Drive Shack (DSHK) 10-Q 1 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Sep. 30, 2013	Oct. 25, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Newcastle Investment Corp	'
Entity Central Index Key	'0001175483	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common stock, par value	$0.01	'
Entity Common Stock, Shares Outstanding	'	293,488,981
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'		'
Real estate securities, available-for-sale	$825,499	[1],[2]	$1,691,575
Real estate related loans and other loans, held-for-sale, net	795,297		843,132
Residential mortgage loans, held-for-investment, net	260,463		292,461
Residential mortgage loans, held-for-sale, net	2,236		2,471
Subprime mortgage loans subject to call option	406,217		405,814
Investments in real estate, net of accumulated depreciation	409,041		169,473
Intangibles, net of accumulated amortization	41,371		19,086
Equity method investments in Local Media Group	57,384		'
Other investments	25,133		24,907
Cash and cash equivalents	92,134		231,898
Restricted cash	1,827		2,064
Derivative assets	43,172		165
Receivables and other assets	27,003		17,197
Assets of discontinued operations	'		245,069
Total Assets	2,986,777		3,945,312
Liabilities	'		'
CDO bonds payable	718,473		1,091,354
Other bonds and notes payable	153,798		183,390
Repurchase agreements	376,886		929,435
Mortgage notes payable	335,238		120,525
Financing of subprime mortgage loans subject to call option	406,217		405,814
Junior subordinated notes payable	51,239		51,243
Derivative liabilities	17,115		31,576
Dividends Payable	30,279		38,884
Due to affiliates	4,911		3,620
Accrued expenses and other liabilities	25,266		15,931
Liabilities of discontinued operations	2,380		480
Total Liabilities	2,121,802		2,872,252
Commitments and contingencies	'		'
Stockholders' Equity	'		'
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of September 30, 2013 and December 31, 2012	61,583		61,583
Common stock, $0.01 par value, 1,000,000,000 and 500,000,000 shares authorized, 293,488,981 and 172,525,645 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	2,935		1,725
Additional paid-in capital	2,670,442		1,710,083
Accumulated deficit	-1,941,805		-771,095
Accumulated other comprehensive income	71,820		70,764
Total Equity	864,975		1,073,060
Total Liabilities and Stockholders' Equity	2,986,777		3,945,312
Non Recourse VIE Financing Structures	'		'
Assets	'		'
Real estate securities, available-for-sale	429,304		567,685
Real estate related loans and other loans, held-for-sale, net	584,628		813,301
Residential mortgage loans, held-for-investment, net	227,782		292,461
Subprime mortgage loans subject to call option	406,217		405,814
Investments in real estate, net of accumulated depreciation	6,632		6,672
Other investments	19,055		18,883
Restricted cash	1,827		2,064
Receivables and other assets	3,497		7,535
Total Assets	1,678,942		2,114,415
Liabilities	'		'
CDO bonds payable	718,473		1,091,354
Other bonds and notes payable	153,798		183,390
Repurchase agreements	'		4,244
Financing of subprime mortgage loans subject to call option	406,217		405,814
Derivative liabilities	17,115		31,576
Accrued expenses and other liabilities	7,114		8,365
Total Liabilities	$1,302,717		$1,724,743
[1]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012
			Series B Cumulative Redeemable Preferred Stock	Series B Cumulative Redeemable Preferred Stock	Series C Cumulative Redeemable Preferred Stock	Series C Cumulative Redeemable Preferred Stock	Series D Cumulative Redemable Preferred Stock	Series D Cumulative Redemable Preferred Stock
Preferred stock, dividend rate	'	'	9.75%	9.75%	8.05%	8.05%	8.38%	8.38%
Preferred stock, par value	$0.01	$0.01	'	'	'	'	'	'
Preferred stock, shares authorized	100,000,000	100,000,000	'	'	'	'	'	'
Preferred stock, shares issued	2,463,321	2,463,321	1,347,321	1,347,321	496,000	496,000	620,000	620,000
Preferred stock, shares outstanding	2,463,321	2,463,321	1,347,321	1,347,321	496,000	496,000	620,000	620,000
Preferred stock liquidation preference, per share	$25	$25	'	'	'	'	'	'
Common stock, par value	$0.01	$0.01	'	'	'	'	'	'
Common stock, shares authorized	1,000,000,000	500,000,000	'	'	'	'	'	'
Common stock, shares issued	293,488,981	172,525,645	'	'	'	'	'	'
Common stock, shares outstanding	293,488,981	172,525,645	'	'	'	'	'	'

Consolidated_Statements_of_Inc

Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Interest income	$47,486	$72,947	$171,642	$223,765
Interest expense	20,555	28,411	65,263	88,038
Net interest income	26,931	44,536	106,379	135,727
Impairment (Reversal)	'	'	'	'
Valuation allowance (reversal) on loans	-12,998	4,094	-11,473	-8,160
Other-than-temporary impairment on securities	'	-236	4,405	16,506
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)	'	1,156	44	-1,913
Total Impairment	-12,998	5,014	-7,024	6,433
Net interest income after impairment/reversal	39,929	39,522	113,403	129,294
Other Revenues	'	'	'	'
Rental income	21,149	6,660	44,344	7,684
Care and ancillary income	3,763	1,411	8,081	1,411
Total other revenues	24,912	8,071	52,425	9,095
Other Income (Loss)	'	'	'	'
Gain on settlement of investments, net	1,388	229,239	6,451	232,885
Gain on extinguishment of debt	3,359	2,345	4,565	23,127
Equity in earnings of Local Media Group	1,045	'	1,045	'
Other income, net	1,963	2,424	9,554	1,650
Total other income (loss)	7,755	234,008	21,615	257,662
Expenses	'	'	'	'
Loan and security servicing expense	908	1,054	2,963	3,256
Property operating expenses	15,804	5,043	32,576	5,500
General and administrative expense	9,356	4,020	23,507	11,023
Management fee to affiliate	7,166	6,852	24,879	17,459
Depreciation and amortization	7,732	2,385	15,881	2,389
Total Expenses	40,966	19,354	99,806	39,627
Income from continuing operations	31,630	262,247	87,637	356,424
Income (loss) from discontinued operations	-2,386	10,974	33,343	20,707
Net Income	29,244	273,221	120,980	377,131
Preferred dividends	-1,395	-1,395	-4,185	-4,185
Income Available to Common Stockholders	$27,849	$271,826	$116,795	$372,946
Income Per Share of Common Stock	'	'	'	'
Basic	$0.09	$1.65	$0.44	$2.77
Diluted	$0.09	$1.63	$0.43	$2.74
Income from continuing operations per share of common stock, after preferred dividends	'	'	'	'
Basic	$0.10	$1.59	$0.32	$2.62
Diluted	$0.10	$1.57	$0.31	$2.59
Income (loss) from discontinued operations per share of common stock	'	'	'	'
Basic	($0.01)	$0.06	$0.12	$0.15
Diluted	($0.01)	$0.06	$0.12	$0.15
Weighted Average Number of Shares of Common Stock Outstanding	'	'	'	'
Basic	293,373,891	164,237,757	262,792,986	134,619,858
Diluted	301,027,917	166,429,120	269,057,682	135,869,332
Dividends Declared per Share of Common Stock	$0.10	$0.22	$0.49	$0.62

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net income (Loss)	$29,244	$273,221	$120,980	$377,131
Other comprehensive income (loss):	'	'	'	'
Net unrealized gain on securities	3,123	55,320	42,400	121,609
Reclassification of net realized (gain) loss on securities into earnings	-1,381	-4,002	-1,549	4,411
Net unrealized gain on derivatives designated as cash flow hedges	1,108	4,742	4,720	16,974
Reclassification of net realized gain (loss) on derivatives designated as cash flow hedges into earnings	-1	-321	-2	5,304
Other comprehensive income	2,849	55,739	45,569	148,298
Total comprehensive income	$32,093	$328,960	$166,549	$525,429

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
In Thousands, except Share data
Stockholders' equity - beginning at Dec. 31, 2012	$61,583	$1,725	$1,710,083	($771,095)	$70,764	$1,073,060
Common stock, shares - beginning at Dec. 31, 2012	'	172,525,645	'	'	'	172,525,645
Preferred stock, shares - beginning at Dec. 31, 2012	2,463,321	'	'	'	'	2,463,321
Dividends declared	'	'	'	-132,220	'	-132,220
Issuance of Common Stock	'	1,210	960,359	'	'	961,569
Issuance of Common Stock, shares	'	120,963,336	'	'	'	120,963,336
Spin-off of New Residential	'	'	'	-1,159,470	-44,513	-1,203,983
Net income	'	'	'	120,980	'	120,980
Other comprehensive income	'	'	'	'	45,569	45,569
Stockholders' equity - ending at Sep. 30, 2013	$61,583	$2,935	$2,670,442	($1,941,805)	$71,820	$864,975
Common stock, shares - ending at Sep. 30, 2013	'	293,488,981	'	'	'	293,488,981
Preferred stock, shares outstanding at Sep. 30, 2013	2,463,321	'	'	'	'	2,463,321

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows From Operating Activities	'	'
Net income	$120,980	$377,131
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):	'	'
Depreciation and amortization	15,881	2,701
Accretion of discount and other amortization	-27,851	-38,923
Interest income in CDOs redirected for reinvestment or CDO bond paydown	-1,068	-2,944
Interest income on investments accrued to principal balance	-19,495	-16,759
Interest expense on debt accrued to principal balance	330	328
Non-cash director's compensation	275	220
Valuation allowance (reversal) on loans	-11,473	-8,160
Other-than-temporary impairment on securities	4,449	14,593
Change in fair value of investments in excess mortgage servicing rights	-3,894	-6,513
Change in investments in equity method investments in mortgage servicing rights	-19,170	'
Equity in earnings from equity method investments	-587	'
Distributions of earnings from equity method investees	1,069	'
(Gain)/loss on settlement of investments (net)	-6,451	-232,885
Unrealized (gain)/loss on non-hedge derivatives and hedge ineffectiveness	-7,302	501
Gain on extinguishment of debt	-4,565	-23,127
Change in:	'	'
Restricted cash	3,786	1,741
Receivables and other assets	-983	1,088
Due to affiliates	1,291	1,692
Accrued expenses and other liabilities	7,263	1,618
Payment of deferred interest	-648	-568
Deferred interest received	5,125	'
Net cash provided by (used in) operating activities	56,962	71,734
Cash Flows From Investing Activities	'	'
Principal repayments from repurchased CDO debt	80,817	21,347
Principal repayments from CDO securities	2,792	1,446
Principal repayments from non-Agency RMBS	25,178	12,440
Return of investments in excess mortgage servicing rights	15,803	13,327
Principal repayments from loans and non-CDO securities (excluding non-Agency RMBS)	186,999	70,398
Purchase of real estate securities	-1,113,528	-597,769
Purchase of securities accounted for as linked transactions	-103,140	'
Purchase of real estate related and other loans	-207,125	-9,216
Proceeds from sale of investments	43,916	127,000
Acquisition of investments in excess mortgage servicing rights	'	-218,642
Acquisition of investments in real estate	-224,760	-141,576
Additions to investments in real estate	-1,899	-26
Contributions to equity method investees	-442,655	'
Distributions of capital from equity method investees	12,134	'
Deposit paid on investments	-5,248	-25,857
Net cash provided by (used in) investing activities	-1,730,716	-747,128
Cash Flows From Financing Activities	'	'
Repurchases of CDO bonds payable	-31,285	-35,695
Repayments of other bonds and notes payable	-30,300	-33,177
Borrowings under repurchase agreements	2,094,395	407,878
Borrowings under repurchase agreements accounted for as linked transactions	59,968	'
Repayments of repurchase agreements	-1,326,584	-42,291
Margin deposits under repurchase agreements	-176,414	-43,960
Return of margin deposits under repurchase agreements	143,914	43,447
Borrowings under mortgage notes payable	165,696	88,400
Repayment of mortgage notes payable	-143	'
Issuance of common stock	962,827	435,821
Costs related to issuance of common stock	-1,699	-840
Contribution of cash to New Residential upon spin-off	-181,582	'
Common stock dividends paid	-136,640	-66,249
Preferred stock dividends paid	-4,185	-4,185
Payment of financing costs	-4,195	-1,831
Purchase of derivative instruments	'	-244
Proceeds from settlement of derivative instruments	217	'
Net cash provided by (used in) financing activities	1,533,990	747,074
Net Increase (Decrease) in Cash and Cash Equivalents	-139,764	71,680
Cash and Cash Equivalents of Continuing Operations, Beginning of Period	231,898	157,347
Cash and Cash Equivalents of Discontinued Operations, Beginning of Period	'	9
Cash and Cash Equivalents, End of Period	92,134	229,036
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid during the period for interest expense	35,649	59,384
Supplemental Schedule of Non-Cash Investing and Financing Activities	'	'
Assumption of mortgage notes payable	41,443	'
Issuance of seller financing for acquisition of senior housing facilities	11,432	'
Fair value adjustments relating to seller financing	2,000	'
Preferred stock dividends declared but not paid	930	930
Common stock dividends declared but not paid	29,349	37,947
Purchase price payable on investments in excess mortgage servicing rights	'	3,250
Re-issuance of other bonds and notes payable to third parties upon deconsolidation of CDO	'	29,959
Accrued capitalized acquisition expenses relating to Local Media Group	185	'
Reduction of Assets and Liabilities relating to the spin-off of New Residential	'	'
Real estate securities, available for sale	1,647,289	'
Residential mortgage loans, held-for-investment, net	35,865	'
Investments in excess mortgage servicing rights at fair value	229,936	'
Investments in equity method investees	392,469	'
Receivables and other assets	37,844	'
Repurchase Agreements	1,320,360	'
Accrued expenses and other liabilities	$642	'

GENERAL

GENERAL	9 Months Ended
	Sep. 30, 2013
General	'
GENERAL	'
	1.   GENERAL
	Newcastle Investment Corp. (and its subsidiaries, “Newcastle”) is a Maryland corporation that was formed in 2002. Newcastle focuses on opportunistically investing in, and actively managing, a variety of real estate-related and other investments. Newcaste currently primarily invests in two distinct areas: (i) senior housing assets and (ii) real estate and other debt. Newcastle is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. As such, Newcastle will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements.
	On April 26, 2013, Newcastle announced that its board of directors had formally declared the distribution of shares of common stock of New Residential Investment Corp. (“New Residential,” NYSE: NRZ), a then wholly owned subsidiary of Newcastle. Following the spin-off, New Residential is an independent, publicly traded REIT primarily focused on investing in residential mortgage related assets. The spin-off transaction was effected as a taxable pro rata distribution by Newcastle of all the outstanding shares of common stock of New Residential to the stockholders of record of Newcastle at the close of business on May 6, 2013. The stockholders of Newcastle as of the record date received one share of New Residential common stock for each share of Newcastle common stock held.
	In connection with the spin-off, Newcastle contributed to New Residential all of its investments in excess mortgage servicing rights (“Excess MSRs”) as of May 15, 2013, the non-Agency residential mortgage backed securities (“RMBS”) Newcastle had acquired since the second quarter of 2012, certain Agency ARM RMBS, the residential mortgage loans Newcastle had acquired since the beginning of 2013, its interest in a portfolio of consumer loans and a cash and cash equivalents balance of $181.6 million.
	Newcastle now conducts its business through the following segments: (i) investments in senior housing assets financed with non-recourse debt (“non-recourse senior housing”), (ii) investments financed with non-recourse collateralized debt obligations (“non-recourse CDOs”), (iii) unlevered investments in de-consolidated Newcastle CDO debt (“unlevered CDOs”), (iv) investments financed with other non-recourse debt (“non-recourse other”), (v) investments and debt repurchases financed with recourse debt (“recourse”), (vi) other unlevered investments (“unlevered other”), (vii) equity method investment in Local Media Group and (viii) corporate. With respect to the non-recourse CDOs and non-recourse other segments, subject to the passing of certain periodic coverage tests, Newcastle is generally entitled to receive the net cash flows from these structures on a periodic basis.
	Newcastle is party to a management agreement (the "Management Agreement") with FIG LLC (the "Manager"), a subsidiary of Fortress Investment Group LLC (“Fortress”), under which the Manager advises Newcastle on various aspects of its business and manages its day-to-day operations, subject to the supervision of Newcastle's board of directors. For its services, the Manager is entitled to an annual management fee and incentive compensation, both as defined in, and in accordance with the terms of, the Management Agreement.
	Newcastle is party to management agreements (the “Senior Housing Management Agreements”) with a subsidiary of Fortress and with a portfolio company of a private equity fund managed by an affiliate of Newcastle’s Manager (the “Senior Housing Managers”), under which the Senior Housing Managers manage the day-to-day operations of certain of the senior housing assets, subject to the supervision of Newcastle’s officers and board of directors. For their services, the Senior Housing Managers are entitled to an annual management fee as defined in, and in accordance with the terms of, the Senior Housing Management Agreements.
	Newcastle is also party to a management agreement with GateHouse Media, Inc. (“GateHouse”), see Note 2.
	Approximately 6.1 million shares of Newcastle’s common stock were held by Fortress, through its affiliates, and its principals at September 30, 2013. In addition, Fortress, through its affiliates, held options to purchase approximately 21.9 million shares of Newcastle’s common stock at September 30, 2013.
	The accompanying consolidated financial statements and related notes of Newcastle have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of Newcastle's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with Newcastle's consolidated financial statements for the year ended December 31, 2012 and notes thereto included in Newcastle’s Annual Report on Form 10-K filed with the SEC. Capitalized terms used herein, and not otherwise defined, are defined in Newcastle’s consolidated financial statements for the year ended December 31, 2012.
	Certain prior period amounts have been reclassified to conform to the current period’s presentation.
	Recent Accounting Pronouncements
	In February 2013, the FASB issued new guidance regarding the reporting of reclassifications out of accumulated other comprehensive income. The new guidance does not change current requirements for reporting net income or other comprehensive income in financial statements. However, it requires companies to present the effects on the line items of net income of significant amounts reclassified out of accumulated OCI if the item reclassified is required to be reclassified to net income in its entirety during the same reporting period. Presentation should occur either on the face of the income statement where net income is presented, or in the notes to the financial statements. Newcastle has adopted this accounting standard and presents this information in Note 14 to the financial statements.
	The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, revenue recognition, leases, financial instruments, hedging and contingencies. Some of the proposed changes are significant and could have a material impact on Newcastle’s reporting. Newcastle has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2013
Acquisitions	'
ACQUISITIONS	'
	2.   ACQUISITIONS
		A.	Acquisitions of Senior Housing facilities
	During July, August and September 2013, Newcastle completed the acquisitions of 19 senior housing facilities in five different portfolios with properties located in New York, Florida, North Carolina and Pennsylvania. Each of these acquisitions was accounted for as a business combination, under which all assets acquired and liabilities assumed are recognized at their acquisition-date fair value with acquisition-related costs being expensed as incurred. For certain properties, Newcastle has retained a portfolio company of a private equity fund managed by an affiliate of the Manager to manage the properties. Pursuant to the agreement with the portfolio company, Newcastle pays management fees equal to (i) 5% of the property’s effective gross income (as defined in the agreements) or (ii) management fees equal to 6% of the property’s effective gross income (as defined in the agreements) for the first two years and 7% thereafter. For the other property acquired, Newcastle has retained a subsidiary of the Manager to manage the property. Pursuant to the agreement with the subsidiary of the Manager, Newcastle pays management fees equal to 6% of the property’s effective gross income (as defined in the agreement) for the first two years and 7% thereafter. In addition, Newcastle will reimburse the property manager for certain expenses, primarily the compensation expense associated with the on-site employees.
	In connection with the acquisitions of the senior housing assets described above, the assets acquired and the liabilities assumed were recorded at fair value. A summary of the initial recording of each of the above acquisitions is as follows:
			At Acquisition
			Woodside			Florida			Glen Riddle			Royal Palm			Schenley Gardens			Total
	Allocation of Purchase Price (A)
	Investments in Real Estate		$	13,300		$	178,009		$	19,050		$	16,938		$	15,308		$	242,605
	Resident Lease Intangibles			1,900			21,589			2,100			1,800			1,150			28,539
	Non-compete Intangibles			—			—			1,000			—			—			1,000
	Other Intangibles			3,700			—			—			—			—			3,700
	Assumed mortgage notes payable			—			(41,443	)		—			—			—			(41,443	)
	Earn-Out Liability (B)			—			(1,500	)		—			—			—			(1,500	)
	Other Assets, net of other Liabilities			51			1,231			215			(98	)		(108	)		1,291
	Total purchase price		$	18,951		$	157,886		$	22,365		$	18,640		$	16,350		$	234,192
	Mortgage Notes Payable (C)			(14,100	)		(102,953	)		(16,875	)		(14,250	)		(8,250	)		(156,428	)
	Net consideration paid		$	4,851		$	54,933		$	5,490		$	4,390		$	8,100		$	77,764
	Total acquisition related costs (D)		$	475		$	3,319		$	507		$	224		$	629		$	5,154
	Acquisition Date			Jul-13			Aug-13			Aug-13			Sep-13			Sep-13
	Location			New York			Florida/North Carolina			Pennsylvania			Florida			Pennsylvania
	Number of Communities			1			15			1			1			1
		(A)	Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.
		(B)	The amount represents the fair value of a contingent liability relating to Newcastle’s agreement to pay the seller an earn-out payment if the aggregate EBITDA for the Florida portfolio for any calendar years in which the third, fourth, fifth and/or sixth anniversary of the acquisition date occurs is equal to or in excess of an earn-out threshold, as defined within the agreement.
		(C)	See Note 9.
		(D)	Acquisition related costs are expensed as incurred and included within general and administrative expense on the statement of income.
	B. Acquisition of Media businesses
	On September 3, 2013 Newcastle completed the acquisition of Dow Jones Local Media Group (“Local Media Group”) from News Corp. for $86.9 million, including capitalized transaction costs of approximately $4.3 million. Newcastle made a total equity investment of $56.3 million and financed the remainder of the purchase price with $33.0 million of debt. The purchase price is subject to a working capital adjustment. Newcastle also contributed $2.4 million to Local Media Group for working capital purposes that can be repaid from the $10.0 million of undrawn capacity described below. Newcastle assigned its interest in Local Media Group to a newly formed wholly-owned subsidiary, Local Media Group Holdings LLC (“Local Media Parent”). Local Media Group operates 33 local publications in 7 states in the United States and has been in business for over 75 years.
	The above $33.0 million of debt was drawn from a $43.0 million credit agreement that Local Media Group signed on September 3, 2013 with Credit Suisse AG, Cayman Islands Branch and Credit Suisse Loan Funding LLC (collectively “Credit Suisse”) which bears interest at LIBOR + 6.5% with a LIBOR floor of 1% and matures in September 2018. The $10.0 million of undrawn capacity under the agreement which can be used for working capital and other general corporate purposes, will become available to Local Media Group on the revolver activation date pursuant to the terms of the agreement. Local Media Parent has provided a guarantee under the credit agreement and has pledged substantially all of its assets, including its interest in Local Media Group, as collateral to the credit agreement. The credit agreement contains customary financial covenants which include a maximum leverage ratio and fixed charge coverage ratio. Upon an event of default of Local Media Group, as defined in the credit agreement, some restrictions apply to Local Media Group’s ability to make dividends or other distributions.
	The Local Media Group operations are managed by GateHouse, a portfolio company of a private equity fund managed by an affiliate of the Manager pursuant to a management agreement (“Media Management Agreement”). Under this agreement, GateHouse receives an annual management fee of $1.1 million, subject to adjustments (up to a maximum annual management fee of $1.2 million) plus 12.5% of the Local Media Group’s EBITDA in excess of budget (as defined in the Media Management Agreement) for overseeing and managing the Local Media Group’s businesses, assets and day-to-day operations. As a result of this agreement, management has determined that Local Media Group is a VIE and that GateHouse is the primary beneficiary because it has both the power to direct the activities that most significantly impact the economic performance of Local Media Group and it participates in the residual returns of Local Media Group that could be significant to Local Media Group. Therefore, since Newcastle is not the primary beneficiary it does not consolidate Local Media Group and records its investment in Local Media Group as an equity method investment.
	The following tables present summarized financial information for Local Media Group:
			30-Sep-13
	Total Assets (A)		$	107,011
	Total Liabilities (A)			52,053
	Total Equity		$	54,958
	Newcastle's investment (B)		$	57,384
				For the period
				September 3 - 30, 2013
	Total Revenue		$	12,043
	Depreciation and Amortization			945
	Other Expenses			10,629
	Total Expenses			11,574
	Provision for Taxes			(576	)
	Net Income		$	1,045
		(A)	Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.
		(B)	This amount represents Newcastle’s maximum exposure to loss from this entity and includes capitalized acquisition expenses of $2.4 million.
	Newcastle, which owns approximately 52.2% of GateHouse’s $1.2 billion of debt, has also announced that it has entered into an agreement with GateHouse’s other creditors related to a potential restructuring of GateHouse pursuant to a prepackaged plan of reorganization under Chapter 11 of Title 11 of the United States Bankruptcy Code (the “Plan”). Pursuant to the Plan, reorganized GateHouse will be contributed to New Media Investment Group Inc. (“New Media”), which is currently a wholly owned subsidiary of Newcastle, and GateHouse will use commercially reasonable efforts to raise a new debt facility in an amount of up to $150 million in accordance with the terms set forth in the Plan. As the Plan sponsor, Newcastle offered to purchase (or to have its designated affiliates or other designees purchase) the debt of the other creditors in cash at 40% of par (the “Cash-Out Option”). The creditors have the right to elect to receive (i) the Cash-Out Option and/or (ii) common stock of New Media and the net cash proceeds, if any, of the new debt facility (the “Equity Option”).  We and certain other creditors have elected the Equity Option, and creditors with approximately $369.9 million in debt positions, including expected accrued interest through the effective date, have elected the Cash-Out Option. In addition, Newcastle will contribute its interest in Local Media Group to New Media in exchange for common stock of New Media equal in value to the cost of the Local Media Group acquisition, as defined in the agreement. On September 27, 2013, GateHouse commenced the voluntary Chapter 11 proceedings in the United States Bankruptcy Court of the District of Delaware pursuant to the Plan.
	New Media has filed a registration statement with the SEC with respect to a planned spin-off from Newcastle. The spin-off is subject to certain conditions, such as the approval of the Plan by the Bankruptcy Court, the declaration of New Media’s registration statement effective by the SEC, the filing and approval of an application to list New Media’s common stock on the NYSE and the formal declaration of the distribution by the board of directors.

SPINOFF_OF_NEW_RESIDENTIAL

SPIN-OFF OF NEW RESIDENTIAL	12 Months Ended
	Dec. 31, 2012
Spin-Off Of New Residential	'
SPIN-OFF OF NEW RESIDENTIAL	'
	3.   SPIN-OFF OF NEW RESIDENTIAL
	As previously discussed in Note 1, on May 15, 2013, Newcastle completed the spin-off of New Residential from Newcastle.
	On April 1, 2013, Newcastle completed a co-investment in a portfolio of consumer loans with a UPB of approximately $4.2 billion as of December 31, 2012. The portfolio included over 400,000 personal unsecured loans and personal homeowner loans originated through subsidiaries of HSBC Finance Corporation. The investment was completed through newly formed limited liability companies (collectively, the “Consumer Loan Companies”), which acquired the portfolio from HSBC Finance Corporation and its affiliates. Newcastle invested approximately $250 million for 30% membership interests in each of the Consumer Loan Companies. Of the remaining 70% of the membership interests, Springleaf Finance Inc. (“Springleaf”), which is majority-owned by Fortress funds managed by the Manager, acquired 47%, and an affiliate of Blackstone Tactical Opportunities Advisors L.L.C., acquired 23%. Springleaf acts as the managing member of the Consumer Loan Companies. The Consumer Loan Companies financed $2.2 billion of the approximately $3.0 billion purchase price with asset-backed notes. The investment in the portfolio of consumer loans was made in contemplation of, and was included in the May 15, 2013 spin-off. Newcastle has no continuing involvement in the consumer loans business post spin-off. Accordingly, the operating results are presented in discontinued operations.
	The following table presents the carrying value of the assets and liabilities of New Residential, immediately preceding the May 15, 2013 spin-off.
	Assets
	Real estate securities, available-for-sale	$	1,647,289
	Residential mortgage loans, held-for-investment, net		35,865
	Investments in excess mortgage servicing rights at fair value		229,936
	Investments in equity method investees		392,469
	Cash and cash equivalents		181,582
	Receivables and other assets		37,844
	Total Assets	$	2,524,985
	Liabilities
	Repurchase agreements	$	1,320,360
	Accrued expenses and other liabilities		642
	Total Liabilities	$	1,321,002
	Net Assets	$	1,203,983
	For pro-forma information relating to the May 15, 2013 spin-off, see Note 17.
	As a result of the May 15, 2013 spin-off, for all periods presented, the assets, liabilities and results of operations of those components of Newcastle’s operations that (i) were part of the spin-off, and (ii) represent operations in which Newcastle has no significant continuing involvement, are presented separately in discontinued operations in Newcastle’s consolidated financial statements. These components are primarily related to Excess MSRs and consumer loans.
	Assets and liabilities of discontinued operations as of December 31, 2012 were as follows:
	Assets
	Investments in excess mortgage servicing rights at fair value	$	245,036
	Receivables and other assets		33
	Total assets of discontinued operations	$	245,069
	Liabilities
	Purchase price payable on investments in excess mortgage servicing rights	$	59
	Accrued expenses and other liabilities		421
	Total liabilities of discontinued operations	$	480
	Results from discontinued operations were as follows:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Interest Income	$	—		$	9,903		$	15,095		$	16,422
	Net interest income		—			9,903			15,095			16,422
	Other loss		(2,386	)		(2	)		(2,388	)		(1	)
	Change in fair value of investments in excess mortgage servicing rights		—			1,774			3,894			6,513
	Change in fair value of investments in equity method investees		—			—			885			—
	Earnings from investments in equity method investees		—			—			18,286			—
	Total other income		(2,386	)		1,772			20,677			6,512
	Property operating costs		—			6			12			19
	General and administrative expenses		—			695			2,417			2,208
	Total expenses		—			701			2,429			2,227
	Income from discontinued operations	$	(2,386	)	$	10,974		$	33,343		$	20,707
	The spin-off also resulted in a $1.2 billion reduction in the basis upon which Newcastle’s management fees are computed (and an equivalent reduction in the basis upon which the incentive compensation threshold is computed), as well as a reduction in the strike price of Newcastle’s then outstanding options (see Note 11). During the three months ended September 30, 2013, included in discontinued operations and other liabilities is $2.4 million in connection with excess mortgage servicing rights owned prior to the spin-off.

SEGMENT_REPORTING_AND_VARIABLE

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES	9 Months Ended
	Sep. 30, 2013
Segment Reporting And Variable Interest Entities	'
SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES	'
	4.   SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES
	As previously stated in Note 1, Newcastle conducts its business through the following segments: (i) investments in senior housing assets financed with non-recourse debt (“non-recourse senior housing”), (ii) investments financed with non-recourse collateralized debt obligations (“non-recourse CDOs”), (iii) unlevered investments in de-consolidated Newcastle CDO debt (“unlevered CDOs”), (iv) investments financed with other non-recourse debt (“non-recourse other”), (v) investments and debt repurchases financed with recourse debt (“recourse”), (vi) other unlevered investments (“unlevered other”), (vii) equity method investment in Local Media Group, (viii) corporate and (ix) prior to the spin-off, investments in excess mortgage servicing rights and consumer loans (“Excess MSRs and consumer loans”). With respect to the non-recourse CDOs and non-recourse other segments, subject to the passing of certain periodic coverage tests, Newcastle is generally entitled to receive the net cash flows from these structures on a periodic basis.
	The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable and management fees pursuant to the management agreements.
	Summary financial data on Newcastle's segments is given below, together with reconciliation to the same data for Newcastle as a whole:
			Non-Recourse Senior Housing			Non-Recourse CDOs (A)			Unlevered CDOs (B)		Non-Recourse Other (A) (C)			Recourse (D)			Unlevered Other (E)			Equity Method Investment			Corporate			Excess			Inter-segment Elimination (F)			Total
																				in Local						MSRs and
																				Media Group						Consumer Loans
	Nine Months Ended September 30, 2013
	Interest income		$	2		$	95,254		$	383	$	49,027		$	14,771		$	15,519		$	—		$	141		$	—		$	(3,455	)	$	171,642
	Interest expense			5,358			18,876			—		37,710			3,910			—			—			2,864			—			(3,455	)		65,263
	Net interest income (expense)			(5,356	)		76,378			383		11,317			10,861			15,519			—			(2,723	)		—			—			106,379
	Impairment (reversal)			—			(389	)		—		(38	)		3,738			(10,335	)		—			—			—			—			(7,024	)
	Other revenues			50,880			—			—		1,545			—			—			—			—			—			—			52,425
	Other income (loss)			46			16,496			205		—			25			3,798			1,045			—			—			—			21,615
	Property operating expenses			31,827			—			—		749			—			—			—			—			—			—			32,576
	Depreciation and amortization			15,715			—			—		164			—			—			—			2			—			—			15,881
	Other operating expenses			12,619			563			—		2,078			59			290			—			35,740			—			—			51,349
	Income (loss) from continuing operations			(14,591	)		92,700			588		9,909			7,089			29,362			1,045			(38,465	)		—			—			87,637
	Income (loss) from discontinued operations			—			—			—		—			—			(35	)		—			—			33,378			—			33,343
	Net income (loss)			(14,591	)		92,700			588		9,909			7,089			29,327			1,045			(38,465	)		33,378			—			120,980
	Preferred dividends			—			—			—		—			—			—			—			(4,185	)		—			—			(4,185	)
	Income (loss) applicable to common stockholders		$	(14,591	)	$	92,700		$	588	$	9,909		$	7,089		$	29,327		$	1,045		$	(42,650	)	$	33,378		$	—		$	116,795
	Three Months Ended September 30, 2013
	Interest income		$	2		$	27,027		$	57	$	16,254		$	1,206		$	4,425		$	—		$	39		$	—		$	(1,524	)	$	47,486
	Interest expense			2,880			4,926			—		12,853			462			—			—			958			—			(1,524	)		20,555
	Net interest income (expense)			(2,878	)		22,101			57		3,401			744			4,425			—			(919	)		—			—			26,931
	Impairment (reversal)			—			(12,375	)		—		535			—			(1,158	)		—			—			—			—			(12,998	)
	Other revenues			24,370			—			—		542			—			—			—			—			—			—			24,912
	Other income (loss)			(74	)		4,821			60		—			—			1,903			1,045			—			—			—			7,755
	Property operating expenses			15,542			—			—		262			—			—			—			—			—			—			15,804
	Depreciation and amortization			7,676			—			—		54			—			—			—			2			—			—			7,732
	Other operating expenses			7,545			179			—		668			12			52			—			8,974			—			—			17,430
	Income (loss) from continuing operations			(9,345	)		39,118			117		2,424			732			7,434			1,045			(9,895	)		—			—			31,630
	Income (loss) from discontinued operations			—			—			—		—			—			(6	)		—			—			(2,380	)		—			(2,386	)
	Net income (loss)			(9,345	)		39,118			117		2,424			732			7,428			1,045			(9,895	)		(2,380	)		—			29,244
	Preferred dividends			—			—			—		—			—			—			—			(1,395	)		—			—		$	(1,395	)
	Income (loss) applicable to common stockholders		$	(9,345	)	$	39,118		$	117	$	2,424		$	732		$	7,428		$	1,045		$	(11,290	)	$	(2,380	)	$	—		$	27,849
	30-Sep-13
	Investments		$	443,780		$	1,044,704		$	5,058	$	688,274		$	387,608		$	255,194		$	57,384		$	—		$	—		$	(59,361	)	$	2,822,641
	Cash and restricted cash			35,244			1,827			—		—			—			—			—			56,890			—			—			93,961
	Derivative assets			—			—			—		—			43,172			—			—			—			—			—			43,172
	Other assets			15,226			3,420			5		77			1,306			1,893			—			5,117			—			(41	)		27,003
	Total assets			494,250			1,049,951			5,063		688,351			432,086			257,087			57,384			62,007			—			(59,402	)		2,986,777
	Debt			(335,238	)		(718,473	)		—		(619,376	)		(376,886	)		—			—			(51,239	)		—			59,361			(2,041,851	)
	Derivative liabilities			—			(17,115	)		—		—			—			—			—			—			—			—			(17,115	)
	Other liabilities			(15,582	)		(5,700	)		—		(1,413	)		(64	)		(768	)		(185	)		(36,785	)		(2,380	)		41			(62,836	)
	Total liabilities			(350,820	)		(741,288	)		—		(620,789	)		(376,950	)		(768	)		(185	)		(88,024	)		(2,380	)		59,402			(2,121,802	)
	Preferred stock			—			—			—		—			—			—			—			(61,583	)		—			—			(61,583	)
	GAAP book value		$	143,430		$	308,663		$	5,063	$	67,562		$	55,136		$	256,319		$	57,199		$	(87,600	)	$	(2,380	)	$	—		$	803,392
	Additions to investments in real estate		$	277,614		$	—		$	—	$	129		$	—		$	—		$	—		$	—		$	—		$	—		$	277,743
			Non-Recourse			Non-Recourse CDOs (A)			Unlevered CDOs (B)		Non-Recourse Other (A)			Recourse			Unlevered			Corporate			Excess MSRs			Inter-segment Elimination (F)			Total
			Senior Housing														Other						and Consumer
																							Loans
	Nine Months Ended September 30, 2012
	Interest income		$	—		$	161,490		$	339	$	54,753		$	4,981		$	7,234		$	135		$	—		$	(5,167	)	$	223,765
	Interest expense			692			49,334			—		38,935			1,387			—			2,857			—			(5,167	)		88,038
	Net interest income (expense)			(692	)		112,156			339		15,818			3,594			7,234			(2,722	)		—			—			135,727
	Impairment (reversal)			—			3,173			—		3,202			—			58			—			—			—			6,433
	Other revenues			7,548			—			—		1,547			—			—			—			—			—			9,095
	Other income (loss)			(21	)		256,358			259		—			—			1,066			—			—			—			257,662
	Property operating expenses			4,742			—			—		758			—			—			—			—			—			5,500
	Depreciation and amortization			2,370			—			—		19			—			—			—			—			—			2,389
	Other operating expenses			4,848			713			1		2,523			—			35			23,618			—			—			31,738
Income (loss) from continuing operations			(5,125	)		364,628			597		10,863			3,594			8,207			(26,340	)		—			—			356,424
Income (loss) from discontinued operations			—			—			—		—			—			(48	)		—			20,755			—			20,707
Net income (loss)			(5,125	)		364,628			597		10,863			3,594			8,159			(26,340	)		20,755			—			377,131
Preferred dividends			—			—			—		—			—			—			(4,185	)		—			—			(4,185	)
Income (loss) applicable to common stockholders		$	(5,125	)	$	364,628		$	597	$	10,863		$	3,594		$	8,159		$	(30,525	)	$	20,755			—		$	372,946
Three Months Ended September 30, 2012
Interest income		$	—			51,050		$	109		18,290		$	3,213		$	2,383		$	32		$	—			(2,130	)		72,947
Interest expense			692			14,694			—		13,375			826			—			954			—			(2,130	)		28,411
Net interest income (expense)			(692	)		36,356			109		4,915			2,387			2,383			(922	)		—			—			44,536
Impairment (reversal)			—			3,962			—		499			—			553			—			—			—			5,014
Other revenues			7,548			—			—		523			—						—			—			—			8,071
Other income (loss)			(21	)		231,825			83		—			—			2,121			—			—			—			234,008
Property operating expenses			4,742			—			—		301			—						—			—			—			5,043
Depreciation and amortization			2,370			—			—		15			—						—			—			—			2,385
Other operating expenses			1,650			230			—		823			—			10			9,213			—			—			11,926
Income (loss) from continuing operations			(1,927	)		263,989			192		3,800			2,387			3,941			(10,135	)		—			—			262,247
Income (loss) from discontinued operations			—			—			—		—			—			(17	)		—			10,991			—			10,974
Net income (loss)			(1,927	)		263,989			192		3,800			2,387			3,924			(10,135	)		10,991			—			273,221
Preferred dividends			—			—			—		—			—			—			(1,395	)		—			—			(1,395	)
Income (loss) applicable to common stockholders		$	(1,927	)	$	263,989		$	192	$	3,800		$	2,387		$	3,924		$	(11,530	)	$	10,991		$	—		$	271,826
See notes on next page.
	(A)	Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle’s exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. Therefore, impairment recorded in excess of Newcastle’s investment, which results in negative GAAP book value for a given non-recourse financing structure, cannot economically be incurred and will eventually be reversed through amortization, sales at gains, or as gains at the deconsolidation or termination of such non-recourse financing structure.
	(B)	Represents unlevered investments in CDO securities issued by Newcastle. This CDO has been de-consolidated as Newcastle does not have the power to direct the relevant activities of the CDO.
	(C)	The following table summarizes the investments and debt in the other non-recourse segment:
		30-Sep-13
		Investments						Debt
		Outstanding			Carrying			Outstanding		Carrying
		Face Amount			Value			Face Amount*		Value*
Manufactured housing loan portfolio I		$	106,304		$	91,488		$	78,179	$	70,185
Manufactured housing loan portfolio II			134,641			132,728			99,979		99,568
Subprime mortgage loans subject to call option			406,217			406,217			406,217		406,217
Real estate securities			58,525			51,209			41,105		37,406
Other commercial real estate			N/A			6,632			6,000		6,000
		$	705,687		$	688,274		$	631,480	$	619,376
*	An aggregate face amount of $67.6 million (carrying value of $59.4 million) of debt represents financing provided by the CDO segment (and included as investments in the CDO segment), which is eliminated upon consolidation.
	(D)	The $376.9 million of recourse debt is composed of (i) a $361.8 million repurchase agreement secured by $387.6 million carrying value of FNMA/FHLMC securities, and (ii) a $15.1 million repurchase agreement secured by $25.0 million face amount of senior notes issued by Newcastle CDO IX, which was repurchased by Newcastle and eliminated in consolidation.
	(E)	The following table summarizes the investments in the unlevered other segment:
		30-Sep-13
		Outstanding			Carrying			Number of
		Face Amount			Value			Investments
Real estate securities		$	130,775		$	3,529			20
Real estate related and other loans			544,714			210,669			2
Residential mortgage loans			46,577			34,917			288
Other investments			N/A			6,079			1
		$	722,066		$	255,194			311
	(F)	Represents the elimination of investments and financings and their related income and expenses between the CDO segment and other non-recourse segment as the corresponding inter-segment investments and financings are presented on a gross basis within each of these segments.
Variable Interest Entities (“VIEs”)
The VIEs in which Newcastle has a significant interest include (i) Newcastle’s CDOs, in which Newcastle has been determined to be the primary beneficiary and therefore consolidates them (with the exception of CDO V and CDO VIII Repack), since it has the power to direct the activities that most significantly impact the CDOs’ economic performance and would absorb a significant portion of their expected losses and receive a significant portion of their expected residual returns, and (ii) the manufactured housing loan financing structures, which are similar to the CDOs in analysis. Newcastle’s CDOs and manufactured housing loan financings are held in special purpose entities whose debt is treated as non-recourse secured borrowings of Newcastle.
Newcastle’s subprime securitizations and the Local Media Group investment are also considered VIEs, but Newcastle does not control the decisions that most significantly impact their economic performance and, for the subprime securitizations, no longer receives a significant portion of their returns, and therefore does not consolidate them.
In addition, Newcastle’s investments in RMBS, commercial mortgage backed securities (“CMBS”), CDO securities and real estate related and other loans may be deemed to be variable interests in VIEs, depending on their structure. Newcastle monitors these investments and analyzes the potential need to consolidate the related securitization entities pursuant to the VIE consolidation requirements. These analyses require considerable judgment in determining whether an entity is a VIE and determining the primary beneficiary of a VIE since they involve subjective determinations of significance, with respect to both power and economics. The result could be the consolidation of an entity that otherwise would not have been consolidated or the de-consolidation of an entity that otherwise would have been consolidated.
As of September 30, 2013, Newcastle has not consolidated these potential VIEs. This determination is based, in part, on the assessment that Newcastle does not have the power to direct the activities that most significantly impact the economic performance of these entities, such as if Newcastle owned a majority of the currently controlling class. In addition, Newcastle is not obligated to provide, and has not provided, any financial support to these entities.
Newcastle had variable interests in the following unconsolidated VIE at September 30, 2013, in addition to the subprime securitizations which are described in Note 6 and the Local Media Group investment which is described in Note 2:
Entity		Gross Assets (A)			Debt (A) (B)			Carrying Value of Newcastle's Investment (C)
Newcastle CDO V		$	208,193		$	233,972		$	5,058
CDO VIII Repack (D)		$	207,624		$	207,624		$	103,140
	(A)	Face amount.
	(B)	Newcastle CDO V includes $42.9 million face amount of debt owned by Newcastle with a carrying value of $5.1 million at September 30, 2013. CDO VIII Repack includes $116.8 million face amount of debt owned by Newcastle with a carrying value of $103.1 million at September 30, 2013.
	(C)	This amount represents Newcastle’s maximum exposure to loss from this entity.
	(D)	See Notes 9 and 10 for information about the securitization that is collateralized by certain Newcastle CDO VIII Class I notes.

