Ready Capital (RC) 10-Q 25 Oct 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 24, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	ZAIS Financial Corp.
Entity Central Index Key	1,527,590
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ZFC
Entity Common Stock, Shares Outstanding		8,836,902

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 184,951,991	$ 20,793,716
Restricted cash	4,217,791	4,371,725
Mortgage loans held for investment, at fair value - $35,615,300 and $394,942,512 pledged as collateral, respectively	39,951,632	397,678,140
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Mortgage loans held for sale, at fair value - $131,999,358 and $115,942,230 pledged as collateral, respectively	134,333,273	115,942,230
Real estate securities, at fair value - $82,686,633 and $95,627,850 pledged as collateral, respectively	84,754,175	109,339,281
Other Investment Securities, at fair value - $11,023,416 and $1,989,174 pledged as collateral, respectively	13,947,952	12,804,196
Loans eligible for repurchase from Ginnie Mae	45,898,534	34,745,103
Mortgage servicing rights, at fair value	50,182,593	48,209,016
Derivative assets, at fair value	5,462,467	2,376,187
Other assets	4,782,669	7,928,878
Goodwill	14,183,537	14,183,537
Intangible assets	4,289,015	4,880,270
Total assets	588,630,124	775,138,921
Liabilities
Warehouse lines of credit	125,737,022	100,768,428
Treasury securities repurchase agreements	69,994,283	0
Loan Repurchase Facilities	15,000,000	296,789,330
Securities repurchase agreements	68,112,976	73,300,159
Exchangeable Senior Notes	57,355,775	56,509,046
Contingent consideration	12,214,200	11,285,100
Derivative liabilities, at fair value	2,924,702	1,831,967
Dividends and distributions payable	3,559,120	3,559,120
Accounts payable and other liabilities	21,046,614	18,572,613
Liability for loans eligible for repurchase from Ginnie Mae	45,898,534	34,745,103
Total liabilities	421,843,226	597,360,866
Commitments and contingencies (Note 22)
Equity
12.5% Series A cumulative non-voting preferred stock, $0.0001 par value; 50,000,000 shares authorized; zero shares issued and outstanding	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized; 8,836,902 and 7,970,886 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	884	798
Additional paid-in capital	180,371,092	164,207,617
Accumulated deficit	(14,861,710)	(4,984,178)
Total ZAIS Financial Corp. stockholders’ equity	165,510,266	159,224,237
Non-controlling interests	1,276,632	18,553,818
Total equity	166,786,898	177,778,055
Total liabilities and equity	$ 588,630,124	$ 775,138,921

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Mortgage loans held for investment, pledged as collateral	$ 35,615,300	$ 394,942,512
Mortgage Loans Held For Sale Amount Pledged As Collateral	131,999,358	115,942,230
Real estate securities, pledged as collateral	82,686,633	95,627,850
Other investment securities, pledged as collateral	$ 11,023,416	$ 1,989,174
12.5% Series A cumulative non-voting preferred stock, par or stated value per share	$ 0.0001	$ 0.0001
12.5% Series A cumulative non-voting preferred stock, shares authorized	50,000,000	50,000,000
12.5% Series A cumulative non-voting preferred stock, shares issued	0	0
12.5% Series A cumulative non-voting preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	8,836,902	7,970,886
Common stock, shares outstanding	8,836,902	7,970,886

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest income
Mortgage loans held for investment	$ 420,385	$ 6,447,802	$ 1,175,125	$ 19,497,295
Mortgage loans held for sale previously held for investment	0	0	8,492,678	0
Mortgage loans held for sale	1,309,231	986,239	2,999,254	2,387,695
Real estate securities	1,103,945	1,985,913	3,642,535	6,687,328
Other Investment Securities	196,919	230,998	612,945	327,379
Total interest income	3,030,480	9,650,952	16,922,537	28,899,697
Interest expense
Warehouse lines of credit	960,686	574,977	2,166,145	1,647,268
Treasury securities repurchase agreements	64,880	0	125,742	0
Loan repurchase facilities	251,273	2,329,993	4,331,349	7,054,210
Securities repurchase agreements	353,709	357,408	985,454	1,154,459
Exchangeable Senior Notes	1,477,089	1,449,476	4,409,949	4,329,143
Total interest expense	3,107,637	4,711,854	12,018,639	14,185,080
Net interest income	(77,157)	4,939,098	4,903,898	14,714,617
Non-interest income
Mortgage banking activities, net	15,893,519	13,068,360	43,125,872	36,323,742
Loan servicing fee income, net of direct costs	2,137,792	1,740,107	6,247,239	5,044,841
Change in fair value of mortgage servicing rights	(1,214,135)	(5,881,088)	(15,463,558)	(5,658,280)
Other income	21,714	15,668	55,624	39,725
Total non-interest income	16,838,890	8,943,047	33,965,177	35,750,028
Other gains/(losses)
Change in unrealized gain or loss on mortgage loans held for investment and held for sale previously held for investment	(71,687)	(5,650,924)	(20,034,449)	(5,603,683)
Change in unrealized gain or loss on real estate securities	3,126,585	(2,119,917)	2,463,055	(4,262,990)
Change in unrealized gain or loss on Other Investment Securities	673,225	(420,796)	1,036,085	(276,269)
Change in unrealized gain or loss on real estate owned	0	97,917	929,407	106,485
Change in unrealized gain or loss on Treasury Securities	(9,979)	0	(646)	0
Realized gain on mortgage loans held for investment and held for sale previously held for investment	49,541	500,967	22,905,253	1,117,818
Realized (loss) / gain on real estate securities	0	(56,949)	(724,607)	18,710
Realized loss on Other Investment Securities	0	0	0	(39,360)
Realized (loss) / gain on real estate owned	0	(159,570)	108,814	(163,482)
Realized gain on Treasury Securities	48,125	0	72,836	0
Gain/(loss) on derivative instruments related to investment portfolio	216,993	(177,670)	(389,602)	316,697
Total other gains/(losses)	4,032,803	(7,986,942)	6,366,146	(8,786,074)
Expenses
Advisory fee - related party	722,135	760,066	2,262,970	2,188,354
Salaries, commissions and benefits	9,777,593	7,681,983	27,249,531	23,171,648
Operating expenses	3,363,876	3,461,155	9,088,658	10,333,959
Other expenses	947,952	953,908	6,695,934	3,065,370
Total expenses	14,811,556	12,857,112	45,297,093	38,759,331
Net income/(loss) before income taxes	5,982,980	(6,961,909)	(61,872)	2,919,240
Income tax expense (benefit)	1,799,829	(250,491)	251,924	2,503,896
Net income /(loss)	4,183,151	(6,711,418)	(313,796)	415,344
Net income/(loss) allocated to non-controlling interests	72,460	(670,672)	(347,734)	28,499
Net income/(loss) attributable to ZAIS Financial Corp. common stockholders	$ 4,110,691	$ (6,040,746)	$ 33,938	$ 386,845
Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders:
Basic	$ 0.47	$ (0.76)	$ 0	$ 0.05
Diluted	$ 0.46	$ (0.76)	$ 0	$ 0.05
Weighted average number of shares of common stock:
Basic	8,836,902	7,970,886	8,261,665	7,970,886
Diluted	10,677,360	8,897,800	8,897,800	8,897,800

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Equity - USD ($)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	(Accumulated Deficit)/Retained Earnings [Member]	ZAIS Financial Corp. Stockholders' Equity [Member]	Non-Controlling Interests [Member]
Balance at Dec. 31, 2014	$ 193,383,812	$ 0	$ 798	$ 164,207,617	$ 9,029,947	$ 173,238,362	$ 20,145,450
Balance, shares at Dec. 31, 2014		0	7,970,886
Distributions on OP units	(1,112,298)	$ 0	$ 0	0	0	0	(1,112,298)
Dividends on common stock	(9,565,062)	0	0	0	(9,565,062)	(9,565,062)	0
Contributions	50,000	0	0	0	0	0	50,000
Net income (loss)	415,344	0	0	0	386,845	386,845	28,499
Balance at Sep. 30, 2015	183,171,796	$ 0	$ 798	164,207,617	(148,270)	164,060,145	19,111,651
Balance, shares at Sep. 30, 2015		0	7,970,886
Balance at Dec. 31, 2015	177,778,055	$ 0	$ 798	164,207,617	(4,984,178)	159,224,237	18,553,818
Balance, shares at Dec. 31, 2015		0	7,970,886
Share issuance to satisfy redemption of OP units	0	$ 0	$ 86	16,163,475	0	16,163,561	(16,163,561)
Share issuance to satisfy redemption of OP units (in shares)		0	866,016
Distributions on OP units	(765,891)	$ 0	$ 0	0	0	0	(765,891)
Dividends on common stock	(9,911,470)	0	0	0	(9,911,470)	(9,911,470)	0
Net income (loss)	(313,796)	0	0	0	33,938	33,938	(347,734)
Balance at Sep. 30, 2016	$ 166,786,898	$ 0	$ 884	$ 180,371,092	$ (14,861,710)	$ 165,510,266	$ 1,276,632
Balance, shares at Sep. 30, 2016		0	8,836,902

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net (loss)/ income	$ (313,796)	$ 415,344
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	15,606,548	10,036,457
Change in unrealized gain or loss on derivative instruments	(1,993,545)	(1,034,851)
Amortization of Exchangeable Senior Notes discount	846,729	765,923
Depreciation and amortization expense	710,103	655,047
Proceeds from sale and principal payments on mortgage loans held for sale	1,674,425,261	1,481,473,208
Originations and purchases of mortgage loans held for sale	(1,632,229,133)	(1,449,538,666)
Gain on sale of mortgage loans held for sale	(60,587,171)	(48,848,410)
Capitalization of originated mortgage servicing rights	(17,437,135)	(14,323,953)
Changes in operating assets and liabilities:
Decrease/(increase) in other assets	5,628,345	1,478,487
Increase in accounts payable and other liabilities	2,474,001	6,918,026
Increase in contingent consideration	929,100	1,182,251
Net cash used in operating activities	(23,562,288)	(15,376,191)
Cash flows from investing activities
Origination of mortgage loans held for investment	(1,405,191)	(5,604,431)
Acquisition of mortgage loans held for investment	(22,922,925)	(6,025,503)
Proceeds from principal repayments on mortgage loans held for investment and held for sale previously held for investment.	29,473,991	25,854,329
Proceeds from sale of mortgage loans held for sale previously held for investment	357,153,092	0
Acquisitions of real estate securities	0	(6,362,138)
Proceeds from principal repayments on real estate securities	11,694,754	13,975,960
Proceeds from sales of real estate securities	16,094,301	26,770,760
Acquisitions of Other Investment Securities	0	(15,601,330)
Proceeds from principal repayments on Other Investment Securities	169,604	0
Proceeds from sales of Other Investment Securities	0	2,241,387
Proceeds received for the final reconciliation of purchase price relating to the acquisition of GMFS	0	1,684,263
Restricted cash (used in)/provided by investment activities	153,934	3,116,811
Net cash provided by investing activities	390,411,560	40,050,108
Cash flows from financing activities
Net borrowings under warehouse lines of credit	24,968,594	14,799,030
Borrowings from treasury securities repurchase agreements	178,847,283	0
Repayments of treasury securities repurchase agreements	(108,853,000)	0
Net (repayments)/borrowings under loan repurchase facilities	(281,789,330)	(4,777,263)
Borrowings from securities repurchase agreements	11,932,198	3,764,081
Repayments of securities repurchase agreements	(17,119,381)	(32,257,187)
Dividends on common stock and distributions on OP units (net of change in dividends and distributions payable)	(10,677,361)	(10,677,360)
Contributions from non-controlling interests	0	50,000
Net cash used in financing activities	(202,690,997)	(29,098,699)
Net increase / (decrease) in cash and cash equivalents	164,158,275	(4,424,782)
Cash and cash equivalents
Beginning of period	20,793,716	33,791,013
End of period	184,951,991	29,366,231
Noncash investing and financing activities
Accrued dividends and distributions payable	3,559,120	3,559,120
Share issuance to satisfy redemption of OP units	16,163,561	0
Conversion of mortgage loans held for investment to real estate owned	1,513,223	2,134,106
Real Estate Securities [Member]
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	(1,465,501)	(3,263,205)
Change in unrealized gain or loss	(2,463,055)	4,262,990
Realized (gain)/loss	724,607	(18,710)
Other Investment Securities [Member]
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	(277,275)	(124,204)
Change in unrealized gain or loss	(1,036,085)	276,269
Realized (gain)/loss	0	39,360
Mortgage Servicing Rights [Member]
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	15,463,558	5,658,280
Real Estate Owned [Member]
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	(929,407)	(106,485)
Realized (gain)/loss	(108,814)	163,482
Mortgage Loans [Member]
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Change in unrealized gain or loss	(3,052,271)	(5,892,239)
Change in unrealized gain or loss	20,034,449	5,603,683
Realized (gain)/loss	$ (22,905,253)	$ (1,117,818)

Formation and Organization

Formation and Organization	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations [Text Block]	General ZAIS Financial Corp. (together with its subsidiaries, the "Company") was incorporated in Maryland on May 24, 2011, and has elected to be taxed and to qualify as a real estate investment trust ("REIT") beginning with the taxable year ended December 31, 2011. The Company completed its formation transaction and commenced operations on July 29, 2011. The Company invests in residential mortgage loans. GMFS, LLC (“GMFS”), a mortgage banking platform the Company acquired in October 2014, originates, sells and services residential mortgage loans and the Company may acquire performing, re-performing and newly originated loans through other channels. The Company also invests in, finances and manages residential mortgage-backed securities ("RMBS") that are not issued or guaranteed by a federally chartered corporation, such as the Federal National Mortgage Association ("Fannie Mae"), the Federal Home Loan Mortgage Corporation ("Freddie Mac"), or an agency of the U.S. Government, such as Government National Mortgage Association ("Ginnie Mae") ("non-Agency RMBS"), with an emphasis on securities that, when originally issued, were rated in the highest rating category by one or more of the nationally recognized statistical rating organizations and residential mortgage servicing rights (“MSRs”). The Company also has the discretion to invest in RMBS that are issued or guaranteed by a federally chartered corporation or a U.S. Government agency ("Agency RMBS"), including through To-Be-Announced ("TBA") contracts, and in other real estate-related and financial assets. The Company is the sole general partner of, and conducts substantially all of its business through, ZAIS Financial Partners, L.P. (“Company Operating Partnership” or the “Operating Partnership”). The Company is externally managed by ZAIS REIT Management, LLC (the "Advisor"), a subsidiary of ZAIS Group, LLC ("ZAIS"), and has no employees except for those employed by GMFS. GMFS had 260 employees at September 30, 2016. The Company's income is generated primarily by the net spread between the income it earns on its assets and the cost of its financing and hedging activities in its residential mortgage investments segment, and the origination, sale and servicing of residential mortgage loans in its residential mortgage banking segment. The Company's objective is to provide attractive risk-adjusted returns to its stockholders, primarily through quarterly dividend distributions and secondarily through capital appreciation. The Company's charter authorizes the issuance of up to 500,000,000 0.0001 50,000,000 0.0001 Plan of Merger with Sutherland Asset Management Corporation (“Sutherland”) On April 6, 2016, the Company, the Operating Partnership, ZAIS Merger Sub, LLC (“Merger Sub”), a wholly owned subsidiary of the Company, Sutherland and Sutherland Partners, L.P. (“Sutherland Operating Partnership”) entered into an agreement and plan of merger, as amended on May 9, 2016 and August 4, 2016 (the “Sutherland Merger Agreement”). Subject to the terms and conditions of the Sutherland Merger Agreement, (i) Sutherland will merge with and into Merger Sub (the “Sutherland Merger”), with Merger Sub surviving the Sutherland Merger and continuing as a wholly owned subsidiary of the Company and (ii) Sutherland Operating Partnership will merge with and into Company Operating Partnership (the “Partnership Merger” and together with the Sutherland Merger, the “Mergers”), with Company Operating Partnership surviving the Partnership Merger (for tax purposes the Sutherland Operating Partnership will be the surviving partnership). The transaction will be accounted for as a reverse merger. On April 6, 2016, the Company, Company Operating Partnership, the Advisor, Sutherland and certain subsidiaries of the Company entered into a termination agreement (the “Termination Agreement”). Pursuant to the Termination Agreement, effective upon the closing of the Mergers, the existing advisory agreement between the Company, the Advisor, Company Operating Partnership and the Company’s subsidiaries would be terminated and the Company would pay the Advisor a termination fee in the amount of $ 8,000,000 Additionally, on April 6, 2016, the Company, the Operating Partnership, certain subsidiaries of the Company, Sutherland, and Waterfall Asset Management, LLC (“Waterfall”) entered into a management agreement, as amended as of May 9, 2016 (the “Sutherland Management Agreement”), and the Company and Waterfall entered into a related Side-Letter Agreement (the “Side Letter Agreement”). Pursuant to the Sutherland Management Agreement and the Side Letter Agreement, effective upon the closing of the Mergers, the Company will retain Waterfall to provide investment advisory services to the Company on the terms and conditions set forth in the Sutherland Management Agreement. In exchange for services provided, the Company will pay Waterfall a management fee and the Operating Partnership will issue Waterfall a newly authorized special limited partnership unit entitling Waterfall to an incentive fee under the terms of the Sutherland Management Agreement. The Sutherland Management Agreement has an initial term of three years, after which it will renew automatically for additional one year terms. In the event that the Merger Agreement is terminated prior to the consummation of the Mergers, the Sutherland Management Agreement and the Side Letter Agreement will automatically terminate and be of no further effect. On September 12, 2016 the Company and Sutherland announced the final exchange ratio in accordance with the terms of the Sutherland Merger Agreement. If the Mergers and the other transactions contemplated by the Sutherland Merger Agreement are completed, Sutherland’s common stockholders will receive 0.8356 0.8356 On September 27, 2016, the Company and Sutherland announced that they had each received the necessary stockholder approvals to complete the Mergers. At separate special meetings of the stockholders of the Company and Sutherland, the Company’s stockholders voted in favor of the proposal to issue shares to Sutherland stockholders in connection with the Mergers, and the Sutherland stockholders voted in favor of the proposal to approve the Merger of Sutherland with and into Merger Sub. Assuming all conditions to closing the Mergers have been satisfied, the Mergers are expected to close on or after October 31, 2016. Additionally, on September 27, 2016, the Company commenced a tender offer to purchase up to 4,185,497 0.0001 15.37 95 8,000,000 4,064,000 297,400 The decision to enter the Sutherland Merger Agreement resulted from a strategic review of the Company which began during the fourth quarter of 2015. As a result of that review, in order to reduce market risk in its investment portfolio, prior to entering into the Sutherland Merger Agreement, the Company had begun the process of selling its seasoned, re-performing mortgage loans from its residential mortgage investments segment. The Sutherland Merger Agreement required the Company to complete the sale of its seasoned, re-performing mortgage loans as a condition to closing of the Mergers. The sale of the mortgage loans, which also included real estate owned (“REO”), was completed on May 26, 2016. These mortgage loan sales resulted in a reduction of the Company’s investment income (see Note 5 – Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value – “Distressed and re-performing loans at the time of purchase”). Additionally, as part of the strategic review, the Company had made the decision to cease the purchase of newly originated residential mortgage loans as part of its mortgage conduit purchase program and is in the process of terminating contracts and surrendering governmental licenses relating to the Company’s mortgage conduit business. The Sutherland Merger Agreement requires the Company to complete this process of terminating contracts and surrendering governmental licenses.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") as contained within the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim reporting. In the opinion of management, all adjustments considered necessary for a fair statement of the Company'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 the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP as contained in the ASC have been condensed or omitted from the unaudited interim consolidated financial statements according to the SEC rules and regulations. The information and disclosures contained in the unaudited interim consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The Company operates in two business segments: residential mortgage investments and residential mortgage banking. The Company does not have any other “Other Comprehensive Income” items other than those reported in its condensed consolidated statements of operations. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates. The consolidated financial statements include the accounts of the Company, the Operating Partnership, all of the wholly owned subsidiaries of the Operating Partnership, including its taxable REIT subsidiaries (“TRS Entities”), and a joint venture in which GMFS has a controlling financial interest. All intercompany balances have been eliminated in consolidation. The Company, which serves as the sole general partner of and conducts substantially all of its business through the Operating Partnership, held approximately 99.3 89.6 Changes in the Company's ownership interest (and transactions with non-controlling interests in its consolidated subsidiaries) while the Company retains its controlling interest in the subsidiaries, are accounted for as equity transactions. The carrying amount of the non-controlling interest is adjusted to reflect the change in its ownership interest in the subsidiaries, with the offset to equity attributable to the Company. In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02, "Consolidation: Amendments to the Consolidation Analysis" ("ASU 2015-02"). ASU 2015-02 makes changes to both the variable interest model and the voting model. The Company adopted ASU 2015-02 on January 1, 2016. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. A variable interest entity ("VIE") is an entity that lacks one or more of the characteristics of a voting interest entity. The Company evaluates each of its investments to determine whether it is a VIE based on: (1) the sufficiency of the entity's equity investment at risk to finance its activities without additional subordinated financial support provided by any parties, including the equity holders; (2) whether as a group the holders of the equity investment at risk have (a) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impacts the entity's economic performance, (b) the obligation to absorb the expected losses of the legal entity or the right to receive the expected residual returns of the legal entity; and (3) whether the voting rights of these investors are proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected returns of their equity, or both, and whether substantially all of the entity's activities involve or are conducted on behalf of an investor that has disproportionately fewer voting rights. An investment that lacks one or more of the above three characteristics is considered to be a VIE. The Company reassesses its initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE is subject to consolidation if the equity investors either do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity's activities, or are not exposed to the entity's losses or entitled to its residual returns. VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This determination can sometimes involve complex and subjective analyses. The Company's mortgage loans held for sale are sold predominantly to Fannie Mae and Freddie Mac, which are government sponsored enterprises ("GSEs" or "Agencies"). The Company also issues Ginnie Mae securities by pooling eligible loans through a pool custodian and assigning rights to the loans to Ginnie Mae. Fannie Mae, Freddie Mac and Ginnie Mae provide credit enhancement of the loans through certain guarantee provisions. The Company also purchases RMBS from securitization trusts or similar vehicles. These securitizations involve VIEs as the trusts or similar vehicles, by design, have the characteristics of a VIE. The Company has evaluated its interests in its real estate investment securities and its interests in the securitizations discussed in the preceding paragraph to determine if each represents a variable interest in a VIE. The Company monitors these investments and its investment in the securities and analyzes them for potential consolidation. The Company determined that it was not the primary beneficiary of the VIEs and therefore none of the VIEs were consolidated at September 30, 2016 or December 31, 2015. The maximum exposure of the Company to VIEs is limited to the fair value of its investments in real estate securities and MSRs as disclosed in the Company's consolidated balance sheets. The Company considers highly liquid short-term interest bearing instruments with original maturities of three months or less and other instruments readily convertible into cash to be cash equivalents. Cash and cash equivalents at September 30, 2016 includes U.S. Treasury bills (“Treasury Securities”) with a carrying amount of $ 69,993,637 Mortgage Loans Held for Sale Previously Held for Investment Mortgage loans which the Company has decided it no longer intends to hold for the foreseeable future are reclassified from mortgage loans held for investment to mortgage loans held for sale previously held for investment. These mortgage loans were reported at fair value when held for investment and held for sale. The Company decided during the three months ended March 31, 2016 that it no longer intended to hold its seasoned, re-performing mortgage loan portfolio for the foreseeable future and, as such, reclassified mortgage loans with a fair value of $ 368,956,195 The Company held Freddie Mac Structured Agency Credit Risk Notes (“FMRT Notes”) and Fannie Mae's Risk Transfer Notes (“FNRT Notes”) at September 30, 2016 and December 31, 2015, and during the three and nine months ended September 30, 2016 and September 30, 2015. (the FMRT Notes and the FNRT Notes are collectively referred to as the “Other Investment Securities”). The Other Investment Securities represent unsecured general obligations of Fannie Mae and Freddie Mac and are structured to be subject to the performance of a certain pool of residential mortgage loans. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2011. The Company was organized and has operated and intends to continue to operate in a manner that will enable it to qualify to be taxed as a REIT. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company's annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not necessarily equal net income as calculated in accordance with U.S. GAAP). As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders and does not engage in prohibited transactions. The majority of states also recognize the Company's REIT status. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company's net income under U.S. GAAP and net cash available for distribution to stockholders. However, it is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. The Company has separately made joint elections with three of its subsidiaries, ZFC Funding Inc., ZFC Trust TRS I, LLC and ZFC Honeybee TRS, LLC, to treat such subsidiaries as TRS Entities. The Company may perform certain activities through these TRS entities that could adversely impact the Company's REIT qualification if performed other than through a TRS entity. The Company's TRS entities file separate tax returns and are taxed as standalone U.S. C-Corporations irrespective of the dividends-paid deduction available to REITs for federal income tax purposes. The Company assesses its tax positions for all open tax years and records tax benefits only if tax positions meet a more-likely-than-not threshold in accordance with U.S. GAAP for guidance on accounting for uncertainty in income taxes. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). The objective of the guidance is to clarify the principles for recognizing revenue. ASU 2014-09 supersedes most current revenue recognition guidance, including industry-specific guidance, and also enhances disclosure requirements around revenue recognition and the related cash flows. The guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this new standard. In March 2016, the FASB published ASU No. 2016-08 “Revenue from Contracts with Customers” (Topic 606). The amendments in this update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective. The effective date for this update is the same as for ASU 2015-14 “Revenue from Contracts with Customers (Topic 606) which defers the effective date of ASU 2014-09 by one year resulting in the effective date being fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this new standard. In April 2016, the FASB published ASU No. 2016-10 “Revenue from Contracts with Customers” (Topic 606). The amendments in this update are intended to clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective. The effective date for this update is the same as for ASU 2015-14 which defers the effective date of ASU 2014-09 by one year resulting in the effective date being fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this new standard. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements – Going Concern (Subtopic 205-04) Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"), which requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. If conditions or events indicate it is probable that an entity will be unable to meet its obligations as they become due within one year after the financial statements are issued, the update requires additional disclosures. The update is effective for periods beginning after December 15, 2016 with early adoption permitted. Adoption of ASU 2014-15 is not expected to have a material effect on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). 'The amendments in ASU 2016-01, among other things: (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) and (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. The Company is currently evaluating the impact of adopting this new standard. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. Adoption of ASU 2016-15 is not expected to have a material effect on the Company's consolidated financial statements.

