Ready Capital (RC) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 14, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Sutherland Asset Management Corp
Entity Central Index Key	1,527,590
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		30,549,084
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 109,280,847

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 59,566	$ 41,569
Restricted cash	20,190	14,757
Short term investments	319,984	249,989
Loans, held-for-investment (net of allowances for loan losses of $12,721 at December 31, 2016 and $12,255 at December 31, 2015)	929,529	927,218
Loans, held at fair value	81,592	155,134
Loans, held for sale, at fair value	181,797
Mortgage backed securities, at fair value	32,391	213,504
Loans eligible for repurchase from Ginnie Mae	137,986
Real estate accrued in settlement of loans	3,933	8,224
Derivative instruments, at fair value	5,785	723
Servicing rights	22,478	27,250
Residential mortgage servicing rights, at fair value	61,376
Intangible assets	3,636	1,000
Other assets	53,928	30,045
Assets of consolidated VIEs	691,096	649,043
Assets of discontinued operations held for sale		11,325
Total assets	2,605,267	2,329,781
Liabilities:
Borrowings under credit facilities	326,610	175,306
Promissory note payable	7,378
Securitized debt obligations of consolidated VIEs	492,942	461,522
Borrowings under repurchase agreements	600,852	644,137
Guaranteed loan financing	390,555	499,187
Contingent consideration	14,487
Liabilities for loans eligible for repurchase from Ginnie Mae	137,986
Derivative instruments, at fair value	643	1,499
Dividends payable	11,505	13,366
Accounts payable and other accrued liabilities	70,207	47,665
Liabilities of discontinued operations held for sale		6,886
Total liabilities	2,053,165	1,849,568
Stockholders’ Equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 30,549,084 and 25,739,847 common shares issued and outstanding, respectively	3	2
Preferred stock, $1,000 par value, 125 shares authorized, 125 shares issued and outstanding as of December 31, 2015		125
Additional paid-in capital	513,295	447,093
Retained deficit	(201)	(5,899)
Total Sutherland Asset Management Corporation equity	513,097	441,321
Non-controlling interests	39,005	38,892
Total Stockholders’ Equity	552,102	480,213
Total Liabilities and Stockholders’ Equity	$ 2,605,267	$ 2,329,781

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Parenthetical information
Loan receivable allowance	$ 12,721	$ 12,255
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized capital	500,000,000	500,000,000
Common stock, issued	30,549,084	25,739,847
Common stock, outstanding	30,549,084	25,739,847
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, authorized capital	125	125
Preferred stock, issued		125
Preferred stock, outstanding		125

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income
Loans, held-for-investment	$ 117,049	$ 120,664	$ 76,078
Loans, held at fair value	13,457	16,210	12,040
Loans, held for sale, at fair value	1,627
Mortgage backed securities, at fair value	4,890	12,081	4,829
Total interest income	137,023	148,955	92,947
Interest expense
Borrowings under credit facilities	(9,495)	(8,194)	(8,858)
Promissory note payable	(164)
Securitized debt obligations of consolidated VIEs	(17,619)	(11,018)	(3,857)
Borrowings under repurchase agreements	(16,344)	(16,287)	(4,254)
Guaranteed loan financing	(13,971)	(12,307)	(2,276)
Exchangeable senior notes	(179)
Total interest expense	(57,772)	(47,806)	(19,245)
Net interest income before provision for loan losses	79,251	101,149	73,702
Provision for loan losses	(7,819)	(19,643)	(11,797)
Net interest income after provision for loan losses	71,432	81,506	61,905
Other income (expense)
Other income	10,565	14,431	8,081
Servicing income, net of amortization and impairment of $7,732, $10,499 and $5,615, respectively	8,658	5,133	2,456
Gain on bargain purchase	15,218
Employee compensation and benefits	(24,665)	(18,801)	(12,791)
Allocated employee compensation and benefits from related party	(3,668)	(3,323)	(2,364)
Professional fees	(13,420)	(6,954)	(6,339)
Management fees – related party	(7,432)	(7,260)	(7,019)
Incentive fees – related party		(965)
Loan servicing (expense) income	(4,611)	(4,384)	(10,300)
Other operating expenses	(17,939)	(12,065)	(10,837)
Total other income (expense)	(37,294)	(34,188)	(39,113)
Net realized gain on financial instruments	15,996	181	7,037
Net unrealized gain on financial instruments	15,081	5,732	6,461
Net income from continued operations before income tax provisions	65,215	53,231	36,290
Provision for income taxes	(9,651)	(7,810)	(897)
Net income from continuing operations	55,564	45,421	35,393
Discontinued operations
Loss from discontinued operations (including loss on disposal of $2,695 in 2016)	(3,538)	(5,103)	(2,671)
Income tax benefit	1,380	4,450
Loss from discontinued operations	(2,158)	(653)	(2,671)
Net income	53,406	44,768	32,722
Less: Net income attributable to non-controlling interest	4,237	4,385	3,385
Net income attributable to Sutherland Asset Management Corporation	$ 49,169	$ 40,383	$ 29,337
Basic and diluted earnings (loss) per share:
Continuing operations	$ 1.93	$ 1.62	$ 1.30
Discontinued operations	$ (0.08)	$ (0.03)	$ (0.11)
Basic and diluted weighted-average shares outstanding	26,647,981	25,287,277	24,595,199

CONSOLIDATED STATEMENTS OF INC5

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF INCOME
Amortization and impairment of servicing rights	$ 7,732	$ 10,499	$ 5,615
Loss on disposal of discontinued operations	$ 2,695	$ 1,650

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Stock	Preferred stock	Additional Paid-in-Capital	Retained Earnings (Deficit)	Noncontrolling OP unit holders	Total
Balance at January 1, at Dec. 31, 2013	$ 2		$ 422,810	$ (1,832)	$ 49,927	$ 470,907
Balance (in shares) January 1, at Dec. 31, 2013	24,392,890
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.96 in 2014, $1.49 in 2015, and $0.30, $0.35, and $0.38 per share in 2016)				(28,195)		(28,195)
Dividend reinvestment in common stock			3,625			3,625
Dividend reinvestment in common stock (shares)	201,817
Conversion of Operating Partnership units into REIT or common shares			9		(9)
Conversion of Operating Partnership units into REIT or common shares (in shares)	493
Issuance of Preferred Stock, net of offering costs		$ 125	(17)			108
Number of shares issued (shares)		125
Transfer of Additional Paid-In Capital			1,528	(148)	(1,380)
Offering costs allocated to Additional Paid-In Capital			(1,684)		(195)	(1,879)
Dividend declared on operating partnership units					(3,251)	(3,251)
Dividend reinvestment in operating partnership units					654	654
Net Income				29,337	3,385	32,722
Balance at December 31, at Dec. 31, 2014	$ 2	$ 125	426,271	(838)	49,131	474,691
Balance (in shares) at December 31 at Dec. 31, 2014	24,595,200	125
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.96 in 2014, $1.49 in 2015, and $0.30, $0.35, and $0.38 per share in 2016)				(45,444)		(45,444)
Dividend reinvestment in common stock			7,448			7,448
Dividend reinvestment in common stock (shares)	418,942
Conversion of Operating Partnership units into REIT or common shares			13,484		(13,484)
Conversion of Operating Partnership units into REIT or common shares (in shares)	725,705
Offering costs allocated to Additional Paid-In Capital			(110)		(11)	(121)
Dividend declared on operating partnership units					(3,869)	(3,869)
Dividend reinvestment in operating partnership units					2,740	2,740
Net Income				40,383	4,385	44,768
Balance at December 31, at Dec. 31, 2015	$ 2	$ 125	447,093	(5,899)	38,892	480,213
Balance (in shares) at December 31 at Dec. 31, 2015	25,739,847	125
Increase (Decrease) in Stockholders' Equity
Shares issued pursuant to reverse merger transaction	$ 1		62,328			62,329
Shares issued pursuant to reverse merger transaction (in shares)	4,651,424
Shares redeemed pursuant to reverse merger transaction			(1)			(1)
Shares redeemed pursuant to reverse merger transaction (in shares)	(66)
Dividend declared on common stock ($0.96 in 2014, $1.49 in 2015, and $0.30, $0.35, and $0.38 per share in 2016)				(43,463)		(43,463)
Dividend reinvestment in common stock			1,806			1,806
Dividend reinvestment in common stock (shares)	103,440
Incentive shares issued			482			482
Incentive shares issued (in shares)	27,199
Conversion of Operating Partnership units into REIT or common shares			458		(458)
Conversion of Operating Partnership units into REIT or common shares (in shares)	27,240
Transfer of Additional Paid-In Capital			1,134		(1,134)
OP units issued pursuant to reverse merger transaction					816	816
Dividend declared on preferred stock				(8)		(8)
Redemption of preferred stock		$ (125)	(5)			(130)
Redemption of preferred stock (in shares)		(125)
Dividend declared on operating partnership units					(3,707)	(3,707)
Dividend reinvestment in operating partnership units					359	359
Net Income				49,169	4,237	53,406
Balance at December 31, at Dec. 31, 2016	$ 3		$ 513,295	$ (201)	$ 39,005	$ 552,102
Balance (in shares) at December 31 at Dec. 31, 2016	30,549,084

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity
Dividend per share	$ 0.30	$ 1.49	$ 0.96
Second dividend per share	0.35
Third dividend per share	$ 0.38

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net income	$ 53,406	$ 44,768	$ 32,722
Less: Net loss from discontinued operations	(2,158)	(653)	(2,671)
Net income from continuing operations	55,564	45,421	35,393
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Discount accretion and premium amortization of financial instruments, net	(17,978)	(22,195)	(34,167)
Amortization of guaranteed loan financing, deferred financing costs, and intangible assets	19,457	9,782	6,306
Provision for loan losses	7,819	19,643	11,797
Charge off of real estate acquired in settlement of loans	1,833	849	749
Decrease in repair and denial reserve	(1,258)	(10,120)	(3,216)
Purchase of short-term investments and trading securities	(1,569,614)	(253,752)	(349,990)
Proceeds from sale of short-term investments and trading securities	1,569,992	255,087	100,338
Net settlement of derivative instruments	(2,058)	(4,621)	(2,542)
Origination of loans, held for sale, at fair value	(621,343)
Proceeds from disposition and principal payment of loans, held for sale, at fair value	645,954
Gain on bargain purchase	(15,218)
Net realized gains on financial instruments	(15,996)	(181)	(7,037)
Net unrealized gains on financial instruments	(15,081)	(5,732)	(6,461)
Net changes in operating assets and liabilities
Assets of consolidated VIEs, accrued interest and due from servicers	(21,817)	(1,983)	(4,869)
Other assets	(13,354)	4,625	(26,039)
Accounts payable and other accrued liabilities	9,580	(8,322)	23,251
Net cash provided by (used in) operating activities	16,482	28,501	(256,487)
Net cash (used in) provided by operating activities of discontinued operations	(1,719)	428	(588)
Cash Flow From Investing Activities:
Origination of loans, held at fair value	(147,823)	(346,442)	(261,977)
Purchase of loans, held-for-investment	(98,683)	(172,097)	(646,686)
Origination of loans, held-for-investment	(167,516)	(105,838)	(32,889)
Purchase of mortgage backed securities, at fair value	(17,388)	(77,918)	(192,293)
Purchase of real estate			(1,311)
Purchase of servicing rights			(42,340)
Purchase of intangible assets			(2,183)
Payment of liability under participation agreements	(2,318)	(3,746)	(3,854)
Proceeds from disposition and principal payment of loans, held at fair value	39,671	145,804	17,796
Proceeds from disposition and principal payment of loans, held-for-investment	440,294	342,806	231,590
Proceeds from sale and principal payment of mortgage backed securities, at fair value	297,250	17,908	34,507
Proceeds from sale of real estate	6,633	7,565	11,096
Proceeds from liabilities under participation agreements		17	2,014
Proceeds from sale of intangible assets		2,500
Assumption of repair and denial reserve			21,407
Decrease/(Increase) in restricted cash	(357)	2,016	(15,051)
Decrease in cash held as collateral			(220)
Cash acquired in connection with the reverse merger with ZFC	34,932
Net cash provided by (used in) investing activities	384,695	(187,425)	(880,394)
Net cash used in investing activities of discontinued operations		(1,264)	(460)
Cash Flows From Financing Activities:
Proceeds from borrowings under credit facilities	164,018	90,745	462,485
Proceeds from issuance of securitized debt obligations of consolidated VIEs	150,367	374,818	144,615
Proceeds from borrowings under repurchase agreements	4,296,634	8,923,929	1,466,825
Proceeds from guaranteed loan financing			116,306
Proceeds from promissory note payable	9,164
Payment of borrowings under credit facilities	(155,177)	(121,619)	(202,623)
Payments of securitized debt obligations of consolidated VIEs	(123,093)	(91,407)	(20,500)
Payment of borrowings under repurchase agreements	(4,493,024)	(8,907,533)	(954,587)
Payment of guaranteed loan financing	(122,603)	(86,039)	(10,156)
Payment of promissory note payable	(1,786)
Payment of senior exchangeable note	(57,500)
Payment of deferred financing costs	(1,456)	(2,575)	(6,687)
(Redemption)/Issuance of preferred stock	(130)		108
Dividend payments on preferred stock	(8)
Dividend payments on common stock	(46,866)	(35,609)	(17,317)
Payment of offering costs		(121)	(1,879)
Shares redeemed pursuant to reverse merger transaction	(1)
Net cash provided by (used in) financing activities	(381,461)	144,589	976,590
Net increase (decrease) in cash and cash equivalents	17,997	(15,171)	(161,339)
Cash and cash equivalents at beginning of period	41,569	56,740	218,079
Cash and cash equivalents at end of period	59,566	41,569	56,740
Supplemental disclosure of operating cash flow
Cash paid for interest	54,686	45,334	17,707
Cash paid for taxes	5,795	6,995	1,136
Supplemental disclosure of non-cash investing activities
Loans and borrowings brought on books as a result of the ReadyCap Lending Small Business Trust 2015-1 securitization		474,198
Securitized loans transferred from Loans, held at fair value to Loans, held-for-investment	174,332	225,811	186,497
Loans transferred from Loans, held for sale, at fair value to Loans, held-for-investment	482
Loans transferred from Loans, held at fair value to Loans, held for sale, at fair value	11,499
Supplemental disclosure of non-cash financing activities
Dividend reinvestment in common stock	1,806	7,448	3,625
Dividend reinvestment in operating partnership units	359	$ 2,740	$ 654
Common stock issued in connection with the reverse merger with ZAIS Financial Corp	$ 62,329
Shares issued to investment manager pursuant to management agreement, not in thousands	482,391

Organization

Organization	12 Months Ended
	Dec. 31, 2016
Organization
Organization	Note 1 – Organization Sutherland Asset Management Corporation (the “Company” or “Sutherland” and together with its subsidiaries “we,” “us” and “our”) is a Maryland corporation formed on November 4, 2013. The Company is externally managed and advised by Waterfall Asset Management, LLC (“Waterfall” or the “Manager”), an investment advisor registered with the United States Securities and Exchange Commission under the Investment Advisors Act of 1940, as amended. Sutherland Partners, LP (the “Operating Partnership”) holds substantially all of our assets and conducts substantially all of our business. As of December 31, 2016 and 2015, the Company owned approximately 92.9% and 91.9% of the operating partnership units (“OP units”) of the Operating Partnership, respectively. The Company, as sole general partner of the Operating Partnership, has responsibility and discretion in the management and control of the Operating Partnership, and the limited partners of the Operating Partnership, in such capacity, have no authority to transact business for, or participate in the management activities of the Operating Partnership. Therefore, the Company consolidates the Operating Partnership. The Company, together with its consolidated subsidiaries and variable interest entities (“VIEs”), is a specialty-finance company which acquires, originates, manages, services and finances small balance commercial (“SBC”) loans, Small Business Administration (“SBA”) loans, residential mortgage loans, and to a lesser extent, mortgage backed securities (“MBS”) collateralized primarily by SBC loans, or other real estate-related investments. SBC loans represent a special category of commercial loans, sharing both commercial and residential loan characteristics. SBC loans are generally secured by first mortgages on commercial properties, but because SBC loans are also often accompanied by collateralization of personal assets and subordinate lien positions, aspects of residential mortgage credit analysis are utilized in the underwriting process. On October 31, 2016, we completed our path to becoming a publicly traded company through our merger with and into a subsidiary of ZAIS Financial, with ZAIS Financial legally surviving the merger and changing its name to Sutherland Asset Management Corporation. On November 1, 2016, we began trading on the New York Stock Exchange (“NYSE”) under ticker symbol “SLD”. See further discussion in Note 5, Business Combinations. The Company operates in four reportable segments: Loan Acquisitions, SBC Conventional Originations, SBA Originations, Acquisitions and Servicing, and Residential Mortgage Banking. The Loan Acquisitions segment represents the Company’s investments in SBC loans, real estate acquired in settlement of loans (“REO”), MBS and equity securities traded on public exchanges. Management seeks to maximize the value of the SBC loans acquired by the Company through proprietary loan modification programs, special servicing and other initiatives focused on keeping borrowers in their properties. Where this is not possible, such as in the case of many non-performing loans, the Company seeks to effect property resolution in a timely, orderly and economically efficient manner, including through the use of resolution alternatives to foreclosure. The SBC Conventional Originations segment is operated through a wholly-owned subsidiary, ReadyCap Commercial, LLC (“RCC”), a wholly-owned subsidiary of ReadyCap Holdings, LLC (collectively, “ReadyCap”). RCC originates SBC loans through multiple loan origination channels. These loans may be financed though borrowings under credit facilities, borrowings under repurchase agreements and securitization transactions. The SBA Originations, Acquisitions, and Servicing segment is operated through ReadyCap Lending, LLC (“Lending” or “RCL”), a wholly-owned subsidiary of ReadyCap Holdings, LLC. RCL acquires, originates and services loans guaranteed by the SBA under the SBA loan program. RCL holds a SBA license as a Small Business Lending Company and has been granted preferred lender status by the SBA. The Residential Mortgage Banking segment is operated through GMFS, LLC (“GMFS”), a mortgage banking platform and a wholly-owned subsidiary we acquired as part of the ZAIS Financial merger. GMFS originates, sells and services residential mortgage loans. GMFS is an approved Fannie Mae Seller-Servicer, Freddie Mac Seller-Servicer, Ginnie Mae issuer, Department of Housing and Urban Development (“HUD”) / Federal Housing Administration (“FHA”) Mortgagee, U.S. Department of Agriculture (“USDA”) approved originator and U.S. Department of Veterans Affairs (“VA”) Lender. GMFS currently originates loans that are eligible to be purchased, guaranteed or insured by Fannie Mae, Freddie Mac, FHA, USDA and VA through retail, correspondent and broker channels. GMFS also originates and sells reverse mortgage loans as part of its existing operations. The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), commencing with its first taxable year ended December 31, 2013. To maintain its tax status as a REIT, the Company distributes at least 90% of its taxable income in the form of qualifying distributions to shareholders. In the fourth quarter of 2015, the Company determined Silverthread Falls, LLC (“Silverthread”) , a brokerage subsidiary, was classified as held-for-sale due to management’s intent to sell the business, and the Company has included Silverthread in discontinued operations. The trade date of the Silverthread sale was February 28, 2016 and the closing occurred in May of 2016.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2016
Basis of Presentation
Basis of Presentation	Note 2 – Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the U.S. Securities and Exchange Commission. Per ASC 805-40-45-1, we were designated as the accounting acquirer (accounting survivor) because of our larger pre-merger size relative to ZAIS Financial, the relative voting interests of our stockholders after consummation of the merger, and our senior management and board continuing on after the consummation of the merger. As the accounting acquirer, our historical financial statements (and not those of ZAIS Financial) are the historical financial statements following the consummation of the merger and are included in this annual report on Form 10-K and the related financial statements and footnotes. Historical stockholders’ equity of the Company prior to the reverse acquisition has been retrospectively adjusted (a recapitalization) for the equivalent number of shares received by the Company after giving effect to any difference in par value of the ZAIS Financial’s and the Company’s stock with any such difference recognized in equity. Retained earnings of the Company have been carried forward after the acquisition. Operations prior to the merger are those of the Company. Under the terms of the merger agreement: (1) stockholders of ZAIS Financial and unitholders in the ZAIS operating partnership retained their existing shares and partnership units following the merger, (2) each outstanding share of Sutherland common stock was converted into 0.8356 of ZAIS Financial common stock and (3) each outstanding partnership unit of Sutherland operating partnership was converted into 0.8356 units of limited partnership interests in the operating partnership.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3 – Summary of Significant Accounting Policies Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Basis of Consolidation The accompanying consolidated financial statements of the Company include the accounts and results of operations of the Operating Partnership and other consolidated subsidiaries and VIEs in which we are the primary beneficiary. The consolidated financial statements are prepared in accordance with ASC 810, Consolidations. Intercompany accounts and transactions have been eliminated. Reclassifications Certain amounts reported for the prior periods in the accompanying consolidated financial statements, as described in Note 27, have been reclassified in order to conform to the current period’s presentation. The historical results of Silverthread been reflected in the accompanying consolidated statements of income for the years ended December 31, 2014, 2015, and 2016 as discontinued operations and financial information related to discontinued operations has been excluded from the notes to these financial statements for all periods presented. Cash and Cash Equivalents The Company has accounted for cash and cash equivalents in accordance with ASC 305, Cash and Cash Equivalents. The Company defines cash and cash equivalents as cash, demand deposits, and short-term, highly liquid investments with original maturities of 90 days or less when purchased as cash equivalents. Cash and cash equivalents are exposed to concentrations of credit risk. We deposit our cash with institutions, which we believe to have highly valuable and defensible business franchises, strong financial fundamentals, and predictable and stable operating environments. As of December 31, 2016 and 2015, the Company had $0.6 million in money market mutual funds, and substantially all of the Company’s cash and cash equivalents not held in money market funds were comprised of cash balances with banks that are in excess of the Federal Deposit Insurance Corporation insurance limits. Restricted Cash Restricted cash represents cash held by the Company, as collateral against its derivatives, borrowings under repurchase agreements, and borrowings under credit facilities with counterparties, as well as cash held for remittance on loans serviced for third parties and collateral related to the ReadyCap Commercial Freddie Mac program. Restricted cash is not available for general corporate purposes, but may be applied against amounts due to counterparties under existing swaps and repurchase agreement borrowings, or returned to the Company when the collateral requirements are exceeded or at the maturity of the swap or repurchase agreement. Restricted cash is returned to the Company when our collateral requirements are exceeded or at the maturity or termination of the derivative, borrowings under repurchase agreements and borrowings under credit facilities. Short-term investments The Company accounts for short-term investments as trading securities under ASC 320, Investments-Debt and Equity Securities . Short-term investments consist of U.S. Treasury Bills with original maturities of less than a year but greater than three months. The Company holds short-term investments at fair value. Interest received and accrued as well as the accretion of purchase discount in connection with short-term investments is recorded as interest income on the consolidated statements of income. Changes in the fair value of short-term investments are recorded as net unrealized gain (loss) on the consolidated statements of income. Loans, held for sale, at fair value Loans, held for sale, at fair value are loans originated by ReadyCap and GMFS that are expected to be sold to third parties in the near term. Interest is recognized as interest income on the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) on the consolidated statements of income. The Company transfers loans held for sale, at fair value to loans, held-for-investment when the Company no longer intends to sell the loans. Loans, held at fair value Loans, held at fair value are loans originated by ReadyCap. The Company has elected the fair value option because of the intent to transfer to securitizations in the near term. Interest is recognized as interest income on the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) on the consolidated statements of income. The Company transfers loans held at fair value to loans, held-for-investment on the date of securitization. Loans, held-for-investment Loans, held-for-investment are loans acquired from third parties, loans originated by ReadyCap that we do not intend to securitize or sell, or securitized loans that were previously originated by ReadyCap. Securitized loans remain on the Company’s balance sheet because the securitization vehicles are consolidated under ASC 810. Acquired loans are recorded at cost at the time they are acquired and any related allowance for loan losses is not carried over at the acquisition date. These acquired loans are segmented into two groups at time of purchase. Loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) and referred to as “Credit Impaired Loans” if both of the following conditions are met as of the acquisition date: (i) there is evidence of deterioration in credit quality of the loan since its origination and (ii) it is probable that we will not collect all contractual cash flows on the loan. Acquired loans without evidence of these conditions, securitized loans, and loans originated by ReadyCap that we do not intend to securitize are accounted for under ASC 310-10, Receivables- Overall , (“ASC 310-10”) and are referred to as “Non-credit Impaired Loans”. Non-credit Impaired Loans The Company uses the interest method to recognize, as a level-yield adjustment, the difference between the initial recorded investment in the loan and the principal amount of the loan. The calculation of the constant effective yield necessary to apply the interest method uses the payment terms required by the loan contract, and prepayments of principal are not anticipated to shorten the loan term. For non-credit impaired loans, recognition of interest income is suspended when any loans are placed on non-accrual status. Generally, all classes of loans are placed on non-accrual status when principal or interest has been delinquent for 90 days or when full collection is determined not to be probable. Interest income accrued, but not collected, at the date loans are placed on non-accrual status is reversed and subsequently recognized only to the extent it is received in cash or until it qualifies for return to accrual status. However, where there is doubt regarding the ultimate collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Loans are restored to accrual status only when contractually current and the collection of future payments is reasonably assured. Credit Impaired Loans The estimated cash flows expected for each loan is estimated at the time the loan is acquired. The excess of the cash flows expected to be collected on credit impaired loans, measured as of the acquisition date, over the initial investment is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the interest method of accretion. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected is referred to as the non-accretable difference and is not accreted over time. The Company estimates expected cash flows to be collected over the life of individual credit impaired loans on a quarterly basis. If the Company determines that discounted expected cash flows have decreased, the credit impaired loans would be considered further impaired, which would result in a provision for loan loss and a corresponding increase in valuation allowance included in the allowance for loan losses. If discounted expected cash flows have increased, or improved, in subsequent evaluations, the increase in cash flows is first used to reverse the amount of any related allowance for loan losses before the yield is adjusted. Additionally the Company will increase the accretable yield to account for the significant increase in expected cash flows. The estimate of the amount and timing of cash flows for our credit impaired loans is based on historical information available and expected future performance of the loans, and may include the timing of expected future cash flows, prepayment speed, default rates, loss severities, delinquency rates, percentage of non-performing loans, extent of credit support available, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios, geographic concentrations, as well as reports by credit rating agencies, such as Moody’s, Standard & Poor’s Corporation (“S&P”), or Fitch, general market assessments and dialogue with market participants. As a result, substantial judgment is used in the analysis to determine the expected cash flows. The determination of whether an allowance for loan loss is necessary if there is a decrease in cash flows based on consideration of factual information available at the time of assessment as well as management’s estimates of the future performance and projected amount and timing of cash flows expected to be collected on the loan. Allowance for loan losses The allowance for loan losses is intended to provide for credit losses inherent in the loans, held-for-investment portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value ratio and economic conditions. The allowance for loan losses is increased through provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. For non-credit impaired loans, we determine the allowance for loan losses by measuring credit impairment on (1) an individual basis for non-accrual status loans, and (2) on a collective basis for all other loans since they have similar risk characteristics. The allowance of loan losses on an individual basis is assessed when a loan is on non-accrual and the recoverability of the loan is less than its carrying value. The Company considers the loans to be collateral dependent and relies on the current fair value of the collateral as the basis for determining impairment. Loans that are not assessed individually for impairment are assessed on a collective basis. For the acquired loans we performed a historical analysis on both cumulative defaults and severity upon default for all loans that were current as of November 4, 2013 when the Company was formed or acquired thereafter. We calculated the cumulative default and loss severity on the acquired loans with delinquency statuses of 90+ days and applied those factors to the current acquired loan population. For the originated loans, our historical data does not show any defaults, therefore we used a Moody’s analysis performed on the latest ReadyCap securitization to determine the likelihood of default and to determine loss severity we stressed collateral value to the current principal balance based on the total valuation decline of SBC properties from the peak valuation in 2007 through their post-crises low in 2010. For credit impaired loans, the allowance for loan losses is described in the credit impaired loan discussion above. While we have a formal methodology to determine the adequate and appropriate level of the allowance for loan losses, estimates of inherent loan losses involve judgment and assumptions as to various factors, including current economic conditions. Our determination of adequacy of the allowance for loan losses is based on quarterly evaluations of the above factors. Accordingly, the provision for loan losses will vary from period to period based on management's ongoing assessment of the adequacy of the allowance for loan losses. Non-accrual loans Non-accrual loans are the loans for which we are not accruing or accreting interest income. Non-accrual loans include non-credit impaired loans when principal or interest has been delinquent for 90 days or when it is determined that full collection of contractual cash flows is not probable. Additionally, credit impaired loans for which the Company is unable to reasonably estimate the timing and amount of expected cash flows are considered to be non-accrual loans. Income on credit impaired loans is recognized as described above under— Loans, held-for-investment—Credit Impaired Loans . Troubled Debt Restructurings In situations where, for economic or legal reasons related to the borrower’s financial difficulties, we grant concessions for a period of time to the borrower that we would not otherwise consider, the related loans are classified as a troubled debt restructuring (“TDR”). These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize our economic loss and to avoid foreclosure or repossession of collateral. For modifications where we forgive principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs, are considered impaired loans. Other than resolutions such as foreclosures, sales and transfers to loans at fair value, we may remove loans held-for-investment from TDR classification, but only if they have been refinanced or restructured at market terms and qualify as a new loan. Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected. Impaired loans The Company considers a loan to be impaired when the Company does not expect to collect all the contractual interest and principal payments as scheduled in the loan agreements. Mortgage backed securities, at fair value The Company accounts for MBS as trading securities and are carried at fair value under ASC 320, Investments-Debt and Equity Securities. Our MBS portfolio is comprised of asset-backed securities collateralized by interest in or obligations backed by pools of SBC loans. Purchases and sales of MBS are recorded on the trade date. Our MBS securities pledged as collateral against borrowings under repurchase agreements are included in mortgage backed securities, at fair value on our consolidated balance sheets. MBS are recorded at fair value as determined by market prices provided by independent broker dealers or other independent valuation service providers. The fair values assigned to these investments are based upon available information and may not reflect amounts that may be realized. We generally intend to hold our investment in MBS to generate interest income; however, we have and may continue to sell certain of our investment securities as part of the overall management of our assets and liabilities and operating our business. Loans eligible for repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company then records the right to repurchase the loan as an asset and liability in its consolidated balance sheets. Such amounts reflect the unpaid principal balance of the loans. Real estate acquired in settlement of loans Real estate acquired in settlement of loans is accounted for under ASC 360, Property, Plant and Equipment (“ASC 360”). The Company acquires substantially all its real estate through the foreclosure of mortgage loans that have become delinquent with limited other recourse. The Company’s intentions are to sell the real estate within a short holding period. Real estate is recorded at fair value at the time the Company receives title and is subsequently held at the lower of its carrying amount or fair value less closing costs. All legal fees and direct costs relating to real estate owned are expensed as incurred. Each investment in real estate property is tested for impairment on a quarterly basis. Derivative instruments, at fair value Subject to maintaining our qualification as a REIT for U.S. federal income tax purposes, we utilize derivative financial instruments, currently comprised of credit default swaps, interest rate swaps, and interest rate lock commitments as part of our risk management. The Company accounts for derivative instruments under ASC 815, Derivatives and Hedges . All derivatives are reported as either assets or liabilities on the consolidated balance sheets at estimated fair value. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability. The Company has not elected hedge accounting for these derivative instruments and, as a result, changes in the fair value for these derivatives are recorded in earnings. Although permitted under certain circumstances, the Company does not offset cash collateral receivable or payables against our gross derivative positions. As of December 31, 2016 and 2015, the cash collateral receivable held for derivative instruments is $1.7 million and $5.3 million, respectively, and is included in restricted cash on the consolidated balance sheets. Interest Rate Swap Agreements An interest rate swap is an agreement between two counterparties to exchange periodic interest payments where one party to the contract makes a fixed-rate payment in exchange for a floating-rate payment from the other party. The dollar amount each party pays is an agreed-upon periodic interest rate multiplied by some pre-determined dollar principal (notional amount). No principal (notional amount) is exchanged between the two parties at trade initiation date. Only interest payments are exchanged. Interest rate swaps are classified as Level 2 in the fair value hierarchy. The fair value adjustments, along with the related interest income or interest expense, are reported as net gain/loss on financial instruments. Interest Rate Lock Commitments (“IRLCs”) IRLCs are agreements under which the Company agrees to extend credit to a borrower under certain specified terms and conditions in which the interest rate and the maximum amount of the loan are set prior to funding. Unrealized gains and losses on the IRLCs, reflected as derivative assets and derivative liabilities, respectively, are measured based on the value of the underlying mortgage loan, quoted government-sponsored enterprise (“GSE”, such as Fannie Mae, Freddie Mac, or Ginnie Mae) or MBS prices, estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The unrealized gains or losses are reported on the consolidated statements of income as net unrealized gain/(loss) on financial instruments. IRLCs are classified as Level 3 in the fair value hierarchy. Credit Default Swaps (“CDS”) CDS are contracts between two parties, a protection buyer who makes fixed periodic payments, and a protection seller, who collects the premium in exchange for making the protection buyer whole in the case of default. They are similar to buying or selling insurance contracts on a borrower’s debt, without being regulated by insurance regulators. The fair value adjustments, along with the related interest income or interest expense, are reported as gain/(loss) on financial instruments. Credit default swaps are classified as Level 2 in the fair value hierarchy. Servicing rights and Residential mortgage servicing rights, at fair value Servicing rights represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the servicing right asset against contractual servicing and ancillary fee income. Mortgage servicing rights are recognized upon sale or securitization of mortgage loans if servicing is retained. Creation of mortgage servicing rights retained upon sale of a loan is included in net realized gain on the consolidated statements of income. The Company treats its servicing rights and residential mortgage servicing rights as two separate classes of servicing assets based on the class of the underlying mortgages and it treats these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s servicing of SBA 7A commercial mortgage loans are accounted for under ASC 860, Transfers and Servicing, while the Company’s residential mortgage servicing rights are accounted for under the fair value option under ASC 825, Financial Instruments. Servicing rights – SBA and Freddie Mac Commercial loan servicing rights are accounted for under ASC 860, Transfers and Servicing . Servicing rights are initially recorded at fair value and subsequently carried at amortized cost. We capitalize the value expected to be realized from performing specified servicing activities for others. Such value reflects the estimated fair value of the expected net cash flows associated with the servicing of the loan. These capitalized servicing rights are purchased or retained upon sale or securitization of mortgage loans. Servicing rights are amortized in proportion to and over the period of estimated servicing income, and is tested for potential impairment quarterly. For purposes of testing our servicing rights for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows of the intangibles is determined using discounted cash flow modeling techniques, which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We leverage all available relevant market data to determine the fair value of our recognized servicing assets. Since quoted market prices for servicing rights are not readily available, we estimate the fair value of servicing rights by determining the present value of future expected servicing cash flows using modeling techniques that incorporate management's best estimates of key variables including expected cash flows, prepayment speeds, and return requirements commensurate with the risks involved. Cash flow assumptions are modeled using our internally forecasted revenue and expenses, and where possible, the reasonableness of assumptions is periodically validated through comparisons to market data. Prepayment speed estimates are determined from historical prepayment rates or obtained from third-party industry data. Return requirement assumptions are determined using data obtained from market participants, where available, or based on current relevant interest rates plus a risk-adjusted spread. We also consider other factors that can impact the value of the servicing rights, such as surety provider termination clauses and servicer terminations that could result if we failed to materially comply with the covenants or conditions of our servicing agreements and did not remedy the failure. Since many factors can affect the estimate of the fair value of servicing rights, we regularly evaluate the major assumptions and modeling techniques used in our estimate and review these assumptions against market comparables, if available. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates. Residential mortgage servicing rights, at fair value The Company’s residential mortgage servicing rights consist of conforming conventional residential 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. As permitted by U.S. GAAP, the Company has elected to account for its acquired portfolio of mortgage servicing rights at fair value. For these assets, the Company uses a third-party vendor to assist management in estimating the fair value. The third-party vendor uses a discounted cash flow approach which consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key assumptions used in the estimation of the fair value of MSRs include prepayment speeds, discount rates, default rates, cost to service, contractual servicing fees, escrow earnings and ancillary income. MSRs are classified as Level 3 in the fair value hierarchy. Intangible assets Intangible assets are accounted for under ASC 350, Intangibles-Goodwill and Other . As of December 31, 2016, the Company’s identifiable intangible assets include SBA license for our Lending operations as well as a trade name, customer relationships, a favorable lease, and other licenses, obtained as part of the ZAIS Financial merger transaction. As of December 31, 2015, the Company’s identifiable intangible assets include one U.S. SBA license for our Lending operations. The Company determined that its SBA license has an indefinite life, while the other intangibles acquired as part of the ZAIS Financial merger transaction are finite-lived. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives. The Company initially records its intangible assets at cost and subsequently tests for impairment on a quarterly basis. Intangible assets are included within other assets on the consolidated balance sheets. Deferred financing costs Costs incurred in connection with our borrowings under credit facilities are accounted for under ASC 340, Other Assets and Deferred Costs . Deferred costs are capitalized and amortized using the effective interest method over the respective financing term with such amortization reflected on our consolidated statements of income as a component of interest expense. Our deferred financing costs may include legal, accounting and other related fees. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Unamortized deferred financing costs related to securitizations are presented on the consolidated balance sheets as a direct deduction from the associated debt liability, or securitized debt obligations. Due from Servicers The loan-servicing activities of the Company’s SBC Loan Acquisitions and SBC Conventional Originations reportable segments are performed primarily by third-party servicers. SBA loans originated by and held at ReadyCap Lending are internally serviced. Residential mortgage loans originated by and held at GMFS are internally serviced. As of December 31, 2016 and 2015, the Company’s servicers hold substantially all of the cash owned by the Company related to loan servicing activities. These amounts include principal and interest payments made by borrowers, net of advances and servicing fees. Cash is generally received within thirty days of recording the receivable. As of December 31, 2016 and 2015, the due from servicers balance in the amount of $54.7 million and $20.3 million, respectively, represent funds received by loan servicers from loan activities that have not yet been paid to the Company. As of December 31, 2016 and 2015, $27.7 million and $6.1 million of these balances are included within the assets of consolidated VIEs on the consolidated balance sheets. The Company is subject to credit risk to the extent any servicer with whom the Company conducts business is unable to deliver cash balances or process loan-related transactions on the Company’s behalf. The Company monitors the financial condition of the servicers with whom the Company conducts business and believes the likelihood of loss under the aforementioned circumstances is remote. Borrowings under credit facilities The Company accounts for borrowings under credit facilities under ASC 470, Debt. The Company partially finances its loans, held-for-investment, and loans, held for sale, at fair value through credit agreements with various counterparties. These borrowings are collateralized by loans, held-for-investment, and loans, held for sale, at fair value and have maturity dates within two years from the consolidated balance sheet date. If the fair value (as determined by the applicable counterparty) of the collateral securing these borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue collection of any outstanding debt amount from us. Interest paid and accrued in connection with credit facilities is recorded as interest expense on the consolidated statements of income. Promissory note payable The Company accounts for promissory notes payable under ASC 470, Debt. Pursuant to the adoption of ASU 2015-03, the Company’s promissory note payable is presented net of debt issuance costs. The Company partially finances its loans, held-for-investment through promissory notes with various counterparties. These notes are collateralized by loans, held-for-investment and have maturity dates within five years from the consolidated balance sheet date. Interest paid and accrued in connection with promissory notes is recorded as interest expense on the consolidated statements of income. Securitized debt obligations of consolidated VIEs Since 2011, we have engaged in eight securitization transactions, which the Company accounts for under ASC 810. The Company is required to consolidate, as a VIE, the special purpose entity (“SPE”)/trust that was created to facilitate the transaction and to which the underlying loans in connection with the securitization were transferred. The consolidation of the SPE includes the issuance of senior securities to third parties, which are shown as securitized debt obligations of consolidated VIEs on the consolidated balance sheets. Debt issuance costs related to securitizations are presented as a direct deduction from the carrying value of the related debt liability. These costs are amortized using the effective interest method. Amortization of debt issuance costs is amortized using the effective interest method and is included in interest expense from securitized debt obligations on the financial statements. Borrowing under repurchase agreements Borrowings under repurchase agreements are accounted for under ASC 860, Transfers and Servicing . Investment securities financed under repurchase agreements are treated as collateralized borrowings, unless they meet sale treatment or are deemed to be linked transactions. Through December 31, 2016, none of our repurchase agreements have been accounted for as components of linked transactions. All securities financed through a repurchase agreement have remained on our consolidate

