stated interest rate		8.00%	8.00%
Effective interest rate (as a percent)		8.31%
Redemption price as percentage of principal amount		100.00%

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Other Liabilities [Abstract]
Accrued interest payable	$ 13,648	$ 14,129
Swaps, at fair value (1)	0	46,954
Dividends and dividend equivalents payable	74,830	74,657	$ 74,583
Accrued expenses and other liabilities	11,103	19,612
Total Other Liabilities	$ 99,581	$ 155,352

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Mar. 31, 2017USD ($)lease
Lease Commitments
Number of operating leases | lease	2
Corporate headquarters
Lease Commitments
Irrevocable standby letter of credit provided to landlord	$ 785,000
Corporate headquarters | High end of range
Lease Commitments
Aggregate annual lease payments	2,500,000
Off-site back-up facility | High end of range
Lease Commitments
Aggregate annual lease payments	$ 32,000

Commitments and Contingencies69

Commitments and Contingencies (Corporate Loans) (Details) $ in Millions	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitment to lend	$ 130
Amount drawn	$ 93.9

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	Mar. 08, 2017$ / shares	Feb. 17, 2017$ / shares	Apr. 15, 2013$ / sharesshares	Mar. 31, 2017USD ($)directorquarter$ / sharesshares	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares	Sep. 16, 2016shares	Dec. 31, 2013shares	Aug. 31, 2005shares
Stockholders' Equity
Preferred stock, shares issued				8,000,000		8,000,000	8,000,000
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.01		$ 0.01	$ 0.01
Preferred stock, dividend rate				7.50%		7.50%
Maximum quarters without dividends to get voting rights, in quarters | quarter				6
Common stock, cash dividends declared (in dollars per share) | $ / shares	$ 0.20			$ 0.20	$ 0.20
Dividends and dividend equivalents declared and unpaid | $				$ 74,830	$ 74,583	$ 74,657	$ 74,830
Aggregate number of shares of common stock authorized (in shares)				886,950,000		886,950,000	886,950,000
Number of shares authorized to be repurchased under the Repurchase Program (in shares)									10,000,000	4,000,000
Repurchase of shares of common stock (in shares)				0
Number of remaining shares authorized to be repurchased under the Repurchase Program (in shares)				6,616,355			6,616,355
DRSPP
Stockholders' Equity
Aggregate number of shares of common stock authorized (in shares)								15,000,000
Shares of common stock authorized and available for issuance (in shares)				14,000,000			14,000,000
Common shares issued through DRSPP (in shares)				514,324			31,897,109
Net proceeds from shares issued through DRSPP | $				$ 4,000			$ 266,900
Series B
Stockholders' Equity
Dividend declared per share, preferred stock (in dollars per share) | $ / shares		$ 0.46875
Preferred Stock | Series B
Stockholders' Equity
Preferred stock, shares issued			8,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.01
Preferred stock, liquidation preference (in dollars per share) | $ / shares			$ 25	$ 25	$ 25		$ 25
Preferred stock, dividend rate			7.50%	7.50%	7.50%
Preferred stock, redemption price (in dollars per share) | $ / shares			$ 25
Number of additional directors that can be elected by preferred stock holders | director				2
Minimum percentage of preferred shareholders required for approval (percent)			66.67%

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Components of accumulated other comprehensive income/(loss)
Net OCI during the period	$ 20,981	$ (105,441)
Net Unrealized Gain/(Loss) on AFS Securities
Components of accumulated other comprehensive income/(loss)
Balance at beginning of period	620,403	585,250
OCI before reclassifications	19,469	(45,614)
Amounts reclassified from AOCI	(10,385)	(10,485)
Net OCI during the period	9,084	(56,099)
Balance at end of period	629,487	529,151
Net (Loss)/Gain on Swaps
Components of accumulated other comprehensive income/(loss)
Balance at beginning of period	(46,721)	(69,399)
OCI before reclassifications	11,897	(49,342)
Amounts reclassified from AOCI	0	0
Net OCI during the period	11,897	(49,342)
Balance at end of period	(34,824)	(118,741)
Total AOCI
Components of accumulated other comprehensive income/(loss)
Balance at beginning of period	573,682	515,851
OCI before reclassifications	31,366	(94,956)
Amounts reclassified from AOCI	(10,385)	(10,485)
Net OCI during the period	20,981	(105,441)
Balance at end of period	$ 594,663	$ 410,410