Acquisition of GMFS

Acquisition of GMFS	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
GMFS Transaction [Text Block]	3. Acquisition of GMFS The following relates to the acquisition of GMFS in October 2014 pursuant to the terms of the agreement and plan of merger dated August 5, 2014 (the “GMFS Merger Agreement”): Contingent Consideration In addition to cash paid at closing for the acquisition of GMFS, two contingent $ 1 2 20 50 Contingent consideration represents the estimated present value of the deferred premiums and Production and Profitability Earn-Out. Contingent consideration was estimated at closing based on future production and earnings projections of GMFS over the four year earn-out period and is re-measured to fair value at each reporting date until the contingency is resolved. The changes in fair value are recognized in earnings. The final consideration paid could be materially different from the estimate and the difference will be recorded through earnings in the condensed consolidated statements of operations. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Beginning balance $ 11,684,100 $ 12,279,645 $ 11,285,100 $ 11,430,413 Change in fair value 530,100 333,019 929,100 1,182,251 Ending balance $ 12,214,200 $ 12,612,664 $ 12,214,200 $ 12,612,664 The increase in the estimated liability for the three and nine months ended September 30, 2016 and September 30, 2015 resulted from production and profitability that was above the projections at the time of acquisition and the impact of the passage of time. The change in the contingent consideration liability is included in operating expenses in the condensed consolidated statements of operations. The Company has delayed the first year installment payment of the contingent consideration pursuant to the indemnification provisions in the GMFS Merger Agreement (see Note 22 – Commitment and Contingencies). Goodwill Goodwill, with a carrying amount of $ 14,183,537 Nine Months Ended September 30, September 30, Beginning balance $ 14,183,537 $ 16,512,680 Reversal of a liability existing as of the date of acquisition — (385,610) Finalization of purchase price based upon final reconciliation — (1,943,533) Ending balance $ 14,183,537 $ 14,183,537 Goodwill is not amortized but is tested for impairment on the anniversary date of the acquisition or more frequently if events or changes in circumstances indicate that a potential impairment may have occurred. No impairment losses relating to goodwill were recorded for the three and nine months ended September 30, 2016 or September 30, 2015. Intangible Assets Estimated Fair Estimated Useful Trade name $ 2.0 million 10 years Customer relationships 1.3 million 10 years Licenses 1.0 million 3 years Favorable lease 1.5 million 12 years Total Intangible assets $ 5.8 million Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 197,085 $ 197,085 $ 591,255 $ 591,256 Such amounts are recorded as other expenses in the condensed consolidated statements of operations. September 30, December 31, Trade name $ 383,341 $ 233,338 Customer relationships 249,159 151,662 Licenses 638,894 388,892 Favorable lease 239,591 145,838 Total accumulated amortization $ 1,510,985 $ 919,730 October 1, 2016 – December 31, 2016 $ 197,085 2017 $ 732,776 2018 $ 455,004 2019 $ 455,004 2020 $ 455,004 2021 $ 455,004 No impairment losses relating to intangible assets were recorded for the three and nine months ended September 30, 2016 or September 30, 2015.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	4. Fair Value Fair Value Measurement The Company has elected the Fair Value Option for its mortgage loans held for investment, real estate securities, Other Investment Securities and the related derivative instruments. The Company’s current intentions are to generally hold these investments and related derivatives to generate interest income, however the Company has and may continue to sell certain of these investments as part of its overall investment strategy. The Company has also elected the Fair Value Option for its mortgage loans held for sale and MSRs in its residential mortgage banking segments. The Company’s mortgage banking operations include originating and selling residential mortgage loans, some of which will be sold servicing retained. The Company’s management believes that reporting these instruments at their fair value better represents the Company’s financial position than historical cost. Financial assets and liabilities recorded at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2016 Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Assets Mortgage loans held for investment $ — $ — $ 39,951,632 $ 39,951,632 Mortgage loans held for sale — 134,333,273 — 134,333,273 Real estate securities — — 84,754,175 84,754,175 Other Investment Securities — — 13,947,952 13,947,952 MSRs — — 50,182,593 50,182,593 Derivative assets — — 5,462,467 5,462,467 Total $ — $ 134,333,273 $ 194,298,819 $ 328,632,092 Liabilities Contingent consideration $ 4,226,200 $ — $ 7,988,000 $ 12,214,200 Derivative liabilities — 2,924,702 — 2,924,702 Total $ 4,226,200 $ 2,924,702 $ 7,988,000 $ 15,138,902 December 31, 2015 Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Assets Mortgage loans held for investment $ — $ — $ 397,678,140 $ 397,678,140 Mortgage loans held for sale — 115,942,230 — 115,942,230 Real estate securities — — 109,339,281 109,339,281 Other Investment Securities — — 12,804,196 12,804,196 MSRs — — 48,209,016 48,209,016 Derivative assets — — 2,376,187 2,376,187 Total $ — $ 115,942,230 $ 570,406,820 $ 686,349,050 Liabilities Contingent consideration $ — $ — $ 11,285,100 $ 11,285,100 Derivative liabilities — 1,822,096 9,871 1,831,967 Total $ — $ 1,822,096 $ 11,294,971 $ 13,117,067 Mortgage Loans Held for Investment and Held for Sale Previously Held for Investment, Real Estate Securities and Other Investment Securities Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Mortgage Real Estate Other Mortgage Real Estate Other Balance, beginning of period $ 397,678,140 109,339,281 12,804,196 $ 415,959,838 $ 148,585,733 $ 2,040,532 Originations/acquisitions 24,328,116 — — 11,359,110 6,362,138 15,601,330 Proceeds from sales (357,202,632) (16,094,301) — — (26,770,760) (2,241,387) Amortization of premiums (123,981) — — (2,388) — — Net accretion of discounts 3,176,252 1,465,501 277,275 5,894,627 3,263,205 124,204 Proceeds from principal repayments (29,261,844) (11,694,754) (169,604) (25,384,866) (13,975,960) — Conversion of mortgage loans to real estate owned (1,513,223) — — (2,134,106) — — Total losses (realized/unrealized) included in earnings 24,188,314 (1,597,292) — (15,316,984) (5,485,768) (539,285) Total gains (realized/unrealized) included in earnings (21,317,510) 3,335,740 1,036,085 10,831,119 1,241,488 223,656 Balance, end of period $ 39,951,632 $ 84,754,175 $ 13,947,952 $ 401,206,350 $ 113,220,076 $ 15,209,050 The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 609,464 $ 1,832,861 $ 1,036,085 $ (5,664,885) $ (3,554,935) $ (449,755) Derivative Instruments Nine Months Ended Nine Months Ended Loan Purchase Interest Rate Loan Purchase Interest Rate Beginning balance $ (9,871) $ 2,376,187 $ 4,037 $ 2,481,063 Change in unrealized gain or loss 9,871 3,086,280 51,443 992,196 Ending balance $ — $ 5,462,467 $ 55,480 $ 3,473,259 The amount of total gains or (losses) for the year included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held at the reporting date $ — $ 3,086,280 $ 51,443 $ 992,196 MSRs See Note 8 – "Mortgage Servicing Rights, at Fair Value" for additional information about the Company's MSRs. Contingent Consideration See Note 3 – "Acquisition of GMFS” for additional information about the Company's contingent consideration. There were no financial assets or liabilities that were accounted for at fair value on a nonrecurring basis at September 30, 2016 or December 31, 2015. During the three and nine months ended September 30, 2016 and September 30, 2015, mortgage loans held for investment were transferred out of Level 3 when the properties were foreclosed and were classified as REO. There were no other transfers into or out of Level 1, Level 2 or Level 3 during the three or nine months ended September 30, 2016 or September 30, 2015. Fair Value at Valuation Unobservable Min Max Weighted Assets: Mortgage loans Held for Investment $ 39,951,632 Discounted cash flow model Constant voluntary prepayment 13.2 % 29.4 % 20.9 % Constant default rate 0.0 % 0.5 % 0.2 % Loss severity 10.0 % 10.0 % 10.0 % Non-Agency RMBS Alternative – A $ 24,642,186 Broker quotes/comparable trades Constant voluntary prepayment 2.1 % 19.8 % 12.6 % Constant default rate 0.1 % 15.5 % 2.8 % Loss severity 0.0 % 86.4 % 24.8 % Delinquency 1.0 % 21.9 % 8.2 % Pay option adjustable rate 26,160,605 Broker quotes/comparable trades Constant voluntary prepayment 2.6 % 7.6 % 4.7 % Constant default rate 0.9 % 9.9 % 3.2 % Loss severity 0.0 % 75.2 % 31.6 % Delinquency 4.0 % 17.4 % 11.5 % Prime 26,929,150 Broker quotes/comparable trades Constant voluntary prepayment 3.3 % 15.9 % 9.0 % Constant default rate 0.2 % 13.5 % 3.6 % Loss severity 0.0 % 102.7 % 28.2 % Delinquency 3.8 % 26.4 % 11.4 % Subprime 7,022,234 Broker quotes/comparable trades Constant voluntary prepayment 1.5 % 4.5 % 3.3 % Constant default rate 3.6 % 9.0 % 5.1 % Loss severity 8.8 % 85.0 % 48.4 % Delinquency 17.4 % 22.4 % 19.8 % Total Non-Agency RMBS $ 84,754,175 Other Investment Securities $ 13,947,952 Broker quotes/comparable trades Constant voluntary prepayment 4.5 % 30.0 % 9.4 % MSRs $ 50,182,593 Discounted cash flow model Constant voluntary prepayment 11.2 % 13.2 % 12.3 % Cost of servicing $ 77 $ 108 $ 89 Discount rate 9.0 % 10.0 % 9.3 % Liabilities: Contingent consideration $ 12,214,200 Option pricing model Discount rate 10.2 % 10.8 % 10.5 % Production volatility — — 20.0 % Profitability volatility — — 50.0 % Fair Value at Valuation Unobservable Min Max Weighted Assets: Mortgage loans held for Investment $ 397,678,140 Discounted cash flow model Constant voluntary prepayment 1.9 % 5.0 % 3.2 % Constant default rate 1.4 % 5.0 % 3.1 % Loss severity 5.9 % 37.2 % 22.1 % Delinquency 6.3 % 13.2 % 10.9 % Non-Agency RMBS Alternative – A $ 35,998,175 Broker quotes/comparable trades Constant voluntary prepayment 2.7 % 18.9 % 12.9 % Constant default rate 0.2 % 7.8 % 2.8 % Loss severity 0.0 % 85.0 % 21.0 % Delinquency 1.4 % 22.2 % 8.9 % Pay option adjustable rate 32,209,538 Broker quotes/comparable trades Constant voluntary prepayment 2.2 % 13.5 % 7.5 % Constant default rate 0.5 % 13.0 % 3.5 % Loss severity 0.0 % 95.6 % 40.0 % Delinquency 5.3 % 21.9 % 12.3 % Prime 32,482,521 Broker quotes/comparable trades Constant voluntary prepayment 3.6 % 21.0 % 8.0 % Constant default rate 0.5 % 9.4 % 3.7 % Loss severity 0.0 % 85.1 % 28.9 % Delinquency 4.4 % 25.5 % 12.0 % Subprime 8,649,047 Broker quotes/comparable trades Constant voluntary prepayment 1.2 % 7.7 % 3.9 % Constant default rate 3.0 % 8.0 % 6.2 % Loss severity 11.1 % 128.5 % 54.0 % Delinquency 18.3 % 28.0 % 22.2 % Total Non-Agency RMBS $ 109,339,281 Other Investment Securities $ 12,804,196 Broker quotes/comparable trades Constant voluntary prepayment 4.0 % 18.4 % 6.9 % MSRs $ 48,209,016 Discounted cash flow model Constant voluntary prepayment 8.5 % 10.5 % 9.3 % Cost of servicing $ 77 $ 110 $ 92 Discount rate 9.0 % 10.0 % 9.4 % Liabilities: Contingent consideration $ 11,285,100 Option pricing model Discount rate 10.2 % 10.8 % 10.5 % Production volatility — — 20.0 % Profitability volatility — — 50.0 % Derivative Financial Instruments The Company estimates the fair value of interest rate lock commitments ("IRLC") based on quoted Agency MBS prices, the expected net future cash flows related to servicing the mortgage loan, adjusted for: (i) estimated costs to complete and originate the loan and (ii) an adjustment to reflect the estimated percentage of IRLCs that will result in a closed mortgage loan under the original terms of the agreement (or “pullthrough rate”). The Company categorizes IRLCs as a "Level 3" financial statement item. The significant unobservable inputs used in the fair value measurement of the Company's IRLCs are the pull-through rate and the expected net future cash flows related to servicing the MSRs component of the Company's estimate of the value of the mortgage loans it has committed to purchase. Significant changes in the pull-through rate and expected net future cash flows related to servicing the MSR component of the IRLCs, in isolation, may result in a significant change in fair value. The financial effects of changes in these assumptions are generally inversely correlated as increasing interest rates have a positive effect on the fair value of the MSR component of IRLC value, but increase the pull-through rate for loans that have decreased in fair value. September 30, December 31, 2016 2015 Pull-through rate Range 58.5% - 100.0 % 62.4% – 100.0 % Weighted average 86.0 % 87.6 % MSR value expressed as: Servicing fee multiple Range (0.4%) – 6.1 % 0.8% - 5.9 % Weighted average 4.5 % 4.3 % Percentage of unpaid principal balance Range (0.1%) – 2.0 % 0.3% - 1.7 % Weighted average 1.1 % 1.1 % The fair value measurements of these assets are sensitive to changes in assumptions regarding prepayment, probability of default, loss severity in the event of default, forecasts of home prices, and significant activity or developments in the real estate market. Significant changes in any of those inputs in isolation may result in significantly higher or lower fair value measurements. Generally, an increase in the probability of default and loss severity in the event of default would result in a lower fair value measurement. A decrease in these assumptions would have the opposite effect. Conversely, an assumption that the home prices will increase would result in a higher fair value measurement. A decrease in the assumption for home prices would have the opposite effect. Fair Value Option Changes in fair value for assets and liabilities for which the fair value option was elected are recognized in earnings as they occur. The fair value option may be elected on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. September 30, 2016 December 31, 2015 Unpaid Principal Unpaid Principal and/or Notional and/or Notional Fair Value Balance (2) Difference Fair Value Balance (2) Difference Financial instruments, at fair value Mortgage loans held for investment (1) $ 39,951,632 $ 38,776,679 $ 1,174,953 $ 397,678,140 $ 444,500,063 $ (46,821,923) Mortgage loans held for sale 134,333,273 127,769,470 6,563,803 115,942,230 111,393,424 4,548,806 Real estate securities (2) 84,754,175 126,888,360 (42,134,185) 109,339,281 168,925,162 (59,585,881) Other Investment Securities 13,947,952 13,387,632 560,320 12,804,196 13,398,851 (594,655) MSRs 50,182,593 5,120,768,614 N/A (3) 48,209,016 4,173,927,393 N/A (3) (1) At September 30, 2016, the balance is comprised of loans that were newly originated at the time of purchase. At December 31, 2015, the balance is comprised of loans that were (i) distressed and re-performing at the time of purchase and (ii) newly originated at the time of purchase. (2) Real estate securities includes an interest only security with a notional balance of $ 24.5 35.0 (3) Amounts not presented. Unpaid principal balance of MSRs is generally significantly greater than their fair value. Fair Value of Other Financial Instruments In addition to the above disclosures regarding assets or liabilities which are recorded at fair value, U.S. GAAP requires disclosure about the fair value of all other financial instruments. Estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair values. September 30, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value Other financial instruments Assets Cash and cash equivalents $ 184,951,991 $ 184,951,991 $ 20,793,716 $ 20,793,716 Restricted cash 4,217,791 4,217,791 4,371,725 4,371,725 Mortgage loans held for investment, at cost 1,674,495 1,674,495 1,886,642 1,886,642 Liabilities Warehouse lines of credit $ 125,737,022 $ 125,737,022 $ 100,768,428 $ 100,768,428 Treasury securities repurchase agreements 69,994,283 69,994,283 — — Loan repurchase facilities 15,000,000 15,000,000 296,789,330 296,789,330 Securities repurchase agreements 68,112,976 68,112,976 73,300,159 73,300,159 Exchangeable Senior Notes 57,939,300 57,355,775 56,775,500 56,509,046 Cash and cash equivalents include cash on hand and Treasury Securities for which fair value equals carrying value. Restricted cash represents the Company's cash held by counterparties as collateral against the Company's derivatives, loan repurchase facilities and securities repurchase agreements. Due to the short-term nature of the restrictions, fair value approximates carrying value. The Company considers the estimated fair value of its cash and cash equivalents and restricted cash to be a Level 1 measurement. The aggregate fair value of the mortgage loans held for investment, at cost is determined, where possible using secondary-market prices. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan. Accordingly, mortgage loans held for investment, at cost are classified as Level 2 in the fair value hierarchy. The fair value of the Company's warehouse lines of credit and repurchase agreements related to the GMFS mortgage banking platform, treasury securities repurchase agreements, loan repurchase facilities and securities repurchase agreements is based on an expected present value technique using observable market interest rates. This method discounts future estimated cash flows using rates the Company determined best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Due to the short term nature of the maturities of these instruments the fair value estimated their carrying value. The Company considers the estimated fair value to be a Level 2 measurement. The fair value of the Exchangeable Senior Notes (see Note 13 - 8.0% Exchangeable Senior Notes due 2016) is based on observable market prices. The Company considers the estimated fair value to be a Level 2 measurement.

Mortgage Loans Held for Investm

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value	9 Months Ended
	Sep. 30, 2016
Mortgage Loans on Real Estate [Abstract]
Mortgage Loans on Real Estate, by Loan Disclosure [Text Block]	5. Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value Distressed and re-performing loans at the time of purchase The Company did not acquire any mortgage loans held for investment which showed evidence of credit deterioration at the time of purchase during the three and nine months ended September 30, 2016 or September 30, 2015. Sale of Mortgage Loans During the three months ended March 31, 2016, the Company decided it no longer intended to hold its seasoned and re-performing mortgage loan portfolio which were held as loans held for investment, at fair value at December 31, 2015 for the foreseeable future and reclassified this portfolio to Mortgage loans held for sale previously held for investment, at fair value. On May 26, 2016, the Company entered into a contract providing for and completed the sale of its seasoned, re-performing mortgage loans and REO, with an unpaid principal balance of $ 430.7 27.0 The Company used $ 267.2 Additionally, the Company received $ 747,083 Proceeds from sale: Unpaid principal balance and accrued interest $ 361,081,388 Servicing advances 747,083 Total – proceeds from sale 361,828,471 Payoff Citi Loan Repurchase Facility (267,192,460) Net proceeds from sale $ 94,636,011 Mortgage loans held for sale previously held for investment REO Total Net gain on sale: Realized gain (loss) on sale, based on amortized cost $ 22,203,418 $ 106,585 $ 22,310,003 Reversal of previously recognized change in unrealized gain or loss (22,788,689) 996,173 (21,792,516) Net (loss) gain on sale $ (585,271) $ 1,102,758 $ 517,487 The realized gain (loss) on sale and reversal of previously recognized change in unrealized gain or loss are included in (i) realized gain on mortgage loans held for investment and held for sale previously held for investment and realized gain on REO and (ii) change in unrealized gain or loss on mortgage loans held for investment and held for sale previously held for investment and change in unrealized gain or loss on REO, respectively, in the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2016. Mortgage Loans Held for Investment The Company did not have any mortgage loans held for investment at September 30, 2016. The following tables present certain information regarding the Company's mortgage loans held for investment, at fair value, at December 31, 2015 which showed evidence of credit deterioration at the time of purchase: Difference Between Fair Value and Aggregate Unpaid Gross Unrealized (1) Unpaid Weighted Average Principal Premium Amortized Fair Principal Unleveraged Balance (Discount) Cost Gains Losses Value Balance Coupon Yield Performing Fixed $ 240,031,119 $ (44,650,666) $ 195,380,453 $ 23,626,555 $ (2,521,921) $ 216,485,087 $ (23,546,032) 4.70 % 7.59 % ARM 143,625,653 (15,597,990) 128,027,663 5,918,004 (3,126,826) 130,818,841 (12,806,812) 3.63 7.15 Total performing 383,656,772 (60,248,656) 323,408,116 29,544,559 (5,648,747) 347,303,928 (36,352,844) 4.30 7.41 Non-performing (2) 40,100,775 (7,515,130) 32,585,645 990,974 (4,245,960) 29,330,659 (10,770,116) 4.65 7.78 Total $ 423,757,547 $ (67,763,786) $ 355,993,761 $ 30,535,533 $ (9,894,707) $ 376,634,587 $ (47,122,960) 4.34 % 7.45 % (1) The Company had elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The change in unrealized gain or loss related to these mortgage loans are recorded in the condensed consolidated statements of operations. (2) Loans that were delinquent for 60 days or more are considered non-performing. Changes in Unrealized Gains and Losses During the three and nine months ended September 30, 2016 and September 30, 2015, the Company recorded the following changes in unrealized gain or loss relating to the mortgage loans held for investment and held for sale previously held for investment: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ — $ (5,753,002) $ (20,640,826) $ (5,632,684) Accretable Yield The following table presents the change in accretable yield for the Company's mortgages held for investment which had shown evidence of credit deterioration since origination at the time of purchase for the nine months ended September 30, 2016 and September 30, 2015: Nine Months Ended September 30, 2016 September 30, 2015 Accretable yield, beginning of period $ 247,751,944 $ 267,509,905 Accretion (2,410,833) (19,347,512) Reclassifications from nonaccretable difference — 7,760,664 Reduction due to sale of loans (245,341,111) — Accretable yield, end of period $ — $ 255,923,057 Newly originated loans at the time of purchase Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Aggregate Unpaid Principal Balance $ — $ 8,291,350 $ 23,941,629 $ 11,171,269 Loan Repurchase Facilities Used $ — $ 7,265,036 $ 21,289,983 $ 9,746,638 September 30, 2016 Unpaid Gross Unrealized (1) Weighted Average Principal Amortized Unleveraged Balance Premium Cost Gains Losses Fair Value Coupon Yield Performing Fixed $ 30,415,184 $ 510,133 $ 30,925,317 $ 512,361 $ (16,461) $ 31,421,217 4.84 % 4.57 % ARM 8,361,495 118,145 8,479,640 56,324 (5,549) 8,530,415 4.45 4.86 Total Mortgage Loans Held for Investment $ 38,776,679 $ 628,278 $ 39,404,957 $ 568,685 $ (22,010) $ 39,951,632 4.75 % 4.56 % December 31, 2015 Unpaid Gross Unrealized (1) Weighted Average Principal Amortized Unleveraged Balance Premium Cost Gains Losses Fair Value Coupon Yield Performing Fixed $ 17,674,257 $ 315,860 $ 17,990,117 $ 58,069 $ (99,486) $ 17,948,700 5.05 % 4.89 % ARM 3,068,259 44,875 3,113,134 — (18,280) 3,094,854 4.37 4.25 Total Mortgage Loans Held for Investment $ 20,742,516 $ 360,735 $ 21,103,251 $ 58,069 $ (117,766) $ 21,043,554 4.95 % 4.79 % (1) The Company has elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The Company recorded the following as change in unrealized gain or loss on mortgage loans held for investment and held for sale previously held for investment in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ (71,687) $ 102,078 $ 606,377 $ 29,001 Concentrations September 30, December 31, Percentage of fair value of mortgage loans with unpaid principal balance to current property value in excess of 100% — % 44.1 % Percentage of fair value of mortgage loans secured by properties in the following states: Each representing 10% or more of fair value: California 47.5 % 26.2 % Florida — % (1) 16.1 % Additional state representing more than 5% of fair value: Texas 8.1 % — % (2) Louisiana 6.6 % — % (2) Georgia 6.6 % 6.1 % Percentage of unpaid principal balance of mortgage loans carrying mortgage insurance — % 8.2 % (1) State did not represent more than 10% of the fair value as of the balance sheet date. (2) State did not represent more than 5% of the fair value as of the balance sheet date. September 30, December 31, Interest rates 3.50% - 6.75 % 1.75% – 12.20 % Contractual maturities 15 – 30 years 1 – 45 years REO September 30, December 31, Net realizable value (included in other assets in the Company's consolidated balance sheets) $ — $ 1,784,670 Carrying amount of mortgage loans held for investment, at fair value secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction — 5,597,611

Mortgage Loans Held for Sale, a

Mortgage Loans Held for Sale, at Fair Value	9 Months Ended
	Sep. 30, 2016
Receivables Held-for-sale [Abstract]
Receivables Held For Sale [Text Block]	6. Mortgage Loans Held for Sale, at Fair Value Nine Months Ended September 30, 2016 September 30, 2015 Balance at beginning of period $ 115,942,230 $ 97,690,960 Originations and purchases 1,632,229,133 1,449,538,666 Proceeds from sales and principal payments (1,674,425,261) (1,481,473,208) Transfers from mortgage loans held for investment, at cost — 65,983 Gain on sale, net 60,587,171 48,848,410 Balance at end of period $ 134,333,273 $ 114,670,811 Gain on sale, net, includes (i) gains and losses from the sale of mortgage loans held for sale and are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and (ii) the unrealized gains and losses associated with the mortgage loans held for sale. September 30, 2016 December 31, 2015 Unpaid Unpaid Principal Principal Balance Fair Value Balance Fair Value Conventional $ 80,090,505 $ 82,145,748 $ 54,962,904 $ 56,586,717 Governmental 19,296,747 21,760,490 30,531,301 32,131,354 United States Department of Agriculture loans 20,189,456 21,407,652 16,222,152 17,059,982 United States Department of Veterans Affairs loans 7,701,386 8,456,556 8,922,978 9,314,255 Reverse mortgage 491,376 562,827 754,089 849,922 Total $ 127,769,470 $ 134,333,273 $ 111,393,424 $ 115,942,230

Real Estate Securities and Othe

Real Estate Securities and Other Investment Securities, at Fair Value	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	7. Real Estate Securities and Other Investment Securities, at Fair Value The Company's non-Agency RMBS portfolio is not issued or guaranteed by Fannie Mae, Freddie Mac or any other U.S. Government agency or a federally chartered corporation and is therefore subject to additional credit risks. September 30, 2016 Principal or Gross Unrealized (2) Weighted Average Notional Premium Amortized Unleveraged Balance (Discount) Cost Gains Losses Fair Value Coupon Yield Real estate securities Non-Agency RMBS: Alternative – A $ 53,343,081 $ (28,651,212) $ 24,691,869 $ 843,160 $ (892,843) $ 24,642,186 2.05 % 5.29 % Pay option adjustable rate 33,130,938 (5,338,366) 27,792,572 84,743 (1,716,710) 26,160,605 1.27 4.12 Prime 30,189,757 (3,769,477) 26,420,280 733,888 (225,018) 26,929,150 3.82 5.53 Subprime 10,224,584 (3,655,606) 6,568,978 545,827 (92,571) 7,022,234 0.68 6.60 Total non-Agency RMBS $ 126,888,360 $ (41,414,661) $ 85,473,699 $ 2,207,618 $ (2,927,142) $ 84,754,175 2.16 % 5.09 % Other Investment Securities (1) $ 13,387,632 $ 84,626 $ 13,472,258 $ 518,537 $ (42,843) $ 13,947,952 5.05 % 5.90 % December 31, 2015 Principal or Gross Unrealized (2) Weighted Average Notional Premium Amortized Unleveraged Balance (Discount) Cost Gains Losses Fair Value Coupon Yield Real estate securities Non-Agency RMBS: Alternative – A $ 76,328,172 $ (40,150,416) $ 36,177,756 $ 846,318 $ (1,025,899) $ 35,998,175 2.01 % 6.18 % Pay option adjustable rate 42,562,819 (7,480,996) 35,081,823 6,863 (2,879,148) 32,209,538 1.10 5.31 Prime 37,366,079 (4,732,637) 32,633,442 563,311 (714,232) 32,482,521 3.62 5.95 Subprime 12,668,092 (4,039,253) 8,628,839 111,651 (91,443) 8,649,047 0.93 6.63 Total non-Agency RMBS $ 168,925,162 $ (56,403,302) $ 112,521,860 $ 1,528,143 $ (4,710,722) $ 109,339,281 2.05 % 5.87 % Other Investment Securities (1) $ 13,398,851 $ (34,264) $ 13,364,587 $ 897 $ (561,288) $ 12,804,196 4.94 % 6.65 % (1) See Note 2 – Summary of Significant Accounting Policies – “Other Investment Securities". (2) The Company has elected the fair value option pursuant to ASC 825 for real estate securities. The Company recorded the changes in unrealized gain or loss in the condensed consolidated statements of operations. September 30, 2016 December 31, 2015 Non-Agency RMBS Other Investment Non-Agency RMBS Other Investment Notional balance of IO included in Alternative A $ 24,512,929 — $ 35,042,860 — Contractual maturities (range) 18.6 to 30.5 years 7.7 to 11.6 years 18.1 to 31.3 years 8.4 to 12.3 years Weighted average maturity 24.2 years 9.3 years 24.4 years 10.1 years Actual maturities are generally shorter than stated contractual maturities. Maturities are affected by the contractual lives of the associated mortgage collateral, periodic payments of principal, prepayments of principal and credit losses. All real estate securities and Other Investment Securities held by the Company at September 30, 2016 and December 31, 2015 were issued by issuers based in the United States. The Company did not have any realized losses on real estate securities relating to other than temporary impairments for the three or nine months ended September 30, 2016 or September 30, 2015.