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	12 Months Ended
	Dec. 31, 2016
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Note 4 – Recently Issued Accounting Pronouncements In April 2014, the FASB issued guidance updating the criteria for reporting the disposal of a component of an entity as a discontinued operation. This guidance was effective for reporting periods beginning on or after December 15, 2014 with early adoption permitted only for disposals that have not been reported in financial statements previously issued or available for issuance. We have adopted the guidance beginning with the year beginning January 1, 2015. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue and also requires additional disclosures. ASU 2014-09, as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20, is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is evaluating the impact this ASU will have on our consolidated financial statements. Although we have not completed our assessment, we do not anticipate that the adoption of ASU 2014-09 will have a material impact on our consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We currently have no share-based payments, and accordingly, the adoption of ASU 2014-12 did not have a material impact on our consolidated financial statements for the periods reported. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. The adoption of this standard did not have an impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-13, Consolidation (Topic 810) — Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (CFE) (“ASU 2014-13”). ASU No. 2014-13 provides an alternative to reflect changes in the fair value of the financial assets and the financial liabilities of the CFE by measuring either the fair value of the assets or liabilities, whichever is more observable. ASU No. 2014-13 provides additional disclosure requirements for those electing this approach, and is effective for interim and annual periods beginning after December 15, 2015. The Company has adopted ASU 2014-13 beginning with the year beginning January 1, 2016 and applied retrospectively for prior periods presented. The adoption of this standard did not have a material impact on our consolidated financial statements. In February 2015 the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). The amendments affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments using a modified retrospective approach, or retrospectively. The Company has adopted ASU 2015-02 beginning with the year beginning January 1, 2016 and applied retrospectively for prior periods presented. The adoption of this standard did not have an impact on our consolidated financial statements. In April 2015 the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”) , which requires that debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability, rather than deferring the charges as an asset. This aligns the presentation of debt issuance costs and debt discounts in the balance sheet. ASU No. 2015-03 is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and will be applied retrospectively to each prior period presented. Early adoption is permitted. The Company has adopted ASU 2015-03 and applied its provisions retrospectively. The adoption of this standard did not have a material impact on our consolidated financial statements. In September 2015, FASB issued ASU no. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”). The amendments in this update require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the account had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company has adopted ASU 2015-16 beginning with the year beginning January 1, 2016 and applied its provisions retrospectively. The adoption of this standard did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 , Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that existing GAAP currently requires. The “expected loss” model requires the consideration of possible credit losses over the life of an instrument compared to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology. ASU 2016-13 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early adoption is permitted for periods beginning after December 15, 2018. The Company is evaluating the impact ASU 2016-13 will have on the Company's consolidated financial statements. 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”). ASU 2016-15 provides guidance on the disclosure and classification of certain items within the statement of cash flows, including beneficial interests obtained in a securitization of financial assets, debt prepayment or extinguishment costs, and distributions received from equity-method investees. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and is required to be applied retrospectively to all periods presented beginning in the year of adoption. Early adoption is permitted. The Company is evaluating the impact ASU 2016-15 will have on the Company’s statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory (“ASC 2016-16”), which requires that an entity recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of the transfer instead of deferring the tax consequences until the asset has been sold to an outside party, as current GAAP requires. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. The Company is evaluating the impact ASU 2016-16 will have on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810) – Interests Held through Related Parties That Are under Common Control (“ASU 2016-17”). ASU 2016-17 requires, when assessing which party is the primary beneficiary in a VIE, that the decision maker considers interests held by entities under common control on a proportionate basis instead of treating those interests as if they were that of the decision maker itself, as current GAAP requires. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2016. Early application is permitted in any interim or annual period. The Company is evaluating the impact ASU 2016-17 will have on the Company's consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The ASU should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the potential effects of adoption of ASU 2016-18 on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”), which amends the definition of a business to exclude acquisitions of groups of assets where substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. This ASU results in most real estate acquisitions no longer being considered business combinations and instead being accounted for as asset acquisitions. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017 and is applied prospectively. Early application is permitted. The Company is evaluating the impact ASU 2017-01 will have on the Company's consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the De-recognition of Nonfinancial Assets (Topic 610-20) (“ASU 2017-05”). ASU 2017-05 requires that all entities account for the de-recognition of a business in accordance with ASC 810, including instances in which the business is considered in substance real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted. The Company is evaluating the impact ASU 2017-05 will have on the Company's consolidated financial statements.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2016
Business Combinations
Business Combinations	Note 5 – Business Combinations On October 31, 2016, Sutherland merged with and into a subsidiary of ZAIS Financial Corp. (“ZAIS”), with ZAIS legally surviving the merger and changing its name to Sutherland Asset Management Corporation (the “Combined Company”). Per the terms of the Agreement and Plan of Merger (“Merger Agreement”), dated as of April 6, 2016, as amended as of May 9, 2016 and August 4, 2016, (i) Sutherland merged with and into ZAIS Merger Sub, LLC, with ZAIS Merger Sub, LLC surviving the merger transaction and continuing as a wholly-owned subsidiary of ZAIS and (ii) Sutherland Partners, L.P. merged with and into ZAIS Financial Partners, L.P., with ZAIS Financial Partners, L.P. legally surviving the merger transaction, continuing as a wholly-owned subsidiary of ZAIS, and changing its name to Sutherland Partners, L.P. ZAIS was re-named Sutherland Asset Management Corporation as part of the merger transaction (as a whole, the “Merger Transaction” or “merger”). Prior to and as a condition to the merger, ZAIS Financial disposed of its seasoned re-performing mortgage loan portfolio, such that upon the completion of the merger, ZAIS Financial’s assets largely consisted of its GMFS origination subsidiary, cash, conduit loans and residential mortgage backed securities (“RMBS”). Additionally, prior to the closing, ZAIS Financial completed a tender offer, purchasing 4,185,478 shares of common stock from existing ZAIS Financial stockholders at a purchase price of $15.37 per share. In connection with the merger, 25,870,420 shares of common stock were issued to our pre-merger common stockholders, and 2,288,663 units in the operating partnership subsidiary (“OP units”) were issued to our pre-merger OP unit holders. Our pre-merger stockholders held approximately 86% of our stockholders’ equity as a result of the merger, with continuing ZAIS Financial stockholders holding approximately 14% of our stockholders’ equity, on a fully diluted basis. Under the terms of the Merger Agreement, in connection with the Merger Transaction, each outstanding share of the Company and each outstanding unit of Sutherland Partners, L.P. was converted into the right to receive 0.8356 (the “Exchange Ratio”) shares of common stock in ZAIS or units in ZAIS Financial Partners, L.P., respectively. The Exchange Ratio was determined by dividing the Company’s adjusted book value per share on July 31, 2016 (the “Determination Date”) by the ZAIS adjusted book on the Determination Date. Additionally, the Merger Agreement provided for a cash tender offer to existing ZAIS shareholders for cash proceeds up to $64.3 million. The tender offer was completed at a price of $15.37 equal to 95% of ZAIS’s adjusted book value per share, as further adjusted by ZFC’s pro-rata share of (i) an $8.0 million payment to ZAIS REIT Management, LLC relating to the termination of ZFC’s existing advisory agreement, and (ii) approximately $4.0 million related to intangible assets. The tender offer resulted in the tender of 4,185,478 shares of ZAIS common stock. The primary purpose of the merger was to increase the Combined Company’s scale, with a stockholders’ equity base in excess of $550 million, which is expected to enhance operational efficiencies, substantially increase the liquidity in the combined company common stock and meaningfully reduce operating costs. Sutherland management believes that stockholders of the combined company will benefit from lower base management fees and that the incentive distribution fee structure will further align stakeholder interests. The following table summarizes the fair value of assets acquired and liabilities assumed from the merger: (In Thousands) October 31, 2016 Assets: Cash and cash equivalents $ Short term investments Restricted cash Loans, held-for-investment, at cost Loans, held for sale, at fair value Mortgage backed securities, at fair value Loans eligible for repurchase from GNMA Residential mortgage servicing rights, at fair value Derivative assets, at fair value Other assets Identifiable Intangibles Total assets Liabilities: Borrowings under credit facilities Borrowings under repurchase agreements Exchangeable senior notes Contingent consideration Accounts payable and other liabilities Liability for loans eligible for repurchase from GNMA Total liabilities Fair Value of Net Assets Acquired $ The Company determined that the most identifiable value for consideration transferred was the share price of ZAIS common shares as of the market close of October 31, 2016. To determine the total consideration transferred, the Company multiplied the total remaining ZAIS common shares and ZAIS Partners, L.P. OP units, after the completion of the tender offer, times the closing price. The aggregate consideration transferred, net assets acquired, and related bargain purchase gain was as follows (in thousands, except share and per share amounts): ZAIS closing share price on October 31, 2016 $ ZAIS Common shares and OP units acquired Fair value of consideration transferred $ Fair Value of Net Asset Acquired $ Bargain purchase gain $ Based on the calculation, the Company has determined the transaction resulted in a bargain purchase gain. The Company’s Valuation Committee reviewed the results of the identified net assets acquired, liabilities assumed, and the calculation and conclusion of consideration transferred and determined that it was appropriate to recognize a bargain purchase gain of $15.2 million. This bargain purchase gain is reflected separately within the consolidated statements of income under gain on bargain purchase. Acquisition-related costs directly attributable to the Sutherland Merger, including legal, accounting, valuation, and other professional or consulting fees, among other general and administrative expenses, totaling $4.2 million for the twelve months ended December 31, 2016 were expensed as incurred and are reflected within professional fees and operating expenses within the consolidated statements of income. The following table summarizes income and earnings from the net assets acquired as part of the reverse merger with ZFC. These net assets include those of GMFS and are for two months of activity following the reverse merger. This activity is included in the Consolidated Statements of Income: For the year ended (In Thousands) December 31, 2016 Interest income $ Interest expense Other income (expense) Realized gain (loss) Unrealized gain (loss) Net income $ The following pro-forma income and earnings (unaudited) of the Combined Company are presented as if the merger had occurred on January 1, 2015: For the year ended December 31, (In Thousands) 2016 2015 Selected Financial Data Interest income $ $ Interest expense $ $ Provision for loan losses $ $ Other income (expense) $ $ Realized gain (loss) $ $ Unrealized gain (loss) $ $ Net income from continuing operations before income taxes $ $ Non-recurring pro forma transaction costs directly attributable to the merger were $4.6 million for the year ended December 31, 2016 and have been deducted from the other income (expense) amount above. The Company excluded the bargain purchase gain of $15.2 million from the other income (expense) amount above.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Fair Value Measurements	Note 6 – Fair Value Measurements The Company adopted the provisions of ASC 820 Fair Value Measurement , which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 established a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment, the characteristics specific to the investment, and the state of the marketplace (including the existence and transparency of transactions between market participants). Investments with readily available, actively quoted prices or for which fair value can be measured from actively quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Investments measured and reported at fair value are classified and disclosed into one of the following categories based on the inputs as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access. Level 2 — Pricing inputs are other than quoted prices in active markets, including, but not limited to, quoted prices for similar assets and liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. Level 3 — Significant unobservable inputs are based on the best information available in the circumstances, to the extent observable inputs are not available, including the Company’s own assumptions used in determining the fair value of investments. Fair value for these investments are determined using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant management judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The Company has elected the fair value option for $263.4 million and $155.1 million of mortgage loans as of December 31, 2016 and 2015, respectively. We have also elected the fair value option for $61.4 million of residential mortgage servicing rights acquired as well as $14.5 million of contingent consideration assumed as part of the ZAIS Financial merger as of December 31, 2016. The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2016: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ $ — $ — $ Short term investments — — Loans, held for sale, at fair value — Loans, held at fair value — — Mortgage backed securities, at fair value — — Derivative instruments, at fair value — Residential mortgage servicing rights, at fair value — — Total assets $ $ $ $ Liabilities: Derivative instruments, at fair value $ — $ $ — $ Contingent consideration — — Total liabilities $ — $ $ $ The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2015: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ $ — $ — $ Short term investments — — Loans, held at fair value — — Mortgage backed securities, at fair value — — Derivative instruments, at fair value — — Total assets $ $ $ $ Liabilities: Derivative instruments, at fair value $ — $ $ — $ Total liabilities $ — $ $ — $ The following table presents a summary of changes in the fair value of loans, held at fair value classified as Level 3: Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ $ Realized gains, net Unrealized gains, net Originations Sales Principal payments Transfer to loans, held for sale, at fair value — Transfer to loans, held-for-investment Ending Balance $ $ For loans, held at fair value, held as of December 31, 2016 and 2015, the total change in unrealized gain excluding liquidations for the period is $1.3 million and $3.0 million, respectively. For the years ended, December 31, 2016 and 2015, the gross unrealized gains of loans, held at fair value is $4.1 million and $9.3 million, respectively. The following table presents a summary of changes in the fair value of loans, held for sale, at fair value classified as Level 3: Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ — $ — Realized gains, net — Originations — Creation of mortgage servicing rights included in realized gains, net — Sales — Transfer from loans, held at fair value — Ending Balance $ $ — For loans, held at fair value and loans held for sale, at fair value, held as of December 31, 2016, the total change in unrealized gain excluding liquidations for the period is $3.2 million. For the year ended December 31, 2016, the gross unrealized losses of loans held for sale, held at fair value is $3.2 million. There were no loans held for sale, at fair value as of December 31, 2015. The following table presents a summary of changes in the fair value of MBS, at fair value classified as Level 3: Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ $ Accreted discount (amortized premium), net Realized losses, net Unrealized gains, net Purchases Acquired in connection with reverse merger — Sales / Principal Payments Ending Balance $ $ For MBS at fair value, held as of December 31, 2016, there was no total change in unrealized gain excluding liquidations for the period. As of December 31, 2015, the total change in unrealized loss excluding liquidations for the period is $4.5 million. For the years ended, December 31, 2016 and 2015, the gross unrealized gains/(losses) of MBS at fair value is $3.6 million and ($4.5 million), respectively. The following table presents a summary of changes in the fair value of residential mortgage servicing rights, at fair value classified as Level 3: (In Thousands) Year Ended Beginning Balance $ — Acquired in connection with reverse merger Mortgage servicing rights resulting from mortgage loan sales Unrealized gains Ending Balance $ For residential mortgage servicing rights, at fair value held at December 31, 2016, the total change in unrealized gain for the period is $6.9 million. The following table presents a summary of changes in the fair value of derivatives instruments, at fair value classified as Level 3, or interest rate lock commitments: Year Ended (In Thousands) Interest Rate Lock Commitments Beginning Balance $ — Acquired in connection with reverse merger Unrealized losses Ending Balance $ The amount of total losses for the year included in earnings attributable to the change in unrealized gains or losses relating to derivative assets or liabilities still held at December 31, 2016 is ($0.8 million). The following table presents a summary of changes in the fair value of contingent consideration classified as Level 3: Year Ended (In Thousands) 2016 Beginning Balance $ — Acquired in connection with reverse merger Amortization Ending Balance $ The Company’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer. Transfers between Level 2 and Level 3 generally relate to whether there were changes in the significant relevant observable and unobservable inputs that are available for the fair value measurements of such financial instruments. There were no transfers to or from Level 3 for the consolidated balance sheet periods presented except for the transfers identified above. Valuation Process for Fair Value Measurements The Company establishes valuation processes and procedures designed so that fair value measurements are appropriate and reliable, that they are based on observable inputs where possible, and that valuation approaches are consistently applied and the assumptions and inputs are reasonable. The Company has also established processes to provide that the valuation methodologies, techniques and approaches for investments that are categorized within Level 3 of the fair value hierarchy are fair, consistent and verifiable. The Company’s processes provide a framework that ensures the oversight of the Company’s fair value methodologies, techniques, validation procedures, and results. The Company designates a valuation committee (the “Committee”) to oversee the entire valuation process of the Company’s Level 3 investments. The Committee is comprised of various personnel who are responsible for developing the Company’s written valuation policies, processes and procedures, conducting periodic reviews of the valuation policies, and performing validation procedures on the overall fairness and consistent application of the valuation policies and processes and that the assumptions and inputs used in valuation are reasonable. The validation procedures overseen by the Committee are also intended to provide that the values received from external third-party pricing sources are consistent with the Company’s Valuation Policy and are carried at fair value. To the extent that there are no exchange pricing, vendor marks or broker quotes readily available, the Company may use an internal valuation model or other valuation methodology that may be based on unobservable market inputs to fair value the investment. The values provided by a third-party pricing service are calculated based on key inputs provided by the Company including collateral values, unpaid principal balances, cash flow velocity, contractual status and anticipated disposition timelines. In addition, the Company performs an internal valuation used to assess and review the reasonableness and validity of the fair values provided by a third party. The Company also performs analytical procedures, which include automated checks consisting of prior-period variance analysis, comparisons of actual prices to internally calculate expected prices based on observable market changes, analysis of changes in pricing ranges, and relative value and yield comparisons using the Company’s proprietary valuation models. Upon completion of the review process described above, the Company may provide additional quantitative and qualitative data to the third-party pricing service to consider in valuing certain financial assets and liabilities, as applicable. Such data may include deal specific information not included in the data tape provided to the third party, outliers when compared to the unpaid principal balance and collateral value and knowledge of any impending liquidation of an investment. If deemed necessary by the third party and management, the investments are re-valued by the third party to account for the updated information. The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2016 using third party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ Single External Source Discounted Cash Flow $ 98.47 – 105.00 $ Loans, held for sale, at fair value Single External Source Discounted Cash Flow 100.04– 102.97 Mortgage backed securities, at fair value Broker Quotes Third Party Mark 73.00 – 101.00 Mortgage backed securities, at fair value Transaction Price Transaction Price 99.00 – 99.00 Residential mortgage servicing rights, at fair value Single external source Discounted cash flow N/A N/A Contingent consideration Single external source Option pricing model N/A N/A (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2015 using third-party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ Single External Source Discounted Cash Flow $ 98.09 – 105.00 $ Mortgage backed securities, at fair value Broker Quotes Third Party Mark 22.55 – 102.50 Mortgage backed securities, at fair value Transaction Price Transaction Price 100.00 – 100.00 (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class 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. Financial instruments not carried at fair value The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the consolidated balance sheets and are classified as Level 3: December 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Loans, held-for-investment $ $ $ $ Servicing rights Other assets Total assets $ $ $ $ Liabilities: Borrowings under credit facilities $ $ $ $ Promissory note payable — — Securitized debt obligations of consolidated VIEs Guaranteed loan financing Liabilities under participation agreements Borrowings under repurchase agreements Accounts payable and other accrued liabilities Total liabilities $ $ $ $ (a) Other assets not carried at fair value and are classified as Level 3 include Due from servicers, Accrued interest, Deferred financing costs and Receivable from third parties, which are included in Note 21. (b) Accounts payable and other accrued liabilities not carried at fair value and are classified as Level 3 include Payable to related parties which are included in Note 21. The following table summarizes the valuation techniques used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy, but not held at fair value as of December 31, 2016: Predominant Weighted Valuation Average (In Thousands) Fair Value Technique Type Price Range (a) Price (b) Assets Loans, held-for-investment $ Single external source Discounted cash flow $ 40.72 – 137.12 $ SBA 7A loan servicing rights Single external source Discounted cash flow N/A N/A Liabilities Borrowings under credit facilities Transaction price N/A N/A N/A Securitized debt obligations, of consolidated VIEs Broker quote Average broker quote 68.92 – 103.21 Guaranteed loan financing Single external source Discounted cash flow 96.49 – 110.88 Liabilities under participation agreements Single external source Discounted cash flow 27.02 – 140.54 Borrowings under repurchase agreements Transaction price N/A N/A N/A (a) Price ranges shown are two standard deviations from the mean value, or represents about 95% of the price data points, therefore excludes outliers (b) Prices are weighted based on the fair value of the investments and liabilities included in the range for each class The following table summarizes the valuation techniques used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy, but not held at fair value as of December 31, 2015: Predominant Weighted Valuation Average (In Thousands) Fair Value Technique Type Price Range (a) Price (b) Assets Loans, held-for-investment $ Single external source Discounted cash flow $ 33.18 – 139.30 $ SBA 7A loan servicing rights Single external source Discounted cash flow N/A N/A Liabilities Borrowings under credit facilities Transaction price N/A N/A N/A Securitized debt obligations, of consolidated VIEs Broker quote Average broker quote 81.04 – 102.00 Guaranteed loan financing Single external source Discounted cash flow 96.20 – 111.31 Liabilities under participation agreements Single external source Discounted cash flow 20.10 – 136.30 Borrowings under repurchase agreements Transaction price N/A N/A N/A (a) Price ranges shown are two standard deviations from the mean value, or represents about 95% of the price data points, therefore excludes outliers (b) Prices are weighted based on the fair value of the investments and liabilities included in the range for each class The table above does not include real estate acquired in settlement of loans for which the Company has recorded a valuation allowance of $6.9 million and $2.6 million at December 31, 2016 and 2015, respectively. These assets have been marked to third-party broker price opinions less an estimate of costs to sell.