REAL_ESTATE_SECURITIES

REAL ESTATE SECURITIES	9 Months Ended
	Sep. 30, 2013
RealEstateSecuritiesAbstract	'
REAL ESTATE SECURITIES	'
	5	REAL ESTATE SECURITIES
	The following is a summary of Newcastle’s real estate securities at September 30, 2013, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired.
						Amortized Cost Basis									Gross Unrealized									Weighted Average
	Asset Type		Outstanding Face Amount			Before Impairment			Other-Than- Temporary Impairment			After Impairment			Gains		Losses			Carrying		Number of Securities		Rating		Coupon				Yield				Maturity				Principal Subordination (D)
																				Value (A)				(B)										(Years) (C)
	CMBS-Conduit		$	247,582		$	228,850		$	(82,947	)	$	145,903		$	52,338	$	(201	)	$	198,040		35	B+			5.51	%			14.17	%			3.2				9.5	%
	CMBS- Single Borrower			91,877			90,996			(12,364	)		78,632			4,946		—			83,578		15	BB			5.67	%			4.75	%			2.7				6.3	%
	CMBS-Large Loan			4,458			4,411			—			4,411			47		—			4,458		1	BBB-			6.06	%			11.92	%			0.4				6.2	%
	REIT Debt			29,200			28,607			—			28,607			2,608		—			31,215		5	BB+			5.89	%			6.86	%			1.8				N/A
	Non-Agency RMBS (E)			101,315			103,810			(62,860	)		40,950			16,576		(20	)		57,506		34	CCC			1.1	%			13.14	%			5				28	%
	ABS-Franchise			8,464			7,647			(7,647	)		—			—		—			—		1	C			6.69	%			0	%			—				0	%
	FNMA/FHLMC (H)			362,484			386,640			—			386,640			2,151		(1,183	)		387,608		46	AAA			2.82	%			1.27	%			3.7				N/A
	CDO (F)			193,435			76,091			(14,861	)		61,230			1,977		(113	)		63,094		12	CCC+			2.99	%			7.7	%			1.2				19.8	%
	Total / Average (G)		$	1,038,815		$	927,052		$	(180,679	)	$	746,373		$	80,643	$	(1,517	)	$	825,499		149	BBB-			3.71	%			5.64	%			3.1
	(A)		See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
	(B)		Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Newcastle used an implied AAA rating for the FNMA/FHLMC securities. Ratings provided were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current.
	(C)		The weighted average maturity is based on the timing of expected principal reduction on the assets.
	(D)		Percentage of the outstanding face amount of securities and residual interests that is subordinate to Newcastle’s investments.
	(E)		Includes the retained bond with a face amount of $4.0 million and a carrying value of $1.9 million from Securitization Trust 2006 (Note 6).
	(F)		Includes two CDO bonds issued by a third party with a carrying value of $58.0 million, four CDO bonds issued by CDO V (which has been de-consolidated) and held as investments by Newcastle with a carrying value of $5.1 million and six CDO bonds issued by C-BASS Investment Management LLC (“C-BASS”) with zero carrying value.
	(G)		The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
	(H)		Amortized cost basis and carrying value include principal receivable of $4.2 million.
	On June 27, 2013 Newcastle sold FNMA/FHLMC securities with an aggregate face amount of approximately $22.8 million to New Residential for approximately $1.2 million, net of related financing. New Residential purchased the securities on the same terms as they were purchased by Newcastle.
	Unrealized losses that are considered other-than-temporary are recognized currently in earnings. During the nine months ended September 30, 2013, Newcastle recorded other-than-temporary impairment charges (“OTTI”) of $4.4 million with respect to real estate securities, of which $3.8 million was recorded on certain real estate securities included in the spin-off of New Residential as Newcastle determined it did not have the intent to hold the securities past May 15, 2013. For the other $0.6 million, based on management’s analysis of the securities, the performance of the underlying loans and changes in market factors, Newcastle noted adverse changes in the expected cash flows on certain of these securities and concluded that they were other-than-temporarily impaired. Any remaining unrealized losses on Newcastle’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. Newcastle performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. The following table summarizes Newcastle’s securities in an unrealized loss position as of September 30, 2013.
						Amortized Cost Basis									Gross Unrealized									Weighted Average
	Securities in		Outstanding						Other-than-													Number
	an Unrealized		Face			Before			Temporary			After								Carrying		of														Maturity
	Loss Position		Amount			Impairment			Impairment			Impairment			Gains		Losses			Value		Securities		Rating				Coupon				Yield				(Years)
	Less Than
	Twelve Months		$	223,008		$	226,596		$	(4,437	)	$	222,159		$	—	$	(1,107	)	$	221,052		23		AA-				2.17	%			3.05	%			3.1
	Twelve or More Months			39,196			40,725			—			40,725			—		(410	)		40,315		4		A+				3.78	%			2.56	%			2.8
	Total		$	262,204		$	267,321		$	(4,437	)	$	262,884		$	—	$	(1,517	)	$	261,367		27		AA-				2.41	%			2.98	%			3
	Newcastle performed an assessment of all of its debt securities that are in an unrealized loss position (unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following:
			30-Sep-13
						Amortized
						Cost Basis			Unrealized Losses
			Fair Value			After Impairment			Credit (B)				Non-Credit (C)
	Securities Newcastle intends to sell		$	—		$	—		$	—			$              N/A
	Securities Newcastle is more likely than not to be required to sell (A)			—			—			—			N/A
	Securities Newcastle has no intent to sell and is not more likely than not to be required to sell:
	Credit impaired securities			2,139			2,160			(4,359	)		(21	)
	Non credit impaired securities			259,228			260,724			—			(1,496	)
	Total debt securities in an unrealized loss position		$	261,367		$	262,884		$	(4,359	)	$	(1,517	)
		(A)	Newcastle may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Newcastle must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales.
		(B)	This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, Newcastle’s management estimates the expected cash flow for each of the securities.  This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends.  Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities.  Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate.
		(C)	This amount represents unrealized losses on securities that are due to non-credit factors and is required to be recorded through other comprehensive income.
	The following table summarizes the activity related to credit losses on debt securities for the nine months ended September 30, 2013:
	Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income		$	(4,770	)
	Additions for credit losses on securities for which an OTTI was not previously recognized			(1	)
	Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income			(89	)
	Additions for credit losses on securities for which an OTTI was previously recognized without any portion of OTTI recognized in other comprehensive income			(4,317	)
	Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date			—
	Reduction for securities sold during the period			4,739
	Reduction for securities transferred to New Residential			—
	Reduction for securities de-consolidated during the period			—
	Reduction for increases in cash flows expected to be collected that are recognized over the remaining life of the security			79
	Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income		$	(4,359	)
	The table below summarizes the geographic distribution of the collateral securing Newcastle’s CMBS and asset backed securities (“ABS”) at September 30, 2013:
			CMBS						ABS
	Geographic Location			Outstanding Face Amount			Percentage			Outstanding Face Amount			Percentage
	Western U.S.		$	73,846			21.5	%	$	33,394			30.4	%
	Northeastern U.S.			64,203			18.6	%		22,869			20.8	%
	Southeastern U.S.			67,648			19.7	%		21,845			19.9	%
Midwestern U.S.			54,720			15.9	%		14,417			13.1	%
Southwestern U.S.			65,889			19.2	%		11,036			10.1	%
Other			12,719			3.7	%		6,218			5.7	%
Foreign			4,892			1.4	%		—			0	%
		$	343,917			100	%	$	109,779			100	%
Geographic concentrations of investments expose Newcastle to the risk of economic downturns within the relevant regions, particularly given the current unfavorable market conditions. These market conditions may make regions more vulnerable to downturns in certain market factors. Any such downturn in a region where Newcastle holds significant investments could have a material, negative impact on Newcastle.

REAL_ESTATE_RELATED_LOANS_RESI

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS	9 Months Ended
	Sep. 30, 2013
Real Estate Related Loans Residential Mortgage Loans And Subprime Mortgage Loans	'
REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS, AND SUBPRIME MORTGAGE LOANS	'
	6	REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS
	The following is a summary of real estate related and other loans, residential mortgage loans and subprime mortgage loans at September 30, 2013. The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment.
	Loan Type		Outstanding			Carrying			Loan			Weighted			Weighted Average Coupon			Weighted Average Maturity		Floating Rate Loans as a % of Face Amount			Delinquent Face Amount (C)
			Face Amount			Value (A)			Count			Average						(Years) (B)
												Yield
	Mezzanine Loans		$	338,178		$	268,635			12			10.65	%		8.78	%		1.8		88.4	%	$	12,000
	Corporate Bank Loans			875,072			402,139			7			13.73	%		5.6	%		1.2		74.4	%		—
	B-Notes			110,461			94,703			4			10.5	%		6.3	%		0.7		79.3	%		—
	Whole Loans			29,820			29,820			2			4.8	%		3.75	%		0.2		97.6	%		—
	Total Real Estate Related and other Loans Held-for-Sale, Net		$	1,353,531		$	795,297			25			11.97	%		6.41	%		1.3		78.8	%	$	12,000
	Non-Securitized Manufactured Housing Loan Portfolio I		$	561		$	145			15			81.45	%		7.78	%		0.9		0	%	$	56
	Non-Securitized Manufactured Housing Loan Portfolio II			2,677			2,091			100			15.43	%		10.03	%		5.2		9.6	%		181
	Total Residential Mortgage Loans Held-for-Sale, Net (D)		$	3,238		$	2,236			115			19.71	%		9.64	%		4.5		7.9	%	$	237
	Securitized Manufactured Housing Loan Portfolio I (D)(E)		$	106,304		$	91,488			2,903			9.45	%		8.62	%		6.1		0.6	%	$	1,267
	Securitized Manufactured Housing Loan Portfolio II (D)(E)			134,641			132,728			4,821			7.72	%		9.64	%		4.9		16.4	%		2,036
	Residential Loans (D)(E)			47,114			36,247			175			7.75	%		2.33	%		5.4		100	%		6,683
	Total Residential Mortgage Loans Held- for-Investment, Net		$	288,059		$	260,463			7,899			8.33	%		8.07	%		5.5		24.2	%	$	9,986
	Subprime Mortgage Loans Subject to Call Option		$	406,217		$	406,217
		(A)	Carrying value includes interest receivable of $0.1 million for the residential housing loans and principal and interest receivable of $5.0 million for the manufactured housing loans.
		(B)	The weighted average maturity is based on the timing of expected principal reduction on the assets.
		(C)	Includes loans that are 60 or more days past due (including loans that are in foreclosure, or borrower’s in bankruptcy) or considered real estate owned (“REO”). As of September 30, 2013, $142.3 million face amount of real estate related and other loans was on non-accrual status.
		(D)	Loans acquired at a discount for credit quality.
		(E)	The following is an aging analysis of past due residential loans held-for-investment as of September 30, 2013:
			30-59 Days Past Due			60-89 Days Past Due			Over 90 Days Past Due			REO			Total Past Due			Current		Total Outstanding Face Amount
	Securitized Manufactured Housing Loan Portfolio I		$	675		$	155		$	473		$	639		$	1,942		$	104,362	$	106,304
	Securitized Manufactured Housing Loan Portfolio II		$	929		$	221		$	1,199		$	616		$	2,965		$	131,676	$	134,641
	Residential Loans		$	86		$	—		$	6,124		$	559		$	6,769		$	40,345	$	47,114
	Newcastle’s management monitors the credit qualities of the Manufactured Housing Loan Portfolios I and II and residential loans primarily by using aging analyses, current trends in delinquencies and actual loss incurrence rates.
	The following is a summary of real estate related and other loans by maturities at September 30, 2013:
			Outstanding						Number of
	Year of Maturity (1)		Face Amount			Carrying Value			Loans
	Delinquent (2)		$	12,000		$	—			1
	Period from October 1, 2013 to December 31, 2013			88,648			41,146			2
	2014			834,131			384,189			9
	2015			58,199			56,340			5
	2016			72,533			70,911			2
	2017			94,981			80,790			4
	2018			—			—			—
	Thereafter			193,039			161,921			2
	Total		$	1,353,531		$	795,297			25
		-1	Based on the final extended maturity date of each loan investment as of September 30, 2013.
		-2	Includes loans that are non-performing, in foreclosure, or under bankruptcy.
	Activities relating to the carrying value of Newcastle’s real estate related and other loans and residential mortgage loans are as follows:
			Held-for-Sale						Held-for-Investment
				Real Estate Related and Other Loans			Residential Mortgage Loans			Residential Mortgage Loans			Reverse Mortgage Loans
	Balance at December 31, 2012		$	843,132		$	2,471		$	292,461		$	—
	Purchases / additional fundings			171,987			—			—			35,138
	Interest accrued to principal balance			19,495			—			—			—
	Principal paydowns			(247,930	)		(263	)		(36,294	)		—
	Sales			(9,318	)		—			—			—
	Spin-off of New Residential			—			—			—			(35,865	)
	Valuation (allowance) reversal on loans			10,529			42			902			—
	Loss on repayment of loans held-for-sale			—			—			—			—
	Accretion of loan discount and other amortization			6,689			—			3,156			727
	Other			713			(14	)		238			—
	Balance at September 30, 2013		$	795,297			2,236		$	260,463		$	—
	The following is a rollforward of the related loss allowance.
			Held-For-Sale						Held-For-Investment
				Real Estate Related and Other Loans			Residential Mortgage Loans			Residential Mortgage
										Loans (A)
	Balance at December 31, 2012		$	(182,062	)	$	(1,072	)	$	(22,478	)
	Charge-offs			60			144			3,716
	Valuation (allowance) reversal on loans			10,529			42			902
Balance at September 30, 2013		$	(171,473	)	$	(886	)	$	(17,860	)
	(A)	The allowance for credit losses was determined based on the guidance for loans acquired with deteriorated credit quality.
The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at September 30, 2013:
			Real Estate Related					Residential Mortgage Loans
			and Other Loans
Geographic Location		Outstanding Face Amount			Percentage			Outstanding Face Amount			Percentage
Western U.S.		$	131,422			26.9	%	$	176,513			60.6	%
Northeastern U.S.			68,404			14	%		8,955			3.1	%
Southeastern U.S.			85,011			17.4	%		63,000			21.6	%
Midwestern U.S.			31,633			6.5	%		10,486			3.6	%
Southwestern U.S.			67,768			13.9	%		32,343			11.1	%
Foreign			104,860			21.3	%		—			0	%
		$	489,098			100	%	$	291,297			100	%
Other			864,433		(A)
		$	1,353,531
	(A)	Includes corporate bank loans which are not directly secured by real estate assets.
For the nine months ended September 30, 2013, Newcastle increased its investment in the outstanding debt of GateHouse. Newcastle purchased from third parties an aggregate face amount of $466.0 million for an aggregate purchase price of $172.2 million during this period. As of September 30, 2013, Newcastle held $625.6 million of face amount (or 52.2% of the total outstanding) of this debt with a carrying value of $243.0 million (see Note 2).
Securitization of Subprime Mortgage Loans
The following table presents information on the retained interests in Newcastle’s securitizations of subprime mortgage loans at September 30, 2013:
		Subprime Portfolio
		I			II			Total
Total securitized loans (unpaid principal balance) (A)		$	387,199		$	521,009		$	908,208
Loans subject to call option (carrying value)		$	299,176		$	107,041		$	406,217
Retained interests (fair value) (B)		$	1,848		$	—		$	1,848
	(A)	Average loan seasoning of 98 months and 80 months for Subprime Portfolios I and II, respectively, at September 30, 2013.
	(B)	The retained interests include retained bonds of the securitizations. The fair value of which is estimated based on pricing models. Newcastle’s residual interests were written off in 2010. The weighted average yield of the retained bonds was 23.04% as of September 30, 2013.
Newcastle has no obligation to repurchase any loans from either of its subprime securitizations. Therefore, it is expected that its exposure to loss is limited to the carrying amount of its retained interests in the securitization entities, as described above.  A subsidiary of Newcastle gave limited representations and warranties with respect to Subprime Portfolio II and is required to pay the difference, if any, between the repurchase price of any loan in such portfolio and the price required to be paid by a third party originator for such loan. Such subsidiary, however, has no assets and does not have recourse to the general credit of Newcastle.
The following table summarizes certain characteristics of the underlying subprime mortgage loans, and related financing, in the securitizations as of September 30, 2013:
		Subprime Portfolio
		I			II
Loan unpaid principal balance (UPB)		$	387,199		$	521,009
Weighted average coupon rate of loans			5.89	%		5.2	%
Delinquencies of 60 or more days (UPB) (A)		$	113,349		$	205,941
Net credit losses for the nine months ended September 30, 2013		$	18,759		$	32,448
Cumulative net credit losses		$	239,176		$	289,167
Cumulative net credit losses as a % of original UPB			15.9	%		26.6	%
Percentage of ARM loans (B)			51.2	%		56.9	%
Percentage of loans with original loan-to-value ratio >90%			10.6	%		16.8	%
Percentage of interest-only loans			27.6	%		3.3	%
Face amount of debt (C)		$	383,199		$	521,009
Weighted average funding cost of debt (D)			0.55	%		0.48	%
	(A)	Delinquencies include loans 60 or more days past due, in foreclosure, under bankruptcy filing or REO.
	(B)	ARM loans are adjustable-rate mortgage loans. An option ARM is an adjustable-rate mortgage that provides the borrower with an option to choose from several payment amounts each month for a specified period of the loan term. None of the loans in the subprime portfolios are option ARMs.
	(C)	Excludes face amount of $4.0 million of retained notes for Subprime Portfolio I at September 30, 2013.
	(D)	Includes the effect of applicable hedges.
Newcastle received negligible cash inflows from the retained interests of Subprime Portfolios I and II during the nine months ended September 30, 2013 and 2012.
The loans subject to call option and the corresponding financing recognize interest income and expense based on the expected weighted average coupons of the loans subject to call option at the call date of 9.24% and 8.68% for Subprime Portfolio’s I and II, respectively.

INVESTMENTS_IN_CDO_SERVICING_R

INVESTMENTS IN CDO SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2013
Investments In Cdo Servicing Rights	'
INVESTMENTS IN CDO SERVICING RIGHTS	'
	7	INVESTMENTS IN CDO SERVICING RIGHTS
	In February 2011, Newcastle, through one of its subsidiaries, purchased the management rights with respect to certain C-BASS CDOs for $2.2 million pursuant to a bankruptcy proceeding. Newcastle initially recorded the cost of acquiring the collateral management rights as a servicing asset and subsequently amortizes this asset in proportion to, and over the period of, estimated net servicing income. Servicing assets are assessed for impairment on a quarterly basis, with impairment recognized as a valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing assets include the prepayment speeds of the underlying loans, default rates, loss severities and discount rates. During the nine months ended September 30, 2013 and 2012, respectively, Newcastle recorded $0.3 million and $0.3 million of servicing rights amortization and no servicing rights impairment. As of September 30, 2013, Newcastle’s servicing asset had a carrying value of $1.5 million recorded in Receivables and Other Assets.

INVESTMENTS_IN_REAL_ESTATE_AND

INVESTMENTS IN REAL ESTATE AND INTANGIBLES	9 Months Ended
	Sep. 30, 2013
Investments In Real Estate And Intangibles	'
INVESTMENTS IN REAL ESTATE AND INTANGIBLES	'
	8	INVESTMENTS IN REAL ESTATE AND INTANGIBLES
	Newcastle recorded investments in real estate and related intangibles at their estimated fair value at acquisition. Expenditures for ordinary maintenance and repairs are expensed as incurred. Renovations and improvements which improve and/or extend the life of the assets are capitalized and depreciated over their estimated useful lives. Newcastle will periodically assess the carrying value of the assets to determine if facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. In the event that an impairment in value occurs and Newcastle believes that the carrying amount of the assets will not be recovered, a provision will be recorded to reduce the carrying basis of the assets to their estimated fair value. The following table summarizes Newcastle’s investments in real estate:
			30-Sep-13							31-Dec-12
			Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value		Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value
	Senior Housing
	Land		$	43,494	$	—		$	43,494	$	15,993	$	—		$	15,993
	Buildings			341,249		(4,810	)		336,439		144,676		(1,349	)		143,327
	Building improvements			6,668		(461	)		6,207		2,433		(124	)		2,309
	Furniture, fixtures and equipment			17,283		(1,014	)		16,269		1,257		(85	)		1,172
	Senior Housing Total		$	408,694	$	(6,285	)	$	402,409	$	164,359	$	(1,558	)	$	162,801
	Other Commercial Real Estate
	Land		$	1,106	$	—		$	1,106	$	1,106	$	—		$	1,106
	Buildings			6,588		(1,312	)		5,276		6,588		(1,181	)		5,407
	Building improvements			951		(701	)		250		826		(667	)		159
	Furniture, fixtures and equipment			—		—			—		—		—			—
	Other Commercial Real Estate Total		$	8,645	$	(2,013	)	$	6,632	$	8,520	$	(1,848	)	$	6,672
	Total Investments in Real Estate		$	417,339	$	(8,298	)	$	409,041	$	172,879	$	(3,406	)	$	169,473
	Intangibles
	The following table summarizes Newcastle’s intangible assets related to its senior housing real estate:
			30-Sep-13							31-Dec-12
			Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
	In-place resident lease intangibles		$	51,250	$	(14,983	)	$	36,267	$	22,711	$	(4,205	)	$	18,506
	Non-compete intangibles			1,600		(143	)		1,457		600		(20	)		580
	Other intangibles			3,700		(53	)		3,647		—		—			—
	Total intangibles		$	56,550	$	(15,179	)	$	41,371	$	23,311	$	(4,225	)	$	19,086
	The gross carrying amount of the in-place resident lease intangibles is amortized on a straight-line basis over the average length of stay of the residents: 24 months for assisted living and memory care facilities and 33 months for independent living facilities. The gross carrying amount of the non-compete intangibles and other intangibles is amortized on a straight-line basis over the stated term within the respective agreements, 5 years and 13 years, respectively.

DEBT_OBLIGATIONS

DEBT OBLIGATIONS	9 Months Ended
	Sep. 30, 2013
Debt Obligations	'
DEBT OBLIGATIONS	'
	9.   DEBT OBLIGATIONS
	The following table presents certain information regarding Newcastle’s debt obligations and related hedges at September 30, 2013:
																				Collateral
	Debt Obligation/Collateral		Month Issued	Outstanding		Carrying		Final Stated Maturity	Unhedged Weighted				Weighted Average			Weighted Average Maturity		Face		Outstanding Face Amount (C)		Amortized		Carrying		Weighted Average Maturity		Floating Rate Face Amount (C)		Aggregate
				Face		Value			Average				Funding			(Years)		Amount				Cost Basis (C)		Value (C)		(Years)				Notional
				Amount					Funding Cost (A)				Cost (B)					of Floating Rate												Amount of Current Hedges (D)
																		Debt
	CDO Bonds Payable
	CDO VI (E)		Apr-05		91,908		91,908	Apr 2040		0.85	%			5.35	%		5.7		88,671		170,592		90,638		125,464		3		42,323		88,671
	CDO VIII		Nov-06		344,953		344,351	Nov 2052		0.88	%			2.37	%		1.3		337,353		547,236		387,615		417,192		2.3		306,024		105,393
	CDO IX		May-07		280,647		282,214	May 2052		0.56	%			0.53	%		0.5		280,647		557,946		433,394		442,687		2.5		290,976		—
					717,508		718,473							2.03	%		1.6		706,671		1,275,774		911,647		985,343		2.5		639,323		194,064
	Other Bonds and Notes Payable
	MH Loans Portfolio I (F)		Apr-10		57,684		54,230	Jul-35		6.47	%			6.47	%		4.1		—		106,304		91,488		91,488		6.1		670		—
	MH Loans Portfolio II		May 2011		99,979		99,568	Dec-33		4.61	%			4.61	%		3.8		—		134,641		132,728		132,728		4.9		22,104		—
					157,663		153,798							5.27	%		3.9		—		240,945		224,216		224,216		5.5		22,774		—
	Repurchase Agreements (G)
	FNMA/FHLMC securities (H)		Sep-13		361,836		361,836	Oct 2013		0.38	%			0.38	%		0.1		361,836		362,484		386,640		387,608		3.7		362,484		—
	Newcastle CDO IX-Class A-2		Sep-13		15,050		15,050	Oct 2013		LIBOR+1.65	%			1.83	%		0.1		15,050		—		—		—		—		—		—
					376,886		376,886							0.44	%		0.1		376,886		362,484		386,640		387,608		3.7		362,484		—
	Mortgage Notes Payable
	BPM Senior Housing Facilities		Jul-12		107,007		107,007	Sep-19		4.12	%			4.42	%		5.6		—		N/A		129,767		129,767		N/A		—		—
	Utah Senior Housing Facilities		Nov-12		16,000		16,000	Oct-17		LIBOR+3.75	%	(I)		5.15	%		4		16,000		N/A		21,059		21,059		N/A		—		—
	Courtyards Senior Housing facilities		Dec-12		16,125		16,125	Oct-17		LIBOR+3.75	%	(I)		5.06	%		4		16,125		N/A		20,179		20,179		N/A		—		—
	Woodside Senior Housing Facilities		Jul-13		14,100		14,100	Aug-16		LIBOR+3.75	%			4.58	%		2.8		14,100		N/A		18,667		18,667		N/A		—		—
	Florida Senior Housing Facilities
	GE Financing		Aug-13		93,521		93,521	Jul-18		LIBOR+3.75	%	(I)		5	%		4.8		93,521		N/A		127,966		127,966		N/A		—		—
	Freddie Mac Financing		Aug-13		41,394		39,678	Apr-20		4	%	(J)		4.9	%		5.3		—		N/A		69,145		69,145		N/A		—		—
	Seller Financing		Aug-13		11,432		9,432	Apr-18		1.68	%	(K)		1.68	%		4.8		11,432		N/A		—		—		N/A		—		—
	Glen Riddle Senior Housing Facilities		Aug 2013		16,875		16,875	Oct-17		LIBOR+3.75	%	(I)		5.01	%		4		16,875		N/A		21,899		21,899		N/A		—		—
	Royal Palm Senior Housing Facilities				14,250		14,250	Jul-18		LIBOR+3.75	%	(I)		4.99	%		4.8		14,250		N/A		18,644		18,644		N/A		—		—
	Schenley Gardens Senior Housing Facilities		Sep-13		8,250		8,250	Oct-17		LIBOR+3.75	%	(I)		5.04	%		4		8,250		N/A		16,454		16,454		N/A		—		—
					338,954		335,238							4.7	%		4.9		190,553		N/A		443,780		443,780		N/A		—		—
	Corporate
	Junior subordinated notes payable		Mar 2006		51,004		51,239	Apr-35		7.574	%	(L)		7.39	%		21.6		—		—		—		—		—		—		—
					51,004		51,239							7.39	%		21.6		—		—		—		—		—		—		—
	Subtotal debt obligations				1,642,015		1,635,634							2.7	%		2.8	$	1,274,110	$	1,879,203	$	1,966,283	$	2,040,947		3.1	$	1,024,581	$	194,064
	Financing on subprime mortgage loans subject to call option (M)				406,217		406,217
	Total debt obligations			$	2,048,232	$	2,041,851
	See notes on next page
		(A)	Weighted average, including floating and fixed rate classes and including the amortization of deferred financing costs.
		(B)	Including the effect of applicable hedges.
		(C)	Excluding (i) restricted cash held in CDOs to be used for principal and interest payments of CDO debt, and (ii) operating cash in senior housing entities.
		(D)	Including a $88.7 million notional amount of interest rate swap agreement in CDO VI, which was an economic hedge not designated as a hedge for accounting purposes.
		(E)	This CDO was not in compliance with its applicable over collateralization tests as of September 30, 2013. Newcastle is not receiving cash flows from this CDO (other than senior management fees and cash flows on senior classes of bonds that were repurchased), since net interest is being used to repay debt, and expects this CDO to remain out of compliance for the foreseeable future.
		(F)	Excluding $20.5 million face amount of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.
		(G)	These repurchase agreements had $0.05 million of associated accrued interest payable at September 30, 2013. $376.9 million face amount of these repurchase agreements were renewed subsequent to September 30, 2013. The counterparties on these repurchase agreements are Bank of America ($262.4 million), Barclays ($18.5 million), Citi ($38.4 million), Goldman Sachs ($9.8 million) and Nomura ($47.8 million).
		(H)	Interest rates on these repurchase agreements are fixed, but will be reset on a short-term basis.
		(I)	These financings are with GE and are split between two separate credit facilities. Utah, Courtyards, Glen Riddle and Schenley Gardens share one credit facility and Florida and Royal Palm share a separate credit facility. These financings have a LIBOR floor of 1%.
		(J)	Upon assuming these loans, Newcastle bought down the interest rate to 4% for the first two years. The interest rate will be fixed, ranging from 5.99% to 6.76% for the remaining term.
		(K)	The interest rate for the first two years is based on applicable US Treasury Security rates. The interest rate for years 3 through 5 is 4.5%, 4.75% and 5.0%, respectively.
		(L)	LIBOR +2.25% after April 2016.
		(M)	Issued in April 2006 and July 2007. See Note 6 regarding the securitizations of Subprime Portfolios I and II.
	Each CDO financing is subject to tests that measure the amount of over collateralization and excess interest in the transaction.  Failure to satisfy these tests would cause the principal and/or interest cashflow that would otherwise be distributed to more junior classes of securities (including those held by Newcastle) to be redirected to pay down the most senior class of securities outstanding until the tests are satisfied. As a result, Newcastle’s cash flow and liquidity are negatively impacted upon such a failure. As of September 30, 2013, CDO VI was not in compliance with its over collateralization tests.
	For the nine months ended September 30, 2013, Newcastle repurchased $35.9 million face amount of CDO bonds payable for $31.3 million. As a result, Newcastle extinguished $35.9 million face amount of CDO bonds payable and recorded a gain on extinguishment of debt of $4.6 million.
	Newcastle’s non-CDO financings contain various customary loan covenants. Newcastle was in compliance with all of the covenants in its non-CDO financings as of September 30, 2013.
	In June 2013, Newcastle completed the sale of 100% of the assets in CDO IV. Newcastle sold $153.4 million face amount of collateral at an average price of 95% of par, or $145.2 million. Subsequently, Newcastle paid off $71.9 million of outstanding third party debt and terminated the CDO. This transaction resulted in approximately $73.1 million of proceeds to Newcastle of which approximately $5.3 million was received in Newcastle CDO VIII. Newcastle recovered par on $59.5 million of CDO debt which had been repurchased in the past at an average price of 52% of par and $8.0 million of proceeds on its subordinated interests. This transaction has also decreased Newcastle’s comprehensive income by $0.6 million and resulted in a net gain on sale of assets of $4.2 million and a $0.8 million gain on hedge termination.
	In June 2013, Newcastle completed the purchase of $116.8 million aggregate face amount of securities that are collateralized by certain Newcastle CDO VIII Class I notes for an aggregate purchase of approximately $103.1 million, or an average price of 88.3% of par. Simultaneously, Newcastle financed the purchase with $60.0 million received pursuant to a master repurchase agreement with the seller of the securities (“CDO VIII Repack”). The terms of the repurchase agreement included a rate of one-month LIBOR plus 150 bps and a 30-day maturity. The repurchase agreement includes various customary default events, including a default if Newcastle’s market capitalization declines by 50% from the market capitalization observed at the last trading day of the previous quarter. An event of default under the master repurchase agreement, if one occurs, would require Newcastle to immediately pay off the outstanding debt or the lender would have the right to liquidate the collateral. The purchase of the securities and the repurchase agreement are treated as a linked transaction and accordingly recorded on a net basis as a non-hedge derivative instrument, with changes in market value recorded on the statement of income. During the three and nine months ended September 30, 2013, there were no changes in market value in CDO VIII Repack.