Mortgage Servicing Rights, at F

Mortgage Servicing Rights, at Fair Value	9 Months Ended
	Sep. 30, 2016
Transfers and Servicing [Abstract]
Transfers and Servicing of Financial Assets [Text Block]	8. Mortgage Servicing Rights, at Fair Value The Company's MSRs consist of conforming conventional loans sold to Fannie Mae and Freddie Mac or loans securitized in Ginnie Mae securities. Similarly, the government loans serviced by the Company are securitized through Ginnie Mae, whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Department of Veterans Affairs. Nine Months Ended September 30, September 30, 2016 2015 Balance at beginning of period $ 48,209,016 $ 33,378,978 Additions due to loans sold, servicing retained 17,437,135 14,323,953 Change in fair value of MSRs (1) Changes in values of market related inputs or assumptions used in a valuation model (2) (9,934,160) (3,571,775) Other changes (3) (5,529,398) (2,086,505) Total - change in fair value of MSRs (15,463,558) (5,658,280) Balance at end of period $ 50,182,593 $ 42,044,651 Nine Months Ended September 30, September 30, 2016 2015 The amount of total losses included in earnings attributable to the change in unrealized gains or losses relating to the MSRs still held at the reporting date $ (9,934,160) $ (3,571,775) (1) Included in change in fair value of MSRs in the Company's condensed consolidated statements of operations. (2) Primarily reflects changes in values of prepayment assumptions due to changes in interest rates. (3) Represents change in value primarily due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid off or paid down during the period. September 30, 2016 December 31, 2015 Unpaid Principal Unpaid Principal Balance Fair Value Balance Fair Value Fannie Mae $ 2,116,921,260 $ 19,905,312 $ 1,880,177,827 $ 20,751,648 Ginnie Mae 1,718,154,049 18,247,015 1,488,159,758 18,231,527 Freddie Mac 1,285,693,305 12,030,266 805,589,808 9,225,841 Total $ 5,120,768,614 $ 50,182,593 $ 4,173,927,393 $ 48,209,016 September 30, December 31, 2016 2015 Discount rate: Range 6.5% - 12.1 % 6.6%-12.2 % Weighted average 9.4 % 9.4 % Effect on fair value of adverse change of: 5% $ (887,857) $ (958,786) 10% $ (1,745,636) $ (1,881,870) 20% $ (3,376,644) $ (3,628,281) Prepayment speed (1) Range 8.9% - 16.1 % 7.0%-12.0 % Weighted average 12.5 % 9.3 % Effect on fair value of adverse change of: 5% $ (1,203,181) $ (938,584) 10% $ (2,306,597) $ (1,756,195) 20% $ (4,445,283) $ (3,428,890) Per-loan annual cost of servicing: Range $ 63- $117 $ 64-$119 Weighted average $ 90 $ 92 Effect on fair value of adverse change of: 5% $ (561,962) $ (547,228) 10% $ (1,123,925) $ (1,094,455) 20% $ (2,247,882) $ (2,188,910) (1) Prepayment speed is measured using Constant Prepayment Rates (“CPR”). Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Loan servicing fee income $ 3,521,122 $ 2,729,891 $ 10,033,264 $ 7,613,023 Late fee income 196 29 501 64 Sub-servicing costs (1,383,526) (989,813) (3,786,526) (2,568,246) Loan servicing fee income, net of direct costs $ 2,137,792 $ 1,740,107 $ 6,247,239 $ 5,044,841

Warehouse Lines of Credit

Warehouse Lines of Credit	9 Months Ended
	Sep. 30, 2016
Warehouse Agreement Borrowings [Member]
Debt Disclosure [Text Block]	9. Warehouse Lines of Credit At September 30, 2016 and December 31, 2015, the Company had two warehouse lines of credit and two master repurchase agreements, each with different lenders, which provide financing for the Company's origination of mortgage loans held for sale in its residential mortgage banking segment. The warehouse lines of credit and repurchase agreements bear interest at a rate that has historically moved in close relationship to LIBOR. The agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to net worth ratio and current ratio and limitations on capital expenditures, indebtedness, distributions, transactions with affiliates and maintenance of positive net income, as defined in the agreements. The Company was in compliance with all significant debt covenants at September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and September 30, 2015. September 30, 2016 December 31, 2015 Availability $ 200,000,000 $ 185,000,000 Maturity dates October 2016 – September 2017 June 2016 – November 2016 These obligations are secured by mortgage loans held for sale, at fair value and also fully guaranteed by the Company. The Company expects to renew the warehouse lines of credit at similar terms in the ordinary course of business as the facilities mature.

Treasury Securities and Treasur

Treasury Securities and Treasury Securities Repurchase Agreements	9 Months Ended
	Sep. 30, 2016
Treasury Securities and Treasury Repurchase Agreements [Abstract]
Treasury Securities and Treasury Repurchase Agreements [Text Block]	10. Treasury Securities and Treasury Securities Repurchase Agreements Par $ 70,000,000 Carrying amount 69,993,637 Maturity October 20, 2016 Balance sheet line item Cash and cash equivalents The Treasury Securities are non-interest bearing. The Company did not have any Treasury Securities at December 31, 2015. Outstanding balance $ 69,994,283 Interest rate 0.30 % Maturity October 20, 2016 The Company did not have any treasury securities repurchase agreements at December 31, 2015.

Loan Repurchase Facilities

Loan Repurchase Facilities	9 Months Ended
	Sep. 30, 2016
Line of Credit [Member]
Debt Disclosure [Text Block]	11. Loan Repurchase Facilities In connection with the sale of its seasoned, re-performing mortgage loans on May 26, 2016, the Company repaid the outstanding balance under and terminated the Citi Loan Repurchase Facility which had been used to finance the purchase of such loans (see Note 5 – Mortgage Loans Held for Investment, at Fair Value and held for Sale Previously Held for Investment, at Fair Value). September 30, 2016 December 31, 2015 Credit Suisse Credit Suisse First First Boston Boston Mortgage Citibank, N.A Mortgage Lender Capital LLC Distressed and Capital LLC Newly Re- Newly Originated Performing Originated Collateral type funded by facility Loans Loans Loans Total facility size $ 15,000,000 $ 325,000,000 $ 100,000,000 Amount committed $ — $ 150,000,000 $ 25,000,000 Maturity date November 11, 2016 May 20, 2016 June 27, 2016 Outstanding balance $ 15,000,000 $ 279,467,573 $ 17,321,757 On September 30, 2016 the terms of the Credit Suisse Loan Repurchase Facility were amended to extend the maturity date to November 11, 2016 36.0 15.0 15.0 Each of the Loan Repurchase Facilities is or was collateralized by the underlying mortgages and related documents and instruments in the residential mortgage investments segment and the obligations are fully guaranteed by the Company. Under the Loan Repurchase Facilities, the Company may sell, and later repurchase trust certificates representing interests in residential mortgage loans (the "Trust Certificates"). The principal amount paid by the lenders under these facilities for the Trust Certificates, which represent interests in residential mortgage loans, is or was based on (i) in the case of the Citi Loan Repurchase Facility, a percentage of the lesser of the market value and the unpaid principal balance of such mortgage loans backing the Trust Certificates and (ii) in the case of the Credit Suisse Loan Repurchase Facility, a percentage of the lesser of the market value, the unpaid principal balance and the acquisition price of such mortgage loans backing the Trust Certificates. Upon the Company's repurchase of a Trust Certificate sold to the lenders under these facilities, the Company is or was required to repay the lenders a repurchase amount based on the purchase price plus accrued interest. The Company is or was also required to pay the lenders a commitment fee pursuant to each of these facilities, as well as certain other administrative costs and expenses in connection with the lenders' structuring, management and ongoing administration of these facilities. The commitment fees are included in interest expense in the condensed consolidated statements of operations. The Company pledges cash and certain of its Trust Certificates as collateral under the Loan Repurchase Facilities. The amounts available to be borrowed are dependent upon the fair value of the Trust Certificates pledged as collateral, which fluctuates with changes in interest rates, type of underlying mortgage loans and liquidity conditions within the banking, mortgage finance and real estate industries. In response to declines in the fair value of pledged Trust Certificates, the lenders may require the Company to post additional collateral or pay down borrowings to re-establish agreed upon collateral requirements, referred to as margin calls. At September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and September 30, 2015, the Company has met all margin call requirements related to any outstanding balances under its Loan Repurchase Facilities. September 30, December 31, 2016 2015 Fair value of Trust Certificates pledged as collateral $ 35,615,300 $ 394,942,512 Cash pledged as collateral — 375,579 The agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth and maximum debt to net worth ratio, as defined in the agreements. The Company was in compliance with all significant debt covenants at September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and September 30, 2015.

Securities Repurchase Agreement

Securities Repurchase Agreements	9 Months Ended
	Sep. 30, 2016
Disclosure of Repurchase Agreements [Abstract]
Securities Repurchase Agreements [Text Block]	12. Securities Repurchase Agreements Securities repurchase agreements related to real estate securities and Other Investment Securities involve the sale and a simultaneous agreement to repurchase the transferred assets or similar assets at a future date. The amount borrowed generally is equal to the fair value of the assets pledged less an agreed-upon discount, referred to as a "haircut." Repurchase agreements related to real estate securities and Other Investment Securities entered into by the Company are accounted for as financings and require the repurchase of the transferred securities at the end of each arrangement's term, typically 30 to 90 days. The Company maintains the beneficial interest in the specific securities pledged during the term of the repurchase arrangement and receives the related principal and interest payments. Interest rates on these borrowings are fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the repurchase arrangement at which time the Company may enter into a new repurchase arrangement at prevailing market rates with the same counterparty or repay that counterparty and negotiate financing with a different counterparty. In response to declines in the fair value of pledged securities due to changes in market conditions or the publishing of monthly security paydown factors, the lender requires the Company to post additional securities as collateral, pay down borrowings or establish cash margin accounts with the counterparty in order to re-establish the agreed-upon collateral requirements, referred to as margin calls. Under the terms of the Company's master repurchase agreements related to real estate securities and Other Investment Securities, the counterparty may sell or re-hypothecate the pledged collateral. The Company has master repurchase agreements with four financial institutions at September 30, 2016 and December 31, 2015. Although securities repurchase agreements are committed borrowings until maturity, the lender retains the right to mark the underlying collateral to fair value. A reduction in the fair value of pledged assets would require the Company to provide additional collateral or cash to fund margin calls. The Company pledges cash and certain of its non-Agency RMBS and Other Investment Securities as collateral under these securities repurchase agreements. The amounts available to be borrowed are dependent upon the fair value of the RMBS and Other Investment Securities pledged as collateral, which fluctuates with changes in interest rates, type of securities and liquidity conditions within the banking, mortgage finance and real estate industries. In response to declines in the fair value of pledged RMBS and Other Investment Securities, the lenders may require the Company to post additional collateral or pay down borrowings to re-establish agreed upon collateral requirements, referred to as margin calls. At September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and September 30, 2015, the Company has met all margin call requirements under its securities repurchase agreements. September 30, December 31, 2016 2015 Fair value of non-Agency RMBS pledged as collateral $ 82,686,633 $ 95,627,850 Fair value of Other Investment Securities pledged as collateral 11,023,416 1,989,174 Cash pledged as collateral 1,559,606 2,029,581

8.0% Exchangeable Senior Notes

8.0% Exchangeable Senior Notes due 2016	9 Months Ended
	Sep. 30, 2016
Notes Payable [Abstract]
8.0% Exchangeable Senior Notes due 2016 [Text Block]	13. 8.0% Exchangeable Senior Notes due 2016 On November 25, 2013, the Operating Partnership issued the Exchangeable Senior Notes with a stated rate of 8.0 57.5 55.3 1.7 2.2 The Exchangeable Senior Notes are the Company's senior unsecured obligations and rank senior in right of payment to the Company's existing and future indebtedness that is expressly subordinated in right of payment to the Exchangeable Senior Notes; equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company's secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries, financing vehicles or similar facilities. The Exchangeable Senior Notes are exchangeable for shares of the Company's common stock or, to the extent necessary to satisfy New York Stock Exchange (“NYSE”) listing requirements, cash, at the applicable exchange rate at any time prior to the close of business on the scheduled trading day prior to November 15, 2016 (the "Maturity Date"). The Company may not elect to issue shares of common stock upon exchange of the Exchangeable Senior Notes to the extent such election would result in the issuance of 20 1,779,560 As a result of the NYSE related limitation on the use of share-settlement for the full conversion option, the embedded conversion option does not qualify for equity classification and instead is separately valued and accounted for as a derivative liability. The initial value allocated to the derivative liability was $ 1.3 The exchange rate was initially 52.5417 19.03 0.50 60.4229 1,000 54.3103 0.55 The Company does not have the right to redeem the Exchangeable Senior Notes prior to the Maturity Date, except to the extent necessary to preserve its qualification as a REIT for U.S. federal income tax purposes. No sinking fund is provided for the Exchangeable Senior Notes. In addition, if the Company undergoes certain corporate events that constitute a "fundamental change," the holders of the Exchangeable Senior Notes may require the Company to repurchase for cash all or part of their Exchangeable Senior Notes at a repurchase price equal to 100 The Exchangeable Senior Notes bear interest at a rate of 8.0% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2014. The effective interest rate of the Exchangeable Senior Notes, which is equal to the stated rate of 8.0% plus the amortization of the original issue discount and associated costs, is 10.2 September 30, December 31, 2016 2015 Fair value of conversion option derivative liability $ 2,288 $ 612,878 Unamortized discount 144,225 990,954

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments [Text Block]	14. Derivative Instruments The Company’s derivative instruments, by segment, are as follows: Residential Mortgage Investments Segment Interest Rate Swap Agreements To help mitigate exposure to higher short-term interest rates, the Company uses currently-paying and forward-starting, three-month LIBOR-indexed, pay-fixed, receive-variable, interest rate swap agreements. These swap agreements establish an economic fixed rate on related borrowings because the variable-rate payments received on the interest rate swap agreements largely offset interest accruing on the related borrowings, leaving the fixed-rate payments to be paid on the interest rate swap agreements as the Company's effective borrowing rate, subject to certain adjustments including changes in spreads between variable rates on the interest rate swap agreements and actual borrowing rates. The Company's interest rate swap agreements have not been designated as hedging instruments. Loan Purchase Commitments (“LPCs”) The Company entered into LPCs as a means to help mitigate interest rate risk relating to its loan conduit program. The LPCs were pursuant to Master Loan Purchase Agreements with approved, third party residential loan originators to purchase residential loans, which met the guidelines established by the Company, at a future date. LPCs provided that loans acceptable to the Company were to be delivered if and when they close and were subject to "pair off" fees if the loans were not delivered by the seller. The Company did not have any LPCs outstanding at September 30, 2016. Residential Mortgage Banking Segment IRLCs The Company enters into IRLCs to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 90 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. MBS Forward Sales Contracts and TBA Securities The Company manages the interest rate price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative instruments such as MBS forward sales contracts, some of which are TBA securities. The Company expects these derivatives will experience changes in fair value opposite to changes in the fair value of the IRLCs and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the IRLCs and mortgage loans held for sale it wants to economically hedge. Other Conversion Option – Exchangeable Senior Notes Changes in the fair value of the conversion option derivative related to the Exchangeable Senior Notes are recorded through earnings. Derivative Instruments Non-hedge derivatives September 30, 2016 December 31, 2015 Notional amount of interest rate swaps $ 17,200,000 $ 17,200,000 LPCs (Principal balance of underlying loans) — 18,494,332 IRLCs (Principal balance of underlying loans) 314,509,503 190,933,017 Notional amount of MBS forward sales contracts 324,500,000 179,417,280 The notional amount is not representative of the maximum exposure to the Company. September 30, December 31, Derivative instruments Designation Balance Sheet Location 2016 2015 Interest rate swaps Non-hedge Derivative liabilities, at fair value $ (1,699,719) $ (1,009,014) LPCs Non-hedge Derivative assets (liabilities), at fair value — (9,871) IRLCs Non-hedge Derivative assets, at fair value 5,462,467 2,376,187 MBS forward sales contracts Non-hedge Derivative liabilities, at fair value (1,222,695) (200,204) Conversion Option - Exchangeable Senior Notes Non-hedge Derivative liabilities, at fair value (2,288) (612,878) At September 30, 2016 and December 31, 2015, no credit valuation adjustment was made in determining the fair value of the interest rate swaps. Three Months Ended Nine Months Ended Income Statement September September 30, September 30, September 30, Non-hedge derivatives Location 30, 2016 2015 2016 2015 Interest rate swaps Gain/(loss) on derivative instruments related to investment portfolio $ 122,914 $ (675,562) $ (1,010,063) $ (748,348) LPCs Gain/(loss) on derivative instruments related to investment portfolio — 118,277 9,871 51,443 IRLCs Mortgage banking activities, net (911,307) 1,227,839 3,086,280 992,196 MBS forward sales contracts Mortgage banking activities, net 1,545,236 (1,593,515) (1,022,491) (631,445) Exchangeable Senior Notes conversion option Gain/(loss) on derivative instruments related to investment portfolio 94,079 379,615 610,590 1,013,602 Interest Rate Swaps September 30, December 31, 2016 2015 Maturity 2023 2023 Notional Amount $ 17,200,000 $ 17,200,000 Weighted Average Pay Rate 2.72 % 2.72 % Weighted Average Receive Rate 0.65 % 0.33 % Weighted Average Years to Maturity 6.8 7.6 Cash Pledged as Collateral (1) $ 2,658,185 $ 1,966,565 (1) At September 30, 2016 and December 31, 2015 all collateral provided under the interest rate swap agreements consisted of cash collateral which is included in restricted cash in the Company's consolidated balance sheets. The Company's interest rate swap agreements contain legally enforceable provisions that allow for netting or setting off of all individual interest rate swap receivables and payables with each respective counterparty and, therefore, the fair value of those interest rate swap agreements are netted (see Note 24 – Offsetting Assets and Liabilities). The credit support annex provisions of the Company's interest rate swap agreements allow the parties to mitigate their credit risk by requiring the party which is out of the money to post collateral.

Mortgage Banking Activities

Mortgage Banking Activities	9 Months Ended
	Sep. 30, 2016
Mortgage Banking [Abstract]
Mortgage Banking Income Expense Disclosure [Text Block]	15. Mortgage Banking Activities Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Gain on sale of mortgage loans held for sale, net of direct costs (1) $ 14,702,874 $ 12,769,854 $ 41,786,819 $ 35,530,805 Loan expenses, including the (increase)/decrease in provision for loan indemnifications 995,078 (208,576) 573,127 (602,926) Loan origination fee income 195,567 507,082 765,926 1,395,863 Total $ 15,893,519 $ 13,068,360 $ 43,125,872 $ 36,323,742 (1) Includes the change in fair value related to IRLCs and MBS forward sales contracts held during the period.

Loan Indemnification Reserve

Loan Indemnification Reserve	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Loan Indemnification Reserve [Text Block]	16. Loan Indemnification Reserve A liability has been established for potential losses related to representations and warranties made by GMFS for loans sold with a corresponding provision recorded for loan indemnification losses. The liability is included in accounts payable and other liabilities in the Company's consolidated balance sheets and the provision for loan indemnification losses is included in mortgage banking activities, net in the Company's condensed consolidated statements of operations. In assessing the adequacy of the liability, management evaluates various factors including historical repurchases and indemnifications, historical loss experience, known delinquent and other problem loans, outstanding repurchase demand, historical rescission rates and economic trends and conditions in the industry. Actual losses incurred are reflected as a reduction of the reserve liability. Nine Months Ended September 30, September 30, 2016 2015 Balance at the beginning of period $ 3,201,000 $ 2,662,162 Loan indemnification losses incurred — (198,834) Provision for loan indemnification losses based on loans sold during the period 648,375 576,654 Decrease in reserves for aged performing loans (1,297,943) — Balance at end of period $ 2,551,432 $ 3,039,982 Because of the uncertainty in the various estimates underlying the loan indemnification reserve, there is a range of losses in excess of the recorded loan indemnification reserve that is reasonably possible. The estimate of the range of possible losses for representations and warranties does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change. At September 30, 2016 and December 31, 2015, the reasonably possible loss above the recorded loan indemnification reserve was not considered material.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes [Text Block]	17. Income Taxes For the three and nine months ended September 30, 2016 and the years ended December 31, 2011 through December 31, 2015, the Company qualified to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders and does not engage in prohibited transactions. The majority of States also recognize the Company’s REIT status. The Company has separately made joint elections with three of its subsidiaries, ZFC Funding, Inc., ZFC Trust TRS I, LLC and ZFC Honeybee TRS, LLC to treat such subsidiaries as TRS entities. The Company’s TRS entities file separate tax returns and are taxed as standalone C-Corporations for U.S. income tax purposes. The Company recorded an income tax expense (benefit) of $ 1,799,829 251,924 (250,491) 2,503,896 Reconciliation of Statutory Tax Rate to Effective Tax Rate Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Tax expense (benefit) at statutory rate 34.00 % (35.00) % (34.00) % 35.00 State and local taxes, net of federal benefit 3.95 (0.85) 137.62 7.91 Impact of REIT election (1) (7.28) 29.21 950.93 17.63 Change in valuation allowance (2) (0.79) 2.85 (738.43) 23.25 Other non-deductible/non-taxable items (3) 0.11 0.19 82.52 1.98 Adjustment of Tax Rate used to value deferred taxes (4) 0.09 0.0 8.54 0.0 Effective Tax Rate 30.08 % (3.60) % 407.18 % 85.77 % (1) For all tax years, the Company’s effective tax rate differs from its statutory tax rate due to the deduction for dividend distributions required to be paid under Code section 857(a). (2) For the three and nine months ended September 30, 2016 and September 30, 2015, the change in valuation allowance relates to the change in reserve related to net operating losses and other future deductible items for ZFC Trust TRS I, LLC and ZFC Funding, Inc. (3) For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to non-deductible meals and entertainment expenses. (4) For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to the change in state income tax used to value deferred tax assets and liabilities of ZFC Honeybee TRS LLC. At September 30, 2016 and December 31, 2015, the Company had a net deferred tax liability of $ 3,816,401 3,564,478 On September 30, 2016, ZFC Funding Inc. made a liquidating distribution of its entire portfolio of residential loans and the corresponding liabilities to its sole stockholder, the Operating Partnership. For tax purposes, ZFC Funding Inc. recognized capital gain related to the sale. ZFC Funding Inc. has maintained a full valuation allowance on deferred tax assets related to net operating losses of the company as it does not have any income producing assets or operations left after this distribution.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	18. Earnings Per Share Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Numerator: Net income/(loss) attributable to ZAIS Financial Corp. common stockholders (Basic) $ 4,110,691 $ (6,040,746) $ 33,938 $ 386,845 Effect of dilutive securities: Net income/(loss) allocated to non-controlling interests relating to OP Units exchangeable for shares of common stock of the Company 28,329 (702,460) (445,746) 44,988 Exchangeable Senior Notes: Interest expense 841,723 — — — Gain on conversion option derivative liability (53,611) — — — Total – Exchangeable Senior Notes 788,112 — — — Net income/(loss) available to stockholders, after effect of dilutive securities $ 4,927,132 $ (6,743,206) $ (411,808) $ 431,833 Denominator: Weighted average number of shares of common stock 8,836,902 7,970,886 8,261,665 7,970,886 Effect of dilutive securities: Weighted average number of OP units 60,898 926,914 636,135 926,914 Weighted average number of shares convertible under Exchangeable Senior Notes 1,779,560 — — — Diluted weighted average shares outstanding 10,677,360 8,897,800 8,897,800 8,897,800 Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders – Basic $ 0.47 $ (0.76) $ — $ 0.05 Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders – Diluted $ 0.46 $ (0.76) $ — $ 0.05 For purposes of computing diluted earnings per share, the Company assumes the conversion of OP Units and the Exchangeable Senior Notes to shares of common stock unless the effect is anti-dilutive. The dilutive effect of OP Units, if any, is computed assuming all units are converted to common stock. The dilutive effect of the Exchangeable Senior Notes, if any, is computed assuming shares converted are limited to 1,779,560

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transaction [Text Block]	19. Related Party Transactions ZAIS REIT Management, LLC The Company is externally managed and advised by the Advisor, a subsidiary of ZAIS. Subject to certain restrictions and limitations, the Advisor is responsible for managing the Company's affairs on a day-to-day basis including, among other responsibilities, (i) the origination, selection, purchase and sale of the Company's portfolio of assets, (ii) arranging the Company's financing activities and (iii) providing the Company with advisory services. The Company pays to its Advisor an advisory fee, calculated and payable quarterly in arrears, equal to 1.5 After an initial three-year term, the Advisor may be terminated annually upon the affirmative vote of at least two-thirds of the Company's independent directors or by a vote of the holders of at least two-thirds of the outstanding shares of the Company's common stock based upon (i) unsatisfactory performance by the Advisor that is materially detrimental to the Company or (ii) a determination that the advisory fees payable to the Advisor are not fair, subject to the Advisor's right to prevent such termination due to unfair fees by accepting a reduction of advisory fees agreed to by at least two-thirds of the Company's independent directors. Additionally, upon such a termination without cause, the Investment Advisory Agreement provides that the Company will pay the Advisor a termination fee equal to three times the average annual advisory fee earned by the Advisor during the prior 24-month period immediately preceding such termination, calculated as of the end of the most recently completed fiscal year before the date of termination (see Note 1 – Formation and Organization for disclosure relating to the Termination Agreement entered into by the Company, the Operating Partnership, the Advisor, Sutherland and certain subsidiaries of the Company). On August 11, 2014, the Company amended its Investment Advisory Agreement to provide that the Company shall pay its Advisor a loan sourcing fee quarterly in arrears in lieu of any payments or reimbursements that would otherwise be due to the Advisor or its affiliates pursuant to Investment Advisory Agreement for loan sourcing services provided. The loan sourcing fee is equal to 0.50 On March 17, 2015, a business combination was completed between HF2 Financial Management Inc. ("HF2 Financial"), a special purpose acquisition company, and ZAIS Group Parent, LLC ("ZGP"), which wholly owns ZAIS, pursuant to a definitive agreement dated September 16, 2014. The current owners of ZGP did not receive any proceeds at the closing of the transaction and retained a significant equity stake in ZGP. Following the close of the transaction, ZAIS's management team has remained in place to continue to lead the combined organization. Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Advisory fees $ 722,135 $ 718,372 $ 2,143,262 $ 2,131,690 Loan sourcing fees — 41,694 119,708 56,664 Total – Advisory fees – related party $ 722,135 $ 760,066 $ 2,262,970 $ 2,188,354 Such amounts are included in "Advisory fee – related party" in the Company's condensed consolidated statements of operations. Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 96,728 $ 168,134 $ 506,457 $ 604,959 Such amounts are included in operating expenses in the Company's condensed consolidated statements of operations. September 30, December 31, 2016 2015 $ 763,085 $ 867,415 Such amounts were included in accounts payable and other liabilities in the Company's consolidated balance sheets. Other Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 10,800 $ 10,800 $ 32,400 $ 28,160 Such amounts are included in other income in the Company's condensed consolidated statements of operations.