Loans

Loans	12 Months Ended
	Dec. 31, 2016
Loans
Loans	Note 7 – Loans The Company acquires loans and SBA loans from third parties as well as originates loans through ReadyCap. In 2016, the Company originated $936.7 million in unpaid principal balance and acquired $286.3 million in unpaid principal balance. In 2015, the Company originated $452.3 million in unpaid principal balance and acquired $181.0 million in unpaid principal balance. The following table summarizes the classification and unpaid principal balance of loans at the Company’s reporting segments including loans of consolidated VIEs. SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2016 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ $ Held for sale, at fair value — Held at fair value — — Total loans $ $ $ $ 127,425 $ SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2015 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ — $ Held at fair value — — Total loans $ $ $ $ — $ The following tables summarize the classification and carrying value of loans at the Company’s reporting segments including loans of consolidated VIEs. SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2016 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ $ Held for sale, at fair value — Held at fair value — — Total loans $ $ $ $ $ SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2015 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ — $ Held at fair value — — Total loans $ $ $ $ — $ Loan characteristics The following table displays the geographic concentration of the Company’s loans, held-for-investment secured by real estate recorded on our consolidated balance sheets. Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Texas % % California % % Florida % % New York % % Georgia % % Arizona % % North Carolina % % Virginia % % New Jersey % % Pennsylvania % % Other % % Total % % The following table displays the geographic concentration of the Company’s loans, held at fair value secured by real estate recorded on our consolidated balance sheets. Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 California % % Florida % % Ohio % % Illinois % % Georgia % % Texas % % New York % % Pennsylvania % % Michigan % % Other — % % Total % % The following table displays the geographic concentration of the Company’s loans, held for sale, at fair value secured by real estate recorded on our consolidated balance sheets. Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Louisiana % — % California % — Texas % — Alabama % — Florida % — Kentucky % — Colorado % — Georgia % — North Carolina % — Arkansas % — Other % — Total % — % The following table displays the collateral type concentration of the Company’s loans, held-for-investment on our consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 SBA % % Retail % % Office % % Multi-family % % Industrial % % Mixed Use % % Lodging % % Other % % Total % % The following table displays the collateral type concentration of the Company’s SBA loans within loans, held-for-investment, on our consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Child Day Care Services % % Hotels Motels & Tourist Courts % % Office of Dentists % % Vets % % Eating Places % % Offices Of Physicians % % Grocery Stores % % Auto % % Accounting Auditing & Bookkeeping % % Gasoline Service Stations % % Other % % Total % % The following table displays the collateral type concentration of the Company’s loans, held at fair value on our consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Office % % Multi-family % % Retail % % Industrial % % Mixed use % % Total % % The following table displays the collateral type concentration of the Company’s loans, held for sale, at fair value on our consolidated balance sheets. l Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Single-family % — % Lodging % — Multi-family % — Total % — % The following table displays delinquency information on loans, held-for-investment as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate: 0 – 500k 0.00 – 24.00 % 10/15/08 – 09/01/46 $ $ $ 500k – 1mm 4.00 – 9.90 03/20/10 – 02/01/38 1mm – 1.5mm 4.50 – 11.00 02/01/17 – 02/05/33 — 1.5mm – 2mm 4.56 – 7.52 08/01/15 – 10/01/26 — 2mm – 2.5mm 4.91 – 7.52 02/01/17 – 04/01/38 — > 2.5mm 4.50 – 11.00 03/01/17 – 06/01/38 — Total fixed-rate $ $ $ Adjustable rate: 0 – 500k 0.00 – 9.75 % 04/27/04 – 09/21/42 $ $ $ 500k – 1mm 2.66 – 8.63 10/28/14 – 03/29/42 1mm – 1.5mm 3.50 – 8.21 04/08/19 – 10/10/41 1.5mm – 2mm 2.62 – 6.25 04/12/17 – 03/01/38 2mm – 2.5mm 3.85 – 6.35 10/19/26 – 08/17/38 — — > 2.5mm 2.14 – 8.32 10/20/09 – 11/18/38 — Total adjustable rate $ $ $ Total $ $ $ Less: General allowance for loan losses Total $ (a) In thousands net of specific allowance for loan losses The following table displays delinquency information on loans, held at fair value as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 6.60 – 6.60 % 06/01/18 – 06/01/18 $ $ — $ — 500k – 1mm 5.70 - 7.02 02/01/18 - 01/01/27 — — 1mm – 1.5mm 5.71 - 7.54 05/01/18 - 12/01/26 — — 1.5mm – 2mm 6.22 - 8.33 01/01/17 - 06/01/19 — — 2mm – 2.5mm 6.23 – 6.23 05/01/24 – 05/01/24 — — > 2.5mm 5.57 - 7.75 01/01/18 - 07/01/19 — — Total $ $ — $ — (a) In thousands The following table displays delinquency information on loans, held for sale, at fair value as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 2.63 – 5.50 % 01/01/27 – 01/01/47 $ $ $ 500k – 1mm 3.50 – 6.75 02/01/31 – 11/01/46 — 1mm – 1.5mm 3.56 – 5.13 01/01/24 – 04/01/46 — — 1.5mm – 2mm 3.62 – 3.62 01/01/37 – 01/01/37 — — 2mm – 2.5mm 4.14 – 4.14 01/01/27 – 01/01/27 — — > 2.5mm 3.68 – 4.58 01/01/27 – 01/01/37 — — Total $ $ $ (a) In thousands The following table displays delinquency information on loans, held-for-investment as of December 31, 2015: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate: 0 – 500k 0.00 – 24.00 % 10/15/08 – 02/01/39 $ $ $ 500k – 1mm 3.99 – 9.90 03/10/10 – 05/01/38 1mm – 1.5mm 3.99 – 9.78 11/01/16 – 04/28/35 — — 1.5mm – 2mm 3.99 – 10.25 08/01/15 – 11/01/37 — 2mm – 2.5mm 4.91 – 7.50 06/01/17 – 09/01/25 — — > 2.5mm 3.38 – 12.01 02/01/16 – 09/01/25 — — Total fixed-rate $ $ $ Adjustable rate: 0 – 500k 0.00 – 9.75 % 04/27/04 – 06/01/43 $ $ $ 500k – 1mm 2.66 – 8.75 10/28/14 – 12/30/40 1mm – 1.5mm 3.21 – 8.25 04/13/16 – 09/01/38 1.5mm – 2mm 2.62 – 6.00 01/02/11 – 03/01/38 — 2mm – 2.5mm 3.33 – 6.75 10/01/26 – 08/17/38 — — > 2.5mm 1.59 – 7.00 10/20/09 – 11/18/38 Total adjustable rate $ $ $ Total $ $ $ (a) In thousands net of specific allowance for loan losses The following table displays delinquency information on loans, held at fair value, as of December 31, 2015: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 6.60 – 6.60 % 06/01/18 – 06/01/18 $ $ — $ — 500k – 1mm 5.28 – 6.25 06/01/18 – 01/01/26 — — 1mm – 1.5mm 0.58 – 5.91 05/01/20 – 12/01/25 — — 1.5mm – 2mm 4.73 – 8.33 01/01/17 – 01/01/26 — — 2mm – 2.5mm 5.54 – 6.50 11/01/20 – 01/01/26 — — > 2.5mm 4.33 – 7.75 02/01/16 – 01/01/26 — — Total fixed-rate $ $ — $ — 1.5mm – 2mm 3.44 – 3.44 % 01/01/36 – 01/01/36 $ $ — $ — 2mm – 2.5mm 3.44 – 3.44 01/01/36 – 01/01/36 — — Total adjustable rate $ $ — $ — Total $ $ — $ — (a) In thousands There were no loans, held for sale, at fair value as of December 31, 2015. The Company monitors the credit quality of loans, held-for-investment on an ongoing basis. The Company considers the loan-to-value ratio of our loans to be a general indicator of credit performance. The Company monitors the loan-to-value ratio and associated risks on a monthly basis. The following table presents quantitative information on the credit quality of loans, held-for-investment as of the consolidated balance sheet dates: Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ $ 20.1 – 40.0% 40.1 – 60.0% 60.1 – 80.0% 80.1 – 100.0% Greater than 100.0% Total $ $ Less: General allowance for loan losses — Total $ $ (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value The following table presents quantitative information on the credit quality of loans, held at fair value as of the consolidated balance sheet dates: Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ — $ 20.1 – 40.0% 40.1 – 60.0% 60.1 – 80.0% 80.1 – 100.0% Greater that 100.0% — Total $ $ (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value The following table presents quantitative information on the credit quality of loans, held for sale, at fair value as of the consolidated balance sheet dates: Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ $ — 20.1 – 40.0% — 40.1 – 60.0% — 60.1 – 80.0% — 80.1 – 100.0% — Greater that 100.0% — Total $ $ — (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value As of December 31, 2016 and 2015, the Company’s total carrying amount of loans in the foreclosure process was $2.3 million and $4.2 million, respectively. Loans, held-for-investment inclusive of consolidated VIEs Loans, held-for-investment are accounted for under ASC 310-30 or ASC 310-10 depending on whether there is evidence of credit deterioration at the time of acquisition. The outstanding carry amount of the acquired loans broken down by ASC 310-30 and ASC 310-10 is as follows: (In Thousands) December 31, 2016 December 31, 2015 Loans, held-for-investment Non-credit impaired loans $ $ Credit impaired loans Total loans, held-for-investment $ $ The following table details the carrying value for loans, held-for-investment at the consolidated balance sheet dates. December 31, 2016 December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Unpaid principal balance $ $ $ $ Non-accretable discount — — Accretable discount Recorded investment Allowance for loan losses Carrying value $ $ $ $ In 2016, the Company acquired credit impaired loans with contractually required principal and interest payments receivable of $2.3 million; expected cash flows of $1.8 million; and a fair value (initial carrying amount) of $1.1 million. In 2015, the Company acquired credit impaired loans with contractually required principal and interest payments receivable of $28.7 million; expected cash flows of $24.7 million; and a fair value (initial carrying amount) of $17.5 million. The following table details the activity of the accretable yield of loans, held-for investment. For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Non-credit Impaired Non-credit Impaired Credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Loans Beginning accretable yield $ $ $ $ Purchases Sales Accretion Other Transfers Ending accretable yield $ $ $ $ The following table details the accrual and non-accrual state of loans, held-for-investment by carrying value. All loans held at fair value are accrual loans. December 31, 2016 December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Accrual Non-accrual — Less: General allowance for loan losses — — — Total $ $ $ $ The following table presents additional information on impaired loans, held-for-investment, or loans in which we do not expect to receive all principal and interest payments as scheduled in the loan agreements. Impaired loans include (i) non-credit impaired loans, or loans without evidence of credit deterioration at the time of purchase, that are subsequently placed on non-accrual status and (ii) credit impaired loans, or loans with evidence of credit deterioration since the time of purchase: Carrying value for Carrying value for Total Carrying Unpaid Principal Which There Is A Which There Is No value of Balance of Related Allowance Related Allowance Interest Income (In Thousands) Impaired Loans Impaired Loans for Loan Losses for Loan Losses Recognized December 31, 2016 Non-credit impaired loans $ $ $ $ $ Credit impaired loans — Total December 31, 2016 $ $ $ $ $ December 31, 2015 Non-credit impaired loans $ $ $ $ $ Credit impaired loans — Total December 31, 2015 $ $ $ $ $ As of December 31, 2016 and 2015, the Company’s average carrying amount of impaired loans was $155,260 and $129,264, respectively. The following table details the activity of the allowance for loan losses for loans, held-for investment: For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Beginning balance $ $ $ $ Provision for loan losses Chargeoffs Recoveries — — Ending balance $ $ $ $ For the year ended December 31, 2016 the Company had a general allowance for loan losses of $2.0 million assessed on a collective basis and is included in the allowance for loan losses above. The Company did not have a general allowance for loan losses assessed on a collective basis for the year ended December 31, 2015. Loans, held at fair value Loans, held at fair value were originated by ReadyCap. We elected the fair value option, in accordance with ASC 825 due to our intent to sell or securitize the loans in the near term. At December 31, 2016, there were 27 loans, with an aggregate outstanding principal balance of $79.1 million and an aggregate fair value of $81.6 million. At December 31, 2015 there were 51 loans, with an aggregate outstanding principal balance of $150.4 million and an aggregate fair value of $155.1 million. Loans, held for sale, at fair value Loans, held for sale, at fair value were originated by either ReadyCap or GMFS. We elected the fair value option, in accordance with ASC 825 due to our intent to sell these loans in the near term. At December 31, 2016, there were 714 loans, with an aggregate outstanding principal balance of $178.9 million and an aggregate fair value of $181.8 million. At December 31, 2015 there were no loans, held for sale, at fair value. Troubled Debt Restructurings If the borrower is determined to be in financial difficulty, then the Company will determine whether a financial concession has been granted to the borrower by analyzing the value of the assets as compared to the recorded investment, modifications of the interest rate as compared to market rates, modification of the stated maturity date, modification of the timing of principal and interest payments and the partial forgiveness of debt. Modified loans that are classified as TDRs are individually evaluated and measured for impairment. The following table summarizes the recorded investment of TDRs on the consolidated balance sheet dates. (In Thousands) December 31, 2016 December 31, 2015 Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ The following table summarizes the TDRs that occurred during the year ended December 31, 2016. Pre-Modification Post-Modification (In Thousands) Recorded Balance Recorded Balance Number of Loans Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ The following table summarizes the TDRs that occurred during the year ended December 31, 2015. Pre-Modification Post-Modification (In Thousands) Recorded Balance Recorded Balance Number of Loans Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ As of December 31, 2016 and December 31, 2015, the total allowance for loan losses related to TDR’s was $2.2 million and $2.1 million, respectively. The following table summarizes our TDR modifications in the year ended December 31, 2016 presented by primary modification type and includes the financial effects of these modifications. Interest Term Interest Rate Principal Income (In Thousands) Extension Reduction Reduction Foreclosure Total Recognized Troubled debt restructurings SBC $ $ $ — $ $ $ SBA Total troubled debt restructurings $ $ $ $ $ $ The following table summarizes our TDR modifications in the year ended December 31, 2015 presented by primary modification type and includes the financial effects of these modifications. Interest Term Interest Rate Principal Income (In Thousands) Extension Reduction Reduction Foreclosure Total Recognized Troubled debt restructurings SBC $ $ — $ $ — $ $ SBA — Total troubled debt restructurings $ $ $ $ — $ $ The table below summarizes the accrual status and UPB of TDRs as of December 31, 2016. (In Thousands) Accrual Non-Accrual Total Troubled debt restructurings SBC $ $ $ SBA Total troubled debt restructurings $ $ $ The table below summarizes the accrual status and UPB of TDRs as of December 31, 2015. (In Thousands) Accrual Non-Accrual Total Troubled debt restructurings SBC $ $ — $ SBA Total troubled debt restructurings $ $ $ The following tables summarize the December 31, 2016 carrying values of the TDRs that occurred during the years ended December 31, 2016 and 2015 that remained in default as of December 31, 2016. Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due. Year Ended December 31, 2016 Year Ended December 31, 2015 (In Thousands) Number of Loans Carrying Value Number of Loans Carrying Value Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ The Company does not believe the financial impact of the presented TDRs to be material. The other elements of the Company’s modification programs do not have a significant impact on financial results given their relative size, or do not have a direct financial impact as in the case of covenant changes.

Real Estate Acquired in Settlem

Real Estate Acquired in Settlement of Loans	12 Months Ended
	Dec. 31, 2016
Real Estate Acquired in Settlement of Loans
Real Estate Acquired in Settlement of Loans	Note 8 – Real Estate Acquired in Settlement of Loans The Company acquires real estate through the foreclosure of its loans and the occasional purchase of real estate. The Company’s real estate properties are held in the Company’s consolidated Taxable REIT Subsidiaries (“TRS”), SAMC REO 2013-01, LLC, and ReadyCap Lending, LLC, other asset specific TRSs, as well as the Company’s securitization transactions. The following tables summarize the carrying amount of the Company’s real estate holdings as of the consolidated balance sheet dates: December 31, 2016 SAMC REO SCML ReadyCap (In Thousands) 2013-01, LLC 2015-SBC4 (a) Lending, LLC Total Alabama $ — $ — $ $ California — — Connecticut — — Florida Georgia — — Illinois — — Indiana — — Kansas — — Minnesota — — Missouri — — New Hampshire — — New Jersey — — New York — — North Carolina — — South Carolina — — Tennessee — — Texas — — Total $ $ $ $ (a) Sutherland Commercial Mortgage Loans 2015-SBC4 is a grantor trust securitization completed by the Company in 2015 Other Taxable December 31, 2015 SAMC REO WVMT WVMT SCML ReadyCap REIT (In Thousands) 2013-01, LLC 2011-SBC1 (a) 2011 ‑ SBC3 (b) 2015-SBC4 (c) Lending, LLC Subsidiaries (d) Total California $ $ — $ — $ — $ — $ — $ Connecticut — — — — — Florida — — — Georgia — — — — — Illinois — — — — — Indiana — — — — Kansas — — — — — Kentucky — — — — — Michigan — — — — — Missouri — — — — New Hampshire — — — — — New Jersey — — — — — New York — — — — — North Carolina — — — — Rhode Island — — — — Tennessee — — — — — Texas — — — — Virginia — — — — — Total $ $ $ $ $ $ $ (a) Waterfall Victoria Mortgage Trust 2011-SBC1 is a grantor trust securitization completed by the Company in 2011 (b) Waterfall Victoria Mortgage Trust 2011-SBC3 is a grantor trust securitization completed by the Company in 2011 (c) Sutherland Commercial Mortgage Loans 2015-SBC4 is a grantor trust securitization completed by the Company in 2015 (d) Other TRSs include 435 Clark Rd, LLC

Mortgage Backed Securities

Mortgage Backed Securities	12 Months Ended
	Dec. 31, 2016
Mortgage Backed Securities
Mortgage Backed Securities	Note 9 – Mortgage Backed Securities The following table presents certain information about the Company’s MBS portfolio, which are classified as trading securities and carried at fair value, as of December 31, 2016. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses MBS Commercial Loans 02/2034 % $ $ $ $ $ Tax Liens 03/2031 — Total % $ $ $ $ $ (a) Weighted based on current principal balance The following table presents certain information about the Company’s MBS portfolio as of December 31, 2015. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses MBS Commercial Loans 08/2041 % $ $ $ $ $ Tax Liens 02/2031 — — Total % $ $ $ $ $ (a) Weighted based on current principal balance The following table presents certain information about the maturity of the Company’s MBS portfolio as of December 31, 2016. Weighted Average Interest Principal Amortized Estimated (In Thousands) Rate (a) Balance Cost Fair Value After five years through ten years % $ $ $ After ten years Total % $ $ $ The following table presents certain information about the maturity of the Company’s MBS portfolio as of December 31, 2015. Weighted Average Interest Principal Amortized Estimated (In Thousands) Rate (a) Balance Cost Fair Value After five years through ten years % $ $ $ After ten years Total % $ $ $

Servicing rights and Residentia

Servicing rights and Residential mortgage servicing rights	12 Months Ended
	Dec. 31, 2016
Servicing rights and Residential mortgage servicing rights
Servicing rights and Residential mortgage servicing rights	Note 10 - Servicing rights and Residential mortgage servicing rights The Company performs servicing activities for third parties, which primarily include collecting principal, interest and other payments from borrowers, remitting the corresponding payments to investors and monitoring delinquencies. The Company’s servicing fees are specified by Pooling and Servicing Agreements. The Company earned gross servicing fees of $14.4 million, $13.1 million, and $7.1 million for the years ended December 31, 2016, 2015, and 2014, respectively. Servicing rights – SBA and Freddie Mac The Company’s commercial loan servicing rights are carried at the lower of cost or amortized cost. The Company estimates the fair value of servicing rights carried at amortized cost using a combination of internals models and data provided by third-party valuation experts. The assumptions used in our internal valuation include the speed at which the mortgages prepay, cost of servicing, discount rate and probability of default. The Company’s models calculate the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. We derive prepayment speeds, default assumptions and discount rate from historical experience adjusted for prevailing market conditions. Components of the estimated future cash flows include servicing fees, late fees, other ancillary fees and cost of servicing. The significant assumptions used in the December 31, 2016 valuation of the Company’s servicing rights carried at amortized cost include: · Forward prepayment assumptions ranging from 2.1% to 19.1% (weighted average of 13.9%) depending on the servicing rights pool · Forward default assumptions ranging from 0.0% to 10.8% (weighted average of 1.1%) depending on the servicing rights pool · Discount rate of 12.0% · Servicing expense ranging from 0.2% to 0.4% (weighted average of 0.3%) depending on the servicing rights pool. The significant assumptions used in the December 31, 2015 valuation of the Company’s servicing rights carried at amortized cost include: · Forward prepayment assumptions ranging from 6.0% to 24.0% (weighted average of 13.6%) depending on the servicing rights pool · Forward default assumptions ranging from 0.0% to 2.4% (weighted average of 0.6%) depending on the servicing rights pool · Discount rates ranging from 12.0% to 15.0% (weighted average of 12.1%) depending on the servicing rights pool · Servicing expenses ranging from 0.2% to 0.4% (weighted average of 0.4%) depending on the servicing rights pool These assumptions can change between and at each reporting period as market conditions and projected interest rates change. Loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balance of loans serviced for others was $750.0 million and $927.9 million at December 31, 2016 and December 31, 2015, respectively. The following table presents information about the Company’s commercial loan servicing rights: Year Ended December 31, (In Thousands) 2016 2015 Beginning net carrying amount $ $ Additions due to loans sold, servicing retained Amortization Impairment Ending net carrying value $ $ The estimated future amortization expense for the Company’s commercial loan servicing rights is expected to be as follows: (In Thousands) December 31, 2016 2017 2018 2019 2020 2021 Thereafter Total $ The following table reflects the possible impact of 10% and 20% adverse changes to key assumptions on the carrying amount of the Company’s commercial loan servicing rights. (In Thousands) December 31, 2016 December 31, 2015 Default rate 10% adverse change $ $ 20% adverse change Prepayment rate 10% adverse change 20% adverse change Discount rate 10% adverse change 20% adverse change Residential mortgage servicing rights The Company's residential mortgage servicing rights 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. The following table presents information about the Company’s residential mortgage servicing rights carried at fair value: As of December 31, 2016 Unpaid Principal (In Thousands) Amount Fair Value Fannie Mae $ $ Ginnie Mae Freddie Mac Total $ $ The Company uses a third-party vendor to assist management in estimating the fair value of residential mortgage servicing rights. The third-party vendor uses a discounted cash flow approach, which consists of projecting servicing cash flows discounted to the rate that management believes market participants would use in their determinations of fair value. The significant assumptions used in the December 31, 2016 valuation of the Company’s residential mortgage servicing rights carried at fair include: · Forward prepayment assumptions ranging from 6.9% to 11.7% (weighted average of 9.3%) depending on the servicing rights pool · Discount rate assumptions ranging from 10.5% to 11.5% (weighted average of 10.8%) · Servicing expense ranging from 0.4% to 1.7% (weighted average of 0.5%) depending on the servicing rights pool. These assumptions can change between and at each reporting period as market conditions and projected interest rates change. Residential loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balance of loans serviced for others was $5.48 billion at December 31, 2016. The following table presents information about the Company’s residential mortgage servicing rights carried at fair value: (In Thousands) 2016 Beginning fair value $ — Acquired in connection with reverse merger Additions due to loans sold, servicing retained Unrealized gains Ending fair value $ The following table reflects the possible impact of 10% and 20% adverse changes to key assumptions on the fair value of the Company’s residential mortgage servicing rights. (In Thousands) December 31, 2016 Cost of service 10% adverse change $ 20% adverse change Prepayment rate 10% adverse change 20% adverse change Discount rate 10% adverse change 20% adverse change

Borrowings Under Credit Facilit

Borrowings Under Credit Facilities and Promissory Note Payable	12 Months Ended
	Dec. 31, 2016
Borrowings Under Credit Facilities and Promissory Note Payable
Borrowings Under Credit Facilities and Promissory Note Payable	Note 11 – Borrowings Under Credit Facilities and Promissory Note Payable As of December 31, 2016 and 2015, the Company had credit facilities with outstanding borrowings of $326.6 million and $175.3 million, respectively. As of December 31, 2016, the Company had outstanding borrowings under the promissory note payable of $7.4 million. There was no promissory note payable balance as of December 31, 2015. The following tables present certain characteristics of our credit facilities and promissory note payable: Maximum Facility Size Eligible Assets Maturity Pricing (In Thousands) JPMorgan - Commercial Specifically Identified Assets June 2017 LIBOR + 3.5% and LIBOR + 2.5% $ 250,000 Keybank - Commercial Specifically Identified Assets September 2017 LIBOR + 1.75% 50,000 FCB - Commercial Specifically Identified Assets June 2021 2.75% 9,164 Comerica - Residential Specifically Identified Assets September 2017 LIBOR + 2.25% 75,000 UBS - Residential Specifically Identified Assets November 2017 LIBOR + 2.30% 65,000 Associated Bank - Residential Specifically Identified Assets August 2017 LIBOR + 2.25% 40,000 Community Trust - Residential Specifically Identified Assets September 2017 LIBOR + 2.25% 25,000 Pledged Assets Carrying Value at Carrying Value at December 31, December 31, December 31, December 31, (In Thousands) 2016 2015 2016 2015 JPMorgan - Commercial $ $ $ $ Keybank - Commercial — — FCB - Commercial — — Comerica - Residential — — UBS - Residential — — Associated Bank - Residential — — Community Trust - Residential — — Total $ $ $ $ The following table presents the carrying value of the Company’s collateral pledged with respect to our borrowings under credit facilities outstanding with our lenders as of December 31, 2016. Weighted Total Average Current (In Thousands for Total Current Principal Number of Weighted Remaining Principal Carrying Balance and Carrying Value) Loans Average Rate Term Balance Value JPMorgan - Commercial % $ $ Keybank - Commercial FCB - Commercial Comerica - Residential UBS - Residential Associated Bank - Residential Community Trust - Residential Total % $ $ The following tables present the carrying value of the Company’s collateral pledged with respect to our borrowings under credit facilities outstanding as of December 31, 2015. Weighted Total Average Current (In Thousands for Total Current Principal Number of Weighted Remaining Principal Carrying Balance and Carrying Value) Loans Average Rate Term Balance Value JPMorgan - Commercial - Total % $ $ There were no outstanding credit facility or promissory note balances for Keybank, FCB, Comerica, UBS, Associated Bank, or Community Trust as of December 31, 2015. The agreements governing the Company’s borrowings under credit facilities require the Company to maintain certain financial and debt covenants. The Company was in compliance with all debt and financial covenants as of December 31, 2016 and 2015.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	12 Months Ended
	Dec. 31, 2016
Offsetting Assets and Liabilities
Offsetting Assets and Liabilities	Note 12 – Offsetting Assets and Liabilities In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association (“ISDA”) Master Agreement with multiple derivative counterparties. An ISDA Master Agreement, published by ISDA, is a bilateral trading agreement between two parties that allow both parties to enter into over-the-counter (“OTC”), derivative contracts. The ISDA Master Agreement contains a Schedule to the Master Agreement and a Credit Support Annex, which governs the maintenance, reporting, collateral management and default process (netting provisions in the event of a default and/or a termination event). Under an ISDA Master Agreement, the Company may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Company’s stockholders’ equity decline by a stated percentage or the Company fails to meet the terms of its ISDA Master Agreements, which would cause the Company to accelerate payment of any net liability owed to the counterparty. As of December 31, 2016 and December 31, 2015 and for the periods then ended, the Company was in good standing on all of its ISDA Master Agreements or similar arrangements with its counterparties. For derivatives traded under an ISDA Master Agreement, the collateral requirements are listed under the Credit Support Annex, which is the sum of the mark to market for each derivative contract, the independent amount due to the derivative counterparty and any thresholds, if any. Collateral may be in the form of Cash or any eligible securities, as defined in the respective ISDA agreements. Cash collateral pledged to and by the Company with the counterparty, if any, is reported separately on the consolidated balance sheets as restricted cash. All margin call amounts must be made before the notification time and must exceed a minimum transfer amount threshold before a transfer is required. All margin calls must be responded to and completed by the close of business on the same day of the margin call, unless otherwise specified. Any margin calls after the notification time must be completed by the next business day. Typically, the Company and its counterparties are not permitted to sell, rehypothecate or use the collateral posted. To the extent amounts due to the Company from its counterparties are not fully collateralized, the Company bears exposure and the risk of loss from a defaulting counterparty. The Company attempts to mitigate counterparty risk by establishing ISDA Agreements with only high grade counterparties that have the financial health to honor their obligations and diversification, entering into agreements with multiple counterparties. In accordance with ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities , the Company is required to disclose the impact of offsetting of assets and liabilities represented in the consolidated balance sheets to enable users of the consolidated financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities. These recognized assets and liabilities are financial instruments and derivative instruments that are either subject to enforceable master netting arrangements or ISDA Master Agreements or meet the following right of setoff criteria: (a) the amounts owed by the Company to another party are determinable, (b) the Company has the right to set off the amounts owed with the amounts owed by the counterparty, (c) the Company intends to set off, and (d) the Company’s right of setoff is enforceable at law. As of December 31, 2016 and December 31, 2015, the Company has elected to offset assets and liabilities associated with its OTC derivative contracts in the consolidated balances sheets. The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets and liabilities presented in the consolidated balance sheet as of December 31, 2016: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ $ — $ $ — $ — $ Interest rate swaps — — Total $ $ $ $ — $ — $ Gross Liabilities Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Liabilities Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ $ — $ $ — $ $ — Borrowings under credit facilities — — Promissory note payable — — — Borrowings under repurchase agreements — — — Total $ $ — $ $ $ $ — The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets and liabilities presented in the consolidated balance sheet as of December 31, 2015: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit Default Swaps $ $ — $ $ — $ — $ Liabilities Gross Presented in Gross Amounts Not Offset in the Consolidated Gross Amounts the Balance Sheets Amounts of Offset in the Consolidated Cash Recognized Consolidated Balance Financial Collateral (In Thousands) Liabilities Balance Sheets Sheets Instruments Paid Net Amount Interest Rate Swaps $ $ — $ $ — $ $ — Borrowings under repurchase agreements — — Borrowings under credit facilities — — — Total $ $ — $ $ $ $ —

Derivative Instruments

Derivative Instruments	12 Months Ended
	Dec. 31, 2016
Derivative Instruments
Derivative Instruments	Note 13 – Derivative Instruments The Company is exposed to changing interest rates and market conditions, which affects cash flows associated with borrowings. The Company enters into derivative instruments, which for the 2016 and 2015 were comprised of interest rate swaps and credit default swaps. Interest rate swaps are used to mitigate the exposure to changes in interest rates and involve the receipt of variable-rate interest amounts from a counterparty in exchange for us making payments based on a fixed interest rate over the life of the swap contract. Credit default swaps are executed in order to mitigate the risk of deterioration in the current credit health of the commercial mortgage market. IRLCs are entered into with customers who have applied for residential mortgage loans and meet certain underwriting criteria. These commitments expose GMFS to market risk if interest rates change, and if the loan is not hedged or committed to an investor. The Company uses derivative instruments to manage interest rate risk and conditions in the commercial mortgage market and, as such, views them as economic hedges. The Company has not elected hedge accounting for these derivative instruments and, as a result, the fair value adjustments on such instruments are recorded in earnings. The fair value adjustments for these derivatives, along with the related interest income, interest expense and gains/(losses) on termination of such instruments, are reported as a net realized gain on financial instruments on the consolidated statements of income. The following tables summarize the Company’s use of derivatives and their effect on the consolidated financial statements. Notional amounts included in the table are the average notional amounts on the consolidated balance sheet dates. We believe these are the most relevant measure of volume or derivative activity as they best represent the Company’s exposure to underlying instruments. As of December 31, 2016 there was one open credit default swap contract and 49 open interest rate swap contracts. The following table summarized the Company’s derivatives as of and for the year ended December 31, 2016. As of December 31, 2016 Asset Liability Notional Derivatives Derivatives (In Thousands) Primary Underlying Risk Amount Fair Value Fair Value Credit Default Swaps Credit Risk $ $ $ — Interest Rate Swaps Interest rate risk Interest rate lock commitments (IRLCs) Interest rate risk — Total $ $ $ Year Ended December 31, 2016 Net Change in Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Credit Default Swaps $ — $ Interest Rate Swaps Interest rate lock commitments (IRLCs) — Total $ $ As of December 31, 2015, there was one open credit default swap contract and nine open interest rate swap contracts with counterparties. The following table summarized the Company’s derivatives as of December 31, 2015 and for the year ended December 31, 2015. As of December 31, 2015 Asset Liability Notional Derivatives Derivatives (In Thousands) Primary Underlying Risk Amount Fair Value Fair Value Credit Default Swaps Credit Risk $ $ $ – Interest Rate Swaps Interest rate risk – Total $ $ $ Year Ended December 31, 2015 Net Change in Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Credit Default Swaps $ $ Interest Rate Swaps Total $ $

Borrowings Under Repurchase Agr

Borrowings Under Repurchase Agreements	12 Months Ended
	Dec. 31, 2016
Borrowings Under Repurchase Agreements
Borrowings Under Repurchase Agreements	Note 14 – Borrowings Under Repurchase Agreements As of December 31, 2016 and 2015, the Company had master repurchase agreements with seven counterparties and had outstanding borrowings of $600.9 million and $644.1 million with those counterparties, respectively. Our repurchase agreements bear interest at a contractually agreed-upon rate and typically have initial terms of one month at inception, but in some cases may have initial terms that are shorter or longer. The following table presents certain characteristics of our repurchase agreements at December 31, 2016: Weighted Weighted Repurchase Average Average Agreement Borrowing Remaining (In Thousands) Borrowings Rate Maturity (days) Securities financed: Short term investments $ % Loans, held-for-investment / Loans, held at fair value % Mortgage backed securities % Total securities financed $ % The following table presents certain characteristics of our repurchase agreements at December 31, 2015: Weighted Weighted Repurchase Average Average Agreement Borrowing Remaining (In Thousands) Borrowings Rate Maturity (days) Securities financed: Short term investments $ % Loans, held-for-investment / Loans, held at fair value % Mortgage backed securities % Total securities financed $ % The following table presents contractual maturity information about our borrowings under repurchase agreements at the consolidated balance sheet dates: December 31, 2016 December 31, 2015 Weighted Weighted Balance Average Balance Average Time Until Contractual Maturity (In Thousands) Interest Rate (In Thousands) Interest Rate Within 30 days $ % $ % Over 30 days to 60 days % — — % Over 60 days to 90 days % % Over 90 days to 120 days — — — — Over 120 days to 360 days % % Over 360 days — — % Total $ % $ % The following table presents the carry value or fair value of collateral positions the Company pledged with respect to the Company’s borrowings under repurchase agreements at December 31, 2016: Fair Value of Assets Assets Pledged Pledged at Amortized Accrued and Accrued (In Thousands) Fair Value Cost Interest Interest Collateral pledged: Short term investments $ $ $ — $ Loans, held-for-investment / Loans, held at fair value Mortgage backed securities Retained interest in assets of consolidated VIEs Total collateral pledged $ $ $ $ The following table presents the carry value or fair value of collateral positions the Company pledged with respect to the Company’s borrowings under repurchase agreements at December 31, 2015: Fair Value of Assets Assets Pledged Pledged at Amortized Accrued and Accrued (In Thousands) Fair Value Cost Interest Interest Collateral pledged: Short term investments $ $ $ — $ Loans, held-for-investment / Loans, held at fair value Mortgage backed securities Retained interest in assets of consolidated VIEs Total collateral pledged $ $ $ $

Guaranteed Loan Financing

Guaranteed Loan Financing	12 Months Ended
	Dec. 31, 2016
Guaranteed Loan Financing
Guaranteed Loan Financing	Note 15 – Guaranteed loan financing Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment on the consolidated balance sheets and the portion sold is recorded as guaranteed loan financing in the liabilities section of the consolidated balance sheets. For these partial loan sales, the interest earned on the entire loan balance is recorded as interest income and the interest earned by the buyer in the partial loan sale is recorded within interest expense in the accompanying consolidated statements of income. The following table presents guaranteed loan financing and the related interest rates and maturity dates: Weighted Range of Average Interest Range of (In Thousands) Interest Rate Rates Maturities (Years) Ending Balance December 31, 2016 % 3.50 – 8.75 % 2017 - 2038 $ December 31, 2015 % 1.03 – 6.99 % 2016 - 2038 $ The following table summarizes contractual maturities of total guaranteed loan financing outstanding as of the consolidated balance sheet dates: (In Thousands) December 31, 2016 2017 2018 2019 2020 2021 Thereafter Total $ Our guaranteed loan financing is secured by loans, held-for-investment of $396.9 million and $507.4 million as of December 31, 2016 and 2015, respectively.