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Amounts Reclassified from AOCI
Realized gain on sale of securities	$ (9,971)	$ (10,485)
OTTI recognized in earnings	(414)	0
Accumulated Other Comprehensive Income/(Loss)
Unrealized losses recorded in AOCI on securities for which Other-than-temporary impairments had been recognized in earnings in prior periods	872		$ 1,700
Available-for-sale MBS
Amounts Reclassified from AOCI
Total reclassifications for period	(10,385)	(10,485)
Amounts Reclassified from AOCI
Amounts Reclassified from AOCI
OTTI recognized in earnings	(414)
Total AFS Securities	(10,385)	(10,485)
Amounts Reclassified from AOCI | Available-for-sale MBS
Amounts Reclassified from AOCI
Realized gain on sale of securities	(9,971)	(10,485)
Total reclassifications for period	$ (10,385)	$ (10,485)

EPS Calculation (Details)

EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income	$ 78,060	$ 78,070
Dividends declared on preferred stock	(3,750)	(3,750)
Dividends, dividend equivalents and undistributed earnings allocated to participating securities	(431)	(395)
Net income to common stockholders - basic and diluted	$ 73,879	$ 73,925
Denominator:
Weighted average common shares for basic and diluted earnings per share (in shares)	372,579,000	370,942,000
Basic and diluted earnings per share (in dollars per share)	$ 0.20	$ 0.20
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	2,300,000
Restricted shares of common stock
Denominator:
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	22,000
Weighted average grant date fair value (in dollars per share)	$ 7.12
RSUs
Denominator:
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	2,300,000
Weighted average grant date fair value (in dollars per share)	$ 6.50

Equity Compensation, Employme74

Equity Compensation, Employment Agreements and Other Benefit Plans (Allocated Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share based compensation
Allocated expense	$ 1,106	$ 1,134
RSUs
Share based compensation
Allocated expense	1,056	960
Restricted shares of common stock
Share based compensation
Allocated expense	50	152
Dividend equivalent rights
Share based compensation
Allocated expense	$ 0	$ 22

Equity Compensation, Employme75

Equity Compensation, Employment Agreements and Other Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Share based compensation
Maximum shares authorized for grant	12,000,000
Shares available for grant (in shares)	7,100,000
Accrued dividends payable	$ 74,830	$ 74,583	$ 74,657
RSUs
Share based compensation
Awards granted (in shares)	758,750	615,000
Forfeitures (in shares)	0	10,000
Unrecognized compensation cost	$ 7,800		3,600
Period for recognizing unrecognized compensation cost	2 years 3 months
Restricted shares of common stock
Share based compensation
Awards granted (in shares)	0	0
Unrecognized compensation cost	$ 153		203
Period for recognizing unrecognized compensation cost	9 months
Accrued dividends payable	$ 40		$ 55
Dividend equivalent rights
Share based compensation
Payments attributable to dividend equivalent rights	$ 2
Share-based awards outstanding (in shares)	0
Stock options
Share based compensation
Stock options, grants in period (in shares)	0	0
Stock options, outstanding (in shares)	0
Equity Compensation Plan
Share based compensation
Maximum number of common shares that can be granted to participant in any one year	1,500,000
Period during which a participant can be awarded the maximum number of shares allowable under the Plan	1 year
Maximum percentage of common shares that can be owned or deemed to be owned by a participant (more than)	9.80%

Equity Compensation, Employme76

Equity Compensation, Employment Agreements and Other Benefit Plans (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)officer	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Deferred Compensation Activity
Number of officers having employment agreements with the company | officer	4
Deferred Compensation Plans
Deferred Compensation Activity
Deferrable compensation by the employee, maximum	100.00%
Non-employee directors	$ 114	$ 49
Undistributed Income Deferred	1,208		$ 1,066
Liability Under Deferred Plans	1,519		1,263
Deferred Compensation Plans | Non-employee directors
Deferred Compensation Activity
Non-employee directors	114	49
Undistributed Income Deferred	1,208		1,066
Liability Under Deferred Plans	$ 1,519		$ 1,263
Savings Plan
Deferred Compensation Activity
Employer contribution percentage on first 3 percent of eligible compensation deferred by employees (percent)	100.00%
Percentage of eligible compensation deferred by employees qualifying for 100 percent matching contribution (percent)	3.00%
Employer contribution percentage on next 2 percent of eligible compensation deferred by employees (percent)	50.00%
Percentage of eligible compensation deferred by employees qualifying for 50 percent matching contribution (percent)	2.00%
Percentage of employer matching contributions that vest immediately (percent)	100.00%
Expenses for matching contributions	$ 88	$ 86