Dividends and Distributions

Dividends and Distributions	9 Months Ended
	Sep. 30, 2016
Dividends [Abstract]
Dividends and Distributions [Text Block]	20. Dividends and Distributions Amount per Share Declaration Date Record Date Payment Date and OP Unit Nine months ended September 30, 2016: March 17, 2016 March 31, 2016 April 15, 2016 $ 0.40 June 16, 2016 June 30, 2016 July 15, 2016 0.40 September 11, 2016 September 30, 2016 October 17, 2016 0.40 Nine months ended September 30, 2015: March 19, 2015 March 31, 2015 April 15, 2015 $ 0.40 June 18, 2015 June 30, 2015 July 15, 2015 0.40 September 17, 2015 September 30, 2015 October 15, 2015 0.40

Non-Controlling Interests

Non-Controlling Interests	9 Months Ended
	Sep. 30, 2016
Noncontrolling Interest [Abstract]
Noncontrolling Interest Disclosure [Text Block]	21. Non-Controlling Interests On June 17, 2016, the Company, as the general partner of the Operating Partnership, received a redemption request (the “Redemption Request”) from one of the Partnership's outside limited partners (the “Outside Limited Partner”) in respect of a total of 866,016 893,256 On July 1, 2016, the Company, as general partner of the Operating Partnership, entered into the Fifth Amendment to the Agreement of Limited Partnership of the Operating Partnership, pursuant to which the Company, as the general partner of the Partnership, acquired the 866,016 operating partnership units from the Outside Limited Partner and issued an equal number of shares of the Company’s common stock (the “Exchange Stock”) to the Outside Limited Partner pursuant to the terms of the Operating Partnership’s Agreement of Limited Partnership of the Operating Partnership. The Exchange Stock was issued to an accredited investor in transactions not involving a public offering in reliance on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended. The resale of the Exchange Stock has been registered by the Company under the Securities Act, pursuant to the Company’s Registration Statement on Form S-3/A (File No. 333-194551), filed on May 23, 2014 and declared effective by the SEC on the same date.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Matters and Contingencies [Text Block]	22. Commitments and Contingencies Advisor Services The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company's investment portfolio including determination of fair value; and other general and administrative responsibilities. In the event that the Advisor is unable to provide the respective services, the Company will be required to obtain such services from an alternative source. Litigation From time to time, the Company may become involved in various claims and legal actions arising in the ordinary course of business. Tolling Agreement In April 2015, GMFS received a demand from a counterparty of GMFS with respect to residential mortgage loans that were sold servicing released by GMFS to this counterparty’s predecessor prior to its acquisition by the Company on October 31, 2014. GMFS has since executed statute of limitations tolling agreements with this counterparty which have been extended to expire on December 31, 2016 but can be further extended by agreement of the parties (the initial tolling agreement was executed by GMFS on December 12, 2013). Although the Company has established a loan indemnification reserve for potential losses related to loan sale representations and warranties with a corresponding provision recorded for loan losses (see Note 16 – Loan Indemnification Reserve), due to the limited information available at this stage of the matter, the Company is not able to determine the likelihood of the outcome or estimate an amount of loss or range of losses. The Company believes that any losses in excess of the loan indemnification reserve will be recovered by the Company as either a reduction of total contingent consideration owed under the GMFS Merger Agreement given the indemnification provisions in the GMFS Merger Agreement or by withdrawing funds from an escrow account established by the sellers at the time of the acquisition (as of September 30, 2016, the balance in the escrow account was $ 4,008,754 Losses in excess of the loan indemnification reserve, total contingent consideration and the escrow account could have a material adverse impact on the Company's results of operations, financial position or cash flows. In the event of litigation or settlement with the counterparty, the Company intends to pursue claims against the sellers of GMFS seeking indemnification for any losses or any amounts paid in settlement, although there can be no assurance that such claims would be successful or that any amounts available for indemnification would be adequate. Class Action Lawsuit On August 24, 2016, a putative class action lawsuit, captioned Sean Dexter, Individually and On Behalf of All Others Similarly Situated v. ZAIS Financial Corp., et al. The Company and the other named defendants continue to believe that the claims asserted in the Complaint are without merit, and further believe that no supplemental disclosure is required under applicable laws. However, the Company decided to make certain supplemental disclosures related to the Sutherland Merger, and on September 19, 2016, in connection with the filing of these supplemental disclosures, plaintiff Sean Dexter voluntarily withdrew the motion for a preliminary injunction, the Court cancelled the preliminary injunction hearing, and the lawsuit is resolved but for the Court's consideration of plaintiff's motion for an award of attorneys' fees, if any. Due to the limited information available at this stage of the matter, the Company is not able to determine the likelihood of the outcome or estimate an amount of loss or range of losses. Other Management is not aware of any other contingencies that would require accrual or disclosure in the condensed consolidated financial statements at September 30, 2016 and December 31, 2015. Operational Update Relating to Flooding in Louisiana Throughout the severe flooding that occurred in southern Louisiana in mid-August 2016, GMFS, headquartered in Baton Rouge, LA., remained fully operational. In particular, GMFS continued to close and sell loans in the ordinary course of business and the production volume was at or above prior quarter levels. GMFS continues to reach out to customers that may have been impacted by the severe flooding. GMFS anticipates that the MSR portfolio may experience higher delinquencies and forbearance while its customers impacted by the flood recover, but does not expect the impact of the flood to have a significant impact on its operations. Commitments to Originate Loans GMFS enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose GMFS to market risk if interest rates change, and the loan is not economically hedged or committed to an investor. GMFS is also exposed to credit loss if the loan is originated and not sold to an investor and the mortgagor does not perform. Upon extension of credit typically consists of a first deed of trust in the mortgagor's residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. September 30, 2016 December 31, 2015 $ 286,616,522 $ 216,072,457 Leases GMFS leases office space in Baton Rouge, Louisiana for its corporate headquarters under a non-cancelable operating lease. The lease provides that GMFS pays taxes, maintenance, insurance, and other occupancy expenses applicable to the leased premises and contains three five-year renewal options at pre-determined amounts specified by the original lease agreement. GMFS also leases space in various states for its branch offices and equipment under various short-term rental agreements. Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 256,556 $ 188,811 $ 752,484 $ 557,331 Such amounts are included in operating expenses in the Company's condensed consolidated statements of operations. GMFS sub-leases a portion of its office space and furniture and fixtures contained therein to a related party (see Note 19 – Related Party Transactions). October 1, 2016 – December 31, 2016 $ 276,140 2017 $ 965,433 2018 $ 755,788 2019 $ 132,703 2020 $ - Thereafter $ -

Counterparty Risk and Concentra

Counterparty Risk and Concentration	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	23. Counterparty Risk and Concentration Counterparty risk is the risk that counterparties may fail to fulfill their obligations, including their inability to post additional collateral in circumstances where their pledged collateral value becomes inadequate. The Company attempts to manage its exposure to counterparty risk through diversification, use of financial instruments and monitoring the creditworthiness of counterparties. The Company finances the acquisition of a significant portion of its mortgage loans held for investment, RMBS and Other Investment Securities with repurchase agreements. Additionally, the Company finances a significant portion of its mortgages held for sale with its warehouse lines of credit and repurchase agreements. In connection with these financing arrangements, the Company pledges its residential mortgage loans, securities and cash as collateral to secure the borrowings. The amount of collateral pledged will typically exceed the amount of the borrowings ( i.e. The Company's deposits with financial institutions may exceed federally insurable limits of $250,000 per institution. In the normal course of business, companies in the mortgage banking industry encounter certain economic and regulatory risks. Economic risks include interest rate risk and credit risk. The Company is subject to interest rate risk to the extent that in a rising interest rate environment, the Company may experience a decrease in loan production, as well as decreases in the value of mortgage loans held for sale and in commitments to originate loans, which may negatively impact the Company's operations. Credit risk is the risk of default that may result from the borrowers' inability or unwillingness to make contractually required payments during the period in which loans are being held for sale. GMFS sells loans to investors without recourse. As such, the investors have assumed the risk of loss or default by the borrower. However, GMFS is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that such representations are breached, or there are early payment defaults, GMFS may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay-off within a specified time frame, GMFS may be required to refund a portion of the sales proceeds to the investors. The Company's business requires substantial cash to support its operating and investing activities. As a result, the Company is dependent on its warehouse lines of credit and repurchase facilities in order to finance its continued operations and investments. If the Company's principal lenders decided to terminate or not to renew any of these credit facilities with the Company, the loss of borrowing capacity could have a material adverse impact on the Company's consolidated financial statements unless the Company found a suitable alternative source. MSRs are subject to substantial interest rate risk and the value of MSRs generally tend to diminish in periods of declining interest rates as borrowers can prepay the mortgage notes underlying the MSRs. MSRs increase in periods of rising interest rates (as prepayments decrease). Although the level of interest rates is a key driver of prepayment activity, there are other factors that influence prepayments, including home prices, underwriting standards and product characteristics.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	9 Months Ended
	Sep. 30, 2016
Offsetting [Abstract]
Offsetting Assets And Liabilities Disclosure [Text Block]	24. Offsetting Assets and Liabilities Net Amounts of Liabilities Gross Amounts Presented in Gross Amounts Not Offset in the Gross Amounts Offset in the the Consolidated Balance Sheets of Recognized Consolidated Consolidated Financial Cash Collateral Liabilities Balance Sheets Balance Sheets Instruments Pledged Net Amount September 30, 2016 Warehouse lines of credit $ 125,737,022 $ — $ 125,737,022 $ (125,737,022) $ — $ — Treasury securities repurchase agreements 69,994,283 — 69,994,283 (69,994,283) — — Credit Suisse Loan Repurchase Facility 15,000,000 — 15,000,000 (15,000,000) — — Securities repurchase agreements 68,112,976 — 68,112,976 (66,553,370) (1,559,606) — MBS forward sales contracts 1,222,695 — 1,222,695 — — 1,222,695 Interest rate swap agreements 1,699,719 — 1,699,719 — (1,699,719) — Total $ 281,766,695 $ — $ 281,766,695 $ (277,284,675) $ (3,259,325) $ 1,222,695 December 31, 2015 Warehouse lines of credit $ 100,768,428 $ — $ 100,768,428 $ (100,768,428) $ — $ — Loan Repurchase Facilities 296,789,330 — 296,789,330 (296,413,751) (375,579) — Securities repurchase agreements 73,300,159 — 73,300,159 (71,270,578) (2,029,581) — MB forward sales contract 200,204 200,204 — — 200,204 Interest rate swap agreements 1,009,014 — 1,009,014 — (1,009,014) — Total $ 472,067,135 $ — $ 472,067,135 $ (468,452,757) $ (3,414,174) $ 200,204 The Company did not have any assets that are subject to master netting arrangements which can potentially be offset in the Company's consolidated balance sheets at September 30, 2016 or December 31, 2015.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	25. Segment Information The Company operates in two operating segments: residential mortgage investments and residential mortgage banking. These operating segments have been identified based on the Company's organizational and management structure. These segments are based on an internally-aligned segment structure, which is how the Company's results are monitored and performance is assessed. The residential mortgage investments segment includes a portfolio of mortgage loans which were either distressed, re-performing or newly originated at the time of purchase and securities backed by mortgage loans. The residential mortgage investments segment's profit and loss consist primarily of net interest income from whole loans and RMBS, changes in unrealized gains and losses from the valuation of the portfolio and realized gains and losses recognized upon the paydowns of mortgage loans and sales of RMBS. Since the operations of GMFS are conducted in ZFC Honeybee TRS, LLC, an indirect subsidiary of the Company, the residential mortgage banking segment includes the operations of GMFS, which originates mortgage loans for subsequent sale as either servicing retained or released, and expenses incurred by ZFC Honeybee TRS, LLC. Each segment includes the operating and other expenses associated with the respective activities. Segment contribution represents the measure of profit that management uses to assess the performance of its business segments and make resource allocation and operating decisions. Certain expenses not directly assigned or allocated to one of the two primary segments are included in the Corporate/Other column. These unallocated expenses primarily include interest expense on the Company's Exchangeable Senior Notes and corporate operating expenses such as insurance, public company expenses, advisory fees, transaction costs and general and administrative expenses. All amounts are before amounts allocated to non-controlling interests. Residential Residential Mortgage Mortgage Three Months Ended September 30, 2016: Investments Banking Corporate/Other Total Interest income $ 1,721,249 1,309,231 — 3,030,480 Interest expense 669,862 960,686 1,477,089 3,107,637 Net interest income (expense) 1,051,387 348,545 (1,477,089) (77,157) Non-interest income — 16,838,890 — 16,838,890 Change in unrealized gain or loss 3,718,144 — — 3,718,144 Realized gain 97,666 — — 97,666 Gain/(loss) on derivative instruments related to investment portfolio 709,104 — (492,111) 216,993 Advisory fee – related party 202,197 101,713 418,225 722,135 Salaries, commissions and benefits — 9,777,593 — 9,777,593 Operating expenses 139,623 2,442,180 782,073 3,363,876 Other Expenses: Other Expenses (1,701) — 708,882 707,181 Depreciation and amortization — 240,771 — 240,771 Total other expenses (1,701) 240,771 708,882 947,952 Net income (loss) before income taxes 5,236,182 4,625,178 (3,878,380) 5,982,980 Income tax expense — 1,799,829 — 1,799,829 Segment net income (loss) $ 5,236,182 2,825,349 (3,878,380) 4,183,151 Residential Residential Mortgage Mortgage Three Months Ended September 30, 2015: Investments Banking Corporate/Other Total Interest income $ 8,664,713 $ 986,239 $ — $ 9,650,952 Interest expense 2,687,401 574,977 1,449,476 4,711,854 Net interest income (expense) 5,977,312 411,262 (1,449,476) 4,939,098 Non-interest income — 8,943,047 — 8,943,047 Change in unrealized gain or loss (8,093,720) — — (8,093,720) Realized gain 284,448 — — 284,448 Gain on derivative instruments related to investment portfolio (177,670) — — (177,670) Advisory fee – related party 406,053 138,789 215,224 760,066 Salaries, commissions and benefits — 7,681,983 — 7,681,983 Operating expenses 64,958 1,921,180 1,475,017 3,461,155 Other Expenses: Expenses 717,696 — — 717,696 Depreciation and amortization — 236,212 — 236,212 Total other expenses 717,696 236,212 — 953,908 Net income/(loss) before income taxes (3,198,337) (623,855) (3,139,717) (6,961,909) Income tax expense — 250,491 — 250,491 Segment net income (loss) $ (3,198,337) $ (373,364) $ (3,139,717) $ (6,711,418) Residential Residential Mortgage Mortgage Nine Months Ended September 30, 2016: Investments Banking Corporate/Other Total Interest income $ 13,923,283 2,999,254 — 16,922,537 Interest expense 5,442,545 2,166,145 4,409,949 12,018,639 Net interest income (expense) 8,480,738 833,109 (4,409,949) 4,903,898 Non-interest income — 33,965,177 — 33,965,177 Change in unrealized gain or loss (15,606,548) — — (15,606,548) Realized gain 22,362,296 — — 22,362,296 (Loss)/gain on derivative instruments (414,002) — 24,400 (389,602) Advisory fee – related party 822,532 303,726 1,136,712 2,262,970 Salaries, commissions and benefits — 27,249,531 — 27,249,531 Operating expenses 758,442 5,936,376 2,393,840 9,088,658 Other Expenses: Other Expenses 1,289,093 — 4,696,738 5,985,831 Depreciation and amortization — 710,103 — 710,103 Total other expenses 1,289,093 710,103 4,696,738 6,695,934 Net income (loss) before income taxes 11,952,417 598,550 (12,612,839) (61,872) Income tax expense — 251,924 — 251,924 Segment net income (loss) $ 11,952,417 346,626 (12,612,839) (313,796) Residential Residential Mortgage Mortgage Nine Months Ended September 30, 2015: Investments Banking Corporate/Other Total Interest income $ 26,512,002 $ 2,387,695 $ — $ 28,899,697 Interest expense 8,208,669 1,647,268 4,329,143 14,185,080 Net interest income (expense) 18,303,333 740,427 (4,329,143) 14,714,617 Non-interest income — 35,750,028 — 35,750,028 Change in unrealized gain or loss (10,036,457) — — (10,036,457) Realized gain 933,686 — — 933,686 Gain on derivative instruments 316,697 — — 316,697 Advisory fee – related party 1,102,342 404,053 681,959 2,188,354 Salaries, commissions and benefits — 23,171,648 — 23,171,648 Operating expenses 282,916 6,087,395 3,963,648 10,333,959 Other Expenses: Expenses 2,306,545 64,652 — 2,371,197 Depreciation and amortization — 694,173 — 694,173 Total other expenses 2,306,545 758,825 — 3,065,370 Net income (loss) before income taxes 5,825,456 6,068,534 (8,974,750) 2,919,240 Income tax expense — (2,503,896) — (2,503,896) Segment net income (loss) $ 5,825,456 $ 3,564,638 $ (8,974,750) $ 415,344 The following table is a reconciliation of the net income of the residential mortgage banking segment to the operations of GMFS: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Net income/(loss) of the residential mortgage banking segment $ 2,825,349 $ (373,364) $ 346,626 $ 3,564,638 Add back (deduct) expenses incurred by ZFC: Honeybee TRS, LLC: Advisory fee – related party 101,713 138,789 303,726 404,053 Amortization of deferred premiums, production and profitability earn-outs included in salaries, commission and benefits 204,900 161,620 582,900 592,606 Operating expenses (including change in contingent consideration) 561,470 439,589 954,478 1,543,008 Other expenses 197,085 197,085 591,255 655,907 Income tax expense (benefit) 1,799,829 (250,491) 251,924 2,503,896 Net income/(loss) of GMFS $ 5,690,346 $ 313,228 $ 3,030,909 $ 9,264,108 Supplemental Disclosures Selected segment balance sheet information at September 30, 2016 and December 31, 2015 is as follows: Residential Residential Mortgage Mortgage Investments Banking Corporate/Other Total September 30, 2016 Cash and cash equivalents $ 91,189,563 $ 13,224,386 $ 80,538,042 $ 184,951,991 Mortgage loans held for investment, at fair value 39,951,632 — — 39,951,632 Mortgage loans held for investment, at cost — 1,674,495 — 1,674,495 Mortgage loans held for sale, at fair value — 134,333,273 — 134,333,273 Real estate securities, at fair value 84,754,175 — — 84,754,175 Other Investment Securities, at fair value 13,947,952 — — 13,947,952 Mortgage servicing rights, at fair value — 50,182,593 — 50,182,593 Goodwill — 14,183,537 — 14,183,537 Intangible assets — 4,289,015 — 4,289,015 Total assets 234,424,090 272,968,052 81,237,982 588,630,124 December 31, 2015 Cash and cash equivalents $ 15,082,286 $ 5,702,068 $ 9,362 $ 20,793,716 Mortgage loans held for investment, at fair value 397,678,140 — — 397,678,140 Mortgage loans held for investment, at cost — 1,886,642 — 1,886,642 Mortgage loans held for sale, at fair value — 115,942,230 — 115,942,230 Real estate securities, at fair value 109,339,281 — — 109,339,281 Other Investment Securities, at fair value 12,804,196 — — 12,804,196 Mortgage servicing rights, at fair value — 48,209,016 — 48,209,016 Goodwill — 14,183,537 — 14,183,537 Intangible assets — 4,880,270 — 4,880,270 Total assets 542,396,756 232,450,793 291,372 775,138,921

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	26. Subsequent Events On October 3, 2016 the Company amended one of its warehouse lines of credit used by its GMFS mortgage banking platform which was due to expire on October 31, 2016 to increase the capacity to $ 75.0 September 29, 2017

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") as contained within the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim reporting. In the opinion of management, all adjustments considered necessary for a fair statement of the Company'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 the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP as contained in the ASC have been condensed or omitted from the unaudited interim consolidated financial statements according to the SEC rules and regulations. The information and disclosures contained in the unaudited interim consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The Company operates in two business segments: residential mortgage investments and residential mortgage banking. The Company does not have any other “Other Comprehensive Income” items other than those reported in its condensed consolidated statements of operations.
Use of Estimates, Policy [Policy Text Block]	Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates.
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Operating Partnership, all of the wholly owned subsidiaries of the Operating Partnership, including its taxable REIT subsidiaries (“TRS Entities”), and a joint venture in which GMFS has a controlling financial interest. All intercompany balances have been eliminated in consolidation. The Company, which serves as the sole general partner of and conducts substantially all of its business through the Operating Partnership, held approximately 99.3 89.6 Changes in the Company's ownership interest (and transactions with non-controlling interests in its consolidated subsidiaries) while the Company retains its controlling interest in the subsidiaries, are accounted for as equity transactions. The carrying amount of the non-controlling interest is adjusted to reflect the change in its ownership interest in the subsidiaries, with the offset to equity attributable to the Company.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]	In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02, "Consolidation: Amendments to the Consolidation Analysis" ("ASU 2015-02"). ASU 2015-02 makes changes to both the variable interest model and the voting model. The Company adopted ASU 2015-02 on January 1, 2016. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. A variable interest entity ("VIE") is an entity that lacks one or more of the characteristics of a voting interest entity. The Company evaluates each of its investments to determine whether it is a VIE based on: (1) the sufficiency of the entity's equity investment at risk to finance its activities without additional subordinated financial support provided by any parties, including the equity holders; (2) whether as a group the holders of the equity investment at risk have (a) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impacts the entity's economic performance, (b) the obligation to absorb the expected losses of the legal entity or the right to receive the expected residual returns of the legal entity; and (3) whether the voting rights of these investors are proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected returns of their equity, or both, and whether substantially all of the entity's activities involve or are conducted on behalf of an investor that has disproportionately fewer voting rights. An investment that lacks one or more of the above three characteristics is considered to be a VIE. The Company reassesses its initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE is subject to consolidation if the equity investors either do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity's activities, or are not exposed to the entity's losses or entitled to its residual returns. VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. This determination can sometimes involve complex and subjective analyses. The Company's mortgage loans held for sale are sold predominantly to Fannie Mae and Freddie Mac, which are government sponsored enterprises ("GSEs" or "Agencies"). The Company also issues Ginnie Mae securities by pooling eligible loans through a pool custodian and assigning rights to the loans to Ginnie Mae. Fannie Mae, Freddie Mac and Ginnie Mae provide credit enhancement of the loans through certain guarantee provisions. The Company also purchases RMBS from securitization trusts or similar vehicles. These securitizations involve VIEs as the trusts or similar vehicles, by design, have the characteristics of a VIE. The Company has evaluated its interests in its real estate investment securities and its interests in the securitizations discussed in the preceding paragraph to determine if each represents a variable interest in a VIE. The Company monitors these investments and its investment in the securities and analyzes them for potential consolidation. The Company determined that it was not the primary beneficiary of the VIEs and therefore none of the VIEs were consolidated at September 30, 2016 or December 31, 2015. The maximum exposure of the Company to VIEs is limited to the fair value of its investments in real estate securities and MSRs as disclosed in the Company's consolidated balance sheets.
Cash and Cash Equivalents, Policy [Policy Text Block]	The Company considers highly liquid short-term interest bearing instruments with original maturities of three months or less and other instruments readily convertible into cash to be cash equivalents. Cash and cash equivalents at September 30, 2016 includes U.S. Treasury bills (“Treasury Securities”) with a carrying amount of $ 69,993,637
Mortgage Loans Held for Sale Previously Held for Investment [Policy Text Block]	Mortgage Loans Held for Sale Previously Held for Investment Mortgage loans which the Company has decided it no longer intends to hold for the foreseeable future are reclassified from mortgage loans held for investment to mortgage loans held for sale previously held for investment. These mortgage loans were reported at fair value when held for investment and held for sale. The Company decided during the three months ended March 31, 2016 that it no longer intended to hold its seasoned, re-performing mortgage loan portfolio for the foreseeable future and, as such, reclassified mortgage loans with a fair value of $ 368,956,195
Other Investment Securities [Policy Text Block]	Other Investment Securities The Company held Freddie Mac Structured Agency Credit Risk Notes (“FMRT Notes”) and Fannie Mae's Risk Transfer Notes (“FNRT Notes”) at September 30, 2016 and December 31, 2015, and during the three and nine months ended September 30, 2016 and September 30, 2015. (the FMRT Notes and the FNRT Notes are collectively referred to as the “Other Investment Securities”). The Other Investment Securities represent unsecured general obligations of Fannie Mae and Freddie Mac and are structured to be subject to the performance of a certain pool of residential mortgage loans.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2011. The Company was organized and has operated and intends to continue to operate in a manner that will enable it to qualify to be taxed as a REIT. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company's annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gains and which does not necessarily equal net income as calculated in accordance with U.S. GAAP). As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders and does not engage in prohibited transactions. The majority of states also recognize the Company's REIT status. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company's net income under U.S. GAAP and net cash available for distribution to stockholders. However, it is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. The Company has separately made joint elections with three of its subsidiaries, ZFC Funding Inc., ZFC Trust TRS I, LLC and ZFC Honeybee TRS, LLC, to treat such subsidiaries as TRS Entities. The Company may perform certain activities through these TRS entities that could adversely impact the Company's REIT qualification if performed other than through a TRS entity. The Company's TRS entities file separate tax returns and are taxed as standalone U.S. C-Corporations irrespective of the dividends-paid deduction available to REITs for federal income tax purposes. The Company assesses its tax positions for all open tax years and records tax benefits only if tax positions meet a more-likely-than-not threshold in accordance with U.S. GAAP for guidance on accounting for uncertainty in income taxes.
New Accounting Pronouncements, Policy [Policy Text Block]	In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). The objective of the guidance is to clarify the principles for recognizing revenue. ASU 2014-09 supersedes most current revenue recognition guidance, including industry-specific guidance, and also enhances disclosure requirements around revenue recognition and the related cash flows. The guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this new standard. In March 2016, the FASB published ASU No. 2016-08 “Revenue from Contracts with Customers” (Topic 606). The amendments in this update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective. The effective date for this update is the same as for ASU 2015-14 “Revenue from Contracts with Customers (Topic 606) which defers the effective date of ASU 2014-09 by one year resulting in the effective date being fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this new standard. In April 2016, the FASB published ASU No. 2016-10 “Revenue from Contracts with Customers” (Topic 606). The amendments in this update are intended to clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective. The effective date for this update is the same as for ASU 2015-14 which defers the effective date of ASU 2014-09 by one year resulting in the effective date being fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this new standard. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements – Going Concern (Subtopic 205-04) Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"), which requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are issued. If conditions or events indicate it is probable that an entity will be unable to meet its obligations as they become due within one year after the financial statements are issued, the update requires additional disclosures. The update is effective for periods beginning after December 15, 2016 with early adoption permitted. Adoption of ASU 2014-15 is not expected to have a material effect on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). 'The amendments in ASU 2016-01, among other things: (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) and (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. The Company is currently evaluating the impact of adopting this new standard. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. Adoption of ASU 2016-15 is not expected to have a material effect on the Company's consolidated financial statements.