Repair and Denial Reserve

Repair and Denial Reserve	12 Months Ended
	Dec. 31, 2016
Repair and Denial Reserve.
Repair and Denial Reserve	Note 16 – Repair and Denial Reserve The repair and denial reserve represents the potential liability to the SBA in the event that we are required to make whole the SBA for reimbursement of the guaranteed portion of SBA loans sold to third parties. As of December 31, 2016, assumptions used in calculating the reserve include a frequency of an estimated repair and denial event upon default of 4.12%, as well as an estimated severity of the repair and denial ranging from 26.8% to 81.1% of the guaranteed balance. As of December 31, 2015, assumptions used in calculating the reserve include a frequency of an estimated repair and denial event upon default of 4.26%, as well as an estimated severity of the repair and denial ranging from 24.6% to 62.2% of the guaranteed balance. Year Ended Year Ended (In Thousands) December 31, 2016 December 31, 2015 Beginning balance $ $ Release of repair and denial reserve (a) Ending balance $ $ (a) The release of the repair and denial reserve is located in other income on the consolidated statements of income

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related-Party Transactions
Related Party Transactions	Note 17 – Related Party Transactions In connection with the Company’s offering of common stock through a private placement in November 2013, the Company entered into a management agreement with the Manager (Management Agreement), which describes the services to be provided to us by the Manager and compensation for such services. The Manager is responsible for managing the Company’s day-to-day operations, subject to the direction and oversight of the Company’s board of directors. Pursuant to the terms of the Management Agreement, our Manager is paid a management fee calculated and payable quarterly in arrears equal to 1.5% per annum of the Company’s stockholders’ equity (as defined in the Management Agreement) up to $500 million and 1.00% per annum of stockholders’ equity in excess of $500 million. In 2016 the management fee was $7.4 million and $3.7 million was unpaid as of December 31, 2016. In 2015, the management fee was $7.3 million and $1.8 million was unpaid as of December 31, 2015. In 2014, the management fee was $7.0 million, $1.8 million of which was unpaid as of December 31, 2014. In addition, the Manager is entitled to an incentive distribution in an amount equal to the product of (i) 15% and (ii) the excess of (a) Core Earnings (as defined in the Management Agreement) on a rolling four-quarter basis (or the period since November 26, 2013, whichever is shorter) over (b) an amount equal to 8.00% per annum multiplied by the weighted average of the issue price per share of the common stock or OP units multiplied by the weighted average number of shares of common stock outstanding, provided that Core Earnings over the prior twelve calendar quarters (or the period since November 26, 2013, whichever is shorter) is greater than zero. Core Earnings is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items and (ii) expenses incurred in connection with the private offering of common shares. In 2016, there was no incentive distribution fee accrual. In 2015, the incentive distribution fee accrual was $1.0 million, $0.5 million of which was unpaid as of December 31, 2015. The incentive distribution fee payment is comprised of 50% of cash and 50% of the Company’s stock. The incentive fee cash distribution of $0.5 million was paid to the Manager in 2015, and the remaining $0.5 million in stock was due to the Manager as of December 31, 2015. The shares have a three-year lock up period. The initial term of the Management Agreement extends for three years from the closing of the ZAIS Financial merger and is automatically renewed for one-year terms on each anniversary thereafter. Following the initial term, the Management Agreement may be terminated upon the affirmative vote of at least two-thirds of our independent directors or the holders of a majority of the outstanding common stock (excluding shares held by employees and affiliates of the Manager), based upon (1) unsatisfactory performance by our Manager that is materially detrimental to the Company or (2) a determination that the management fee payable to the Manager is not fair, subject to the Manager’s right to prevent such a termination based on unfair fees by accepting a mutually acceptable reduction of management fees agreed to by at least two-thirds of our independent directors. The Manager must be provided with written notice of any such termination at least 180 days prior to the expiration of the then existing term and will be paid a termination fee equal to three times the sum of the average annual management fee during the 24-month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. In addition to the management fees and profit allocation described above, the Company is also responsible for reimbursing the Manager for certain expenses paid by our Manager on behalf of Company and for certain services provided by the Manager to the Company. In 2016, the Manager had $4.1 million in reimbursable expenses, and $ 3.4 million remained payable balance by the Company as of December 31, 2016. In 2015, the Manager had $4.0 million in reimbursable expenses, respectively, and $2.2 million remained payable by the Company as of December 31, 2015. In 2014 the Manager has $0.9 million in reimbursable expenses, $0.7 million of which remained payable by the Company as of December 31, 2014. Expenses incurred by the Manager and reimbursed by us are typically included in salaries and benefits or general and administrative expense on the consolidated statements of income. On May 1, 2015, Sutherland Asset I, LLC and ReadyCap Commercial, LLC executed a master repurchase agreement as sellers with Waterfall Victoria Master Fund II, LLC (“Victoria”), a fund also managed by Waterfall, as the buyer. The repurchase date under the agreement was December 31, 2015. In 2015, the interest expense accrued and paid to Victoria was $0.2 million. On January 4, 2016, the master repurchase agreement was extended through January 31, 2016. In 2016, the interest expense accrued and paid to Victoria was $0.1 million. There was no borrowings under repurchase agreements or accrued interest balance due to Victoria as of December 31, 2015 or December 31, 2016. In 2016, ReadyCap Commercial, LLC originated four loans with a total UPB of $56.4 million which the Company sold to Waterfall Olympic Master Fund LP, a fund also managed by Waterfall. The Company recognized a gain on sale of $0.2 million and origination fees of $0.7 million on these loans.

Financial Instruments with Off-

Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks	12 Months Ended
	Dec. 31, 2016
Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks
Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks	Note 18 – Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks In the normal course of business, the Company enters into transactions in various financial instruments that expose us to various types of risk, both on and off balance sheet. Such risks are associated with financial instruments and markets in which the Company invests. These financial instruments expose us to varying degrees of market risk, credit risk, interest rate risk, liquidity risk, off balance sheet risk and prepayment risk. Market Risk — Market risk is the potential adverse changes in the values of the financial instrument due to unfavorable changes in the level or volatility of interest rates, foreign currency exchange rates, or market values of the underlying financial instruments. We attempt to mitigate our exposure to market risk by entering into offsetting transactions, which may include purchase or sale of interest-bearing securities and equity securities. Credit Risk — The Company is subject to credit risk in connection with our investments in SBC loans and SBC MBS and other target assets we may acquire in the future. The credit risk related to these investments pertains to the ability and willingness of the borrowers to pay, which is assessed before credit is granted or renewed and periodically reviewed throughout the loan or security term. We believe that loan credit quality is primarily determined by the borrowers' credit profiles and loan characteristics. We seek to mitigate this risk by seeking to acquire assets at appropriate prices given anticipated and unanticipated losses and by deploying a value-driven approach to underwriting and diligence, consistent with our historical investment strategy, with a focus on projected cash flows and potential risks to cash flow. We further mitigate our risk of potential losses while managing and servicing our loans by performing various workout and loss mitigation strategies with delinquent borrowers. Nevertheless, unanticipated credit losses could occur which could adversely impact operating results. The Company is also subject to credit risk with respect to the counterparties to derivative contracts. If a counterparty becomes bankrupt or otherwise fails to perform its obligation under a derivative contract due to financial difficulties, we may experience significant delays in obtaining any recovery under the derivative contract in a dissolution, assignment for the benefit of creditors, liquidation, winding-up, bankruptcy, or other analogous proceeding. In the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If we are owed this fair market value in the termination of the derivative transaction and its claim is unsecured, we will be treated as a general creditor of such counterparty, and will not have any claim with respect to the underlying security. We may obtain only a limited recovery or may obtain no recovery in such circumstances. In addition, the business failure of a counterparty with whom we enter a hedging transaction will most likely result in its default, which may result in the loss of potential future value and the loss of our hedge and force us to cover our commitments, if any, at the then current market price. Counterparty credit 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 loans and investments with repurchase agreements and borrowings under credit facilities. In connection with these financing arrangements, the Company pledges its 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 haircut) such that the borrowings will be over-collateralized. As a result, the Company is exposed to the counterparty if, during the term of the repurchase agreement financing, a lender should default on its obligation and the Company is not able to recover its pledged assets. The amount of this exposure is the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged by the Company to the lender including accrued interest receivable on such collateral. 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 GMFS does not comply with such representations, 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. Liquidity Risk — Liquidity risk arises in our investments and the general financing of our investing activities. It includes the risk of not being able to fund acquisition and origination activities at settlement dates and/or liquidate positions in a timely manner at a reasonable price, in addition to potential increase in collateral requirements during times of heightened market volatility. If we were forced to dispose of an illiquid investment at an inopportune time, we might be forced to do so at a substantial discount to the market value, resulting in a realized loss. We attempt to mitigate our liquidity risk by regularly monitoring the liquidity of our investments in SBC loans, MBS and other financial instruments. Factors such as our expected exit strategy for, the bid to offer spread of, and the number of broker dealers making an active market in a particular strategy and the availability of long-term funding, are considered in analyzing liquidity risk. To reduce any perceived disparity between the liquidity and the terms of the debt instruments in which we invest, we attempt to minimize our reliance on short-term financing arrangements. While we may finance certain investment in security positions using traditional margin arrangements and borrowings under repurchase agreements, other financial instruments such as collateralized debt obligations, and other longer term financing vehicles may be utilized to attempt to provide us with sources of long-term financing. Off‑Balance Sheet Risk —The Company has undrawn commitments on outstanding loans which are disclosed in Note 19. Interest Rate — Interest rate risk is highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. Our operating results will depend, in part, on differences between the income from our investments and our financing costs. Our debt financing is based on a floating rate of interest calculated on a fixed spread over the relevant index, subject to a floor, as determined by the particular financing arrangement. In the event of a significant rising interest rate environment and/or economic downturn, defaults could increase and result in credit losses to us, which could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects. Furthermore, such defaults could have an adverse effect on the spread between our interest-earning assets and interest-bearing liabilities. Additionally, non-performing SBC loans are not as interest rate sensitive as performing loans, as earnings on non-performing loans are often generated from restructuring the assets through loss mitigation strategies and opportunistically disposing of them. Because non-performing SBC loans are short-term assets, the discount rates used for valuation are based on short-term market interest rates, which may not move in tandem with long-term market interest rates. A rising rate environment often means an improving economy, which might have a positive impact on commercial property values, resulting in increased gains on the disposition of these assets. While rising rates could make it more costly to refinance these assets, we expect that the impact of this would be mitigated by higher property values. Moreover, small business owners are generally less interest rate sensitive than large commercial property owners, and interest cost is a relatively small component of their operating expenses. An improving economy will likely spur increased property values and sales, thereby increasing the need for SBC financing. Prepayment Risk — As we receive prepayments of principal on our investments, premiums paid on such investments will be amortized against interest income. In general, an increase in prepayment rates will accelerate the amortization of purchase premiums, thereby reducing the interest income earned on the investments and this is also affected by interest rate movements. Conversely, discounts on such investments are accreted into interest income. In general, an increase in prepayment rates will accelerate the accretion of purchase discounts, thereby increasing the interest income earned on the investments.

Commitments, Contingencies and

Commitments, Contingencies and Indemnifications	12 Months Ended
	Dec. 31, 2016
Commitments, Contingencies and Indemnifications
Commitments, Contingencies and Indemnifications	Note 19 – Commitments, Contingencies and Indemnifications Litigation The Company may be subject to litigation and administrative proceedings arising in the ordinary course of its business. The Company has entered into agreements, which provide for indemnifications against losses, costs, claims, and liabilities arising from the performance of individual obligations under such agreements. The Company has had no prior claims or payments pursuant to these agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on history and experience, the Company expects the risk of loss to be remote. Tolling agreement GMFS was an indirect subsidiary of ZAIS Financial when we completed our merger transaction with ZAIS Financial. As disclosed in the Joint Proxy Statement Prospectus used in connection with the merger transaction, ZAIS Financial had originally acquired GMFS on October 31, 2014 (the "GMFS 2014 acquisition") from investment partnerships that were advised by our Manager and certain other entities controlled by GMFS management (together, the "2014 GMFS sellers"). The terms of the GMFS 2014 acquisition provided for the payment of both cash consideration and the possible payment of additional contingent consideration based on the achievement by GMFS of certain financial milestones specified in the GMFS 2014 acquisition agreement. As of December 31, 2016, a liability of approximately $14.5 million was accrued on our balance sheet to cover the possible payment of contingent consideration pursuant to the GMFS 2014 acquisition. In addition, the 2014 GMFS acquisition agreement contained representations and warranties related to GMFS, as well as indemnification obligations to cover breaches of representations and warranties, repurchase claims or demands from investors in respect of mortgage loans originated, purchased or sold by GMFS prior to the closing date of the acquisition and other provisions of the agreement. The 2014 GMFS acquisition agreement also established an escrow fund to support the payment of indemnification claims and allowed for indemnification claims to be offset against contingent consideration that would otherwise be payable to the 2014 GMFS sellers under the 2014 GMFS acquisition agreement. Under the terms of the indemnification provisions contained in the GMFS 2014 acquisition agreement, we are required to obtain the consent of the GMFS sellers (which include the investment partnerships managed by an affiliate of our Manager and entities controlled by GMFS management) to any settlement we reach with this counterparty, and these parties whose consent is required may have interests in the outcome of any such settlement that are different from ours. As further disclosed in the Joint Proxy Statement Prospectus, on May 11, 2015, ZAIS Financial filed its Quarterly Report on Form 10-Q, which included disclosure about the potential claims against GMFS relating to mortgage loans that were sold by GMFS to one of its mortgage loan purchasing counter parties. We estimate that dating back to a period that began approximately 17 years ago in 1999 and ended in 2006, approximately $1 billion of mortgage loans were sold servicing released by GMFS to the predecessor to this counterparty. The Joint Proxy Statement Prospectus also included information about a statute of limitation tolling agreement that had been executed by GMFS with this counterparty, including that the initial tolling agreement was executed by GMFS on December 12, 2013 and then further amended to extend the expiration date. The most recent amendment of the tolling agreement extended the expiration date to May 15, 2017 and it can be further extended by agreement of the parties. We believe that when this tolling agreement expires, absent further extension of the tolling agreement or settlement of the counterparty’s claims, it is probable that the counterparty will initiate litigation against GMFS seeking substantial damages based on alleged breaches of representations and warranties made by GMFS. We also understand that this counterparty has commenced or threatened litigation arising out of historical mortgage loan purchases by its predecessor against a number of other mortgage loan originators. While the historical claims experience of GMFS with respect to purchasers of mortgage loans from GMFS over the 1999 to 2006 period has not resulted in material damages claimed against or paid by GMFS, claims brought by this counterparty or other parties could expose GMFS to substantial damages that may be material, cause our Company and GMFS to devote significant management time and attention and other resources to resolving or defending these claims, require GMFS, our Company or other subsidiaries to incur significant costs, or cause significant losses that may be material. Although we have established a loan indemnification reserve for potential losses related to loan sale representations and warranties (as of December 31, 2016, the remaining balance of the initial loan indemnification reserve was $2.8 million) with a corresponding provision recorded for loan losses, due to the early stage of this matter and the limited information available, we are not able to determine the likelihood of the outcome. We believe it is possible that losses in excess of the loan indemnification reserve could have a material adverse impact on our results of operations, financial position or cash flows. To the extent that losses are paid, we intend to record liability reserves first as a reduction of total contingent consideration owed to the GMFS 2014 sellers (which include investment partnerships advised by our Manager and certain other entities controlled by GMFS management) and, to the extent available and practicable, to seek indemnification under the 2014 GMFS acquisition agreement. Other Management is not aware of any other contingencies that would require accrual or disclosure in the consolidated financial statements. 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 period 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. Interest Rate Lock commitments (“IRLCs”) 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. Unfunded Loan Commitments As of December 31, 2016 and December 31, 2015, the Company had $14.9 million and $16.9 million of unfunded loan commitments related to loans, held at fair value, respectively. As of December 31, 2016 and December 31, 2015, the Company had $29.3 million and $17.4 million of unfunded loan commitments related to loans, for investment, respectively. 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 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. As of December 31, 2016, total commitments to originate loans were $200.0 million.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	Note 20 – Income Taxes As described in Footnote 5 – Business Combinations, we were designated as the accounting acquirer in the merger transaction with ZAIS Financial. The financial information presented herein reflects our historical tax information in combination with the tax assets and liabilities of ZAIS Financial as of October 31, 2016. For tax purposes, ZAIS Financial is the surviving entity. ZAIS Financial elected to be taxed as a REIT commencing with its taxable year ended December 31, 2011. Our qualification as a REIT depends on our ability to meet various requirements imposed by the Internal Revenue Code, which relate to our organizational structure, diversity of stock ownership and certain requirements with regard to the nature of our assets and the sources of our income. As a REIT, we generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four taxable years. As of December 31, 2016, 2015 and 2014, we are in compliance with all REIT requirements. Certain of our subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT. Our TRSs engage in various real estate related operations, including originating and securitizing commercial and residential mortgage loans, and investments in real property. The majority of our TRSs are held within the SBC Conventional Originations, SBA Originations, Acquisitions and Servicing, and Residential Mortgage Banking segments. Our TRSs are not consolidated for federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred income taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs. Our income tax provision consists of the following: Year Ended December 31, (In Thousands) 2016 2015 2014 Current Federal income tax $ $ $ State and local income tax Net current tax provision Deferred Federal income tax State and local income tax Valuation allowance Net deferred tax provision Total income tax provision $ $ $ The following table is a reconciliation of our federal income tax determined using our statutory federal tax rate to our reported income tax provision for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (In Thousands) 2016 2015 2014 U.S. statutory tax $ $ $ State and local income tax Income attributable to REIT Income attributable to Non-controlling interests Nondeductible Other Valuation allowance Effective income tax $ $ $ Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are presented net by tax jurisdiction and are reported in other assets and other liabilities, respectively. The following table presents the tax effects of temporary differences on their respective net deferred tax assets and liabilities (in thousands): (In Thousands) December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carryforwards $ $ Unrealized losses Impairment and reserves Accruals Depreciation/amortization Goodwill — Compensation — Intangibles — Other — Total deferred tax assets Deferred tax liabilities: Loan / servicing rights balance Derivative instruments — Other taxable temporary difference Total deferred tax liabilities Valuation allowance Net deferred tax assets $ $ The Company has $10.7 million of net operating loss carryforwards that will begin to expire in 2033. As result of the ZAIS merger, our deferred tax assets increased by approximately $2.9 million. Based on our analysis of limitations imposed by Section 382 of the Internal Revenue Code, we estimate we are able to fully utilize this net operating loss, limited to $1.1 million per year. We recognize deferred tax assets and liabilities for future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under GAAP and their respective tax bases. We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. As of December 31, 2016, we continued to conclude that the positive evidence in favor of the recoverability of our deferred tax asset outweighed the negative evidence and that it is more likely than not that our deferred tax assets will be realized. Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, including the sustainability of recent profitability required to realize the deferred tax assets, the cumulative net income in our consolidated statements of income in recent years, and the carryforward periods for any carryforwards of net operating losses. The Company believes, based on expectations as to future taxable income in the jurisdictions in which it operates, the recognized net deferred tax asset of $0.7 million at December 31, 2016 is more likely than not to be realized. The tables above do not include tax information on discontinued operations. The tax rate on discontinued operations is approximately 39%. The difference between the statutory rate of 35% and the effective income tax rate is primarily due to state and local taxes. As of December 31, 2016, the Company has concluded that it is not required to establish a liability for uncertain tax positions. Additionally, it is the belief of management that the total amount of uncertain tax positions, if any, will not materially change over the next 12 months. Our major tax jurisdictions where we file income tax returns include Federal, New York State and New York City. Our 2013 and forward tax years are subject to examination. The TRS major tax jurisdictions are Federal, New York State, New York City, New Jersey and California. For Federal and state purposes, with the exception of New Jersey, the TRS entities are subject to examination for the 2013 and forward tax years. For New Jersey, the TRS entities are subject to examination for the 2012 and forward tax years.

Other Asset and Other Liabiliti

Other Asset and Other Liabilities	12 Months Ended
	Dec. 31, 2016
Other Asset and Other Liabilities
Other Asset and Other Liabilities	Note 21 – Other Assets and Other Liabilities The following table details the Company’s other assets and other liabilities as of the consolidated balance sheet dates. (In Thousands) December 31, 2016 December 31, 2015 Other assets: Due from servicers Receivable from third parties Accrued interest Deferred financing costs Fixed assets Prepaid taxes — Deferred tax asset Prepaid technology expense Prepaid insurance expense Other Total other assets $ $ Accounts payable and other accrued liabilities: Accrued salaries, wages and commissions $ $ Servicing principal and interest payable Repair and denial reserve Liability under subservicing agreements Unapplied cash Accrued interest payable Payable to related parties Accrued professional fees Loan indemnification reserve — Accrued tax liability — Liability under participation agreements Deferred tax liability — Accounts payable on liability under participation agreements Cash held as collateral Other Total accounts payable and other accrued liabilities $ $ Intangible assets The following table presents information about the intangible assets held by the Company: Carrying Value Carrying Value (In Thousands) December 31, 2016 December 31, 2015 Estimated Useful Life Trade name $ $ — 15 years Favorable lease — 12 years SBA license Indefinite life Total Intangible Assets $ $ Amortization expense related to the intangible assets acquired for the year ended December 31, 2016 was $0.1 million. Such amounts are recorded as other operating expenses in the consolidated statements of income. At December 31, 2016, accumulated amortization is as follows: (In Thousands) December 31, 2016 Trade name $ Favorable lease Total Accumulated Amortization $ Amortization expense related to the intangible assets for the five years subsequent to December 31, 2016 is as follows: (In Thousands) December 31, 2016 2017 $ 2018 2019 2020 2021 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 accrued liabilities in the Company's consolidated balance sheets and the provision for loan indemnification losses is included in Other expense in the Company's consolidated statements of income. 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. At December 31, 2016, the loan indemnification reserve was $2.8 million. 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 December 31, 2016, the reasonably possible loss above the recorded loan indemnification reserve was not considered material.

Other Income and Operating Expe

Other Income and Operating Expenses	12 Months Ended
	Dec. 31, 2016
Other Income and Operating Expenses
Other Income and Operating Expenses	Note 22 –Other Income and Operating Expenses The following table details the Company’s other income and operating expenses for the consolidated statements of income. For the Year Ended December 31, (In Thousands) 2016 2015 2014 Other income Origination income $ $ $ Release of repair and denial reserve Other Total other income $ $ $ Other operating expenses Origination costs $ $ $ Technology expense Charge off of real estate acquired in settlement of loans Rent expense Recruiting, training and travel expenses Acquisition costs Depreciation Marketing expense Insurance expense Other Total other operating expenses $ $ $

Use of Special Purpose Entities

Use of Special Purpose Entities	12 Months Ended
	Dec. 31, 2016
Use of Special Purpose Entities
Use of Special Purpose Entities	Note 23 – Use of Special Purpose Entities Special purpose entities, or “SPEs”, are entities designed to fulfill a specific limited need of the entity that organizes it. SPEs are often used to facilitate transactions that involve securitizing financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on more favorable terms than available on such assets on an un-securitized basis. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business, through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and, depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. Securitization transactions Since 2011, the Company has engaged in eight securitization transactions. Under ASC 810, Consolidation , the Operating Partnership is required to consolidate, as a VIE, the SPE/trust that was created to facilitate the transactions and to which the underlying loans in connection with the securitization were transferred. See Note 3 for a discussion of our accounting policies applied to the consolidation of the VIE and transfer of the financial assets in connection with the securitization. The loans in the securitization trust are comprised of performing and non-performing SBC loans. On a quarterly basis, the Company completes an analysis to determine whether the VIE should be consolidated. As part of this analysis, the Company’s involvement in the creation of the VIE, including the design and purpose of the VIE and whether such involvement reflects a controlling financial interest that results in the Company being deemed the primary beneficiary of the VIE is considered. In determining whether the Company would be considered the primary beneficiary, the following factors are considered: (i) whether the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE; and (ii) whether the Company has the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. Based on the Company’s evaluation of these factors, including the Company’s involvement in the design of the VIE, it was determined that the Company is required to consolidate the VIE’s created to facilitate the securitization transaction. For financial statement reporting purposes, since the underlying trust is consolidated, the securitization is effectively viewed as a financing of the loans that were securitized to enable the senior security to be created and sold to a third-party investor. As such, the senior security is presented on the consolidated balance sheets as securitized debt obligations of consolidated VIEs. The third-party beneficial interest holders in the VIE have no recourse against the Company, except that the Company has an obligation to repurchase assets from the VIE in the event that certain representations and warranties in relation to the loans sold to the VIE are breached. In the absence of such a breach, the Company has no obligation to provide any other explicit or implicit support to any VIE. As previously stated, the Company is not obligated to provide, nor has the Company provided, any financial support to these consolidated securitization vehicles. As of December 31, 2016, the carrying value of the Company’s securitized assets was $655.6 million and $4.1 million, and is presented on the consolidated balance sheet as loans, held-for-investment and real estate acquired in settlement of loans, respectively. December 31, 2015, the carrying value of the Company’s securitized assets was $633.7 million and $5.3 million, and is presented on the consolidated balance sheet as loans, held-for-investment and real estate acquired in settlement of loans, respectively. The securitization trust receives principal and interest on the underlying loans and distributes those payments to the certificate holders. The assets and other instruments held by the securitization trust are restricted in that they can only be used to fulfill the obligations of the securitization trust. The risks associated with the Company’s involvement with the VIE is limited to the risks and rights as a certificate holder of the securities retained by the Company. The activities of the trust are substantially set forth in the securitization transaction documents, primarily the loan trust agreement, the trust agreement, the indenture and the securitization servicing agreement (collectively, the “Securitization Agreements”). Neither the trust nor any other entity may sell or replace any assets of the trust except in connection with: (i) certain loan defects or breaches of certain representations and warranties which have a material adverse effect on the value of the related assets; (ii) loan defaults; (iii) certain trust events of default or (iv) an optional termination of the trust, each as specifically permitted under the Securitization Agreements. Securitized debt The consolidation of the securitization transactions includes the issuance of senior securities to third parties which are shown as securitized debt obligations of consolidated VIEs on the consolidated balance sheets. The following table presents additional information on the Company’s securitized debt obligations: December 31, 2016 December 31, 2015 Current Weighted Current Weighted Principal Carrying Average Principal Carrying Average (In Thousands) Balance value Interest Rate Balance value Interest Rate Waterfall Victoria Mortgage Trust 2011-SBC2 $ $ % $ $ % Sutherland Commercial Mortgage Loans 2015-SBC4 ReadyCap Commercial Mortgage Trust 2014-1 ReadyCap Commercial Mortgage Trust 2015-2 ReadyCap Commercial Mortgage Trust 2016-3 — — — ReadyCap Lending Small Business Trust 2015-1 Total $ $ % $ $ % Repayment of our securitized debt will be dependent upon the cash flows generated by the loans in the securitization trust that collateralize such debt. The actual cash flows from the securitized loans are comprised of coupon interest, scheduled principal payments, prepayments and liquidations of the underlying loans. The actual term of the securitized debt may differ significantly from our estimate given that actual interest collections, mortgage prepayments and/or losses on liquidation of mortgages may differ significantly from those expected. VIE impact on consolidated financial statements The following table reflects the assets and liabilities recorded on the consolidated balance sheets: (In Thousands) December 31, 2016 December 31, 2015 Assets: Cash and cash equivalents $ $ Restricted cash Loans, held-for-investment (net of allowances for loan losses of $3,409 at December 31, 2016 and $4,867 at December 31, 2015) Real estate acquired in settlement of loans Accrued interest Due from servicers Total assets $ $ Liabilities: Securitized debt obligations of consolidated VIEs $ $ Accounts payable and other accrued liabilities Total liabilities Equity $ $ The following table reflects the income and expense amounts recorded on our consolidated statements of income related to our consolidated VIEs for the periods the Company operated under operating company accounting. Year Ended December 31, (In Thousands) 2016 2015 2014 Interest income Loans, held-for-investment $ $ $ Total interest income Interest expense Securitized debt obligations Total interest expense Net interest income before provision for loan losses Provision for loan losses Net interest income after provision for loan losses Other income (expense) Other income Loan servicing expense Professional fees — Operating expenses — Total other income (expense) Realized gain (loss) Loans, held-for-investment Real estate acquired in settlement of loans Securitized debt obligations Total realized gain (loss) Net Income $ $ $

Stockholders_ Equity

Stockholders’ Equity	12 Months Ended
	Dec. 31, 2016
Stockholders’ Equity
Stockholders’ Equity	Note 24 – Stockholders’ Equity The Company’s authorized capital stock consists of 500,000,000 shares of common stock, $0.0001 par value per share. As of December 31, 2016 and 2015, 30,549,084 and 25,739,847 shares of common stock were issued and outstanding, respectively. Preferred stock The following table presents information with respect to shares of our preferred stock issued in a private offering in January 2014: Share Issue Date (In Thousands, Number Par Value Per Value of Additional Non ‑ Controlling except share data) of Shares per Share Shares Issued Paid-in-Capital Interests Net Proceeds January 30, 2014 – Preferred Offering $ $ $ $ — $ The preferred stock was redeemed in full on October 31, 2016. Common stock dividends The following table presents cash dividends declared by our board of directors on our common stock from our inception on November 26, 2013 through December 31, 2016: Dividend per Declaration Date Record Date Payment Date Share (a) May 23, 2014 June 5, 2014 June 17, 2014 $ August 28, 2014 September 10, 2014 September 24, 2014 $ November 13, 2014 November 26, 2014 December 10, 2014 $ December 23, 2014 December 31, 2014 January 21, 2015 $ May 27, 2015 June 10, 2015 June 24, 2015 $ August 21, 2015 August 28, 2015 September 11, 2015 $ November 13, 2015 November 27, 2015 December 11, 2015 $ December 31, 2015 December 31, 2015 January 29, 2016 $ May 20, 2016 June 3, 2016 June 17, 2016 $ August 23, 2016 September 2, 2016 September 16, 2016 $ October 11, 2016 October 14, 2016 October 25, 2016 $ December 21, 2016 December 30, 2016 January 27, 2017 $ (a) Retrospectively adjusted for the equivalent number of shares after reverse acquisition Incentive fee stock issuance On January 8, 2016, the Company issued 27,199 shares at $17.74 per share to the Manager for the incentive distribution fee earned for the second and third quarters of 2015. As discussed above, the Manager is entitled to an incentive distribution fee as defined in the Management Agreement. Note that the number of shares have been retroactively adjusted for the equivalent number of shares after the reverse acquisition. Stock incentive plan In connection with the reverse merger, the Company adopted ZFC Financial’s 2012 equity incentive plan (“the 2012 Plan”). The Plan authorizes the Compensation Committee to approve grants of equity-based awards to our officers, directors, and employees of the Manager and its affiliates. The equity incentive plan provides for grants of equity-based awards up to an aggregate of 5% of the shares of the Company’s common stock issued and outstanding from time to time on a fully diluted basis. No awards were issued in connection with our private offering of shares of common stock as of December 31, 2016.