FAIR_VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2013
Fair Value	'
FAIR VALUE	'
	10.   FAIR VALUE
	Fair Value Summary Table
	The carrying values and fair values of Newcastle’s assets and liabilities at September 30, 2013 were as follows:
			Principal														Weighted				Weighted
			Balance or														Average				Average
			Notional				Carrying				Estimated						Yield/Funding				Maturity
			Amount				Value				Fair Value				Fair Value Method (A)		Cost				(Years)
	Assets
	Financial instruments:
	Real estate securities, available-for-sale*		$	1,038,815			$	825,499			$	825,499			Broker quotations, counterparty quotations,  pricing services,  pricing models			5.64	%			3.1
	Real estate related and other loans, held-for-sale, net			1,353,531				795,297				808,151			Broker quotations, counterparty quotations, pricing services,  pricing models			11.97	%			1.3
	Residential mortgage loans, held-for-investment, net			288,059				260,463				261,994			Pricing models			8.33	%			5.5
	Residential mortgage loans, held-for-sale, net			3,238				2,236				2,236			Pricing models			19.71	%			4.5
	Subprime mortgage loans subject to call option (B)			406,217				406,217				406,217			(B)			9.09	%			(B	)
	Restricted cash*			1,827				1,827				1,827
	Cash and cash equivalents*			92,134				92,134				92,134
	Non-hedge derivative assets (C)(D)*			116,806				43,172				43,172			Counterparty quotations			N/A				(C	)
	Investments in real estate and intangibles, net							450,412
	Equity method investment in Local Media Group							57,384
	Other investments							25,133
	Receivables and other assets							27,003
							$	2,986,777
	Liabilities
	Financial instruments:
	CDO bonds payable (F)		$	717,508			$	718,473			$	568,186			Pricing models			2.03	%			1.6
	Other bonds and notes payable (F)			157,663				153,798				157,916			Broker quotations, pricing models			5.27	%			3.9
	Repurchase agreements			376,886				376,886				376,886			Market comparables			0.44	%			0.1
	Mortgage notes payable			338,954				335,238				335,238			Pricing models			4.7	%			4.9
	Financing of subprime mortgage loans subject to call option (B)			406,217				406,217				406,217			(B)			9.09	%			(B	)
	Junior subordinated notes payable			51,004				51,239				34,385			Pricing models			7.39	%			21.6
	Interest rate swaps, treated as hedges (D)(E)*			105,393				7,416				7,416			Counterparty quotations			N/A				(E	)
	Non-hedge derivatives (C)(D)*			186,008				9,699				9,699			Counterparty quotations			N/A				(C	)
	Due to affiliates							4,911
	Dividends payable, accrued expenses and other liabilities							57,925
							$	2,121,802
	*Measured at fair value on a recurring basis.
		(A)	Methods are listed in order of priority. In the case of real estate securities and real estate related and other loans, broker quotations are obtained if available and practicable, otherwise counterparty quotations or pricing service valuations are obtained or, finally, internal pricing models are used. Internal pricing models are only used for (i) securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) loans or debt obligations which are private and untraded.
		(B)	These two items result from an option, not an obligation, to repurchase loans from Newcastle’s subprime mortgage loan securitizations (Note 6), are noneconomic until such option is exercised, and are equal and offsetting.
		(C)	This represents one interest rate swap agreement with a total notional balance of $186.0 million, maturing in March 2015 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI. These derivative agreements were not designated as hedges for accounting purposes as of September 30, 2013.
		(D)	Newcastle’s derivatives fall into two categories. As of September 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle’s nonrecourse structures. An aggregate notional balance of $291.4 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs’ total investments exceeded the fair value of each of the CDOs’ derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $116.8 million, represent linked transactions with $116.8 face amount of underlying financed securities. Newcastle’s interest rate swap counterparties include Bank of America and Credit Suisse.
		(E)	Represents derivative agreements:
	Year of Maturity		Weighted Average Month of Maturity			Aggregate Notional Amount				Weighted Average Fixed Pay Rate / Cap Rate				Aggregate Fair Value
														Asset / (Liability)
	Interest rate swap agreements which receive 1-Month LIBOR:
	2016		Apr			$	105,393				5.04	%		$	(7,416	)
		(F)	Newcastle notes that the unrealized gain on the liabilities within CDOs and other non-recourse financing structures cannot be fully realized. Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle’s exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. As a result, the fair value of Newcastle’s net investments in these nonrecourse financing structures is equal to the present value of their expected future net cash flows.
	Valuation Hierarchy
	The methodologies used for valuing such instruments have been categorized into three broad levels, which form a hierarchy.
	Level 1 - Quoted prices in active markets for identical instruments.
	Level 2 - Valuations based principally on other observable market parameters, including
		●	Quoted prices in active markets for similar instruments,
		●	Quoted prices in less active or inactive markets for identical or similar instruments,
		●	Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and
		●	Market corroborated inputs (derived principally from or corroborated by observable market data).
	Level 3 - Valuations based significantly on unobservable inputs.
		●	Level 3A - Valuations based on third party indications (broker quotes, counterparty quotes or pricing services) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.
		●	Level 3B - Valuations based on internal models with significant unobservable inputs.
	Newcastle follows this hierarchy for its financial instruments measured at fair value on a recurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.
	Newcastle has various processes and controls in place to ensure that fair value is reasonably estimated. With respect to the broker and pricing service quotations, to ensure these quotes represent a reasonable estimate of fair value, Newcastle’s quarterly procedures include a comparison to the outputs generated from its internal pricing models and transactions
	Newcastle has completed with respect to these or similar securities, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on Newcastle’s internal pricing models, Newcastle’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third party market parameters, where available, and models for reasonableness. Newcastle believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. The board of directors has reviewed Newcastle’s process for determining the valuations of its investments based on information provided by the Manager and has concluded such process is reasonable and appropriate.
	Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For Newcastle’s investments in real estate securities, real estate related and other loans and residential mortgage loans categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Significant increases (decreases) in any of the discount rates, default rates or loss severities in isolation would result in a significantly lower (higher) fair value measurement. The impact of changes in prepayment speeds would have differing impacts on fair value, depending on the seniority of the investment. Generally, a change in the default assumption is generally accompanied by directionally similar changes in the assumptions used for the loss severity and the prepayment speed.
	The following table summarizes such financial assets and liabilities measured at fair value on a recurring basis at September 30, 2013:
											Fair Value
		Principal Balance or Notional Amount				Carrying Value				Level 2				Level 3A				Level 3B				Total
Assets
Real estate securities, available-for-sale:
CMBS		$	343,917			$	286,076			$	—			$	283,866			$	2,210			$	286,076
REIT debt			29,200				31,215				31,215				—				—				31,215
Non-Agency RMBS			101,315				57,506				—				57,393				113				57,506
ABS - other real estate			8,464				—				—				—				—				—
FNMA / FHLMC			362,484				387,608				387,608				—				—				387,608
CDO			193,435				63,094				—				58,036				5,058				63,094
Real estate securities total		$	1,038,815			$	825,499			$	418,823			$	399,295			$	7,381			$	825,499
Derivative assets:
Linked transactions at fair value			116,806				43,172				—				43,172				—				43,172
Derivative assets total		$	116,806			$	43,172			$	—			$	43,172			$	—			$	43,172
Liabilities
Derivative Liabilities:
Interest rate swaps, treated as hedges		$	105,393			$	7,416			$	7,416			$	—			$	—			$	7,416
Interest rate swaps, not treated as hedges			186,008				9,699				9,699				—				—				9,699
Derivative liabilities total		$	291,401			$	17,115			$	17,115			$	—			$	—			$	17,115
Newcastle’s investments in instruments measured at fair value on a recurring basis using Level 3 inputs changed during the nine months ended September 30, 2013 as follows:
		Level 3A
		CMBS								ABS
		Conduit				Other				Non-Agency RMBS				Other				Equity/Other Securities				Linked Transactions			Total
Balance at December 31, 2012		$	225,575			$	104,451				330,021			$	798			$	65,027			$	—		$	725,872
Transfers (A)
Transfers from Level 3B			12,152				11,803				21,897				—				—				—			45,852
Transfers into Level 3B			(3,291	)			(8,257	)			—				—				—				—			(11,548	)
Spin-off of New Residential			—				—				(560,783	)			—				—				—			(560,783	)
Total gains (losses) (B)
Included in net income (C)			279				(165	)			(683	)			(87	)			1,381				—			725
Included in other comprehensive income (loss)			10,836				2,128				26,542				296				(1,581	)			—			38,221
Amortization included in interest income			6,746				516				12,375				—				3,703				—			23,340
Purchases, sales and repayments
Purchases			—				—				267,160				—				—				43,172			310,332
Proceeds from sales			(51,708	)			(16,902	)			(6,127	)			(934	)			(4,801	)			—			(80,472	)
Proceeds from repayments			(4,758	)			(5,539	)			(33,009	)			(73	)			(5,693	)			—			(49,072	)
Balance at September 30, 2013		$	195,831			$	88,035				57,393			$	—			$	58,036			$	43,172		$	442,467
		Level 3B
		CMBS								ABS
		Conduit				Other				Non-Agency RMBS				Other				Equity/Other Securities				Linked Transactions			Total
Balance at December 31, 2012		$	29,194			$	17,171			$	25,954			$	677			$	5,998			$	—		$	78,994
Transfers (A)
Transfers from Level 3A			3,291				8,257				—				—				—				—			11,548
Transfers into Level 3A			(12,152	)			(11,803	)			(21,897	)			—				—				—			(45,852	)
Total gains (losses) (B)
Included in net income (C)			69				(159	)			3,055				5				—				—			2,970
Included in other comprehensive income (loss)			3,607				1,135				(2,137	)			(223	)			(42	)			—			2,340
Amortization included in interest income			1,593				240				3,345				307				365				—			5,850
Purchases, sales and repayments
Purchases			—				—				—				—				—				—			—
Proceeds from sales			(21,868	)			(14,841	)			(5,054	)			(425	)			—				—			(42,188	)
Proceeds from repayments			(1,524	)			—				(3,153	)			(341	)			(1,263	)			—			(6,281	)
Balance at September 30, 2013		$	2,210			$	—			$	113			$	—			$	5,058			$	—		$	7,381
	(A)	Transfers are assumed to occur at the beginning of the quarter.
	(B)	None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date.
	(C)	These gains (losses) are recorded in the following line items in the consolidated statements of income:
		Nine Months Ended September 30, 2013
		Level 3A				Level 3B
Gain (loss) on settlement of investments, net		$	1,531			$	3,586
Other income (loss), net			—				—
OTTI			(806	)			(616	)
Total		$	725			$	2,970
Gain (loss) on settlement of investments, net, from investments transferred into Level 3 during the period		$	—			$	—
Securities Valuation
As of September 30, 2013, Newcastle’s securities valuation methodology and results are further detailed as follows:
										Fair Value
		Outstanding				Amortized												Internal
		Face				Cost				Multiple				Single				Pricing
Asset Type		Amount (A)				Basis (B)				Quotes (C)				Quote (D)				Models (E)				Total
CMBS		$	343,917			$	228,946			$	241,108			$	42,758			$	2,210			$	286,076
REIT debt			29,200				28,607				31,215				—				—				31,215
Non-Agency RMBS			101,315				40,950				57,393				—				113				57,506
ABS - other real estate			8,464				—				—				—				—				—
FNMA / FHLMC			362,484				386,640				387,608				—				—				387,608
CDO			193,435				61,230				—				58,036				5,058				63,094
Total		$	1,038,815			$	746,373			$	717,324			$	100,794			$	7,381			$	825,499
	(A)	Net of incurred losses
	(B)	Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.
	(C)	Management generally obtained pricing service quotations or broker quotations from at least two sources, one of which was generally the seller (the party that sold us the security). Management selected one of the quotes received as being most representative of fair value and did not use an average of the quotes. Even if Newcastle receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes Newcastle receives. Management believes using an average of the quotes in these cases would generally not represent the fair value of the asset. Based on Newcastle’s own fair value analysis using internal models, management selects one of the quotes which are believed to more accurately reflect fair value. Newcastle never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” – meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price.
	(D)	Management was unable to obtain quotations from more than one source on these securities. The one source was generally the seller (the party that sold us the security) or a pricing service.
	(E)	Securities whose fair value was estimated based on internal pricing models are further detailed as follows:
										Impairment				Unrealized				Weighted Average Significant Input
		Amortized								Recorded				Gains											Cumulative
										In				(Losses) in
		Cost								Current				Accumulated				Discount				Prepayment			Default			Loss
		Basis (B)				Fair Value				Period				OCI				Rate				Speed (F)			Rate			Severity
CMBS - Conduit		$	797			$	2,210			$	76			$	1,413				8	%			N/A			24.5	%		47.1	%
Non-Agency RMBS			—				113				—				113				8	%			2	%		8	%		75	%
CDO			3,081				5,058				—				1,977				17.7	%			4.5	%		17.5	%		73.5	%
Total		$	3,878			$	7,381			$	76			$	3,503
All of the assumptions listed have some degree of market observability, based on Newcastle’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions.  Newcastle uses assumptions that generate its best estimate of future cash flows of each respective security.
The prepayment vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services.
Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. Newcastle typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also effect loss severity. Newcastle considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections.
Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model.
The discount rates Newcastle uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which Newcastle transacts have become less liquid, Newcastle has had to rely on fewer data points in this analysis.
	(F)	Projected annualized average prepayment rate.
Loan Valuation
Loans which Newcastle does not have the ability or intent to hold into the foreseeable future are classified as held-for-sale. As a result, these held-for-sale loans are carried at the lower of amortized cost or fair value and are therefore recorded at fair value on a non-recurring basis. These loans were written down to fair value at the time of the impairment, based on broker quotations, pricing service quotations or internal pricing models. All the loans were within Level 3 of the fair value hierarchy. For real estate related and other loans, the most significant inputs used in the valuations are the amount and timing of expected future cash flows, market yields and the estimated collateral value of such loan investments.  For residential mortgage loans, significant inputs include management’s expectations of prepayment speeds, default rates, loss severities and discount rates that market participants would use in determining the fair values of similar pools of residential mortgage loans.
The following tables summarize certain information for real estate related and other loans and residential mortgage loans held-for-sale as of September 30, 2013:
														Valuation				Significant Input
		Outstanding												Allowance/				Range							Weighted Average
		Face				Carrying				Fair				(Reversal) In				Discount				Loss			Discount			Loss
Loan Type		Amount				Value				Value				Current Year				Rate				Severity			Rate			Severity
Mezzanine		$	338,178			$	268,635			$	272,735			$	(13,611	)			5.0% - 25.3%				0.0% - 100.0%			10.7	%		5.4	%
Bank Loan			875,072				402,139				409,354				(3,110	)			5.9% - 33.3%				0.0% - 100.0%			13.7	%		45.1	%(A)
B-Note			110,461				94,703				96,179				6,192				6.0% - 15.0%				0.0% - 47.0%			10.5	%		9.7	%
Whole Loan			29,820				29,820				29,883				—				4.8% - 6.9%				0.0% - 15.5%			4.8	%		15.1	%
Total Real Estate Related and other Loans Held-for-Sale, Net		$	1,353,531			$	795,297			$	808,151			$	(10,529	)
(A) Primarily driven by the 60% severity of the GateHouse loans (see Note 2).
														Valuation
		Outstanding												Allowance/				Significant Input (Weighted Average)
		Face				Carrying				Fair				(Reversal) In				Discount				Prepayment			Constant			Loss
Loan Type		Amount				Value				Value				Current Year				Rate				Speed			Default Rate			Severity
Non-securitized Manufactured Housing Loans Portfolio I		$	561			$	145			$	145			$	(9	)			81.5	%			5	%		11.6	%		65	%
Non-securitized Manufactured Housing Loans Portfolio II			2,677				2,091				2,091				(33	)			15.4	%			5	%		3.5	%		60	%
Total Residential Mortgage Loans Held-for-Sale, Net		$	3,238			$	2,236			$	2,236			$	(42	)
Loans which Newcastle has the intent and ability to hold into the foreseeable future are classified as held-for-investment. Loans held-for-investment are carried at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, an allowance for loan losses, charge-offs and write-downs for impaired loans.
The following table summarizes certain information for residential mortgage loans held-for-investment as of September 30, 2013:
																		Significant Input (Weighted Average)
Loan Type		Outstanding Face Amount				Carrying Value				Fair Value				Valuation Allowance/ (Reversal) In Current Year				Discount Rate				Prepayment Speed			Constant Default Rate			Loss Severity
Securitized Manufactured Housing Loans Portfolio I		$	106,304			$	91,488			$	93,533			$	(1,778	)			9.5	%			6	%		3	%		65	%
Securitized Manufactured Housing Loans Portfolio II			134,641				132,728				128,623				1,740				7.7	%			7	%		3.5	%		60	%
Residential Loans			47,114				36,247				39,838				(864	)			7.8	%			4.6	%		2.8	%		46	%
Total Residential Mortgage Loans, Held-for-Investment, Net		$	288,059			$	260,463			$	261,994			$	(902	)
Derivatives
Newcastle’s derivative instruments are comprised of interest rate swaps and linked transactions. Newcastle’s interest rate swaps are valued using counterparty quotations. These quotations are generally based on valuation models with model inputs that can generally be verified and which do not involve significant judgment. The significant observable inputs used in determining the fair value of Newcastle’s Level 2 interest rate swap derivative contracts are contractual cash flows and market based interest rate curves. The linked transactions, which are categorized into Level 3, are evaluated on a net basis considering their underlying components, the security acquired and the related repurchase financing agreement. The securities are valued using a similar methodology to the one described in “Securities Valuation” above and this value is netted against the carrying value of the repurchase agreement (which approximates fair value as described in “Liabilities for Which Fair Value is Only Disclosed” below), adjusted for net accrued interest receivable/payable on the securities and repurchase agreement of the linked transactions (see Note 9 for a discussion of Newcastle’s outstanding linked transactions).
Newcastle’s derivatives are recorded on its balance sheet as follows:
				Fair Value
				September 30,				December 31,
		Balance sheet location		2013				2012
Derivative Assets
Linked transactions at fair value		Derivative Assets		$	43,172			$	—
Interest rate caps, not designated as hedges		Derivative Assets			—				165
				$	43,172			$	165
Derivative Liabilities
Interest rate swaps, designated as hedges		Derivative Liabilities		$	7,416			$	12,175
Interest rate swaps, not designated as hedges		Derivative Liabilities			9,699				19,401
				$	17,115			$	31,576
The following table summarizes information related to derivatives:
		30-Sep-13				31-Dec-12
Cash flow hedges
Notional amount of interest rate swap agreements		$	105,393			$	154,450
Amount of (loss) recognized in OCI on effective portion			(7,331	)			(12,050	)
Deferred hedge gain (loss) related to anticipated financings, which have subsequently occurred, net of amortization			187				237
Deferred hedge gain (loss) related to dedesignation, net of amortization			(163	)			(210	)
Expected reclassification of deferred hedges from AOCI into earnings over the next 12 months			8				4
Expected reclassification of current hedges from AOCI into earnings over the next 12 months			(4,547	)			(6,259	)
Non-hedge Derivatives
Notional amount of interest rate swap agreements			186,008				294,203
Notional amount of interest rate cap agreements			—				23,400
Notional amount of linked transactions (A)			116,806				—
(A) This represents the current face amount of the underlying financed securities comprising linked transactions.
The following table summarizes gains (losses) recorded in relation to derivatives:
				Three Months Ended								Nine Months Ended
				September 30,								September 30,
		Income statement location		2013				2012				2013				2012
Cash flow hedges
Gain (loss) on the ineffective portion		Other income (loss)		$	—			$	—			$	—			$	483
Gain (loss) immediately recognized at dedesignation		Gain (loss) on sale of investments; Other income (loss)			—				—				—				(7,036	)
Amount of gain (loss) reclassified from AOCI into income, related to effective portion		Interest expense			(1,280	)			(7,830	)			(4,848	)			(28,766	)
Deferred hedge gain reclassified from AOCI into income, related to anticipated financings		Interest expense			17				15				50				45
Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges		Interest expense			(16	)			307				(48	)			1,205
Non-hedge derivatives gain (loss)
Interest rate swaps		Other income (loss)			1,894				1,975				7,302				6,052
Linked transactions		Interest expense			(110	)			—				(118	)			—
The following table presents both gross information and net information about linked transactions as of September 30, 2013:
Real estate securities-available for sale (A)		$	103,140
Repurchase agreements (B)			(59,968	)
Net assets recognized as linked transactions		$	43,172
	(A)	Represents the fair value of the securities accounted for as part of linked transactions at September 30, 2013.
	(B)	Represents the carrying value, which approximates fair value, of the repurchase agreements accounted for as part of linked transactions at September 30, 2013.
Liabilities for Which Fair Value is Only Disclosed
The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed:
Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed	Fair Value Hierarchy	Valuation Techniques and Significant Inputs
CDO bonds payable	Level 3	Valuation technique is based on discounted cash flow.
		Significant inputs include:
		●    Underlying security and loan prepayment, default and cumulative loss expectations
		●    Amount and timing of expected future cash flows
		●    Market yields and credit spreads implied by comparisons to transactions of similar tranches of CDO debt by the varying levels of subordination
Other bonds and notes payable	Level 3	Valuation technique is based on discounted cash flow.
		Significant inputs include:
		●    Amount and timing of expected future cash flows
		●    Interest rates
		●    Broker quotations
		●    Market yields and credit spreads implied by comparisons to transactions of similar tranches of securitized debt by the varying levels of subordination
Repurchase agreements	Level 2	Valuation technique is based on market comparables.
		Significant variables include:
		●    Amount and timing of expected future cash flows
		●    Interest rates
		●    Collateral funding spreads
Mortgage notes payable	Level 3	Valuation technique is based on discounted cash flows.
		Significant inputs include:
		●    Amount and timing of expected future cash flows
		●    Interest rates
		●    Collateral funding spreads
Junior subordinated notes payable	Level 3	Valuation technique is based on discounted cash flow.
		Significant inputs include:
		●    Amount and timing of expected future cash flows
		●    Interest rates
		●    Market yields and the credit spread of Newcastle

EQUITY_AND_EARNINGS_PER_SHARE

EQUITY AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2013
Equity And Earnings Per Share	'
EQUITY AND EARNINGS PER SHARE	'
	11.   EQUITY AND EARNINGS PER SHARE
		A.	Stockholder’s Equity
	On June 6, 2013, Newcastle’s stockholders approved an amendment to the Newcastle’s charter, to increase the total number of authorized shares of common stock, par value $0.01 per share, from 500 million shares to 1.0 billion shares and correspondingly, to increase the total number of authorized shares of Newcastle capital stock from 600 million shares to 1.1 billion shares, which includes 100 million shares of preferred stock, par value $0.01 per share.
	In January 2013, Newcastle issued 57,500,000 shares of its common stock in a public offering at a price to the public of $9.35 per share for net proceeds of approximately $526.2 million. Certain principals of Fortress participated in this offering and purchased an aggregate of 213,900 shares at a price of $9.35 per share. For the purpose of compensating the Manager for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to the Manager to purchase 5,750,000 shares of Newcastle’s common stock at a price of $9.35, which had a fair value of approximately $18.0 million as of the grant date. The assumptions used in valuing the options were: a 2.0% risk-free rate, an 8.8% dividend yield, 56.2% volatility and a 10 year term.
	In February 2013, Newcastle issued 23,000,000 shares of its common stock in a public offering at a price to the underwriters of $10.34 per share for net proceeds of approximately $237.4 million. Certain principals of Fortress participated in this offering and purchased an aggregate of 191,000 shares at a price of $10.48 per share. For the purpose of compensating the Manager for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to the Manager to purchase 2,300,000 shares of Newcastle’s common stock at a price of $10.48, which had a fair value of approximately $8.4 million as of the grant date. The assumptions used in valuing the options were: a 2.1% risk-free rate, a 7.8% dividend yield, 55.5% volatility and a 10 year term.
	In June 2013, Newcastle issued 40,250,000 shares of its common stock in a public offering at a price to the underwriters of $4.92 per share for net proceeds of approximately $197.6 million. Certain principals of Fortress participated in this offering and purchased an aggregate of 750,000 shares at a price of $4.97 per share. For the purpose of compensating the Manager for its successful efforts in raising capital for Newcastle, in connection with this offering, Newcastle granted options to the Manager to purchase 4,025,000 shares of Newcastle’s common stock at a price of $4.97, which had a fair value of approximately $3.8 million as of the grant date. The assumptions used in valuing the options were: a 2.5% risk-free rate, an 8.8% dividend yield, 36.9% volatility and a 10 year term.
	Prior to the spin-off, Newcastle had issued options to the Manager in connection with capital raising activities. In connection with the spin-off, 21.5 million options that were held by the Manager, or by the directors, officers or employees of the Manager, were converted into an adjusted Newcastle option and a new New Residential option. The exercise price of each adjusted Newcastle option and New Residential option was set to collectively maintain the intrinsic value of the Newcastle option immediately prior to the spin-off and to maintain the ratio of the exercise price of the adjusted Newcastle option and the New Residential option, respectively, to the fair market value of the underlying shares as of the spin-off date, in each case based on the five day average closing price subsequent to the spin-off date.
	Newcastle’s outstanding options at September 30, 2013 consisted of the following:
			Number of Options		Strike Price		Maturity Date
				304,604		10.18	12/1/13
				328,350		11.74	1/9/14
				343,275		11.49	5/25/14
				162,500		14.05	11/22/14
				330,000		13.24	1/12/15
				2,000		13.83	8/1/15
				170,000		13.16	11/1/16
				242,000		14.01	1/23/17
				456,000		12.4	4/11/17
				1,580,166		2.72	3/29/21
				2,424,833		2.07	9/27/21
				2,000		2.28	12/20/21
				1,867,167		2.82	4/3/22
				2,265,000		3.05	5/21/22
				2,499,167		3.04	7/31/22
				5,750,000		4.24	1/11/23
				2,300,000		4.75	2/15/23
				4,025,000		4.97	6/17/23
	Total W/A			25,052,062	$	4.52
	As of September 30, 2013, Newcastle’s outstanding options were summarized as follows:
	Held by the Manager			21,918,795
	Issued to the Manager and subsequently transferred to certain of the Manager's employees			3,129,267
	Issued to the independent directors			4,000
	Total			25,052,062
	Pursuant to Newcastle’s Stock Incentive Plan and the additional terms established by resolution of the board of directors, each of Newcastle’s non-employee directors receives an annual award of Newcastle’s common stock effective on the first business day after Newcastle’s annual meeting of stockholders, which for 2013 are valued at $50,000 based on the per share closing price of Newcastle’s common stock on the New York Stock Exchange on the date of such grant. Accordingly, in June 2013 each such director received 9,025 shares of common stock.
		B.	Option Exercises
	As a result of his resignation, Newcastle’s former CFO exercised 307,833 options with a weighted average exercise price of $2.56 on September 3, 2013. Upon exercise, 162,896 shares of common stock of Newcastle were issued to the former CFO, reflecting the $0.9 million aggregate intrinsic value of the exercisable options net of the exercise price. In addition, 192,167 unvested options and 2,170 vested options were forfeited by the former CFO and transferred back to the Manager.
		C.	Earnings Per Share
	Newcastle is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. Newcastle’s common stock equivalents are its outstanding stock options. As of September 30, 2013, Newcastle had 2,388,729 antidilutive options. During the nine months ended September 30, 2013 and 2012, based on the treasury stock method, Newcastle had 6,264,696 and 1,249,474 dilutive common stock equivalents, respectively, resulting from its outstanding options. During the three months ended September 30, 2013 and 2012, based on the treasury stock method, Newcastle had 7,654,026 and 2,191,363 dilutive common stock equivalents, respectively, resulting from its outstanding options. Net income available for common stockholders is equal to net income less preferred dividends.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments And Contingencies	'
COMMITMENTS AND CONTINGENCIES	'
	12.   COMMITMENTS AND CONTINGENCIES
	Newcastle is, from time to time, a defendant in legal actions from transactions conducted in the ordinary course of business. Management, after consultation with legal counsel, believes the ultimate liability arising from such actions, individually and in the aggregate, that existed at September 30, 2013, if any, will not materially affect Newcastle’s consolidated results of operations or financial position.
	As discussed in Note 2, in connection with the GateHouse restructuring , we (or our designated affiliates or other designees) have offered to purchase the debt of GateHouse’s other creditors in cash at 40% of par (the “Cash-Out Option”).  Pursuant to the restructuring, reorganized GateHouse will be contributed to New Media, which is currently a wholly owned subsidiary of Newcastle, and GateHouse will use commercially reasonable efforts to raise a new debt facility in an amount of up to $150.0 million. The creditors have the right to elect to receive (i) the Cash-Out Option and/or (ii) common stock of New Media and the net cash proceeds, if any, of the new debt facility (the “Equity Option”). We and certain other creditors have elected the Equity Option, and creditors with approximately $369.9 million in debt positions, including expected accrued interest through the effective date, have elected the Cash-Out Option. The restructuring is subject to approval by the U.S Bankruptcy Court.

GAINLOSSES_ON_SETTLEMENT_OF_IN

GAIN(LOSSES) ON SETTLEMENT OF INVESTMENTS, NET AND OTHER INCOME(LOSS), NET	9 Months Ended
	Sep. 30, 2013
Gainlosses On Settlement Of Investments Net And Other Incomeloss Net	'
GAIN (LOSSES) ON SETTLEMENT OF INVESTMENTS, NET AND OTHER INCOME(LOSS), NET	'
	13.   GAIN (LOSSES) ON SETTLEMENT OF INVESTMENTS, NET AND OTHER INCOME (LOSS), NET
	These items are comprised of the following:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Gain (loss) on settlement of investments, net
	Gain on settlement of real estate securities	$	1,381		$	4,930		$	9,590		$	14,615
	Loss on settlement of real estate securities		—			(8	)		(3,592	)		(4,433	)
	Loss on repayment/disposition of loans held-for-sale		—			—			(354	)		(1,614	)
	Gain on sale of CDO X interests		—			224,317			—			224,317
	Gain on termination of derivative		—			—			813			—
	Loss on disposal of long-lived assets		7			—			(6	)		—
		$	1,388		$	229,239		$	6,451		$	232,885
	Other income (loss), net
	Gain (loss) on non-hedge derivative instruments	$	1,894		$	1,975		$	7,302		$	6,052
	Unrealized (loss) recognized at de-designation of hedges		—			—			—			(7,036	)
	Hedge ineffectiveness		—			—			—			483
	Collateral management fee income, net		304			407			992			1,383
	Equity in earnings of equity method investees		(458	)		—			(458	)		—
	Other income (loss)		223			42			1,718			768
		$	1,963		$	2,424		$	9,554		$	1,650

RECLASSIFICATION_FROM_ACCUMULA

RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME	9 Months Ended
	Sep. 30, 2013
Reclassification From Accumulated Other Comprehensive Income Into Net Income	'
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME	'
	14	RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME
	The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income:
	Accumulated Other Comprehensive		Income Statement	Three Months Ended			Nine Months Ended
	Income Components		Location	30-Sep-13			30-Sep-13
	Net realized gain (loss) on securities
	Impairment		Other-than-temporary impairment on securities, net of portion of other-than-temporary impairment on securities recognized in other comprehensive income	$	—		$	(4,449	)
	Gain on settlement of real estate securities		Gain (loss) on settlement of investments, net		1,381			9,590
	Loss on settlement of real estate securities		Gain (loss) on settlement of investments, net		—			(3,592	)
				$	1,381		$	1,549
	Net realized gain (loss) on derivatives designated as cash flow hedges
	Gain (loss) recognized upon de-designation		Other income (loss)	$	—		$	—
	Hedge ineffectiveness		Other income (loss)		—			—
	Amortization of deferred gain (loss)		Interest expense		1			2
	Gain (loss) reclassified from AOCI into income, related to effective portion		Interest expense		(1,280	)		(4,848	)
	Gain (loss) of termination of derivative instruments		Gain (loss) on settlement of investments, net		—			—
				$	(1,279	)	$	(4,846	)
	Total reclassifications			$	102		$	(3,297	)

SUPPLEMENTAL_NONCASH_INVESTING

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES RELATED TO CDOs	9 Months Ended
	Sep. 30, 2013
Supplemental Non-Cash Investing And Financing Activities Related To Cdos	'
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES RELATED TO CDOs	'
	15.   SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES RELATED TO CDOs
	Newcastle considers all activity in its CDOs’ restricted cash accounts to be non-cash activity for purposes of its consolidated statement of cash flows since transactions conducted with restricted cash have no effect on its cash and cash equivalents. Supplemental non-cash investing and financing activities relating to CDOs are disclosed below:
		Nine Months Ended September 30,
		2013		2012
	Restricted cash generated from sale of securities	$	135,900	$	56,629
	Restricted cash generated from sale of loans	$	9,318	$	—
	Restricted cash generated from paydowns on securities and loans	$	281,889	$	197,686
	Restricted cash used for purchases of real estate securities	$	—	$	143,184
	Restricted cash used for purchases of real estate related and other loans	$	—	$	91,481
	Restricted cash used for repayments of CDO bonds payable	$	337,143	$	102,988
	Restricted cash used for purchases of derivative instruments	$	—	$	408
	Restricted cash used for settlement of derivative instruments	$	1,563	$	—
	Restricted cash used to return margin collateral	$	—	$	6,550
	CDO Deconsolidation
	Real estate securities	$	—	$	1,033,016
	Restricted cash	$	—	$	51,522
	Derivative liabilities	$	—	$	57,343
	CDO bonds payable	$	—	$	1,110,694

RECENT_ACTIVITIES

RECENT ACTIVITIES	9 Months Ended
	Sep. 30, 2013
Recent Activities	'
RECENT ACTIVITIES	'
	These financial statements include a discussion of material events that have occurred subsequent to September 30, 2013 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements.
	On October 30, 2013, Local Media Group repaid Newcastle $2.5 million for the contribution made by Newcastle on the acquisition date for Local Media Group’s working capital.
	On October 31, 2013, Newcastle agreed to re-securitize approximately $110 million face amount of the senior class of CDO VI’s outstanding debt. Prior to this transaction, approximately $69 million face amount was owned directly by Newcastle, and the remainder was owned by CDO VIII and CDO IX. Following this transaction, this class was securitized into a $99 million senior tranche and an $11 million junior tranche. On November 1, 2013, Newcastle issued the senior tranche to a third party generating approximately $88 million of proceeds and retained the junior tranche on its balance sheet. Of the $88 million of proceeds, $47 million represented unrestricted proceeds to Newcastle and $41 million was used to pay off CDO VIII and CDO IX debt at par.

PRO_FORMA_CONDENSED_CONSOLIDAT

PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION	9 Months Ended
	Sep. 30, 2013
Pro Forma Condensed Consolidated Financial Information	'
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION	'
	17	PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
	The following unaudited pro forma condensed consolidated financial information was derived from the application of pro forma adjustments to the consolidated financial statements of Newcastle. This unaudited pro forma condensed consolidated statement of operations should be read in conjunction with the other information contained in these financial statements and related notes and with Newcastle’s historical consolidated financial statements.
	The unaudited pro forma information set forth below reflects the historical information of Newcastle, as adjusted to give effect to the New Residential spin-off transaction.
	The unaudited pro forma condensed consolidated statement of operations gives effect to the spin-off of New Residential as if the spin-off had occurred on January 1, 2013 based on New Residential’s historical consolidated statement of operations.
	In the opinion of management, all adjustments necessary to reflect the effects of the transaction described above have been included and are based upon available information and assumptions that Newcastle believes are reasonable.
	Further, the historical financial information presented herein has been adjusted to give pro forma effect to events that Newcastle believes are factually supportable and which are expected to have a continuing impact on Newcastle’s results. However, such adjustments are estimates and may not prove to be accurate. Information regarding these adjustments is subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
	These unaudited pro forma condensed consolidated financial statements are provided for information purposes only. The unaudited pro forma condensed consolidated statement of operations does not purport to represent what Newcastle’s results of operations would have been had such transactions been consummated on the date indicated, nor does it represent the results of operations of either Newcastle or New Residential for any future date or period.
	UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	Nine months ended September 30, 2013
			Newcastle			Pro Forma Adjustments			Newcastle
			Consolidated			New			Consolidated
			Historical (A)			Residential (B)			Pro Forma
	Interest income		$	171,642		$	(12,019	)	$	159,623
	Interest expense			65,263			(2,152	)		63,111
	Net interest income			106,379			(9,867	)		96,512
	Impairment/(Reversal)
	Valuation allowance (reversal) on loans			(11,473	)		—			(11,473	)
	Other-than-temporary impairment on securities			4,405			(3,756	)		649
	Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)			44			—			44
				(7,024	)		(3,756	)		(10,780	)
	Net interest income after impairment/reversal			113,403			(6,111	)		107,292
	Other Revenues
	Rental income			44,344			—			44,344
	Care and ancillary income			8,081			—			8,081
	Total other revenues			52,425			—			52,425
	Other Income (Loss)
	Gain (loss) on settlement of investments, net			6,451			(58	)		6,393
	Gain on extinguishment of debt			4,565			—			4,565
	Equity in earnings of Local Media Group			1,045			—			1,045
	Other income, net			9,554			—			9,554
				21,615			(58	)		21,557
	Expenses
	Loan and security servicing expense			2,963			(108	)		2,855
	Property operating expenses			32,576			—			32,576
	General and administrative expense			23,507			(38	)		23,469
	Management fee to affiliate			24,879			(4,134	)		20,745
	Depreciation and amortization			15,881			—			15,881
				99,806			(4,280	)		95,526
	Income (loss) from continuing operations			87,637			(1,889	)		85,748
	Preferred dividends			(4,185	)		—			(4,185	)
	Income (loss) from continuing operations after preferred dividends		$	83,452		$	(1,889	)	$	81,563
	Income (loss) from continuing operations per share of common stock, after preferred dividends
	Basic		$	0.32					$	0.31
	Diluted		$	0.31					$	0.3
	Weighted Average Number of Shares of Common Stock Outstanding
	Basic			262,792,986						262,792,986
	Diluted			269,057,682						269,057,682
		(A)	Represents Newcastle’s historical consolidated statement of operations for the nine months ended September 30, 2013, excluding discontinued operations.
		(B)	Represents the portion of New Residential’s historical consolidated statement of operations for the period from January 1, 2013 to May 15, 2013 that is not included in Newcastle’s income (loss) from discontinued operations. After the May 15, 2013 spin-off of New Residential from Newcastle, no results of New Residential were reported in Newcastle’s consolidated statement of operations.

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2013
Acquisitions Tables	'
Schedule of Acquisitions of Senior Housing Assets	'
	A summary of the initial recording of each of the above acquisitions is as follows:
			At Acquisition
			Woodside			Florida			Glen Riddle			Royal Palm			Schenley Gardens			Total
	Allocation of Purchase Price (A)
	Investments in Real Estate		$	13,300		$	178,009		$	19,050		$	16,938		$	15,308		$	242,605
	Resident Lease Intangibles			1,900			21,589			2,100			1,800			1,150			28,539
	Non-compete Intangibles			—			—			1,000			—			—			1,000
	Other Intangibles			3,700			—			—			—			—			3,700
	Assumed mortgage notes payable			—			(41,443	)		—			—			—			(41,443	)
	Earn-Out Liability (B)			—			(1,500	)		—			—			—			(1,500	)
	Other Assets, net of other Liabilities			51			1,231			215			(98	)		(108	)		1,291
	Total purchase price		$	18,951		$	157,886		$	22,365		$	18,640		$	16,350		$	234,192
	Mortgage Notes Payable (C)			(14,100	)		(102,953	)		(16,875	)		(14,250	)		(8,250	)		(156,428	)
	Net consideration paid		$	4,851		$	54,933		$	5,490		$	4,390		$	8,100		$	77,764
	Total acquisition related costs (D)		$	475		$	3,319		$	507		$	224		$	629		$	5,154
	Acquisition Date			Jul-13			Aug-13			Aug-13			Sep-13			Sep-13
	Location			New York			Florida/North Carolina			Pennsylvania			Florida			Pennsylvania
	Number of Communities			1			15			1			1			1
		(A)	Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.
		(B)	The amount represents the fair value of a contingent liability relating to Newcastle’s agreement to pay the seller an earn-out payment if the aggregate EBITDA for the Florida portfolio for any calendar years in which the third, fourth, fifth and/or sixth anniversary of the acquisition date occurs is equal to or in excess of an earn-out threshold, as defined within the agreement.
		(C)	See Note 9.
		(D)	Acquisition related costs are expensed as incurred and included within general and administrative expense on the statement of income.
Schedule of summarized financial information for Local Media Group	'
	The following tables present summarized financial information for Local Media Group:
			30-Sep-13
	Total Assets (A)		$	107,011
	Total Liabilities (A)			52,053
	Total Equity		$	54,958
	Newcastle's investment (B)		$	57,384
				For the period
				September 3 - 30, 2013
	Total Revenue		$	12,043
	Depreciation and Amortization			945
	Other Expenses			10,629
	Total Expenses			11,574
	Provision for Taxes			(576	)
	Net Income		$	1,045
		(A)	Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.
		(B)	This amount represents Newcastle’s maximum exposure to loss from this entity and includes capitalized acquisition expenses of $2.4 million.

SPINOFF_OF_NEW_RESIDENTIAL_Tab

SPIN-OFF OF NEW RESIDENTIAL (Tables)	12 Months Ended
	Dec. 31, 2012
Spin-Off Of New Residential Tables	'
Schedule of carrying value of assets and liabilities immediately preceding the spin-off	'
	The following table presents the carrying value of the assets and liabilities of New Residential, immediately preceding the May 15, 2013 spin-off.
	Assets
	Real estate securities, available-for-sale	$	1,647,289
	Residential mortgage loans, held-for-investment, net		35,865
	Investments in excess mortgage servicing rights at fair value		229,936
	Investments in equity method investees		392,469
	Cash and cash equivalents		181,582
	Receivables and other assets		37,844
	Total Assets	$	2,524,985
	Liabilities
	Repurchase agreements	$	1,320,360
	Accrued expenses and other liabilities		642
	Total Liabilities	$	1,321,002
	Net Assets	$	1,203,983
Schedule of assets and liabilities of discontinued operations and results of operations from discontinued operations	'
	Assets and liabilities of discontinued operations as of December 31, 2012 were as follows:
	Assets
	Investments in excess mortgage servicing rights at fair value	$	245,036
	Receivables and other assets		33
	Total assets of discontinued operations	$	245,069
	Liabilities
	Purchase price payable on investments in excess mortgage servicing rights	$	59
	Accrued expenses and other liabilities		421
	Total liabilities of discontinued operations	$	480
	Results from discontinued operations were as follows:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Interest Income	$	—		$	9,903		$	15,095		$	16,422
	Net interest income		—			9,903			15,095			16,422
	Other loss		(2,386	)		(2	)		(2,388	)		(1	)
	Change in fair value of investments in excess mortgage servicing rights		—			1,774			3,894			6,513
	Change in fair value of investments in equity method investees		—			—			885			—
	Earnings from investments in equity method investees		—			—			18,286			—
	Total other income		(2,386	)		1,772			20,677			6,512
	Property operating costs		—			6			12			19
	General and administrative expenses		—			695			2,417			2,208
	Total expenses		—			701			2,429			2,227
	Income from discontinued operations	$	(2,386	)	$	10,974		$	33,343		$	20,707