Acquisition of GMFS (Tables)

Acquisition of GMFS (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Beginning balance $ 11,684,100 $ 12,279,645 $ 11,285,100 $ 11,430,413 Change in fair value 530,100 333,019 929,100 1,182,251 Ending balance $ 12,214,200 $ 12,612,664 $ 12,214,200 $ 12,612,664
Schedule of Goodwill [Table Text Block]	The changes in the carrying amount of the goodwill during the nine months ended September 30, 2016 and September 30, 2015. Nine Months Ended September 30, September 30, Beginning balance $ 14,183,537 $ 16,512,680 Reversal of a liability existing as of the date of acquisition — (385,610) Finalization of purchase price based upon final reconciliation — (1,943,533) Ending balance $ 14,183,537 $ 14,183,537
Schedule of Intangible Assets Acquired [Table Text Block]	The following table presents information about the intangible assets acquired by the Company: Estimated Fair Estimated Useful Trade name $ 2.0 million 10 years Customer relationships 1.3 million 10 years Licenses 1.0 million 3 years Favorable lease 1.5 million 12 years Total Intangible assets $ 5.8 million
Schedule of Intangible Assets Acquired [Table Text Block]	Amortization expense related to the intangible assets for the three and nine months ended September 30, 2016 and September 30, 2015 was as follows: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 197,085 $ 197,085 $ 591,255 $ 591,256
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	At September 30, 2016 and December 31, 2015, accumulated amortization is as follows: September 30, December 31, Trade name $ 383,341 $ 233,338 Customer relationships 249,159 151,662 Licenses 638,894 388,892 Favorable lease 239,591 145,838 Total accumulated amortization $ 1,510,985 $ 919,730
Schedule of Future Amortization Expense [Table Text Block]	Amortization expense related to the intangible assets for the period October 1, 2016 to December 31, 2016 and for the five years subsequent to December 31, 2016 will be as follows: October 1, 2016 – December 31, 2016 $ 197,085 2017 $ 732,776 2018 $ 455,004 2019 $ 455,004 2020 $ 455,004 2021 $ 455,004

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	September 30, 2016 Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Assets Mortgage loans held for investment $ — $ — $ 39,951,632 $ 39,951,632 Mortgage loans held for sale — 134,333,273 — 134,333,273 Real estate securities — — 84,754,175 84,754,175 Other Investment Securities — — 13,947,952 13,947,952 MSRs — — 50,182,593 50,182,593 Derivative assets — — 5,462,467 5,462,467 Total $ — $ 134,333,273 $ 194,298,819 $ 328,632,092 Liabilities Contingent consideration $ 4,226,200 $ — $ 7,988,000 $ 12,214,200 Derivative liabilities — 2,924,702 — 2,924,702 Total $ 4,226,200 $ 2,924,702 $ 7,988,000 $ 15,138,902 December 31, 2015 Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Total Assets Mortgage loans held for investment $ — $ — $ 397,678,140 $ 397,678,140 Mortgage loans held for sale — 115,942,230 — 115,942,230 Real estate securities — — 109,339,281 109,339,281 Other Investment Securities — — 12,804,196 12,804,196 MSRs — — 48,209,016 48,209,016 Derivative assets — — 2,376,187 2,376,187 Total $ — $ 115,942,230 $ 570,406,820 $ 686,349,050 Liabilities Contingent consideration $ — $ — $ 11,285,100 $ 11,285,100 Derivative liabilities — 1,822,096 9,871 1,831,967 Total $ — $ 1,822,096 $ 11,294,971 $ 13,117,067
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Mortgage Loans Held for Investment and Held for Sale Previously Held for Investment, Real Estate Securities and Other Investment Securities Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Mortgage Real Estate Other Mortgage Real Estate Other Balance, beginning of period $ 397,678,140 109,339,281 12,804,196 $ 415,959,838 $ 148,585,733 $ 2,040,532 Originations/acquisitions 24,328,116 — — 11,359,110 6,362,138 15,601,330 Proceeds from sales (357,202,632) (16,094,301) — — (26,770,760) (2,241,387) Amortization of premiums (123,981) — — (2,388) — — Net accretion of discounts 3,176,252 1,465,501 277,275 5,894,627 3,263,205 124,204 Proceeds from principal repayments (29,261,844) (11,694,754) (169,604) (25,384,866) (13,975,960) — Conversion of mortgage loans to real estate owned (1,513,223) — — (2,134,106) — — Total losses (realized/unrealized) included in earnings 24,188,314 (1,597,292) — (15,316,984) (5,485,768) (539,285) Total gains (realized/unrealized) included in earnings (21,317,510) 3,335,740 1,036,085 10,831,119 1,241,488 223,656 Balance, end of period $ 39,951,632 $ 84,754,175 $ 13,947,952 $ 401,206,350 $ 113,220,076 $ 15,209,050 The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 609,464 $ 1,832,861 $ 1,036,085 $ (5,664,885) $ (3,554,935) $ (449,755) Derivative Instruments Nine Months Ended Nine Months Ended Loan Purchase Interest Rate Loan Purchase Interest Rate Beginning balance $ (9,871) $ 2,376,187 $ 4,037 $ 2,481,063 Change in unrealized gain or loss 9,871 3,086,280 51,443 992,196 Ending balance $ — $ 5,462,467 $ 55,480 $ 3,473,259 The amount of total gains or (losses) for the year included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held at the reporting date $ — $ 3,086,280 $ 51,443 $ 992,196
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]	The following tables present quantitative information about the Company's assets which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Fair Value at Valuation Unobservable Min Max Weighted Assets: Mortgage loans Held for Investment $ 39,951,632 Discounted cash flow model Constant voluntary prepayment 13.2 % 29.4 % 20.9 % Constant default rate 0.0 % 0.5 % 0.2 % Loss severity 10.0 % 10.0 % 10.0 % Non-Agency RMBS Alternative – A $ 24,642,186 Broker quotes/comparable trades Constant voluntary prepayment 2.1 % 19.8 % 12.6 % Constant default rate 0.1 % 15.5 % 2.8 % Loss severity 0.0 % 86.4 % 24.8 % Delinquency 1.0 % 21.9 % 8.2 % Pay option adjustable rate 26,160,605 Broker quotes/comparable trades Constant voluntary prepayment 2.6 % 7.6 % 4.7 % Constant default rate 0.9 % 9.9 % 3.2 % Loss severity 0.0 % 75.2 % 31.6 % Delinquency 4.0 % 17.4 % 11.5 % Prime 26,929,150 Broker quotes/comparable trades Constant voluntary prepayment 3.3 % 15.9 % 9.0 % Constant default rate 0.2 % 13.5 % 3.6 % Loss severity 0.0 % 102.7 % 28.2 % Delinquency 3.8 % 26.4 % 11.4 % Subprime 7,022,234 Broker quotes/comparable trades Constant voluntary prepayment 1.5 % 4.5 % 3.3 % Constant default rate 3.6 % 9.0 % 5.1 % Loss severity 8.8 % 85.0 % 48.4 % Delinquency 17.4 % 22.4 % 19.8 % Total Non-Agency RMBS $ 84,754,175 Other Investment Securities $ 13,947,952 Broker quotes/comparable trades Constant voluntary prepayment 4.5 % 30.0 % 9.4 % MSRs $ 50,182,593 Discounted cash flow model Constant voluntary prepayment 11.2 % 13.2 % 12.3 % Cost of servicing $ 77 $ 108 $ 89 Discount rate 9.0 % 10.0 % 9.3 % Liabilities: Contingent consideration $ 12,214,200 Option pricing model Discount rate 10.2 % 10.8 % 10.5 % Production volatility — — 20.0 % Profitability volatility — — 50.0 % Fair Value at Valuation Unobservable Min Max Weighted Assets: Mortgage loans held for Investment $ 397,678,140 Discounted cash flow model Constant voluntary prepayment 1.9 % 5.0 % 3.2 % Constant default rate 1.4 % 5.0 % 3.1 % Loss severity 5.9 % 37.2 % 22.1 % Delinquency 6.3 % 13.2 % 10.9 % Non-Agency RMBS Alternative – A $ 35,998,175 Broker quotes/comparable trades Constant voluntary prepayment 2.7 % 18.9 % 12.9 % Constant default rate 0.2 % 7.8 % 2.8 % Loss severity 0.0 % 85.0 % 21.0 % Delinquency 1.4 % 22.2 % 8.9 % Pay option adjustable rate 32,209,538 Broker quotes/comparable trades Constant voluntary prepayment 2.2 % 13.5 % 7.5 % Constant default rate 0.5 % 13.0 % 3.5 % Loss severity 0.0 % 95.6 % 40.0 % Delinquency 5.3 % 21.9 % 12.3 % Prime 32,482,521 Broker quotes/comparable trades Constant voluntary prepayment 3.6 % 21.0 % 8.0 % Constant default rate 0.5 % 9.4 % 3.7 % Loss severity 0.0 % 85.1 % 28.9 % Delinquency 4.4 % 25.5 % 12.0 % Subprime 8,649,047 Broker quotes/comparable trades Constant voluntary prepayment 1.2 % 7.7 % 3.9 % Constant default rate 3.0 % 8.0 % 6.2 % Loss severity 11.1 % 128.5 % 54.0 % Delinquency 18.3 % 28.0 % 22.2 % Total Non-Agency RMBS $ 109,339,281 Other Investment Securities $ 12,804,196 Broker quotes/comparable trades Constant voluntary prepayment 4.0 % 18.4 % 6.9 % MSRs $ 48,209,016 Discounted cash flow model Constant voluntary prepayment 8.5 % 10.5 % 9.3 % Cost of servicing $ 77 $ 110 $ 92 Discount rate 9.0 % 10.0 % 9.4 % Liabilities: Contingent consideration $ 11,285,100 Option pricing model Discount rate 10.2 % 10.8 % 10.5 % Production volatility — — 20.0 % Profitability volatility — — 50.0 % The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Pull-through rate Range 58.5% - 100.0 % 62.4% – 100.0 % Weighted average 86.0 % 87.6 % MSR value expressed as: Servicing fee multiple Range (0.4%) – 6.1 % 0.8% - 5.9 % Weighted average 4.5 % 4.3 % Percentage of unpaid principal balance Range (0.1%) – 2.0 % 0.3% - 1.7 % Weighted average 1.1 % 1.1 %
Fair Value, Option, Quantitative Disclosures [Table Text Block]	The following table presents the difference between the fair value and the aggregate unpaid principal amount and/or notional balance of assets for which the fair value option was elected at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Unpaid Principal Unpaid Principal and/or Notional and/or Notional Fair Value Balance (2) Difference Fair Value Balance (2) Difference Financial instruments, at fair value Mortgage loans held for investment (1) $ 39,951,632 $ 38,776,679 $ 1,174,953 $ 397,678,140 $ 444,500,063 $ (46,821,923) Mortgage loans held for sale 134,333,273 127,769,470 6,563,803 115,942,230 111,393,424 4,548,806 Real estate securities (2) 84,754,175 126,888,360 (42,134,185) 109,339,281 168,925,162 (59,585,881) Other Investment Securities 13,947,952 13,387,632 560,320 12,804,196 13,398,851 (594,655) MSRs 50,182,593 5,120,768,614 N/A (3) 48,209,016 4,173,927,393 N/A (3) (1) At September 30, 2016, the balance is comprised of loans that were newly originated at the time of purchase. At December 31, 2015, the balance is comprised of loans that were (i) distressed and re-performing at the time of purchase and (ii) newly originated at the time of purchase. (2) Real estate securities includes an interest only security with a notional balance of $ 24.5 35.0 (3) Amounts not presented. Unpaid principal balance of MSRs is generally significantly greater than their fair value.
Fair Value, by Balance Sheet Grouping [Table Text Block]	The following table summarizes the estimated fair value and carrying value for all other financial instruments at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value Other financial instruments Assets Cash and cash equivalents $ 184,951,991 $ 184,951,991 $ 20,793,716 $ 20,793,716 Restricted cash 4,217,791 4,217,791 4,371,725 4,371,725 Mortgage loans held for investment, at cost 1,674,495 1,674,495 1,886,642 1,886,642 Liabilities Warehouse lines of credit $ 125,737,022 $ 125,737,022 $ 100,768,428 $ 100,768,428 Treasury securities repurchase agreements 69,994,283 69,994,283 — — Loan repurchase facilities 15,000,000 15,000,000 296,789,330 296,789,330 Securities repurchase agreements 68,112,976 68,112,976 73,300,159 73,300,159 Exchangeable Senior Notes 57,939,300 57,355,775 56,775,500 56,509,046

Mortgage Loans Held for Inves36

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Mortgage Loans on Real Estate [Abstract]
Schedule of Net Proceeds From Sale Of Mortgage Loans Held For Sale And Real Estate Owned Assets [Table Text Block]	The following tables present additional information about the sale of the Company’s mortgage loans held for sale previously held for investment and REO which occurred on May 26, 2016: Proceeds from sale: Unpaid principal balance and accrued interest $ 361,081,388 Servicing advances 747,083 Total – proceeds from sale 361,828,471 Payoff Citi Loan Repurchase Facility (267,192,460) Net proceeds from sale $ 94,636,011
Schedule Of Additional Information of Mortgage Loans Held For Sale Previously Held For Investment And Real Estate Owned Assets [Table Text Block]	Mortgage loans held for sale previously held for investment REO Total Net gain on sale: Realized gain (loss) on sale, based on amortized cost $ 22,203,418 $ 106,585 $ 22,310,003 Reversal of previously recognized change in unrealized gain or loss (22,788,689) 996,173 (21,792,516) Net (loss) gain on sale $ (585,271) $ 1,102,758 $ 517,487
Schedule Of Information About Investments In Mortgage Loans [Table Text Block]	The following table presents certain information regarding the Company's mortgage loans at December 31, 2015 which showed evidence of credit deterioration at the time of purchase: Mortgage Loans Held for Investment The Company did not have any mortgage loans held for investment at September 30, 2016. The following tables present certain information regarding the Company's mortgage loans held for investment, at fair value, at December 31, 2015 which showed evidence of credit deterioration at the time of purchase: Difference Between Fair Value and Aggregate Unpaid Gross Unrealized (1) Unpaid Weighted Average Principal Premium Amortized Fair Principal Unleveraged Balance (Discount) Cost Gains Losses Value Balance Coupon Yield Performing Fixed $ 240,031,119 $ (44,650,666) $ 195,380,453 $ 23,626,555 $ (2,521,921) $ 216,485,087 $ (23,546,032) 4.70 % 7.59 % ARM 143,625,653 (15,597,990) 128,027,663 5,918,004 (3,126,826) 130,818,841 (12,806,812) 3.63 7.15 Total performing 383,656,772 (60,248,656) 323,408,116 29,544,559 (5,648,747) 347,303,928 (36,352,844) 4.30 7.41 Non-performing (2) 40,100,775 (7,515,130) 32,585,645 990,974 (4,245,960) 29,330,659 (10,770,116) 4.65 7.78 Total $ 423,757,547 $ (67,763,786) $ 355,993,761 $ 30,535,533 $ (9,894,707) $ 376,634,587 $ (47,122,960) 4.34 % 7.45 % (1) The Company had elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The change in unrealized gain or loss related to these mortgage loans are recorded in the condensed consolidated statements of operations. (2) Loans that were delinquent for 60 days or more are considered non-performing. Changes in Unrealized Gains and Losses During the three and nine months ended September 30, 2016 and September 30, 2015, the Company recorded the following changes in unrealized gain or loss relating to the mortgage loans held for investment and held for sale previously held for investment: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ — $ (5,753,002) $ (20,640,826) $ (5,632,684) The following tables present certain information regarding the Company's mortgage loans held for investment, at fair value, at September 30, 2016 and December 31, 2015 which were newly originated at the time of purchase and sourced through the Company’s loan purchase program: September 30, 2016 Unpaid Gross Unrealized (1) Weighted Average Principal Amortized Unleveraged Balance Premium Cost Gains Losses Fair Value Coupon Yield Performing Fixed $ 30,415,184 $ 510,133 $ 30,925,317 $ 512,361 $ (16,461) $ 31,421,217 4.84 % 4.57 % ARM 8,361,495 118,145 8,479,640 56,324 (5,549) 8,530,415 4.45 4.86 Total Mortgage Loans Held for Investment $ 38,776,679 $ 628,278 $ 39,404,957 $ 568,685 $ (22,010) $ 39,951,632 4.75 % 4.56 % December 31, 2015 Unpaid Gross Unrealized (1) Weighted Average Principal Amortized Unleveraged Balance Premium Cost Gains Losses Fair Value Coupon Yield Performing Fixed $ 17,674,257 $ 315,860 $ 17,990,117 $ 58,069 $ (99,486) $ 17,948,700 5.05 % 4.89 % ARM 3,068,259 44,875 3,113,134 — (18,280) 3,094,854 4.37 4.25 Total Mortgage Loans Held for Investment $ 20,742,516 $ 360,735 $ 21,103,251 $ 58,069 $ (117,766) $ 21,043,554 4.95 % 4.79 % (1) The Company has elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The Company recorded the following as change in unrealized gain or loss on mortgage loans held for investment and held for sale previously held for investment in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ (71,687) $ 102,078 $ 606,377 $ 29,001
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement [Table Text Block]	The following table presents the change in accretable yield for the Company's mortgages held for investment which had shown evidence of credit deterioration since origination at the time of purchase for the nine months ended September 30, 2016 and September 30, 2015: Nine Months Ended September 30, 2016 September 30, 2015 Accretable yield, beginning of period $ 247,751,944 $ 267,509,905 Accretion (2,410,833) (19,347,512) Reclassifications from nonaccretable difference — 7,760,664 Reduction due to sale of loans (245,341,111) — Accretable yield, end of period $ — $ 255,923,057
Schedule Of Mortgage Loan Acquisitions [Table Text Block]	During the three and nine months ended September 30, 2016 and September 30, 2015, the Company's acquisition of mortgage loans held for investment which were newly originated at the time of purchase was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Aggregate Unpaid Principal Balance $ — $ 8,291,350 $ 23,941,629 $ 11,171,269 Loan Repurchase Facilities Used $ — $ 7,265,036 $ 21,289,983 $ 9,746,638
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The Company's mortgage loans held for investment, at fair value consists of mortgage loans on residential real estate located throughout the United States. The following is a summary of certain concentrations of credit risk in the mortgage loan portfolio at September 30, 2016 and December 31, 2015: September 30, December 31, Percentage of fair value of mortgage loans with unpaid principal balance to current property value in excess of 100% — % 44.1 % Percentage of fair value of mortgage loans secured by properties in the following states: Each representing 10% or more of fair value: California 47.5 % 26.2 % Florida — % (1) 16.1 % Additional state representing more than 5% of fair value: Texas 8.1 % — % (2) Louisiana 6.6 % — % (2) Georgia 6.6 % 6.1 % Percentage of unpaid principal balance of mortgage loans carrying mortgage insurance — % 8.2 % (1) State did not represent more than 10% of the fair value as of the balance sheet date. (2) State did not represent more than 5% of the fair value as of the balance sheet date.
Schedule of Interest Rate and Contractual Maturities On Mortgage Loans Held For Investment [Table Text Block]	The range of interest rates and contractual maturities of the Company's mortgage loans held for investment at September 30, 2016 and December 31, 2015 were as follows: September 30, December 31, Interest rates 3.50% - 6.75 % 1.75% – 12.20 % Contractual maturities 15 – 30 years 1 – 45 years
Schedule Of Additional Information Company's Real Estate Owned On Mortgage Loans Held For Investment [Table Text Block]	Additional information about the Company’s REO assets at September 30, 2016 and December 31, 2015, are as follows: September 30, December 31, Net realizable value (included in other assets in the Company's consolidated balance sheets) $ — $ 1,784,670 Carrying amount of mortgage loans held for investment, at fair value secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction — 5,597,611

Mortgage Loans Held for Sale,37

Mortgage Loans Held for Sale, at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Transfers and Servicing [Abstract]
Schedule of Servicing Assets at Fair Value [Table Text Block]	Nine Months Ended September 30, 2016 September 30, 2015 Balance at beginning of period $ 115,942,230 $ 97,690,960 Originations and purchases 1,632,229,133 1,449,538,666 Proceeds from sales and principal payments (1,674,425,261) (1,481,473,208) Transfers from mortgage loans held for investment, at cost — 65,983 Gain on sale, net 60,587,171 48,848,410 Balance at end of period $ 134,333,273 $ 114,670,811
Schedule Of Mortgage Loans Held For Sale [Table Text Block]	Mortgage loans held for sale, at fair value at September 30, 2016 and December 31, 2015 is as follows: September 30, 2016 December 31, 2015 Unpaid Unpaid Principal Principal Balance Fair Value Balance Fair Value Conventional $ 80,090,505 $ 82,145,748 $ 54,962,904 $ 56,586,717 Governmental 19,296,747 21,760,490 30,531,301 32,131,354 United States Department of Agriculture loans 20,189,456 21,407,652 16,222,152 17,059,982 United States Department of Veterans Affairs loans 7,701,386 8,456,556 8,922,978 9,314,255 Reverse mortgage 491,376 562,827 754,089 849,922 Total $ 127,769,470 $ 134,333,273 $ 111,393,424 $ 115,942,230

Real Estate Securities and Ot38

Real Estate Securities and Other Investment Securities, at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule Of Investments In Real Estate Securities [Table Text Block]	The following tables present certain information regarding the Company's non-Agency RMBS and Other Investment Securities at September 30, 2016 and December 31, 2015: September 30, 2016 Principal or Gross Unrealized (2) Weighted Average Notional Premium Amortized Unleveraged Balance (Discount) Cost Gains Losses Fair Value Coupon Yield Real estate securities Non-Agency RMBS: Alternative – A $ 53,343,081 $ (28,651,212) $ 24,691,869 $ 843,160 $ (892,843) $ 24,642,186 2.05 % 5.29 % Pay option adjustable rate 33,130,938 (5,338,366) 27,792,572 84,743 (1,716,710) 26,160,605 1.27 4.12 Prime 30,189,757 (3,769,477) 26,420,280 733,888 (225,018) 26,929,150 3.82 5.53 Subprime 10,224,584 (3,655,606) 6,568,978 545,827 (92,571) 7,022,234 0.68 6.60 Total non-Agency RMBS $ 126,888,360 $ (41,414,661) $ 85,473,699 $ 2,207,618 $ (2,927,142) $ 84,754,175 2.16 % 5.09 % Other Investment Securities (1) $ 13,387,632 $ 84,626 $ 13,472,258 $ 518,537 $ (42,843) $ 13,947,952 5.05 % 5.90 % December 31, 2015 Principal or Gross Unrealized (2) Weighted Average Notional Premium Amortized Unleveraged Balance (Discount) Cost Gains Losses Fair Value Coupon Yield Real estate securities Non-Agency RMBS: Alternative – A $ 76,328,172 $ (40,150,416) $ 36,177,756 $ 846,318 $ (1,025,899) $ 35,998,175 2.01 % 6.18 % Pay option adjustable rate 42,562,819 (7,480,996) 35,081,823 6,863 (2,879,148) 32,209,538 1.10 5.31 Prime 37,366,079 (4,732,637) 32,633,442 563,311 (714,232) 32,482,521 3.62 5.95 Subprime 12,668,092 (4,039,253) 8,628,839 111,651 (91,443) 8,649,047 0.93 6.63 Total non-Agency RMBS $ 168,925,162 $ (56,403,302) $ 112,521,860 $ 1,528,143 $ (4,710,722) $ 109,339,281 2.05 % 5.87 % Other Investment Securities (1) $ 13,398,851 $ (34,264) $ 13,364,587 $ 897 $ (561,288) $ 12,804,196 4.94 % 6.65 % (1) See Note 2 – Summary of Significant Accounting Policies – “Other Investment Securities". (2) The Company has elected the fair value option pursuant to ASC 825 for real estate securities. The Company recorded the changes in unrealized gain or loss in the condensed consolidated statements of operations.
Investments Classified by Contractual Maturity Date [Table Text Block]	The following tables present additional information regarding the Company's non-Agency RMBS and Other Investment Securities at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Non-Agency RMBS Other Investment Non-Agency RMBS Other Investment Notional balance of IO included in Alternative A $ 24,512,929 — $ 35,042,860 — Contractual maturities (range) 18.6 to 30.5 years 7.7 to 11.6 years 18.1 to 31.3 years 8.4 to 12.3 years Weighted average maturity 24.2 years 9.3 years 24.4 years 10.1 years

Mortgage Servicing Rights, at39

Mortgage Servicing Rights, at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Transfers and Servicing [Abstract]
Schedule Of Activity Of Mortgage Servicing Rights [Table Text Block]	Nine Months Ended September 30, September 30, 2016 2015 Balance at beginning of period $ 48,209,016 $ 33,378,978 Additions due to loans sold, servicing retained 17,437,135 14,323,953 Change in fair value of MSRs (1) Changes in values of market related inputs or assumptions used in a valuation model (2) (9,934,160) (3,571,775) Other changes (3) (5,529,398) (2,086,505) Total - change in fair value of MSRs (15,463,558) (5,658,280) Balance at end of period $ 50,182,593 $ 42,044,651 (1) Included in change in fair value of MSRs in the Company's condensed consolidated statements of operations. (2) Primarily reflects changes in values of prepayment assumptions due to changes in interest rates. (3) Represents change in value primarily due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid off or paid down during the period.
Schedule Of Gains Losses Included In Earnings [Table Text Block]	Nine Months Ended September 30, September 30, 2016 2015 The amount of total losses included in earnings attributable to the change in unrealized gains or losses relating to the MSRs still held at the reporting date $ (9,934,160) $ (3,571,775)
Schedule Of Mortgage Servicing Rights Portfolio [Table Text Block]	The Company's MSR portfolio at September 30, 2016 and December 31, 2015 is as follows: September 30, 2016 December 31, 2015 Unpaid Principal Unpaid Principal Balance Fair Value Balance Fair Value Fannie Mae $ 2,116,921,260 $ 19,905,312 $ 1,880,177,827 $ 20,751,648 Ginnie Mae 1,718,154,049 18,247,015 1,488,159,758 18,231,527 Freddie Mac 1,285,693,305 12,030,266 805,589,808 9,225,841 Total $ 5,120,768,614 $ 50,182,593 $ 4,173,927,393 $ 48,209,016
Schedule Of Quantitative Information Of Mortgage Servicing Rights [Table Text Block]	The following is a quantitative summary of key input assumptions and their related impact on the estimated fair value of the MSRs from adverse changes in those assumptions (weighted averages are based upon unpaid principal balance) at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Discount rate: Range 6.5% - 12.1 % 6.6%-12.2 % Weighted average 9.4 % 9.4 % Effect on fair value of adverse change of: 5% $ (887,857) $ (958,786) 10% $ (1,745,636) $ (1,881,870) 20% $ (3,376,644) $ (3,628,281) Prepayment speed (1) Range 8.9% - 16.1 % 7.0%-12.0 % Weighted average 12.5 % 9.3 % Effect on fair value of adverse change of: 5% $ (1,203,181) $ (938,584) 10% $ (2,306,597) $ (1,756,195) 20% $ (4,445,283) $ (3,428,890) Per-loan annual cost of servicing: Range $ 63- $117 $ 64-$119 Weighted average $ 90 $ 92 Effect on fair value of adverse change of: 5% $ (561,962) $ (547,228) 10% $ (1,123,925) $ (1,094,455) 20% $ (2,247,882) $ (2,188,910) (1) Prepayment speed is measured using Constant Prepayment Rates (“CPR”).
Schedule Of Loan Servicing Fee Income Net Of Direct Costs [Table Text Block]	The Company contracts with licensed sub-servicers to perform all servicing functions for the loans related to the MSR’s. The following table presents the loan servicing fee income, net of direct costs, for the three and nine months ended September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Loan servicing fee income $ 3,521,122 $ 2,729,891 $ 10,033,264 $ 7,613,023 Late fee income 196 29 501 64 Sub-servicing costs (1,383,526) (989,813) (3,786,526) (2,568,246) Loan servicing fee income, net of direct costs $ 2,137,792 $ 1,740,107 $ 6,247,239 $ 5,044,841

Warehouse Lines of Credit (Tabl

Warehouse Lines of Credit (Tables)	9 Months Ended
	Sep. 30, 2016
Warehouse Agreement Borrowings [Member]
Schedule of Line of Credit Facilities [Table Text Block]	The following tables present certain information regarding the Company's warehouse lines of credit and repurchase agreements in its residential mortgage banking segment at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Availability $ 200,000,000 $ 185,000,000 Maturity dates October 2016 – September 2017 June 2016 – November 2016

Treasury Securities and Treas41

Treasury Securities and Treasury Securities Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2016
Treasury Securities and Treasury Repurchase Agreements [Abstract]
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block]	The Company purchased Treasury Securities during the nine months ended September 30, 2016. The following table presents certain information regarding the Company’s non-interest bearing Treasury Securities at September 30, 2016: Par $ 70,000,000 Carrying amount 69,993,637 Maturity October 20, 2016 Balance sheet line item Cash and cash equivalents
Schedule of Repurchase Agreements [Table Text Block]	In connection with the purchase of these securities, the Company has two repurchase agreements with one counterparty. The following table presents certain information regarding the Company’s treasury securities repurchase agreements at September 30, 2016: Outstanding balance $ 69,994,283 Interest rate 0.30 % Maturity October 20, 2016

Loan Repurchase Facilities (Tab

Loan Repurchase Facilities (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Loan Repurchase Facilities [Table Text Block]	At September 30, 2016 and December 31, 2015, the Company had the following outstanding master repurchase agreements with Credit Suisse First Boston Mortgage Capital LLC (the "Credit Suisse Loan Repurchase Facility") and the Citi Loan Repurchase Facility (collectively, the "Loan Repurchase Facilities") used to fund the purchase of mortgage loans held for investment in its residential mortgage investments segment: September 30, 2016 December 31, 2015 Credit Suisse Credit Suisse First First Boston Boston Mortgage Citibank, N.A Mortgage Lender Capital LLC Distressed and Capital LLC Newly Re- Newly Originated Performing Originated Collateral type funded by facility Loans Loans Loans Total facility size $ 15,000,000 $ 325,000,000 $ 100,000,000 Amount committed $ — $ 150,000,000 $ 25,000,000 Maturity date November 11, 2016 May 20, 2016 June 27, 2016 Outstanding balance $ 15,000,000 $ 279,467,573 $ 17,321,757
Schedule Of Posting of Mortgage Loan Collateral For The Loan Repurchase Facilities [Table Text Block]	September 30, December 31, 2016 2015 Fair value of Trust Certificates pledged as collateral $ 35,615,300 $ 394,942,512 Cash pledged as collateral — 375,579

Securities Repurchase Agreeme43

Securities Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Repurchase Agreements [Abstract]
Schedule Of Posting of Mortgage Loan Collateral For The Loan Repurchase Facilities [Table Text Block]	September 30, December 31, 2016 2015 Fair value of non-Agency RMBS pledged as collateral $ 82,686,633 $ 95,627,850 Fair value of Other Investment Securities pledged as collateral 11,023,416 1,989,174 Cash pledged as collateral 1,559,606 2,029,581

8.0% Exchangeable Senior Note44

8.0% Exchangeable Senior Notes due 2016 (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Payable [Abstract]
Schedule of Information Pertaining to Senior Notes [Table Text Block]	The following table presents information with respect to the Exchangeable Senior Notes at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Fair value of conversion option derivative liability $ 2,288 $ 612,878 Unamortized discount 144,225 990,954

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of Notional Amounts of Derivative Instruments [Table Text Block]	The following table presents certain information related to derivative instruments held at September 30, 2016 and December 31, 2015: Non-hedge derivatives September 30, 2016 December 31, 2015 Notional amount of interest rate swaps $ 17,200,000 $ 17,200,000 LPCs (Principal balance of underlying loans) — 18,494,332 IRLCs (Principal balance of underlying loans) 314,509,503 190,933,017 Notional amount of MBS forward sales contracts 324,500,000 179,417,280
Schedule of Fair Value of Derivative Instruments [Table Text Block]	The following table presents the fair value of the Company's derivative instruments and their balance sheet location at September 30, 2016 and December 31, 2015: September 30, December 31, Derivative instruments Designation Balance Sheet Location 2016 2015 Interest rate swaps Non-hedge Derivative liabilities, at fair value $ (1,699,719) $ (1,009,014) LPCs Non-hedge Derivative assets (liabilities), at fair value — (9,871) IRLCs Non-hedge Derivative assets, at fair value 5,462,467 2,376,187 MBS forward sales contracts Non-hedge Derivative liabilities, at fair value (1,222,695) (200,204) Conversion Option - Exchangeable Senior Notes Non-hedge Derivative liabilities, at fair value (2,288) (612,878)
Schedule of Gains / (Losses) Related to Derivatives [Table Text Block]	The following table presents the gains and (losses) related to Company's derivative instruments for the three and nine months ended September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended Income Statement September September 30, September 30, September 30, Non-hedge derivatives Location 30, 2016 2015 2016 2015 Interest rate swaps Gain/(loss) on derivative instruments related to investment portfolio $ 122,914 $ (675,562) $ (1,010,063) $ (748,348) LPCs Gain/(loss) on derivative instruments related to investment portfolio — 118,277 9,871 51,443 IRLCs Mortgage banking activities, net (911,307) 1,227,839 3,086,280 992,196 MBS forward sales contracts Mortgage banking activities, net 1,545,236 (1,593,515) (1,022,491) (631,445) Exchangeable Senior Notes conversion option Gain/(loss) on derivative instruments related to investment portfolio 94,079 379,615 610,590 1,013,602
Schedule of Interest Rate Derivatives [Table Text Block]	September 30, December 31, 2016 2015 Maturity 2023 2023 Notional Amount $ 17,200,000 $ 17,200,000 Weighted Average Pay Rate 2.72 % 2.72 % Weighted Average Receive Rate 0.65 % 0.33 % Weighted Average Years to Maturity 6.8 7.6 Cash Pledged as Collateral (1) $ 2,658,185 $ 1,966,565 (1) At September 30, 2016 and December 31, 2015 all collateral provided under the interest rate swap agreements consisted of cash collateral which is included in restricted cash in the Company's consolidated balance sheets.