Earnings per Common Share

Earnings per Common Share	12 Months Ended
	Dec. 31, 2016
Earnings per Common Share
Earnings per Common Share	Note 25 – Earnings per Common Share The following table provides a reconciliation of both net income and the number of common shares used in the computation of basic income per share. This reconciliation has been retrospectively adjusted for the equivalent number of shares after the reverse acquisition. Year Ended December 31, (In Thousands) 2016 2015 2014 Basic and diluted earnings per common share: Net income from continued operations $ $ $ Income (loss) from discontinued operations Less: Non-controlling interest Net income (loss) allocated to common shareholders $ $ $ Basic and diluted weighted average common shares outstanding Earnings (loss) per share Continuing operations $ $ $ Discontinued operations $ $ $ Certain investors own OP Units in the Operating Partnership. An OP Unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the Operating Partnership. OP unit holders have the right to redeem their OP Units, subject to certain restrictions. The redemption is required to be satisfied in shares of common stock or cash at the Company's option, calculated as follows: one share of the Company's common stock, or cash equal to the fair value of a share of the Company's common stock at the time of redemption, for each OP Unit. When an OP unit holder redeems an OP Unit, non-controlling interests in the Operating Partnership is reduced and the Company's equity is increased. At December 31, 2016, December 31, 2015 and December 31, 2014, the non-controlling interest OP unit holders owned 2,349,561, 2,268,120, and 2,839,749, OP units, respectively, or 7.1%, 8.1%, and 10.4% of the OP Units issued by the Operating Partnership.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2016
Segment Reporting
Segment Reporting	Note 26 – Segment Reporting The Company operates in four reportable segments: i) Loan Acquisitions, ii) SBC Conventional Originations, iii) SBA Originations, Acquisitions and Servicing, and iv) Residential Mortgage Banking. Through the Loan Acquisitions segment, the Company acquires performing and non-performing SBC loans and intends to continue to acquire these loans as part of the Company’s business strategy. Through the SBC Conventional Originations segment, the Company originates SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels. Additionally, as part of this segment, we originate and service multi-family loan products under the Freddie Mac program. Through the SBA Originations, Acquisitions, and Servicing segment, the Company acquires, originates and services owner-occupied loans guaranteed by the SBA under the SBA Section 7(a) Program. Through the Residential Mortgage Banking segment, the Company originates residential mortgage loans eligible to be purchased, guaranteed or insured by Fannie Mae, Freddie Mac, FHA, USDA and VA through retail, correspondent and broker channels. In accordance with ASC 280, Segment Reporting , the Company has not included discontinued operations in the segment reporting. The Company uses segment net income or loss from continuing operations as the measure of profitability of its reportable segments. Reportable segments for the year ended December 31, 2016 are summarized in the below table. SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage (In Thousands) Acquisitions Originations and Servicing Banking Consolidated Interest income Loans, held-for-investment $ $ $ $ — $ Loans, held at fair value — — Loans, held for sale, at fair value — Mortgage backed securities, at fair value — — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities Promissory note payable — — — Securitized debt obligations — — Borrowings under repurchase agreements — — Guaranteed loan financing — — — Exchangeable senior notes — — — Total interest expense $ $ $ $ $ Net interest income before provision for loan losses $ $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ $ Other income (expense) Other income (expense) $ $ $ $ $ Servicing income Gain on bargain purchase — — — Employee compensation and benefits Allocated employee compensation and benefits from related party — Professional fees Management fees – related party Loan servicing expense Other operating expenses Total other income (expense) $ $ $ $ $ Net realized (loss) gain on financial instruments Net unrealized gain on financial instruments — Net income before income tax provisions $ $ $ $ $ Provisions for income taxes Net income $ $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $ $ Reportable segments for the year ended December 31, 2015 are summarized in the below table. SBC SBA Originations, Loan Conventional Acquisitions, (In Thousands) Acquisitions Originations and Servicing Consolidated Interest income Loans, held-for-investment $ $ $ $ Loans, held at fair value Loans, held for sale, at fair value — — — — Mortgage backed securities, at fair value — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities — Securitized debt obligations of consolidated VIEs — Borrowings under repurchase agreements — Guaranteed loan financing — — Total interest expense $ $ $ $ Net interest income before provision for loan losses $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ Other income (expense) Other income $ $ $ $ Servicing income Employee compensation and benefits — Allocated employee compensation and benefits from related party Professional fees Management fees – related party Incentive fees – related party Loan servicing (expense) income Other operating expenses Total other income (expense) $ $ $ $ Net realized gain (loss) on financial instruments Net unrealized (loss) gain on financial instruments — Net income before income tax provisions $ $ $ $ Provisions for income taxes — Net income from continuing operations $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $ Reportable segments for the year ended December 31, 2014 are summarized in the below table. SBC SBA Originations, Loan Conventional Acquisitions, (In Thousands) Acquisitions Originations and Servicing Consolidated Interest income Loans, held-for-investment $ $ $ $ Loans, held at fair value — Loans, held for sale, at fair value — — — — Mortgage backed securities, at fair value — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities Securitized debt obligations of consolidated VIEs — — Borrowings under repurchase agreements — Guaranteed loan financing — — Total interest expense $ $ $ $ Net interest income before provision for loan losses $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ Other income (expense) Other income $ $ $ $ Servicing income — Employee compensation and benefits — Allocated employee compensation and benefits from related party Professional fees Management fees – related party Incentive fees – related party — — — — Loan servicing expense Operating expenses Total other income (expense) $ $ $ $ Net realized gain (loss) on financial instruments Net unrealized gain on financial instruments — Net income (loss) before income tax provisions $ $ $ $ Provisions for income taxes — — Net income (loss) from continuing operations $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2016
Discontinued Operations
Discontinued Operations	Note 27 – Discontinued Operations In the fourth quarter of 2015, the Company commenced marketing the potential sale of Silverthread. Silverthread engages in real estate brokerage and advisory services. In the fourth quarter of 2015, the Company determined Silverthread should be classified as held-for-sale due to management’s intent to sell the segment, the availability and active marketing of the segment for immediate sale and the high probability of a successful sale. The Company concluded that it would not receive continuing cash flows from Silverthread and there would be no continuing involvement by the Company. Additionally, the sale of Silverthread represents a complete exit from the real estate brokerage business. The Company has concluded that the exit from the real estate brokerage business results in a strategic shift in the operations of the Company. Therefore, the Company has included Silverthread in discontinued operations. The sale of the Silverthread closed in May of 2016, with an effective economic date of March 1, 2016. We negotiated an agreement with the buyer to receive $4.0 million. $1.7 million of which was received in early March of 2017. The remaining balance is expected at the end of March 2017. The net estimated receivable of $4.0 million is included in Receivable from Third Parties on the Consolidated Balance Sheet as of December 31, 2016. The operating results during the year ended December 31, 2016 did not have a material impact on our consolidated financial statements. The following is a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued segment that are separately presented on the consolidated balance sheets. (In Thousands) December 31, 2016 December 31, 2015 Assets: Cash and cash equivalents $ — $ Other assets: Sales commission receivable — Fixed assets — Prepaid insurance expense — Security deposit — Other — Goodwill — Total Assets $ — $ Liabilities: Accrued salaries, wages and commissions — Accounts payable and other accrued liabilities Contingent liabilities related to business combinations — Other — Total Liabilities $ — $ The primary components of discontinued operations are detailed in the table below: For the Year Ended December 31, (In Thousands) 2016 2015 2014 Other income (expense) Commission income $ $ $ Property management income Other Total other income Employee compensation and benefits Professional fees Management fees – related party — — Operating expenses Acquisition costs — — Commission expense Technology expense Rent expense Tax expense Recruiting, training, and travel expenses Marketing expense Insurance expense — — Other Total other operating expenses $ $ $ Loss on sale — Loss before income tax benefit Income tax benefit — Loss on discontinued operations presented on the statements of income $ $ $

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	Note 28 – Quarterly Financial Data (Unaudited) The following table summarizes our quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our results of operations (amounts in thousands, except per share amounts): March 31 June 30 September 30 December 31 2016 Interest income $ $ $ $ Net interest income after provision for loan losses $ $ $ $ Other income (expense) $ $ $ $ Net income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Sutherland Asset Management Corporation $ $ $ $ Earnings per share - Basic and diluted (1) $ $ $ $ 2015 Interest income $ $ $ $ Net interest income after provision for loan losses $ $ $ $ Other income (expense) $ $ $ $ Net income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Sutherland Asset Management Corporation $ $ $ $ Earnings per share - Basic and diluted (1) $ $ $ $ (1) Retroactively adjusted for the equivalent number of shares after reverse acquisition using an exchange rate of 0.8356 Annual EPS may not equal the sum of each quarter’s EPS due to rounding and other computational factors.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events
Subsequent Events	Note 29 – Subsequent Events On February 13, 2017 the ReadyCap Holdings LLC, a subsidiary of the Company, issued $75.0 million in 7.50% Senior Secured Notes (“the Notes”). Payments of the amounts due on the Notes are fully and unconditionally guaranteed by the Company and its subsidiaries: Sutherland Partners LP, Sutherland Asset I, LLC and ReadyCap Commercial, LLC. Interest on the Notes is payable semiannually on each February 15 and August 15, beginning on August 15, 2017. The Notes will mature on February 15, 2022, unless redeemed or repurchased prior to such date. Also in February 2017, the Company negotiated an agreement with the buyer of Silverthread for net proceeds of $4.0 million. $1.7 million of which was received in early March. The remaining balance is expected at the end of March 2017. In February 2017, the Company extended its borrowings under repurchase agreement with Deutsche Bank AG through February 14, 2018. The Third Amended and Restated Master Repurchase agreement has a $275 million maximum advance amount and a pricing rate of LIBOR plus 2.5% through 3.25% depending on asset type. In January 2017, the Company extended its borrowings under its repurchase agreement with UBS through November 24, 2017. The Amended and Restated Master Repurchase agreement has a maximum advance amount of $65 million and a pricing rate of LIBOR plus 2.3%. The Company evaluated subsequent events from December 31, 2016 through March 15, 2017, the date the consolidated financial statements were issued. No other subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements.

Schedule IV _ Mortgage Loans on

Schedule IV – Mortgage Loans on Real Estate	12 Months Ended
	Dec. 31, 2016
Schedule IV – Mortgage Loans on Real Estate
Schedule IV – Mortgage Loans on Real Estate	Schedule IV – Mortgage Loans on Real Estate December 31, 2016 There are no individual loans that exceed 1% of the total carrying amount of all mortgages. For applicable information on our loan portfolio for the years ended December 31, 2016 and December 31, 2015, such as description, interest rates, maturities, payment terms, face amount, carrying amount, delinquencies, and geographic locations, refer to the loan disclosures in Note 7 of our Consolidated Financial Statements. Reconciliation of mortgage loans on real estate: The following tables reconcile mortgage loans on real estate from December 31, 2015 to December 31, 2016 ($ in thousands): Loans, held-for-investment Loans, held at fair value Loans, held for sale, at fair value Total Loan Receivables Balance at December 31, 2015 $ $ $ - $ Origination of loan receivables Purchases of loan receivables - Loans acquired in connection with reverse merger - - Proceeds from disposition and principal payment of loan receivables Net realized gain (loss) on sale of loan receivables Net unrealized gain (loss) on loan receivables - Non-cash proceeds on creation of MSR Accretion/amortization of discount, premium and other fees - - Transfers Provision for loan losses - - Balance at December 31, 2016 $ $ $ $ Loans, held-for-investment Loans, held at fair value Loans, held for sale, at fair value Total Loan Receivables Balance at December 31, 2014 $ $ $ - $ Origination of loan receivables - Purchases of loan receivables - - Proceeds from disposition and principal payment of loan receivables - Net realized gain (loss) on sale of loan receivables - Net unrealized gain (loss) on loan receivables - - Non-cash proceeds on creation of MSR - - Accretion/amortization of discount, premium and other fees - - Loans brought on books as a result of the ReadyCap Lending Small Business Trust 2015-1 Securitization - Transfers - Provision for loan losses - - Balance at December 31, 2015 $ $ $ - $

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Basis of Consolidation	Basis of Consolidation The accompanying consolidated financial statements of the Company include the accounts and results of operations of the Operating Partnership and other consolidated subsidiaries and VIEs in which we are the primary beneficiary. The consolidated financial statements are prepared in accordance with ASC 810, Consolidations. Intercompany accounts and transactions have been eliminated.
Reclassifications	Reclassifications Certain amounts reported for the prior periods in the accompanying consolidated financial statements, as described in Note 27, have been reclassified in order to conform to the current period’s presentation. The historical results of Silverthread been reflected in the accompanying consolidated statements of income for the years ended December 31, 2014, 2015, and 2016 as discontinued operations and financial information related to discontinued operations has been excluded from the notes to these financial statements for all periods presented.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company has accounted for cash and cash equivalents in accordance with ASC 305, Cash and Cash Equivalents. The Company defines cash and cash equivalents as cash, demand deposits, and short-term, highly liquid investments with original maturities of 90 days or less when purchased as cash equivalents. Cash and cash equivalents are exposed to concentrations of credit risk. We deposit our cash with institutions, which we believe to have highly valuable and defensible business franchises, strong financial fundamentals, and predictable and stable operating environments. As of December 31, 2016 and 2015, the Company had $0.6 million in money market mutual funds, and substantially all of the Company’s cash and cash equivalents not held in money market funds were comprised of cash balances with banks that are in excess of the Federal Deposit Insurance Corporation insurance limits.
Restricted Cash	Restricted Cash Restricted cash represents cash held by the Company, as collateral against its derivatives, borrowings under repurchase agreements, and borrowings under credit facilities with counterparties, as well as cash held for remittance on loans serviced for third parties and collateral related to the ReadyCap Commercial Freddie Mac program. Restricted cash is not available for general corporate purposes, but may be applied against amounts due to counterparties under existing swaps and repurchase agreement borrowings, or returned to the Company when the collateral requirements are exceeded or at the maturity of the swap or repurchase agreement. Restricted cash is returned to the Company when our collateral requirements are exceeded or at the maturity or termination of the derivative, borrowings under repurchase agreements and borrowings under credit facilities.
Short term investments	Short-term investments The Company accounts for short-term investments as trading securities under ASC 320, Investments-Debt and Equity Securities . Short-term investments consist of U.S. Treasury Bills with original maturities of less than a year but greater than three months. The Company holds short-term investments at fair value. Interest received and accrued as well as the accretion of purchase discount in connection with short-term investments is recorded as interest income on the consolidated statements of income. Changes in the fair value of short-term investments are recorded as net unrealized gain (loss) on the consolidated statements of income.
Loans, held for sale, at fair value	Loans, held for sale, at fair value Loans, held for sale, at fair value are loans originated by ReadyCap and GMFS that are expected to be sold to third parties in the near term. Interest is recognized as interest income on the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) on the consolidated statements of income. The Company transfers loans held for sale, at fair value to loans, held-for-investment when the Company no longer intends to sell the loans.
Loans, held at fair value	Loans, held at fair value Loans, held at fair value are loans originated by ReadyCap. The Company has elected the fair value option because of the intent to transfer to securitizations in the near term. Interest is recognized as interest income on the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) on the consolidated statements of income. The Company transfers loans held at fair value to loans, held-for-investment on the date of securitization.
Loans, held-for-investment	Loans, held-for-investment Loans, held-for-investment are loans acquired from third parties, loans originated by ReadyCap that we do not intend to securitize or sell, or securitized loans that were previously originated by ReadyCap. Securitized loans remain on the Company’s balance sheet because the securitization vehicles are consolidated under ASC 810. Acquired loans are recorded at cost at the time they are acquired and any related allowance for loan losses is not carried over at the acquisition date. These acquired loans are segmented into two groups at time of purchase. Loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) and referred to as “Credit Impaired Loans” if both of the following conditions are met as of the acquisition date: (i) there is evidence of deterioration in credit quality of the loan since its origination and (ii) it is probable that we will not collect all contractual cash flows on the loan. Acquired loans without evidence of these conditions, securitized loans, and loans originated by ReadyCap that we do not intend to securitize are accounted for under ASC 310-10, Receivables- Overall , (“ASC 310-10”) and are referred to as “Non-credit Impaired Loans”. Non-credit Impaired Loans The Company uses the interest method to recognize, as a level-yield adjustment, the difference between the initial recorded investment in the loan and the principal amount of the loan. The calculation of the constant effective yield necessary to apply the interest method uses the payment terms required by the loan contract, and prepayments of principal are not anticipated to shorten the loan term. For non-credit impaired loans, recognition of interest income is suspended when any loans are placed on non-accrual status. Generally, all classes of loans are placed on non-accrual status when principal or interest has been delinquent for 90 days or when full collection is determined not to be probable. Interest income accrued, but not collected, at the date loans are placed on non-accrual status is reversed and subsequently recognized only to the extent it is received in cash or until it qualifies for return to accrual status. However, where there is doubt regarding the ultimate collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Loans are restored to accrual status only when contractually current and the collection of future payments is reasonably assured. Credit Impaired Loans The estimated cash flows expected for each loan is estimated at the time the loan is acquired. The excess of the cash flows expected to be collected on credit impaired loans, measured as of the acquisition date, over the initial investment is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the interest method of accretion. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected is referred to as the non-accretable difference and is not accreted over time. The Company estimates expected cash flows to be collected over the life of individual credit impaired loans on a quarterly basis. If the Company determines that discounted expected cash flows have decreased, the credit impaired loans would be considered further impaired, which would result in a provision for loan loss and a corresponding increase in valuation allowance included in the allowance for loan losses. If discounted expected cash flows have increased, or improved, in subsequent evaluations, the increase in cash flows is first used to reverse the amount of any related allowance for loan losses before the yield is adjusted. Additionally the Company will increase the accretable yield to account for the significant increase in expected cash flows. The estimate of the amount and timing of cash flows for our credit impaired loans is based on historical information available and expected future performance of the loans, and may include the timing of expected future cash flows, prepayment speed, default rates, loss severities, delinquency rates, percentage of non-performing loans, extent of credit support available, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios, geographic concentrations, as well as reports by credit rating agencies, such as Moody’s, Standard & Poor’s Corporation (“S&P”), or Fitch, general market assessments and dialogue with market participants. As a result, substantial judgment is used in the analysis to determine the expected cash flows. The determination of whether an allowance for loan loss is necessary if there is a decrease in cash flows based on consideration of factual information available at the time of assessment as well as management’s estimates of the future performance and projected amount and timing of cash flows expected to be collected on the loan.
Allowance for loan losses	Allowance for loan losses The allowance for loan losses is intended to provide for credit losses inherent in the loans, held-for-investment portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value ratio and economic conditions. The allowance for loan losses is increased through provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. For non-credit impaired loans, we determine the allowance for loan losses by measuring credit impairment on (1) an individual basis for non-accrual status loans, and (2) on a collective basis for all other loans since they have similar risk characteristics. The allowance of loan losses on an individual basis is assessed when a loan is on non-accrual and the recoverability of the loan is less than its carrying value. The Company considers the loans to be collateral dependent and relies on the current fair value of the collateral as the basis for determining impairment. Loans that are not assessed individually for impairment are assessed on a collective basis. For the acquired loans we performed a historical analysis on both cumulative defaults and severity upon default for all loans that were current as of November 4, 2013 when the Company was formed or acquired thereafter. We calculated the cumulative default and loss severity on the acquired loans with delinquency statuses of 90+ days and applied those factors to the current acquired loan population. For the originated loans, our historical data does not show any defaults, therefore we used a Moody’s analysis performed on the latest ReadyCap securitization to determine the likelihood of default and to determine loss severity we stressed collateral value to the current principal balance based on the total valuation decline of SBC properties from the peak valuation in 2007 through their post-crises low in 2010. For credit impaired loans, the allowance for loan losses is described in the credit impaired loan discussion above. While we have a formal methodology to determine the adequate and appropriate level of the allowance for loan losses, estimates of inherent loan losses involve judgment and assumptions as to various factors, including current economic conditions. Our determination of adequacy of the allowance for loan losses is based on quarterly evaluations of the above factors. Accordingly, the provision for loan losses will vary from period to period based on management's ongoing assessment of the adequacy of the allowance for loan losses.
Non-accrual loans	Non-accrual loans Non-accrual loans are the loans for which we are not accruing or accreting interest income. Non-accrual loans include non-credit impaired loans when principal or interest has been delinquent for 90 days or when it is determined that full collection of contractual cash flows is not probable. Additionally, credit impaired loans for which the Company is unable to reasonably estimate the timing and amount of expected cash flows are considered to be non-accrual loans. Income on credit impaired loans is recognized as described above under— Loans, held-for-investment—Credit Impaired Loans .
Troubled Debt Restructurings	Troubled Debt Restructurings In situations where, for economic or legal reasons related to the borrower’s financial difficulties, we grant concessions for a period of time to the borrower that we would not otherwise consider, the related loans are classified as a troubled debt restructuring (“TDR”). These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize our economic loss and to avoid foreclosure or repossession of collateral. For modifications where we forgive principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs, are considered impaired loans. Other than resolutions such as foreclosures, sales and transfers to loans at fair value, we may remove loans held-for-investment from TDR classification, but only if they have been refinanced or restructured at market terms and qualify as a new loan. Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected.
Impaired loans	Impaired loans The Company considers a loan to be impaired when the Company does not expect to collect all the contractual interest and principal payments as scheduled in the loan agreements.
Mortgage backed securities, at fair value	Mortgage backed securities, at fair value The Company accounts for MBS as trading securities and are carried at fair value under ASC 320, Investments-Debt and Equity Securities. Our MBS portfolio is comprised of asset-backed securities collateralized by interest in or obligations backed by pools of SBC loans. Purchases and sales of MBS are recorded on the trade date. Our MBS securities pledged as collateral against borrowings under repurchase agreements are included in mortgage backed securities, at fair value on our consolidated balance sheets. MBS are recorded at fair value as determined by market prices provided by independent broker dealers or other independent valuation service providers. The fair values assigned to these investments are based upon available information and may not reflect amounts that may be realized. We generally intend to hold our investment in MBS to generate interest income; however, we have and may continue to sell certain of our investment securities as part of the overall management of our assets and liabilities and operating our business.
Loans eligible for repurchase from Ginnie Mae	Loans eligible for repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company then records the right to repurchase the loan as an asset and liability in its consolidated balance sheets. Such amounts reflect the unpaid principal balance of the loans.
Real estate acquired in settlement of loans	Real estate acquired in settlement of loans Real estate acquired in settlement of loans is accounted for under ASC 360, Property, Plant and Equipment (“ASC 360”). The Company acquires substantially all its real estate through the foreclosure of mortgage loans that have become delinquent with limited other recourse. The Company’s intentions are to sell the real estate within a short holding period. Real estate is recorded at fair value at the time the Company receives title and is subsequently held at the lower of its carrying amount or fair value less closing costs. All legal fees and direct costs relating to real estate owned are expensed as incurred. Each investment in real estate property is tested for impairment on a quarterly basis.
Derivative instruments, at fair value	Derivative instruments, at fair value Subject to maintaining our qualification as a REIT for U.S. federal income tax purposes, we utilize derivative financial instruments, currently comprised of credit default swaps, interest rate swaps, and interest rate lock commitments as part of our risk management. The Company accounts for derivative instruments under ASC 815, Derivatives and Hedges . All derivatives are reported as either assets or liabilities on the consolidated balance sheets at estimated fair value. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability. The Company has not elected hedge accounting for these derivative instruments and, as a result, changes in the fair value for these derivatives are recorded in earnings. Although permitted under certain circumstances, the Company does not offset cash collateral receivable or payables against our gross derivative positions. As of December 31, 2016 and 2015, the cash collateral receivable held for derivative instruments is $1.7 million and $5.3 million, respectively, and is included in restricted cash on the consolidated balance sheets. Interest Rate Swap Agreements An interest rate swap is an agreement between two counterparties to exchange periodic interest payments where one party to the contract makes a fixed-rate payment in exchange for a floating-rate payment from the other party. The dollar amount each party pays is an agreed-upon periodic interest rate multiplied by some pre-determined dollar principal (notional amount). No principal (notional amount) is exchanged between the two parties at trade initiation date. Only interest payments are exchanged. Interest rate swaps are classified as Level 2 in the fair value hierarchy. The fair value adjustments, along with the related interest income or interest expense, are reported as net gain/loss on financial instruments. Interest Rate Lock Commitments (“IRLCs”) IRLCs are agreements under which the Company agrees to extend credit to a borrower under certain specified terms and conditions in which the interest rate and the maximum amount of the loan are set prior to funding. Unrealized gains and losses on the IRLCs, reflected as derivative assets and derivative liabilities, respectively, are measured based on the value of the underlying mortgage loan, quoted government-sponsored enterprise (“GSE”, such as Fannie Mae, Freddie Mac, or Ginnie Mae) or MBS prices, estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The unrealized gains or losses are reported on the consolidated statements of income as net unrealized gain/(loss) on financial instruments. IRLCs are classified as Level 3 in the fair value hierarchy. Credit Default Swaps (“CDS”) CDS are contracts between two parties, a protection buyer who makes fixed periodic payments, and a protection seller, who collects the premium in exchange for making the protection buyer whole in the case of default. They are similar to buying or selling insurance contracts on a borrower’s debt, without being regulated by insurance regulators. The fair value adjustments, along with the related interest income or interest expense, are reported as gain/(loss) on financial instruments. Credit default swaps are classified as Level 2 in the fair value hierarchy.
Servicing rights and Residential mortgage servicing rights, at fair value	Servicing rights and Residential mortgage servicing rights, at fair value Servicing rights represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the servicing right asset against contractual servicing and ancillary fee income. Mortgage servicing rights are recognized upon sale or securitization of mortgage loans if servicing is retained. Creation of mortgage servicing rights retained upon sale of a loan is included in net realized gain on the consolidated statements of income. The Company treats its servicing rights and residential mortgage servicing rights as two separate classes of servicing assets based on the class of the underlying mortgages and it treats these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s servicing of SBA 7A commercial mortgage loans are accounted for under ASC 860, Transfers and Servicing, while the Company’s residential mortgage servicing rights are accounted for under the fair value option under ASC 825, Financial Instruments. Servicing rights – SBA and Freddie Mac Commercial loan servicing rights are accounted for under ASC 860, Transfers and Servicing . Servicing rights are initially recorded at fair value and subsequently carried at amortized cost. We capitalize the value expected to be realized from performing specified servicing activities for others. Such value reflects the estimated fair value of the expected net cash flows associated with the servicing of the loan. These capitalized servicing rights are purchased or retained upon sale or securitization of mortgage loans. Servicing rights are amortized in proportion to and over the period of estimated servicing income, and is tested for potential impairment quarterly. For purposes of testing our servicing rights for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows of the intangibles is determined using discounted cash flow modeling techniques, which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We leverage all available relevant market data to determine the fair value of our recognized servicing assets. Since quoted market prices for servicing rights are not readily available, we estimate the fair value of servicing rights by determining the present value of future expected servicing cash flows using modeling techniques that incorporate management's best estimates of key variables including expected cash flows, prepayment speeds, and return requirements commensurate with the risks involved. Cash flow assumptions are modeled using our internally forecasted revenue and expenses, and where possible, the reasonableness of assumptions is periodically validated through comparisons to market data. Prepayment speed estimates are determined from historical prepayment rates or obtained from third-party industry data. Return requirement assumptions are determined using data obtained from market participants, where available, or based on current relevant interest rates plus a risk-adjusted spread. We also consider other factors that can impact the value of the servicing rights, such as surety provider termination clauses and servicer terminations that could result if we failed to materially comply with the covenants or conditions of our servicing agreements and did not remedy the failure. Since many factors can affect the estimate of the fair value of servicing rights, we regularly evaluate the major assumptions and modeling techniques used in our estimate and review these assumptions against market comparables, if available. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates. Residential mortgage servicing rights, at fair value The Company’s residential mortgage servicing rights consist of conforming conventional residential 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. As permitted by U.S. GAAP, the Company has elected to account for its acquired portfolio of mortgage servicing rights at fair value. For these assets, the Company uses a third-party vendor to assist management in estimating the fair value. The third-party vendor uses a discounted cash flow approach which consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key assumptions used in the estimation of the fair value of MSRs include prepayment speeds, discount rates, default rates, cost to service, contractual servicing fees, escrow earnings and ancillary income. MSRs are classified as Level 3 in the fair value hierarchy.
Intangible assets	Intangible assets Intangible assets are accounted for under ASC 350, Intangibles-Goodwill and Other . As of December 31, 2016, the Company’s identifiable intangible assets include SBA license for our Lending operations as well as a trade name, customer relationships, a favorable lease, and other licenses, obtained as part of the ZAIS Financial merger transaction. As of December 31, 2015, the Company’s identifiable intangible assets include one U.S. SBA license for our Lending operations. The Company determined that its SBA license has an indefinite life, while the other intangibles acquired as part of the ZAIS Financial merger transaction are finite-lived. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives. The Company initially records its intangible assets at cost and subsequently tests for impairment on a quarterly basis. Intangible assets are included within other assets on the consolidated balance sheets.
Deferred financing costs	Deferred financing costs Costs incurred in connection with our borrowings under credit facilities are accounted for under ASC 340, Other Assets and Deferred Costs . Deferred costs are capitalized and amortized using the effective interest method over the respective financing term with such amortization reflected on our consolidated statements of income as a component of interest expense. Our deferred financing costs may include legal, accounting and other related fees. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Unamortized deferred financing costs related to securitizations are presented on the consolidated balance sheets as a direct deduction from the associated debt liability, or securitized debt obligations.
Due from Servicers	Due from Servicers The loan-servicing activities of the Company’s SBC Loan Acquisitions and SBC Conventional Originations reportable segments are performed primarily by third-party servicers. SBA loans originated by and held at ReadyCap Lending are internally serviced. Residential mortgage loans originated by and held at GMFS are internally serviced. As of December 31, 2016 and 2015, the Company’s servicers hold substantially all of the cash owned by the Company related to loan servicing activities. These amounts include principal and interest payments made by borrowers, net of advances and servicing fees. Cash is generally received within thirty days of recording the receivable. As of December 31, 2016 and 2015, the due from servicers balance in the amount of $54.7 million and $20.3 million, respectively, represent funds received by loan servicers from loan activities that have not yet been paid to the Company. As of December 31, 2016 and 2015, $27.7 million and $6.1 million of these balances are included within the assets of consolidated VIEs on the consolidated balance sheets. The Company is subject to credit risk to the extent any servicer with whom the Company conducts business is unable to deliver cash balances or process loan-related transactions on the Company’s behalf. The Company monitors the financial condition of the servicers with whom the Company conducts business and believes the likelihood of loss under the aforementioned circumstances is remote.
Borrowings under credit facilities	Borrowings under credit facilities The Company accounts for borrowings under credit facilities under ASC 470, Debt. The Company partially finances its loans, held-for-investment, and loans, held for sale, at fair value through credit agreements with various counterparties. These borrowings are collateralized by loans, held-for-investment, and loans, held for sale, at fair value and have maturity dates within two years from the consolidated balance sheet date. If the fair value (as determined by the applicable counterparty) of the collateral securing these borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue collection of any outstanding debt amount from us. Interest paid and accrued in connection with credit facilities is recorded as interest expense on the consolidated statements of income.
Promissory note payable	Promissory note payable The Company accounts for promissory notes payable under ASC 470, Debt. Pursuant to the adoption of ASU 2015-03, the Company’s promissory note payable is presented net of debt issuance costs. The Company partially finances its loans, held-for-investment through promissory notes with various counterparties. These notes are collateralized by loans, held-for-investment and have maturity dates within five years from the consolidated balance sheet date. Interest paid and accrued in connection with promissory notes is recorded as interest expense on the consolidated statements of income.
Securitized debt obligations of consolidated VIEs	Securitized debt obligations of consolidated VIEs Since 2011, we have engaged in eight securitization transactions, which the Company accounts for under ASC 810. The Company is required to consolidate, as a VIE, the special purpose entity (“SPE”)/trust that was created to facilitate the transaction and to which the underlying loans in connection with the securitization were transferred. The consolidation of the SPE includes the issuance of senior securities to third parties, which are shown as securitized debt obligations of consolidated VIEs on the consolidated balance sheets. Debt issuance costs related to securitizations are presented as a direct deduction from the carrying value of the related debt liability. These costs are amortized using the effective interest method. Amortization of debt issuance costs is amortized using the effective interest method and is included in interest expense from securitized debt obligations on the financial statements.
Borrowing under repurchase agreements	Borrowing under repurchase agreements Borrowings under repurchase agreements are accounted for under ASC 860, Transfers and Servicing . Investment securities financed under repurchase agreements are treated as collateralized borrowings, unless they meet sale treatment or are deemed to be linked transactions. Through December 31, 2016, none of our repurchase agreements have been accounted for as components of linked transactions. All securities financed through a repurchase agreement have remained on our consolidated balance sheets as an asset and cash received from the lender was recorded on our consolidated balance sheets as a liability. Interest paid and accrued in connection with our repurchase agreements is recorded as interest expense on the consolidated statements of income.
Guaranteed loan financing	Guaranteed loan financing Certain partial loan sales do not qualify for sale accounting under ASC 860, Transfers and Servicing because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment on the consolidated balance sheets and the portion sold is recorded as guaranteed loan financing in the liabilities section of the consolidated balance sheets. For these partial loan sales, the interest earned on the entire loan balance is recorded as interest income and the interest earned by the buyer in the partial loan sale is recorded within interest expense in the accompanying consolidated statements of income.
Contingent consideration	Contingent consideration Contingent consideration represent future payments of cash or equity interests to the former owners of GMFS, which was acquired on October 31, 2016. The contingent consideration was initially recorded on the date of acquisition at fair value in the consolidated balance sheet and is subsequently remeasured each reporting period at fair value with the change in the fair value recorded in operating expenses in the Company’s consolidated statements of income.
Repair and denial reserve	Repair and denial reserve The repair and denial reserve represents the potential liability to the SBA in the event that we are required to make whole the SBA for reimbursement of the guaranteed portion of SBA loans. We may be responsible for the guaranteed portion of SBA loans if there are lien and collateral issues, unauthorized use of proceeds, liquidation deficiencies, undocumented servicing actions or denial of SBA eligibility. This reserve is calculated using an estimated frequency of a repair and denial event upon default, as well as an estimate of the severity of the repair and denial as a percentage of the guaranteed balance.
Variable Interest Entities	Variable Interest Entities VIEs are defined as entities in which equity investors (i) do not control the entity, and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. For VIEs that do not have substantial ongoing activities, the power to direct the activities that most significantly impact the VIE’s economic performance may be determined by an entity’s involvement with the design of the VIE. The Company is required to re-evaluate whether to consolidate a VIE each reporting period, based upon the facts and circumstances pertaining to the VIE during such period. The Company consolidates a VIE when it is determined to be the primary beneficiary of such VIE. The Company uses special purpose entities to securitize financial assets. Securitization involves transferring assets to an SPE, or securitization trust, to convert all or a portion of those assets into cash before they would have been realized in the normal course of business, through the SPE’s issuance of debt instruments. Since 2011, we have engaged in eight securitization transactions. As discussed in Note 23, we have concluded that the Company was the primary beneficiary in each of these securitization trusts and the securitization trusts are VIEs that are consolidated.
Non-controlling Interests	Non-controlling Interests Non-controlling interest presented on the consolidated balance sheets and the consolidated statements of income represent direct investment in the Operating Partnership by Sutherland OP Holdings I, Ltd. Sutherland OP Holdings II, Ltd., and third parties.
Fair Value Option	Fair Value Option The guidance in FASB ASC Topic 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for loans held-for-sale originated by ReadyCap as well as loans originated by ReadyCap that the Company intends to securitize. The fair value elections for loans, held at fair value originated by ReadyCap were made due to the short-term nature of these instruments. We have elected the fair value option for certain residential mortgage servicing rights acquired and contingent consideration assumed as part of the merger transaction.
Earnings per Share	Earnings per Share Basic earnings per share is computed using the weighted-average number of shares of common stock outstanding during the period and other securities that participate in dividends, such as our Operating Partnership units to arrive at total common dividends based on their respective weighted-average shares outstanding for the period. The Company’s basic and diluted earnings per share are the same, as there were no dilutive securities outstanding for any of the periods presented. The Company’s earnings per share has been updated retroactively as a result of the reverse merger.
Income Taxes	Income Taxes GAAP establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We assess the recoverability of deferred tax assets through evaluation of carryback availability, projected taxable income and other factors as applicable. Significant judgment is required in assessing the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns as well as the recoverability of amounts we record, including deferred tax assets. We provide for exposure in connection with uncertain tax positions, which requires significant judgment by management including determination, based on the weight of the tax law and available evidence, that it is more-likely-than-not that a tax result will be realized. Our policy is to recognize interest and/or penalties related to income tax matters in income tax expense on our consolidated statements of income. As of December 31, 2016, we accrued no taxes, interest or penalties related to uncertain tax positions. In addition, we do not anticipate a change in this position in the next 12 months.
Revenue Recognition	Revenue Recognition Revenue is accounted for under ASC 605, Revenue Recognition, which provides among other things that revenue be recognized when there is persuasive evidence an arrangement exists, delivery and services have been rendered, price is fixed and determinable and collectability is reasonably assured. Interest Income Interest income on non-credit impaired loans, held-for-investment, loans, held at fair value, loans, held for sale, at fair value, and MBS, at fair value is accrued based on the outstanding principal amount and contractual terms of the instrument. Discounts or premiums associated with the loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on contractual cash flows through the maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to the accrual status of the asset. If the asset has been delinquent for the previous 90 days, the asset status will turn to non-accrual, and recognition of interest income will be suspended until the asset resumes contractual payments for three consecutive months. Realized Gains (Losses) Upon the sale or disposition (not including the prepayment of outstanding principal balance) of loans or securities, the excess (or deficiency) of net proceeds over the net carrying value or cost basis of such loans or securities is recognized as a realized gain/loss. Outstanding interest balances for payments in full are reported in interest income on loans, held-for-investment. Origination Income and Expense Origination income represents fees received for origination of either loans, held at fair value, loans, held for sale, at fair value, or loans, held-for-investment. For loans held, at fair value, and loans, held for sale, at fair value, pursuant to ASC 825, the Company reports origination fee income as revenue and fees charged and costs incurred as expenses. These fees and costs are excluded from the fair value. For originated loans, held-for-investment, under ASC 310-10, the Company defers these origination fees and costs at origination and amortizes them under the effective interest method over the life of the loan. Origination fees and expenses for loans, held at fair value and loans, held for sale, at fair value, are presented in the consolidated statements of income in other income and operating expenses. The amortization of net origination fees and expenses for loans, held-for-investment are presented in the consolidated statements of income in interest income.