SEGMENT_REPORTING_AND_VARIABLE1

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting And Variable Interest Entities Tables	'
Schedule of Segment Reporting	'
	Summary financial data on Newcastle's segments is given below, together with reconciliation to the same data for Newcastle as a whole:
			Non-Recourse Senior Housing			Non-Recourse CDOs (A)			Unlevered CDOs (B)		Non-Recourse Other (A) (C)			Recourse (D)			Unlevered Other (E)			Equity Method Investment			Corporate			Excess			Inter-segment Elimination (F)			Total
																				in Local						MSRs and
																				Media Group						Consumer Loans
	Nine Months Ended September 30, 2013
	Interest income		$	2		$	95,254		$	383	$	49,027		$	14,771		$	15,519		$	—		$	141		$	—		$	(3,455	)	$	171,642
	Interest expense			5,358			18,876			—		37,710			3,910			—			—			2,864			—			(3,455	)		65,263
	Net interest income (expense)			(5,356	)		76,378			383		11,317			10,861			15,519			—			(2,723	)		—			—			106,379
	Impairment (reversal)			—			(389	)		—		(38	)		3,738			(10,335	)		—			—			—			—			(7,024	)
	Other revenues			50,880			—			—		1,545			—			—			—			—			—			—			52,425
	Other income (loss)			46			16,496			205		—			25			3,798			1,045			—			—			—			21,615
	Property operating expenses			31,827			—			—		749			—			—			—			—			—			—			32,576
	Depreciation and amortization			15,715			—			—		164			—			—			—			2			—			—			15,881
	Other operating expenses			12,619			563			—		2,078			59			290			—			35,740			—			—			51,349
	Income (loss) from continuing operations			(14,591	)		92,700			588		9,909			7,089			29,362			1,045			(38,465	)		—			—			87,637
	Income (loss) from discontinued operations			—			—			—		—			—			(35	)		—			—			33,378			—			33,343
	Net income (loss)			(14,591	)		92,700			588		9,909			7,089			29,327			1,045			(38,465	)		33,378			—			120,980
	Preferred dividends			—			—			—		—			—			—			—			(4,185	)		—			—			(4,185	)
	Income (loss) applicable to common stockholders		$	(14,591	)	$	92,700		$	588	$	9,909		$	7,089		$	29,327		$	1,045		$	(42,650	)	$	33,378		$	—		$	116,795
	Three Months Ended September 30, 2013
	Interest income		$	2		$	27,027		$	57	$	16,254		$	1,206		$	4,425		$	—		$	39		$	—		$	(1,524	)	$	47,486
	Interest expense			2,880			4,926			—		12,853			462			—			—			958			—			(1,524	)		20,555
	Net interest income (expense)			(2,878	)		22,101			57		3,401			744			4,425			—			(919	)		—			—			26,931
	Impairment (reversal)			—			(12,375	)		—		535			—			(1,158	)		—			—			—			—			(12,998	)
	Other revenues			24,370			—			—		542			—			—			—			—			—			—			24,912
	Other income (loss)			(74	)		4,821			60		—			—			1,903			1,045			—			—			—			7,755
	Property operating expenses			15,542			—			—		262			—			—			—			—			—			—			15,804
	Depreciation and amortization			7,676			—			—		54			—			—			—			2			—			—			7,732
	Other operating expenses			7,545			179			—		668			12			52			—			8,974			—			—			17,430
	Income (loss) from continuing operations			(9,345	)		39,118			117		2,424			732			7,434			1,045			(9,895	)		—			—			31,630
	Income (loss) from discontinued operations			—			—			—		—			—			(6	)		—			—			(2,380	)		—			(2,386	)
	Net income (loss)			(9,345	)		39,118			117		2,424			732			7,428			1,045			(9,895	)		(2,380	)		—			29,244
	Preferred dividends			—			—			—		—			—			—			—			(1,395	)		—			—		$	(1,395	)
	Income (loss) applicable to common stockholders		$	(9,345	)	$	39,118		$	117	$	2,424		$	732		$	7,428		$	1,045		$	(11,290	)	$	(2,380	)	$	—		$	27,849
	30-Sep-13
	Investments		$	443,780		$	1,044,704		$	5,058	$	688,274		$	387,608		$	255,194		$	57,384		$	—		$	—		$	(59,361	)	$	2,822,641
	Cash and restricted cash			35,244			1,827			—		—			—			—			—			56,890			—			—			93,961
	Derivative assets			—			—			—		—			43,172			—			—			—			—			—			43,172
	Other assets			15,226			3,420			5		77			1,306			1,893			—			5,117			—			(41	)		27,003
	Total assets			494,250			1,049,951			5,063		688,351			432,086			257,087			57,384			62,007			—			(59,402	)		2,986,777
	Debt			(335,238	)		(718,473	)		—		(619,376	)		(376,886	)		—			—			(51,239	)		—			59,361			(2,041,851	)
	Derivative liabilities			—			(17,115	)		—		—			—			—			—			—			—			—			(17,115	)
	Other liabilities			(15,582	)		(5,700	)		—		(1,413	)		(64	)		(768	)		(185	)		(36,785	)		(2,380	)		41			(62,836	)
	Total liabilities			(350,820	)		(741,288	)		—		(620,789	)		(376,950	)		(768	)		(185	)		(88,024	)		(2,380	)		59,402			(2,121,802	)
	Preferred stock			—			—			—		—			—			—			—			(61,583	)		—			—			(61,583	)
	GAAP book value		$	143,430		$	308,663		$	5,063	$	67,562		$	55,136		$	256,319		$	57,199		$	(87,600	)	$	(2,380	)	$	—		$	803,392
	Additions to investments in real estate		$	277,614		$	—		$	—	$	129		$	—		$	—		$	—		$	—		$	—		$	—		$	277,743
			Non-Recourse			Non-Recourse CDOs (A)			Unlevered CDOs (B)		Non-Recourse Other (A)			Recourse			Unlevered			Corporate			Excess MSRs			Inter-segment Elimination (F)			Total
			Senior Housing														Other						and Consumer
																							Loans
	Nine Months Ended September 30, 2012
	Interest income		$	—		$	161,490		$	339	$	54,753		$	4,981		$	7,234		$	135		$	—		$	(5,167	)	$	223,765
	Interest expense			692			49,334			—		38,935			1,387			—			2,857			—			(5,167	)		88,038
	Net interest income (expense)			(692	)		112,156			339		15,818			3,594			7,234			(2,722	)		—			—			135,727
	Impairment (reversal)			—			3,173			—		3,202			—			58			—			—			—			6,433
	Other revenues			7,548			—			—		1,547			—			—			—			—			—			9,095
	Other income (loss)			(21	)		256,358			259		—			—			1,066			—			—			—			257,662
	Property operating expenses			4,742			—			—		758			—			—			—			—			—			5,500
	Depreciation and amortization			2,370			—			—		19			—			—			—			—			—			2,389
	Other operating expenses			4,848			713			1		2,523			—			35			23,618			—			—			31,738
	Income (loss) from continuing operations			(5,125	)		364,628			597		10,863			3,594			8,207			(26,340	)		—			—			356,424
	Income (loss) from discontinued operations			—			—			—		—			—			(48	)		—			20,755			—			20,707
	Net income (loss)			(5,125	)		364,628			597		10,863			3,594			8,159			(26,340	)		20,755			—			377,131
Preferred dividends			—			—			—		—			—			—			(4,185	)		—			—			(4,185	)
Income (loss) applicable to common stockholders		$	(5,125	)	$	364,628		$	597	$	10,863		$	3,594		$	8,159		$	(30,525	)	$	20,755			—		$	372,946
Three Months Ended September 30, 2012
Interest income		$	—			51,050		$	109		18,290		$	3,213		$	2,383		$	32		$	—			(2,130	)		72,947
Interest expense			692			14,694			—		13,375			826			—			954			—			(2,130	)		28,411
Net interest income (expense)			(692	)		36,356			109		4,915			2,387			2,383			(922	)		—			—			44,536
Impairment (reversal)			—			3,962			—		499			—			553			—			—			—			5,014
Other revenues			7,548			—			—		523			—						—			—			—			8,071
Other income (loss)			(21	)		231,825			83		—			—			2,121			—			—			—			234,008
Property operating expenses			4,742			—			—		301			—						—			—			—			5,043
Depreciation and amortization			2,370			—			—		15			—						—			—			—			2,385
Other operating expenses			1,650			230			—		823			—			10			9,213			—			—			11,926
Income (loss) from continuing operations			(1,927	)		263,989			192		3,800			2,387			3,941			(10,135	)		—			—			262,247
Income (loss) from discontinued operations			—			—			—		—			—			(17	)		—			10,991			—			10,974
Net income (loss)			(1,927	)		263,989			192		3,800			2,387			3,924			(10,135	)		10,991			—			273,221
Preferred dividends			—			—			—		—			—			—			(1,395	)		—			—			(1,395	)
Income (loss) applicable to common stockholders		$	(1,927	)	$	263,989		$	192	$	3,800		$	2,387		$	3,924		$	(11,530	)	$	10,991		$	—		$	271,826
See notes on next page.
	(A)	Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle’s exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. Therefore, impairment recorded in excess of Newcastle’s investment, which results in negative GAAP book value for a given non-recourse financing structure, cannot economically be incurred and will eventually be reversed through amortization, sales at gains, or as gains at the deconsolidation or termination of such non-recourse financing structure.
	(B)	Represents unlevered investments in CDO securities issued by Newcastle. This CDO has been de-consolidated as Newcastle does not have the power to direct the relevant activities of the CDO.
	(C)	The following table summarizes the investments and debt in the other non-recourse segment:
		30-Sep-13
		Investments						Debt
		Outstanding			Carrying			Outstanding		Carrying
		Face Amount			Value			Face Amount*		Value*
Manufactured housing loan portfolio I		$	106,304		$	91,488		$	78,179	$	70,185
Manufactured housing loan portfolio II			134,641			132,728			99,979		99,568
Subprime mortgage loans subject to call option			406,217			406,217			406,217		406,217
Real estate securities			58,525			51,209			41,105		37,406
Other commercial real estate			N/A			6,632			6,000		6,000
		$	705,687		$	688,274		$	631,480	$	619,376
*	An aggregate face amount of $67.6 million (carrying value of $59.4 million) of debt represents financing provided by the CDO segment (and included as investments in the CDO segment), which is eliminated upon consolidation.
	(D)	The $376.9 million of recourse debt is composed of (i) a $361.8 million repurchase agreement secured by $387.6 million carrying value of FNMA/FHLMC securities, and (ii) a $15.1 million repurchase agreement secured by $25.0 million face amount of senior notes issued by Newcastle CDO IX, which was repurchased by Newcastle and eliminated in consolidation.
	(E)	The following table summarizes the investments in the unlevered other segment:
		30-Sep-13
		Outstanding			Carrying			Number of
		Face Amount			Value			Investments
Real estate securities		$	130,775		$	3,529			20
Real estate related and other loans			544,714			210,669			2
Residential mortgage loans			46,577			34,917			288
Other investments			N/A			6,079			1
		$	722,066		$	255,194			311
	(F)	Represents the elimination of investments and financings and their related income and expenses between the CDO segment and other non-recourse segment as the corresponding inter-segment investments and financings are presented on a gross basis within each of these segments.
Schedule of Segment Other Non-Recourse Investments and Debt	'
	The following table summarizes the investments and debt in the other non-recourse segment:
			30-Sep-13
			Investments						Debt
			Outstanding			Carrying			Outstanding		Carrying
			Face Amount			Value			Face Amount*		Value*
	Manufactured housing loan portfolio I		$	106,304		$	91,488		$	78,179	$	70,185
	Manufactured housing loan portfolio II			134,641			132,728			99,979		99,568
	Subprime mortgage loans subject to call option			406,217			406,217			406,217		406,217
	Real estate securities			58,525			51,209			41,105		37,406
	Other commercial real estate			N/A			6,632			6,000		6,000
			$	705,687		$	688,274		$	631,480	$	619,376
	*	An aggregate face amount of $67.6 million (carrying value of $59.4 million) of debt represents financing provided by the CDO segment (and included as investments in the CDO segment), which is eliminated upon consolidation.
Schedule of Segment Reporting Investments in Unlevered Other Segment	'
	The following table summarizes the investments in the unlevered other segment:
			30-Sep-13
			Outstanding			Carrying			Number of
			Face Amount			Value			Investments
	Real estate securities		$	130,775		$	3,529			20
	Real estate related and other loans			544,714			210,669			2
	Residential mortgage loans			46,577			34,917			288
	Other investments			N/A			6,079			1
			$	722,066		$	255,194			311
Schedule of Holdings in Variable Interest Entities	'
	Newcastle had variable interests in the following unconsolidated VIE at September 30, 2013, in addition to the subprime securitizations which are described in Note 6 and the Local Media Group investment which is described in Note 2:
	Entity		Gross Assets (A)			Debt (A) (B)			Carrying Value of Newcastle's Investment (C)
	Newcastle CDO V		$	208,193		$	233,972		$	5,058
	CDO VIII Repack (D)		$	207,624		$	207,624		$	103,140
		(A)	Face amount.
		(B)	Newcastle CDO V includes $42.9 million face amount of debt owned by Newcastle with a carrying value of $5.1 million at September 30, 2013. CDO VIII Repack includes $116.8 million face amount of debt owned by Newcastle with a carrying value of $103.1 million at September 30, 2013.
		(C)	This amount represents Newcastle’s maximum exposure to loss from this entity.
		(D)	See Notes 9 and 10 for information about the securitization that is collateralized by certain Newcastle CDO VIII Class I notes.

REAL_ESTATE_SECURITIES_Tables

REAL ESTATE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2013
Real Estate Securities Tables	'
Schedule of Real Estate Securities Holdings	'
	The following is a summary of Newcastle’s real estate securities at September 30, 2013, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired.
						Amortized Cost Basis									Gross Unrealized									Weighted Average
	Asset Type		Outstanding Face Amount			Before Impairment			Other-Than- Temporary Impairment			After Impairment			Gains		Losses			Carrying		Number of Securities		Rating		Coupon				Yield				Maturity				Principal Subordination (D)
																				Value (A)				(B)										(Years) (C)
	CMBS-Conduit		$	247,582		$	228,850		$	(82,947	)	$	145,903		$	52,338	$	(201	)	$	198,040		35	B+			5.51	%			14.17	%			3.2				9.5	%
	CMBS- Single Borrower			91,877			90,996			(12,364	)		78,632			4,946		—			83,578		15	BB			5.67	%			4.75	%			2.7				6.3	%
	CMBS-Large Loan			4,458			4,411			—			4,411			47		—			4,458		1	BBB-			6.06	%			11.92	%			0.4				6.2	%
	REIT Debt			29,200			28,607			—			28,607			2,608		—			31,215		5	BB+			5.89	%			6.86	%			1.8				N/A
	Non-Agency RMBS (E)			101,315			103,810			(62,860	)		40,950			16,576		(20	)		57,506		34	CCC			1.1	%			13.14	%			5				28	%
	ABS-Franchise			8,464			7,647			(7,647	)		—			—		—			—		1	C			6.69	%			0	%			—				0	%
	FNMA/FHLMC (H)			362,484			386,640			—			386,640			2,151		(1,183	)		387,608		46	AAA			2.82	%			1.27	%			3.7				N/A
	CDO (F)			193,435			76,091			(14,861	)		61,230			1,977		(113	)		63,094		12	CCC+			2.99	%			7.7	%			1.2				19.8	%
	Total / Average (G)		$	1,038,815		$	927,052		$	(180,679	)	$	746,373		$	80,643	$	(1,517	)	$	825,499		149	BBB-			3.71	%			5.64	%			3.1
	(A)		See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
	(B)		Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Newcastle used an implied AAA rating for the FNMA/FHLMC securities. Ratings provided were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current.
	(C)		The weighted average maturity is based on the timing of expected principal reduction on the assets.
	(D)		Percentage of the outstanding face amount of securities and residual interests that is subordinate to Newcastle’s investments.
	(E)		Includes the retained bond with a face amount of $4.0 million and a carrying value of $1.9 million from Securitization Trust 2006 (Note 6).
	(F)		Includes two CDO bonds issued by a third party with a carrying value of $58.0 million, four CDO bonds issued by CDO V (which has been de-consolidated) and held as investments by Newcastle with a carrying value of $5.1 million and six CDO bonds issued by C-BASS Investment Management LLC (“C-BASS”) with zero carrying value.
	(G)		The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
	(H)		Amortized cost basis and carrying value include principal receivable of $4.2 million.
Schedule of Real Estate Securities Holdings in an Unrealized Loss Position	'
	The following table summarizes Newcastle’s securities in an unrealized loss position as of September 30, 2013.
						Amortized Cost Basis									Gross Unrealized									Weighted Average
	Securities in		Outstanding						Other-than-													Number
	an Unrealized		Face			Before			Temporary			After								Carrying		of														Maturity
	Loss Position		Amount			Impairment			Impairment			Impairment			Gains		Losses			Value		Securities		Rating				Coupon				Yield				(Years)
	Less Than
	Twelve Months		$	223,008		$	226,596		$	(4,437	)	$	222,159		$	—	$	(1,107	)	$	221,052		23		AA-				2.17	%			3.05	%			3.1
	Twelve or More Months			39,196			40,725			—			40,725			—		(410	)		40,315		4		A+				3.78	%			2.56	%			2.8
	Total		$	262,204		$	267,321		$	(4,437	)	$	262,884		$	—	$	(1,517	)	$	261,367		27		AA-				2.41	%			2.98	%			3
	Newcastle performed an assessment of all of its debt securities that are in an unrealized loss position (unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following:
			30-Sep-13
						Amortized
						Cost Basis			Unrealized Losses
			Fair Value			After Impairment			Credit (B)				Non-Credit (C)
	Securities Newcastle intends to sell		$	—		$	—		$	—			$              N/A
	Securities Newcastle is more likely than not to be required to sell (A)			—			—			—			N/A
	Securities Newcastle has no intent to sell and is not more likely than not to be required to sell:
	Credit impaired securities			2,139			2,160			(4,359	)		(21	)
	Non credit impaired securities			259,228			260,724			—			(1,496	)
	Total debt securities in an unrealized loss position		$	261,367		$	262,884		$	(4,359	)	$	(1,517	)
		(A)	Newcastle may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Newcastle must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales.
		(B)	This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, Newcastle’s management estimates the expected cash flow for each of the securities.  This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends.  Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities.  Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate.
		(C)	This amount represents unrealized losses on securities that are due to non-credit factors and is required to be recorded through other comprehensive income.
Schedule of Credit Losses on Debt Securities	'
	The following table summarizes the activity related to credit losses on debt securities for the nine months ended September 30, 2013:
	Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income		$	(4,770	)
	Additions for credit losses on securities for which an OTTI was not previously recognized			(1	)
	Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income			(89	)
	Additions for credit losses on securities for which an OTTI was previously recognized without any portion of OTTI recognized in other comprehensive income			(4,317	)
	Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date			—
	Reduction for securities sold during the period			4,739
	Reduction for securities transferred to New Residential			—
	Reduction for securities de-consolidated during the period			—
	Reduction for increases in cash flows expected to be collected that are recognized over the remaining life of the security			79
	Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income		$	(4,359	)
Schedule of Geographic Distribution of Collateral Securing Newcastle's CMBS and ABS	'
	The table below summarizes the geographic distribution of the collateral securing Newcastle’s CMBS and asset backed securities (“ABS”) at September 30, 2013:
			CMBS						ABS
	Geographic Location			Outstanding Face Amount			Percentage			Outstanding Face Amount			Percentage
	Western U.S.		$	73,846			21.5	%	$	33,394			30.4	%
	Northeastern U.S.			64,203			18.6	%		22,869			20.8	%
	Southeastern U.S.			67,648			19.7	%		21,845			19.9	%
	Midwestern U.S.			54,720			15.9	%		14,417			13.1	%
	Southwestern U.S.			65,889			19.2	%		11,036			10.1	%
	Other			12,719			3.7	%		6,218			5.7	%
	Foreign			4,892			1.4	%		—			0	%
			$	343,917			100	%	$	109,779			100	%

REAL_ESTATE_RELATED_LOANS_RESI1

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Tables)	9 Months Ended
	Sep. 30, 2013
Real Estate Related Loans Residential Mortgage Loans And Subprime Mortgage Loans Tables	'
Schedule of Real Estate Related Loans, Residential Mortgage Loans and Subprime Mortgage Loans	'
	The following is a summary of real estate related and other loans, residential mortgage loans and subprime mortgage loans at September 30, 2013. The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment.
	Loan Type		Outstanding			Carrying			Loan			Weighted			Weighted Average Coupon			Weighted Average Maturity		Floating Rate Loans as a % of Face Amount			Delinquent Face Amount (C)
			Face Amount			Value (A)			Count			Average						(Years) (B)
												Yield
	Mezzanine Loans		$	338,178		$	268,635			12			10.65	%		8.78	%		1.8		88.4	%	$	12,000
	Corporate Bank Loans			875,072			402,139			7			13.73	%		5.6	%		1.2		74.4	%		—
	B-Notes			110,461			94,703			4			10.5	%		6.3	%		0.7		79.3	%		—
	Whole Loans			29,820			29,820			2			4.8	%		3.75	%		0.2		97.6	%		—
	Total Real Estate Related and other Loans Held-for-Sale, Net		$	1,353,531		$	795,297			25			11.97	%		6.41	%		1.3		78.8	%	$	12,000
	Non-Securitized Manufactured Housing Loan Portfolio I		$	561		$	145			15			81.45	%		7.78	%		0.9		0	%	$	56
	Non-Securitized Manufactured Housing Loan Portfolio II			2,677			2,091			100			15.43	%		10.03	%		5.2		9.6	%		181
	Total Residential Mortgage Loans Held-for-Sale, Net (D)		$	3,238		$	2,236			115			19.71	%		9.64	%		4.5		7.9	%	$	237
	Securitized Manufactured Housing Loan Portfolio I (D)(E)		$	106,304		$	91,488			2,903			9.45	%		8.62	%		6.1		0.6	%	$	1,267
	Securitized Manufactured Housing Loan Portfolio II (D)(E)			134,641			132,728			4,821			7.72	%		9.64	%		4.9		16.4	%		2,036
	Residential Loans (D)(E)			47,114			36,247			175			7.75	%		2.33	%		5.4		100	%		6,683
	Total Residential Mortgage Loans Held- for-Investment, Net		$	288,059		$	260,463			7,899			8.33	%		8.07	%		5.5		24.2	%	$	9,986
	Subprime Mortgage Loans Subject to Call Option		$	406,217		$	406,217
		(A)	Carrying value includes interest receivable of $0.1 million for the residential housing loans and principal and interest receivable of $5.0 million for the manufactured housing loans.
		(B)	The weighted average maturity is based on the timing of expected principal reduction on the assets.
		(C)	Includes loans that are 60 or more days past due (including loans that are in foreclosure, or borrower’s in bankruptcy) or considered real estate owned (“REO”). As of September 30, 2013, $142.3 million face amount of real estate related and other loans was on non-accrual status.
		(D)	Loans acquired at a discount for credit quality.
		(E)	The following is an aging analysis of past due residential loans held-for-investment as of September 30, 2013:
			30-59 Days Past Due			60-89 Days Past Due			Over 90 Days Past Due			REO			Total Past Due			Current		Total Outstanding Face Amount
	Securitized Manufactured Housing Loan Portfolio I		$	675		$	155		$	473		$	639		$	1,942		$	104,362	$	106,304
	Securitized Manufactured Housing Loan Portfolio II		$	929		$	221		$	1,199		$	616		$	2,965		$	131,676	$	134,641
	Residential Loans		$	86		$	—		$	6,124		$	559		$	6,769		$	40,345	$	47,114
	Newcastle’s management monitors the credit qualities of the Manufactured Housing Loan Portfolios I and II and residential loans primarily by using aging analyses, current trends in delinquencies and actual loss incurrence rates.
Aging Schedule of Past Due Residential Loans Held For Investment	'
	The following is an aging analysis of past due residential loans held-for-investment as of September 30, 2013:
			30-59 Days Past Due			60-89 Days Past Due			Over 90 Days Past Due			REO			Total Past Due			Current		Total Outstanding Face Amount
	Securitized Manufactured Housing Loan Portfolio I		$	675		$	155		$	473		$	639		$	1,942		$	104,362	$	106,304
	Securitized Manufactured Housing Loan Portfolio II		$	929		$	221		$	1,199		$	616		$	2,965		$	131,676	$	134,641
	Residential Loans		$	86		$	—		$	6,124		$	559		$	6,769		$	40,345	$	47,114
Schedule of Real Estate Related Loans By Maturity	'
	The following is a summary of real estate related and other loans by maturities at September 30, 2013:
			Outstanding						Number of
	Year of Maturity (1)		Face Amount			Carrying Value			Loans
	Delinquent (2)		$	12,000		$	—			1
	Period from October 1, 2013 to December 31, 2013			88,648			41,146			2
	2014			834,131			384,189			9
	2015			58,199			56,340			5
	2016			72,533			70,911			2
	2017			94,981			80,790			4
	2018			—			—			—
	Thereafter			193,039			161,921			2
	Total		$	1,353,531		$	795,297			25
		-1	Based on the final extended maturity date of each loan investment as of September 30, 2013.
		-2	Includes loans that are non-performing, in foreclosure, or under bankruptcy.
Schedule of Activity in Carrying Value of Real Estate Loans and Residential Mortgage Loans	'
	Activities relating to the carrying value of Newcastle’s real estate related and other loans and residential mortgage loans are as follows:
			Held-for-Sale						Held-for-Investment
				Real Estate Related and Other Loans			Residential Mortgage Loans			Residential Mortgage Loans			Reverse Mortgage Loans
	Balance at December 31, 2012		$	843,132		$	2,471		$	292,461		$	—
	Purchases / additional fundings			171,987			—			—			35,138
	Interest accrued to principal balance			19,495			—			—			—
	Principal paydowns			(247,930	)		(263	)		(36,294	)		—
	Sales			(9,318	)		—			—			—
	Spin-off of New Residential			—			—			—			(35,865	)
	Valuation (allowance) reversal on loans			10,529			42			902			—
	Loss on repayment of loans held-for-sale			—			—			—			—
	Accretion of loan discount and other amortization			6,689			—			3,156			727
	Other			713			(14	)		238			—
	Balance at September 30, 2013		$	795,297			2,236		$	260,463		$	—
Rollforward for loss allowance related to real estate loans	'
	The following is a rollforward of the related loss allowance.
			Held-For-Sale						Held-For-Investment
				Real Estate Related and Other Loans			Residential Mortgage Loans			Residential Mortgage
										Loans (A)
	Balance at December 31, 2012		$	(182,062	)	$	(1,072	)	$	(22,478	)
	Charge-offs			60			144			3,716
	Valuation (allowance) reversal on loans			10,529			42			902
	Balance at September 30, 2013		$	(171,473	)	$	(886	)	$	(17,860	)
		(A)	The allowance for credit losses was determined based on the guidance for loans acquired with deteriorated credit quality.
Schedule of geographic distribution of real estate related and other loans and residential mortgage loans	'
	The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at September 30, 2013:
				Real Estate Related					Residential Mortgage Loans
				and Other Loans
	Geographic Location		Outstanding Face Amount			Percentage			Outstanding Face Amount			Percentage
	Western U.S.		$	131,422			26.9	%	$	176,513			60.6	%
	Northeastern U.S.			68,404			14	%		8,955			3.1	%
	Southeastern U.S.			85,011			17.4	%		63,000			21.6	%
	Midwestern U.S.			31,633			6.5	%		10,486			3.6	%
	Southwestern U.S.			67,768			13.9	%		32,343			11.1	%
	Foreign			104,860			21.3	%		—			0	%
			$	489,098			100	%	$	291,297			100	%
	Other			864,433		(A)
			$	1,353,531
		(A)	Includes corporate bank loans which are not directly secured by real estate assets.
Schedule of Holdings in Subprime Mortgage Loans	'
	The following table presents information on the retained interests in Newcastle’s securitizations of subprime mortgage loans at September 30, 2013:
			Subprime Portfolio
			I			II			Total
	Total securitized loans (unpaid principal balance) (A)		$	387,199		$	521,009		$	908,208
	Loans subject to call option (carrying value)		$	299,176		$	107,041		$	406,217
	Retained interests (fair value) (B)		$	1,848		$	—		$	1,848
		(A)	Average loan seasoning of 98 months and 80 months for Subprime Portfolios I and II, respectively, at September 30, 2013.
		(B)	The retained interests include retained bonds of the securitizations. The fair value of which is estimated based on pricing models. Newcastle’s residual interests were written off in 2010. The weighted average yield of the retained bonds was 23.04% as of September 30, 2013.
Schedule of details regarding subprime mortgage loans	'
	The following table summarizes certain characteristics of the underlying subprime mortgage loans, and related financing, in the securitizations as of September 30, 2013:
			Subprime Portfolio
			I			II
	Loan unpaid principal balance (UPB)		$	387,199		$	521,009
	Weighted average coupon rate of loans			5.89	%		5.2	%
	Delinquencies of 60 or more days (UPB) (A)		$	113,349		$	205,941
	Net credit losses for the nine months ended September 30, 2013		$	18,759		$	32,448
	Cumulative net credit losses		$	239,176		$	289,167
	Cumulative net credit losses as a % of original UPB			15.9	%		26.6	%
	Percentage of ARM loans (B)			51.2	%		56.9	%
	Percentage of loans with original loan-to-value ratio >90%			10.6	%		16.8	%
	Percentage of interest-only loans			27.6	%		3.3	%
	Face amount of debt (C)		$	383,199		$	521,009
	Weighted average funding cost of debt (D)			0.55	%		0.48	%
		(A)	Delinquencies include loans 60 or more days past due, in foreclosure, under bankruptcy filing or REO.
		(B)	ARM loans are adjustable-rate mortgage loans. An option ARM is an adjustable-rate mortgage that provides the borrower with an option to choose from several payment amounts each month for a specified period of the loan term. None of the loans in the subprime portfolios are option ARMs.
		(C)	Excludes face amount of $4.0 million of retained notes for Subprime Portfolio I at September 30, 2013.
		(D)	Includes the effect of applicable hedges.

INVESTMENTS_IN_REAL_ESTATE_AND1

INVESTMENTS IN REAL ESTATE AND INTANGIBLES (Tables)	9 Months Ended
	Sep. 30, 2013
Investments In Real Estate And Intangibles Tables	'
Schedule of Investments in Real Estate	'
	The following table summarizes Newcastle’s investments in real estate:
		30-Sep-13							31-Dec-12
		Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value		Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value
	Senior Housing
	Land	$	43,494	$	—		$	43,494	$	15,993	$	—		$	15,993
	Buildings		341,249		(4,810	)		336,439		144,676		(1,349	)		143,327
	Building improvements		6,668		(461	)		6,207		2,433		(124	)		2,309
	Furniture, fixtures and equipment		17,283		(1,014	)		16,269		1,257		(85	)		1,172
	Senior Housing Total	$	408,694	$	(6,285	)	$	402,409	$	164,359	$	(1,558	)	$	162,801
	Other Commercial Real Estate
	Land	$	1,106	$	—		$	1,106	$	1,106	$	—		$	1,106
	Buildings		6,588		(1,312	)		5,276		6,588		(1,181	)		5,407
	Building improvements		951		(701	)		250		826		(667	)		159
	Furniture, fixtures and equipment		—		—			—		—		—			—
	Other Commercial Real Estate Total	$	8,645	$	(2,013	)	$	6,632	$	8,520	$	(1,848	)	$	6,672
	Total Investments in Real Estate	$	417,339	$	(8,298	)	$	409,041	$	172,879	$	(3,406	)	$	169,473
Schedule of Intangibles	'
	The following table summarizes Newcastle’s intangible assets related to its senior housing real estate:
		30-Sep-13							31-Dec-12
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
	In-place resident lease intangibles	$	51,250	$	(14,983	)	$	36,267	$	22,711	$	(4,205	)	$	18,506
	Non-compete intangibles		1,600		(143	)		1,457		600		(20	)		580
	Other intangibles		3,700		(53	)		3,647		—		—			—
	Total intangibles	$	56,550	$	(15,179	)	$	41,371	$	23,311	$	(4,225	)	$	19,086

DEBT_OBLIGATIONS_Tables

DEBT OBLIGATIONS (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Obligations Tables	'
Schedule of Debt Obligations	'
	The following table presents certain information regarding Newcastle’s debt obligations and related hedges at September 30, 2013:
																				Collateral
	Debt Obligation/Collateral		Month Issued	Outstanding		Carrying		Final Stated Maturity	Unhedged Weighted				Weighted Average			Weighted Average Maturity		Face		Outstanding Face Amount (C)		Amortized		Carrying		Weighted Average Maturity		Floating Rate Face Amount (C)		Aggregate
				Face		Value			Average				Funding			(Years)		Amount				Cost Basis (C)		Value (C)		(Years)				Notional
				Amount					Funding Cost (A)				Cost (B)					of Floating Rate												Amount of Current Hedges (D)
																		Debt
	CDO Bonds Payable
	CDO VI (E)		Apr-05		91,908		91,908	Apr 2040		0.85	%			5.35	%		5.7		88,671		170,592		90,638		125,464		3		42,323		88,671
	CDO VIII		Nov-06		344,953		344,351	Nov 2052		0.88	%			2.37	%		1.3		337,353		547,236		387,615		417,192		2.3		306,024		105,393
	CDO IX		May-07		280,647		282,214	May 2052		0.56	%			0.53	%		0.5		280,647		557,946		433,394		442,687		2.5		290,976		—
					717,508		718,473							2.03	%		1.6		706,671		1,275,774		911,647		985,343		2.5		639,323		194,064
	Other Bonds and Notes Payable
	MH Loans Portfolio I (F)		Apr-10		57,684		54,230	Jul-35		6.47	%			6.47	%		4.1		—		106,304		91,488		91,488		6.1		670		—
	MH Loans Portfolio II		May 2011		99,979		99,568	Dec-33		4.61	%			4.61	%		3.8		—		134,641		132,728		132,728		4.9		22,104		—
					157,663		153,798							5.27	%		3.9		—		240,945		224,216		224,216		5.5		22,774		—
	Repurchase Agreements (G)
	FNMA/FHLMC securities (H)		Sep-13		361,836		361,836	Oct 2013		0.38	%			0.38	%		0.1		361,836		362,484		386,640		387,608		3.7		362,484		—
	Newcastle CDO IX-Class A-2		Sep-13		15,050		15,050	Oct 2013		LIBOR+1.65	%			1.83	%		0.1		15,050		—		—		—		—		—		—
					376,886		376,886							0.44	%		0.1		376,886		362,484		386,640		387,608		3.7		362,484		—
	Mortgage Notes Payable
	BPM Senior Housing Facilities		Jul-12		107,007		107,007	Sep-19		4.12	%			4.42	%		5.6		—		N/A		129,767		129,767		N/A		—		—
	Utah Senior Housing Facilities		Nov-12		16,000		16,000	Oct-17		LIBOR+3.75	%	(I)		5.15	%		4		16,000		N/A		21,059		21,059		N/A		—		—
	Courtyards Senior Housing facilities		Dec-12		16,125		16,125	Oct-17		LIBOR+3.75	%	(I)		5.06	%		4		16,125		N/A		20,179		20,179		N/A		—		—
	Woodside Senior Housing Facilities		Jul-13		14,100		14,100	Aug-16		LIBOR+3.75	%			4.58	%		2.8		14,100		N/A		18,667		18,667		N/A		—		—
	Florida Senior Housing Facilities
	GE Financing		Aug-13		93,521		93,521	Jul-18		LIBOR+3.75	%	(I)		5	%		4.8		93,521		N/A		127,966		127,966		N/A		—		—
	Freddie Mac Financing		Aug-13		41,394		39,678	Apr-20		4	%	(J)		4.9	%		5.3		—		N/A		69,145		69,145		N/A		—		—
	Seller Financing		Aug-13		11,432		9,432	Apr-18		1.68	%	(K)		1.68	%		4.8		11,432		N/A		—		—		N/A		—		—
	Glen Riddle Senior Housing Facilities		Aug 2013		16,875		16,875	Oct-17		LIBOR+3.75	%	(I)		5.01	%		4		16,875		N/A		21,899		21,899		N/A		—		—
	Royal Palm Senior Housing Facilities				14,250		14,250	Jul-18		LIBOR+3.75	%	(I)		4.99	%		4.8		14,250		N/A		18,644		18,644		N/A		—		—
	Schenley Gardens Senior Housing Facilities		Sep-13		8,250		8,250	Oct-17		LIBOR+3.75	%	(I)		5.04	%		4		8,250		N/A		16,454		16,454		N/A		—		—
					338,954		335,238							4.7	%		4.9		190,553		N/A		443,780		443,780		N/A		—		—
	Corporate
	Junior subordinated notes payable		Mar 2006		51,004		51,239	Apr-35		7.574	%	(L)		7.39	%		21.6		—		—		—		—		—		—		—
					51,004		51,239							7.39	%		21.6		—		—		—		—		—		—		—
	Subtotal debt obligations				1,642,015		1,635,634							2.7	%		2.8	$	1,274,110	$	1,879,203	$	1,966,283	$	2,040,947		3.1	$	1,024,581	$	194,064
	Financing on subprime mortgage loans subject to call option (M)				406,217		406,217
	Total debt obligations			$	2,048,232	$	2,041,851
	See notes on next page
		(A)	Weighted average, including floating and fixed rate classes and including the amortization of deferred financing costs.
		(B)	Including the effect of applicable hedges.
		(C)	Excluding (i) restricted cash held in CDOs to be used for principal and interest payments of CDO debt, and (ii) operating cash in senior housing entities.
		(D)	Including a $88.7 million notional amount of interest rate swap agreement in CDO VI, which was an economic hedge not designated as a hedge for accounting purposes.
		(E)	This CDO was not in compliance with its applicable over collateralization tests as of September 30, 2013. Newcastle is not receiving cash flows from this CDO (other than senior management fees and cash flows on senior classes of bonds that were repurchased), since net interest is being used to repay debt, and expects this CDO to remain out of compliance for the foreseeable future.
		(F)	Excluding $20.5 million face amount of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.
		(G)	These repurchase agreements had $0.05 million of associated accrued interest payable at September 30, 2013. $376.9 million face amount of these repurchase agreements were renewed subsequent to September 30, 2013. The counterparties on these repurchase agreements are Bank of America ($262.4 million), Barclays ($18.5 million), Citi ($38.4 million), Goldman Sachs ($9.8 million) and Nomura ($47.8 million).
		(H)	Interest rates on these repurchase agreements are fixed, but will be reset on a short-term basis.
		(I)	These financings are with GE and are split between two separate credit facilities. Utah, Courtyards, Glen Riddle and Schenley Gardens share one credit facility and Florida and Royal Palm share a separate credit facility. These financings have a LIBOR floor of 1%.
		(J)	Upon assuming these loans, Newcastle bought down the interest rate to 4% for the first two years. The interest rate will be fixed, ranging from 5.99% to 6.76% for the remaining term.
		(K)	The interest rate for the first two years is based on applicable US Treasury Security rates. The interest rate for years 3 through 5 is 4.5%, 4.75% and 5.0%, respectively.
		(L)	LIBOR +2.25% after April 2016.
		(M)	Issued in April 2006 and July 2007. See Note 6 regarding the securitizations of Subprime Portfolios I and II.