Mortgage Banking Activities (Ta

Mortgage Banking Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Mortgage Banking [Abstract]
Schedule Of Mortgage Banking Income Expense [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Gain on sale of mortgage loans held for sale, net of direct costs (1) $ 14,702,874 $ 12,769,854 $ 41,786,819 $ 35,530,805 Loan expenses, including the (increase)/decrease in provision for loan indemnifications 995,078 (208,576) 573,127 (602,926) Loan origination fee income 195,567 507,082 765,926 1,395,863 Total $ 15,893,519 $ 13,068,360 $ 43,125,872 $ 36,323,742 (1) Includes the change in fair value related to IRLCs and MBS forward sales contracts held during the period.

Loan Indemnification Reserve (T

Loan Indemnification Reserve (Tables)	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Schedule of Activity in Loan Indemnification Reserve [Table Text Block]	Nine Months Ended September 30, September 30, 2016 2015 Balance at the beginning of period $ 3,201,000 $ 2,662,162 Loan indemnification losses incurred — (198,834) Provision for loan indemnification losses based on loans sold during the period 648,375 576,654 Decrease in reserves for aged performing loans (1,297,943) — Balance at end of period $ 2,551,432 $ 3,039,982

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate [Table Text Block]	The following is a reconciliation of the statutory federal and state rates to the effective rates for the three and nine months ended September 30, 2016 and September 30, 2015: Reconciliation of Statutory Tax Rate to Effective Tax Rate Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Tax expense (benefit) at statutory rate 34.00 % (35.00) % (34.00) % 35.00 State and local taxes, net of federal benefit 3.95 (0.85) 137.62 7.91 Impact of REIT election (1) (7.28) 29.21 950.93 17.63 Change in valuation allowance (2) (0.79) 2.85 (738.43) 23.25 Other non-deductible/non-taxable items (3) 0.11 0.19 82.52 1.98 Adjustment of Tax Rate used to value deferred taxes (4) 0.09 0.0 8.54 0.0 Effective Tax Rate 30.08 % (3.60) % 407.18 % 85.77 % (1) For all tax years, the Company’s effective tax rate differs from its statutory tax rate due to the deduction for dividend distributions required to be paid under Code section 857(a). (2) For the three and nine months ended September 30, 2016 and September 30, 2015, the change in valuation allowance relates to the change in reserve related to net operating losses and other future deductible items for ZFC Trust TRS I, LLC and ZFC Funding, Inc. (3) For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to non-deductible meals and entertainment expenses. (4) For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to the change in state income tax used to value deferred tax assets and liabilities of ZFC Honeybee TRS LLC.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Numerator: Net income/(loss) attributable to ZAIS Financial Corp. common stockholders (Basic) $ 4,110,691 $ (6,040,746) $ 33,938 $ 386,845 Effect of dilutive securities: Net income/(loss) allocated to non-controlling interests relating to OP Units exchangeable for shares of common stock of the Company 28,329 (702,460) (445,746) 44,988 Exchangeable Senior Notes: Interest expense 841,723 — — — Gain on conversion option derivative liability (53,611) — — — Total – Exchangeable Senior Notes 788,112 — — — Net income/(loss) available to stockholders, after effect of dilutive securities $ 4,927,132 $ (6,743,206) $ (411,808) $ 431,833 Denominator: Weighted average number of shares of common stock 8,836,902 7,970,886 8,261,665 7,970,886 Effect of dilutive securities: Weighted average number of OP units 60,898 926,914 636,135 926,914 Weighted average number of shares convertible under Exchangeable Senior Notes 1,779,560 — — — Diluted weighted average shares outstanding 10,677,360 8,897,800 8,897,800 8,897,800 Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders – Basic $ 0.47 $ (0.76) $ — $ 0.05 Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders – Diluted $ 0.46 $ (0.76) $ — $ 0.05

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transaction [Table Text Block]	The Company incurred the following fees pursuant to the Investment Advisory Agreement for the three and nine months ended September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Advisory fees $ 722,135 $ 718,372 $ 2,143,262 $ 2,131,690 Loan sourcing fees — 41,694 119,708 56,664 Total – Advisory fees – related party $ 722,135 $ 760,066 $ 2,262,970 $ 2,188,354
Schedule of Related Party Transactions for Expense Reimbursements [Table Text Block]	The Company incurred the following Expense Reimbursements for amounts incurred by the Advisor for research and market data (including the amortization expense related to amounts prepaid to the Advisor) for the three and nine months ended September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 96,728 $ 168,134 $ 506,457 $ 604,959
Schedule of Related Party Transactions for Other Expense [Table Text Block]	Amounts payable to the Advisor for advisory fees, loan sourcing fees and Expense Reimbursements at September 30, 2016 and December 31, 2015 are as follows: September 30, December 31, 2016 2015 $ 763,085 $ 867,415
Schedule of Related Party Transactions for Sub-Lease Income [Table Text Block]	GMFS received the following sub-lease income related to a portion of its office space (see Note 22 – Commitments and Contingencies) from a related party for the three and nine months September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 10,800 $ 10,800 $ 32,400 $ 28,160

Dividends and Distributions (Ta

Dividends and Distributions (Tables)	9 Months Ended
	Sep. 30, 2016
Dividends [Abstract]
Dividends Declared [Table Text Block]	During the nine months ended September 30, 2016 and September 30, 2015 the Company declared the following dividends and distributions: Amount per Share Declaration Date Record Date Payment Date and OP Unit Nine months ended September 30, 2016: March 17, 2016 March 31, 2016 April 15, 2016 $ 0.40 June 16, 2016 June 30, 2016 July 15, 2016 0.40 September 11, 2016 September 30, 2016 October 17, 2016 0.40 Nine months ended September 30, 2015: March 19, 2015 March 31, 2015 April 15, 2015 $ 0.40 June 18, 2015 June 30, 2015 July 15, 2015 0.40 September 17, 2015 September 30, 2015 October 15, 2015 0.40

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Long-term Purchase Commitment [Table Text Block]	Total commitments to originate loans are as follows at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 $ 286,616,522 $ 216,072,457
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	GMFS incurred rent expense as follows for the three and nine months ended September 30, 2016 and September 30, 2015: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 $ 256,556 $ 188,811 $ 752,484 $ 557,331
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	At September 30, 2016, the future minimum rental payments for the period October 1, 2016 to December 31, 2016 and the five years subsequent to December 31, 2016 and thereafter are as follows: October 1, 2016 – December 31, 2016 $ 276,140 2017 $ 965,433 2018 $ 755,788 2019 $ 132,703 2020 $ - Thereafter $ -

Offsetting Assets and Liabili53

Offsetting Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Offsetting [Abstract]
Offsetting Liabilities [Table Text Block]	The following table presents information about certain liabilities that are subject to master netting arrangements (or similar agreements) and can potentially be offset in the Company's consolidated balance sheets at September 30, 2016 and December 31, 2015: Net Amounts of Liabilities Gross Amounts Presented in Gross Amounts Not Offset in the Gross Amounts Offset in the the Consolidated Balance Sheets of Recognized Consolidated Consolidated Financial Cash Collateral Liabilities Balance Sheets Balance Sheets Instruments Pledged Net Amount September 30, 2016 Warehouse lines of credit $ 125,737,022 $ — $ 125,737,022 $ (125,737,022) $ — $ — Treasury securities repurchase agreements 69,994,283 — 69,994,283 (69,994,283) — — Credit Suisse Loan Repurchase Facility 15,000,000 — 15,000,000 (15,000,000) — — Securities repurchase agreements 68,112,976 — 68,112,976 (66,553,370) (1,559,606) — MBS forward sales contracts 1,222,695 — 1,222,695 — — 1,222,695 Interest rate swap agreements 1,699,719 — 1,699,719 — (1,699,719) — Total $ 281,766,695 $ — $ 281,766,695 $ (277,284,675) $ (3,259,325) $ 1,222,695 December 31, 2015 Warehouse lines of credit $ 100,768,428 $ — $ 100,768,428 $ (100,768,428) $ — $ — Loan Repurchase Facilities 296,789,330 — 296,789,330 (296,413,751) (375,579) — Securities repurchase agreements 73,300,159 — 73,300,159 (71,270,578) (2,029,581) — MB forward sales contract 200,204 200,204 — — 200,204 Interest rate swap agreements 1,009,014 — 1,009,014 — (1,009,014) — Total $ 472,067,135 $ — $ 472,067,135 $ (468,452,757) $ (3,414,174) $ 200,204

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Residential Residential Mortgage Mortgage Three Months Ended September 30, 2016: Investments Banking Corporate/Other Total Interest income $ 1,721,249 1,309,231 — 3,030,480 Interest expense 669,862 960,686 1,477,089 3,107,637 Net interest income (expense) 1,051,387 348,545 (1,477,089) (77,157) Non-interest income — 16,838,890 — 16,838,890 Change in unrealized gain or loss 3,718,144 — — 3,718,144 Realized gain 97,666 — — 97,666 Gain/(loss) on derivative instruments related to investment portfolio 709,104 — (492,111) 216,993 Advisory fee – related party 202,197 101,713 418,225 722,135 Salaries, commissions and benefits — 9,777,593 — 9,777,593 Operating expenses 139,623 2,442,180 782,073 3,363,876 Other Expenses: Other Expenses (1,701) — 708,882 707,181 Depreciation and amortization — 240,771 — 240,771 Total other expenses (1,701) 240,771 708,882 947,952 Net income (loss) before income taxes 5,236,182 4,625,178 (3,878,380) 5,982,980 Income tax expense — 1,799,829 — 1,799,829 Segment net income (loss) $ 5,236,182 2,825,349 (3,878,380) 4,183,151 Residential Residential Mortgage Mortgage Three Months Ended September 30, 2015: Investments Banking Corporate/Other Total Interest income $ 8,664,713 $ 986,239 $ — $ 9,650,952 Interest expense 2,687,401 574,977 1,449,476 4,711,854 Net interest income (expense) 5,977,312 411,262 (1,449,476) 4,939,098 Non-interest income — 8,943,047 — 8,943,047 Change in unrealized gain or loss (8,093,720) — — (8,093,720) Realized gain 284,448 — — 284,448 Gain on derivative instruments related to investment portfolio (177,670) — — (177,670) Advisory fee – related party 406,053 138,789 215,224 760,066 Salaries, commissions and benefits — 7,681,983 — 7,681,983 Operating expenses 64,958 1,921,180 1,475,017 3,461,155 Other Expenses: Expenses 717,696 — — 717,696 Depreciation and amortization — 236,212 — 236,212 Total other expenses 717,696 236,212 — 953,908 Net income/(loss) before income taxes (3,198,337) (623,855) (3,139,717) (6,961,909) Income tax expense — 250,491 — 250,491 Segment net income (loss) $ (3,198,337) $ (373,364) $ (3,139,717) $ (6,711,418) Residential Residential Mortgage Mortgage Nine Months Ended September 30, 2016: Investments Banking Corporate/Other Total Interest income $ 13,923,283 2,999,254 — 16,922,537 Interest expense 5,442,545 2,166,145 4,409,949 12,018,639 Net interest income (expense) 8,480,738 833,109 (4,409,949) 4,903,898 Non-interest income — 33,965,177 — 33,965,177 Change in unrealized gain or loss (15,606,548) — — (15,606,548) Realized gain 22,362,296 — — 22,362,296 (Loss)/gain on derivative instruments (414,002) — 24,400 (389,602) Advisory fee – related party 822,532 303,726 1,136,712 2,262,970 Salaries, commissions and benefits — 27,249,531 — 27,249,531 Operating expenses 758,442 5,936,376 2,393,840 9,088,658 Other Expenses: Other Expenses 1,289,093 — 4,696,738 5,985,831 Depreciation and amortization — 710,103 — 710,103 Total other expenses 1,289,093 710,103 4,696,738 6,695,934 Net income (loss) before income taxes 11,952,417 598,550 (12,612,839) (61,872) Income tax expense — 251,924 — 251,924 Segment net income (loss) $ 11,952,417 346,626 (12,612,839) (313,796) Residential Residential Mortgage Mortgage Nine Months Ended September 30, 2015: Investments Banking Corporate/Other Total Interest income $ 26,512,002 $ 2,387,695 $ — $ 28,899,697 Interest expense 8,208,669 1,647,268 4,329,143 14,185,080 Net interest income (expense) 18,303,333 740,427 (4,329,143) 14,714,617 Non-interest income — 35,750,028 — 35,750,028 Change in unrealized gain or loss (10,036,457) — — (10,036,457) Realized gain 933,686 — — 933,686 Gain on derivative instruments 316,697 — — 316,697 Advisory fee – related party 1,102,342 404,053 681,959 2,188,354 Salaries, commissions and benefits — 23,171,648 — 23,171,648 Operating expenses 282,916 6,087,395 3,963,648 10,333,959 Other Expenses: Expenses 2,306,545 64,652 — 2,371,197 Depreciation and amortization — 694,173 — 694,173 Total other expenses 2,306,545 758,825 — 3,065,370 Net income (loss) before income taxes 5,825,456 6,068,534 (8,974,750) 2,919,240 Income tax expense — (2,503,896) — (2,503,896) Segment net income (loss) $ 5,825,456 $ 3,564,638 $ (8,974,750) $ 415,344 The following table is a reconciliation of the net income of the residential mortgage banking segment to the operations of GMFS: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Net income/(loss) of the residential mortgage banking segment $ 2,825,349 $ (373,364) $ 346,626 $ 3,564,638 Add back (deduct) expenses incurred by ZFC: Honeybee TRS, LLC: Advisory fee – related party 101,713 138,789 303,726 404,053 Amortization of deferred premiums, production and profitability earn-outs included in salaries, commission and benefits 204,900 161,620 582,900 592,606 Operating expenses (including change in contingent consideration) 561,470 439,589 954,478 1,543,008 Other expenses 197,085 197,085 591,255 655,907 Income tax expense (benefit) 1,799,829 (250,491) 251,924 2,503,896 Net income/(loss) of GMFS $ 5,690,346 $ 313,228 $ 3,030,909 $ 9,264,108 Supplemental Disclosures Selected segment balance sheet information at September 30, 2016 and December 31, 2015 is as follows: Residential Residential Mortgage Mortgage Investments Banking Corporate/Other Total September 30, 2016 Cash and cash equivalents $ 91,189,563 $ 13,224,386 $ 80,538,042 $ 184,951,991 Mortgage loans held for investment, at fair value 39,951,632 — — 39,951,632 Mortgage loans held for investment, at cost — 1,674,495 — 1,674,495 Mortgage loans held for sale, at fair value — 134,333,273 — 134,333,273 Real estate securities, at fair value 84,754,175 — — 84,754,175 Other Investment Securities, at fair value 13,947,952 — — 13,947,952 Mortgage servicing rights, at fair value — 50,182,593 — 50,182,593 Goodwill — 14,183,537 — 14,183,537 Intangible assets — 4,289,015 — 4,289,015 Total assets 234,424,090 272,968,052 81,237,982 588,630,124 December 31, 2015 Cash and cash equivalents $ 15,082,286 $ 5,702,068 $ 9,362 $ 20,793,716 Mortgage loans held for investment, at fair value 397,678,140 — — 397,678,140 Mortgage loans held for investment, at cost — 1,886,642 — 1,886,642 Mortgage loans held for sale, at fair value — 115,942,230 — 115,942,230 Real estate securities, at fair value 109,339,281 — — 109,339,281 Other Investment Securities, at fair value 12,804,196 — — 12,804,196 Mortgage servicing rights, at fair value — 48,209,016 — 48,209,016 Goodwill — 14,183,537 — 14,183,537 Intangible assets — 4,880,270 — 4,880,270 Total assets 542,396,756 232,450,793 291,372 775,138,921

Formation and Organization (Det

Formation and Organization (Details Textual)	Sep. 27, 2016USD ($)$ / sharesshares	Sep. 12, 2016	Sep. 30, 2016USD ($)$ / sharesshares	Apr. 06, 2016USD ($)	Dec. 31, 2015USD ($)$ / sharesshares
Common Stock, Shares Authorized | shares			500,000,000		500,000,000
Common Stock, Par or Stated Value Per Share | $ / shares			$ 0.0001		$ 0.0001
Preferred Stock, Shares Authorized | shares			50,000,000		50,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares			$ 0.0001		$ 0.0001
Liabilities Subject to Compromise, Early Contract Termination Fees				$ 8,000,000
Intangible Assets, Net (Excluding Goodwill)			$ 4,289,015		$ 4,880,270
Sutherland Asset Management Corporation [Member]
Common Stock, Par or Stated Value Per Share | $ / shares	$ 0.0001
Percentage Of Tender Offer Price On Adjusted Share Price	95.00%
Business Combination Number Of Shares Purchased | shares	4,185,497
Tender Offer Expiration Date			Oct. 25, 2016
Stockholders' Equity Note, Stock Split, Conversion Ratio		0.8356
Share Price | $ / shares	$ 15.37
Payments for Other Fees	$ 8,000,000
Intangible Assets, Net (Excluding Goodwill)	4,064,000
Legal Fees	$ 297,400
Sutherland Partners, L.P. [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		0.8356

Summary of Significant Accoun56

Summary of Significant Accounting Policies (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)	Dec. 31, 2015
Number of Operating Segments	2
Transfer of Portfolio Loans and Leases to Held-for-sale	$ 368,956,195
US Treasury Securities [Member]
US Government Securities, at Carrying Value	$ 69,993,637
ZAIS Financial Partners, LP [Member]
Noncontrolling Interest, Ownership Percentage by Parent	99.30%	89.60%

Acquisition of GMFS (Details)

Acquisition of GMFS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Beginning balance	$ 11,684,100	$ 12,279,645	$ 11,285,100	$ 11,430,413
Change in fair value	530,100	333,019	929,100	1,182,251
Ending balance	$ 12,214,200	$ 12,612,664	$ 12,214,200	$ 12,612,664

Acquisition of GMFS (Details 1)

Acquisition of GMFS (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Beginning balance	$ 14,183,537	$ 16,512,680
Reversal of a liability existing as of the date of acquisition	0	(385,610)
Finalization of purchase price based upon final reconciliation	0	(1,943,533)
Ending balance	$ 14,183,537	$ 14,183,537

Acquisition of GMFS (Details 2)

Acquisition of GMFS (Details 2) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Fair value of Liabilities:
Estimated Fair Value of Intangible Assets	$ 5.8
GMFS, LLC [Member] | Trade Names [Member]
Fair value of Liabilities:
Estimated Fair Value of Intangible Assets	$ 2
Estimated Useful Life	10 years
GMFS, LLC [Member] | Customer Relationships [Member]
Fair value of Liabilities:
Estimated Fair Value of Intangible Assets	$ 1.3
Estimated Useful Life	10 years
GMFS, LLC [Member] | Licenses [Member]
Fair value of Liabilities:
Estimated Fair Value of Intangible Assets	$ 1
Estimated Useful Life	3 years
GMFS, LLC [Member] | Favorable Lease [Member]
Fair value of Liabilities:
Estimated Fair Value of Intangible Assets	$ 1.5
Estimated Useful Life	12 years

Acquisition of GMFS (Details 3)

Acquisition of GMFS (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Amortization expense	$ 197,085	$ 197,085	$ 591,255	$ 591,256

Acquisition of GMFS (Details 4)

Acquisition of GMFS (Details 4) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accumulated Amortization	$ 1,510,985	$ 919,730
Trade Names [Member]
Accumulated Amortization	383,341	233,338
Customer Relationships [Member]
Accumulated Amortization	249,159	151,662
Licenses [Member]
Accumulated Amortization	638,894	388,892
Favorable Lease [Member]
Accumulated Amortization	$ 239,591	$ 145,838

Acquisition of GMFS (Details 5)

Acquisition of GMFS (Details 5)	Sep. 30, 2016USD ($)
Amortization expense related to the intangible assets
October 1, 2016 - December 31, 2016	$ 197,085
2,017	732,776
2,018	455,004
2,019	455,004
2,020	455,004
2,021	$ 455,004

Acquisition of GMFS (Details Te

Acquisition of GMFS (Details Textual) - USD ($)	1 Months Ended
	Oct. 31, 2014	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill		$ 14,183,537	$ 14,183,537	$ 14,183,537	$ 16,512,680
GMFS, LLC [Member]
Business Acquisition [Line Items]
Business Combination Contingent Consideration Arrangements Percentage Which May Be Paid In Stock	50.00%
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 20,000,000
GMFS, LLC [Member] | Discrete Payment One [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Liabilities Incurred	1,000,000
GMFS, LLC [Member] | Deferred Premium Payments [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 2,000,000

Fair Value (Details)

Fair Value (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets
Mortgage loans held for sale	$ 134,333,273		$ 115,942,230	$ 114,670,811		$ 97,690,960
MSRs	50,182,593		48,209,016	42,044,651		33,378,978
Derivative assets	5,462,467		2,376,187
Liabilities
Contingent consideration	12,214,200	$ 11,684,100	11,285,100	$ 12,612,664	$ 12,279,645	$ 11,430,413
Derivative liabilities	2,924,702		1,831,967
Fair Value, Measurements, Recurring [Member]
Assets
Mortgage loans held for investment	39,951,632		397,678,140
Mortgage loans held for sale	134,333,273		115,942,230
Real estate securities	84,754,175		109,339,281
Other Investment Securities	13,947,952		12,804,196
MSRs	50,182,593		48,209,016
Derivative assets	5,462,467		2,376,187
Total	328,632,092		686,349,050
Liabilities
Contingent consideration	12,214,200		11,285,100
Derivative liabilities	2,924,702		1,831,967
Total	15,138,902		13,117,067
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets
Mortgage loans held for investment	0		0
Mortgage loans held for sale	0		0
Real estate securities	0		0
Other Investment Securities	0		0
MSRs	0		0
Derivative assets	0		0
Total	0		0
Liabilities
Contingent consideration	4,226,200		0
Derivative liabilities	0		0
Total	4,226,200		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets
Mortgage loans held for investment	0		0
Mortgage loans held for sale	134,333,273		115,942,230
Real estate securities	0		0
Other Investment Securities	0		0
MSRs	0		0
Derivative assets	0		0
Total	134,333,273		115,942,230
Liabilities
Contingent consideration	0		0
Derivative liabilities	2,924,702		1,822,096
Total	2,924,702		1,822,096
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets
Mortgage loans held for investment	39,951,632		397,678,140
Mortgage loans held for sale	0		0
Real estate securities	84,754,175		109,339,281
Other Investment Securities	13,947,952		12,804,196
MSRs	50,182,593		48,209,016
Derivative assets	5,462,467		2,376,187
Total	194,298,819		570,406,820
Liabilities
Contingent consideration	7,988,000		11,285,100
Derivative liabilities	0		9,871
Total	$ 7,988,000		$ 11,294,971

Fair Value (Details 1)

Fair Value (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Real Estate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 109,339,281	$ 148,585,733
Originations/acquisitions	0	6,362,138
Proceeds from sales	(16,094,301)	(26,770,760)
Amortization of premiums	0	0
Net accretion of discounts	1,465,501	3,263,205
Proceeds from principal repayments	(11,694,754)	(13,975,960)
Conversion of mortgage loans to real estate owned	0	0
Total losses (realized/unrealized) included in earnings	(1,597,292)	(5,485,768)
Total gains (realized/unrealized) included in earnings	3,335,740	1,241,488
Balance, end of period	84,754,175	113,220,076
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	1,832,861	(3,554,935)
Loan Purchase Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	(9,871)	4,037
Change in unrealized gain or loss	9,871	51,443
Balance, end of period	0	55,480
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	0	51,443
Interest Rate Lock Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	2,376,187	2,481,063
Change in unrealized gain or loss	3,086,280	992,196
Balance, end of period	5,462,467	3,473,259
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	3,086,280	992,196
Mortgage Loans Held for Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	397,678,140	415,959,838
Originations/acquisitions	24,328,116	11,359,110
Proceeds from sales	(357,202,632)	0
Amortization of premiums	(123,981)	(2,388)
Net accretion of discounts	3,176,252	5,894,627
Proceeds from principal repayments	(29,261,844)	(25,384,866)
Conversion of mortgage loans to real estate owned	(1,513,223)	(2,134,106)
Total losses (realized/unrealized) included in earnings	24,188,314	(15,316,984)
Total gains (realized/unrealized) included in earnings	(21,317,510)	10,831,119
Balance, end of period	39,951,632	401,206,350
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	609,464	(5,664,885)
Other Investment Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	12,804,196	2,040,532
Originations/acquisitions	0	15,601,330
Proceeds from sales	0	(2,241,387)
Amortization of premiums	0	0
Net accretion of discounts	277,275	124,204
Proceeds from principal repayments	(169,604)	0
Conversion of mortgage loans to real estate owned	0	0
Total losses (realized/unrealized) included in earnings	0	(539,285)
Total gains (realized/unrealized) included in earnings	1,036,085	223,656
Balance, end of period	13,947,952	15,209,050
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$ 1,036,085	$ (449,755)