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2016
Business Combinations
Schedule of fair value of assets acquired and liabilities acquired	(In Thousands) October 31, 2016 Assets: Cash and cash equivalents $ Short term investments Restricted cash Loans, held-for-investment, at cost Loans, held for sale, at fair value Mortgage backed securities, at fair value Loans eligible for repurchase from GNMA Residential mortgage servicing rights, at fair value Derivative assets, at fair value Other assets Identifiable Intangibles Total assets Liabilities: Borrowings under credit facilities Borrowings under repurchase agreements Exchangeable senior notes Contingent consideration Accounts payable and other liabilities Liability for loans eligible for repurchase from GNMA Total liabilities Fair Value of Net Assets Acquired $
Schedule of aggregate consideration transferred, net assets acquired, and related bargain purchase gain	ZAIS closing share price on October 31, 2016 $ ZAIS Common shares and OP units acquired Fair value of consideration transferred $ Fair Value of Net Asset Acquired $ Bargain purchase gain $
Schedule of revenue and earnings from the net assets acquired	For the year ended (In Thousands) December 31, 2016 Interest income $ Interest expense Other income (expense) Realized gain (loss) Unrealized gain (loss) Net income $
Schedule of pro-forma revenue and earnings (unaudited)	For the year ended December 31, (In Thousands) 2016 2015 Selected Financial Data Interest income $ $ Interest expense $ $ Provision for loan losses $ $ Other income (expense) $ $ Realized gain (loss) $ $ Unrealized gain (loss) $ $ Net income from continuing operations before income taxes $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair value measurements
Schedule of financial instruments carried at fair value on a recurring basis	The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2016: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ $ — $ — $ Short term investments — — Loans, held for sale, at fair value — Loans, held at fair value — — Mortgage backed securities, at fair value — — Derivative instruments, at fair value — Residential mortgage servicing rights, at fair value — — Total assets $ $ $ $ Liabilities: Derivative instruments, at fair value $ — $ $ — $ Contingent consideration — — Total liabilities $ — $ $ $ The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2015: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ $ — $ — $ Short term investments — — Loans, held at fair value — — Mortgage backed securities, at fair value — — Derivative instruments, at fair value — — Total assets $ $ $ $ Liabilities: Derivative instruments, at fair value $ — $ $ — $ Total liabilities $ — $ $ — $
Summary of the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy	Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ Single External Source Discounted Cash Flow $ 98.47 – 105.00 $ Loans, held for sale, at fair value Single External Source Discounted Cash Flow 100.04– 102.97 Mortgage backed securities, at fair value Broker Quotes Third Party Mark 73.00 – 101.00 Mortgage backed securities, at fair value Transaction Price Transaction Price 99.00 – 99.00 Residential mortgage servicing rights, at fair value Single external source Discounted cash flow N/A N/A Contingent consideration Single external source Option pricing model N/A N/A (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2015 using third-party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ Single External Source Discounted Cash Flow $ 98.09 – 105.00 $ Mortgage backed securities, at fair value Broker Quotes Third Party Mark 22.55 – 102.50 Mortgage backed securities, at fair value Transaction Price Transaction Price 100.00 – 100.00 (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class
Summary of the carrying value and estimated fair value of financial instruments not carried at fair value on the consolidated balance sheets and are classified as Level 3	December 31, 2016 December 31, 2015 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Loans, held-for-investment $ $ $ $ Servicing rights Other assets Total assets $ $ $ $ Liabilities: Borrowings under credit facilities $ $ $ $ Promissory note payable — — Securitized debt obligations of consolidated VIEs Guaranteed loan financing Liabilities under participation agreements Borrowings under repurchase agreements Accounts payable and other accrued liabilities Total liabilities $ $ $ $ (a) Other assets not carried at fair value and are classified as Level 3 include Due from servicers, Accrued interest, Deferred financing costs and Receivable from third parties, which are included in Note 21. (b) Accounts payable and other accrued liabilities not carried at fair value and are classified as Level 3 include Payable to related parties which are included in Note 21.
Summary of the valuation techniques used for the Company’s investments that are categorized within Level 3 of the fair value hierarchy, but not held at fair value	The following table summarizes the valuation techniques used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy, but not held at fair value as of December 31, 2016: Predominant Weighted Valuation Average (In Thousands) Fair Value Technique Type Price Range (a) Price (b) Assets Loans, held-for-investment $ Single external source Discounted cash flow $ 40.72 – 137.12 $ SBA 7A loan servicing rights Single external source Discounted cash flow N/A N/A Liabilities Borrowings under credit facilities Transaction price N/A N/A N/A Securitized debt obligations, of consolidated VIEs Broker quote Average broker quote 68.92 – 103.21 Guaranteed loan financing Single external source Discounted cash flow 96.49 – 110.88 Liabilities under participation agreements Single external source Discounted cash flow 27.02 – 140.54 Borrowings under repurchase agreements Transaction price N/A N/A N/A (a) Price ranges shown are two standard deviations from the mean value, or represents about 95% of the price data points, therefore excludes outliers (b) Prices are weighted based on the fair value of the investments and liabilities included in the range for each class The following table summarizes the valuation techniques used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy, but not held at fair value as of December 31, 2015: Predominant Weighted Valuation Average (In Thousands) Fair Value Technique Type Price Range (a) Price (b) Assets Loans, held-for-investment $ Single external source Discounted cash flow $ 33.18 – 139.30 $ SBA 7A loan servicing rights Single external source Discounted cash flow N/A N/A Liabilities Borrowings under credit facilities Transaction price N/A N/A N/A Securitized debt obligations, of consolidated VIEs Broker quote Average broker quote 81.04 – 102.00 Guaranteed loan financing Single external source Discounted cash flow 96.20 – 111.31 Liabilities under participation agreements Single external source Discounted cash flow 20.10 – 136.30 Borrowings under repurchase agreements Transaction price N/A N/A N/A (a) Price ranges shown are two standard deviations from the mean value, or represents about 95% of the price data points, therefore excludes outliers (b) Prices are weighted based on the fair value of the investments and liabilities included in the range for each class
Loans, held at fair value
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ $ Realized gains, net Unrealized gains, net Originations Sales Principal payments Transfer to loans, held for sale, at fair value — Transfer to loans, held-for-investment Ending Balance $ $
Loans, held for sale, at fair value
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ — $ — Realized gains, net — Originations — Creation of mortgage servicing rights included in realized gains, net — Sales — Transfer from loans, held at fair value — Ending Balance $ $ —
MBS
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Year Ended December 31, (In Thousands) 2016 2015 Beginning Balance $ $ Accreted discount (amortized premium), net Realized losses, net Unrealized gains, net Purchases Acquired in connection with reverse merger — Sales / Principal Payments Ending Balance $ $
Residential MRSs
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	(In Thousands) Year Ended Beginning Balance $ — Acquired in connection with reverse merger Mortgage servicing rights resulting from mortgage loan sales Unrealized gains Ending Balance $
Derivatives
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Year Ended (In Thousands) Interest Rate Lock Commitments Beginning Balance $ — Acquired in connection with reverse merger Unrealized losses Ending Balance $
Contingent Consideration
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Year Ended (In Thousands) 2016 Beginning Balance $ — Acquired in connection with reverse merger Amortization Ending Balance $

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of classification and unpaid principal balance of loans by reporting segment	SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2016 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ $ Held for sale, at fair value — Held at fair value — — Total loans $ $ $ $ 127,425 $ SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2015 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ — $ Held at fair value — — Total loans $ $ $ $ — $
Schedule of classification and carrying value of loans by reporting segment	SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2016 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ $ Held for sale, at fair value — Held at fair value — — Total loans $ $ $ $ $ SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage December 31, 2015 (In Thousands) Acquisitions Originations and Servicing Banking Total Loans Held-for-investment $ $ $ $ — $ Held at fair value — — Total loans $ $ $ $ — $
Schedule of recorded investment of TDRs	(In Thousands) December 31, 2016 December 31, 2015 Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $
Schedule of TDRs that occurred	(In Thousands) December 31, 2016 December 31, 2015 Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ The following table summarizes the TDRs that occurred during the year ended December 31, 2016. Pre-Modification Post-Modification (In Thousands) Recorded Balance Recorded Balance Number of Loans Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $ The following table summarizes the TDRs that occurred during the year ended December 31, 2015. Pre-Modification Post-Modification (In Thousands) Recorded Balance Recorded Balance Number of Loans Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $
Schedule of TDR modifications by primary modification type and related financial effects	The following table summarizes our TDR modifications in the year ended December 31, 2016 presented by primary modification type and includes the financial effects of these modifications. Interest Term Interest Rate Principal Income (In Thousands) Extension Reduction Reduction Foreclosure Total Recognized Troubled debt restructurings SBC $ $ $ — $ $ $ SBA Total troubled debt restructurings $ $ $ $ $ $ The following table summarizes our TDR modifications in the year ended December 31, 2015 presented by primary modification type and includes the financial effects of these modifications. Interest Term Interest Rate Principal Income (In Thousands) Extension Reduction Reduction Foreclosure Total Recognized Troubled debt restructurings SBC $ $ — $ $ — $ $ SBA — Total troubled debt restructurings $ $ $ $ — $ $
Schedule of accrual status of TDRs	The table below summarizes the accrual status and UPB of TDRs as of December 31, 2016. (In Thousands) Accrual Non-Accrual Total Troubled debt restructurings SBC $ $ $ SBA Total troubled debt restructurings $ $ $ The table below summarizes the accrual status and UPB of TDRs as of December 31, 2015. (In Thousands) Accrual Non-Accrual Total Troubled debt restructurings SBC $ $ — $ SBA Total troubled debt restructurings $ $ $
Schedule of TDRs remaining in default	Year Ended December 31, 2016 Year Ended December 31, 2015 (In Thousands) Number of Loans Carrying Value Number of Loans Carrying Value Troubled debt restructurings SBC $ $ SBA Total troubled debt restructurings $ $
Loans, held-for-investment
Schedule of delinquency information of loans	The following table displays delinquency information on loans, held-for-investment as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate: 0 – 500k 0.00 – 24.00 % 10/15/08 – 09/01/46 $ $ $ 500k – 1mm 4.00 – 9.90 03/20/10 – 02/01/38 1mm – 1.5mm 4.50 – 11.00 02/01/17 – 02/05/33 — 1.5mm – 2mm 4.56 – 7.52 08/01/15 – 10/01/26 — 2mm – 2.5mm 4.91 – 7.52 02/01/17 – 04/01/38 — > 2.5mm 4.50 – 11.00 03/01/17 – 06/01/38 — Total fixed-rate $ $ $ Adjustable rate: 0 – 500k 0.00 – 9.75 % 04/27/04 – 09/21/42 $ $ $ 500k – 1mm 2.66 – 8.63 10/28/14 – 03/29/42 1mm – 1.5mm 3.50 – 8.21 04/08/19 – 10/10/41 1.5mm – 2mm 2.62 – 6.25 04/12/17 – 03/01/38 2mm – 2.5mm 3.85 – 6.35 10/19/26 – 08/17/38 — — > 2.5mm 2.14 – 8.32 10/20/09 – 11/18/38 — Total adjustable rate $ $ $ Total $ $ $ Less: General allowance for loan losses Total $ (a) In thousands net of specific allowance for loan losses The following table displays delinquency information on loans, held-for-investment as of December 31, 2015: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate: 0 – 500k 0.00 – 24.00 % 10/15/08 – 02/01/39 $ $ $ 500k – 1mm 3.99 – 9.90 03/10/10 – 05/01/38 1mm – 1.5mm 3.99 – 9.78 11/01/16 – 04/28/35 — — 1.5mm – 2mm 3.99 – 10.25 08/01/15 – 11/01/37 — 2mm – 2.5mm 4.91 – 7.50 06/01/17 – 09/01/25 — — > 2.5mm 3.38 – 12.01 02/01/16- 09/01/25 — — Total fixed-rate $ $ $ Adjustable rate: 0 – 500k 0.00 – 9.75 % 04/27/04 – 06/01/43 $ $ $ 500k – 1mm 2.66 – 8.75 10/28/14 – 12/30/40 1mm – 1.5mm 3.21 – 8.25 04/13/16 – 09/01/38 1.5mm – 2mm 2.62 – 6.00 01/02/11 – 03/01/38 — 2mm – 2.5mm 3.33 – 6.75 10/01/26 – 08/17/38 — — > 2.5mm 1.59 – 7.00 10/20/09 – 11/18/38 Total adjustable rate $ $ $ Total $ $ $ (a)
Schedule of monitoring credit quality of loans	The following table presents quantitative information on the credit quality of loans, held-for-investment as of the consolidated balance sheet dates: Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ $ 20.1 – 40.0% 40.1 – 60.0% 60.1 – 80.0% 80.1 – 100.0% Greater than 100.0% Total $ $ Less: General allowance for loan losses — Total $ $ (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value
Schedule of outstanding amounts and details of carrying amount of acquired loans, held-for-investment	The outstanding carry amount of the acquired loans broken down by ASC 310-30 and ASC 310-10 is as follows: (In Thousands) December 31, 2016 December 31, 2015 Loans, held-for-investment Non-credit impaired loans $ $ Credit impaired loans Total loans, held-for-investment $ $ The following table details the carrying value for loans, held-for-investment at the consolidated balance sheet dates. December 31, 2016 December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Unpaid principal balance $ $ $ $ Non-accretable discount — — Accretable discount Recorded investment Allowance for loan losses Carrying value $ $ $ $
Schedule of accrual and non-accrual state of loans, held for investment	December 31, 2016 December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Accrual Non-accrual — Less: General allowance for loan losses — — — Total $ $ $ $
Loans, held at fair value
Schedule of delinquency information of loans	The following table displays delinquency information on loans, held at fair value as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 6.60 – 6.60 % 06/01/18 – 06/01/18 $ $ — $ — 500k – 1mm 5.70 - 7.02 02/01/18 - 01/01/27 — — 1mm – 1.5mm 5.71 - 7.54 05/01/18 - 12/01/26 — — 1.5mm – 2mm 6.22 - 8.33 01/01/17 - 06/01/19 — — 2mm – 2.5mm 6.23 – 6.23 05/01/24 – 05/01/24 — — > 2.5mm 5.57 - 7.75 01/01/18 - 07/01/19 — — Total $ $ — $ — (a) In thousands The following table displays delinquency information on loans, held at fair value as of December 31, 2015: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 6.60 – 6.60 % 06/01/18 – 06/01/18 $ $ — $ — 500k – 1mm 5.28 – 6.25 06/01/18 – 01/01/26 — — 1mm – 1.5mm 0.58 – 5.91 05/01/20 – 12/01/25 — — 1.5mm – 2mm 4.73 – 8.33 01/01/17 – 01/01/26 — — 2mm – 2.5mm 5.54 – 6.50 11/01/20 – 01/01/26 — — > 2.5mm 4.33 – 7.75 02/01/16 – 01/01/26 — — Total fixed-rate $ $ — $ — Adjustable rate: 1.5mm – 2mm 3.44 – 3.44 % 01/01/36 – 01/01/36 $ $ — $ — 2mm – 2.5mm 3.44 – 3.44 01/01/36 – 01/01/36 — — Total adjustable rate $ $ — $ — Total $ $ — $ — (a) In thousands.
Schedule of monitoring credit quality of loans	Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ — $ 20.1 – 40.0% 40.1 – 60.0% 60.1 – 80.0% 80.1 – 100.0% Greater that 100.0% — Total $ $ (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value
Loans, held for sale, at fair value
Schedule of delinquency information of loans	The following table displays delinquency information on loans, held for sale, at fair value as of December 31, 2016: Number 30-89 Days 90+ Days of Carrying Delinquent Delinquent Loan Balance Loans Interest Rate Maturity Date Value (a) (a) (a) Fixed-rate 0 – 500k 2.63 – 5.50 % 01/01/27 – 01/01/47 $ $ $ 500k – 1mm 3.50 – 6.75 02/01/31 – 11/01/46 — 1mm – 1.5mm 3.56 – 5.13 01/01/24 – 04/01/46 — — 1.5mm – 2mm 3.62 – 3.62 01/01/37 – 01/01/37 — — 2mm – 2.5mm 4.14 – 4.14 01/01/27 – 01/01/27 — — > 2.5mm 3.68 – 4.58 01/01/27 – 01/01/37 — — Total $ $ $ (a) In thousands
Schedule of monitoring credit quality of loans	Loan-to-Value (In Thousands) (a) December 31, 2016 December 31, 2015 0.0 – 20.0% $ $ — 20.1 – 40.0% — 40.1 – 60.0% — 60.1 – 80.0% — 80.1 – 100.0% — Greater that 100.0% — Total $ $ — (a) Loan-to-value is calculated as carry amount as a percentage of current collateral value
Loans, held-for-investment
Schedule of activity of accretable yield of loans, held for investment	For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Non-credit Impaired Non-credit Impaired Credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Loans Beginning accretable yield $ $ $ $ Purchases Sales Accretion Other Transfers Ending accretable yield $ $ $ $
Schedule of impaired loans, held for investment	Carrying value for Carrying value for Total Carrying Unpaid Principal Which There Is A Which There Is No value of Balance of Related Allowance Related Allowance Interest Income (In Thousands) Impaired Loans Impaired Loans for Loan Losses for Loan Losses Recognized December 31, 2016 Non-credit impaired loans $ $ $ $ $ Credit impaired loans — Total December 31, 2016 $ $ $ $ $ December 31, 2015 Non-credit impaired loans $ $ $ $ $ Credit impaired loans — Total December 31, 2015 $ $ $ $ $
Schedule of activity of the allowance for loan losses for loans, held-for investment	For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Non-credit Impaired Non-credit Impaired (In Thousands) Loans Credit Impaired Loans Loans Credit Impaired Loans Beginning balance $ $ $ $ Provision for loan losses Chargeoffs Recoveries — — Ending balance $ $ $ $
Geographical concentration | Loans, held-for-investment
Schedule of concentration risk of loans secured by real estate	Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Texas % % California % % Florida % % New York % % Georgia % % Arizona % % North Carolina % % Virginia % % New Jersey % % Pennsylvania % % Other % % Total % %
Geographical concentration | Loans, held at fair value
Schedule of concentration risk of loans secured by real estate	Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 California % % Florida % % Ohio % % Illinois % % Georgia % % Texas % % New York % % Pennsylvania % % Michigan % % Other — % % Total % %
Geographical concentration | Loans, held for sale, at fair value
Schedule of concentration risk of loans secured by real estate	Geographic Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Louisiana % — % California % — Texas % — Alabama % — Florida % — Kentucky % — Colorado % — Georgia % — North Carolina % — Arkansas % — Other % — Total % — %
Collateral concentration | Loans, held-for-investment
Schedule of concentration risk of loans secured by real estate	Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 SBA % % Retail % % Office % % Multi-family % % Industrial % % Mixed Use % % Lodging % % Other % % Total % % The following table displays the collateral type concentration of the Company’s SBA loans within loans, held-for-investment, on our consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Child Day Care Services % % Hotels Motels & Tourist Courts % % Office of Dentists % % Vets % % Eating Places % % Offices Of Physicians % % Grocery Stores % % Auto % % Accounting Auditing & Bookkeeping % % Gasoline Service Stations % % Other % % Total % %
Collateral concentration | Loans, held at fair value
Schedule of concentration risk of loans secured by real estate	Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Office % % Multi-family % % Retail % % Industrial % % Mixed use % % Total % %
Collateral concentration | Loans, held for sale, at fair value
Schedule of concentration risk of loans secured by real estate	l Collateral Concentration (Unpaid Principal Balance) December 31, 2016 December 31, 2015 Single-family % — % Lodging % — Multi-family % — Total % — %

Real Estate Acquired in Settl43

Real Estate Acquired in Settlement of Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Real Estate Acquired in Settlement of Loans
Summary of the carrying amount of the Company’s real estate holdings	December 31, 2016 SAMC REO SCML ReadyCap (In Thousands) 2013-01, LLC 2015-SBC4 (a) Lending, LLC Total Alabama $ — $ — $ $ California — — Connecticut — — Florida Georgia — — Illinois — — Indiana — — Kansas — — Minnesota — — Missouri — — New Hampshire — — New Jersey — — New York — — North Carolina — — South Carolina — — Tennessee — — Texas — — Total $ $ $ $ (a) Sutherland Commercial Mortgage Loans 2015-SBC4 is a grantor trust securitization completed by the Company in 2015 Other Taxable December 31, 2015 SAMC REO WVMT WVMT SCML ReadyCap REIT (In Thousands) 2013-01, LLC 2011-SBC1 (a) 2011 ‑ SBC3 (b) 2015-SBC4 (c) Lending, LLC Subsidiaries (d) Total California $ $ — $ — $ — $ — $ — $ Connecticut — — — — — Florida — — — Georgia — — — — — Illinois — — — — — Indiana — — — — Kansas — — — — — Kentucky — — — — — Michigan — — — — — Missouri — — — — New Hampshire — — — — — New Jersey — — — — — New York — — — — — North Carolina — — — — Rhode Island — — — — Tennessee — — — — — Texas — — — — Virginia — — — — — Total $ $ $ $ $ $ $ (a) Waterfall Victoria Mortgage Trust 2011-SBC1 is a grantor trust securitization completed by the Company in 2011 (b) Waterfall Victoria Mortgage Trust 2011-SBC3 is a grantor trust securitization completed by the Company in 2011 (c) Sutherland Commercial Mortgage Loans 2015-SBC4 is a grantor trust securitization completed by the Company in 2015 (d) Other TRSs include 435 Clark Rd, LLC