FAIR_VALUE_Tables

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Tables	'
Schedule Of Carrying Value and Fair Value Of Assets and Liabilities	'
	The carrying values and fair values of Newcastle’s assets and liabilities at September 30, 2013 were as follows:
			Principal														Weighted				Weighted
			Balance or														Average				Average
			Notional				Carrying				Estimated						Yield/Funding				Maturity
			Amount				Value				Fair Value				Fair Value Method (A)		Cost				(Years)
	Assets
	Financial instruments:
	Real estate securities, available-for-sale*		$	1,038,815			$	825,499			$	825,499			Broker quotations, counterparty quotations,  pricing services,  pricing models			5.64	%			3.1
	Real estate related and other loans, held-for-sale, net			1,353,531				795,297				808,151			Broker quotations, counterparty quotations, pricing services,  pricing models			11.97	%			1.3
	Residential mortgage loans, held-for-investment, net			288,059				260,463				261,994			Pricing models			8.33	%			5.5
	Residential mortgage loans, held-for-sale, net			3,238				2,236				2,236			Pricing models			19.71	%			4.5
	Subprime mortgage loans subject to call option (B)			406,217				406,217				406,217			(B)			9.09	%			(B	)
	Restricted cash*			1,827				1,827				1,827
	Cash and cash equivalents*			92,134				92,134				92,134
	Non-hedge derivative assets (C)(D)*			116,806				43,172				43,172			Counterparty quotations			N/A				(C	)
	Investments in real estate and intangibles, net							450,412
	Equity method investment in Local Media Group							57,384
	Other investments							25,133
	Receivables and other assets							27,003
							$	2,986,777
	Liabilities
	Financial instruments:
	CDO bonds payable (F)		$	717,508			$	718,473			$	568,186			Pricing models			2.03	%			1.6
	Other bonds and notes payable (F)			157,663				153,798				157,916			Broker quotations, pricing models			5.27	%			3.9
	Repurchase agreements			376,886				376,886				376,886			Market comparables			0.44	%			0.1
	Mortgage notes payable			338,954				335,238				335,238			Pricing models			4.7	%			4.9
	Financing of subprime mortgage loans subject to call option (B)			406,217				406,217				406,217			(B)			9.09	%			(B	)
	Junior subordinated notes payable			51,004				51,239				34,385			Pricing models			7.39	%			21.6
	Interest rate swaps, treated as hedges (D)(E)*			105,393				7,416				7,416			Counterparty quotations			N/A				(E	)
	Non-hedge derivatives (C)(D)*			186,008				9,699				9,699			Counterparty quotations			N/A				(C	)
	Due to affiliates							4,911
	Dividends payable, accrued expenses and other liabilities							57,925
							$	2,121,802
	*Measured at fair value on a recurring basis.
		(A)	Methods are listed in order of priority. In the case of real estate securities and real estate related and other loans, broker quotations are obtained if available and practicable, otherwise counterparty quotations or pricing service valuations are obtained or, finally, internal pricing models are used. Internal pricing models are only used for (i) securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) loans or debt obligations which are private and untraded.
		(B)	These two items result from an option, not an obligation, to repurchase loans from Newcastle’s subprime mortgage loan securitizations (Note 6), are noneconomic until such option is exercised, and are equal and offsetting.
		(C)	This represents one interest rate swap agreement with a total notional balance of $186.0 million, maturing in March 2015 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI. These derivative agreements were not designated as hedges for accounting purposes as of September 30, 2013.
		(D)	Newcastle’s derivatives fall into two categories. As of September 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle’s nonrecourse structures. An aggregate notional balance of $291.4 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs’ total investments exceeded the fair value of each of the CDOs’ derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $116.8 million, represent linked transactions with $116.8 face amount of underlying financed securities. Newcastle’s interest rate swap counterparties include Bank of America and Credit Suisse.
		(E)	Represents derivative agreements:
	Year of Maturity		Weighted Average Month of Maturity			Aggregate Notional Amount				Weighted Average Fixed Pay Rate / Cap Rate				Aggregate Fair Value
														Asset / (Liability)
	Interest rate swap agreements which receive 1-Month LIBOR:
	2016		Apr			$	105,393				5.04	%		$	(7,416	)
		(F)	Newcastle notes that the unrealized gain on the liabilities within CDOs and other non-recourse financing structures cannot be fully realized. Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle’s exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. As a result, the fair value of Newcastle’s net investments in these nonrecourse financing structures is equal to the present value of their expected future net cash flows.
Schedule of Fair Value Of Derivative Assets	'
	Represents derivative agreements:
	Year of Maturity		Weighted Average Month of Maturity			Aggregate Notional Amount				Weighted Average Fixed Pay Rate / Cap Rate				Aggregate Fair Value
														Asset / (Liability)
	Interest rate swap agreements which receive 1-Month LIBOR:
	2016		Apr			$	105,393				5.04	%		$	(7,416	)
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis	'
	The following table summarizes such financial assets and liabilities measured at fair value on a recurring basis at September 30, 2013:
											Fair Value
			Principal Balance or Notional Amount				Carrying Value				Level 2				Level 3A				Level 3B				Total
	Assets
	Real estate securities, available-for-sale:
	CMBS		$	343,917			$	286,076			$	—			$	283,866			$	2,210			$	286,076
	REIT debt			29,200				31,215				31,215				—				—				31,215
	Non-Agency RMBS			101,315				57,506				—				57,393				113				57,506
	ABS - other real estate			8,464				—				—				—				—				—
	FNMA / FHLMC			362,484				387,608				387,608				—				—				387,608
	CDO			193,435				63,094				—				58,036				5,058				63,094
	Real estate securities total		$	1,038,815			$	825,499			$	418,823			$	399,295			$	7,381			$	825,499
	Derivative assets:
	Linked transactions at fair value			116,806				43,172				—				43,172				—				43,172
	Derivative assets total		$	116,806			$	43,172			$	—			$	43,172			$	—			$	43,172
	Liabilities
	Derivative Liabilities:
	Interest rate swaps, treated as hedges		$	105,393			$	7,416			$	7,416			$	—			$	—			$	7,416
	Interest rate swaps, not treated as hedges			186,008				9,699				9,699				—				—				9,699
	Derivative liabilities total		$	291,401			$	17,115			$	17,115			$	—			$	—			$	17,115
Schedule of Change in Fair Value of Level 3 Investments	'
	Newcastle’s investments in instruments measured at fair value on a recurring basis using Level 3 inputs changed during the nine months ended September 30, 2013 as follows:
			Level 3A
			CMBS								ABS
			Conduit				Other				Non-Agency RMBS				Other				Equity/Other Securities				Linked Transactions			Total
	Balance at December 31, 2012		$	225,575			$	104,451				330,021			$	798			$	65,027			$	—		$	725,872
	Transfers (A)
	Transfers from Level 3B			12,152				11,803				21,897				—				—				—			45,852
	Transfers into Level 3B			(3,291	)			(8,257	)			—				—				—				—			(11,548	)
	Spin-off of New Residential			—				—				(560,783	)			—				—				—			(560,783	)
	Total gains (losses) (B)
	Included in net income (C)			279				(165	)			(683	)			(87	)			1,381				—			725
	Included in other comprehensive income (loss)			10,836				2,128				26,542				296				(1,581	)			—			38,221
	Amortization included in interest income			6,746				516				12,375				—				3,703				—			23,340
	Purchases, sales and repayments
	Purchases			—				—				267,160				—				—				43,172			310,332
	Proceeds from sales			(51,708	)			(16,902	)			(6,127	)			(934	)			(4,801	)			—			(80,472	)
	Proceeds from repayments			(4,758	)			(5,539	)			(33,009	)			(73	)			(5,693	)			—			(49,072	)
	Balance at September 30, 2013		$	195,831			$	88,035				57,393			$	—			$	58,036			$	43,172		$	442,467
			Level 3B
			CMBS								ABS
			Conduit				Other				Non-Agency RMBS				Other				Equity/Other Securities				Linked Transactions			Total
	Balance at December 31, 2012		$	29,194			$	17,171			$	25,954			$	677			$	5,998			$	—		$	78,994
	Transfers (A)
	Transfers from Level 3A			3,291				8,257				—				—				—				—			11,548
	Transfers into Level 3A			(12,152	)			(11,803	)			(21,897	)			—				—				—			(45,852	)
	Total gains (losses) (B)
	Included in net income (C)			69				(159	)			3,055				5				—				—			2,970
	Included in other comprehensive income (loss)			3,607				1,135				(2,137	)			(223	)			(42	)			—			2,340
	Amortization included in interest income			1,593				240				3,345				307				365				—			5,850
	Purchases, sales and repayments
	Purchases			—				—				—				—				—				—			—
	Proceeds from sales			(21,868	)			(14,841	)			(5,054	)			(425	)			—				—			(42,188	)
	Proceeds from repayments			(1,524	)			—				(3,153	)			(341	)			(1,263	)			—			(6,281	)
	Balance at September 30, 2013		$	2,210			$	—			$	113			$	—			$	5,058			$	—		$	7,381
		(A)	Transfers are assumed to occur at the beginning of the quarter.
		(B)	None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date.
		(C)	These gains (losses) are recorded in the following line items in the consolidated statements of income:
			Nine Months Ended September 30, 2013
			Level 3A				Level 3B
	Gain (loss) on settlement of investments, net		$	1,531			$	3,586
	Other income (loss), net			—				—
	OTTI			(806	)			(616	)
	Total		$	725			$	2,970
	Gain (loss) on settlement of investments, net, from investments transferred into Level 3 during the period		$	—			$	—
Schedule of Gains Losses on Fair Value of RE Securities	'
	These gains (losses) are recorded in the following line items in the consolidated statements of income:
			Nine Months Ended September 30, 2013
			Level 3A				Level 3B
	Gain (loss) on settlement of investments, net		$	1,531			$	3,586
	Other income (loss), net			—				—
	OTTI			(806	)			(616	)
	Total		$	725			$	2,970
	Gain (loss) on settlement of investments, net, from investments transferred into Level 3 during the period		$	—			$	—
Schedule of Securities Valuation Methodology And Results	'
	As of September 30, 2013, Newcastle’s securities valuation methodology and results are further detailed as follows:
											Fair Value
			Outstanding				Amortized												Internal
			Face				Cost				Multiple				Single				Pricing
	Asset Type		Amount (A)				Basis (B)				Quotes (C)				Quote (D)				Models (E)				Total
	CMBS		$	343,917			$	228,946			$	241,108			$	42,758			$	2,210			$	286,076
	REIT debt			29,200				28,607				31,215				—				—				31,215
	Non-Agency RMBS			101,315				40,950				57,393				—				113				57,506
	ABS - other real estate			8,464				—				—				—				—				—
	FNMA / FHLMC			362,484				386,640				387,608				—				—				387,608
	CDO			193,435				61,230				—				58,036				5,058				63,094
	Total		$	1,038,815			$	746,373			$	717,324			$	100,794			$	7,381			$	825,499
		(A)	Net of incurred losses
		(B)	Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.
		(C)	Management generally obtained pricing service quotations or broker quotations from at least two sources, one of which was generally the seller (the party that sold us the security). Management selected one of the quotes received as being most representative of fair value and did not use an average of the quotes. Even if Newcastle receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes Newcastle receives. Management believes using an average of the quotes in these cases would generally not represent the fair value of the asset. Based on Newcastle’s own fair value analysis using internal models, management selects one of the quotes which are believed to more accurately reflect fair value. Newcastle never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” – meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price.
		(D)	Management was unable to obtain quotations from more than one source on these securities. The one source was generally the seller (the party that sold us the security) or a pricing service.
		(E)	Securities whose fair value was estimated based on internal pricing models are further detailed as follows:
											Impairment				Unrealized				Weighted Average Significant Input
			Amortized								Recorded				Gains											Cumulative
											In				(Losses) in
			Cost								Current				Accumulated				Discount				Prepayment			Default			Loss
			Basis (B)				Fair Value				Period				OCI				Rate				Speed (F)			Rate			Severity
	CMBS - Conduit		$	797			$	2,210			$	76			$	1,413				8	%			N/A			24.5	%		47.1	%
	Non-Agency RMBS			—				113				—				113				8	%			2	%		8	%		75	%
	CDO			3,081				5,058				—				1,977				17.7	%			4.5	%		17.5	%		73.5	%
	Total		$	3,878			$	7,381			$	76			$	3,503
	All of the assumptions listed have some degree of market observability, based on Newcastle’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions.  Newcastle uses assumptions that generate its best estimate of future cash flows of each respective security.
	The prepayment vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services.
	Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. Newcastle typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also effect loss severity. Newcastle considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections.
	Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model.
	The discount rates Newcastle uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which Newcastle transacts have become less liquid, Newcastle has had to rely on fewer data points in this analysis.
		(F)	Projected annualized average prepayment rate.
Securities valued based on internal pricing models	'
	Securities whose fair value was estimated based on internal pricing models are further detailed as follows:
											Impairment				Unrealized				Weighted Average Significant Input
			Amortized								Recorded				Gains											Cumulative
											In				(Losses) in
			Cost								Current				Accumulated				Discount				Prepayment			Default			Loss
			Basis (B)				Fair Value				Period				OCI				Rate				Speed (F)			Rate			Severity
	CMBS - Conduit		$	797			$	2,210			$	76			$	1,413				8	%			N/A			24.5	%		47.1	%
	Non-Agency RMBS			—				113				—				113				8	%			2	%		8	%		75	%
	CDO			3,081				5,058				—				1,977				17.7	%			4.5	%		17.5	%		73.5	%
	Total		$	3,878			$	7,381			$	76			$	3,503
	All of the assumptions listed have some degree of market observability, based on Newcastle’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions.  Newcastle uses assumptions that generate its best estimate of future cash flows of each respective security.
	The prepayment vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services.
	Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. Newcastle typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also effect loss severity. Newcastle considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections.
	Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model.
	The discount rates Newcastle uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which Newcastle transacts have become less liquid, Newcastle has had to rely on fewer data points in this analysis.
Schedule of fair value for real estate related loans and residential mortgage loans held for sale	'
	The following tables summarize certain information for real estate related and other loans and residential mortgage loans held-for-sale as of September 30, 2013:
															Valuation				Significant Input
			Outstanding												Allowance/				Range							Weighted Average
			Face				Carrying				Fair				(Reversal) In				Discount				Loss			Discount			Loss
	Loan Type		Amount				Value				Value				Current Year				Rate				Severity			Rate			Severity
	Mezzanine		$	338,178			$	268,635			$	272,735			$	(13,611	)			5.0% - 25.3%				0.0% - 100.0%			10.7	%		5.4	%
	Bank Loan			875,072				402,139				409,354				(3,110	)			5.9% - 33.3%				0.0% - 100.0%			13.7	%		45.1	%(A)
	B-Note			110,461				94,703				96,179				6,192				6.0% - 15.0%				0.0% - 47.0%			10.5	%		9.7	%
	Whole Loan			29,820				29,820				29,883				—				4.8% - 6.9%				0.0% - 15.5%			4.8	%		15.1	%
	Total Real Estate Related and other Loans Held-for-Sale, Net		$	1,353,531			$	795,297			$	808,151			$	(10,529	)
	(A) Primarily driven by the 60% severity of the GateHouse loans (see Note 2).
															Valuation
			Outstanding												Allowance/				Significant Input (Weighted Average)
			Face				Carrying				Fair				(Reversal) In				Discount				Prepayment			Constant			Loss
	Loan Type		Amount				Value				Value				Current Year				Rate				Speed			Default Rate			Severity
	Non-securitized Manufactured Housing Loans Portfolio I		$	561			$	145			$	145			$	(9	)			81.5	%			5	%		11.6	%		65	%
	Non-securitized Manufactured Housing Loans Portfolio II			2,677				2,091				2,091				(33	)			15.4	%			5	%		3.5	%		60	%
	Total Residential Mortgage Loans Held-for-Sale, Net		$	3,238			$	2,236			$	2,236			$	(42	)
Schedule of fair value for residential mortgage loans held for investment	'
	The following table summarizes certain information for residential mortgage loans held-for-investment as of September 30, 2013:
																			Significant Input (Weighted Average)
	Loan Type		Outstanding Face Amount				Carrying Value				Fair Value				Valuation Allowance/ (Reversal) In Current Year				Discount Rate				Prepayment Speed			Constant Default Rate			Loss Severity
	Securitized Manufactured Housing Loans Portfolio I		$	106,304			$	91,488			$	93,533			$	(1,778	)			9.5	%			6	%		3	%		65	%
	Securitized Manufactured Housing Loans Portfolio II			134,641				132,728				128,623				1,740				7.7	%			7	%		3.5	%		60	%
	Residential Loans			47,114				36,247				39,838				(864	)			7.8	%			4.6	%		2.8	%		46	%
	Total Residential Mortgage Loans, Held-for-Investment, Net		$	288,059			$	260,463			$	261,994			$	(902	)
Schedule of Fair Value of Derivatives	'
	Newcastle’s derivatives are recorded on its balance sheet as follows:
					Fair Value
					September 30,				December 31,
			Balance sheet location		2013				2012
	Derivative Assets
	Linked transactions at fair value		Derivative Assets		$	43,172			$	—
	Interest rate caps, not designated as hedges		Derivative Assets			—				165
					$	43,172			$	165
	Derivative Liabilities
	Interest rate swaps, designated as hedges		Derivative Liabilities		$	7,416			$	12,175
	Interest rate swaps, not designated as hedges		Derivative Liabilities			9,699				19,401
					$	17,115			$	31,576
Schedule of Outstanding Derivatives	'
	The following table summarizes information related to derivatives:
			30-Sep-13				31-Dec-12
	Cash flow hedges
	Notional amount of interest rate swap agreements		$	105,393			$	154,450
	Amount of (loss) recognized in OCI on effective portion			(7,331	)			(12,050	)
	Deferred hedge gain (loss) related to anticipated financings, which have subsequently occurred, net of amortization			187				237
	Deferred hedge gain (loss) related to dedesignation, net of amortization			(163	)			(210	)
	Expected reclassification of deferred hedges from AOCI into earnings over the next 12 months			8				4
	Expected reclassification of current hedges from AOCI into earnings over the next 12 months			(4,547	)			(6,259	)
	Non-hedge Derivatives
	Notional amount of interest rate swap agreements			186,008				294,203
	Notional amount of interest rate cap agreements			—				23,400
	Notional amount of linked transactions (A)			116,806				—
	(A) This represents the current face amount of the underlying financed securities comprising linked transactions.
Schedule of Gain Loss on Derivatives	'
	The following table summarizes gains (losses) recorded in relation to derivatives:
					Three Months Ended								Nine Months Ended
					September 30,								September 30,
			Income statement location		2013				2012				2013				2012
	Cash flow hedges
	Gain (loss) on the ineffective portion		Other income (loss)		$	—			$	—			$	—			$	483
	Gain (loss) immediately recognized at dedesignation		Gain (loss) on sale of investments; Other income (loss)			—				—				—				(7,036	)
	Amount of gain (loss) reclassified from AOCI into income, related to effective portion		Interest expense			(1,280	)			(7,830	)			(4,848	)			(28,766	)
	Deferred hedge gain reclassified from AOCI into income, related to anticipated financings		Interest expense			17				15				50				45
	Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges		Interest expense			(16	)			307				(48	)			1,205
	Non-hedge derivatives gain (loss)
	Interest rate swaps		Other income (loss)			1,894				1,975				7,302				6,052
	Linked transactions		Interest expense			(110	)			—				(118	)			—
Schedule of net assets recognized as linked transactions	'
	The following table presents both gross information and net information about linked transactions as of September 30, 2013:
	Real estate securities-available for sale (A)		$	103,140
	Repurchase agreements (B)			(59,968	)
	Net assets recognized as linked transactions		$	43,172
		(A)	Represents the fair value of the securities accounted for as part of linked transactions at September 30, 2013.
		(B)	Represents the carrying value, which approximates fair value, of the repurchase agreements accounted for as part of linked transactions at September 30, 2013.

EQUITY_AND_EARNINGS_PER_SHARE_

EQUITY AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
Equity And Earnings Per Share Tables	'
Schedule of Outstanding Options	'
	Newcastle’s outstanding options at September 30, 2013 consisted of the following:
		Number of Options		Strike Price		Maturity Date
			304,604		10.18	12/1/13
			328,350		11.74	1/9/14
			343,275		11.49	5/25/14
			162,500		14.05	11/22/14
			330,000		13.24	1/12/15
			2,000		13.83	8/1/15
			170,000		13.16	11/1/16
			242,000		14.01	1/23/17
			456,000		12.4	4/11/17
			1,580,166		2.72	3/29/21
			2,424,833		2.07	9/27/21
			2,000		2.28	12/20/21
			1,867,167		2.82	4/3/22
			2,265,000		3.05	5/21/22
			2,499,167		3.04	7/31/22
			5,750,000		4.24	1/11/23
			2,300,000		4.75	2/15/23
			4,025,000		4.97	6/17/23
	Total W/A		25,052,062	$	4.52
	As of September 30, 2013, Newcastle’s outstanding options were summarized as follows:
	Held by the Manager		21,918,795
	Issued to the Manager and subsequently transferred to certain of the Manager's employees		3,129,267
	Issued to the independent directors		4,000
	Total		25,052,062

GAINLOSSES_ON_SETTLEMENT_OF_IN1

GAIN(LOSSES) ON SETTLEMENT OF INVESTMENTS, NET AND OTHER INCOME(LOSS), NET (Tables)	9 Months Ended
	Sep. 30, 2013
Gainlosses On Settlement Of Investments Net And Other Incomeloss Net Tables	'
Schedule of Gain (Loss) on Settlement of Investments, Net and Other Income (Loss), Net	'
	These items are comprised of the following:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Gain (loss) on settlement of investments, net
	Gain on settlement of real estate securities	$	1,381		$	4,930		$	9,590		$	14,615
	Loss on settlement of real estate securities		—			(8	)		(3,592	)		(4,433	)
	Loss on repayment/disposition of loans held-for-sale		—			—			(354	)		(1,614	)
	Gain on sale of CDO X interests		—			224,317			—			224,317
	Gain on termination of derivative		—			—			813			—
	Loss on disposal of long-lived assets		7			—			(6	)		—
		$	1,388		$	229,239		$	6,451		$	232,885
	Other income (loss), net
	Gain (loss) on non-hedge derivative instruments	$	1,894		$	1,975		$	7,302		$	6,052
	Unrealized (loss) recognized at de-designation of hedges		—			—			—			(7,036	)
	Hedge ineffectiveness		—			—			—			483
	Collateral management fee income, net		304			407			992			1,383
	Equity in earnings of equity method investees		(458	)		—			(458	)		—
	Other income (loss)		223			42			1,718			768
		$	1,963		$	2,424		$	9,554		$	1,650

RECLASSIFICATION_FROM_ACCUMULA1

RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables)	9 Months Ended
	Sep. 30, 2013
Reclassification From Accumulated Other Comprehensive Income Into Net Income Tables	'
Schedule of reclassification from accumulated other comprehensive income into net income	'
	The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income:
	Accumulated Other Comprehensive	Income Statement	Three Months Ended			Nine Months Ended
	Income Components	Location	30-Sep-13			30-Sep-13
	Net realized gain (loss) on securities
	Impairment	Other-than-temporary impairment on securities, net of portion of other-than-temporary impairment on securities recognized in other comprehensive income	$	—		$	(4,449	)
	Gain on settlement of real estate securities	Gain (loss) on settlement of investments, net		1,381			9,590
	Loss on settlement of real estate securities	Gain (loss) on settlement of investments, net		—			(3,592	)
			$	1,381		$	1,549
	Net realized gain (loss) on derivatives designated as cash flow hedges
	Gain (loss) recognized upon de-designation	Other income (loss)	$	—		$	—
	Hedge ineffectiveness	Other income (loss)		—			—
	Amortization of deferred gain (loss)	Interest expense		1			2
	Gain (loss) reclassified from AOCI into income, related to effective portion	Interest expense		(1,280	)		(4,848	)
	Gain (loss) of termination of derivative instruments	Gain (loss) on settlement of investments, net		—			—
			$	(1,279	)	$	(4,846	)
	Total reclassifications		$	102		$	(3,297	)

SUPPLEMENTAL_NONCASH_INVESTING1

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES RELATED TO CDOs (Tables)	9 Months Ended
	Sep. 30, 2013
Supplemental Non-Cash Investing And Financing Activities Related To Cdos Tables	'
Schedule of Supplemental Non-Cash Investing and Financing Activities relating to CDOs	'
	Supplemental non-cash investing and financing activities relating to CDOs are disclosed below:
		Nine Months Ended September 30,
		2013		2012
	Restricted cash generated from sale of securities	$	135,900	$	56,629
	Restricted cash generated from sale of loans	$	9,318	$	—
	Restricted cash generated from paydowns on securities and loans	$	281,889	$	197,686
	Restricted cash used for purchases of real estate securities	$	—	$	143,184
	Restricted cash used for purchases of real estate related and other loans	$	—	$	91,481
	Restricted cash used for repayments of CDO bonds payable	$	337,143	$	102,988
	Restricted cash used for purchases of derivative instruments	$	—	$	408
	Restricted cash used for settlement of derivative instruments	$	1,563	$	—
	Restricted cash used to return margin collateral	$	—	$	6,550
	CDO Deconsolidation
	Real estate securities	$	—	$	1,033,016
	Restricted cash	$	—	$	51,522
	Derivative liabilities	$	—	$	57,343
	CDO bonds payable	$	—	$	1,110,694

PRO_FORMA_CONDENSED_CONSOLIDAT1

PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2013
Pro Forma Condensed Consolidated Financial Information Tables	'
Schedule of pro forma condensed consolidated statement of operations	'
	UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	Nine months ended September 30, 2013
			Newcastle			Pro Forma Adjustments			Newcastle
			Consolidated			New			Consolidated
			Historical (A)			Residential (B)			Pro Forma
	Interest income		$	171,642		$	(12,019	)	$	159,623
	Interest expense			65,263			(2,152	)		63,111
	Net interest income			106,379			(9,867	)		96,512
	Impairment/(Reversal)
	Valuation allowance (reversal) on loans			(11,473	)		—			(11,473	)
	Other-than-temporary impairment on securities			4,405			(3,756	)		649
	Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)			44			—			44
				(7,024	)		(3,756	)		(10,780	)
	Net interest income after impairment/reversal			113,403			(6,111	)		107,292
	Other Revenues
	Rental income			44,344			—			44,344
	Care and ancillary income			8,081			—			8,081
	Total other revenues			52,425			—			52,425
	Other Income (Loss)
	Gain (loss) on settlement of investments, net			6,451			(58	)		6,393
	Gain on extinguishment of debt			4,565			—			4,565
	Equity in earnings of Local Media Group			1,045			—			1,045
	Other income, net			9,554			—			9,554
				21,615			(58	)		21,557
	Expenses
	Loan and security servicing expense			2,963			(108	)		2,855
	Property operating expenses			32,576			—			32,576
	General and administrative expense			23,507			(38	)		23,469
	Management fee to affiliate			24,879			(4,134	)		20,745
	Depreciation and amortization			15,881			—			15,881
				99,806			(4,280	)		95,526
	Income (loss) from continuing operations			87,637			(1,889	)		85,748
	Preferred dividends			(4,185	)		—			(4,185	)
	Income (loss) from continuing operations after preferred dividends		$	83,452		$	(1,889	)	$	81,563
	Income (loss) from continuing operations per share of common stock, after preferred dividends
	Basic		$	0.32					$	0.31
	Diluted		$	0.31					$	0.3
	Weighted Average Number of Shares of Common Stock Outstanding
	Basic			262,792,986						262,792,986
	Diluted			269,057,682						269,057,682
		(A)	Represents Newcastle’s historical consolidated statement of operations for the nine months ended September 30, 2013, excluding discontinued operations.
		(B)	Represents the portion of New Residential’s historical consolidated statement of operations for the period from January 1, 2013 to May 15, 2013 that is not included in Newcastle’s income (loss) from discontinued operations. After the May 15, 2013 spin-off of New Residential from Newcastle, no results of New Residential were reported in Newcastle’s consolidated statement of operations.

GENERAL_Details_Narrative

GENERAL (Details Narrative) (USD $)	Sep. 30, 2013	15-May-13	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified		New Residential Spin-Off	Manager
REIT Distribution Threshold for Nontaxation	90.00%	'	'
Cash & Cash Equivalents	'	$181,582	'
Shares held by Fortress and affiliates in Newcastle	6,100,000	'	'
Stock Options outstanding	25,052,062	'	21,918,795

ACQUISITIONS_Senior_Housing_As

ACQUISITIONS - Senior Housing Assets (Details) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

In Thousands, unless otherwise specified

Woodside Portfolio

Florida Portfolio

Glen Riddle Portfolio

Royal Palm Portfolio

Schenley Gardens Portfolio

Senior Living Assets Acquired

Housing

Housing

Housing

Housing

Housing

Allocation Of Purchase Price

'

'

'

'

'

'

'

'

Investments in Real Estate

$409,041

$169,473

$13,300

[1]

$178,009

[1]

$19,050

[1]

$16,938

[1]

$15,308

[1]

$242,605

[1]

Resident Lease Intangibles

'

'

1,900

[1]

21,589

[1]

2,100

[1]

1,800

[1]

1,150

[1]

28,539

[1]

Non-compete Intangibles

'

'

'

[1]

'

[1]

1,000

[1]

'

[1]

'

[1]

1,000

[1]

Other intangibles, net of accumulated depreciation

'

'

3,700

[1]

'

[1]

'

[1]

'

[1]

'

[1]

3,700

[1]

Assumed Mortgage Notes Payable

'

'

'

[1]

-41,443

[1]

'

[1]

'

[1]

'

[1]

-41,443

[1]

Earn-Out Liability

'

'

'

[1],[2]

-1,500

[1],[2]

'

[1],[2]

'

[1],[2]

'

[1],[2]

-1,500

[1],[2]

Other Assets, net of Other Liabilities

'

'

51

1,231

215

-98

-108

1,291

Total Purchase Price

'

'

18,951

[1]

157,886

[1]

22,365

[1]

18,640

[1]

16,350

[1]

234,192

[1]

Mortgage notes payable

'

'

-14,100

[1],[3]

-102,953

[1],[3]

-16,875

[1],[3]

-14,250

[1],[3]

-8,250

[1],[3]

-156,428

[1],[3]

Net consideration paid

'

'

4,851

[1]

54,933

[1]

5,490

[1]

4,390

[1]

8,100

[1]

77,764

[1]

Total acquisition related costs

'

'

$475

[1],[4]

$3,319

[1],[4]

$507

[1],[4]

$224

[1],[4]

$629

[1],[4]

$5,154

[1],[4]

Acquisition Date

'

'

'July 2013

'August 2013

'August 2013

'September 2013

'Sptember 2013

'

Location

'

'

'New York

[1]

'Florida/North Carolina

[1]

'Pennsylvania

[1]

'Florida

[1]

'Pennsylvania

[1]

'

Number of Communities

'

'

1

[1]

15

[1]

1

[1]

1

[1]

1

[1]

'

[1]

(A) Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.

[2]

(B) The amount represents the fair value of a contingent liability relating to Newcastle's agreement to pay the seller an earn-out payment if the aggregate EBITDA for the Florida portfolio for any calendar years in which the third, fourth, fifth and/or sixth anniversary of the acquisition date occurs is equal to or in excess of an earn-out threshold, as defined within the agreement.

[3]

(C) See Note 9.

[4]

(D) Acquisition related costs are expensed as incurred and included within general and administrative expense on the statement of income.

ACQUISITIONS_Summarized_Financ

ACQUISITIONS - Summarized Financial Information (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013
In Thousands, unless otherwise specified			Dow Jones Local Media Group
Balance Sheet:	'	'	'
Total Assets	'	'	$107,011	[1]
Total Liabilities	'	'	52,053	[1]
Total Equity	'	'	54,958
Newcastle's investment	57,384	'	57,384	[2]
Statement of Income:	'	'	'
Total Revenue	'	'	12,043
Depreciation and Amortization	'	'	945
Other Expenses	'	'	10,629
Total Expenses	'	'	11,574
Provision for Taxes	'	'	-576
Net Income	'	'	$1,045
[1]	(A) Due to the timing of the acquisition, Newcastle is still obtaining additional information relating to the purchase price allocation. Therefore, the review process of the purchase price allocation is not complete. Newcastle expects to complete this process by December 31, 2013.
[2]	(B) This amount represents Newcastle's maximum exposure to loss from this entity and includes capitalized acquisition expenses of $2.4 million.

ACQUISITIONS_Details_Narrative

ACQUISITIONS (Details Narrative) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

3 Months Ended

0 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Apr. 02, 2013

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 03, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 03, 2013

Sep. 30, 2013

Sep. 30, 2013

Affiliated Entity Gatehouse

Credit Suisse Line of Credit

Senior Living Assets Acquired

Senior Living Assets - Tranche 1

Senior Living Assets - Tranche 2

Dow Jones Local Media Group

Dow Jones Local Media Group

Dow Jones Local Media Group

Housing

States

Affiliated Entity Gatehouse

Affiliated Entity Gatehouse

Publications

Maximum

Number of housing assets/facilities acquired

'

'

'

'

'

'

'

19

'

'

'

'

'

Management fees paid, as a percentage of effective gross income

'

'

'

'

'

'

'

'

'5% of effective gross income

'6% of the property's gross income for the first two years and 7% thereafter

'

'

'

Acquisition Purchase Price

'

'

'

'

'

'

'

'

'

'

$86,900

'

'

Transaction costs incurred and capitalized

'

'

'

'

'

'

'

'

'

'

4,300

'

'

Equity investment made in acquisition

'

'

'

'

'

'

'

'

'

'

56,300

'

'

Debt financing utilized in acquisition

'

'

'

'

'

'

'

'

'

'

33,000

'

'

Contributions to equity method investees

250,000

'

'

-442,655

'

'

'

'

'

'

2,400

'

'

Line of credit agreement undrawn capacity

'

'

'

'

'

'

10,000

'

'

'

'

'

'

Number of publications acquired

'

'

'

'

'

'

'

'

'

'

33

'

'

Number of states acquiree operates in

'

'

'

'

'

'

'

'

'

'

7

'

'

Number of years acquiree in business for

'

'

'

'

'

'

'

'

'

'

'75 years

'

'

Line of credit agreement maximum borrowing capacity

'

'

'

'

'

'

43,000

'

'

'

'

'

'

Variable interest rate basis description

'

'

'

'

'

'

'LIBOR

'

'

'

'

'

'

Variable Interest Rate Spread

'

'

'

'

'

'

6.50%

'

'

'

'

'

'

LIBOR Floor

'

'

'

'

'

'

1.00%

'

'

'

'

'

'

Annual management fees to be paid to affiliated manager

'

7,166

6,852

24,879

17,459

'

'

'

'

'

'

1,100

1,200

Additional management fee to be paid, as a percentage of EBITDA

'

'

'

'

'

'

'

'

'

'

'

12.50%

'

Ownership percentage in affiliate's debt

'

'

'

'

'

52.20%

'

'

'

'

'

'

'

Gatehouse Debt

'

'

'

'

'

1,200,000

'

'

'

'

'

'

'

Percentage of par offered to GateHouse creditors for conversion of debt

'

'

'

'

'

40.00%

'

'

'

'

'

'

'

Additional debt facility to be raised

'

'

'

'

'

150,000

'

'

'

'

'

'

'

Carrying value of creditor debt positions converted

'

'

'

'

'

$369,900

'

'

'

'

'

'

'

SPINOFF_OF_NEW_RESIDENTIAL_Car

SPIN-OFF OF NEW RESIDENTIAL - Carrying Value of Assets and Liabilities Immediately Prior to Spin-Off (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012	15-May-13
In Thousands, unless otherwise specified				New Residential Spin-Off
Assets:	'		'	'
Real estate securities, available-for-sale	$825,499	[1],[2]	$1,691,575	$1,647,289
Residential mortgage loans, held-for-investment, net	260,463		292,461	35,865
Investments in excess mortgage servicing rights at fair value	'		'	229,936
Investments in equity method investees	57,384		'	392,469
Cash & Cash Equivalents	'		'	181,582
Receivables and other assets	'		'	37,844
Total Assets	'		245,069	2,524,985
Liabilities:	'		'	'
Repurchase agreements	376,886		929,435	1,320,360
Accrued expenses and other liabilities	25,266		15,931	642
Total Liabilities	2,380		480	1,321,002
Net Assets	'		'	$1,203,983
[1]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.

SPINOFF_OF_NEW_RESIDENTIAL_Ass

SPIN-OFF OF NEW RESIDENTIAL - Assets and Liabilities of Discontinued Operations (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'	'
Total Assets	'	$245,069
Liabilities:	'	'
Total Liabilities	2,380	480
Discontinued Operations	'	'
Assets:	'	'
Investments in excess mortgage servicing rights at fair value	'	245,036
Receivables and other assets	'	33
Total Assets	'	245,069
Liabilities:	'	'
Purchase price payable on investments in excess mortgage servicing rights	'	59
Accrued expenses and other liabilities	'	421
Total Liabilities	'	$480

SPINOFF_OF_NEW_RESIDENTIAL_Res

SPIN-OFF OF NEW RESIDENTIAL - Results of Operations from Discontinued Operations (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest income	$47,486	$72,947	$171,642	$223,765
Net interest income	26,931	44,536	106,379	135,727
Other Income (Loss)	'	'	'	'
Other loss	1,963	2,424	9,554	1,650
Change in fair value of investments in excess mortgage servicing rights	'	'	3,894	6,513
Change in fair value of investments in equity method investees	'	'	19,170	'
Earnings from investments in equity method investees	1,045	'	1,045	'
Total other income (loss)	7,755	234,008	21,615	257,662
Expenses	'	'	'	'
Property operating costs	15,804	5,043	32,576	5,500
General and administrative expenses	9,356	4,020	23,507	11,023
Total Expenses	40,966	19,354	99,806	39,627
Income from discontinued operations	-2,386	10,974	33,343	20,707
Discontinued Operations	'	'	'	'
Interest income	'	9,903	15,095	16,422
Net interest income	'	9,903	15,095	16,422
Other Income (Loss)	'	'	'	'
Other loss	-2,386	-2	-2,388	-1
Change in fair value of investments in excess mortgage servicing rights	'	1,774	3,894	6,513
Change in fair value of investments in equity method investees	'	'	885	'
Earnings from investments in equity method investees	'	'	18,286	'
Total other income (loss)	-2,386	1,772	20,677	6,512
Expenses	'	'	'	'
Property operating costs	'	6	12	19
General and administrative expenses	'	695	2,417	2,208
Total Expenses	'	701	2,429	2,227
Income from discontinued operations	($2,386)	$10,974	$33,343	$20,707

SPINOFF_OF_NEW_RESIDENTIAL_Det

SPIN-OFF OF NEW RESIDENTIAL (Details Narrative) (USD $)	0 Months Ended	9 Months Ended			0 Months Ended
In Thousands, unless otherwise specified	Apr. 02, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	15-May-13	Apr. 02, 2013	Apr. 02, 2013
	Integer			Discontinued Operations	New Residential Spin-Off	Affiliated Entity Gatehouse	Affilate of Blackstone Tactical Opportunities Advisors LLC
UPB of Consumer Loans	$4,200,000	'	'	'	'	'	'
Number of loans	400,000	'	'	'	'	'	'
Contributions to equity method investees	250,000	-442,655	'	'	'	'	'
Ownership percentage in equity method investees	30.00%	'	'	'	'	'	'
Percentage of portfolio co-invested by other parties	70.00%	'	'	'	'	47.00%	23.00%
Purchase price of portfolio financed by asset-backed notes	2,200,000	'	'	'	'	'	'
Purchase price of portfolio	3,000,000	'	'	'	'	'	'
Reduction in basis for management fee computation	'	'	'	'	1,200,000	'	'
Investments in excess mortgage servicing rights included in discontinued operations and other liabilities	'	'	'	$2,400	'	'	'