Fair Value (Details 2)

Fair Value (Details 2) - Level 3 [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Mortgage Loans Held for Investment [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 39,951,632	$ 397,678,140
Mortgage Loans Held for Investment [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	13.20%	1.90%
Constant default rate	0.00%	1.40%
Loss severity	10.00%	5.90%
Delinquency		6.30%
Mortgage Loans Held for Investment [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	29.40%	5.00%
Constant default rate	0.50%	5.00%
Loss severity	10.00%	37.20%
Delinquency		13.20%
Mortgage Loans Held for Investment [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	20.90%	3.20%
Constant default rate	0.20%	3.10%
Loss severity	10.00%	22.10%
Delinquency		10.90%
Alternative - A [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 24,642,186	$ 35,998,175
Alternative - A [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	2.10%	2.70%
Constant default rate	0.10%	0.20%
Loss severity	0.00%	0.00%
Delinquency	1.00%	1.40%
Alternative - A [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	19.80%	18.90%
Constant default rate	15.50%	7.80%
Loss severity	86.40%	85.00%
Delinquency	21.90%	22.20%
Alternative - A [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	12.60%	12.90%
Constant default rate	2.80%	2.80%
Loss severity	24.80%	21.00%
Delinquency	8.20%	8.90%
Pay Option Adjustable Rate [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 26,160,605	$ 32,209,538
Pay Option Adjustable Rate [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	2.60%	2.20%
Constant default rate	0.90%	0.50%
Loss severity	0.00%	0.00%
Delinquency	4.00%	5.30%
Pay Option Adjustable Rate [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	7.60%	13.50%
Constant default rate	9.90%	13.00%
Loss severity	75.20%	95.60%
Delinquency	17.40%	21.90%
Pay Option Adjustable Rate [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	4.70%	7.50%
Constant default rate	3.20%	3.50%
Loss severity	31.60%	40.00%
Delinquency	11.50%	12.30%
Prime [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 26,929,150	$ 32,482,521
Prime [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	3.30%	3.60%
Constant default rate	0.20%	0.50%
Loss severity	0.00%	0.00%
Delinquency	3.80%	4.40%
Prime [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	15.90%	21.00%
Constant default rate	13.50%	9.40%
Loss severity	102.70%	85.10%
Delinquency	26.40%	25.50%
Prime [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	9.00%	8.00%
Constant default rate	3.60%	3.70%
Loss severity	28.20%	28.90%
Delinquency	11.40%	12.00%
Subprime [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 7,022,234	$ 8,649,047
Subprime [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	1.50%	1.20%
Constant default rate	3.60%	3.00%
Loss severity	8.80%	11.10%
Delinquency	17.40%	18.30%
Subprime [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	4.50%	7.70%
Constant default rate	9.00%	8.00%
Loss severity	85.00%	128.50%
Delinquency	22.40%	28.00%
Subprime [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	3.30%	3.90%
Constant default rate	5.10%	6.20%
Loss severity	48.40%	54.00%
Delinquency	19.80%	22.20%
Non-Agency RMBS [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 84,754,175	$ 109,339,281
Other Investment Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 13,947,952	$ 12,804,196
Other Investment Securities [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	4.50%	4.00%
Other Investment Securities [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	30.00%	18.40%
Other Investment Securities [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	9.40%	6.90%
Mortgage Servicing Rights [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 50,182,593	$ 48,209,016
Mortgage Servicing Rights [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	11.20%	8.50%
Cost of servicing	$ 77	$ 77
Discount rate	9.00%	9.00%
Mortgage Servicing Rights [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	13.20%	10.50%
Cost of servicing	$ 108	$ 110
Discount rate	10.00%	10.00%
Mortgage Servicing Rights [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Constant voluntary prepayment	12.30%	9.30%
Cost of servicing	$ 89	$ 92
Discount rate	9.30%	9.40%
Contingent Consideration [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 12,214,200	$ 11,285,100
Contingent Consideration [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	10.20%	10.20%
Production volatility	0.00%	0.00%
Profitability volatility	0.00%	0.00%
Contingent Consideration [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	10.80%	10.80%
Production volatility	0.00%	0.00%
Profitability volatility	0.00%	0.00%
Contingent Consideration [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	10.50%	10.50%
Production volatility	20.00%	20.00%
Profitability volatility	50.00%	50.00%

Fair Value (Details 3)

Fair Value (Details 3) - Interest Rate Lock Commitments [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Pull-through rate	58.50%	62.40%
Servicing fee multiple	(0.40%)	0.80%
Percentage of unpaid principal balance	(0.10%)	0.30%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Pull-through rate	100.00%	100.00%
Servicing fee multiple	6.10%	5.90%
Percentage of unpaid principal balance	2.00%	1.70%
Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Pull-through rate	86.00%	87.60%
Servicing fee multiple	4.50%	4.30%
Percentage of unpaid principal balance	1.10%	1.10%

Fair Value (Details 4)

Fair Value (Details 4) - USD ($)		Sep. 30, 2016	May 26, 2016	Dec. 31, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Unpaid Principal and/or Notional Balance			$ 430,700,000
Mortgage Loans Held for Investment [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value	[1],[2]	$ 39,951,632		$ 397,678,140
Unpaid Principal and/or Notional Balance	[2],[3]	38,776,679		444,500,063
Difference	[1],[2]	1,174,953		(46,821,923)
Mortgage Loans Held for Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value		134,333,273		115,942,230
Unpaid Principal and/or Notional Balance	[3]	127,769,470		111,393,424
Difference		6,563,803		4,548,806
Other Investment Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value		13,947,952		12,804,196
Unpaid Principal and/or Notional Balance	[3]	13,387,632		13,398,851
Difference		560,320		(594,655)
MSRs [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value		50,182,593		48,209,016
Unpaid Principal and/or Notional Balance	[3]	5,120,768,614		4,173,927,393
Difference	[4]	0		0
Real estate securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value	[3]	84,754,175		109,339,281
Unpaid Principal and/or Notional Balance	[3]	126,888,360		168,925,162
Difference	[3]	$ (42,134,185)		$ (59,585,881)
[1]	At September 30, 2016 and December 31, 2015 all collateral provided under the interest rate swap agreements consisted of cash collateral which is included in restricted cash in the Company's consolidated balance sheets.
[2]	At September 30, 2016, the balance is comprised of loans that were newly originated at the time of purchase. At December 31, 2015, the balance is comprised of loans that were (i) distressed and re-performing at the time of purchase and (ii) newly originated at the time of purchase.
[3]	Real estate securities includes an interest only security with a notional balance of $24.5 million and $35.0 million at September 30, 2016 and December 31, 2015, respectively.
[4]	Amounts not presented. Unpaid principal balance of MSRs is generally significantly greater than their fair value.

Fair Value (Details 5)

Fair Value (Details 5) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets
Restricted cash	$ 4,217,791	$ 4,371,725
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Liabilities
Loan repurchase facilities	15,000,000	296,789,330
Estimate of Fair Value Measurement [Member]
Assets
Cash and cash equivalents	184,951,991	20,793,716
Restricted cash	4,217,791	4,371,725
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Liabilities
Treasury securities repurchase agreements	69,994,283	0
Securities repurchase agreements	68,112,976	73,300,159
Exchangeable Senior Notes	57,939,300	56,775,500
Estimate of Fair Value Measurement [Member] | Secured Debt [Member]
Liabilities
Loan repurchase facilities	15,000,000	296,789,330
Estimate of Fair Value Measurement [Member] | Warehouse Agreement Borrowings [Member]
Liabilities
Loan repurchase facilities	125,737,022	100,768,428
Reported Value Measurement [Member]
Assets
Cash and cash equivalents	184,951,991	20,793,716
Restricted cash	4,217,791	4,371,725
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Liabilities
Treasury securities repurchase agreements	69,994,283	0
Securities repurchase agreements	68,112,976	73,300,159
Exchangeable Senior Notes	57,355,775	56,509,046
Reported Value Measurement [Member] | Secured Debt [Member]
Liabilities
Loan repurchase facilities	15,000,000	296,789,330
Reported Value Measurement [Member] | Warehouse Agreement Borrowings [Member]
Liabilities
Loan repurchase facilities	$ 125,737,022	$ 100,768,428

Fair Value (Details Textual)

Fair Value (Details Textual) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Mortgage Loans On Held for Investment [Line Items]
Notional Balance Of IO	$ 24.5	$ 35

Mortgage Loans Held for Inves71

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details)	1 Months Ended
	May 26, 2016USD ($)
Unpaid principal balance and accrued interest	$ 361,081,388
Servicing advances	747,083
Total - proceeds from sale	361,828,471
Payoff Citi Loan Repurchase Facility	(267,192,460)
Net proceeds from sale	$ 94,636,011

Mortgage Loans Held for Inves72

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 1) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Proceeds from sale:
Realized gain (loss) on sale, based on amortized cost	[1]	$ 14,702,874	$ 12,769,854	$ 41,786,819	$ 35,530,805
Reversal of previously recognized change in unrealized gain or loss				(21,792,516)
Net (loss) gain on sale		$ 4,032,803	$ (7,986,942)	6,366,146	$ (8,786,074)
Real Estate Owned [Member]
Proceeds from sale:
Realized gain (loss) on sale, based on amortized cost				106,585
Reversal of previously recognized change in unrealized gain or loss				996,173
Net (loss) gain on sale				1,102,758
Mortgage Loan Held For Sale Previously Held For Investment [Member]
Proceeds from sale:
Realized gain (loss) on sale, based on amortized cost				22,203,418
Reversal of previously recognized change in unrealized gain or loss				(22,788,689)
Net (loss) gain on sale				$ (585,271)
[1]	Includes the change in fair value related to IRLCs and MBS forward sales contracts held during the period.

Mortgage Loans Held for Inves73

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 2) - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2016	Dec. 31, 2015	May 26, 2016
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance				$ 430,700,000
Newly Originated Mortgage Loans [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance		$ 38,776,679	$ 20,742,516
Premium (Discount)		628,278	360,735
Amortized Cost		39,404,957	21,103,251
Gross Unrealized
Gains	[1]	568,685	58,069
Losses	[1]	(22,010)	(117,766)
Fair Value	[1]	$ 39,951,632	$ 21,043,554
Weighted Average Coupon		4.75%	4.95%
Weighted Unleveraged Yield		4.56%	4.79%
Newly Originated Mortgage Loans [Member] | Fixed [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance		$ 30,415,184	$ 17,674,257
Premium (Discount)		510,133	315,860
Amortized Cost		30,925,317	17,990,117
Gross Unrealized
Gains	[1]	512,361	58,069
Losses	[1]	(16,461)	(99,486)
Fair Value	[1]	$ 31,421,217	$ 17,948,700
Weighted Average Coupon		4.84%	5.05%
Weighted Unleveraged Yield		4.57%	4.89%
Newly Originated Mortgage Loans [Member] | ARM [Member
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance		$ 8,361,495	$ 3,068,259
Premium (Discount)		118,145	44,875
Amortized Cost		8,479,640	3,113,134
Gross Unrealized
Gains	[1]	56,324	0
Losses	[1]	(5,549)	(18,280)
Fair Value	[1]	$ 8,530,415	$ 3,094,854
Weighted Average Coupon		4.45%	4.37%
Weighted Unleveraged Yield		4.86%	4.25%
Distressed And Reperforming Loans [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance			$ 423,757,547
Premium (Discount)			(67,763,786)
Amortized Cost			355,993,761
Gross Unrealized
Gains	[1]		30,535,533
Losses	[1]		(9,894,707)
Fair Value	[1]		376,634,587
Difference Between Fair Value and Aggregate Unpaid Principal Balance			$ (47,122,960)
Weighted Average Coupon			4.34%
Weighted Unleveraged Yield			7.45%
Distressed And Reperforming Loans [Member] | Performing Loans [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance			$ 383,656,772
Premium (Discount)			(60,248,656)
Amortized Cost			323,408,116
Gross Unrealized
Gains	[1]		29,544,559
Losses	[1]		(5,648,747)
Fair Value	[1]		347,303,928
Difference Between Fair Value and Aggregate Unpaid Principal Balance			$ (36,352,844)
Weighted Average Coupon			4.30%
Weighted Unleveraged Yield			7.41%
Distressed And Reperforming Loans [Member] | Nonperforming Loans [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance	[2]		$ 40,100,775
Premium (Discount)	[2]		(7,515,130)
Amortized Cost	[2]		32,585,645
Gross Unrealized
Gains	[1],[2]		990,974
Losses	[1],[2]		(4,245,960)
Fair Value	[1],[2]		29,330,659
Difference Between Fair Value and Aggregate Unpaid Principal Balance	[2]		$ (10,770,116)
Weighted Average Coupon	[2]		4.65%
Weighted Unleveraged Yield	[2]		7.78%
Distressed And Reperforming Loans [Member] | Fixed [Member]
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance			$ 240,031,119
Premium (Discount)			(44,650,666)
Amortized Cost			195,380,453
Gross Unrealized
Gains	[1]		23,626,555
Losses	[1]		(2,521,921)
Fair Value	[1]		216,485,087
Difference Between Fair Value and Aggregate Unpaid Principal Balance			$ (23,546,032)
Weighted Average Coupon			4.70%
Weighted Unleveraged Yield			7.59%
Distressed And Reperforming Loans [Member] | ARM [Member
Mortgage Loans On Held for Investment [Line Items]
Unpaid Principal Balance			$ 143,625,653
Premium (Discount)			(15,597,990)
Amortized Cost			128,027,663
Gross Unrealized
Gains	[1]		5,918,004
Losses	[1]		(3,126,826)
Fair Value	[1]		130,818,841
Difference Between Fair Value and Aggregate Unpaid Principal Balance			$ (12,806,812)
Weighted Average Coupon			3.63%
Weighted Unleveraged Yield			7.15%
[1]	The Company has elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The Company recorded the following as change in unrealized gain or loss on mortgage loans held for investment and held for sale previously held for investment in the condensed consolidated statements of operations:
[2]	Loans that were delinquent for 60 days or more are considered non-performing.

Mortgage Loans Held for Inves74

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Parenthetical) (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Loans Delinquent Considered Nonperforming			60 days or more
Distressed And Reperforming Loans [Member]
Unrealized Gain (Loss) on Investments, Total	$ 0	$ (5,753,002)	$ (20,640,826)	$ (5,632,684)
Newly Originated Mortgage Loans [Member]
Unrealized Gain (Loss) on Investments, Total	$ (71,687)	$ 102,078	$ 606,377	$ 29,001

Mortgage Loans Held for Inves75

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 3) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Change in accretable yield:
Accretable yield, beginning of period	$ 247,751,944	$ 267,509,905
Accretion	(2,410,833)	(19,347,512)
Reclassifications from nonaccretable difference	0	7,760,664
Reduction due to sale of loans	(245,341,111)	0
Accretable yield, end of period	$ 0	$ 255,923,057

Mortgage Loans Held for Inves76

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 4) - Distressed And Reperforming Loans [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Acquisition of Mortgage Loans Held for Investment [Line Items]
Aggregate Unpaid Principal Balance	$ 0	$ 8,291,350	$ 23,941,629	$ 11,171,269
Loan Repurchase Facility [Member]
Acquisition of Mortgage Loans Held for Investment [Line Items]
Loan Repurchase Facilities Used	$ 0	$ 7,265,036	$ 21,289,983	$ 9,746,638

Mortgage Loans Held for Inves77

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 5)	9 Months Ended		12 Months Ended
	Sep. 30, 2016		Dec. 31, 2015
Geographic Concentration Risk [Member] | Percentage of fair value of mortgage loans with unpaid principal balance to current property value in excess of 100% [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%		44.10%
Geographic Concentration Risk [Member] | California [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	47.50%		26.20%
Geographic Concentration Risk [Member] | Florida [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	[1]	16.10%
Geographic Concentration Risk [Member] | Georgia [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	6.60%		6.10%
Geographic Concentration Risk [Member] | Texas [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	8.10%		0.00%	[2]
Geographic Concentration Risk [Member] | Louisiana [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	6.60%		0.00%	[2]
Loans With unpaid principal balance of mortgage loans carrying mortgage insurance [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%		8.20%
[1]	State did not represent more than 10% of the fair value as of the balance sheet date.
[2]	State did not represent more than 5% of the fair value as of the balance sheet date.

Mortgage Loans Held for Inves78

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 6)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Minimum [Member]
Mortgage Loans on Real Estate, Interest Rate	3.50%	1.75%
Mortgage Loans On Real Estate, Contractual Maturities	15 years	1 year
Maximum [Member]
Mortgage Loans on Real Estate, Interest Rate	6.75%	12.20%
Mortgage Loans On Real Estate, Contractual Maturities	30 years	45 years

Mortgage Loans Held for Inves79

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details 7) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Net realizable value (included in other assets in the Company's consolidated balance sheets)	$ 0	$ 1,784,670
Carrying amount of mortgage loans held for investment, at fair value secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction	$ 0	$ 5,597,611

Mortgage Loans Held for Inves80

Mortgage Loans Held for Investment, at Fair Value and Held for Sale Previously Held for Investment, at Fair Value (Details Textual)	1 Months Ended
	May 26, 2016USD ($)
Mortgage Loans on Real Estate [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 430,700,000
Payments for Origination of Mortgage Loans Held-for-sale	267,192,460
Proceeds from Sale of Mortgage Servicing Rights (MSR)	747,083
Non Interest bearing Mortgage loan [Member]
Mortgage Loans on Real Estate [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 27,000,000

Mortgage Loans Held for Sale,81

Mortgage Loans Held for Sale, at Fair Value (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Balance at beginning of period	$ 115,942,230	$ 97,690,960
Originations and purchases	1,632,229,133	1,449,538,666
Proceeds from sales and principal payments	(1,674,425,261)	(1,481,473,208)
Transfers from mortgage loans held for investment, at cost	0	65,983
Gain on sale, net	60,587,171	48,848,410
Balance at end of period	$ 134,333,273	$ 114,670,811

Mortgage Loans Held for Sale,82

Mortgage Loans Held for Sale, at Fair Value (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Mortgage Loans Held for Sale, Unpaid Principal Balance	$ 127,769,470	$ 111,393,424
Mortgage Loans Held for Sale, Fair Value	134,333,273	115,942,230	$ 114,670,811	$ 97,690,960
Conventional Mortgage Loan [Member]
Mortgage Loans Held for Sale, Unpaid Principal Balance	80,090,505	54,962,904
Mortgage Loans Held for Sale, Fair Value	82,145,748	56,586,717
Governmental Mortgages [Member]
Mortgage Loans Held for Sale, Unpaid Principal Balance	19,296,747	30,531,301
Mortgage Loans Held for Sale, Fair Value	21,760,490	32,131,354
United States Department of Agriculture Loans [Member]
Mortgage Loans Held for Sale, Unpaid Principal Balance	20,189,456	16,222,152
Mortgage Loans Held for Sale, Fair Value	21,407,652	17,059,982
United States Department of Veteran Affairs Loans [Member]
Mortgage Loans Held for Sale, Unpaid Principal Balance	7,701,386	8,922,978
Mortgage Loans Held for Sale, Fair Value	8,456,556	9,314,255
Reverse Mortgages [Member]
Mortgage Loans Held for Sale, Unpaid Principal Balance	491,376	754,089
Mortgage Loans Held for Sale, Fair Value	$ 562,827	$ 849,922

Real Estate Securities and Ot83

Real Estate Securities and Other Investment Securities, at Fair Value (Details) - USD ($)		9 Months Ended		12 Months Ended
		Sep. 30, 2016		Dec. 31, 2015
Alternative Mortgage Backed Securities Issued By Private Enterprises [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 53,343,081		$ 76,328,172
Investment Owned, Premium (Discount)		(28,651,212)		(40,150,416)
Investment Owned, Amortized Cost		24,691,869		36,177,756
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	843,160		846,318
Investment Owned, Gross Unrealized Losses	[1]	(892,843)		(1,025,899)
Investment Owned, at Fair Value		$ 24,642,186		$ 35,998,175
Investment Owned, Weighted Average Coupon		2.05%		2.01%
Investment Owned, Weighted Average Unleveraged Yield		5.29%		6.18%
Pay Option Adjustable Rate [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 33,130,938		$ 42,562,819
Investment Owned, Premium (Discount)		(5,338,366)		(7,480,996)
Investment Owned, Amortized Cost		27,792,572		35,081,823
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	84,743		6,863
Investment Owned, Gross Unrealized Losses	[1]	(1,716,710)		(2,879,148)
Investment Owned, at Fair Value		$ 26,160,605		$ 32,209,538
Investment Owned, Weighted Average Coupon		1.27%		1.10%
Investment Owned, Weighted Average Unleveraged Yield		4.12%		5.31%
Prime [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 30,189,757		$ 37,366,079
Investment Owned, Premium (Discount)		(3,769,477)		(4,732,637)
Investment Owned, Amortized Cost		26,420,280		32,633,442
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	733,888		563,311
Investment Owned, Gross Unrealized Losses	[1]	(225,018)		(714,232)
Investment Owned, at Fair Value		$ 26,929,150		$ 32,482,521
Investment Owned, Weighted Average Coupon		3.82%		3.62%
Investment Owned, Weighted Average Unleveraged Yield		5.53%		5.95%
Subprime [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 10,224,584		$ 12,668,092
Investment Owned, Premium (Discount)		(3,655,606)		(4,039,253)
Investment Owned, Amortized Cost		6,568,978		8,628,839
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	545,827		111,651
Investment Owned, Gross Unrealized Losses	[1]	(92,571)		(91,443)
Investment Owned, at Fair Value		$ 7,022,234		$ 8,649,047
Investment Owned, Weighted Average Coupon		0.68%		0.93%
Investment Owned, Weighted Average Unleveraged Yield		6.60%		6.63%
Total non-Agency RMBS [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 126,888,360		$ 168,925,162
Investment Owned, Premium (Discount)		(41,414,661)		(56,403,302)
Investment Owned, Amortized Cost		85,473,699		112,521,860
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	2,207,618		1,528,143
Investment Owned, Gross Unrealized Losses	[1]	(2,927,142)		(4,710,722)
Investment Owned, at Fair Value		$ 84,754,175		$ 109,339,281
Investment Owned, Weighted Average Coupon		2.16%		2.05%
Investment Owned, Weighted Average Unleveraged Yield		5.09%		5.87%
Other Investment Securities [Member]
Investment Holdings [Line Items]
Investment Owned, Principal or Notional Balance		$ 13,387,632	[2]	$ 13,398,851	[3]
Investment Owned, Premium (Discount)		84,626	[2]	(34,264)	[3]
Investment Owned, Amortized Cost		13,472,258	[2]	13,364,587	[3]
Unrealized Gain (Loss) on Investments [Abstract]
Investment Owned, Gross Unrealized Gains	[1]	518,537	[2]	897	[3]
Investment Owned, Gross Unrealized Losses	[1]	(42,843)	[2]	(561,288)	[3]
Investment Owned, at Fair Value		$ 13,947,952	[2]	$ 12,804,196	[3]
Investment Owned, Weighted Average Coupon		5.05%	[2]	4.94%	[3]
Investment Owned, Weighted Average Unleveraged Yield		5.90%	[2]	6.65%	[3]
[1]	The Company has elected the fair value option pursuant to ASC 825 for real estate securities. The Company recorded the changes in unrealized gain or loss in the condensed consolidated statements of operations.
[2]	See Note 2 – Summary of Significant Accounting Policies – “Other Investment Securities".
[3]	See Note 2 – Summary of Significant Accounting Policies – “Other Investment Securities".

Real Estate Securities and Ot84

Real Estate Securities and Other Investment Securities, at Fair Value (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Notional balance of IO included in Alternative A	$ 24,500,000	$ 35,000,000
Other Debt Obligations [Member]
Investment Holdings [Line Items]
Notional balance of IO included in Alternative A	$ 0	$ 0
Other Debt Obligations [Member] | Maximum [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	11 years 7 months 6 days	12 years 3 months 18 days
Other Debt Obligations [Member] | Minimum [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	7 years 8 months 12 days	8 years 4 months 24 days
Other Debt Obligations [Member] | Weighted Average [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	9 years 3 months 18 days	10 years 1 month 6 days
Residential Mortgage Backed Securities [Member]
Investment Holdings [Line Items]
Notional balance of IO included in Alternative A	$ 24,512,929	$ 35,042,860
Residential Mortgage Backed Securities [Member] | Maximum [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	30 years 6 months	31 years 3 months 18 days
Residential Mortgage Backed Securities [Member] | Minimum [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	18 years 7 months 6 days	18 years 1 month 6 days
Residential Mortgage Backed Securities [Member] | Weighted Average [Member]
Investment Holdings [Line Items]
Investment Contractual Maturities Of Securities	24 years 2 months 12 days	24 years 4 months 24 days

Mortgage Servicing Rights, at85

Mortgage Servicing Rights, at Fair Value (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Servicing Assets at Fair Value [Line Items]
Balance at beginning of period				$ 48,209,016	$ 33,378,978
Additions due to loans sold, servicing retained				17,437,135	14,323,953
Change in fair value of MSRs
Changes in values of market related inputs or assumptions used in a valuation model	[1],[2]			(9,934,160)	(3,571,775)
Other changes	[3],[4]			(5,529,398)	(2,086,505)
Total - change in fair value of MSRs		$ (1,214,135)	$ (5,881,088)	(15,463,558)	(5,658,280)
Balance at end of period		$ 50,182,593	$ 42,044,651	$ 50,182,593	$ 42,044,651
[1]	Included in change in fair value of MSRs in the Company's condensed consolidated statements of operations.
[2]	Primarily reflects changes in values of prepayment assumptions due to changes in interest rates.
[3]	Included in change in fair value of MSRs in the Company's condensed consolidated statements of operations.
[4]	Represents change in value primarily due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid off or paid down during the period.

Mortgage Servicing Rights, at86

Mortgage Servicing Rights, at Fair Value (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Mortgage Servicing Rights [Member]
The amount of total losses included in earnings attributable to the change in unrealized gains or losses relating to the MSRs still held at the reporting date	$ (9,934,160)	$ (3,571,775)

Mortgage Servicing Rights, at87

Mortgage Servicing Rights, at Fair Value (Details 2) - USD ($)		Sep. 30, 2016	May 26, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
Unpaid Principal Balance			$ 430,700,000
Fair Value		$ 50,182,593		$ 48,209,016	$ 42,044,651	$ 33,378,978
MSRs [Member]
Servicing Assets at Fair Value [Line Items]
Unpaid Principal Balance	[1]	5,120,768,614		4,173,927,393
Fair Value		50,182,593		48,209,016
Fannie Mae [Member] | MSRs [Member]
Servicing Assets at Fair Value [Line Items]
Unpaid Principal Balance		2,116,921,260		1,880,177,827
Fair Value		19,905,312		20,751,648
Ginnie Mae [Member] | MSRs [Member]
Servicing Assets at Fair Value [Line Items]
Unpaid Principal Balance		1,718,154,049		1,488,159,758
Fair Value		18,247,015		18,231,527
Freddie Mac [Member] | MSRs [Member]
Servicing Assets at Fair Value [Line Items]
Unpaid Principal Balance		1,285,693,305		805,589,808
Fair Value		$ 12,030,266		$ 9,225,841
[1]	Real estate securities includes an interest only security with a notional balance of $24.5 million and $35.0 million at September 30, 2016 and December 31, 2015, respectively.