Mortgage Backed Securities (Tab

Mortgage Backed Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Mortgage Backed Securities
Schedule of information about the Company's MBS portfolio	The following table presents certain information about the Company’s MBS portfolio, which are classified as trading securities and carried at fair value, as of December 31, 2016. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses MBS Commercial Loans 02/2034 % $ $ $ $ $ Tax Liens 03/2031 — Total % $ $ $ $ $ (a) Weighted based on current principal balance The following table presents certain information about the Company’s MBS portfolio as of December 31, 2015. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses MBS Commercial Loans 08/2041 % $ $ $ $ $ Tax Liens 02/2031 — — Total % $ $ $ $ $ (a) Weighted based on current principal balance
Schedule of information about the maturity of the Company's MBS portfolio	The following table presents certain information about the maturity of the Company’s MBS portfolio as of December 31, 2016. Weighted Average Interest Principal Amortized Estimated (In Thousands) Rate (a) Balance Cost Fair Value After five years through ten years % $ $ $ After ten years Total % $ $ $ The following table presents certain information about the maturity of the Company’s MBS portfolio as of December 31, 2015. Weighted Average Interest Principal Amortized Estimated (In Thousands) Rate (a) Balance Cost Fair Value After five years through ten years % $ $ $ After ten years Total % $ $ $

Servicing rights and Resident45

Servicing rights and Residential mortgage servicing rights(Tables)	12 Months Ended
	Dec. 31, 2016
Commercial
Schedule of servicing rights	Year Ended December 31, (In Thousands) 2016 2015 Beginning net carrying amount $ $ Additions due to loans sold, servicing retained Amortization Impairment Ending net carrying value $ $
Schedule of future amortization expense for the servicing rights	(In Thousands) December 31, 2016 2017 2018 2019 2020 2021 Thereafter Total $
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	(In Thousands) December 31, 2016 December 31, 2015 Default rate 10% adverse change $ $ 20% adverse change Prepayment rate 10% adverse change 20% adverse change Discount rate 10% adverse change 20% adverse change
Residential
Schedule of servicing rights	(In Thousands) 2016 Beginning fair value $ — Acquired in connection with reverse merger Additions due to loans sold, servicing retained Unrealized gains Ending fair value $
Schedule Of Mortgage Servicing Rights Portfolio	As of December 31, 2016 Unpaid Principal (In Thousands) Amount Fair Value Fannie Mae $ $ Ginnie Mae Freddie Mac Total $ $
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	(In Thousands) December 31, 2016 Cost of service 10% adverse change $ 20% adverse change Prepayment rate 10% adverse change 20% adverse change Discount rate 10% adverse change 20% adverse change

Borrowings Under Credit Facil46

Borrowings Under Credit Facilities and Promissory Note Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Borrowings Under Credit Facilities and Promissory Note Payable
Schedule of characteristics of our credit facilities and promissory note payable	Maximum Facility Size Eligible Assets Maturity Pricing (In Thousands) JPMorgan - Commercial Specifically Identified Assets June 2017 LIBOR + 3.5% and LIBOR + 2.5% $ 250,000 Keybank - Commercial Specifically Identified Assets September 2017 LIBOR + 1.75% 50,000 FCB - Commercial Specifically Identified Assets June 2021 2.75% 9,164 Comerica - Residential Specifically Identified Assets September 2017 LIBOR + 2.25% 75,000 UBS - Residential Specifically Identified Assets November 2017 LIBOR + 2.30% 65,000 Associated Bank - Residential Specifically Identified Assets August 2017 LIBOR + 2.25% 40,000 Community Trust - Residential Specifically Identified Assets September 2017 LIBOR + 2.25% 25,000 Pledged Assets Carrying Value at Carrying Value at December 31, December 31, December 31, December 31, (In Thousands) 2016 2015 2016 2015 JPMorgan - Commercial $ $ $ $ Keybank - Commercial — — FCB - Commercial — — Comerica - Residential — — UBS - Residential — — Associated Bank - Residential — — Community Trust - Residential — — Total $ $ $ $
Schedule of carrying value of the Company’s collateral pledged with respect to borrowings under credit facilities outstanding	The following table presents the carrying value of the Company’s collateral pledged with respect to our borrowings under credit facilities outstanding with our lenders as of December 31, 2016. Weighted Total Average Current (In Thousands for Total Current Principal Number of Weighted Remaining Principal Carrying Balance and Carrying Value) Loans Average Rate Term Balance Value JPMorgan - Commercial % $ $ Keybank - Commercial FCB - Commercial Comerica - Residential UBS - Residential Associated Bank - Residential Community Trust - Residential Total % $ $ The following tables present the carrying value of the Company’s collateral pledged with respect to our borrowings under credit facilities outstanding as of December 31, 2015. Weighted Total Average Current (In Thousands for Total Current Principal Number of Weighted Remaining Principal Carrying Balance and Carrying Value) Loans Average Rate Term Balance Value JPMorgan - Commercial - Total % $ $

Offsetting Assets and Liabili47

Offsetting Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Offsetting Assets and Liabilities
Schedule of effect of offsetting recognized assets	The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets presented in the consolidated balance sheet as of December 31, 2016: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ $ — $ $ — $ — $ Interest rate swaps — — Total $ $ $ $ — $ — $ The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets presented in the consolidated balance sheet as of December 31, 2015: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit Default Swaps $ $ — $ $ — $ — $ Total $ $ — $ $ — $ — $
Schedule of effect of offsetting recognized liabilities	The following table provides disclosure regarding the effect of offsetting of the Company’s recognized liabilities presented in the consolidated balance sheet as of December 31, 2016: Gross Liabilities Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Liabilities Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ $ — $ $ — $ $ — Borrowings under credit facilities — — Promissory note payable — — — Borrowings under repurchase agreements — — — Total $ $ — $ $ $ $ — The following table provides disclosure regarding the effect of offsetting of the Company’s recognized liabilities presented in the consolidated balance sheet as of December 31, 2015: Liabilities Gross Presented in Gross Amounts Not Offset in the Consolidated Gross Amounts the Balance Sheets Amounts of Offset in the Consolidated Cash Recognized Consolidated Balance Financial Collateral (In Thousands) Liabilities Balance Sheets Sheets Instruments Paid Net Amount Interest Rate Swaps $ $ — $ $ — $ $ — Borrowings under repurchase agreements — — Borrowings under credit facilities — — — Total $ $ — $ $ $ $ —

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Derivative Instruments
Summarized the Company’s derivatives	The following table summarized the Company’s derivatives as of and for the year ended December 31, 2016. As of December 31, 2016 Asset Liability Notional Derivatives Derivatives (In Thousands) Primary Underlying Risk Amount Fair Value Fair Value Credit Default Swaps Credit Risk $ $ $ — Interest Rate Swaps Interest rate risk Interest rate lock commitments (IRLCs) Interest rate risk — Total $ $ $ Year Ended December 31, 2016 Net Change in Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Credit Default Swaps $ — $ Interest Rate Swaps Interest rate lock commitments (IRLCs) — Total $ $ As of December 31, 2015, there was one open credit default swap contract and nine open interest rate swap contracts with counterparties. The following table summarized the Company’s derivatives as of December 31, 2015 and for the year ended December 31, 2015. As of December 31, 2015 Asset Liability Notional Derivatives Derivatives (In Thousands) Primary Underlying Risk Amount Fair Value Fair Value Credit Default Swaps Credit Risk $ $ $ – Interest Rate Swaps Interest rate risk – Total $ $ $ Year Ended December 31, 2015 Net Change in Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Credit Default Swaps $ $ Interest Rate Swaps Total $ $

Borrowings Under Repurchase A49

Borrowings Under Repurchase Agreements (Tables)	12 Months Ended
	Dec. 31, 2016
Borrowings Under Repurchase Agreements
Schedule of repurchase agreements including certain characteristics and maturity information	The following table presents certain characteristics of our repurchase agreements at December 31, 2016: Weighted Weighted Repurchase Average Average Agreement Borrowing Remaining (In Thousands) Borrowings Rate Maturity (days) Securities financed: Short term investments $ % Loans, held-for-investment / Loans, held at fair value % Mortgage backed securities % Total securities financed $ % The following table presents certain characteristics of our repurchase agreements at December 31, 2015: Weighted Weighted Repurchase Average Average Agreement Borrowing Remaining (In Thousands) Borrowings Rate Maturity (days) Securities financed: Short term investments $ % Loans, held-for-investment / Loans, held at fair value % Mortgage backed securities % Total securities financed $ %
Schedule of contractual maturity information about borrowings under repurchase agreements	December 31, 2016 December 31, 2015 Weighted Weighted Balance Average Balance Average Time Until Contractual Maturity (In Thousands) Interest Rate (In Thousands) Interest Rate Within 30 days $ % $ % Over 30 days to 60 days % — — % Over 60 days to 90 days % % Over 90 days to 120 days — — — — Over 120 days to 360 days % % Over 360 days — — % Total $ % $ %
Schedule of carry value or fair value of collateral positions pledged with respect to borrowings under repurchase agreements	The following table presents the carry value or fair value of collateral positions the Company pledged with respect to the Company’s borrowings under repurchase agreements at December 31, 2016: Fair Value of Assets Assets Pledged Pledged at Amortized Accrued and Accrued (In Thousands) Fair Value Cost Interest Interest Collateral pledged: Short term investments $ $ $ — $ Loans, held-for-investment / Loans, held at fair value Mortgage backed securities Retained interest in assets of consolidated VIEs Total collateral pledged $ $ $ $ The following table presents the carry value or fair value of collateral positions the Company pledged with respect to the Company’s borrowings under repurchase agreements at December 31, 2015: Fair Value of Assets Assets Pledged Pledged at Amortized Accrued and Accrued (In Thousands) Fair Value Cost Interest Interest Collateral pledged: Short term investments $ $ $ — $ Loans, held-for-investment / Loans, held at fair value Mortgage backed securities Retained interest in assets of consolidated VIEs Total collateral pledged $ $ $ $

Guaranteed Loan Financing (Tabl

Guaranteed Loan Financing (Tables)	12 Months Ended
	Dec. 31, 2016
Guaranteed Loan Financing
Schedule of guaranteed loan financing and the related interest rates and maturity dates	Weighted Range of Average Interest Range of (In Thousands) Interest Rate Rates Maturities (Years) Ending Balance December 31, 2016 % 3.50 – 8.75 % 2017 - 2038 $ December 31, 2015 % 1.03 – 6.99 % 2016 - 2038 $
Summary of contractual maturities of total guaranteed loan financing outstanding	(In Thousands) December 31, 2016 2017 2018 2019 2020 2021 Thereafter Total $

Repair and Denial Reserve (Tabl

Repair and Denial Reserve (Tables)	12 Months Ended
	Dec. 31, 2016
Repair and Denial Reserve.
Schedule of repair and denial reserve activity	Year Ended Year Ended (In Thousands) December 31, 2016 December 31, 2015 Beginning balance $ $ Release of repair and denial reserve (a) Ending balance $ $ The release of the repair and denial reserve is located in other income on the consolidated statements of income

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes
Income tax provision	Year Ended December 31, (In Thousands) 2016 2015 2014 Current Federal income tax $ $ $ State and local income tax Net current tax provision Deferred Federal income tax State and local income tax Valuation allowance Net deferred tax provision Total income tax provision $ $ $
Income tax reconciliation	Year Ended December 31, (In Thousands) 2016 2015 2014 U.S. statutory tax $ $ $ State and local income tax Income attributable to REIT Income attributable to Non-controlling interests Nondeductible Other Valuation allowance Effective income tax $ $ $
Table showing temporary differences with respect to deferred tax assets and liabilities	(In Thousands) December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carryforwards $ $ Unrealized losses Impairment and reserves Accruals Depreciation/amortization Goodwill — Compensation — Intangibles — Other — Total deferred tax assets Deferred tax liabilities: Loan / servicing rights balance Derivative instruments — Other taxable temporary difference Total deferred tax liabilities Valuation allowance Net deferred tax assets $ $

Other Asset and Other Liabili53

Other Asset and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Other Asset and Other Liabilities
Schedule of other assets and other liabilities	(In Thousands) December 31, 2016 December 31, 2015 Other assets: Due from servicers Receivable from third parties Accrued interest Deferred financing costs Fixed assets Prepaid taxes — Deferred tax asset Prepaid technology expense Prepaid insurance expense Other Total other assets $ $ Accounts payable and other accrued liabilities: Accrued salaries, wages and commissions $ $ Servicing principal and interest payable Repair and denial reserve Liability under subservicing agreements Unapplied cash Accrued interest payable Payable to related parties Accrued professional fees Loan indemnification reserve — Accrued tax liability — Liability under participation agreements Deferred tax liability — Accounts payable on liability under participation agreements Cash held as collateral Other Total accounts payable and other accrued liabilities $ $
Schedule of Intangible assets	Carrying Value Carrying Value (In Thousands) December 31, 2016 December 31, 2015 Estimated Useful Life Trade name $ $ — 15 years Favorable lease — 12 years SBA license Indefinite life Total Intangible Assets $ $
Schedule of other operating expenses	(In Thousands) December 31, 2016 Trade name $ Favorable lease Total Accumulated Amortization $
Amortization expense related to the intangible assets	(In Thousands) December 31, 2016 2017 $ 2018 2019 2020 2021

Other Income and Operating Ex54

Other Income and Operating Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Other Income and Operating Expenses
Schedule of other income and operating expenses	For the Year Ended December 31, (In Thousands) 2016 2015 2014 Other income Origination income $ $ $ Release of repair and denial reserve Other Total other income $ $ $ Other operating expenses Origination costs $ $ $ Technology expense Charge off of real estate acquired in settlement of loans Rent expense Recruiting, training and travel expenses Acquisition costs Depreciation Marketing expense Insurance expense Other Total other operating expenses $ $ $

Use of Special Purpose Entiti55

Use of Special Purpose Entities (Tables) - VIEs	12 Months Ended
	Dec. 31, 2016
Summary of information on securitized debt obligations of consolidated VIEs	December 31, 2016 December 31, 2015 Current Weighted Current Weighted Principal Carrying Average Principal Carrying Average (In Thousands) Balance value Interest Rate Balance value Interest Rate Waterfall Victoria Mortgage Trust 2011-SBC2 $ $ % $ $ % Sutherland Commercial Mortgage Loans 2015-SBC4 ReadyCap Commercial Mortgage Trust 2014-1 ReadyCap Commercial Mortgage Trust 2015-2 ReadyCap Commercial Mortgage Trust 2016-3 — — — ReadyCap Lending Small Business Trust 2015-1 Total $ $ % $ $ %
Consolidated balance sheets of VIEs	(In Thousands) December 31, 2016 December 31, 2015 Assets: Cash and cash equivalents $ $ Restricted cash Loans, held-for-investment (net of allowances for loan losses of $3,409 at December 31, 2016 and $4,867 at December 31, 2015) Real estate acquired in settlement of loans Accrued interest Due from servicers Total assets $ $ Liabilities: Securitized debt obligations of consolidated VIEs $ $ Accounts payable and other accrued liabilities Total liabilities Equity $ $
Consolidated statements of income of VIEs	Year Ended December 31, (In Thousands) 2016 2015 2014 Interest income Loans, held-for-investment $ $ $ Total interest income Interest expense Securitized debt obligations Total interest expense Net interest income before provision for loan losses Provision for loan losses Net interest income after provision for loan losses Other income (expense) Other income Loan servicing expense Professional fees — Operating expenses — Total other income (expense) Realized gain (loss) Loans, held-for-investment Real estate acquired in settlement of loans Securitized debt obligations Total realized gain (loss) Net Income $ $ $

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders’ Equity
Schedule of information with respect to shares of preferred stock issued through private offering	Share Issue Date (In Thousands, Number Par Value Per Value of Additional Non ‑ Controlling except share data) of Shares per Share Shares Issued Paid-in-Capital Interests Net Proceeds January 30, 2014 – Preferred Offering $ $ $ $ — $
Schedule of cash dividends declared by the Board of Directors	The following table presents cash dividends declared by our board of directors on our common stock from our inception on November 26, 2013 through December 31, 2016: Dividend per Declaration Date Record Date Payment Date Share (a) May 23, 2014 June 5, 2014 June 17, 2014 $ August 28, 2014 September 10, 2014 September 24, 2014 $ November 13, 2014 November 26, 2014 December 10, 2014 $ December 23, 2014 December 31, 2014 January 21, 2015 $ May 27, 2015 June 10, 2015 June 24, 2015 $ August 21, 2015 August 28, 2015 September 11, 2015 $ November 13, 2015 November 27, 2015 December 11, 2015 $ December 31, 2015 December 31, 2015 January 29, 2016 $ May 20, 2016 June 3, 2016 June 17, 2016 $ August 23, 2016 September 2, 2016 September 16, 2016 $ October 11, 2016 October 14, 2016 October 25, 2016 $ December 21, 2016 December 30, 2016 January 27, 2017 $ (a) Retrospectively adjusted for the equivalent number of shares after reverse acquisition

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings per Common Share
Schedule of reconciliation of both net income and the number of common shares	Year Ended December 31, (In Thousands) 2016 2015 2014 Basic and diluted earnings per common share: Net income from continued operations $ $ $ Income (loss) from discontinued operations Less: Non-controlling interest Net income (loss) allocated to common shareholders $ $ $ Basic and diluted weighted average common shares outstanding Earnings (loss) per share Continuing operations $ $ $ Discontinued operations $ $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting
Schedule of segment reporting information	Reportable segments for the year ended December 31, 2016 are summarized in the below table. SBC SBA Originations, Residential Loan Conventional Acquisitions, Mortgage (In Thousands) Acquisitions Originations and Servicing Banking Consolidated Interest income Loans, held-for-investment $ $ $ $ — $ Loans, held at fair value — — Loans, held for sale, at fair value — Mortgage backed securities, at fair value — — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities Promissory note payable — — — Securitized debt obligations — — Borrowings under repurchase agreements — — Guaranteed loan financing — — — Exchangeable senior notes — — — Total interest expense $ $ $ $ $ Net interest income before provision for loan losses $ $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ $ Other income (expense) Other income (expense) $ $ $ $ $ Servicing income Gain on bargain purchase — — — Employee compensation and benefits Allocated employee compensation and benefits from related party — Professional fees Management fees – related party Loan servicing expense Other operating expenses Total other income (expense) $ $ $ $ $ Net realized (loss) gain on financial instruments Net unrealized gain on financial instruments — Net income before income tax provisions $ $ $ $ $ Provisions for income taxes Net income $ $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $ $ Reportable segments for the year ended December 31, 2015 are summarized in the below table. SBC SBA Originations, Loan Conventional Acquisitions, (In Thousands) Acquisitions Originations and Servicing Consolidated Interest income Loans, held-for-investment $ $ $ $ Loans, held at fair value Loans, held for sale, at fair value — — — — Mortgage backed securities, at fair value — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities — Securitized debt obligations of consolidated VIEs — Borrowings under repurchase agreements — Guaranteed loan financing — — Total interest expense $ $ $ $ Net interest income before provision for loan losses $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ Other income (expense) Other income $ $ $ $ Servicing income Employee compensation and benefits — Allocated employee compensation and benefits from related party Professional fees Management fees – related party Incentive fees – related party Loan servicing (expense) income Other operating expenses Total other income (expense) $ $ $ $ Net realized gain (loss) on financial instruments Net unrealized (loss) gain on financial instruments — Net income before income tax provisions $ $ $ $ Provisions for income taxes — Net income from continuing operations $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $ Reportable segments for the year ended December 31, 2014 are summarized in the below table. SBC SBA Originations, Loan Conventional Acquisitions, (In Thousands) Acquisitions Originations and Servicing Consolidated Interest income Loans, held-for-investment $ $ $ $ Loans, held at fair value — Loans, held for sale, at fair value — — — — Mortgage backed securities, at fair value — — Total interest income $ $ $ $ Interest expense Borrowings under credit facilities Securitized debt obligations of consolidated VIEs — — Borrowings under repurchase agreements — Guaranteed loan financing — — Total interest expense $ $ $ $ Net interest income before provision for loan losses $ $ $ $ Provision for loan losses — Net interest income after provision for loan losses $ $ $ $ Other income (expense) Other income $ $ $ $ Servicing income — Employee compensation and benefits — Allocated employee compensation and benefits from related party Professional fees Management fees – related party Incentive fees – related party — — — — Loan servicing expense Operating expenses Total other income (expense) $ $ $ $ Net realized gain (loss) on financial instruments Net unrealized gain on financial instruments — Net income (loss) before income tax provisions $ $ $ $ Provisions for income taxes — — Net income (loss) from continuing operations $ $ $ $ Loss from discontinued operations Net income $ Less: Net income attributable to non-controlling interests Net income attributable to Sutherland Asset Management Corporation $ Total Assets $ $ $ $

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2016
Discontinued Operations
Schedule of reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued segment	The following is a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued segment that are separately presented on the consolidated balance sheets. (In Thousands) December 31, 2016 December 31, 2015 Assets: Cash and cash equivalents $ — $ Other assets: Sales commission receivable — Fixed assets — Prepaid insurance expense — Security deposit — Other — Goodwill — Total Assets $ — $ Liabilities: Accrued salaries, wages and commissions — Accounts payable and other accrued liabilities Contingent liabilities related to business combinations — Other — Total Liabilities $ — $ The primary components of discontinued operations are detailed in the table below: For the Year Ended December 31, (In Thousands) 2016 2015 2014 Other income (expense) Commission income $ $ $ Property management income Other Total other income Employee compensation and benefits Professional fees Management fees – related party — — Operating expenses Acquisition costs — — Commission expense Technology expense Rent expense Tax expense Recruiting, training, and travel expenses Marketing expense Insurance expense — — Other Total other operating expenses $ $ $ Loss on sale — Loss before income tax benefit Income tax benefit — Loss on discontinued operations presented on the statements of income $ $ $

Quarterly Financial Data (Table

Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data (Unaudited)
Summary of quarterly financial data	March 31 June 30 September 30 December 31 2016 Interest income $ $ $ $ Net interest income after provision for loan losses $ $ $ $ Other income (expense) $ $ $ $ Net income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Sutherland Asset Management Corporation $ $ $ $ Earnings per share - Basic and diluted (1) $ $ $ $ 2015 Interest income $ $ $ $ Net interest income after provision for loan losses $ $ $ $ Other income (expense) $ $ $ $ Net income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Sutherland Asset Management Corporation $ $ $ $ Earnings per share - Basic and diluted (1) $ $ $ $ (1) Retroactively adjusted for the equivalent number of shares after reverse acquisition using an exchange rate of 0.8356

Organization (Details)

Organization (Details) - item	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Ownership percentage in operating partnership	92.90%	91.90%
Number of reportable segments	4
Minimum
Percentage of taxable income distributed in the form of qualifying distributions	90.00%

Basis of Presentation (Details)

Basis of Presentation (Details)	12 Months Ended
	Dec. 31, 2016
Conversion ratio	0.8356
Operating Partnership | Limited Partners | Partnership Units
Conversion ratio	0.8356
Sutherland | Common Stock
Conversion ratio	0.8356

Summary of Significant Accoun63

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)classitemshares	Dec. 31, 2015USD ($)shares	Dec. 31, 2014shares
Amount in money market funds	$ 600	$ 600
Number of days loans must be delinquent to be placed on nonaccrual status	90 days
Number of separate classes of servicing rights used for risk management purposes | class	2
Number of SBA licenses included in intangible assets | item	1
Due from servicers	$ 54,700	$ 20,300
Number of securitization transactions since 2011 | item	8
Number of repurchase agreements accounted for as components of linked transactions | item	0
Diluted securities outstanding | shares	0	0	0
Unrecognized accrued taxes, interest and penalties	$ 0
The number of consecutive months contractual payments that must be received on a loan in non-accrual status before resuming recognition of interest income	3 months
Borrowings under credit facilities | Maximum
Maturity period	2 years
Promissory note | Maximum
Maturity period	5 years
Restricted cash
Cash collateral receivable	$ 1,700	$ 5,300
Assets of consolidated VIEs
Due from servicers	$ 27,700	$ 6,100

Recently Issued Accounting Pr64

Recently Issued Accounting Pronouncements (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
Share-based payments
Share-based payments	$ 0

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ / shares in Units, $ in Millions	Oct. 31, 2016USD ($)$ / sharesshares	Oct. 30, 2016shares	Dec. 31, 2016
Business Combinations
Conversion ratio			0.8356
ZAIS Merger
Business Combinations
Purchase price per share | $ / shares	$ 15.37
Conversion ratio	0.8356
ZAIS Merger | Minimum
Business Combinations
Stockholders' equity base of combined company	$ 550
ZAIS Merger | Pre-merger Sutherland Asset Management Shareholders
Business Combinations
Common stock shares issued | shares	25,870,420
Ownership interest held by former members of subsidiary (as a percent)	86.00%
ZAIS Merger | Pre-merger Zais Financial Shareholders
Business Combinations
Ownership interest after merger (as a percent)	14.00%
OP Units | Pre-merger Operating Partnership Unit Holders
Business Combinations
Common stock shares issued | shares	2,288,663
ZAIS Financial Corp
Business Combinations
Shares repurchased | shares		4,185,478
Purchase price per share | $ / shares	$ 15.37
Percentage of adjusted ZAIS book value	95.00%
Pro-rata share of cost relating to termination of existing advisory agreement	$ 8
Pro-rata share of intangible assets adjustment	4
ZAIS Financial Corp | Maximum
Business Combinations
Cash tender to existing shareholders	$ 64.3

Business Combinations - Fair va

Business Combinations - Fair value of assets and liabilities assumed (Details) - ZAIS Merger $ in Thousands	Oct. 31, 2016USD ($)
Assets:
Cash and cash equivalents	$ 34,932
Short term investments	69,992
Restricted cash	4,522
Loans, held-for-investment, at cost	1,496
Loans, held for sale, at fair value	189,197
Mortgage backed securities, at fair value	97,936
Loans eligible for repurchase from GNMA	79,530
Residential mortgage servicing rights, at fair value	51,302
Derivative assets, at fair value	2,699
Other assets	7,741
Identifiable Intangibles	2,703
Total assets	542,050
Borrowings under credit facilities	142,463
Borrowings under repurchase agreements	153,105
Exchangeable senior notes	57,500
Contingent consideration	14,422
Accounts payable and other liabilities	16,667
Liability for loans eligible for repurchase from GNMA	79,530
Total liabilities	463,687
Fair Value of Net Assets Acquired	$ 78,363

Business Combinations - Bargain

Business Combinations - Bargain purchase gain (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 31, 2016	Dec. 31, 2016
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
Bargain purchase gain		$ 15,218
ZAIS Merger
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
ZAIS closing share price on October 31, 2016	$ 13.40
ZAIS Common shares and OP units acquired	4,712,322
Fair value of consideration transferred	$ 63,145
Fair Value of Net Asset Acquired	78,363
Bargain purchase gain	$ 15,218
Acquisition-related costs		$ 4,200

Business Combinations - Schedul

Business Combinations - Schedule of revenue and earnings from the net assets acquired (Details) - ZAIS Merger $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Business Combinations
Interest income	$ 1,054
Interest expense	(681)
Other income (expense)	(4,482)
Realized gain (loss)	6,036
Unrealized gain (loss)	4,902
Net income	$ 6,829

Business Combinations - Sched69

Business Combinations - Schedule of pro-forma revenue and earnings (unaudited) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Selected Financial Data
Interest income	$ 145,767	$ 161,174
Interest expense	(66,372)	(57,551)
Provision for loan losses	(7,713)	(19,643)
Other income (expense)	(37,641)	(27,760)
Realized gain (loss)	14,030	46
Unrealized gain (loss)	5,772	(3,817)
Net income from continuing operations before income taxes	53,843	$ 52,449
Non-recurring pro forma transaction costs	4,600
Gain on bargain purchase	$ 15,218

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair value
Fair value option of mortgage loans	$ 263,400	$ 155,100
Assets:
Cash held in money market funds	632	631
Short term investments	319,984	249,989
Loans, held for sale, at fair value	181,797
Loans, held at fair value	81,592	155,134
Mortgage backed securities, at fair value	32,391	213,504
Derivative instruments, at fair value	5,785	723
Residential mortgage servicing rights, at fair value	61,376
Total assets	683,557	619,981
Liabilities:
Derivative instruments, at fair value	643	1,499
Contingent consideration	14,487
Total liabilities	15,130	1,499
Recurring basis | Level 1
Assets:
Cash held in money market funds	632	631
Short term investments	319,984	249,989
Total assets	320,616	250,620
Recurring basis | Level 2
Assets:
Loans, held for sale, at fair value	164,485
Derivative instruments, at fair value	3,095	723
Total assets	167,580	723
Liabilities:
Derivative instruments, at fair value	643	1,499
Total liabilities	643	1,499
Recurring basis | Level 3
Assets:
Loans, held for sale, at fair value	17,312
Loans, held at fair value	81,592	155,134
Mortgage backed securities, at fair value	32,391	213,504
Derivative instruments, at fair value	2,690
Residential mortgage servicing rights, at fair value	61,376
Total assets	195,361	$ 368,638
Liabilities:
Contingent consideration	14,487
Total liabilities	$ 14,487

Fair Value Measurements - Chang

Fair Value Measurements - Changes in FV of MBS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Changes in fair value of assets
Mortgage servicing rights resulting from mortgage loan sales	$ 2,960	$ 1,024
Loans, held for sale at fair value	181,797
Loans, held for sale, at fair value
Changes in fair value of assets
Loans, held for sale at fair value		0
Level 3 | Loans, held at fair value
Changes in fair value of assets
Beginning Balance	155,134	170,014
Realized gains (losses), net	6	1,990
Unrealized gains (losses), net	4,131	9,327
Originations	147,823	346,442
Sales	(4,776)	(135,902)
Principal payments	(34,895)	(10,926)
Transfers to loans, held for sale, at fair value	(11,499)
Transfer to loans, held-for-investment	(174,332)	(225,811)
Ending Balance	81,592	155,134
Total change in unrealized gain (loss)	1,300	3,000
Level 3 | Loans, held for sale, at fair value
Changes in fair value of assets
Realized gains (losses), net	5,260
Creation of mortgage servicing rights included in realized gains, net	(2,009)
Unrealized gains (losses), net	(3,200)
Originations	257,993
Sales	(255,431)
Transfer from loans, held at fair value	11,499
Ending Balance	17,312
Total change in unrealized gain (loss)	3,200
Level 3 | MBS
Changes in fair value of assets
Beginning Balance	213,504	158,422
Accreted discount (amortized premium), net	201	(78)
Realized gains (losses), net	(3,068)	(314)
Unrealized gains (losses), net	3,680	(4,536)
Purchases	17,388	77,918
Acquired in connection with reverse merger	97,936
Sales / Principal payments	(297,250)	(17,908)
Ending Balance	32,391	213,504
Total change in unrealized gain (loss)	0	$ (4,500)
Level 3 | Residential MRSs
Changes in fair value of assets
Unrealized gains (losses), net	6,917
Acquired in connection with reverse merger	51,302
Mortgage servicing rights resulting from mortgage loan sales	3,157
Ending Balance	61,376
Total change in unrealized gain (loss)	6,900
Level 3 | Derivatives
Changes in fair value of assets
Unrealized gains (losses), net	(808)
Acquired in connection with reverse merger	3,498
Ending Balance	2,690
Level 3 | Contingent Consideration
Changes in fair value of liabilities
Acquired in connection with reverse merger	14,422
Amortization	65
Ending Balance	$ 14,487