Fair Value of Financial Instr77

Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Assets:
Available-for-sale securities	$ 9,460,859,000	$ 9,969,163,000
Securities obtained and pledged as collateral	371,333,000	510,767,000
Residential whole loans, at fair value	775,152,000	814,682,000
MSR related investments held at fair value	93,002,000	85,800,000
Swaps	119,000	233,000
Liabilities:
Obligation to return securities obtained as collateral	510,733,000	510,767,000
Agency MBS
Assets:
Available-for-sale securities	3,494,614,000	3,738,497,000
Non-Agency MBS
Assets:
Available-for-sale securities	5,468,178,000	5,825,816,000
CRT securities
Assets:
Available-for-sale securities	498,067,000	404,850,000
Recurring basis
Assets:
Securities obtained and pledged as collateral	371,333,000	510,767,000
Swaps	119,000	233,000
Total assets carried at fair value	10,607,463,000	11,294,845,000
Liabilities:
Swaps	0	46,954,000
Obligation to return securities obtained as collateral	510,733,000	510,767,000
Total liabilities carried at fair value	510,733,000	557,721,000
Recurring basis | Agency MBS
Assets:
Available-for-sale securities	3,494,614,000	3,738,497,000
Recurring basis | Non-Agency MBS
Assets:
Available-for-sale securities	5,468,178,000	5,825,816,000
Recurring basis | CRT securities
Assets:
Available-for-sale securities	498,067,000	404,850,000
Recurring basis | Residential whole loans
Assets:
Residential whole loans, at fair value	775,152,000	814,682,000
Level 1 | Recurring basis
Assets:
Securities obtained and pledged as collateral	371,333,000	510,767,000
Swaps	0	0
Total assets carried at fair value	371,333,000	510,767,000
Liabilities:
Swaps	0	0
Obligation to return securities obtained as collateral	510,733,000	510,767,000
Total liabilities carried at fair value	510,733,000	510,767,000
Level 1 | Recurring basis | Agency MBS
Assets:
Available-for-sale securities	0	0
Level 1 | Recurring basis | Non-Agency MBS
Assets:
Available-for-sale securities	0	0
Level 1 | Recurring basis | CRT securities
Assets:
Available-for-sale securities	0	0
Level 1 | Recurring basis | Residential whole loans
Assets:
Residential whole loans, at fair value	0	0
Level 2
Components of financial instruments carried at fair value
Credit valuation adjustment to derivative liabilities	0
Credit valuation adjustment to derivative assets	0
Level 2 | Recurring basis
Assets:
Securities obtained and pledged as collateral	0	0
Swaps	119,000	233,000
Total assets carried at fair value	9,178,646,000	9,969,396,000
Liabilities:
Swaps	0	46,954,000
Obligation to return securities obtained as collateral	0	0
Total liabilities carried at fair value	0	46,954,000
Level 2 | Recurring basis | Agency MBS
Assets:
Available-for-sale securities	3,494,614,000	3,738,497,000
Level 2 | Recurring basis | Non-Agency MBS
Assets:
Available-for-sale securities	5,185,846,000	5,825,816,000
Level 2 | Recurring basis | CRT securities
Assets:
Available-for-sale securities	498,067,000	404,850,000
Level 2 | Recurring basis | Residential whole loans
Assets:
Residential whole loans, at fair value	0	0
Level 3 | Recurring basis
Assets:
Securities obtained and pledged as collateral	0	0
Swaps	0	0
Total assets carried at fair value	1,057,484,000	814,682,000
Liabilities:
Swaps	0	0
Obligation to return securities obtained as collateral	0	0
Total liabilities carried at fair value	0	0
Level 3 | Recurring basis | Agency MBS
Assets:
Available-for-sale securities	0	0
Level 3 | Recurring basis | Non-Agency MBS
Assets:
Available-for-sale securities	282,332,000	0
Level 3 | Recurring basis | CRT securities
Assets:
Available-for-sale securities	0	0
Level 3 | Recurring basis | Residential whole loans
Assets:
Residential whole loans, at fair value	$ 775,152,000	$ 814,682,000