Mortgage Servicing Rights, at88

Mortgage Servicing Rights, at Fair Value (Details 3) - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		$ (50,182,593)	$ (48,209,016)	$ (42,044,651)	$ (33,378,978)
Mortgage Servicing Rights [Member] | Effect of Discount Rate At Five Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(887,857)	(958,786)
Mortgage Servicing Rights [Member] | Effect of Prepayment Rate At Five Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(1,203,181)	(938,584)
Mortgage Servicing Rights [Member] | Effect Of Cost of Servicing At Five Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(561,962)	(547,228)
Mortgage Servicing Rights [Member] | Effect of Discount Rate At Ten Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(1,745,636)	(1,881,870)
Mortgage Servicing Rights [Member] | Effect of Discount Rate At Twenty Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(3,376,644)	(3,628,281)
Mortgage Servicing Rights [Member] | Effect of Prepayment Rate At Ten Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(2,306,597)	(1,756,195)
Mortgage Servicing Rights [Member] | Effect of Prepayment Rate At Twenty Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(4,445,283)	(3,428,890)
Mortgage Servicing Rights [Member] | Effect Of Cost of Servicing At Ten Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		(1,123,925)	(1,094,455)
Mortgage Servicing Rights [Member] | Effect Of Cost of Servicing At Twenty Percent [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount		$ (2,247,882)	$ (2,188,910)
Minimum [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Fair Value Inputs, Discount Rate		6.50%	6.60%
Fair Value Inputs, Prepayment Rate	[1]	8.90%	7.00%
Per-loan annual to Cost of Servicing		$ 63	$ 64
Maximum [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Fair Value Inputs, Discount Rate		12.10%	12.20%
Fair Value Inputs, Prepayment Rate	[1]	16.10%	12.00%
Per-loan annual to Cost of Servicing		$ 117	$ 119
Weighted Average [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Fair Value Inputs, Discount Rate		9.40%	9.40%
Fair Value Inputs, Prepayment Rate	[1]	12.50%	9.30%
Per-loan annual to Cost of Servicing		$ 90	$ 92
[1]	Prepayment speed is measured using Constant Prepayment Rates (“CPR”).

Mortgage Servicing Rights, at89

Mortgage Servicing Rights, at Fair Value (Details 4) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Servicing Assets at Fair Value [Line Items]
Loan servicing fee income	$ 3,521,122	$ 2,729,891	$ 10,033,264	$ 7,613,023
Late fee income	196	29	501	64
Sub-servicing costs	(1,383,526)	(989,813)	(3,786,526)	(2,568,246)
Loan servicing fee income, net of direct costs	$ 2,137,792	$ 1,740,107	$ 6,247,239	$ 5,044,841

Warehouse Lines of Credit (Deta

Warehouse Lines of Credit (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Maturity dates	October 2016 – September 2017	June 2016 – November 2016
Warehouse Agreement Borrowings [Member]
Short-term Debt [Line Items]
Availability	$ 200,000,000	$ 185,000,000

Treasury Securities and Treas91

Treasury Securities and Treasury Securities Repurchase Agreements(Details ) - US Treasury Securities [Member]	9 Months Ended
	Sep. 30, 2016USD ($)
Par	$ 70,000,000
Carrying amount	$ 69,993,637
Maturity	Oct. 20, 2016
Balance sheet line item	Cash and cash equivalents

Treasury Securities and Treas92

Treasury Securities and Treasury Securities Repurchase Agreements(Details1) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Outstanding balance	$ 69,994,283	$ 0
US Treasury Securities [Member]
Outstanding balance	$ 69,994,283
Interest rate	0.30%
Maturity	Oct. 20, 2016

Loan Repurchase Facilities (Det

Loan Repurchase Facilities (Details) - Loan Repurchase Facility [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2016
Line of Credit Facility [Line Items]
Total facility size	$ 15,000,000		$ 36,000,000
Maturity date	Nov. 11, 2016
Citibank, N.A [Member]
Line of Credit Facility [Line Items]
Total facility size		$ 325,000,000
Amount committed		$ 150,000,000
Maturity date		May 20, 2016
Outstanding balance		$ 279,467,573
Credit Suisse [Member]
Line of Credit Facility [Line Items]
Total facility size	$ 15,000,000	100,000,000
Amount committed	$ 0	$ 25,000,000
Maturity date	Nov. 11, 2016	Jun. 27, 2016
Outstanding balance	$ 15,000,000	$ 17,321,757

Loan Repurchase Facilities (D94

Loan Repurchase Facilities (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Fair value of Trust Certificates pledged as collateral	$ 35,615,300	$ 394,942,512
Cash pledged as collateral	$ 0	$ 375,579

Loan Repurchase Facilities (D95

Loan Repurchase Facilities (Details Textual) - Secured Debt [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Line of Credit Facility, Expiration Date	Nov. 11, 2016
Line of Credit Facility, Maximum Borrowing Capacity	$ 15	$ 36
Repayments of Lines of Credit	$ 15

Securities Repurchase Agreeme96

Securities Repurchase Agreements (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Fair value of Other Investment Securities pledged as collateral	$ 82,686,633	$ 95,627,850
Cash pledged as collateral	0	375,579
Repurchase Agreements [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Cash pledged as collateral	1,559,606	2,029,581
Non-Agency RMBS [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Fair value of non-Agency RMBS pledged as collateral	82,686,633	95,627,850
Other Investment Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Fair value of Other Investment Securities pledged as collateral	$ 11,023,416	$ 1,989,174

8.0% Exchangeable Senior Note97

8.0% Exchangeable Senior Notes due 2016 (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Nov. 25, 2013
Debt Instrument [Line Items]
Fair value of conversion option derivative liability	$ 2,924,702	$ 1,831,967
Exchangeable Senior Notes Conversion Option [Member]
Debt Instrument [Line Items]
Fair value of conversion option derivative liability	2,288	612,878	$ 1,300,000
Unamortized discount	$ 144,225	$ 990,954

8.0% Exchangeable Senior Note98

8.0% Exchangeable Senior Notes due 2016 (Details Textual)	1 Months Ended		9 Months Ended
	Dec. 27, 2013	Nov. 25, 2013USD ($)$ / shares	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 19, 2013$ / shares
Debt Instrument [Line Items]
Derivative Liability			$ 2,924,702	$ 1,831,967
8.0% Exchangeable Senior Notes due 2016
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 1,000
Debt Instrument Repurchase Price, Percentage on Principal Amount		100.00%
Exchangeable Senior Notes Conversion Option [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 57,500,000
Proceeds from sale of debt		$ 55,300,000
Effective annual rate			10.20%
Percentage of shares outstanding issuable upon exchange			20.00%
Number of shares issuable upon exchange			1,779,560
Conversion ratio	54.3103	52.5417
Exchange price | $ / shares		$ 19.03
Dividend threshold requiring adjustment to exchange rate | $ / shares		$ 0.50
Debt Instrument, Interest Rate, Stated Percentage			8.00%
Purchase Discount Amount		$ 1,700,000
Derivative Liability		1,300,000	$ 2,288	$ 612,878
Aggregate estimated offering expenses		$ 2,200,000
Exchangeable Senior Notes Conversion Option [Member] | Maximum [Member]
Debt Instrument [Line Items]
Conversion ratio		60.4229
Special Cash Dividend [Member]
Debt Instrument [Line Items]
Dividend declared, amount per share | $ / shares					$ 0.55

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Interest Rate Swaps [Member]
Derivative [Line Items]
Notional amount	$ 17,200,000	$ 17,200,000
Loan Purchase Commitments [Member]
Derivative [Line Items]
Notional amount	0	18,494,332
Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Notional amount	314,509,503	190,933,017
MBS Forward Sales Contracts [Member]
Derivative [Line Items]
Notional amount	$ 324,500,000	$ 179,417,280

Derivative Instruments (Deta100

Derivative Instruments (Details 1) - Non-hedge [Member] - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative assets (liabilities), at fair value	$ (1,699,719)	$ (1,009,014)
Loan Purchase Commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative assets (liabilities), at fair value	0	(9,871)
Interest Rate Lock Commitments [Member]
Derivatives, Fair Value [Line Items]
Derivative assets (liabilities), at fair value	5,462,467	2,376,187
MBS forward sales contracts
Derivatives, Fair Value [Line Items]
Derivative assets (liabilities), at fair value	(1,222,695)	(200,204)
Exchangeable Senior Notes Conversion Option [Member]
Derivatives, Fair Value [Line Items]
Derivative assets (liabilities), at fair value	$ (2,288)	$ (612,878)

Derivative Instruments (Deta101

Derivative Instruments (Details 2) - Non-hedge derivatives [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest Rate Swap [Member] | Investment portfolio [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments	$ 122,914	$ (675,562)	$ (1,010,063)	$ (748,348)
Loan Purchase Commitments [Member] | Investment portfolio [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments	0	118,277	9,871	51,443
Interest Rate Lock Commitments [Member] | Mortgage banking activities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments	(911,307)	1,227,839	3,086,280	992,196
MBS Forward Sales Contracts [Member] | Mortgage banking activities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments	1,545,236	(1,593,515)	(1,022,491)	(631,445)
Exchangeable Senior Notes Conversion Option [Member] | Investment portfolio [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments	$ 94,079	$ 379,615	$ 610,590	$ 1,013,602

Derivative Instruments (Deta102

Derivative Instruments (Details 3) - Swap [Member] - USD ($)		9 Months Ended	12 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Maturity		2,023	2,023
Notional Amount		$ 17,200,000	$ 17,200,000
Weighted Average Pay Rate		2.72%	2.72%
Weighted Average Receive Rate		0.65%	0.33%
Weighted Average Years to Maturity		6 years 9 months 18 days	7 years 7 months 6 days
Cash Pledged as Collateral	[1]	$ 2,658,185	$ 1,966,565
[1]	At September 30, 2016 and December 31, 2015 all collateral provided under the interest rate swap agreements consisted of cash collateral which is included in restricted cash in the Company's consolidated balance sheets.

Mortgage Banking Activities (De

Mortgage Banking Activities (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Gain on sale of mortgage loans held for sale, net of direct costs	[1]	$ 14,702,874	$ 12,769,854	$ 41,786,819	$ 35,530,805
Loan expenses, including the (increase)/decrease in provision for loan indemnifications		995,078	(208,576)	573,127	(602,926)
Loan origination fee income		195,567	507,082	765,926	1,395,863
Total		$ 15,893,519	$ 13,068,360	$ 43,125,872	$ 36,323,742
[1]	Includes the change in fair value related to IRLCs and MBS forward sales contracts held during the period.

Loan Indemnification Reserve (D

Loan Indemnification Reserve (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Decrease in reserves for aged performing loans	$ (1,297,943)	$ 0
Indemnification Reserve [Member]
Balance at the beginning of period	3,201,000	2,662,162
Loan indemnification losses incurred	0	(198,834)
Provision for loan indemnification losses based on loans sold during the period	648,375	576,654
Balance at end of period	$ 2,551,432	$ 3,039,982

Income Taxes (Details)

Income Taxes (Details)		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Tax expense (benefit) at statutory rate		34.00%	(35.00%)	(34.00%)	35.00%
State and local taxes, net of federal benefit		3.95%	(0.85%)	137.62%	7.91%
Impact of REIT election	[1]	(7.28%)	29.21%	950.93%	17.63%
Change in valuation allowance	[2]	(0.79%)	2.85%	(738.43%)	23.25%
Other non-deductible/non-taxable items	[3]	0.11%	0.19%	82.52%	1.98%
Adjustment of Tax Rate used to value deferred taxes	[4]	0.09%	0.00%	8.54%	0.00%
Effective Tax Rate		30.08%	(3.60%)	407.18%	85.77%
[1]	For all tax years, the Company’s effective tax rate differs from its statutory tax rate due to the deduction for dividend distributions required to be paid under Code section 857(a).
[2]	For the three and nine months ended September 30, 2016 and September 30, 2015, the change in valuation allowance relates to the change in reserve related to net operating losses and other future deductible items for ZFC Trust TRS I, LLC and ZFC Funding, Inc.
[3]	For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to non-deductible meals and entertainment expenses.
[4]	For the three and nine months ended September 30, 2016 and September 30, 2015, the amount primarily relates to the change in state income tax used to value deferred tax assets and liabilities of ZFC Honeybee TRS LLC.

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Expense (Benefit)	$ 1,799,829	$ (250,491)	$ 251,924	$ 2,503,896
ZFC Honeybee TRS, LLC [Member]
Deferred Tax Liabilities, Net, Total	$ 3,816,401		$ 3,816,401		$ 3,564,478

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income/(loss) attributable to ZAIS Financial Corp. common stockholders (Basic)	$ 4,110,691	$ (6,040,746)	$ 33,938	$ 386,845
Effect of dilutive securities:
Net income/(loss) allocated to non-controlling interests relating to OP Units exchangeable for shares of common stock of the Company	72,460	(670,672)	(347,734)	28,499
Exchangeable Senior Notes:
Interest expense	841,723	0	0	0
Gain on conversion option derivative liability	(53,611)	0	0	0
Total - Exchangeable Senior Notes	788,112	0	0	0
Net income/(loss) available to stockholders, after effect of dilutive securities	$ 4,927,132	$ (6,743,206)	$ (411,808)	$ 431,833
Denominator:
Weighted average number of shares of common stock	8,836,902	7,970,886	8,261,665	7,970,886
Effect of dilutive securities:
Weighted average number of OP units	60,898	926,914	636,135	926,914
Weighted average number of shares convertible under Exchangeable Senior Notes	1,779,560	0	0	0
Diluted weighted average shares outstanding	10,677,360	8,897,800	8,897,800	8,897,800
Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders - Basic	$ 0.47	$ (0.76)	$ 0	$ 0.05
Net income/(loss) per share applicable to ZAIS Financial Corp. common stockholders - Diluted	$ 0.46	$ (0.76)	$ 0	$ 0.05

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Weighted Average Number of Shares Outstanding, Diluted	10,677,360	8,897,800	8,897,800	8,897,800
New York Stock Exchange [Member]
Weighted Average Number of Shares Outstanding, Diluted			1,779,560

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Advisory fee - related party	$ 722,135	$ 760,066	$ 2,262,970	$ 2,188,354
ZAIS REIT Management, LLC | Advisory Fee [Member]
Related Party Transaction [Line Items]
Advisory fee - related party	722,135	718,372	2,143,262	2,131,690
ZAIS REIT Management, LLC | Loan Sourcing Fee [Member]
Related Party Transaction [Line Items]
Advisory fee - related party	$ 0	$ 41,694	$ 119,708	$ 56,664

Related Party Transactions (110

Related Party Transactions (Details 1) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Expense Reimbursements			$ 763,085		$ 867,415
Operating Expense [Member]
Related Party Transaction [Line Items]
Expense Reimbursements	$ 96,728	$ 168,134	$ 506,457	$ 604,959

Related Party Transactions (111

Related Party Transactions (Details 2) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Expense Reimbursements	$ 763,085	$ 867,415

Related Party Transactions (112

Related Party Transactions (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
GMFS, LLC [Member]
Related Party Transaction [Line Items]
Operating Leases, Income Statement, Sublease Revenue	$ 10,800	$ 10,800	$ 32,400	$ 28,160

Related Party Transactions (113

Related Party Transactions (Details Textual) - ZAIS REIT Management, LLC	9 Months Ended
	Sep. 30, 2016	Aug. 11, 2014
Related Party Transaction [Line Items]
Loan origination Rate		0.50%
Advisory Fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction Advisory Fee Rate	1.50%

Dividends and Distributions (De

Dividends and Distributions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Dividend Declared On March 17,2016 [Member]
Dividends Payable [Line Items]
Record Date	Mar. 31, 2016
Payment Date	Apr. 15, 2016
Amount per Share and OP Unit	$ 0.4
Dividend Declared On June 16,2016 [Member]
Dividends Payable [Line Items]
Record Date	Jun. 30, 2016
Payment Date	Jul. 15, 2016
Amount per Share and OP Unit	$ 0.4
Dividend Declared On Septmber 11,2016 [Member]
Dividends Payable [Line Items]
Record Date	Sep. 30, 2016
Payment Date	Oct. 17, 2016
Amount per Share and OP Unit	$ 0.40
Dividend Declared On March 19,2015 [Member]
Dividends Payable [Line Items]
Record Date		Mar. 31, 2015
Payment Date		Apr. 15, 2015
Amount per Share and OP Unit		$ 0.4
Dividend Declared On June 18,2015 [Member]
Dividends Payable [Line Items]
Record Date		Jun. 30, 2015
Payment Date		Jul. 15, 2015
Amount per Share and OP Unit		$ 0.4
Dividend Declared On Septmber 17,2016 [Member]
Dividends Payable [Line Items]
Record Date		Sep. 30, 2015
Payment Date		Oct. 15, 2015
Amount per Share and OP Unit		$ 0.40

Non-Controlling Interests (Deta

Non-Controlling Interests (Details Textual)	1 Months Ended
	Jun. 17, 2016shares
Noncontrolling Interest [Line Items]
Partners' Capital Account, Units	893,256
Partners' Capital Account, Units, Treasury Units Purchased	866,016

Commitments and Contingencie116

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies [Line Items]
Total commitments to originate loans	$ 286,616,522	$ 216,072,457

Commitments and Contingencie117

Commitments and Contingencies (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commitments and Contingencies [Line Items]
GMFS rent expense	$ 256,556	$ 188,811	$ 752,484	$ 557,331

Commitments and Contingencie118

Commitments and Contingencies (Details 2)	Sep. 30, 2016USD ($)
October 1, 2016 - December 31, 2016	$ 276,140
2,017	965,433
2,018	755,788
2,019	132,703
2,020	0
Thereafter	$ 0

Commitments and Contingencie119

Commitments and Contingencies (Details Textual)	Sep. 30, 2016USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Escrow Deposit	$ 4,008,754

Counterparty Risk and Concen120

Counterparty Risk and Concentration (Details Textual)	9 Months Ended
	Sep. 30, 2016
Concentration Risk, Credit Risk, Uninsured Deposits	The Company's deposits with financial institutions may exceed federally insurable limits of $250,000 per institution.

Offsetting Assets and Liabil121

Offsetting Assets and Liabilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 281,766,695	$ 472,067,135
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	281,766,695	472,067,135
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(277,284,675)	(468,452,757)
Cash Collateral Pledged	(3,259,325)	(3,414,174)
Net Amount	1,222,695	200,204
Warehouse Lines of Credit [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	125,737,022	100,768,428
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	125,737,022	100,768,428
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(125,737,022)	(100,768,428)
Cash Collateral Pledged	0	0
Net Amount	0	0
Treasury securities repurchase agreements [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	69,994,283
Gross Amounts Offset in the Consolidated Balance Sheets	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	69,994,283
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(69,994,283)
Cash Collateral Pledged	0
Net Amount	0
Loan Repurchase Facilities [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	15,000,000	296,789,330
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	15,000,000	296,789,330
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(15,000,000)	(296,413,751)
Cash Collateral Pledged	0	(375,579)
Net Amount	0	0
Securities repurchase agreements [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	68,112,976	73,300,159
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	68,112,976	73,300,159
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	(66,553,370)	(71,270,578)
Cash Collateral Pledged	(1,559,606)	(2,029,581)
Net Amount	0	0
MBS Forward Sales Contracts [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	1,222,695
Gross Amounts Offset in the Consolidated Balance Sheets	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	1,222,695
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	0
Cash Collateral Pledged	0
Net Amount	1,222,695
MB Forward Sales Contracts [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities		200,204
Gross Amounts Offset in the Consolidated Balance Sheets
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets		200,204
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments		0
Cash Collateral Pledged		0
Net Amount		200,204
Interest rate swap agreements [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	1,699,719	1,009,014
Gross Amounts Offset in the Consolidated Balance Sheets	0	0
Net Amounts of Liabiliies Presented in the Consolidated Balance Sheets	1,699,719	1,009,014
Gross Amounts Not Offset in the Consolidated Balance Sheets
Financial Instruments	0	0
Cash Collateral Pledged	(1,699,719)	(1,009,014)
Net Amount	$ 0	$ 0

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Interest income	$ 3,030,480	$ 9,650,952	$ 16,922,537	$ 28,899,697
Interest expense	3,107,637	4,711,854	12,018,639	14,185,080
Net interest income (expense)	(77,157)	4,939,098	4,903,898	14,714,617
Non-interest income	16,838,890	8,943,047	33,965,177	35,750,028
Change in unrealized gain or loss	3,718,144	(8,093,720)	(15,606,548)	(10,036,457)
Realized gain	97,666	284,448	22,362,296	933,686
Gain/(loss) on derivative instruments related to investment portfolio	216,993	(177,670)	(389,602)	316,697
Advisory fee - related party	722,135	760,066	2,262,970	2,188,354
Salaries, commissions and benefits	9,777,593	7,681,983	27,249,531	23,171,648
Operating expenses	3,363,876	3,461,155	9,088,658	10,333,959
Other Expenses:
Other Expenses	707,181	717,696	5,985,831	2,371,197
Depreciation and amortization	240,771	236,212	710,103	694,173
Total other expenses	947,952	953,908	6,695,934	3,065,370
Net income (loss) before income taxes	5,982,980	(6,961,909)	(61,872)	2,919,240
Income tax expense	1,799,829	(250,491)	251,924	2,503,896
Segment net income (loss)	4,183,151	(6,711,418)	(313,796)	415,344
Residential Mortgage Investment [Member]
Segment Reporting Information [Line Items]
Interest income	1,721,249	8,664,713	13,923,283	26,512,002
Interest expense	669,862	2,687,401	5,442,545	8,208,669
Net interest income (expense)	1,051,387	5,977,312	8,480,738	18,303,333
Non-interest income	0	0	0	0
Change in unrealized gain or loss	3,718,144	(8,093,720)	(15,606,548)	(10,036,457)
Realized gain	97,666	284,448	22,362,296	933,686
Gain/(loss) on derivative instruments related to investment portfolio	709,104	(177,670)	(414,002)	316,697
Advisory fee - related party	202,197	406,053	822,532	1,102,342
Salaries, commissions and benefits	0	0	0	0
Operating expenses	139,623	64,958	758,442	282,916
Other Expenses:
Other Expenses	(1,701)	717,696	1,289,093	2,306,545
Depreciation and amortization	0	0	0	0
Total other expenses	(1,701)	717,696	1,289,093	2,306,545
Net income (loss) before income taxes	5,236,182	(3,198,337)	11,952,417	5,825,456
Income tax expense	0	0	0	0
Segment net income (loss)	5,236,182	(3,198,337)	11,952,417	5,825,456
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Interest income	1,309,231	986,239	2,999,254	2,387,695
Interest expense	960,686	574,977	2,166,145	1,647,268
Net interest income (expense)	348,545	411,262	833,109	740,427
Non-interest income	16,838,890	8,943,047	33,965,177	35,750,028
Change in unrealized gain or loss	0	0	0	0
Realized gain	0	0	0	0
Gain/(loss) on derivative instruments related to investment portfolio	0	0	0	0
Advisory fee - related party	101,713	138,789	303,726	404,053
Salaries, commissions and benefits	9,777,593	7,681,983	27,249,531	23,171,648
Operating expenses	2,442,180	1,921,180	5,936,376	6,087,395
Other Expenses:
Other Expenses	0	0	0	64,652
Depreciation and amortization	240,771	236,212	710,103	694,173
Total other expenses	240,771	236,212	710,103	758,825
Net income (loss) before income taxes	4,625,178	(623,855)	598,550	6,068,534
Income tax expense	1,799,829	250,491	251,924	(2,503,896)
Segment net income (loss)	2,825,349	(373,364)	346,626	3,564,638
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Interest expense	1,477,089	1,449,476	4,409,949	4,329,143
Net interest income (expense)	(1,477,089)	(1,449,476)	(4,409,949)	(4,329,143)
Non-interest income	0	0	0	0
Change in unrealized gain or loss	0	0	0	0
Realized gain	0	0	0	0
Gain/(loss) on derivative instruments related to investment portfolio	(492,111)	0	24,400	0
Advisory fee - related party	418,225	215,224	1,136,712	681,959
Salaries, commissions and benefits	0	0	0	0
Operating expenses	782,073	1,475,017	2,393,840	3,963,648
Other Expenses:
Other Expenses	708,882	0	4,696,738	0
Depreciation and amortization	0	0	0	0
Total other expenses	708,882	0	4,696,738	0
Net income (loss) before income taxes	(3,878,380)	(3,139,717)	(12,612,839)	(8,974,750)
Income tax expense	0	0	0	0
Segment net income (loss)	$ (3,878,380)	$ (3,139,717)	$ (12,612,839)	$ (8,974,750)

Segment Information (Details 1)

Segment Information (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Advisory fee - related party	$ 722,135	$ 760,066	$ 2,262,970	$ 2,188,354
Amortization of deferred premiums, production and profitability earn-outs included in salaries, commission and benefits	9,777,593	7,681,983	27,249,531	23,171,648
Operating expenses (including change in contingent consideration)	3,363,876	3,461,155	9,088,658	10,333,959
Income tax expense (benefit)	1,799,829	(250,491)	251,924	2,503,896
Net income/(loss) of GMFS	4,183,151	(6,711,418)	(313,796)	415,344
Residential Mortgage Banking Segment [Member]
Net income/(loss) of GMFS	2,825,349	(373,364)	346,626	3,564,638
Residential Mortgage Banking Segment [Member] | GMFS, LLC [Member]
Advisory fee - related party	101,713	138,789	303,726	404,053
Amortization of deferred premiums, production and profitability earn-outs included in salaries, commission and benefits	204,900	161,620	582,900	592,606
Operating expenses (including change in contingent consideration)	561,470	439,589	954,478	1,543,008
Other expenses	197,085	197,085	591,255	655,907
Income tax expense (benefit)	1,799,829	(250,491)	251,924	2,503,896
Net income/(loss) of GMFS	$ 5,690,346	$ 313,228	$ 3,030,909	$ 9,264,108

Segment Information (Details 2)

Segment Information (Details 2) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 184,951,991	$ 20,793,716	$ 29,366,231	$ 33,791,013
Mortgage loans held for investment, at fair value	39,951,632	397,678,140
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Mortgage loans held for sale, at fair value	134,333,273	115,942,230	114,670,811	97,690,960
Real estate securities, at fair value	84,754,175	109,339,281
Other Investment Securities, at fair value	13,947,952	12,804,196
Mortgage servicing rights, at fair value	50,182,593	48,209,016	42,044,651	33,378,978
Goodwill	14,183,537	14,183,537	$ 14,183,537	$ 16,512,680
Intangible assets	4,289,015	4,880,270
Total assets	588,630,124	775,138,921
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	80,538,042	9,362
Mortgage loans held for investment, at fair value	0	0
Mortgage loans held for investment, at cost	0	0
Mortgage loans held for sale, at fair value	0	0
Real estate securities, at fair value	0	0
Other Investment Securities, at fair value	0	0
Mortgage servicing rights, at fair value	0	0
Goodwill	0	0
Intangible assets	0	0
Total assets	81,237,982	291,372
Residential Mortgage Investment [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	91,189,563	15,082,286
Mortgage loans held for investment, at fair value	39,951,632	397,678,140
Mortgage loans held for investment, at cost	0	0
Mortgage loans held for sale, at fair value	0	0
Real estate securities, at fair value	84,754,175	109,339,281
Other Investment Securities, at fair value	13,947,952	12,804,196
Mortgage servicing rights, at fair value	0	0
Goodwill	0	0
Intangible assets	0	0
Total assets	234,424,090	542,396,756
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	13,224,386	5,702,068
Mortgage loans held for investment, at fair value	0	0
Mortgage loans held for investment, at cost	1,674,495	1,886,642
Mortgage loans held for sale, at fair value	134,333,273	115,942,230
Real estate securities, at fair value	0	0
Other Investment Securities, at fair value	0	0
Mortgage servicing rights, at fair value	50,182,593	48,209,016
Goodwill	14,183,537	14,183,537
Intangible assets	4,289,015	4,880,270
Total assets	$ 272,968,052	$ 232,450,793

Subsequent Events (Details Text

Subsequent Events (Details Textual) - Warehouse Agreement Borrowings [Member] - USD ($)	Oct. 03, 2016	Sep. 30, 2016	Dec. 31, 2015
Line of Credit Facility, Maximum Borrowing Capacity		$ 200,000,000	$ 185,000,000
Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000
Line of Credit Facility, Expiration Date	Sep. 29, 2017