SEGMENT_REPORTING_AND_VARIABLE2

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES - Segment Reporting (Details) (USD $)	3 Months Ended				9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012
Interest income	$47,486		$72,947		$171,642		$223,765		'
Interest expense	20,555		28,411		65,263		88,038		'
Net interest income (expense)	26,931		44,536		106,379		135,727		'
Impairment (reversal)	-12,998		5,014		-7,024		6,433		'
Other revenues	24,912		8,071		52,425		9,095		'
Other income (loss)	7,755		234,008		21,615		257,662		'
Property operating expenses	15,804		5,043		32,576		5,500		'
Depreciation and amortization	7,732		2,385		15,881		2,389		'
Other operating expenses	17,430		11,926		51,349		31,738		'
Income (loss) from continuing operations	31,630		262,247		87,637		356,424		'
Income (loss) from discontinued operations	-2,386		10,974		33,343		20,707		'
Net income (loss)	29,244		273,221		120,980		377,131		'
Preferred dividends	-1,395		-1,395		-4,185		-4,185		'
Income (Loss) Available to Common Stockholders	27,849		271,826		116,795		372,946		'
Investments	2,822,641		'		2,822,641		'		'
Cash and restricted cash	93,961		'		93,961		'		'
Derivative Assets	43,172		'		43,172		'		165
Other assets	27,003		'		27,003		'		'
Total assets	2,986,777		'		2,986,777		'		3,945,312
Debt	-2,041,851		'		-2,041,851		'		'
Derivative Liabilities	-17,115		'		-17,115		'		-31,576
Other liabilities	-62,836		'		-62,836		'		'
Total liabilities	-2,121,802		'		-2,121,802		'		-2,872,252
Preferred Stock	-61,583		'		-61,583		'		-61,583
GAAP book value	803,392		'		803,392		'		'
Additions to investments in real estate	'		'		1,899		26		'
Non-recourse Senior Living	'		'		'		'		'
Interest income	2		'		2		'		'
Interest expense	2,880		692		5,358		692		'
Net interest income (expense)	-2,878		-692		-5,356		-692		'
Impairment (reversal)	'		'		'		'		'
Other revenues	24,370		7,548		50,880		7,548		'
Other income (loss)	-74		-21		46		-21		'
Property operating expenses	15,542		4,742		31,827		4,742		'
Depreciation and amortization	7,676		2,370		15,715		2,370		'
Other operating expenses	7,545		1,650		12,619		4,848		'
Income (loss) from continuing operations	-9,345		-1,927		-14,591		-5,125		'
Income (loss) from discontinued operations	'		'		'		'		'
Net income (loss)	-9,345		-1,927		-14,591		-5,125		'
Preferred dividends	'		'		'		'		'
Income (Loss) Available to Common Stockholders	-9,345		-1,927		-14,591		-5,125		'
Investments	443,780		'		443,780		'		'
Cash and restricted cash	35,244		'		35,244		'		'
Derivative Assets	'		'		'		'		'
Other assets	15,226		'		15,226		'		'
Total assets	494,250		'		494,250		'		'
Debt	-335,238		'		-335,238		'		'
Derivative Liabilities	'		'		'		'		'
Other liabilities	-15,582		'		-15,582		'		'
Total liabilities	-350,820		'		-350,820		'		'
Preferred Stock	'		'		'		'		'
GAAP book value	143,430		'		143,430		'		'
Additions to investments in real estate	'		'		277,614		'		'
Non-Recourse CDOs	'		'		'		'		'
Interest income	27,027	[1]	51,050	[1]	95,254	[1]	161,490	[1]	'
Interest expense	4,926	[1]	14,694	[1]	18,876	[1]	49,334	[1]	'
Net interest income (expense)	22,101	[1]	36,356	[1]	76,378	[1]	112,156	[1]	'
Impairment (reversal)	-12,375	[1]	3,962	[1]	-389	[1]	3,173	[1]	'
Other revenues	'	[1]	'	[1]	'	[1]	'	[1]	'
Other income (loss)	4,821	[1]	231,825	[1]	16,496	[1]	256,358	[1]	'
Property operating expenses	'	[1]	'	[1]	'	[1]	'	[1]	'
Depreciation and amortization	'	[1]	'	[1]	'	[1]	'	[1]	'
Other operating expenses	179	[1]	230	[1]	563	[1]	713	[1]	'
Income (loss) from continuing operations	39,118	[1]	263,989	[1]	92,700	[1]	364,628	[1]	'
Income (loss) from discontinued operations	'	[1]	'	[1]	'	[1]	'	[1]	'
Net income (loss)	39,118	[1]	263,989	[1]	92,700	[1]	364,628	[1]	'
Preferred dividends	'	[1]	'	[1]	'	[1]	'	[1]	'
Income (Loss) Available to Common Stockholders	39,118	[1]	263,989	[1]	92,700	[1]	364,628	[1]	'
Investments	1,044,704	[1]	'		1,044,704	[1]	'		'
Cash and restricted cash	1,827	[1]	'		1,827	[1]	'		'
Derivative Assets	'	[1]	'		'	[1]	'		'
Other assets	3,420	[1]	'		3,420	[1]	'		'
Total assets	1,049,951	[1]	'		1,049,951	[1]	'		'
Debt	-718,473	[1]	'		-718,473	[1]	'		'
Derivative Liabilities	-17,115	[1]	'		-17,115	[1]	'		'
Other liabilities	-5,700	[1]	'		-5,700	[1]	'		'
Total liabilities	-741,288	[1]	'		-741,288	[1]	'		'
Preferred Stock	'	[1]	'		'	[1]	'		'
GAAP book value	308,663	[1]	'		308,663	[1]	'		'
Additions to investments in real estate	'		'		'	[1]	'		'
Unlevered CDOs	'		'		'		'		'
Interest income	57	[2]	109	[2]	383	[2]	339	[2]	'
Interest expense	'	[2]	'	[2]	'	[2]	'	[2]	'
Net interest income (expense)	57	[2]	109	[2]	383	[2]	339	[2]	'
Impairment (reversal)	'	[2]	'	[2]	'	[2]	'	[2]	'
Other revenues	'	[2]	'	[2]	'	[2]	'	[2]	'
Other income (loss)	60	[2]	83	[2]	205	[2]	259	[2]	'
Property operating expenses	'	[2]	'	[2]	'	[2]	'	[2]	'
Depreciation and amortization	'	[2]	'	[2]	'	[2]	'	[2]	'
Other operating expenses	'	[2]	'	[2]	'	[2]	1	[2]	'
Income (loss) from continuing operations	117	[2]	192	[2]	588	[2]	597	[2]	'
Income (loss) from discontinued operations	'	[2]	'	[2]	'	[2]	'	[2]	'
Net income (loss)	117	[2]	192	[2]	588	[2]	597	[2]	'
Preferred dividends	'	[2]	'	[2]	'	[2]	'	[2]	'
Income (Loss) Available to Common Stockholders	117	[2]	192	[2]	588	[2]	597	[2]	'
Investments	5,058	[2]	'		5,058	[2]	'		'
Cash and restricted cash	'	[2]	'		'	[2]	'		'
Derivative Assets	'	[2]	'		'	[2]	'		'
Other assets	5	[2]	'		5	[2]	'		'
Total assets	5,063	[2]	'		5,063	[2]	'		'
Debt	'	[2]	'		'	[2]	'		'
Derivative Liabilities	'	[2]	'		'	[2]	'		'
Other liabilities	'	[2]	'		'	[2]	'		'
Total liabilities	'	[2]	'		'	[2]	'		'
Preferred Stock	'	[2]	'		'	[2]	'		'
GAAP book value	5,063	[2]	'		5,063	[2]	'		'
Additions to investments in real estate	'		'		'	[2]	'		'
Non-recourse Other	'		'		'		'		'
Interest income	16,254	[1],[3]	18,290	[1]	49,027	[1],[3]	54,753	[1]	'
Interest expense	12,853	[1],[3]	13,375	[1]	37,710	[1],[3]	38,935	[1]	'
Net interest income (expense)	3,401	[1],[3]	4,915	[1]	11,317	[1],[3]	15,818	[1]	'
Impairment (reversal)	535	[1],[3]	499	[1]	-38	[1],[3]	3,202	[1]	'
Other revenues	542	[1],[3]	523	[1]	1,545	[1],[3]	1,547	[1]	'
Other income (loss)	'	[1],[3]	'	[1]	'	[1],[3]	'	[1]	'
Property operating expenses	262	[1],[3]	301	[1]	749	[1],[3]	758	[1]	'
Depreciation and amortization	54	[1],[3]	15	[1]	164	[1],[3]	19	[1]	'
Other operating expenses	668	[1],[3]	823	[1]	2,078	[1],[3]	2,523	[1]	'
Income (loss) from continuing operations	2,424	[1],[3]	3,800	[1]	9,909	[1],[3]	10,863	[1]	'
Income (loss) from discontinued operations	'	[1],[3]	'	[1]	'	[1],[3]	'	[1]	'
Net income (loss)	2,424	[1],[3]	3,800	[1]	9,909	[1],[3]	10,863	[1]	'
Preferred dividends	'	[1],[3]	'	[1]	'	[1],[3]	'	[1]	'
Income (Loss) Available to Common Stockholders	2,424	[1],[3]	3,800	[1]	9,909	[1],[3]	10,863	[1]	'
Investments	688,274	[1],[3]	'		688,274	[1],[3]	'		'
Cash and restricted cash	'	[1],[3]	'		'	[1],[3]	'		'
Derivative Assets	'	[1],[3]	'		'	[1],[3]	'		'
Other assets	77	[1],[3]	'		77	[1],[3]	'		'
Total assets	688,351	[1],[3]	'		688,351	[1],[3]	'		'
Debt	619,376	[1],[3],[4]	'		619,376	[1],[3],[4]	'		'
Derivative Liabilities	'	[1],[3]	'		'	[1],[3]	'		'
Other liabilities	-1,413	[1],[3]	'		-1,413	[1],[3]	'		'
Total liabilities	-620,789	[1],[3]	'		-620,789	[1],[3]	'		'
Preferred Stock	'	[1],[3]	'		'	[1],[3]	'		'
GAAP book value	67,562	[1],[3]	'		67,562	[1],[3]	'		'
Additions to investments in real estate	'		'		129	[1],[3]	'		'
Recourse	'		'		'		'		'
Interest income	1,206	[5]	3,213		14,771	[5]	4,981		'
Interest expense	462	[5]	826		3,910	[5]	1,387		'
Net interest income (expense)	744	[5]	2,387		10,861	[5]	3,594		'
Impairment (reversal)	'	[5]	'		3,738	[5]	'		'
Other revenues	'	[5]	'		'	[5]	'		'
Other income (loss)	'	[5]	'		25	[5]	'		'
Property operating expenses	'	[5]	'		'	[5]	'		'
Depreciation and amortization	'	[5]	'		'	[5]	'		'
Other operating expenses	12	[5]	'		59	[5]	'		'
Income (loss) from continuing operations	732	[5]	2,387		7,089	[5]	3,594		'
Income (loss) from discontinued operations	'	[5]	'		'	[5]	'		'
Net income (loss)	732	[5]	2,387		7,089	[5]	3,594		'
Preferred dividends	'	[5]	'		'	[5]	'		'
Income (Loss) Available to Common Stockholders	732	[5]	2,387		7,089	[5]	3,594		'
Investments	387,608	[5]	'		387,608	[5]	'		'
Cash and restricted cash	'	[5]	'		'	[5]	'		'
Derivative Assets	43,172	[5]	'		43,172	[5]	'		'
Other assets	1,306	[5]	'		1,306	[5]	'		'
Total assets	432,086	[5]	'		432,086	[5]	'		'
Debt	-376,886	[5]	'		-376,886	[5]	'		'
Derivative Liabilities	'	[5]	'		'	[5]	'		'
Other liabilities	-64	[5]	'		-64	[5]	'		'
Total liabilities	-376,950	[5]	'		-376,950	[5]	'		'
Preferred Stock	'	[5]	'		'	[5]	'		'
GAAP book value	55,136	[5]	'		55,136	[5]	'		'
Additions to investments in real estate	'		'		'	[5]	'		'
Unlevered Other	'		'		'		'		'
Interest income	4,425	[6]	2,383		15,519	[6]	7,234		'
Interest expense	'	[6]	'		'	[6]	'		'
Net interest income (expense)	4,425	[6]	2,383		15,519	[6]	7,234		'
Impairment (reversal)	-1,158	[6]	553		-10,335	[6]	58		'
Other revenues	'	[6]	'		'	[6]	'		'
Other income (loss)	1,903	[6]	2,121		3,798	[6]	1,066		'
Property operating expenses	'	[6]	'		'	[6]	'		'
Depreciation and amortization	'	[6]	'		'	[6]	'		'
Other operating expenses	52	[6]	10		290	[6]	35		'
Income (loss) from continuing operations	7,434	[6]	3,941		29,362	[6]	8,207		'
Income (loss) from discontinued operations	-6	[6]	-17		-35	[6]	-48		'
Net income (loss)	7,428	[6]	3,924		29,327	[6]	8,159		'
Preferred dividends	'	[6]	'		'	[6]	'		'
Income (Loss) Available to Common Stockholders	7,428	[6]	3,924		29,327	[6]	8,159		'
Investments	255,194	[6]	'		255,194	[6]	'		'
Cash and restricted cash	'	[6]	'		'	[6]	'		'
Derivative Assets	'	[6]	'		'	[6]	'		'
Other assets	1,893	[6]	'		1,893	[6]	'		'
Total assets	257,087	[6]	'		257,087	[6]	'		'
Debt	'	[6]	'		'	[6]	'		'
Derivative Liabilities	'	[6]	'		'	[6]	'		'
Other liabilities	-768	[6]	'		-768	[6]	'		'
Total liabilities	-768	[6]	'		-768	[6]	'		'
Preferred Stock	'	[6]	'		'	[6]	'		'
GAAP book value	256,319	[6]	'		256,319	[6]	'		'
Additions to investments in real estate	'		'		'	[6]	'		'
Local Media Group	'		'		'		'		'
Interest income	'		'		'		'		'
Interest expense	'		'		'		'		'
Net interest income (expense)	'		'		'		'		'
Impairment (reversal)	'		'		'		'		'
Other revenues	'		'		'		'		'
Other income (loss)	1,045		'		1,045		'		'
Property operating expenses	'		'		'		'		'
Depreciation and amortization	'		'		'		'		'
Other operating expenses	'		'		'		'		'
Income (loss) from continuing operations	1,045		'		1,045		'		'
Income (loss) from discontinued operations	'		'		'		'		'
Net income (loss)	1,045		'		1,045		'		'
Preferred dividends	'		'		'		'		'
Income (Loss) Available to Common Stockholders	1,045		'		1,045		'		'
Investments	57,384		'		57,384		'		'
Cash and restricted cash	'		'		'		'		'
Derivative Assets	'		'		'		'		'
Other assets	'		'		'		'		'
Total assets	57,384		'		57,384		'		'
Debt	'		'		'		'		'
Derivative Liabilities	'		'		'		'		'
Other liabilities	-185		'		-185		'		'
Total liabilities	-185		'		-185		'		'
Preferred Stock	'		'		'		'		'
GAAP book value	57,199		'		57,199		'		'
Additions to investments in real estate	'		'		'		'		'
Corporate	'		'		'		'		'
Interest income	39		32		141		135		'
Interest expense	958		954		2,864		2,857		'
Net interest income (expense)	-919		-922		-2,723		-2,722		'
Impairment (reversal)	'		'		'		'		'
Other revenues	'		'		'		'		'
Other income (loss)	'		'		'		'		'
Property operating expenses	'		'		'		'		'
Depreciation and amortization	2		'		2		'		'
Other operating expenses	8,974		9,213		35,740		23,618		'
Income (loss) from continuing operations	-9,895		-10,135		-38,465		-26,340		'
Income (loss) from discontinued operations	'		'		'		'		'
Net income (loss)	-9,895		-10,135		-38,465		-26,340		'
Preferred dividends	-1,395		-1,395		-4,185		-4,185		'
Income (Loss) Available to Common Stockholders	-11,290		-11,530		-42,650		-30,525		'
Investments	'		'		'		'		'
Cash and restricted cash	56,890		'		56,890		'		'
Derivative Assets	'		'		'		'		'
Other assets	5,117		'		5,117		'		'
Total assets	62,007		'		62,007		'		'
Debt	-51,239		'		-51,239		'		'
Derivative Liabilities	'		'		'		'		'
Other liabilities	-36,785		'		-36,785		'		'
Total liabilities	-88,024		'		-88,024		'		'
Preferred Stock	-61,583		'		-61,583		'		'
GAAP book value	-87,600		'		-87,600		'		'
Additions to investments in real estate	'		'		'		'		'
Excess MSRs and Consumer Loans	'		'		'		'		'
Interest income	'		'		'		'		'
Interest expense	'		'		'		'		'
Net interest income (expense)	'		'		'		'		'
Impairment (reversal)	'		'		'		'		'
Other revenues	'		'		'		'		'
Other income (loss)	'		'		'		'		'
Property operating expenses	'		'		'		'		'
Depreciation and amortization	'		'		'		'		'
Other operating expenses	'		'		'		'		'
Income (loss) from continuing operations	'		'		'		'		'
Income (loss) from discontinued operations	-2,380		10,991		33,378		20,755		'
Net income (loss)	-2,380		10,991		33,378		20,755		'
Preferred dividends	'		'		'		'		'
Income (Loss) Available to Common Stockholders	-2,380		10,991		33,378		20,755		'
Investments	'		'		'		'		'
Cash and restricted cash	'		'		'		'		'
Derivative Assets	'		'		'		'		'
Other assets	'		'		'		'		'
Total assets	'		'		'		'		'
Debt	'		'		'		'		'
Derivative Liabilities	'		'		'		'		'
Other liabilities	-2,380		'		-2,380		'		'
Total liabilities	-2,380		'		-2,380		'		'
Preferred Stock	'		'		'		'		'
GAAP book value	-2,380		'		-2,380		'		'
Additions to investments in real estate	'		'		'		'		'
Intersegment Elimination	'		'		'		'		'
Interest income	-1,524	[7]	-2,130	[7]	-3,455	[7]	-5,167	[7]	'
Interest expense	-1,524	[7]	-2,130	[7]	-3,455	[7]	-5,167	[7]	'
Net interest income (expense)	'	[7]	'	[7]	'	[7]	'	[7]	'
Impairment (reversal)	'	[7]	'	[7]	'	[7]	'	[7]	'
Other revenues	'	[7]	'	[7]	'	[7]	'	[7]	'
Other income (loss)	'	[7]	'	[7]	'	[7]	'	[7]	'
Property operating expenses	'	[7]	'	[7]	'	[7]	'	[7]	'
Depreciation and amortization	'	[7]	'	[7]	'	[7]	'	[7]	'
Other operating expenses	'	[7]	'	[7]	'	[7]	'	[7]	'
Income (loss) from continuing operations	'	[7]	'	[7]	'	[7]	'	[7]	'
Income (loss) from discontinued operations	'	[7]	'	[7]	'	[7]	'	[7]	'
Net income (loss)	'	[7]	'	[7]	'	[7]	'	[7]	'
Preferred dividends	'	[7]	'	[7]	'	[7]	'	[7]	'
Income (Loss) Available to Common Stockholders	'	[7]	'	[7]	'	[7]	'	[7]	'
Investments	-59,361	[7]	'		-59,361	[7]	'		'
Cash and restricted cash	'	[7]	'		'	[7]	'		'
Derivative Assets	'	[7]	'		'	[7]	'		'
Other assets	-41	[7]	'		-41	[7]	'		'
Total assets	-59,402	[7]	'		-59,402	[7]	'		'
Debt	59,361	[7]	'		59,361	[7]	'		'
Derivative Liabilities	'	[7]	'		'	[7]	'		'
Other liabilities	41	[7]	'		41	[7]	'		'
Total liabilities	59,402	[7]	'		59,402	[7]	'		'
Preferred Stock	'	[7]	'		'	[7]	'		'
GAAP book value	'	[7]	'		'	[7]	'		'
Additions to investments in real estate	'		'		'	[7]	'		'
[1]	(A) Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle's exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. Therefore, impairment recorded in excess of Newcastle's investment, which results in negative GAAP book value for a given non-recourse financing structure, cannot economically be incurred and will eventually be reversed through amortization, sales at gains, or as gains at the deconsolidation or termination of such non-recourse financing structure.
[2]	(B) Represents unlevered investments in CDO securities issued by Newcastle. This CDO has been de-consolidated as Newcastle does not have the power to direct the relevant activities of the CDO.
[3]	(C) The following table summarizes the investments and debt in the other non-recourse segment (See Schedule of Segment Other Non-Recourse Investments and Debt).
[4]	*An aggregate face amount of $67.6 million (carrying value of $59.4 million) of debt represents financing provided by the CDO segment (and included as investments in the CDO segment), which is eliminated upon consolidation.
[5]	(D) The $376.9 million of recourse debt is composed of (i) a $361.8 million repurchase agreement secured by $387.6 million carrying value of FNMA/FHLMC securities, and (ii) a $15.1 million repurchase agreement secured by $25.0 million face amount of senior notes issued by Newcastle CDO IX, which was repurchased by Newcastle and eliminated in consolidation.
[6]	(E) The following table summarizes the investments in the unlevered other segment (See Schedule of Segment Reporting Investments in Unlevered Other Segment).
[7]	(F) Represents the elimination of investments and financings and their related income and expenses between the CDO segment and other non-recourse segment as the corresponding inter-segment investments and financings are presented on a gross basis within each of these segments.

SEGMENT_REPORTING_AND_VARIABLE3

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES - Other Non-Recourse Investments and Debt (Details 1) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Investments Face Amount	$1,038,815	[1],[2]
Investments Carrying Value	2,822,641
Debt Face Amount	2,048,232
Debt Carrying Value	-2,041,851
Non-recourse Other	'
Investments Face Amount	705,687
Investments Carrying Value	688,274	[3],[4]
Debt Face Amount	631,480	[5]
Debt Carrying Value	619,376	[3],[4],[5]
Non-recourse Other | Manufactured Housing Loan Portfolio I	'
Investments Face Amount	106,304
Investments Carrying Value	91,488
Debt Face Amount	78,179	[5]
Debt Carrying Value	70,185	[5]
Non-recourse Other | Manufactured Housing Loan Portfolio II	'
Investments Face Amount	134,641
Investments Carrying Value	132,728
Debt Face Amount	99,979	[5]
Debt Carrying Value	99,568	[5]
Non-recourse Other | Subprime Mortgage Loans subject to Call Options	'
Investments Face Amount	406,217
Investments Carrying Value	406,217
Debt Face Amount	406,217	[5]
Debt Carrying Value	406,217	[5]
Non-recourse Other | Real Estate Securities	'
Investments Face Amount	58,525
Investments Carrying Value	51,209
Debt Face Amount	41,105	[5]
Debt Carrying Value	37,406	[5]
Non-recourse Other | Other Commercial Real Estate	'
Investments Face Amount	'N/A
Investments Carrying Value	6,632
Debt Face Amount	6,000	[5]
Debt Carrying Value	$6,000	[5]
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(A) Net of incurred losses
[3]	(A) Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle's exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. Therefore, impairment recorded in excess of Newcastle's investment, which results in negative GAAP book value for a given non-recourse financing structure, cannot economically be incurred and will eventually be reversed through amortization, sales at gains, or as gains at the deconsolidation or termination of such non-recourse financing structure.
[4]	(C) The following table summarizes the investments and debt in the other non-recourse segment (See Schedule of Segment Other Non-Recourse Investments and Debt).
[5]	*An aggregate face amount of $67.6 million (carrying value of $59.4 million) of debt represents financing provided by the CDO segment (and included as investments in the CDO segment), which is eliminated upon consolidation.

SEGMENT_REPORTING_AND_VARIABLE4

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES - Investments in Unlevered Other Segment (Details 2) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Integer
Investments Face Amount	$1,038,815	[1],[2]
Investments Carrying Value	2,822,641
Number of Investments	149	[1]
Unlevered Other	'
Investments Face Amount	722,066
Investments Carrying Value	255,194	[3]
Number of Investments	311
Unlevered Other | Real Estate Securities	'
Investments Face Amount	130,775
Investments Carrying Value	3,529
Number of Investments	20
Unlevered Other | Real Estate Related Loans	'
Investments Face Amount	544,714
Investments Carrying Value	210,669
Number of Investments	2
Unlevered Other | Residential Mortgage Loans	'
Investments Face Amount	46,577
Investments Carrying Value	34,917
Number of Investments	288
Unlevered Other | Other Investments	'
Investments Face Amount	'N/A
Investments Carrying Value	$6,079
Number of Investments	1
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(A) Net of incurred losses
[3]	(E) The following table summarizes the investments in the unlevered other segment (See Schedule of Segment Reporting Investments in Unlevered Other Segment).

SEGMENT_REPORTING_AND_VARIABLE5

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES - Holdings in Variable Interest Entities (Details 3) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Carrying Value of Newcastle's Investment	$5,100
VIE | CDO V	'
Gross Assets	208,193	[1]
Debt	233,972	[1],[2]
Carrying Value of Newcastle's Investment	5,058	[3]
VIE | CDO VIII Repack	'
Gross Assets	207,624	[1],[4]
Debt	207,624	[1],[2],[4]
Carrying Value of Newcastle's Investment	$103,140	[3],[4]
[1]	(A) Face amount.
[2]	(B) Newcastle CDO V includes $42.9 million face amount of debt owned by Newcastle with a carrying value of $5.1 million at September 30, 2013. CDO VIII Repack includes $116.8 million face amount of debt owned by Newcastle with a carrying value of $103.1 million at September 30, 2013.
[3]	(C) This amount represents Newcastle's maximum exposure to loss from this entity.
[4]	(D) See Notes 9 and 10 for information about the securitization that is collateralized by certain Newcastle CDO VIII Class I notes.

SEGMENT_REPORTING_AND_VARIABLE6

SEGMENT REPORTING AND VARIABLE INTEREST ENTITIES (Details Narrative) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Aggregate Face Amount of debt eliminated upon consolidation	$67,600
Carrying Value of debt eliminated upon consolidation	59,400
Debt Face Amount	2,048,232
Carrying Value of Newcastle's Investment	5,100
CDO IX Bonds Payable	'
Repurchase agreements	15,100
Assets collateralized under repurchase agreement	25,000
Debt Face Amount	280,647
CDO V | VIE	'
Debt Face Amount	42,900
Carrying Value of Newcastle's Investment	5,058	[1]
CDO VIII Repack | VIE	'
Debt Face Amount	116,800
Carrying Value of Newcastle's Investment	103,140	[1],[2]
FNMA/FHLMC Securities	'
Repurchase agreements	361,800
Assets collateralized under repurchase agreement	$387,600
[1]	(C) This amount represents Newcastle's maximum exposure to loss from this entity.
[2]	(D) See Notes 9 and 10 for information about the securitization that is collateralized by certain Newcastle CDO VIII Class I notes.

REAL_ESTATE_SECURITIES_Real_Es

REAL ESTATE SECURITIES - Real Estate Securities Holdings (Details) (USD $)

9 Months Ended

9 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Jun. 26, 2013

Sep. 30, 2013

Integer

CMBS Conduit

CMBS Single Borrower

CMBS Large Loan

REIT Debt

Non-Agency RMBS

ABS Franchise

FNMA/FHLMC Securities

FNMA/FHLMC Securities

CDOs

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Integer

Outstanding Face Amount

$1,038,815

[1],[2]

'

$247,582

$91,877

$4,458

$29,200

[2]

$101,315

[2],[3]

$8,464

[2]

$362,484

[2],[4]

$22,800

$193,435

[2],[5]

Before Impairment - Amortized Cost Basis

927,052

[1]

'

228,850

90,996

4,411

28,607

103,810

[3]

7,647

386,640

[4]

'

76,091

[5]

Other Than Temporary Impairment - Amortized Cost Basis

-180,679

[1]

'

-82,947

-12,364

'

'

-62,860

[3]

-7,647

'

[4]

'

-14,861

[5]

Amortized Cost Basis

746,373

[1],[6]

'

145,903

78,632

4,411

28,607

[6]

40,950

[3],[6]

'

[6]

386,640

[4],[6]

'

61,230

[5],[6]

Gains - Gross Unrealized

80,643

[1]

'

52,338

4,946

47

2,608

16,576

[3]

'

2,151

[4]

'

1,977

[5]

Losses - Gross Unrealized

-1,517

[1]

'

-201

'

'

'

-20

[3]

'

-1,183

[4]

'

-113

[5]

Carrying Value

$825,499

[1],[7]

$1,691,575

$198,040

[7]

$83,578

[7]

$4,458

[7]

$31,215

[7]

$57,506

[3],[7]

'

[7]

$387,608

[4],[7]

'

$63,094

[5],[7]

Number of Investments

149

[1]

'

35

15

1

5

34

[3]

1

46

[4]

'

12

[5]

Weighted Average Rating

'BBB-

[1],[8]

'

'B+

[8]

'BB

[8]

'BBB-

[8]

'BB+

[8]

'CCC

[3],[8]

'C

[8]

'AAA

[4],[8]

'

'CCC+

[5],[8]

Weighted Average Coupon

3.71%

[1]

'

5.51%

5.67%

6.06%

5.89%

1.10%

[3]

6.69%

2.82%

[4]

'

2.99%

[5]

Weighted Average Yield

5.64%

[1]

'

14.17%

4.75%

11.92%

6.86%

13.14%

[3]

0.00%

1.27%

[4]

'

7.70%

[5]

Weighted Average Maturity (Years)

'3 years 1 month 6 days

[1],[9]

'

'3 years 2 months 12 days

[9]

'2 years 8 months 12 days

[9]

'0 years 4 months 24 days

[9]

'1 year 9 months 18 days

[9]

'5 years

[3],[9]

'

'3 years 8 months 12 days

[4],[9]

'

'1 year 2 months 12 days

[5],[9]

Principal Subordination - Weighted Average

'

'

9.50%

[10]

6.30%

[10]

6.20%

[10]

'

28.00%

[10],[3]

0.00%

[10]

'

'

19.80%

[10],[5]

Principal Subordination - Weighted Average

'

'

'

'

'

'N/A

[10]

'

'

'N/A

[10],[4]

'

'

[1]

(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.

[2]

(A) Net of incurred losses

[3]

(E) Includes the retained bond with a face amount of $4.0 million and a carrying value of $1.9 million from Securitization Trust 2006 (Note 6).

[4]

(H) Amortized cost basis and carrying value include principal receivable of $4.2 million.

[5]

(F) Includes two CDO bonds issued by a third party with a carrying value of $58.0 million, four CDO bonds issued by CDO V (which has been de-consolidated) and held as investments by Newcastle with a carrying value of $5.1 million and six CDO bonds issued by C-BASS Investment Management LLC ("C-BASS") with zero carrying value.

[6]

(B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.

[7]

(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.

[8]

(B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Newcastle used an implied AAA rating for the FNMA/FHLMC securities. Ratings provided were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current.

[9]

(C) The weighted average maturity is based on the timing of expected principal reduction on the assets.

[10]

(D) Percentage of the outstanding face amount of securities and residual interests that is subordinate to Newcastle's investments.

REAL_ESTATE_SECURITIES_Holding

REAL ESTATE SECURITIES - Holdings in an Unrealized Loss Position (Details 1) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
	Integer
Outstanding Face Amount	$1,038,815	[1],[2]	'
Before Impairment - Amortized Cost Basis	927,052	[1]	'
Other Than Temporary Impairment - Amortized Cost Basis	-180,679	[1]	'
Amortized Cost Basis	746,373	[1],[3]	'
Gains - Gross Unrealized	80,643	[1]	'
Losses - Gross Unrealized	-1,517	[1]	'
Carrying Value	825,499	[1],[4]	1,691,575
Number of Investments	149	[1]	'
Weighted Average Rating	'BBB-	[1],[5]	'
Weighted Average Coupon	3.71%	[1]	'
Weighted Average Yield	5.64%	[1]	'
Weighted Average Maturity (Years)	'3 years 1 month 6 days	[1],[6]	'
Securities in an Unrealized Loss Position Less than Twelve Months	'		'
Outstanding Face Amount	223,008		'
Before Impairment - Amortized Cost Basis	226,596		'
Other Than Temporary Impairment - Amortized Cost Basis	-4,437		'
Amortized Cost Basis	222,159		'
Gains - Gross Unrealized	'		'
Losses - Gross Unrealized	-1,107		'
Carrying Value	221,052		'
Number of Investments	23		'
Weighted Average Rating	'AA-		'
Weighted Average Coupon	2.17%		'
Weighted Average Yield	3.05%		'
Weighted Average Maturity (Years)	'3 years 1 month 6 days		'
Securities in an Unrealized Loss Position Greater than Twelve Months	'		'
Outstanding Face Amount	39,196		'
Before Impairment - Amortized Cost Basis	40,725		'
Other Than Temporary Impairment - Amortized Cost Basis	'		'
Amortized Cost Basis	40,725		'
Gains - Gross Unrealized	'		'
Losses - Gross Unrealized	-410		'
Carrying Value	40,315		'
Number of Investments	4		'
Weighted Average Rating	'A+		'
Weighted Average Coupon	3.78%		'
Weighted Average Yield	2.56%		'
Weighted Average Maturity (Years)	'2 years 9 months 18 days		'
Securities in an Unrealized Loss Position	'		'
Outstanding Face Amount	262,204		'
Before Impairment - Amortized Cost Basis	267,321		'
Other Than Temporary Impairment - Amortized Cost Basis	-4,437		'
Amortized Cost Basis	262,884		'
Gains - Gross Unrealized	'		'
Losses - Gross Unrealized	-1,517		'
Carrying Value	$261,367		'
Number of Investments	27		'
Weighted Average Rating	'AA-		'
Weighted Average Coupon	2.41%		'
Weighted Average Yield	2.98%		'
Weighted Average Maturity (Years)	'3 years		'
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(A) Net of incurred losses
[3]	(B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.
[4]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[5]	(B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Newcastle used an implied AAA rating for the FNMA/FHLMC securities. Ratings provided were determined by third party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current.
[6]	(C) The weighted average maturity is based on the timing of expected principal reduction on the assets.

REAL_ESTATE_SECURITIES_Holding1

REAL ESTATE SECURITIES - Holdings in an Unrealized Loss Position and the Associated Intent to Sell (Details 2) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Amortized Cost Basis	$746,373	[1],[2]
RE Securities Intended to Sell	'
Fair Value	'
Amortized Cost Basis	'
Unrealized Credit Losses	'	[3]
Unrealized Non-Credit Losses	'N/A	[4]
RE Securities More Likely to Sell	'
Fair Value	'	[5]
Amortized Cost Basis	'	[5]
Unrealized Credit Losses	'	[3],[5]
Unrealized Non-Credit Losses	'N/A	[4],[5]
RE Securities No Intent to Sell Credit Impaired	'
Fair Value	2,139
Amortized Cost Basis	2,160
Unrealized Credit Losses	-4,359	[3]
Unrealized Non-Credit Losses	-21	[4]
RE Securities No Intent to Sell Non Credit Impaired	'
Fair Value	259,228
Amortized Cost Basis	260,724
Unrealized Credit Losses	'	[3]
Unrealized Non-Credit Losses	-1,496	[4]
Securities in an Unrealized Loss Position	'
Fair Value	261,367
Amortized Cost Basis	262,884
Unrealized Credit Losses	-4,359	[3]
Unrealized Non-Credit Losses	($1,517)	[4]
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.
[3]	(B) This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, Newcastle's management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management's expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment's effective interest rate.
[4]	(C) This amount represents unrealized losses on securities that are due to non-credit factors and is required to be recorded through other comprehensive income.
[5]	(A) Newcastle may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, Newcastle must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales.

REAL_ESTATE_SECURITIES_Credit_

REAL ESTATE SECURITIES - Credit Losses on Debt Securities (Details 3) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Real Estate Securities - Credit Losses On Debt Securities Details 3	'
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income	($4,770)
Additions for credit losses on securities for which an OTTI was not previously recognized	-1
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income	-89
Additions for credit losses on securities for which an OTTI was previously recognized without any portion of OTTI recognized in other comprehensive income	-4,317
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date	'
Reduction for securities sold during the period	4,739
Reduction for securities transferred to New Residential	'
Reduction for securities deconsolidated during the period	'
Reduction for increases in cash flows expected to be collected that are recognized over the remaining life of the security	79
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income	($4,359)

REAL_ESTATE_SECURITIES_Geograp

REAL ESTATE SECURITIES - Geographic Distribution of Collateral Securing Newcastle's CMBS and ABS (Details 4) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
CMBS Outstanding Face Amount	$343,917
CMBS Percentage	100.00%
ABS Outstanding Face Amount	109,779
ABS Percentage	100.00%
Western US	'
CMBS Outstanding Face Amount	73,846
CMBS Percentage	21.50%
ABS Outstanding Face Amount	33,394
ABS Percentage	30.40%
Northeastern US	'
CMBS Outstanding Face Amount	64,203
CMBS Percentage	18.60%
ABS Outstanding Face Amount	22,869
ABS Percentage	20.80%
Southeastern US	'
CMBS Outstanding Face Amount	67,648
CMBS Percentage	19.70%
ABS Outstanding Face Amount	21,845
ABS Percentage	19.90%
Midwestern US	'
CMBS Outstanding Face Amount	54,720
CMBS Percentage	15.90%
ABS Outstanding Face Amount	14,417
ABS Percentage	13.10%
Southwestern US	'
CMBS Outstanding Face Amount	65,889
CMBS Percentage	19.20%
ABS Outstanding Face Amount	11,036
ABS Percentage	10.10%
Other Locations	'
CMBS Outstanding Face Amount	12,719
CMBS Percentage	3.70%
ABS Outstanding Face Amount	6,218
ABS Percentage	5.70%
Foreign Locations	'
CMBS Outstanding Face Amount	4,892
CMBS Percentage	1.40%
ABS Outstanding Face Amount	'
ABS Percentage	0.00%

REAL_ESTATE_SECURITIES_Details

REAL ESTATE SECURITIES (Details Narrative) (USD $)	9 Months Ended		0 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Jun. 26, 2013	Sep. 30, 2013
			FNMA/FHLMC Securities	FNMA/FHLMC Securities
Retained bonds, within principal subordination rate, face amount from Securitization Trust 2006	$4,000		'	'
Retained interests (fair value)	1,848	[1]	'	'
CDO Bonds issued by Third party carrying value	58,000		'	'
Carrying Value of Newcastle's Investment	5,100		'	'
CDO Bonds isued by C-BASS carrying value	0		'	'
Total Outstanding face amount of fixed rate securities	400,000		'	'
Total Outstanding face amount of floating rate securities	600,000		'	'
Principal receivable	4,200		'	'
Outstanding Face Amount of securities sold to New Residential	1,038,815	[2],[3]	22,800	362,484	[3],[4]
Proceeds for sale of securities to New Residential, net of financing	'		1,200	'
Other Than Temporary Impairment Charges in period	4,400		'	'
Reduction for securities transferred to New Residential	'		'	'
OTTI charges for Newcastle owned securities at end of period	$600		'	'
[1]	(B) The retained interests include retained bonds of the securitizations. The fair value of which is estimated based on pricing models. Newcastle's residual interests were written off in 2010. The weighted average yield of the retained bonds was 23.04% as of September 30, 2013.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3]	(A) Net of incurred losses
[4]	(H) Amortized cost basis and carrying value include principal receivable of $4.2 million.

REAL_ESTATE_RELATED_LOANS_RESI2

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Loans and Other Receivables (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Integer
Number of Investments	149	[1]
Weighted Average Yield	5.64%	[1]
Weighted Average Coupon	3.71%	[1]
Weighted Average Maturity (Years)	'3 years 1 month 6 days	[1],[2]
Mezzanine Loans	'
Outstanding Face Amount	338,178
Carrying Value	268,635	[3]
Number of Investments	12
Weighted Average Yield	10.65%
Weighted Average Coupon	8.78%
Weighted Average Maturity (Years)	'1 year 9 months 18 days	[4]
Floating Rate Loans as a % of Face Amount	88.40%
Delinquent Face Amount	12,000	[5]
Corporate Bank Loans	'
Outstanding Face Amount	875,072
Carrying Value	402,139	[3]
Number of Investments	7
Weighted Average Yield	13.73%
Weighted Average Coupon	5.60%
Weighted Average Maturity (Years)	'1 year 2 months 12 days	[4]
Floating Rate Loans as a % of Face Amount	74.40%
Delinquent Face Amount	'	[5]
B-Notes	'
Outstanding Face Amount	110,461
Carrying Value	94,703	[3]
Number of Investments	4
Weighted Average Yield	10.50%
Weighted Average Coupon	6.30%
Weighted Average Maturity (Years)	'0 years 8 months 12 days	[4]
Floating Rate Loans as a % of Face Amount	79.30%
Delinquent Face Amount	'	[5]
Whole Loans	'
Outstanding Face Amount	29,820
Carrying Value	29,820	[3]
Number of Investments	2
Weighted Average Yield	4.80%
Weighted Average Coupon	3.75%
Weighted Average Maturity (Years)	'0 years 2 months 12 days	[4]
Floating Rate Loans as a % of Face Amount	97.60%
Delinquent Face Amount	'	[5]
Total Real Estate Related and Other Loans Held for Sale	'
Outstanding Face Amount	1,353,531	[6]
Carrying Value	795,297	[3],[6]
Number of Investments	25	[6]
Weighted Average Yield	11.97%
Weighted Average Coupon	6.41%
Weighted Average Maturity (Years)	'1 year 3 months 18 days	[4]
Floating Rate Loans as a % of Face Amount	78.80%
Delinquent Face Amount	12,000	[5]
Non-Securitized Manufacturing Housing Loan Portfolio I	'
Outstanding Face Amount	561
Carrying Value	145	[3]
Number of Investments	15
Weighted Average Yield	81.45%
Weighted Average Coupon	7.78%
Weighted Average Maturity (Years)	'0 years 10 months 24 days	[4]
Floating Rate Loans as a % of Face Amount	0.00%
Delinquent Face Amount	56	[5]
Non-Securitized Manufacturing Housing Loan Portfolio II	'
Outstanding Face Amount	2,677
Carrying Value	2,091	[3]
Number of Investments	100
Weighted Average Yield	15.43%
Weighted Average Coupon	10.03%
Weighted Average Maturity (Years)	'5 years 2 months 12 days	[4]
Floating Rate Loans as a % of Face Amount	9.60%
Delinquent Face Amount	181	[5]
Total Residential Mortgage Loans Held For Sale	'
Outstanding Face Amount	3,238	[7]
Carrying Value	2,236	[3],[7]
Number of Investments	115	[7]
Weighted Average Yield	19.71%	[7]
Weighted Average Coupon	9.64%	[7]
Weighted Average Maturity (Years)	'4 years 6 months	[4],[7]
Floating Rate Loans as a % of Face Amount	7.90%	[7]
Delinquent Face Amount	237	[5],[7]
Securitized Manufacturing Housing Loan Portfolio I	'
Outstanding Face Amount	106,304	[7],[8]
Carrying Value	91,488	[3],[7],[8]
Number of Investments	2,903	[7],[8]
Weighted Average Yield	9.45%	[7],[8]
Weighted Average Coupon	8.62%	[7],[8]
Weighted Average Maturity (Years)	'6 years 1 month 6 days	[4],[7],[8]
Floating Rate Loans as a % of Face Amount	0.60%	[7],[8]
Delinquent Face Amount	1,267	[5],[7],[8]
Securitized Manufacturing Housing Loan Portfolio II	'
Outstanding Face Amount	134,641	[7],[8]
Carrying Value	132,728	[3],[7],[8]
Number of Investments	4,821	[7],[8]
Weighted Average Yield	7.72%	[7],[8]
Weighted Average Coupon	9.64%	[7],[8]
Weighted Average Maturity (Years)	'4 years 10 months 24 days	[4],[7],[8]
Floating Rate Loans as a % of Face Amount	16.40%	[7],[8]
Delinquent Face Amount	2,036	[5],[7],[8]
Residential Loans	'
Outstanding Face Amount	47,114	[7],[8]
Carrying Value	36,247	[3],[7],[8]
Number of Investments	175	[7],[8]
Weighted Average Yield	7.75%	[7],[8]
Weighted Average Coupon	2.33%	[7],[8]
Weighted Average Maturity (Years)	'5 years 4 months 24 days	[4],[7],[8]
Floating Rate Loans as a % of Face Amount	100.00%	[7],[8]
Delinquent Face Amount	6,683	[5],[7],[8]
Total Residential Mortgage Loans Held For Investment	'
Outstanding Face Amount	288,059
Carrying Value	260,463	[3]
Number of Investments	7,899
Weighted Average Yield	8.33%
Weighted Average Coupon	8.07%
Weighted Average Maturity (Years)	'5 years 6 months	[4]
Floating Rate Loans as a % of Face Amount	24.20%
Delinquent Face Amount	9,986	[5]
Subprime Mortgage Loans Subject to Call	'
Outstanding Face Amount	406,217
Carrying Value	406,217	[3]
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(C) The weighted average maturity is based on the timing of expected principal reduction on the assets.
[3]	(A) Carrying value includes interest receivable of $0.1 million for the residential housing loans and principal and interest receivable of $5.0 million for the manufactured housing loans.
[4]	(B) The weighted average maturity is based on the timing of expected principal reduction on the assets.
[5]	(C) Includes loans that are 60 or more days past due (including loans that are in foreclosure, or borrower's in bankruptcy) or considered real estate owned ("REO"). As of September 30, 2013, $142.3 million face amount of real estate related and other loans was on non-accrual status.
[6]	(1) Based on the final extended maturity date of each loan investment as of September 30, 2013.
[7]	(D) Loans acquired at a discount for credit quality.
[8]	(E) The following is an aging analysis of past due residential loans held-for-investment as of September 30, 2013 (See Aging Schedule of Past Due Residential Loans Held For Investment).

REAL_ESTATE_RELATED_LOANS_RESI3

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Past Due Residential Loans HFI (Details 1) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Securitized Manufacturing Housing Loan Portfolio I	'
Aging Analysis of Past Due Residential Loans Held-For-Investment	'
30-59 Days Past Due	$675
60-89 Days Past Due	155
Over 90 Days Past Due	473
Repossessed	639
Total Past Due	1,942
Total Current Due	104,362
Total Outstanding Face Amount	106,304	[1],[2]
Securitized Manufacturing Housing Loan Portfolio II	'
Aging Analysis of Past Due Residential Loans Held-For-Investment	'
30-59 Days Past Due	929
60-89 Days Past Due	221
Over 90 Days Past Due	1,199
Repossessed	616
Total Past Due	2,965
Total Current Due	131,676
Total Outstanding Face Amount	134,641	[1],[2]
Residential Loans	'
Aging Analysis of Past Due Residential Loans Held-For-Investment	'
30-59 Days Past Due	86
60-89 Days Past Due	'
Over 90 Days Past Due	6,124
Repossessed	559
Total Past Due	6,769
Total Current Due	40,345
Total Outstanding Face Amount	$47,114	[1],[2]
[1]	(D) Loans acquired at a discount for credit quality.
[2]	(E) The following is an aging analysis of past due residential loans held-for-investment as of September 30, 2013 (See Aging Schedule of Past Due Residential Loans Held For Investment).

REAL_ESTATE_RELATED_LOANS_RESI4

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Loans By Maturity (Details 2) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Integer
Number of Investments	149	[1]
Total Real Estate Related and Other Loans Held for Sale	'
Outstanding Face Amount	1,353,531	[2]
Carrying Value	795,297	[2],[3]
Number of Investments	25	[2]
Total Real Estate Related and Other Loans Held for Sale | Delinquent Loans	'
Outstanding Face Amount	12,000	[2],[4]
Carrying Value	'	[2],[4]
Number of Investments	1	[2],[4]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period October 1, 2013 to December 2013	'
Outstanding Face Amount	88,648	[2]
Carrying Value	41,146	[2]
Number of Investments	2	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period from January 1, 2014 to December 31, 2014	'
Outstanding Face Amount	834,131	[2]
Carrying Value	384,189	[2]
Number of Investments	9	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period from January 1, 2015 to December 31, 2015	'
Outstanding Face Amount	58,199	[2]
Carrying Value	56,340	[2]
Number of Investments	5	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period from January 1, 2016 to December 31, 2016	'
Outstanding Face Amount	72,533	[2]
Carrying Value	70,911	[2]
Number of Investments	2	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period from January 1, 2017 to December 31, 2017	'
Outstanding Face Amount	94,981	[2]
Carrying Value	80,790	[2]
Number of Investments	4	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period from January 1, 2018 to December 31, 2018	'
Outstanding Face Amount	'	[2]
Carrying Value	'	[2]
Number of Investments	'	[2]
Total Real Estate Related and Other Loans Held for Sale | Maturity Period after December 31, 2018	'
Outstanding Face Amount	193,039	[2]
Carrying Value	161,921	[2]
Number of Investments	2	[2]
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(1) Based on the final extended maturity date of each loan investment as of September 30, 2013.
[3]	(A) Carrying value includes interest receivable of $0.1 million for the residential housing loans and principal and interest receivable of $5.0 million for the manufactured housing loans.
[4]	(2) Includes loans that are non-performing, in foreclosure, or under bankruptcy.

REAL_ESTATE_RELATED_LOANS_RESI5

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Activity in Carrying Value (Details 3) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012
Valuation (allowance) reversal on loans	$12,998	($4,094)	$11,473		$8,160
Real Estate Related and Other Loans Held For Sale	'	'	'		'
Carrying Value	'	'	843,132		'
Purchases / additional fundings	'	'	171,987		'
Interest accrued to principal balance	'	'	19,495		'
Principal paydowns	'	'	-247,930		'
Sales	'	'	-9,318		'
Spin-off of New Residential	'	'	'		'
Valuation (allowance) reversal on loans	'	'	10,529		'
Loss on repayment of loans held-for-sale	'	'	'		'
Accretion of loan discount and other amortization	'	'	6,689		'
Other	'	'	713		'
Carrying Value	795,297	'	795,297		'
Residential Mortgage Loans Held For Sale	'	'	'		'
Carrying Value	'	'	2,471		'
Purchases / additional fundings	'	'	'		'
Interest accrued to principal balance	'	'	'		'
Principal paydowns	'	'	-263		'
Sales	'	'	'		'
Spin-off of New Residential	'	'	'		'
Valuation (allowance) reversal on loans	'	'	42		'
Loss on repayment of loans held-for-sale	'	'	'		'
Accretion of loan discount and other amortization	'	'	'		'
Other	'	'	-14		'
Carrying Value	2,236	'	2,236		'
Residential Mortgage Loans Held For Investment	'	'	'		'
Carrying Value	'	'	292,461		'
Purchases / additional fundings	'	'	'		'
Interest accrued to principal balance	'	'	'		'
Principal paydowns	'	'	-36,294		'
Sales	'	'	'		'
Spin-off of New Residential	'	'	'		'
Valuation (allowance) reversal on loans	'	'	902	[1]	'
Loss on repayment of loans held-for-sale	'	'	'		'
Accretion of loan discount and other amortization	'	'	3,156		'
Other	'	'	238		'
Carrying Value	260,463	'	260,463		'
Reverse Mortgage Loans Held for Investment	'	'	'		'
Carrying Value	'	'	'		'
Purchases / additional fundings	'	'	35,138		'
Interest accrued to principal balance	'	'	'		'
Principal paydowns	'	'	'		'
Sales	'	'	'		'
Spin-off of New Residential	'	'	-35,865		'
Valuation (allowance) reversal on loans	'	'	'		'
Loss on repayment of loans held-for-sale	'	'	'		'
Accretion of loan discount and other amortization	'	'	727		'
Other	'	'	'		'
Carrying Value	'	'	'		'
[1]	(A) The allowance for credit losses was determined based on the guidance for loans acquired with deteriorated credit quality.