Fair Value of Financial Instr78

Fair Value of Financial Instruments - Level 3 Assets (Details) - Recurring basis - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Residential whole loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 814,682	$ 623,276
Purchases and capitalized advances	5,333	53,590
Changes in fair value recorded in Net gain on residential whole loans held at fair value	2,948	6,226
Collection of principal, net of liquidation gains/losses	(20,043)	(14,602)
Repurchases	(306)	0
Transfers	(27,462)	(21,130)
Balance at end of period	775,152	647,360
Other investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	0	0
Purchases and capitalized advances	150,000	0
Collection of principal, net of liquidation gains/losses	(8,648)	0
Transfers	140,980	0
Balance at end of period	$ 282,332	$ 0

Fair Value of Financial Instr79

Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Carrying value and estimated fair value of financial instruments
Real estate owned	$ 98,708	$ 80,503	$ 43,291	$ 28,026
Other real estate, fair value	$ 112,700	$ 91,100
Term Notes backed by MSR Related Collateral
Carrying value and estimated fair value of financial instruments
Fair Value Assumption, Weighted Average Yield to Maturity	5.25%
Minimum | Term Notes backed by MSR Related Collateral
Carrying value and estimated fair value of financial instruments
Fair Value Assumptions, Implied Yields	4.00%
Maximum | Term Notes backed by MSR Related Collateral
Carrying value and estimated fair value of financial instruments
Fair Value Assumptions, Implied Yields	6.60%

Fair Value of Financial Instr80

Fair Value of Financial Instruments - Fair Value Methodology (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential whole loans, at fair value	$ 775,152		$ 769,301
Loan purchases excluded from Level 3 fair value methodology disclosures	0		45,400
Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential whole loans, at fair value	267,878		253,287
Liquidation model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential whole loans, at fair value	507,274		516,014
Residential loans, simple average, amount	$ 340		$ 320
Residential whole loans | Level 3 | Discounted cash flow | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	5.00%	5.00%
Prepayment rate (percent)	0.00%	0.00%
Default rate (percent)	0.00%	0.00%
Loss severity (percent)	0.00%	0.00%
Residential whole loans | Level 3 | Discounted cash flow | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	7.70%	7.70%
Prepayment rate (percent)	12.30%	12.00%
Default rate (percent)	10.10%	9.70%
Loss severity (percent)	100.00%	77.50%
Residential whole loans | Level 3 | Discounted cash flow | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	6.60%		6.60%
Prepayment rate (percent)	7.80%		7.60%
Default rate (percent)	3.20%		2.90%
Loss severity (percent)	12.80%		13.00%
Residential whole loans | Level 3 | Liquidation model | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	6.20%	6.80%
Annual change in home prices (percent)	(5.00%)	(9.20%)
Liquidation timeline (in years)	1 month 6 days	1 month 6 days
Current value of underlying properties	$ 15	$ 5
Residential whole loans | Level 3 | Liquidation model | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	26.90%	26.90%
Annual change in home prices (percent)	10.70%	7.70%
Liquidation timeline (in years)	4 years 4 months 24 days	4 years 4 months 24 days
Current value of underlying properties	$ 4,900	$ 4,900
Residential whole loans | Level 3 | Liquidation model | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (percent)	7.70%		7.70%
Annual change in home prices (percent)	1.90%		1.70%
Liquidation timeline (in years)	1 year 6 months		1 year 7 months 6 days
Current value of underlying properties	$ 641		$ 634

Fair Value of Financial Instr81

Fair Value of Financial Instruments - Fair Value vs Unpaid Principal Balance (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Residential Whole Loans, Fair Value	$ 775,152	$ 814,682
Total Residential Whole Loans, Unpaid Principal Balance	907,312	966,276
Residential whole loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Residential Whole Loans, Fair Value	775,152	814,682
Total Residential Whole Loans, Unpaid Principal Balance	907,311	966,174
Total Residential Whole Loans, Difference	(132,159)	(151,492)
Residential Whole Loans 90 days or more past due, Fair Value	523,637	570,025
Residential Whole Loans 90 days or more past due, Unpaid Principal Balance	626,554	695,282
Residential Whole Loans 90 days or more past due, Difference	$ (102,917)	$ (125,257)

Fair Value of Financial Instr82

Fair Value of Financial Instruments - Carrying Value vs Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets:
Available-for-sale securities	$ 9,460,859	$ 9,969,163
Securities obtained and pledged as collateral	371,333	510,767
Residential whole loans, at carrying value	573,715	590,540
Residential whole loans, at fair value	775,152	814,682
Restricted cash	10,980	58,463
MSR related investments held at fair value	93,002	85,800
Swaps	119	233
Financial Liabilities (1):
Obligation to return securities obtained as collateral	510,733	510,767
Senior Notes	96,743	96,733
Carrying Value
Financial Assets:
Securities obtained and pledged as collateral	371,333	510,767
Cash and cash equivalents	421,572	260,112
Restricted cash	10,980	58,463
MSR related investments held at fair value	93,002	85,800
Swaps	119	233
Financial Liabilities (1):
Repurchase agreements	8,137,102	8,472,268
FHLB advances	0	215,000
Obligation to return securities obtained as collateral	510,733	510,767
Senior Notes	96,743	96,733
Swaps	0	46,954
Estimated Fair Value
Financial Assets:
Securities obtained and pledged as collateral	371,333	510,767
Cash and cash equivalents	421,572	260,112
Restricted cash	10,980	58,463
MSR related investments held at fair value	93,002	85,800
Swaps	119	233
Financial Liabilities (1):
Repurchase agreements	8,137,251	8,472,078
FHLB advances	0	215,000
Obligation to return securities obtained as collateral	510,733	510,767
Senior Notes	100,591	101,111
Swaps	0	46,954
Agency MBS
Financial Assets:
Available-for-sale securities	3,494,614	3,738,497
Agency MBS | Carrying Value
Financial Assets:
Available-for-sale securities	3,494,614	3,738,497
Agency MBS | Estimated Fair Value
Financial Assets:
Available-for-sale securities	3,494,614	3,738,497
Non-Agency MBS
Financial Assets:
Available-for-sale securities	5,468,178	5,825,816
Non-Agency MBS | Carrying Value
Financial Assets:
Available-for-sale securities	5,468,178	5,825,816
Non-Agency MBS | Estimated Fair Value
Financial Assets:
Available-for-sale securities	5,468,178	5,825,816
CRT securities
Financial Assets:
Available-for-sale securities	498,067	404,850
CRT securities | Carrying Value
Financial Assets:
Available-for-sale securities	498,067	404,850
CRT securities | Estimated Fair Value
Financial Assets:
Available-for-sale securities	498,067	404,850
Residential whole loans | Carrying Value
Financial Assets:
Residential whole loans, at carrying value	573,715	590,540
Residential whole loans, at fair value	775,152	814,682
Residential whole loans | Estimated Fair Value
Financial Assets:
Residential whole loans, at carrying value	608,209	621,548
Residential whole loans, at fair value	$ 775,152	$ 814,682

Use of Special Purpose Entiti83

Use of Special Purpose Entities and Variable Interest Entities (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Variable Interest Entity [Line Items]
Available-for-sale securities		$ 9,460,859		$ 9,969,163
Total Residential Whole Loans		1,300,000		1,405,200
Number of Residential whole loans at carrying value		3,150		3,226
Residential whole loans at carrying value		573,715		590,540
Residential whole loans, at fair value		$ 775,152		814,682
Ownership percentage by parent		100.00%
Interest income residential whole loans held at carrying value		$ 8,690	$ 4,436
Net gain on residential whole loans held at fair value		13,773	$ 12,348
Non-Agency MBS
Variable Interest Entity [Line Items]
Available-for-sale securities		5,468,178		5,825,816
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Taxable income from unwind of resecuritization transaction		$ 47,100
Taxable income from unwind of resecuritization transaction (in dollars per share)		$ 0.13
Variable Interest Entity, Primary Beneficiary | Non-Agency MBS
Variable Interest Entity [Line Items]
Available-for-sale securities	[1]			$ 174,400
Trust, ownership in residential whole loans
Variable Interest Entity [Line Items]
Ownership percentage by parent		100.00%
[1]	Non-Agency MBS transferred to consolidated VIEs at December 31, 2016 represented assets of the consolidated VIEs that can be used only to settle the obligations of each respective VIE.