REAL_ESTATE_RELATED_LOANS_RESI6

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Loss Allowance Rollforward (Details 4) (USD $)	3 Months Ended			9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012
Valuation (allowance) reversal on loans	$12,998		($4,094)	$11,473		$8,160
Real Estate Related and Other Loans Held For Sale	'		'	'		'
Beginning Balance	'		'	-182,062		'
Charge-offs	'		'	60		'
Valuation (allowance) reversal on loans	'		'	10,529		'
Ending balance	-171,473		'	-171,473		'
Residential Mortgage Loans Held For Sale	'		'	'		'
Beginning Balance	'		'	-1,072		'
Charge-offs	'		'	144		'
Valuation (allowance) reversal on loans	'		'	42		'
Ending balance	-886		'	-886		'
Residential Mortgage Loans Held For Investment	'		'	'		'
Beginning Balance	'		'	-22,478	[1]	'
Charge-offs	'		'	3,716	[1]	'
Valuation (allowance) reversal on loans	'		'	902	[1]	'
Ending balance	($17,860)	[1]	'	($17,860)	[1]	'
[1]	(A) The allowance for credit losses was determined based on the guidance for loans acquired with deteriorated credit quality.

REAL_ESTATE_RELATED_LOANS_RESI7

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Geographic Distribution (Details 5) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Total Real Estate Related and Other Loans Held for Sale	'
Outstanding Face Amount	$1,353,531	[1]
Subtotal prior to bank loans not secured by assets	489,098
Percentage of loans	100.00%
Total Real Estate Related and Other Loans Held for Sale | Western US	'
Outstanding Face Amount	131,422
Percentage of loans	26.90%
Total Real Estate Related and Other Loans Held for Sale | Northeastern US	'
Outstanding Face Amount	68,404
Percentage of loans	14.00%
Total Real Estate Related and Other Loans Held for Sale | Southeastern US	'
Outstanding Face Amount	85,011
Percentage of loans	17.40%
Total Real Estate Related and Other Loans Held for Sale | Midwestern US	'
Outstanding Face Amount	31,633
Percentage of loans	6.50%
Total Real Estate Related and Other Loans Held for Sale | Southwestern US	'
Outstanding Face Amount	67,768
Percentage of loans	13.90%
Total Real Estate Related and Other Loans Held for Sale | Foreign Locations	'
Outstanding Face Amount	104,860
Percentage of loans	21.30%
Total Real Estate Related and Other Loans Held for Sale | Other Locations	'
Outstanding Face Amount	864,433	[2]
Total Residential Mortgage Loans	'
Outstanding Face Amount	291,297
Percentage of loans	100.00%
Total Residential Mortgage Loans | Western US	'
Outstanding Face Amount	176,513
Percentage of loans	60.60%
Total Residential Mortgage Loans | Northeastern US	'
Outstanding Face Amount	8,955
Percentage of loans	3.10%
Total Residential Mortgage Loans | Southeastern US	'
Outstanding Face Amount	63,000
Percentage of loans	21.60%
Total Residential Mortgage Loans | Midwestern US	'
Outstanding Face Amount	10,486
Percentage of loans	3.60%
Total Residential Mortgage Loans | Foreign Locations	'
Outstanding Face Amount	32,343
Percentage of loans	11.10%
Total Residential Mortgage Loans | Other Locations	'
Outstanding Face Amount	'
Percentage of loans	0.00%
[1]	(1) Based on the final extended maturity date of each loan investment as of September 30, 2013.
[2]	(A) Includes corporate bank loans which are not directly secured by real estate assets.

REAL_ESTATE_RELATED_LOANS_RESI8

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Subprime Mortgage Loans (Details 6) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Total securitized loans (unpaid principal balance)	$908,208	[1]	'
Subprime mortgage loans subject to call option	406,217		405,814
Retained interests (fair value)	1,848	[2]	'
Subprime Portfolio I	'		'
Total securitized loans (unpaid principal balance)	387,199	[1]	'
Subprime mortgage loans subject to call option	299,176		'
Retained interests (fair value)	1,848	[2]	'
Subprime Portfolio II	'		'
Total securitized loans (unpaid principal balance)	521,009	[1]	'
Subprime mortgage loans subject to call option	107,041		'
Retained interests (fair value)	'	[2]	'
[1]	(A) Average loan seasoning of 98 months and 80 months for Subprime Portfolios I and II, respectively, at September 30, 2013.
[2]	(B) The retained interests include retained bonds of the securitizations. The fair value of which is estimated based on pricing models. Newcastle's residual interests were written off in 2010. The weighted average yield of the retained bonds was 23.04% as of September 30, 2013.

REAL_ESTATE_RELATED_LOANS_RESI9

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS - Subprime Characteristics (Details 7) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Loan unpaid principal balance (UPB)	$908,208	[1]
Weighted Average Coupon	3.71%	[2]
Debt Face Amount	2,048,232
Subprime Portfolio I	'
Loan unpaid principal balance (UPB)	387,199	[1]
Weighted Average Coupon	5.89%
Delinquencies of 60 or more days (UPB)	113,349	[3]
Net credit losses for the six months ended June 30, 2013	18,759
Cumulative net credit losses	239,176
Cumulative net credit losses as a % of original UPB	15.90%
Percentage of ARM loans	51.20%	[4]
Percentage of loans with original loan-to-value ratio >90%	10.60%
Percentage of interest-only loans	27.60%
Debt Face Amount	383,199	[5]
Weighted average funding cost of debt	0.55%	[6]
Subprime Portfolio II	'
Loan unpaid principal balance (UPB)	521,009	[1]
Weighted Average Coupon	5.20%
Delinquencies of 60 or more days (UPB)	205,941	[3]
Net credit losses for the six months ended June 30, 2013	32,448
Cumulative net credit losses	289,167
Cumulative net credit losses as a % of original UPB	26.60%
Percentage of ARM loans	56.90%	[4]
Percentage of loans with original loan-to-value ratio >90%	16.80%
Percentage of interest-only loans	3.30%
Debt Face Amount	$521,009	[5]
Weighted average funding cost of debt	0.48%	[6]
[1]	(A) Average loan seasoning of 98 months and 80 months for Subprime Portfolios I and II, respectively, at September 30, 2013.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3]	(A) Delinquencies include loans 60 or more days past due, in foreclosure, under bankruptcy filing or REO.
[4]	(B) ARM loans are adjustable-rate mortgage loans. An option ARM is an adjustable-rate mortgage that provides the borrower with an option to choose from several payment amounts each month for a specified period of the loan term. None of the loans in the subprime portfolios are option ARMs.
[5]	(C) Excludes face amount of $4.0 million of retained notes for Subprime Portfolio I at September 30, 2013.
[6]	(D) Includes the effect of applicable hedges.

Recovered_Sheet1

REAL ESTATE RELATED LOANS, RESIDENTIAL MORTGAGE LOANS, SUBPRIME MORTGAGE LOANS (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Face Amount of Real Estate Related Loans on Non-Accrual Status	$142,300
Weighted Average Yield of Retained Bonds	23.04%
Retained Notes excluded from face amount of debt in Subprime Portfolio I	4,000
Affiliated Entity Gatehouse	'
Aggregate face amount of debt purchased in portfolio company managed by affiliate	466,000
Aggregate purchase price of debt purchased in portfolio company managed by affiliate	172,200
Face amount of debt in portfolio company managed by affiliate	625,600
Carrying value of debt in portfolio company managed by affiliate	243,000
Ownership percentage in affiliate's debt	52.20%
Total Residential Mortgage Loans Held For Sale	'
Interest Receivable	100
Total Residential Mortgage Loans Held For Investment	'
Interest Receivable	$5,000
Subprime Portfolio I	'
Average loan seasoning	98
Weighted average coupon rate	9.24%
Subprime Portfolio II	'
Average loan seasoning	80
Weighted average coupon rate	8.68%

INVESTMENTS_IN_CDO_SERVICING_R1

INVESTMENTS IN CDO SERVICING RIGHTS (Details Narrative) (USD $)	9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2011
Investments In Cdo Servicing Rights Details Narrative	'	'	'
Acquisition of servicing rights	'	'	$2,200
Amortization of Servicing Rights	300	300	'
Servicing Asset	$1,500	'	'

INVESTMENTS_IN_REAL_ESTATE_AND2

INVESTMENTS IN REAL ESTATE AND INTANGIBLES - Investments in Real Estate (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Gross Carrying Amount	$417,339	$172,879
Accumulated Depreciation	-8,298	-3,406
Net carrying value	409,041	169,473
Senior Living Real Estate	'	'
Gross Carrying Amount	408,694	164,359
Accumulated Depreciation	-6,285	-1,558
Net carrying value	402,409	162,801
Senior Living Real Estate | Land	'	'
Gross Carrying Amount	43,494	15,993
Accumulated Depreciation	'	'
Net carrying value	43,494	15,993
Senior Living Real Estate | Buildings	'	'
Gross Carrying Amount	341,249	144,676
Accumulated Depreciation	-4,810	-1,349
Net carrying value	336,439	143,327
Senior Living Real Estate | Building Improvements	'	'
Gross Carrying Amount	6,668	2,433
Accumulated Depreciation	-461	-124
Net carrying value	6,207	2,309
Senior Living Real Estate | Furniture, fixtures and equipment	'	'
Gross Carrying Amount	17,283	1,257
Accumulated Depreciation	-1,014	-85
Net carrying value	16,269	1,172
Other Commercial Real Estate	'	'
Gross Carrying Amount	8,645	8,520
Accumulated Depreciation	-2,013	-1,848
Net carrying value	6,632	6,672
Other Commercial Real Estate | Land	'	'
Gross Carrying Amount	1,106	1,106
Accumulated Depreciation	'	'
Net carrying value	1,106	1,106
Other Commercial Real Estate | Buildings	'	'
Gross Carrying Amount	6,588	6,588
Accumulated Depreciation	-1,312	-1,181
Net carrying value	5,276	5,407
Other Commercial Real Estate | Building Improvements	'	'
Gross Carrying Amount	951	826
Accumulated Depreciation	-701	-667
Net carrying value	250	159
Other Commercial Real Estate | Furniture, fixtures and equipment	'	'
Gross Carrying Amount	'	'
Accumulated Depreciation	'	'
Net carrying value	'	'

INVESTMENTS_IN_REAL_ESTATE_AND3

INVESTMENTS IN REAL ESTATE AND INTANGIBLES - Intangibles (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Gross Carrying Amount	$56,550	$23,311
Accumulated Amortization	-15,179	-4,225
Net Carrying Value	41,371	19,086
Senior Living Real Estate | In-Place Resident Lease Intangibles	'	'
Gross Carrying Amount	51,250	22,711
Accumulated Amortization	-14,983	-4,205
Net Carrying Value	36,267	18,506
Senior Living Real Estate | Non-Compete Intangibles	'	'
Gross Carrying Amount	1,600	600
Accumulated Amortization	-143	-20
Net Carrying Value	1,457	580
Senior Living Real Estate | Other Intangibles	'	'
Gross Carrying Amount	3,700	'
Accumulated Amortization	-53	'
Net Carrying Value	$3,647	'

INVESTMENTS_IN_REAL_ESTATE_AND4

INVESTMENTS IN REAL ESTATE AND INTANGIBLES - Intangibles (Details Narrative)	9 Months Ended
	Sep. 30, 2013
Assisted Living and Memory Care Facilities | In-Place Resident Lease Intangibles	'
Amortization period	'2 years
Independent Living Facilities | In-Place Resident Lease Intangibles	'
Amortization period	'2 years 9 months
Senior Living Real Estate | Non-Compete Intangibles	'
Amortization period	'5 years
Senior Living Real Estate | Other Intangibles	'
Amortization period	'13 years

DEBT_OBLIGATIONS_Details

DEBT OBLIGATIONS (Details) (USD $)

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Jun. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

In Thousands, unless otherwise specified

CDO VI Bonds Payable

CDO VIII Bonds Payable

CDO IX Bonds Payable

Total CDO Bonds Payable

Total CDO Bonds Payable

MH Loans Portfolio I Bonds and Notes Payable

MH Loans Portfolio II Bonds and Notes Payable

Total Other Bonds And Notes Payable

FNMA/FHLMC Securities

CDO IX Class A-2 Repurchase Agreements

Total Repurchase Agreements

BPM Senior Living Facilities

Utah Senior Living Facilities

Courtyards Senior Living Facilities

Woodside Senior Living Facilities

Florida Facilities - GE Financing

Florida Facilities - Freddie Mac Financing

Florida Facilities - Seller Financing

Glen Riddle Senior Living Facilities

Royal Palm Senior Living Facilities

Schenley Gardens Senior Living Facilities

Total Mortgage Notes Payable

Junior Subordinated Debt

Total Corporate

Debt Securities Payable

Subprime mortgage loans subject to call option

Month Issued

'

'Apr 2005

[1]

'Nov 2006

'May 2007

'

'

'Apr 2010

[2]

'May 2011

'

'Sep 2013

[3],[4]

'Sep 2013

[3]

'

'Jul 2012

'Nov 2012

'Dec 2012

'Jul 2013

'Aug 2013

'Aug 2013

'Aug 2013

'Aug 2013

'Sep 2013

'Sep 2013

'

'Mar 2006

'

'

'

Debt Face Amount

$2,048,232

$91,908

[1]

$344,953

$280,647

'

$717,508

$57,684

[2]

$99,979

$157,663

$361,836

[3],[4]

$15,050

[3]

$376,886

[3]

$107,007

$16,000

$16,125

$14,100

$93,521

$41,394

$11,432

$16,875

$14,250

$8,250

$338,954

$51,004

$51,004

$1,642,015

$406,217

[5]

Carrying Value

2,043,851

91,908

[1]

344,351

282,214

'

718,473

54,230

[2]

99,568

153,798

361,836

[3],[4]

15,050

[3]

376,886

[3]

107,007

16,000

16,125

14,100

93,521

39,678

9,432

16,875

14,250

8,250

337,238

51,239

51,239

1,637,634

406,217

[5]

Final Stated Maturity

'

'Apr 2040

[1]

'Nov 2052

'May 2052

'

'

'Jul 2035

[2]

'Dec 2033

'

'Oct 2013

[3],[4]

'Oct 2013

[3]

'

'Sep 2019

'Oct 2017

'Oct 2017

'Aug 2016

'Jul 2018

'Apr 2020

'Apr 2030

'Oct 2017

'Jul 2018

'Oct 2017

'

'Apr 2035

'

'

'

Unhedged Weighted Average Funding Cost - Rate

'

0.85%

[1],[6]

0.88%

[6]

0.56%

[6]

'

'

6.47%

[2],[6]

4.61%

[6]

'

0.38%

[3],[4],[6]

'

'

4.12%

[6]

'

'

'

'

4.00%

[6],[7]

1.68%

[6],[8]

'

'

'

'

7.57%

[6],[9]

'

'

'

Unhedged Weighted Average Funding Cost - Basis for Variable Rate

'

'

'

'

'

'

'

'

'

'

'LIBOR

[3],[6]

'

'

'LIBOR

[10],[6]

'LIBOR

[10],[6]

'LIBOR

[10],[6]

'LIBOR

[10],[6]

'

'

'LIBOR

[10],[6]

'LIBOR

[10],[6]

'LIBOR

[10],[6]

'

'

'

'

'

Unhedged Weighted Average Funding Cost - Spread on Basis for Variable Rate

'

'

'

'

'

'

'

'

'

'

1.65%

[3],[6]

'

'

3.75%

[10],[6]

3.75%

[10],[6]

3.75%

[10],[6]

3.75%

[10],[6]

'

'

3.75%

[10],[6]

3.75%

[10],[6]

3.75%

[10],[6]

'

'

'

'

'

Weighted Average Funding Cost

'

5.35%

[1],[11]

2.37%

[11]

0.53%

[11]

'

2.03%

[11]

6.47%

[11],[2]

4.61%

[11]

5.27%

[11]

0.38%

[11],[3],[4]

1.83%

[11],[3]

0.44%

[11],[3]

4.42%

[11]

5.15%

[11]

5.06%

[11]

4.58%

[11]

5.00%

[11]

4.90%

[11]

1.68%

[11]

5.01%

[11]

4.99%

[11]

5.04%

[11]

4.70%

[11]

7.39%

[11]

7.39%

[11]

2.68%

[11]

'

Weighted Average Maturity (Years)

'

'5 years 8 months 12 days

[1]

'1 year 3 months 18 days

'0 years 6 months

'1 year 7 months 6 days

'

'4 years 1 month 6 days

[2]

'3 years 9 months 18 days

'3 years 10 months 24 days

'0 years 1 month 6 days

[3],[4]

'0 years 1 month 6 days

[3]

'0 years 1 month 6 days

[3]

'5 years 7 months 6 days

'4 years

'4 years

'2 years 9 months 18 days

'4 years 9 months 18 days

'5 years 3 months 18 days

'4 years 9 months 18 days

'4 years

'4 years 9 months 18 days

'4 years

'4 years 10 months 24 days

'21 years 7 months 6 days

'21 years 7 months 6 days

'2 years 9 months 18 days

'

Face Amount of Floating Rate Debt

'

88,671

[1]

337,353

280,647

'

706,671

'

[2]

'

'

361,836

[3],[4]

15,050

[3]

376,886

[3]

'

16,000

16,125

14,100

93,521

'

11,432

16,875

14,250

8,250

190,553

'

'

1,274,110

'

Outstanding Face Amount of Collateral

'

170,592

[1],[12]

547,236

[12]

557,946

[12]

'

1,275,774

[12]

106,304

[12],[2]

134,641

[12]

240,945

[12]

362,484

[12],[3],[4]

'

[12],[3]

362,484

[12],[3]

'

'

'

'

'

'

'

'

'

[12]

'

'

'

[12]

'

[12]

1,879,203

[12]

'

Outstanding Face Amount of Collateral

'

'

'

'

'

'

'

'

'

'

'

'

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'N/A

[12]

'

'

'

'

Amortized Cost Basis of Collateral

'

90,638

[1],[12]

387,615

[12]

433,394

[12]

'

911,647

[12]

91,488

[12],[2]

132,728

[12]

224,216

[12]

386,640

[12],[3],[4]

'

[12],[3]

386,640

[12],[3]

129,767

[12]

21,059

[12]

20,179

[12]

18,667

[12]

127,966

[12]

69,145

[12]

'

[12]

21,899

[12]

18,644

[12]

16,454

[12]

443,780

[12]

'

[12]

'

[12]

1,966,283

[12]

'

Carrying Value of Collateral

'

125,464

[1],[12]

417,192

[12]

442,687

[12]

'

985,343

[12]

91,488

[12],[2]

132,728

[12]

224,216

[12]

387,608

[12],[3],[4]

'

[12],[3]

387,608

[12],[3]

129,767

[12]

21,059

[12]

20,179

[12]

18,667

[12]

127,966

[12]

69,145

[12]

'

[12]

21,899

[12]

18,644

[12]

16,454

[12]

443,780

[12]

'

[12]

'

[12]

2,040,947

[12]

'

Weighted Average Maturity (Years) Of Collateral

'

'3 years

[1]

'2 years 3 months 18 days

'2 years 6 months

'2 years 6 months

'

'6 years 1 month 6 days

[2]

'4 years 10 months 24 days

'5 years 6 months

'3 years 8 months 12 days

[3],[4]

'

'3 years 8 months 12 days

[3]

'

'

'

'

'

'

'

'

'

'

'

'

'

'3 years 1 month 6 days

'

Weighted Average Maturity (Years) Of Collateral

'

'

'

'

'

'

'

'

'

'

'

'

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'N/A

'

'

'

'

Floating Rate Face Amount of Collateral

'

42,323

[1],[12]

306,024

[12]

290,976

[12]

'

639,323

[12]

670

[12],[2]

22,104

[12]

22,774

[12]

362,484

[12],[3],[4]

'

[12],[3]

362,484

[12],[3]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

'

[12]

1,024,581

[12]

'

Aggregate Notional Amount of Current Hedges

'

$88,671

[1],[13]

$105,393

[13]

'

[13]

'

$194,064

[13]

'

[13],[2]

'

[13]

'

[13]

'

[13],[3],[4]

'

[13],[3]

'

[13],[3]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

'

[13]

$194,064

[13]

'

[1]

(E) This CDO was not in compliance with its applicable over collateralization tests as of September 30, 2013. Newcastle is not receiving cash flows from this CDO (other than senior management fees and cash flows on senior classes of bonds that were repurchased), since net interest is being used to repay debt, and expects this CDO to remain out of compliance for the foreseeable future.

[2]

(F) Excluding $20.5 million face amount of other bonds payable relating to MH loans Portfolio I sold to certain Newcastle CDOs, which were eliminated in consolidation.

[3]

(G) These repurchase agreements had $0.05 million of associated accrued interest payable at September 30, 2013. $376.9 million face amount of these repurchase agreements were renewed subsequent to September 30, 2013. The counterparties on these repurchase agreements are Bank of America ($262.4 million), Barclays ($18.5 million), Citi ($38.4 million), Goldman Sachs ($9.8 million) and Nomura ($47.8 million).

[4]

(H) Interest rates on these repurchase agreements are fixed, but will be reset on a short-term basis.

[5]

(M) Issued in April 2006 and July 2007. See Note 6 regarding the securitizations of Subprime Portfolios I and II.

[6]

(A) Weighted average, including floating and fixed rate classes and including the amortization of deferred financing costs.

[7]

(J) Upon assuming these loans, Newcastle bought down the interest rate to 4% for the first two years. The interest rate will be fixed, ranging from 5.99% to 6.76% for the remaining term.

[8]

(K) The interest rate for the first two years is based on applicable US Treasury Security rates. The interest rate for years 3 through 5 is 4.5%, 4.75% and 5.0%, respectively.

[9]

(L) LIBOR + 2.25% after April 2016.

[10]

(I) These financings are with GE and are split between two separate credit facilities. Utah, Courtyards, Glen Riddle and Schenley Gardens share one credit facility and Florida and Royal Palm share a separate credit facility. These financings have a LIBOR floor of 1%.

[11]

(B) Including the effect of applicable hedges.

[12]

(C) Excluding (i) restricted cash held in CDOs to be used for principal and interest payments of CDO debt, and (ii) operating cash in senior housing entities.

[13]

(D) Including a $88.7 million notional amount of interest rate swap agreement in CDO VI, which was an economic hedge not designated as a hedge for accounting purposes.

DEBT_OBLIGATIONS_Details_Narra

DEBT OBLIGATIONS (Details Narrative) (USD $)

3 Months Ended

9 Months Ended

9 Months Ended

1 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Jun. 30, 2013

Jun. 30, 2013

Bank of America

Barclays

Citi

Goldman Sachs

Nomura

Subsequent To Balance Sheet Date

Interest rate swaps, designated as hedges

Interest rate swaps, designated as hedges

CDO IV Bonds Payable

Total Repurchase Agreements

Utah Senior Living Facilities

Courtyards Senior Living Facilities

Junior Subordinated Debt

Florida Facilities - Freddie Mac Financing

Florida Facilities - Seller Financing

CDO IV Divestiture

CDO VIII Bonds Payable

Interest rate swaps, designated as hedges

Notional Amount of Derivatives

'

'

'

'

'

'

'

'

'

'

'

$105,393

$154,450

$88,700

'

'

'

'

'

'

'

'

Eliminated in consolidation amount of notes payable relating to MH Loan Portfolio I sold to certain Newcastle CDOs

20,500

'

20,500

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest Payable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

500

'

'

'

'

'

'

'

Repurchase agreements

'

'

'

'

'

262,400

18,500

38,400

9,800

47,800

376,900

'

'

'

'

'

'

'

'

'

'

'

LIBOR Floor

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1.00%

1.00%

'

'

'

'

'

Variable rate description

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'LIBOR+2.25% after April 2016

'4% the first two years; 5.99% to 6.76% the remaining term

'First two years based on US Treasury Security rates; Years 3 to 5: 4.5%, 4.75% and 5.0%

'

'

CDO Bonds Payable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Repurchase of CDO Bonds Payable - Face

35,900

'

35,900

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Repurchase of CDO Bonds Payable - Pay Amount

31,300

'

31,300

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Gain on extinguishment of debt

3,359

2,345

4,565

23,127

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

CDO IV

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage divestiture of CDO IV

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

100.00%

'

Face amount of collateral sold in CDO IV

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

153,400

'

Percentage of par of CDO IV sale

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

95.00%

'

Net proceeds from sale of CDO IV

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

145,200

'

Payment of outstanding third party debt in sale transaction

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

71,900

'

Gross proceeds form sale of CDO IV

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

73,100

'

Amount from sale of CDO IV received in CDO VIII

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

5,300

'

Par recovery

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

59,500

'

Percentage of Par previously repurchased at

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

52.00%

'

Proceeds on subordinated interests

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

8,000

'

Comprehensive income

32,093

328,960

166,549

525,429

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

-600

'

Net gain on sale of assets

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4,200

'

Gain on hedge termination

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

800

'

CDO VIII

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Purchase of securities - face amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

116,800

Purchase of securities - pay amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

103,100

Percentage of par of securities

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

88.30%

Repurchase agreements

$376,886

'

$376,886

'

$929,435

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$60,000

Interest rate terms of repurchase agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'LIBOR plus 150 bps

FAIR_VALUE_Fair_Value_of_Asset

FAIR VALUE - Fair Value of Assets and Liabilities (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Financial Instruments	'		'	'
Real estate securities, available-for-sale	$825,499	[1],[2]	$1,691,575	'
Real estate related loans, held-for-sale, net	795,297		843,132	'
Residential mortgage loans, held-for-investment, net	260,463		292,461	'
Residential mortgage loans, held-for-sale, net	2,236		2,471	'
Subprime mortgage loans subject to call option	406,217		405,814	'
Restricted Cash	1,827		2,064	'
Cash and Cash Equivalents	92,134		231,898	229,036
Non-hedge derivative assets	43,172		165	'
Equity method investments in Local Media Group	57,384		'	'
Other investments	25,133		24,907	'
Receivables and other assets	27,003		17,197	'
Total Assets	2,986,777		3,945,312	'
Financial Instruments	'		'	'
CDO bonds payable	718,473		1,091,354	'
Other bonds and notes payable	153,798		183,390	'
Repurchase agreements	376,886		929,435	'
Mortgage notes payable	335,238		120,525	'
Financing of subprime mortgage loans subject to call option (B)	406,217		405,814	'
Junior subordinated notes payable	51,239		51,243	'
Due to affiliates	4,911		3,620	'
Total Liabilities	2,121,802		2,872,252	'
Total Mortgage Notes Payable	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	4.58%		'	'
Weighted Average Maturity (Years)	'4 years 10 months 24 days		'	'
Junior Subordinated Debt	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	7.39%		'	'
Weighted Average Maturity (Years)	'21 years 7 months 6 days		'	'
CDO Bonds Payable	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	2.03%	[3]	'	'
Weighted Average Maturity (Years)	'1 year 7 months 6 days	[3]	'	'
Other Bonds and Notes Payable	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	5.27%	[3]	'	'
Weighted Average Maturity (Years)	'3 years 10 months 24 days	[3]	'	'
Repurchase Agreements	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	0.36%		'	'
Weighted Average Maturity (Years)	'0 years 1 month 6 days		'	'
Financing on Subprime Mortgage Loans subject to Call Options	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	9.09%	[4]	'	'
Weighted Average Maturity (Years)	'(B)	[4]	'	'
Interest Rate Swap Agreements	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	'N/A	[5],[6],[7]	'	'
Weighted Average Maturity (Years)	'(E)	[5],[6],[7]	'	'
Non Hedge Derivative Liabilities	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	'N/A	[4],[5],[6]	'	'
Weighted Average Maturity (Years)	'(C)	[4],[5],[6]	'	'
Real Estate Related and Other Loans Held For Sale	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	11.97%		'	'
Weighted Average Maturity (Years)	'1 year 3 months 18 days		'	'
Residential Mortgage Loans Held For Investment	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	8.33%		'	'
Weighted Average Maturity (Years)	'5 years 6 months		'	'
Residential Mortgage Loans Held For Sale	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	19.71%		'	'
Weighted Average Maturity (Years)	'4 years 6 months		'	'
Subprime Mortgage Loans Subject to Call	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	9.09%	[8]	'	'
Weighted Average Maturity (Years)	'(B)	[8]	'	'
Real Estate Securities Available For Sale	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	5.64%	[5]	'	'
Weighted Average Maturity (Years)	'3 years 1 month 6 days	[5]	'	'
Derivative Financial Instruments, Assets	'		'	'
Weighted Average	'		'	'
Weighted Average Yield/Funding Cost	'N/A	[4],[6]	'	'
Weighted Average Maturity (Years)	'(C)	[4],[6]	'	'
Measured on a Recurring Basis | Principal Balance	'		'	'
Financial Instruments	'		'	'
Real estate securities, available-for-sale	1,038,815	[5]	'	'
Real estate related loans, held-for-sale, net	1,353,531		'	'
Residential mortgage loans, held-for-investment, net	288,059		'	'
Residential mortgage loans, held-for-sale, net	3,238		'	'
Subprime mortgage loans subject to call option	406,217	[8]	'	'
Restricted Cash	1,827	[5]	'	'
Cash and Cash Equivalents	92,134	[5]	'	'
Non-hedge derivative assets	116,806	[4],[5],[6]	'	'
Financial Instruments	'		'	'
CDO bonds payable	717,508	[3]	'	'
Other bonds and notes payable	157,663	[3]	'	'
Repurchase agreements	376,886		'	'
Mortgage notes payable	338,954		'	'
Financing of subprime mortgage loans subject to call option (B)	406,217	[8]	'	'
Junior subordinated notes payable	51,004		'	'
Interest rate swaps, treated as hedges	105,393	[5],[6],[7]	'	'
Non-hedge derivatives	186,008	[4],[5],[6]	'	'
Measured on a Recurring Basis | Carrying Amount	'		'	'
Financial Instruments	'		'	'
Real estate securities, available-for-sale	825,499	[5]	'	'
Real estate related loans, held-for-sale, net	795,297		'	'
Residential mortgage loans, held-for-investment, net	260,463		'	'
Residential mortgage loans, held-for-sale, net	2,236		'	'
Subprime mortgage loans subject to call option	406,217	[8]	'	'
Restricted Cash	1,827	[5]	'	'
Cash and Cash Equivalents	92,134	[5]	'	'
Non-hedge derivative assets	43,172	[4],[5],[6]	'	'
Investments in real estate and intangibles, net	450,412		'	'
Equity method investments in Local Media Group	57,384		'	'
Other investments	25,133		'	'
Receivables and other assets	27,003		'	'
Total Assets	2,986,777		'	'
Financial Instruments	'		'	'
CDO bonds payable	718,473	[3]	'	'
Other bonds and notes payable	153,798	[3]	'	'
Repurchase agreements	376,886		'	'
Mortgage notes payable	335,238		'	'
Financing of subprime mortgage loans subject to call option (B)	406,217	[8]	'	'
Junior subordinated notes payable	51,239		'	'
Interest rate swaps, treated as hedges	7,416	[5],[6],[7]	'	'
Non-hedge derivatives	9,699	[4],[5],[6]	'	'
Due to affiliates	4,911		'	'
Dividends payable, accrued expenses and other liabilities	57,925		'	'
Total Liabilities	2,121,802		'	'
Measured on a Recurring Basis | Total Fair Value	'		'	'
Financial Instruments	'		'	'
Real estate securities, available-for-sale	825,499	[5]	'	'
Real estate related loans, held-for-sale, net	808,151		'	'
Residential mortgage loans, held-for-investment, net	261,994		'	'
Residential mortgage loans, held-for-sale, net	2,236		'	'
Subprime mortgage loans subject to call option	406,217	[8]	'	'
Restricted Cash	1,827	[5]	'	'
Cash and Cash Equivalents	92,134	[5]	'	'
Non-hedge derivative assets	43,172	[4],[5],[6]	'	'
Financial Instruments	'		'	'
CDO bonds payable	568,186	[3]	'	'
Other bonds and notes payable	157,916	[3]	'	'
Repurchase agreements	376,886		'	'
Mortgage notes payable	335,238		'	'
Financing of subprime mortgage loans subject to call option (B)	406,217	[8]	'	'
Junior subordinated notes payable	34,385		'	'
Interest rate swaps, treated as hedges	7,416	[5],[6],[7]	'	'
Non-hedge derivatives	$9,699	[4],[5],[6]	'	'
[1]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3]	(F) Newcastle notes that the unrealized gain on the liabilities within CDOs and other non-recourse financing structures cannot be fully realized. Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle's exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. As a result, the fair value of Newcastle's net investments in these nonrecourse financing structures is equal to the present value of their expected future net cash flows.
[4]	(C) This represents one interest rate swap agreement with a total notional balance of $186.0 million, maturing in March 2015 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI. These derivative agreements were not designated as hedges for accounting purposes as of September 30, 2013.
[5]	*Measured at fair value on a recurring basis.
[6]	(D) Newcastle's derivatives fall into two categories. As of September 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle's nonrecourse structures. An aggregate notional balance of $291.4 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs' total investments exceeded the fair value of each of the CDOs' derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $116.8 million, represent linked transactions with $116.8 face amount of underlying financed securities. Newcastle's interest rate swap counterparties include Bank of America and Credit Suisse.
[7]	(E) Represents derivative agreements (See Schedule of Fair Value Of Derivative Assets).
[8]	(B) These two items result from an option, not an obligation, to repurchase loans from Newcastle's subprime mortgage loan securitizations (Note 6), are noneconomic until such option is exercised, and are equal and offsetting.

FAIR_VALUE_Derivative_Assets_D

FAIR VALUE - Derivative Assets (Details 1) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Fair Value - Derivative Assets Details 1	'
Derivative Maturity Date	1-Apr-16
Aggregate Notional Amount	$105,393
Weighted Average Fixed Pay Rate/Cap Rate	5.04%
Aggregate Fair Value Asset/Liability	($7,416)

FAIR_VALUE_Recurring_Basis_Det

FAIR VALUE - Recurring Basis (Details 2) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'		'
Real estate securities, available-for-sale	$825,499	[1],[2]	$1,691,575
Derivative assets:	'		'
Derivative assets	43,172		165
Derivative Liabilities:	'		'
Derivative liabilities	17,115		31,576
Measured on a Recurring Basis | Level 2 Inputs	'		'
Assets:	'		'
Real estate securities, available-for-sale	418,823		'
Derivative assets:	'		'
Linked transactions at fair value	'		'
Derivative assets	'		'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	7,416		'
Interest rate swaps, not treated as hedges	9,699		'
Derivative liabilities	17,115		'
Measured on a Recurring Basis | Level 2 Inputs | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 2 Inputs | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	31,215		'
Measured on a Recurring Basis | Level 2 Inputs | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 2 Inputs | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 2 Inputs | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	387,608		'
Measured on a Recurring Basis | Level 2 Inputs | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3A Inputs	'		'
Assets:	'		'
Real estate securities, available-for-sale	399,295		'
Derivative assets:	'		'
Linked transactions at fair value	43,172		'
Derivative assets	43,172		'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	'		'
Interest rate swaps, not treated as hedges	'		'
Derivative liabilities	'		'
Measured on a Recurring Basis | Level 3A Inputs | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	283,866		'
Measured on a Recurring Basis | Level 3A Inputs | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3A Inputs | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	57,393		'
Measured on a Recurring Basis | Level 3A Inputs | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3A Inputs | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3A Inputs | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	58,036		'
Measured on a Recurring Basis | Level 3B Inputs	'		'
Assets:	'		'
Real estate securities, available-for-sale	7,381		'
Derivative assets:	'		'
Linked transactions at fair value	'		'
Derivative assets	'		'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	'		'
Interest rate swaps, not treated as hedges	'		'
Derivative liabilities	'		'
Measured on a Recurring Basis | Level 3B Inputs | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	2,210		'
Measured on a Recurring Basis | Level 3B Inputs | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3B Inputs | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	113		'
Measured on a Recurring Basis | Level 3B Inputs | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3B Inputs | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Level 3B Inputs | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	5,058		'
Measured on a Recurring Basis | Principal Balance	'		'
Assets:	'		'
Real estate securities, available-for-sale	1,038,815	[3]	'
Derivative assets:	'		'
Linked transactions at fair value	116,806		'
Derivative assets	116,806	[3],[4],[5]	'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	105,393	[3],[5],[6]	'
Interest rate swaps, not treated as hedges	186,008	[3],[4],[5]	'
Derivative liabilities	291,401		'
Measured on a Recurring Basis | Principal Balance | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	343,917		'
Measured on a Recurring Basis | Principal Balance | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	29,200		'
Measured on a Recurring Basis | Principal Balance | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	101,315		'
Measured on a Recurring Basis | Principal Balance | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	8,464		'
Measured on a Recurring Basis | Principal Balance | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	362,484		'
Measured on a Recurring Basis | Principal Balance | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	193,435		'
Measured on a Recurring Basis | Carrying Amount	'		'
Assets:	'		'
Real estate securities, available-for-sale	825,499	[3]	'
Derivative assets:	'		'
Linked transactions at fair value	43,172		'
Derivative assets	43,172	[3],[4],[5]	'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	7,416	[3],[5],[6]	'
Interest rate swaps, not treated as hedges	9,699	[3],[4],[5]	'
Derivative liabilities	17,115		'
Measured on a Recurring Basis | Carrying Amount | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	286,076		'
Measured on a Recurring Basis | Carrying Amount | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	31,215		'
Measured on a Recurring Basis | Carrying Amount | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	57,506		'
Measured on a Recurring Basis | Carrying Amount | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Carrying Amount | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	387,608		'
Measured on a Recurring Basis | Carrying Amount | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	63,094		'
Measured on a Recurring Basis | Total Fair Value	'		'
Assets:	'		'
Real estate securities, available-for-sale	825,499	[3]	'
Derivative assets:	'		'
Linked transactions at fair value	43,172		'
Derivative assets	43,172	[3],[4],[5]	'
Derivative Liabilities:	'		'
Interest rate swaps, treated as hedges	7,416	[3],[5],[6]	'
Interest rate swaps, not treated as hedges	9,699	[3],[4],[5]	'
Derivative liabilities	17,115		'
Measured on a Recurring Basis | Total Fair Value | CMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	286,076		'
Measured on a Recurring Basis | Total Fair Value | REIT Debt	'		'
Assets:	'		'
Real estate securities, available-for-sale	31,215		'
Measured on a Recurring Basis | Total Fair Value | Non-Agency RMBS	'		'
Assets:	'		'
Real estate securities, available-for-sale	57,506		'
Measured on a Recurring Basis | Total Fair Value | ABS Franchise	'		'
Assets:	'		'
Real estate securities, available-for-sale	'		'
Measured on a Recurring Basis | Total Fair Value | FNMA/FHLMC Securities	'		'
Assets:	'		'
Real estate securities, available-for-sale	387,608		'
Measured on a Recurring Basis | Total Fair Value | CDOs	'		'
Assets:	'		'
Real estate securities, available-for-sale	$63,094		'
[1]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3]	*Measured at fair value on a recurring basis.
[4]	(C) This represents one interest rate swap agreement with a total notional balance of $186.0 million, maturing in March 2015 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI. These derivative agreements were not designated as hedges for accounting purposes as of September 30, 2013.
[5]	(D) Newcastle's derivatives fall into two categories. As of September 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle's nonrecourse structures. An aggregate notional balance of $291.4 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs' total investments exceeded the fair value of each of the CDOs' derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $116.8 million, represent linked transactions with $116.8 face amount of underlying financed securities. Newcastle's interest rate swap counterparties include Bank of America and Credit Suisse.
[6]	(E) Represents derivative agreements (See Schedule of Fair Value Of Derivative Assets).

FAIR_VALUE_Changes_in_Level_3_

FAIR VALUE - Changes in Level 3 Investments (Details 3) (Measured on a Recurring Basis, USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Level 3A Inputs	'
Balance, Beginning	$725,872
Transfers	'
Transfers In	45,852	[1]
Transfers Out	-11,548	[1]
Spin-off of New Residential	-560,783	[1]
Total gains (losses)	'
Included in net income	725	[2],[3]
Included in other comprehensive income (loss)	38,221	[2]
Amortization included in interest income	23,340
Purchases, sales and settlements	'
Purchases	310,332
Proceeds from sales	-80,472
Proceeds from repayments	-49,072
Balance, Ending	442,467
Level 3B Inputs	'
Balance, Beginning	78,994
Transfers	'
Transfers In	11,548	[1]
Transfers Out	-45,852	[1]
Total gains (losses)	'
Included in net income	2,970	[2],[3]
Included in other comprehensive income (loss)	2,340	[2]
Amortization included in interest income	5,850
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-42,188
Proceeds from repayments	-6,281
Balance, Ending	7,381
CMBS Conduit | Level 3A Inputs	'
Balance, Beginning	225,575
Transfers	'
Transfers In	12,152	[1]
Transfers Out	-3,291	[1]
Spin-off of New Residential	'	[1]
Total gains (losses)	'
Included in net income	279	[2],[3]
Included in other comprehensive income (loss)	10,836	[2]
Amortization included in interest income	6,746
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-51,708
Proceeds from repayments	-4,758
Balance, Ending	195,831
CMBS Conduit | Level 3B Inputs	'
Balance, Beginning	29,194
Transfers	'
Transfers In	3,291	[1]
Transfers Out	-12,152	[1]
Total gains (losses)	'
Included in net income	69	[2],[3]
Included in other comprehensive income (loss)	3,607	[2]
Amortization included in interest income	1,593
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-21,868
Proceeds from repayments	-1,524
Balance, Ending	2,210
CMBS Other | Level 3A Inputs	'
Balance, Beginning	104,451
Transfers	'
Transfers In	11,803	[1]
Transfers Out	-8,257	[1]
Spin-off of New Residential	'	[1]
Total gains (losses)	'
Included in net income	-165	[2],[3]
Included in other comprehensive income (loss)	2,128	[2]
Amortization included in interest income	516
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-16,902
Proceeds from repayments	-5,539
Balance, Ending	88,035
CMBS Other | Level 3B Inputs	'
Balance, Beginning	17,171
Transfers	'
Transfers In	8,257	[1]
Transfers Out	-11,803	[1]
Total gains (losses)	'
Included in net income	-159	[2],[3]
Included in other comprehensive income (loss)	1,135	[2]
Amortization included in interest income	240
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-14,841
Proceeds from repayments	'
Balance, Ending	'
Non-Agency RMBS | Level 3A Inputs	'
Balance, Beginning	330,021
Transfers	'
Transfers In	21,897	[1]
Transfers Out	'	[1]
Spin-off of New Residential	-560,783	[1]
Total gains (losses)	'
Included in net income	-683	[2],[3]
Included in other comprehensive income (loss)	26,542	[2]
Amortization included in interest income	12,375
Purchases, sales and settlements	'
Purchases	267,160
Proceeds from sales	-6,127
Proceeds from repayments	-33,009
Balance, Ending	57,393
Non-Agency RMBS | Level 3B Inputs	'
Balance, Beginning	25,954
Transfers	'
Transfers In	'	[1]
Transfers Out	-21,897	[1]
Total gains (losses)	'
Included in net income	3,055	[2],[3]
Included in other comprehensive income (loss)	-2,137	[2]
Amortization included in interest income	3,345
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-5,054
Proceeds from repayments	-3,153
Balance, Ending	113
ABS Franchise | Level 3A Inputs	'
Balance, Beginning	798
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Spin-off of New Residential	'	[1]
Total gains (losses)	'
Included in net income	-87	[2],[3]
Included in other comprehensive income (loss)	296	[2]
Amortization included in interest income	'
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-934
Proceeds from repayments	-73
Balance, Ending	'
ABS Franchise | Level 3B Inputs	'
Balance, Beginning	677
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Total gains (losses)	'
Included in net income	5	[2],[3]
Included in other comprehensive income (loss)	-223	[2]
Amortization included in interest income	307
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-425
Proceeds from repayments	-341
Balance, Ending	'
Equity/Other Securities | Level 3A Inputs	'
Balance, Beginning	65,027
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Spin-off of New Residential	'	[1]
Total gains (losses)	'
Included in net income	1,381	[2],[3]
Included in other comprehensive income (loss)	-1,581	[2]
Amortization included in interest income	3,703
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	-4,801
Proceeds from repayments	-5,693
Balance, Ending	58,036
Equity/Other Securities | Level 3B Inputs	'
Balance, Beginning	5,998
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Total gains (losses)	'
Included in net income	'	[2],[3]
Included in other comprehensive income (loss)	-42	[2]
Amortization included in interest income	365
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	'
Proceeds from repayments	-1,263
Balance, Ending	5,058
Linked Transactions | Level 3A Inputs	'
Balance, Beginning	'
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Spin-off of New Residential	'	[1]
Total gains (losses)	'
Included in net income	'	[2],[3]
Included in other comprehensive income (loss)	'	[2]
Amortization included in interest income	'
Purchases, sales and settlements	'
Purchases	43,172
Proceeds from sales	'
Proceeds from repayments	'
Balance, Ending	43,172
Linked Transactions | Level 3B Inputs	'
Balance, Beginning	'
Transfers	'
Transfers In	'	[1]
Transfers Out	'	[1]
Total gains (losses)	'
Included in net income	'	[2],[3]
Included in other comprehensive income (loss)	'	[2]
Amortization included in interest income	'
Purchases, sales and settlements	'
Purchases	'
Proceeds from sales	'
Proceeds from repayments	'
Balance, Ending	'
[1]	(A) Transfers are assumed to occur at the beginning of the quarter.
[2]	(B) None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date.
[3]	(C) These gains (losses) are recorded in the following line items in the consolidated statements of income (See Schedule of Gains Losses on Fair Value of RE Securities).

FAIR_VALUE_Gains_Losses_on_RE_

FAIR VALUE - Gains Losses on RE Securities (Details 4) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012
Gain (loss) on settlement of investments, net	$1,388	$229,239	$6,451		$232,885
OTTI	'	236	-4,405		-16,506
Measured on a Recurring Basis | Level 3A Inputs	'	'	'		'
Gain (loss) on settlement of investments, net	'	'	1,531		'
Other income (loss), net	'	'	'		'
OTTI	'	'	-806		'
Total	'	'	725	[1],[2]	'
Gain (loss) on sale of investments, net, from investments transferred into Level 3 during the period	'	'	'		'
Measured on a Recurring Basis | Level 3B Inputs	'	'	'		'
Gain (loss) on settlement of investments, net	'	'	3,586		'
Other income (loss), net	'	'	'		'
OTTI	'	'	-616		'
Total	'	'	2,970	[1],[2]	'
Gain (loss) on sale of investments, net, from investments transferred into Level 3 during the period	'	'	'		'
[1]	(B) None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date.
[2]	(C) These gains (losses) are recorded in the following line items in the consolidated statements of income (See Schedule of Gains Losses on Fair Value of RE Securities).

FAIR_VALUE_Securities_Valuatio

FAIR VALUE - Securities Valuation Methodology (Details 5) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Jun. 26, 2013

Sep. 30, 2013

In Thousands, unless otherwise specified

CMBS

REIT Debt

Non-Agency RMBS

ABS Franchise

FNMA/FHLMC Securities

FNMA/FHLMC Securities

CDOs

Outstanding Face Amount

$1,038,815

[1],[2]

'

$343,917

[2]

$29,200

[2]

$101,315

[2],[3]

$8,464

[2]

$362,484

[2],[4]

$22,800

$193,435

[2],[5]

Amortized Cost Basis

746,373

[1],[6]

'

228,946

[6]

28,607

[6]

40,950

[3],[6]

'

[6]

386,640

[4],[6]

'

61,230

[5],[6]

Multiple Quotes Fair Value (C)

717,324

[7]

'

241,108

[7]

31,215

[7]

57,393

[7]

'

[7]

387,608

[7]

'

'

[7]

Single Quote Fair Value (D)

100,794

[8]

'

42,758

[8]

'

[8]

'

[8]

'

[8]

'

[8]

'

58,036

[8]

Internal Pricing Models Fair Value (E)

7,381

[9]

'

2,210

[9]

'

[9]

113

[9]

'

[9]

'

[9]

'

5,058

[9]

Total Fair Value

$825,499

[1],[10]

$1,691,575

$286,076

$31,215

[10]

$57,506

[10],[3]

'

[10]

$387,608

[10],[4]

'

$63,094

[10],[5]

[1]

(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.

[2]

(A) Net of incurred losses

[3]

(E) Includes the retained bond with a face amount of $4.0 million and a carrying value of $1.9 million from Securitization Trust 2006 (Note 6).

[4]

(H) Amortized cost basis and carrying value include principal receivable of $4.2 million.

[5]

(F) Includes two CDO bonds issued by a third party with a carrying value of $58.0 million, four CDO bonds issued by CDO V (which has been de-consolidated) and held as investments by Newcastle with a carrying value of $5.1 million and six CDO bonds issued by C-BASS Investment Management LLC ("C-BASS") with zero carrying value.

[6]

(B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.

[7]

(C) Management generally obtained pricing service quotations or broker quotations from at least two sources, one of which was generally the seller (the party that sold us the security). Management selected one of the quotes received as being most representative of fair value and did not use an average of the quotes. Even if Newcastle receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes Newcastle receives. Management believes using an average of the quotes in these cases would generally not represent the fair value of the asset. Based on Newcastle's own fair value analysis using internal models, management selects one of the quotes which are believed to more accurately reflect fair value. Newcastle never adjusts quotes received.

[8]

(D) Management was unable to obtain quotations from more than one source on these securities. The one source was generally the seller (the party that sold us the security) or a pricing service.

[9]

(E) Securities whose fair value was estimated based on internal pricing models are further detailed as follows (See Securities valued based on internal pricing models).

[10]

(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.

FAIR_VALUE_Internal_Pricing_Mo

FAIR VALUE - Internal Pricing Models (Details 6) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Amortized Cost Basis	$746,373	[1],[2]
Gains - Gross Unrealized	80,643	[1]
Measured on a Recurring Basis | Internal Pricing Models	'
Amortized Cost Basis	3,878
Fair Value	7,381
Impairment recorded in current period	76
Gains - Gross Unrealized	3,503
Measured on a Recurring Basis | Internal Pricing Models | CMBS Conduit	'
Amortized Cost Basis	797
Fair Value	2,210
Impairment recorded in current period	76
Gains - Gross Unrealized	1,413
Weighted Average - Discount Rate	8.00%
Weighted Average - Prepayment Speed	'N/A	[3]
Cumulative Default Rate	24.50%
Loss Severity	47.10%
Measured on a Recurring Basis | Internal Pricing Models | Non-Agency RMBS	'
Amortized Cost Basis	'
Fair Value	113
Impairment recorded in current period	'
Gains - Gross Unrealized	113
Weighted Average - Discount Rate	8.00%
Weighted Average - Prepayment Speed	2.00%	[3]
Cumulative Default Rate	8.00%
Loss Severity	75.00%
Measured on a Recurring Basis | Internal Pricing Models | CDOs	'
Amortized Cost Basis	3,081
Fair Value	5,058
Impairment recorded in current period	'
Gains - Gross Unrealized	$1,977
Weighted Average - Discount Rate	17.70%
Weighted Average - Prepayment Speed	4.50%	[3]
Cumulative Default Rate	17.50%
Loss Severity	73.50%
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended September 30, 2013.
[3]	(F) Projected annualized average prepayment rate.

FAIR_VALUE_Loan_Valuation_Deta

FAIR VALUE - Loan Valuation (Details 7) (USD $)	3 Months Ended			9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Outstanding Face Amount	$1,038,815	[1],[2]	'	$1,038,815	[1],[2]	'	'
Real estate related loans and other loans, held-for-sale, net	795,297		'	795,297		'	843,132
Residential mortgage loans, held-for-sale, net	2,236		'	2,236		'	2,471
Valuation Allowance/(Reversal) In Current Year	-12,998		4,094	-11,473		-8,160	'
Mezzanine Loans	'		'	'		'	'
Outstanding Face Amount	338,178		'	338,178		'	'
Real estate related loans and other loans, held-for-sale, net	268,635		'	268,635		'	'
Fair Value	272,735		'	272,735		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-13,611		'	'
Discount Rate Input Range	'		'	'5.0%-25.3%		'	'
Loss Severity Input Range	'		'	'0.0%-100.0%		'	'
Discount Rate Weighted Average	'		'	10.70%		'	'
Loss Severity Weighted Average	'		'	5.40%		'	'
Corporate Bank Loans	'		'	'		'	'
Outstanding Face Amount	875,072		'	875,072		'	'
Real estate related loans and other loans, held-for-sale, net	402,139		'	402,139		'	'
Fair Value	409,354		'	409,354		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-3,110		'	'
Discount Rate Input Range	'		'	'5.9%-33.3%		'	'
Loss Severity Input Range	'		'	'0.0%-100.0%		'	'
Discount Rate Weighted Average	'		'	13.70%		'	'
Loss Severity Weighted Average	'		'	45.10%	[3]	'	'
B-Notes	'		'	'		'	'
Outstanding Face Amount	110,461		'	110,461		'	'
Real estate related loans and other loans, held-for-sale, net	94,703		'	94,703		'	'
Fair Value	96,179		'	96,179		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	6,192		'	'
Discount Rate Input Range	'		'	'6.0%-15.0%		'	'
Loss Severity Input Range	'		'	'0.0%-47.0%		'	'
Discount Rate Weighted Average	'		'	10.50%		'	'
Loss Severity Weighted Average	'		'	9.70%		'	'
Whole Loans	'		'	'		'	'
Outstanding Face Amount	29,820		'	29,820		'	'
Real estate related loans and other loans, held-for-sale, net	29,820		'	29,820		'	'
Fair Value	29,883		'	29,883		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	'		'	'
Discount Rate Input Range	'		'	'4.8%-6.9%		'	'
Loss Severity Input Range	'		'	'0.0%-15.5%		'	'
Discount Rate Weighted Average	'		'	4.80%		'	'
Loss Severity Weighted Average	'		'	15.10%		'	'
Total Real Estate Related and Other Loans Held for Sale	'		'	'		'	'
Outstanding Face Amount	1,353,531		'	1,353,531		'	'
Real estate related loans and other loans, held-for-sale, net	795,297		'	795,297		'	'
Fair Value	808,151		'	808,151		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-10,529		'	'
Non-Securitized Manufacturing Housing Loan Portfolio I	'		'	'		'	'
Outstanding Face Amount	561		'	561		'	'
Real estate related loans and other loans, held-for-sale, net	145		'	145		'	'
Fair Value	145		'	145		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-9		'	'
Discount Rate Weighted Average	'		'	81.50%		'	'
Prepayment Speed Weighted Average	'		'	5.00%		'	'
Cumulative Default Rate Weighted Average	'		'	11.60%		'	'
Loss Severity Weighted Average	'		'	65.00%		'	'
Non-Securitized Manufacturing Housing Loan Portfolio II	'		'	'		'	'
Outstanding Face Amount	2,677		'	2,677		'	'
Real estate related loans and other loans, held-for-sale, net	2,091		'	2,091		'	'
Fair Value	2,091		'	2,091		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-33		'	'
Discount Rate Weighted Average	'		'	15.40%		'	'
Prepayment Speed Weighted Average	'		'	5.00%		'	'
Cumulative Default Rate Weighted Average	'		'	3.50%		'	'
Loss Severity Weighted Average	'		'	60.00%		'	'
Total Residential Mortgage Loans Held For Sale	'		'	'		'	'
Outstanding Face Amount	3,238		'	3,238		'	'
Real estate related loans and other loans, held-for-sale, net	2,236		'	2,236		'	'
Fair Value	2,236		'	2,236		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-42		'	'
Securitized Manufacturing Housing Loan Portfolio I	'		'	'		'	'
Outstanding Face Amount	106,304		'	106,304		'	'
Residential mortgage loans, held-for-sale, net	91,488		'	91,488		'	'
Fair Value	93,533		'	93,533		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-1,778		'	'
Discount Rate Weighted Average	'		'	9.50%		'	'
Prepayment Speed Weighted Average	'		'	6.00%		'	'
Cumulative Default Rate Weighted Average	'		'	3.00%		'	'
Loss Severity Weighted Average	'		'	65.00%		'	'
Securitized Manufacturing Housing Loan Portfolio II	'		'	'		'	'
Outstanding Face Amount	134,641		'	134,641		'	'
Residential mortgage loans, held-for-sale, net	132,728		'	132,728		'	'
Fair Value	128,623		'	128,623		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	1,740		'	'
Discount Rate Weighted Average	'		'	7.70%		'	'
Prepayment Speed Weighted Average	'		'	7.00%		'	'
Cumulative Default Rate Weighted Average	'		'	3.50%		'	'
Loss Severity Weighted Average	'		'	60.00%		'	'
Residential Loans	'		'	'		'	'
Outstanding Face Amount	47,114		'	47,114		'	'
Residential mortgage loans, held-for-sale, net	36,247		'	36,247		'	'
Fair Value	39,838		'	39,838		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	-864		'	'
Discount Rate Weighted Average	'		'	7.80%		'	'
Prepayment Speed Weighted Average	'		'	4.60%		'	'
Cumulative Default Rate Weighted Average	'		'	2.80%		'	'
Loss Severity Weighted Average	'		'	46.00%		'	'
Total Residential Mortgage Loans Held For Investment	'		'	'		'	'
Outstanding Face Amount	288,059		'	288,059		'	'
Residential mortgage loans, held-for-sale, net	260,463		'	260,463		'	'
Fair Value	261,994		'	261,994		'	'
Valuation Allowance/(Reversal) In Current Year	'		'	($902)		'	'
[1]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[2]	(A) Net of incurred losses
[3]	(A) Primarily driven by the 60% severity of the GateHouse loans (see Note 2).

FAIR_VALUE_Fair_Value_of_Deriv

FAIR VALUE - Fair Value of Derivatives (Details 8) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value of Derivatives	($7,416)	'
Linked Transactions at fair value	'	'
Fair Value of Derivatives	43,172	'
Fair Value of Derivatives, Balance Sheet Location	'Derivative Assets	'Derivative Assets
Interest rate caps, not designated as hedges	'	'
Fair Value of Derivatives	'	165
Fair Value of Derivatives, Balance Sheet Location	'Derivative Assets	'Derivative Assets
Total Asset Derivatives	'	'
Fair Value of Derivatives	43,172	165
Interest rate swaps, designated as hedges	'	'
Fair Value of Derivatives	7,416	12,175
Fair Value of Derivatives, Balance Sheet Location	'Derivative Liabilities	'Derivative Liabilities
Interest rate swaps, not designated as hedges	'	'
Fair Value of Derivatives	9,699	19,401
Fair Value of Derivatives, Balance Sheet Location	'Derivative Liabilities	'Derivative Liabilities
Total Liability Derivatives	'	'
Fair Value of Derivatives	$17,115	$31,576

FAIR_VALUE_Outstanding_Derivat

FAIR VALUE - Outstanding Derivatives (Details 9) (USD $)	9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Amount of (loss) recognized in OCI on effective portion	($7,331)		($12,050)
Deferred hedge gain (loss) related to anticipated financings, which have subsequently occurred, net of amortization	187		237
Deferred hedge gain (loss) related to dedesignation, net of amortization	-163		-210
Interest rate swaps, designated as hedges	'		'
Notional Amount of Derivatives	105,393		154,450
Deferred Hedge	'		'
Expected reclassification of hedges from AOCI into earnings over the next twelve months	8		4
Current Hedge	'		'
Expected reclassification of hedges from AOCI into earnings over the next twelve months	-4,547		-6,259
Interest rate swaps, not designated as hedges	'		'
Notional Amount of Derivatives	186,008		294,203
Interest rate caps, not designated as hedges	'		'
Notional Amount of Derivatives	'		23,400
Linked Transactions at fair value	'		'
Notional Amount of Derivatives	$116,806	[1]	'	[1]
[1]	(A) This represents the current face amount of the underlying financed securities comprising linked transactions.

FAIR_VALUE_Derivative_Gain_Los

FAIR VALUE - Derivative Gain Loss (Details 10) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Cash flow hedges	'	'	'	'
Gain (loss) on the ineffective portion	'	'	'	$483
Gain (loss) immediately recognized at dedesignation	'	'	'	-7,036
Non-hedge derivatives gain (loss)	1,894	1,975	7,302	6,052
Cash Flow Hedges	'	'	'	'
Cash flow hedges	'	'	'	'
Amount of gain (loss) reclassified from AOCI into income, related to effective portion	-1,280	'	'	'
Deferred hedge gain reclassified from AOCI into income, related to anticipated financings	17	'	'	'
Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges	-16	'	'	'
Cash Flow Hedges | Other Income (Loss)	'	'	'	'
Cash flow hedges	'	'	'	'
Gain (loss) on the ineffective portion	'	'	'	483
Cash Flow Hedges | Gain (Loss) on Sale of Investments and Other Income (Loss)	'	'	'	'
Cash flow hedges	'	'	'	'
Gain (loss) immediately recognized at dedesignation	'	'	'	-7,036
Cash Flow Hedges | Interest Expense	'	'	'	'
Cash flow hedges	'	'	'	'
Amount of gain (loss) reclassified from AOCI into income, related to effective portion	'	-7,830	-4,848	-28,766
Deferred hedge gain reclassified from AOCI into income, related to anticipated financings	'	15	50	45
Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges	'	307	-48	1,205
Non-Hedge Derivatives | Other Income (Loss)	'	'	'	'
Cash flow hedges	'	'	'	'
Non-hedge derivatives gain (loss)	1,894	1,975	7,302	6,052
Non-Hedge Derivatives | Interest Expense	'	'	'	'
Cash flow hedges	'	'	'	'
Non-hedge derivatives gain (loss)	($110)	'	($118)	'

FAIR_VALUE_Net_Assets_of_Linke

FAIR VALUE - Net Assets of Linked Transactions (Details 11) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Real estate securities, available-for-sale	$825,499	[1],[2]	$1,691,575
Repurchase agreements	-376,886		-929,435
Linked Transactions at fair value	'		'
Real estate securities, available-for-sale	103,140	[3]	'
Repurchase agreements	-59,968	[4]	'
Net Assets recognized as linked transactions	$43,172		'
[1]	(A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities.
[2]	(G) The total outstanding face amount was $0.4 billion for fixed rate securities and $0.6 billion for floating rate securities.
[3]	(A) Represents the fair value of the securities accounted for as part of linked transactions at September 30, 2013.
[4]	(B) Represents the carrying value, which approximates fair value, of the repurchase agreements accounted for as part of linked transactions at September 30, 2013.

FAIR_VALUE_Details_Narrative

FAIR VALUE (Details Narrative) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Interest Rate Swap Asset	'
Notional Balance of Derivative Assets	$186,000
Linked Transaction	'
Notional Balance of Derivative Assets	116,800
Interest Rate Swap Liabilities	'
Notional Balance of Derivative Assets	$291,400

EQUITY_AND_EARNINGS_PER_SHARE_1

EQUITY AND EARNINGS PER SHARE - Outstanding Options (Details) (USD $)	Sep. 30, 2013
Stock Options outstanding	25,052,062
Strike Price	$4.52
Options - Strike Price 10.18	'
Stock Options outstanding	304,604
Strike Price	$10.18
Maturity Date	1-Dec-13
Options - Strike Price 11.74	'
Stock Options outstanding	328,350
Strike Price	$11.74
Maturity Date	9-Jan-14
Options - Strike Price 11.49	'
Stock Options outstanding	343,275
Strike Price	$11.49
Maturity Date	25-May-14
Options - Strike Price 14.05	'
Stock Options outstanding	162,500
Strike Price	$14.05
Maturity Date	22-Nov-14
Options - Strike Price 13.24	'
Stock Options outstanding	330,000
Strike Price	$13.24
Maturity Date	12-Jan-15
Options - Strike Price 13.83	'
Stock Options outstanding	2,000
Strike Price	$13.83
Maturity Date	1-Aug-15
Options - Strike Price 13.16	'
Stock Options outstanding	170,000
Strike Price	$13.16
Maturity Date	1-Nov-16
Options - Strike Price 14.01	'
Stock Options outstanding	242,000
Strike Price	$14.01
Maturity Date	23-Jan-17
Options - Strike Price 12.40	'
Stock Options outstanding	456,000
Strike Price	$12.40
Maturity Date	11-Apr-17
Options - Strike Price 2.72	'
Stock Options outstanding	1,580,166
Strike Price	$2.72
Maturity Date	29-Mar-21
Options - Strike Price 2.07	'
Stock Options outstanding	2,424,833
Strike Price	$2.07
Maturity Date	27-Sep-21
Options - Strike Price 2.28	'
Stock Options outstanding	2,000
Strike Price	$2.28
Maturity Date	20-Dec-21
Options - Strike Price 2.82	'
Stock Options outstanding	1,867,167
Strike Price	$2.82
Maturity Date	3-Apr-22
Options - Strike Price 3.05	'
Stock Options outstanding	2,265,000
Strike Price	$3.05
Maturity Date	21-May-22
Options - Strike Price 3.04	'
Stock Options outstanding	2,499,167
Strike Price	$3.04
Maturity Date	31-Jul-22
Options - Strike Price 4.24	'
Stock Options outstanding	5,750,000
Strike Price	$4.24
Maturity Date	11-Jan-23
Options - Strike Price 4.75	'
Stock Options outstanding	2,300,000
Strike Price	$4.75
Maturity Date	15-Feb-23
Options - Strike Price 4.97	'
Stock Options outstanding	4,025,000
Strike Price	$4.97
Maturity Date	17-Jun-23

EQUITY_AND_EARNINGS_PER_SHARE_2

EQUITY AND EARNINGS PER SHARE - Outstanding Options Summary (Details 1)	Sep. 30, 2013
Stock Options outstanding	25,052,062
Manager	'
Stock Options outstanding	21,918,795
Manager's Employees	'
Stock Options outstanding	3,129,267
Directors	'
Stock Options outstanding	4,000
Total Affiliates	'
Stock Options outstanding	25,052,062

EQUITY_AND_EARNINGS_PER_SHARE_3

EQUITY AND EARNINGS PER SHARE (Details Narrative) (USD $)

1 Months Ended

3 Months Ended

9 Months Ended

9 Months Ended

0 Months Ended

1 Months Ended

9 Months Ended

In Thousands, except Share data, unless otherwise specified

Jun. 30, 2013

Feb. 28, 2013

Jan. 31, 2013

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Jun. 05, 2013

Dec. 31, 2012

Sep. 30, 2013

15-May-13

Jun. 30, 2013

Feb. 28, 2013

Jan. 31, 2013

Sep. 30, 2013

Stock Options

Manager

Manager

Manager

Manager

Former Newcastle CEO

Common stock, par value

'

'

'

$0.01

'

$0.01

'

$0.01

$0.01

'

'

'

'

'

'

Common stock, shares authorized

'

'

'

1,000,000,000

'

1,000,000,000

'

500,000,000

500,000,000

'

'

'

'

'

'

Preferred stock, par value

'

'

'

$0.01

'

$0.01

'

$0.01

$0.01

'

'

'

'

'

'

Preferred stock, shares authorized

'

'

'

100,000,000

'

100,000,000

'

100,000,000

100,000,000

'

'

'

'

'

'

Issuance of Common Stock

$197,600

$237,400

$526,200

'

'

$961,569

'

'

'

'

'

'

'

'

'

Issuance of Common Stock, shares

40,250,000

23,000,000

57,500,000

'

'

120,963,336

'

'

'

'

'

750,000

191,000

213,900

'

Share price

$4.92

$10.34

$9.35

'

'

'

'

'

'

'

'

$4.97

$10.48

$9.35

'

Options to purchase shares of common stock granted during the period

'

'

'

'

'

'

'

'

'

'

'

4,025,000

2,300,000

5,750,000

'

Fair value of options granted

'

'

'

'

'

'

'

'

'

'

'

$3,800

$8,400

$18,000

'

Exercise price of options granted

'

'

'

'

'

'

'

'

'

'

'

$4.97

$10.48

$9.35

'

Risk free rate in valuing options granted to manager

'

'

'

'

'

'

'

'

'

'

'

2.50%

2.10%

2.00%

'

Dividend yield in valuing options granted to manager

'

'

'

'

'

'

'

'

'

'

'

8.80%

7.80%

8.80%

'

Volatility in valuing options granted to manager

'

'

'

'

'

'

'

'

'

'

'

36.90%

55.50%

56.20%

'

Expected term in valuing options granted to manager

'

'

'

'

'

'

'

'

'

'

'

'10 years

'10 years

'10 years

'

Stock options converted in spin-off

'

'

'

'

'

'

'

'

'

'

21,500,000

'

'

'

'

Annual director awards granted, per director

'

'

'

'

'

$50,000

'

'

'

'

'

'

'

'

'

Annual director awards granted, per director, shares

'

'

'

'

'

9,025

'

'

'

'

'

'

'

'

'

Options exercised

'

'

'

'

'

'

'

'

'

'

'

'

'

'

307,833

Weighted average exercise price

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$2.56

Shares issued in option exercise

'

'

'

'

'

'

'

'

'

'

'

'

'

'

162,896

Aggregate intrinsic value of options net exercise price

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$900

Unvested Options forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

192,167

Vested Options forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

2,170

Dilutive Common Stock Equivalents

'

'

'

7,654,026

2,191,363

6,264,696

1,249,474

'

'

2,388,729

'

'

'

'

'

COMMMITMENTS_AND_CONTINGENCIES

COMMMITMENTS AND CONTINGENCIES (Details Narrative) (Affiliated Entity Gatehouse, USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Affiliated Entity Gatehouse	'
Percentage of par offered to GateHouse creditors for conversion of debt	40.00%
Additional debt facility to be raised	$150,000
Carrying value of creditor debt positions converted	$369,900

GAIN_LOSSES_ON_SETTLEMENT_OF_I

GAIN (LOSSES) ON SETTLEMENT OF INVESTMENTS, NET AND OTHER INCOME (LOSS), NET (DETAILS) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Gain (loss) on settlement of investments, net	'	'	'	'
Gain on settlement of real estate securities	$1,381	$4,930	$9,590	$14,615
Loss on settlement of real estate securities	'	-8	-3,592	-4,433
Loss on repayment/disposition of loans held-for sale	'	'	-354	-1,614
Gain on sale of CDO X interests	'	224,317	'	224,317
Gain on termination of derivative	'	'	813	'
Loss on disposal of long-lived assets	7	'	-6	'
Gain (loss) on settlement of investments, net	1,388	229,239	6,451	232,885
Other income (loss), net	'	'	'	'
Gain (loss) on non-hedge derivative instruments	1,894	1,975	7,302	6,052
Unrealized (loss) recognized at de-designation of hedges	'	'	'	-7,036
Hedge ineffectiveness	'	'	'	483
Collateral management fee income, net	304	407	992	1,383
Equity in earnings of equity method investees	-458	'	-458	'
Other income (loss)	223	42	1,718	768
Total Other income (loss), net	$1,963	$2,424	$9,554	$1,650

RECLASSIFICATION_FROM_ACCUMULA2

RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net realized gain (loss) on securities	'	'	'	'
Gain on settlement of real estate securities	$1,381	$4,930	$9,590	$14,615
Loss on settlement of real estate securities	'	-8	-3,592	-4,433
Net realized gain (loss) on derivatives designated as cash flow hedges	'	'	'	'
Gain (loss) recognized upon de-designation	1,894	1,975	7,302	6,052
Hedge ineffectiveness	'	'	'	483
Net unrealized gains (losses) on derivatives designated as cash flow hedges	-1	-321	-2	5,304
Other Comprehensive Income (Loss) Recognized in Net Income	'	'	'	'
Net realized gain (loss) on securities	'	'	'	'
Impairment	'	'	-4,449	'
Gain on settlement of real estate securities	1,381	'	9,590	'
Loss on settlement of real estate securities	'	'	-3,592	'
[GainLossOnSaleOfInvestments]	1,381	'	1,549	'
Impairment	'Other-than-temporary impairment on securities, net of portion of other-than-temporary impairment on securities recognized in other comprehensive income	'	'Other-than-temporary impairment on securities, net of portion of other-than-temporary impairment on securities recognized in other comprehensive income	'
Gain on settlement of real estate securities	'Gain (loss) on settlement of investments, net	'	'Gain (loss) on settlement of investments, net	'
Loss on settlement of real estate securities	'Gain (loss) on settlement of investments, net	'	'Gain (loss) on settlement of investments, net	'
Net realized gain (loss) on derivatives designated as cash flow hedges	'	'	'	'
Gain (loss) recognized upon de-designation	'	'	'	'
Hedge ineffectiveness	'	'	'	'
Amortization of deferred gain (loss)	1	'	2	'
Gain (loss) reclassified from AOCI into income, related to effective portion	-1,280	'	-4,848	'
Gain (loss) of termination of derivative instruments	'	'	'	'
Net unrealized gains (losses) on derivatives designated as cash flow hedges	-1,279	'	-4,846	'
Gain (loss) recognized upon de-designation	'Other income (loss)	'	'Other income (loss)	'
Hedge ineffectiveness	'Other income (loss)	'	'Other income (loss)	'
Amortization of deferred gain (loss)	'Interest Expense	'	'Interest Expense	'
Gain (loss) reclassified from AOCI into income, related to effective portion	'Interest Expense	'	'Interest Expense	'
Gain (loss) of termination of derivative instruments	'Gain (loss) on settlement of investments, net	'	'Gain (loss) on settlement of investments, net	'
Total reclassifications	$102	'	($3,297)	'

SUPPLEMENTAL_NONCASH_INVESTING2

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES RELATED TO CDOs (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Restricted Cash activity:	'	'
Restricted cash generated from sale of securities	$135,900	$56,629
Restricted cash generated from sale of loans	9,318	'
Restricted cash generated from paydowns on securities and loans	281,889	197,686
Restricted cash used for purchases of real estate securities	'	143,184
Restricted cash used for purchases of real estate related and other loans	'	91,481
Restricted cash used for repayments of CDO bonds payable	337,143	102,988
Restricted cash used for purchases of derivative instruments	'	408
Restricted cash used for settlement of derivative instruments	1,563	'
Restricted cash used to return margin collateral	'	6,550
CDO Deconsolidation:	'	'
Real Estate Securities	'	1,033,016
Restricted Cash	'	51,522
Derivative liabilities	'	57,343
CDO bonds payable	'	$1,110,694

RECENT_ACTIVITIES_Details_Narr

RECENT ACTIVITIES (Details Narrative) (USD $)	0 Months Ended
In Thousands, unless otherwise specified	Nov. 01, 2013	Oct. 31, 2013	Oct. 30, 2013
Working capital loan returned by Local Media	'	'	$2,500
Debt owned by Newcastle	'	69,000	'
Proceeds from debt securitization	88,000	'	'
Unrestricted proceeds from securitization	47,000	'	'
Payment of CDO VII and CDO IX debt at par	41,000	'	'
CDO VI Bonds Payable	'	'	'
Face Amount of Debt to be Re-Securitized	'	110,000	'
Senior Tranche	'	'	'
Debt after securitization	'	99,000	'
Junior Tranche	'	'	'
Debt after securitization	'	$11,000	'

PRO_FORMA_CONDENSED_CONSOLIDAT2

PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION - Statement of Operations (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012
Interest income	$47,486	$72,947	$171,642		$223,765
Interest expense	20,555	28,411	65,263		88,038
Net interest income	26,931	44,536	106,379		135,727
Impairment (Reversal)	'	'	'		'
Valuation allowance (reversal) on loans	-12,998	4,094	-11,473		-8,160
Other-than-temporary impairment on securities	'	-236	4,405		16,506
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)	'	1,156	44		-1,913
[ImpairmentNetOfTheReversalOfPriorValuationAllowancesOnLoans]	-12,998	5,014	-7,024		6,433
Net interest income after impairment/reversal	39,929	39,522	113,403		129,294
Other Revenues	'	'	'		'
Rental income	21,149	6,660	44,344		7,684
Care and ancillary income	3,763	1,411	8,081		1,411
Total other revenues	24,912	8,071	52,425		9,095
Other Income (Loss)	'	'	'		'
Gain (loss) on settlement of investments, net	1,388	229,239	6,451		232,885
Gain on extinguishment of debt	3,359	2,345	4,565		23,127
Other income (loss), net	1,963	2,424	9,554		1,650
Equity in earnings of Local Media Group	1,045	'	1,045		'
[NonoperatingGainsLosses]	7,755	234,008	21,615		257,662
Expenses	'	'	'		'
Loan and security servicing expense	908	1,054	2,963		3,256
Property operating expenses	15,804	5,043	32,576		5,500
General and administrative expense	9,356	4,020	23,507		11,023
Management fee to affiliate	7,166	6,852	24,879		17,459
Depreciation and amortization	7,732	2,385	15,881		2,389
Total Expenses	40,966	19,354	99,806		39,627
Income (loss) from continuing operations	31,630	262,247	87,637		356,424
Preferred dividends	-1,395	-1,395	-4,185		-4,185
Income (Loss) from continuing operations per share of common stock, after preferred dividends	'	'	'		'
Basic	$0.10	$1.59	$0.32		$2.62
Diluted	$0.10	$1.57	$0.31		$2.59
Weighted Average Number of Shares of Common Stock Outstanding	'	'	'		'
Basic	293,373,891	164,237,757	262,792,986		134,619,858
Diluted	301,027,917	166,429,120	269,057,682		135,869,332
Newcastle Consolidated Historical	'	'	'		'
Interest income	'	'	171,642	[1]	'
Interest expense	'	'	65,263	[1]	'
Net interest income	'	'	106,379	[1]	'
Impairment (Reversal)	'	'	'		'
Valuation allowance (reversal) on loans	'	'	-11,473	[1]	'
Other-than-temporary impairment on securities	'	'	4,405	[1]	'
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)	'	'	44	[1]	'
[ImpairmentNetOfTheReversalOfPriorValuationAllowancesOnLoans]	'	'	-7,024	[1]	'
Net interest income after impairment/reversal	'	'	113,403	[1]	'
Other Revenues	'	'	'		'
Rental income	'	'	44,344	[1]	'
Care and ancillary income	'	'	8,081	[1]	'
Total other revenues	'	'	52,425	[1]	'
Other Income (Loss)	'	'	'		'
Gain (loss) on settlement of investments, net	'	'	6,451	[1]	'
Gain on extinguishment of debt	'	'	4,565	[1]	'
Other income (loss), net	'	'	1,045	[1]	'
Equity in earnings of Local Media Group	'	'	9,554	[1]	'
[NonoperatingGainsLosses]	'	'	21,615	[1]	'
Expenses	'	'	'		'
Loan and security servicing expense	'	'	2,963	[1]	'
Property operating expenses	'	'	32,576	[1]	'
General and administrative expense	'	'	23,507	[1]	'
Management fee to affiliate	'	'	24,879	[1]	'
Depreciation and amortization	'	'	15,881	[1]	'
Total Expenses	'	'	99,806	[1]	'
Income (loss) from continuing operations	'	'	87,637	[1]	'
Preferred dividends	'	'	-4,185	[1]	'
Income (loss) from continuing operations after preferred dividends	'	'	83,452	[1]	'
Income (Loss) from continuing operations per share of common stock, after preferred dividends	'	'	'		'
Basic	'	'	$0.32	[1]	'
Diluted	'	'	$0.31	[1]	'
Weighted Average Number of Shares of Common Stock Outstanding	'	'	'		'
Basic	'	'	262,792,986	[1]	'
Diluted	'	'	269,057,682	[1]	'
Pro Forma Adjustments New Residential	'	'	'		'
Interest income	'	'	-12,019	[2]	'
Interest expense	'	'	-2,152	[2]	'
Net interest income	'	'	-9,867	[2]	'
Impairment (Reversal)	'	'	'		'
Valuation allowance (reversal) on loans	'	'	'	[2]	'
Other-than-temporary impairment on securities	'	'	-3,756	[2]	'
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)	'	'	'	[2]	'
[ImpairmentNetOfTheReversalOfPriorValuationAllowancesOnLoans]	'	'	-3,756	[2]	'
Net interest income after impairment/reversal	'	'	-6,111	[2]	'
Other Revenues	'	'	'		'
Rental income	'	'	'	[2]	'
Care and ancillary income	'	'	'	[2]	'
Total other revenues	'	'	'	[2]	'
Other Income (Loss)	'	'	'		'
Gain (loss) on settlement of investments, net	'	'	-58	[2]	'
Gain on extinguishment of debt	'	'	'	[2]	'
Other income (loss), net	'	'	'	[2]	'
Equity in earnings of Local Media Group	'	'	'	[2]	'
[NonoperatingGainsLosses]	'	'	-58	[2]	'
Expenses	'	'	'		'
Loan and security servicing expense	'	'	-108	[2]	'
Property operating expenses	'	'	'	[2]	'
General and administrative expense	'	'	-38	[2]	'
Management fee to affiliate	'	'	-4,134	[2]	'
Depreciation and amortization	'	'	'	[2]	'
Total Expenses	'	'	-4,280	[2]	'
Income (loss) from continuing operations	'	'	-1,889	[2]	'
Preferred dividends	'	'	'	[2]	'
Income (loss) from continuing operations after preferred dividends	'	'	-1,889	[2]	'
Newcastle Consolidated Pro Forma	'	'	'		'
Interest income	'	'	159,623		'
Interest expense	'	'	63,111		'
Net interest income	'	'	96,512		'
Impairment (Reversal)	'	'	'		'
Valuation allowance (reversal) on loans	'	'	-11,473		'
Other-than-temporary impairment on securities	'	'	649		'
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)	'	'	44		'
[ImpairmentNetOfTheReversalOfPriorValuationAllowancesOnLoans]	'	'	-10,780		'
Net interest income after impairment/reversal	'	'	107,292		'
Other Revenues	'	'	'		'
Rental income	'	'	44,344		'
Care and ancillary income	'	'	8,081		'
Total other revenues	'	'	52,425		'
Other Income (Loss)	'	'	'		'
Gain (loss) on settlement of investments, net	'	'	6,393		'
Gain on extinguishment of debt	'	'	4,565		'
Other income (loss), net	'	'	1,045		'
Equity in earnings of Local Media Group	'	'	9,554		'
[NonoperatingGainsLosses]	'	'	21,557		'
Expenses	'	'	'		'
Loan and security servicing expense	'	'	2,855		'
Property operating expenses	'	'	32,576		'
General and administrative expense	'	'	23,469		'
Management fee to affiliate	'	'	20,745		'
Depreciation and amortization	'	'	15,881		'
Total Expenses	'	'	95,526		'
Income (loss) from continuing operations	'	'	85,748		'
Preferred dividends	'	'	-4,185		'
Income (loss) from continuing operations after preferred dividends	'	'	$81,563		'
Income (Loss) from continuing operations per share of common stock, after preferred dividends	'	'	'		'
Basic	'	'	$0.31		'
Diluted	'	'	$0.30		'
Weighted Average Number of Shares of Common Stock Outstanding	'	'	'		'
Basic	'	'	262,792,986		'
Diluted	'	'	269,057,682		'
[1]	(A) Represents Newcastle's historical consolidated statement of operations for the nine months ended September 30, 2013, excluding discontinued operations.
[2]	(B) Represents the portion of New Residential's historical consolidated statement of operations for the period from January 1, 2013 to May 15, 2013 that is not included in Newcastle's income (loss) from discontinued operations. After the May 15, 2013 spin-off of New Residential from Newcastle, no results of New Residential were reported in Newcastle's consolidated statement of operations.