Fair Value Measurements - Valua

Fair Value Measurements - Valuation and Inputs, at FV (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value inputs, quantitative information
Asset, fair value	$ 683,557	$ 619,981
Liabilities, fair value	15,130	1,499
Recurring basis | Level 3
Fair value inputs, quantitative information
Asset, fair value	195,361	368,638
Liabilities, fair value	14,487
Loans, held at fair value | Recurring basis | Level 3 | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value	$ 81,592	$ 155,134
Loans, held at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Minimum
Fair value inputs, quantitative information
Price Range	$ 98.47	$ 98.09
Loans, held at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Maximum
Fair value inputs, quantitative information
Price Range	105	105
Loans, held at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 103.16	$ 103.21
Loans, held for sale, at fair value | Recurring basis | Level 3 | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value	$ 17,312
Loans, held for sale, at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Minimum
Fair value inputs, quantitative information
Price Range	$ 100.04
Loans, held for sale, at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Maximum
Fair value inputs, quantitative information
Price Range	102.97
Loans, held for sale, at fair value | Recurring basis | Level 3 | Discounted Cash Flow | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 100.87
MBS | Recurring basis | Level 3 | Broker Quotes
Fair value inputs, quantitative information
Asset, fair value	$ 29,883	$ 210,892
MBS | Recurring basis | Level 3 | Broker Quotes | Minimum
Fair value inputs, quantitative information
Price Range	$ 73	$ 22.55
MBS | Recurring basis | Level 3 | Broker Quotes | Maximum
Fair value inputs, quantitative information
Price Range	101	102.50
MBS | Recurring basis | Level 3 | Broker Quotes | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 73.61	$ 100.61
MBS | Recurring basis | Level 3 | Transaction Price
Fair value inputs, quantitative information
Asset, fair value	$ 2,508	$ 2,612
MBS | Recurring basis | Level 3 | Transaction Price | Minimum
Fair value inputs, quantitative information
Price Range	$ 99	$ 100
MBS | Recurring basis | Level 3 | Transaction Price | Maximum
Fair value inputs, quantitative information
Price Range	99	100
MBS | Recurring basis | Level 3 | Transaction Price | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 99	$ 100
Residential MRSs | Recurring basis | Level 3 | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value	$ 61,376
Contingent Consideration | Recurring basis | Level 3 | Transaction Price
Fair value inputs, quantitative information
Liabilities, fair value	$ 14,487

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities, Not at FV (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Servicing rights	$ 22,478	$ 27,250	$ 36,725
Total assets	683,557	619,981
Liabilities:
Promissory note payable	7,378
Total liabilities	15,130	1,499
Carrying Value
Assets:
Loans, held-for-investment	1,585,088	1,560,938
Servicing rights	22,478	27,250
Other assets	73,726	24,862
Total assets	1,681,292	1,613,050
Liabilities:
Borrowings under credit facilities	326,610	175,306
Promissory note payable	7,378
Securitized debt obligations of consolidated VIEs	492,942	461,522
Guaranteed loan financing	390,555	499,187
Liabilities under participation agreements	1,735	3,700
Borrowings under repurchase agreements	600,852	644,137
Accounts payable and other accrued liabilities	3,762	2,305
Total liabilities	1,823,834	1,786,157
Fair Value | Level 3
Assets:
Loans, held-for-investment	1,639,982	1,651,846
Servicing rights	23,470	27,260
Other assets	73,726	24,862
Total assets	1,737,178	1,703,968
Liabilities:
Borrowings under credit facilities	326,610	175,306
Promissory note payable	7,378
Securitized debt obligations of consolidated VIEs	483,381	455,616
Guaranteed loan financing	409,751	524,368
Liabilities under participation agreements	2,065	4,285
Borrowings under repurchase agreements	600,852	644,137
Accounts payable and other accrued liabilities	3,762	2,305
Total liabilities	$ 1,833,799	$ 1,806,017

Fair Value Measurements - Val74

Fair Value Measurements - Valuation and Inputs, Not at FV (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)item$ / shares	Dec. 31, 2015USD ($)item$ / shares	Dec. 31, 2014USD ($)
Fair value inputs, quantitative information
Number of standard deviations from the mean value included in the price range | item	2	2
Percentage of price data points covered by the price range	95.00%	95.00%
Valuation allowance for real estate acquired in settlement of loans | $	$ 6,900	$ 2,600
Assets:
Servicing rights | $	22,478	27,250	$ 36,725
Discounted Cash Flow | Level 3 | Guaranteed loan financing
Liabilities:
Guaranteed loan financing | $	$ 409,751	$ 524,368
Discounted Cash Flow | Level 3 | Guaranteed loan financing | Minimum
Fair value inputs, quantitative information
Price Range	$ 96.49	$ 96.20
Discounted Cash Flow | Level 3 | Guaranteed loan financing | Maximum
Fair value inputs, quantitative information
Price Range	110.88	111.31
Discounted Cash Flow | Level 3 | Guaranteed loan financing | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 103.24	$ 103.35
Discounted Cash Flow | Level 3 | Liabilities under participation agreements
Liabilities:
Liabilities under participation agreements | $	$ 2,065	$ 4,285
Discounted Cash Flow | Level 3 | Liabilities under participation agreements | Minimum
Fair value inputs, quantitative information
Price Range	$ 27.02	$ 20.10
Discounted Cash Flow | Level 3 | Liabilities under participation agreements | Maximum
Fair value inputs, quantitative information
Price Range	140.54	136.30
Discounted Cash Flow | Level 3 | Liabilities under participation agreements | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 60.87	$ 80.33
Discounted Cash Flow | Level 3 | Loans, held-for-investment
Assets:
Loans, held-for-investment | $	$ 1,639,982	$ 1,651,846
Discounted Cash Flow | Level 3 | Loans, held-for-investment | Minimum
Fair value inputs, quantitative information
Price Range	$ 40.72	$ 33.18
Discounted Cash Flow | Level 3 | Loans, held-for-investment | Maximum
Fair value inputs, quantitative information
Price Range	137.12	139.30
Discounted Cash Flow | Level 3 | Loans, held-for-investment | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 95.99	$ 97.88
Discounted Cash Flow | Level 3 | Servicing rights
Assets:
Servicing rights | $	$ 23,470	$ 27,260
Broker Quotes | Level 3 | Securitized debt obligations, of consolidated VIEs
Liabilities:
Securitized debt obligations of consolidated VIEs | $	$ 483,381	$ 455,616
Broker Quotes | Level 3 | Securitized debt obligations, of consolidated VIEs | Minimum
Fair value inputs, quantitative information
Price Range	$ 68.92	$ 81.04
Broker Quotes | Level 3 | Securitized debt obligations, of consolidated VIEs | Maximum
Fair value inputs, quantitative information
Price Range	103.21	102
Broker Quotes | Level 3 | Securitized debt obligations, of consolidated VIEs | Weighted Average
Fair value inputs, quantitative information
Price Range	$ 95.85	$ 98.05
Transaction Price | Level 3 | Borrowings under credit facilities
Liabilities:
Borrowings under credit facilities | $	$ 326,610	$ 175,306
Transaction Price | Level 3 | Borrowings under repurchase agreements
Liabilities:
Borrowings under repurchase agreements | $	$ 600,852	$ 644,137

Loans - Originated and Acquired

Loans - Originated and Acquired (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Originated and acquired loans
Originated amount in unpaid principal balance	$ 936.7	$ 452.3
Acquired amount in unpaid principal balance	$ 286.3	$ 181

Loans - Classification and Unpa

Loans - Classification and Unpaid Principal Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Unpaid principal balance
Loans, Held-for-investment - Unpaid principal	$ 1,708,543	$ 1,730,557
Loans, Held for sale, at fair value	178,907
Loans, Held at fair value	79,089	150,374
Total loans	1,966,539	1,880,931
Loan Acquisitions
Unpaid principal balance
Loans, Held-for-investment - Unpaid principal	1,034,575	905,916
Loans, Held for sale, at fair value	36,733
Loans, Held at fair value	14,164	31,944
Total loans	1,085,472	937,860
SBC Conventional Originations
Unpaid principal balance
Loans, Held-for-investment - Unpaid principal	56,292	37,025
Loans, Held for sale, at fair value	17,162
Loans, Held at fair value	64,925	118,430
Total loans	138,379	155,455
SBA Loan Origination, Acquisition, and Servicing
Unpaid principal balance
Loans, Held-for-investment - Unpaid principal	615,263	787,616
Total loans	615,263	$ 787,616
Residential Mortgage Banking
Unpaid principal balance
Loans, Held-for-investment - Unpaid principal	2,413
Loans, Held for sale, at fair value	125,012
Total loans	$ 127,425

Loans - Classification and Carr

Loans - Classification and Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Carrying value
Loans, held-for-investment - Carrying amount	$ 1,585,088	$ 1,560,938
Loans, held for sale at fair value	181,797
Loans, held at fair value	81,592	155,134
Total loans	1,848,477	1,716,072
Loan Acquisitions
Carrying value
Loans, held-for-investment - Carrying amount	983,558	836,244
Loans, held for sale at fair value	36,713
Loans, held at fair value	14,407	32,655
Total loans	1,034,678	868,899
SBC Conventional Originations
Carrying value
Loans, held-for-investment - Carrying amount	56,367	37,979
Loans, held for sale at fair value	17,311
Loans, held at fair value	67,185	122,479
Total loans	140,863	160,458
SBA Loan Origination, Acquisition, and Servicing
Carrying value
Loans, held-for-investment - Carrying amount	542,925	686,715
Total loans	542,925	$ 686,715
Residential Mortgage Banking
Carrying value
Loans, held-for-investment - Carrying amount	2,238
Loans, held for sale at fair value	127,773
Total loans	$ 130,011

Loans - Geographic and Collater

Loans - Geographic and Collateral Concentration (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Geographical concentration | Loans, held-for-investment
Concentration risk
Percentage of loan	100.00%	100.00%
Geographical concentration | Loans, held-for-investment | TEXAS
Concentration risk
Percentage of loan	14.00%	13.60%
Geographical concentration | Loans, held-for-investment | CALIFORNIA
Concentration risk
Percentage of loan	12.80%	10.80%
Geographical concentration | Loans, held-for-investment | FLORIDA
Concentration risk
Percentage of loan	9.60%	9.90%
Geographical concentration | Loans, held-for-investment | NEW YORK
Concentration risk
Percentage of loan	6.90%	8.00%
Geographical concentration | Loans, held-for-investment | ARIZONA
Concentration risk
Percentage of loan	5.40%	6.10%
Geographical concentration | Loans, held-for-investment | GEORGIA
Concentration risk
Percentage of loan	5.60%	5.10%
Geographical concentration | Loans, held-for-investment | NORTH CAROLINA
Concentration risk
Percentage of loan	3.80%	4.40%
Geographical concentration | Loans, held-for-investment | VIRGINIA
Concentration risk
Percentage of loan	3.00%	3.60%
Geographical concentration | Loans, held-for-investment | PENNSYLVANIA
Concentration risk
Percentage of loan	2.70%	2.40%
Geographical concentration | Loans, held-for-investment | NEW JERSEY
Concentration risk
Percentage of loan	2.90%	2.50%
Geographical concentration | Loans, held-for-investment | Other
Concentration risk
Percentage of loan	33.30%	33.60%
Geographical concentration | Loans, held at fair value
Concentration risk
Percentage of loan	100.00%	100.00%
Geographical concentration | Loans, held at fair value | TEXAS
Concentration risk
Percentage of loan	8.50%	16.40%
Geographical concentration | Loans, held at fair value | CALIFORNIA
Concentration risk
Percentage of loan	30.20%	17.30%
Geographical concentration | Loans, held at fair value | FLORIDA
Concentration risk
Percentage of loan	16.30%	19.90%
Geographical concentration | Loans, held at fair value | NEW YORK
Concentration risk
Percentage of loan	7.10%	7.80%
Geographical concentration | Loans, held at fair value | GEORGIA
Concentration risk
Percentage of loan	9.50%	4.30%
Geographical concentration | Loans, held at fair value | PENNSYLVANIA
Concentration risk
Percentage of loan	6.90%	3.00%
Geographical concentration | Loans, held at fair value | ILLINOIS
Concentration risk
Percentage of loan	9.80%	1.90%
Geographical concentration | Loans, held at fair value | OHIO
Concentration risk
Percentage of loan	10.10%	1.70%
Geographical concentration | Loans, held at fair value | MICHIGAN
Concentration risk
Percentage of loan	1.60%	1.50%
Geographical concentration | Loans, held at fair value | Other
Concentration risk
Percentage of loan		26.20%
Geographical concentration | Loans, held for sale, at fair value
Concentration risk
Percentage of loan	100.00%
Geographical concentration | Loans, held for sale, at fair value | TEXAS
Concentration risk
Percentage of loan	8.20%
Geographical concentration | Loans, held for sale, at fair value | CALIFORNIA
Concentration risk
Percentage of loan	9.60%
Geographical concentration | Loans, held for sale, at fair value | FLORIDA
Concentration risk
Percentage of loan	2.80%
Geographical concentration | Loans, held for sale, at fair value | GEORGIA
Concentration risk
Percentage of loan	2.50%
Geographical concentration | Loans, held for sale, at fair value | LOUISIANA
Concentration risk
Percentage of loan	50.20%
Geographical concentration | Loans, held for sale, at fair value | NORTH CAROLINA
Concentration risk
Percentage of loan	2.30%
Geographical concentration | Loans, held for sale, at fair value | KENTUCKY
Concentration risk
Percentage of loan	2.70%
Geographical concentration | Loans, held for sale, at fair value | ALABAMA
Concentration risk
Percentage of loan	6.00%
Geographical concentration | Loans, held for sale, at fair value | ARKANSAS
Concentration risk
Percentage of loan	2.30%
Geographical concentration | Loans, held for sale, at fair value | COLORADO
Concentration risk
Percentage of loan	2.70%
Geographical concentration | Loans, held for sale, at fair value | Other
Concentration risk
Percentage of loan	10.70%
Collateral concentration | Loans, held-for-investment
Concentration risk
Percentage of loan	100.00%	100.00%
Percentage of SBA loan	100.00%	100.00%
Collateral concentration | Loans, held-for-investment | Child Day Care Services
Concentration risk
Percentage of SBA loan	14.30%	15.10%
Collateral concentration | Loans, held-for-investment | Hotels, Motels, and Tourist Courts
Concentration risk
Percentage of SBA loan	11.40%	10.40%
Collateral concentration | Loans, held-for-investment | Offices of Dentists
Concentration risk
Percentage of SBA loan	10.30%	10.60%
Collateral concentration | Loans, held-for-investment | Vets
Concentration risk
Percentage of SBA loan	6.70%	6.30%
Collateral concentration | Loans, held-for-investment | Eating Places
Concentration risk
Percentage of SBA loan	6.30%	6.70%
Collateral concentration | Loans, held-for-investment | Offices of Physicians
Concentration risk
Percentage of SBA loan	5.50%	5.00%
Collateral concentration | Loans, held-for-investment | Grocery Stores
Concentration risk
Percentage of SBA loan	4.30%	4.20%
Collateral concentration | Loans, held-for-investment | Auto
Concentration risk
Percentage of SBA loan	3.20%	2.90%
Collateral concentration | Loans, held-for-investment | Accounting, Auditing and Bookkeeping
Concentration risk
Percentage of SBA loan	2.40%	2.50%
Collateral concentration | Loans, held-for-investment | Gasoline Service Stations
Concentration risk
Percentage of SBA loan	1.80%	1.80%
Collateral concentration | Loans, held-for-investment | Other
Concentration risk
Percentage of SBA loan	33.80%	34.50%
Collateral concentration | Loans, held-for-investment | SBA
Concentration risk
Percentage of loan	36.00%	45.50%
Collateral concentration | Loans, held-for-investment | Retail
Concentration risk
Percentage of loan	14.90%	10.50%
Collateral concentration | Loans, held-for-investment | Multi-family
Concentration risk
Percentage of loan	13.30%	12.80%
Collateral concentration | Loans, held-for-investment | Office
Concentration risk
Percentage of loan	13.50%	9.10%
Collateral concentration | Loans, held-for-investment | Industrial
Concentration risk
Percentage of loan	6.80%	5.40%
Collateral concentration | Loans, held-for-investment | Lodging
Concentration risk
Percentage of loan	3.70%	6.30%
Collateral concentration | Loans, held-for-investment | Mixed use
Concentration risk
Percentage of loan	5.20%	3.70%
Collateral concentration | Loans, held-for-investment | Other
Concentration risk
Percentage of loan	6.60%	6.70%
Collateral concentration | Loans, held at fair value
Concentration risk
Percentage of loan	100.00%	100.00%
Collateral concentration | Loans, held at fair value | Retail
Concentration risk
Percentage of loan	13.20%	16.10%
Collateral concentration | Loans, held at fair value | Multi-family
Concentration risk
Percentage of loan	23.50%	29.10%
Collateral concentration | Loans, held at fair value | Office
Concentration risk
Percentage of loan	45.90%	40.90%
Collateral concentration | Loans, held at fair value | Industrial
Concentration risk
Percentage of loan	11.00%	7.40%
Collateral concentration | Loans, held at fair value | Mixed use
Concentration risk
Percentage of loan	6.40%	6.50%
Collateral concentration | Loans, held for sale, at fair value
Concentration risk
Percentage of loan	100.00%
Collateral concentration | Loans, held for sale, at fair value | Single family
Concentration risk
Percentage of loan	69.90%
Collateral concentration | Loans, held for sale, at fair value | Multi-family
Concentration risk
Percentage of loan	9.60%
Collateral concentration | Loans, held for sale, at fair value | Lodging
Concentration risk
Percentage of loan	20.50%

Loans - Delinquency (Details)

Loans - Delinquency (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Loan delinquency information
Number of loans held for investment | loan	3,640	4,183
Loans, Held-for-investment net of specific allowance for loan losses	$ 1,587,099	$ 1,560,938
General allowance for loan losses	2,011
Total	$ 1,585,088	$ 1,560,938
Number of loans held at fair value | loan	27	51
Loans Held, Fair Value Disclosure	$ 81,592	$ 155,134
Number of loans held for sale at fair value | loan	714	0
Loans Held-for-sale, Fair Value Disclosure	$ 181,797
30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	32,568	$ 28,720
90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 44,563	$ 39,953
Fixed-rate loans held for investment
Loan delinquency information
Number of loans held for investment | loan	692	645
Loans, Held-for-investment net of specific allowance for loan losses	$ 679,174	$ 598,681
Fixed-rate loans held for investment | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	11,761	3,320
Fixed-rate loans held for investment | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 13,701	$ 15,569
Fixed-rate loans held for investment | 0-500k
Loan delinquency information
Number of loans held for investment | loan	401	399
Loans, Held-for-investment net of specific allowance for loan losses	$ 56,602	$ 52,558
Fixed-rate loans held for investment | 0-500k | Minimum
Loan delinquency information
Interest rate	0.00%	0.00%
Fixed-rate loans held for investment | 0-500k | Maximum
Loan delinquency information
Interest rate	24.00%	24.00%
Fixed-rate loans held for investment | 0-500k | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 2,383	$ 3,294
Fixed-rate loans held for investment | 0-500k | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 8,676	$ 8,576
Fixed-rate loans held for investment | 500k - 1mm
Loan delinquency information
Number of loans held for investment | loan	88	83
Loans, Held-for-investment net of specific allowance for loan losses	$ 62,246	$ 57,047
Fixed-rate loans held for investment | 500k - 1mm | Minimum
Loan delinquency information
Interest rate	4.00%	3.99%
Fixed-rate loans held for investment | 500k - 1mm | Maximum
Loan delinquency information
Interest rate	9.90%	9.90%
Fixed-rate loans held for investment | 500k - 1mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 499	$ 26
Fixed-rate loans held for investment | 500k - 1mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 2,199	$ 3,876
Fixed-rate loans held for investment | 1mm - 1.5mm
Loan delinquency information
Number of loans held for investment | loan	50	33
Loans, Held-for-investment net of specific allowance for loan losses	$ 61,167	$ 40,916
Fixed-rate loans held for investment | 1mm - 1.5mm | Minimum
Loan delinquency information
Interest rate	4.50%	3.99%
Fixed-rate loans held for investment | 1mm - 1.5mm | Maximum
Loan delinquency information
Interest rate	11.00%	9.78%
Fixed-rate loans held for investment | 1mm - 1.5mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 1,854
Fixed-rate loans held for investment | 1.5mm - 2mm
Loan delinquency information
Number of loans held for investment | loan	48	38
Loans, Held-for-investment net of specific allowance for loan losses	$ 85,555	$ 67,056
Fixed-rate loans held for investment | 1.5mm - 2mm | Minimum
Loan delinquency information
Interest rate	4.56%	3.99%
Fixed-rate loans held for investment | 1.5mm - 2mm | Maximum
Loan delinquency information
Interest rate	7.52%	10.25%
Fixed-rate loans held for investment | 1.5mm - 2mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 972	$ 3,117
Fixed-rate loans held for investment | 2mm - 2.5mm
Loan delinquency information
Number of loans held for investment | loan	32	26
Loans, Held-for-investment net of specific allowance for loan losses	$ 72,760	$ 59,047
Fixed-rate loans held for investment | 2mm - 2.5mm | Minimum
Loan delinquency information
Interest rate	4.91%	4.91%
Fixed-rate loans held for investment | 2mm - 2.5mm | Maximum
Loan delinquency information
Interest rate	7.52%	7.50%
Fixed-rate loans held for investment | 2mm - 2.5mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 2,282
Fixed-rate loans held for investment | >2.5mm
Loan delinquency information
Number of loans held for investment | loan	73	66
Loans, Held-for-investment net of specific allowance for loan losses	$ 340,844	$ 322,057
Fixed-rate loans held for investment | >2.5mm | Minimum
Loan delinquency information
Interest rate	4.50%	3.38%
Fixed-rate loans held for investment | >2.5mm | Maximum
Loan delinquency information
Interest rate	11.00%	12.01%
Fixed-rate loans held for investment | >2.5mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 6,597
Adjustable rate loans held for investment
Loan delinquency information
Number of loans held for investment | loan	2,948	3,538
Loans, Held-for-investment net of specific allowance for loan losses	$ 907,925	$ 962,257
Adjustable rate loans held for investment | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	20,807	25,400
Adjustable rate loans held for investment | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 30,862	$ 24,384
Adjustable rate loans held for investment | 0-500k
Loan delinquency information
Number of loans held for investment | loan	2,369	2,846
Loans, Held-for-investment net of specific allowance for loan losses	$ 245,631	$ 285,810
Adjustable rate loans held for investment | 0-500k | Minimum
Loan delinquency information
Interest rate	0.00%	0.00%
Adjustable rate loans held for investment | 0-500k | Maximum
Loan delinquency information
Interest rate	9.75%	9.75%
Adjustable rate loans held for investment | 0-500k | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 12,525	$ 12,864
Adjustable rate loans held for investment | 0-500k | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 8,725	$ 12,880
Adjustable rate loans held for investment | 500k - 1mm
Loan delinquency information
Number of loans held for investment | loan	345	405
Loans, Held-for-investment net of specific allowance for loan losses	$ 218,479	$ 255,404
Adjustable rate loans held for investment | 500k - 1mm | Minimum
Loan delinquency information
Interest rate	2.66%	2.66%
Adjustable rate loans held for investment | 500k - 1mm | Maximum
Loan delinquency information
Interest rate	8.63%	8.75%
Adjustable rate loans held for investment | 500k - 1mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 5,079	$ 7,361
Adjustable rate loans held for investment | 500k - 1mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 4,792	$ 4,805
Adjustable rate loans held for investment | 1mm - 1.5mm
Loan delinquency information
Number of loans held for investment | loan	136	169
Loans, Held-for-investment net of specific allowance for loan losses	$ 151,415	$ 183,883
Adjustable rate loans held for investment | 1mm - 1.5mm | Minimum
Loan delinquency information
Interest rate	3.50%	3.21%
Adjustable rate loans held for investment | 1mm - 1.5mm | Maximum
Loan delinquency information
Interest rate	8.21%	8.25%
Adjustable rate loans held for investment | 1mm - 1.5mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 2,166	$ 2,297
Adjustable rate loans held for investment | 1mm - 1.5mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 6,971	$ 2,741
Adjustable rate loans held for investment | 1.5mm - 2mm
Loan delinquency information
Number of loans held for investment | loan	48	81
Loans, Held-for-investment net of specific allowance for loan losses	$ 70,676	$ 119,626
Adjustable rate loans held for investment | 1.5mm - 2mm | Minimum
Loan delinquency information
Interest rate	2.62%	2.62%
Adjustable rate loans held for investment | 1.5mm - 2mm | Maximum
Loan delinquency information
Interest rate	6.25%	6.00%
Adjustable rate loans held for investment | 1.5mm - 2mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 1,037
Adjustable rate loans held for investment | 1.5mm - 2mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 2,278	$ 2,599
Adjustable rate loans held for investment | 2mm - 2.5mm
Loan delinquency information
Number of loans held for investment | loan	8	13
Loans, Held-for-investment net of specific allowance for loan losses	$ 16,412	$ 26,700
Adjustable rate loans held for investment | 2mm - 2.5mm | Minimum
Loan delinquency information
Interest rate	3.85%	3.33%
Adjustable rate loans held for investment | 2mm - 2.5mm | Maximum
Loan delinquency information
Interest rate	6.35%	6.75%
Adjustable rate loans held for investment | >2.5mm
Loan delinquency information
Number of loans held for investment | loan	42	24
Loans, Held-for-investment net of specific allowance for loan losses	$ 205,312	$ 90,834
Adjustable rate loans held for investment | >2.5mm | Minimum
Loan delinquency information
Interest rate	2.14%	1.59%
Adjustable rate loans held for investment | >2.5mm | Maximum
Loan delinquency information
Interest rate	8.32%	7.00%
Adjustable rate loans held for investment | >2.5mm | 30-89 Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses		$ 2,878
Adjustable rate loans held for investment | >2.5mm | 90+ Days
Loan delinquency information
Loans, Held-for-investment net of specific allowance for loan losses	$ 8,096	$ 1,359
Fixed-rate loans held at fair value
Loan delinquency information
Number of loans held at fair value | loan	27	49
Loans Held, Fair Value Disclosure	$ 81,592	$ 151,136
Fixed-rate loans held at fair value | 0-500k
Loan delinquency information
Number of loans held at fair value | loan	1	1
Loans Held, Fair Value Disclosure	$ 200	$ 43
Fixed-rate loans held at fair value | 0-500k | Minimum
Loan delinquency information
Interest rate	6.60%	6.60%
Fixed-rate loans held at fair value | 0-500k | Maximum
Loan delinquency information
Interest rate	6.60%	6.60%
Fixed-rate loans held at fair value | 500k - 1mm
Loan delinquency information
Number of loans held at fair value | loan	3	4
Loans Held, Fair Value Disclosure	$ 2,855	$ 3,431
Fixed-rate loans held at fair value | 500k - 1mm | Minimum
Loan delinquency information
Interest rate	5.70%	5.28%
Fixed-rate loans held at fair value | 500k - 1mm | Maximum
Loan delinquency information
Interest rate	7.02%	6.25%
Fixed-rate loans held at fair value | 1mm - 1.5mm
Loan delinquency information
Number of loans held at fair value | loan	7	5
Loans Held, Fair Value Disclosure	$ 9,307	$ 6,180
Fixed-rate loans held at fair value | 1mm - 1.5mm | Minimum
Loan delinquency information
Interest rate	5.71%	0.58%
Fixed-rate loans held at fair value | 1mm - 1.5mm | Maximum
Loan delinquency information
Interest rate	7.54%	5.91%
Fixed-rate loans held at fair value | 1.5mm - 2mm
Loan delinquency information
Number of loans held at fair value | loan	3	9
Loans Held, Fair Value Disclosure	$ 5,859	$ 16,610
Fixed-rate loans held at fair value | 1.5mm - 2mm | Minimum
Loan delinquency information
Interest rate	6.22%	4.73%
Fixed-rate loans held at fair value | 1.5mm - 2mm | Maximum
Loan delinquency information
Interest rate	8.33%	8.33%
Fixed-rate loans held at fair value | 2mm - 2.5mm
Loan delinquency information
Number of loans held at fair value | loan	1	4
Loans Held, Fair Value Disclosure	$ 2,367	$ 9,713
Fixed-rate loans held at fair value | 2mm - 2.5mm | Minimum
Loan delinquency information
Interest rate	6.23%	5.54%
Fixed-rate loans held at fair value | 2mm - 2.5mm | Maximum
Loan delinquency information
Interest rate	6.23%	6.50%
Fixed-rate loans held at fair value | >2.5mm
Loan delinquency information
Number of loans held at fair value | loan	12	26
Loans Held, Fair Value Disclosure	$ 61,004	$ 115,159
Fixed-rate loans held at fair value | >2.5mm | Minimum
Loan delinquency information
Interest rate	5.57%	4.33%
Fixed-rate loans held at fair value | >2.5mm | Maximum
Loan delinquency information
Interest rate	7.75%	7.75%
Adjustable rate loans held at fair value
Loan delinquency information
Number of loans held at fair value | loan		2
Loans Held, Fair Value Disclosure		$ 3,998
Adjustable rate loans held at fair value | 1.5mm - 2mm
Loan delinquency information
Number of loans held at fair value | loan		1
Loans Held, Fair Value Disclosure		$ 1,777
Adjustable rate loans held at fair value | 1.5mm - 2mm | Minimum
Loan delinquency information
Interest rate		3.44%
Adjustable rate loans held at fair value | 1.5mm - 2mm | Maximum
Loan delinquency information
Interest rate		3.44%
Adjustable rate loans held at fair value | 2mm - 2.5mm
Loan delinquency information
Number of loans held at fair value | loan		1
Loans Held, Fair Value Disclosure		$ 2,221
Adjustable rate loans held at fair value | 2mm - 2.5mm | Minimum
Loan delinquency information
Interest rate		3.44%
Adjustable rate loans held at fair value | 2mm - 2.5mm | Maximum
Loan delinquency information
Interest rate		3.44%
Fixed-rate loans held for sale at fair value
Loan delinquency information
Number of loans held for sale at fair value | loan	714
Loans Held-for-sale, Fair Value Disclosure	$ 181,797
Fixed-rate loans held for sale at fair value | 30-89 Days
Loan delinquency information
Loans Held-for-sale, Fair Value Disclosure	14,022
Fixed-rate loans held for sale at fair value | 90+ Days
Loan delinquency information
Loans Held-for-sale, Fair Value Disclosure	$ 1,064
Fixed-rate loans held for sale at fair value | 0-500k
Loan delinquency information
Number of loans held for sale at fair value | loan	657
Loans Held-for-sale, Fair Value Disclosure	$ 128,696
Fixed-rate loans held for sale at fair value | 0-500k | Minimum
Loan delinquency information
Interest rate	2.63%
Fixed-rate loans held for sale at fair value | 0-500k | Maximum
Loan delinquency information
Interest rate	5.50%
Fixed-rate loans held for sale at fair value | 0-500k | 30-89 Days
Loan delinquency information
Loans Held-for-sale, Fair Value Disclosure	$ 13,411
Fixed-rate loans held for sale at fair value | 0-500k | 90+ Days
Loan delinquency information
Loans Held-for-sale, Fair Value Disclosure	$ 1,064
Fixed-rate loans held for sale at fair value | 500k - 1mm
Loan delinquency information
Number of loans held for sale at fair value | loan	46
Loans Held-for-sale, Fair Value Disclosure	$ 32,178
Fixed-rate loans held for sale at fair value | 500k - 1mm | Minimum
Loan delinquency information
Interest rate	3.50%
Fixed-rate loans held for sale at fair value | 500k - 1mm | Maximum
Loan delinquency information
Interest rate	6.75%
Fixed-rate loans held for sale at fair value | 500k - 1mm | 30-89 Days
Loan delinquency information
Loans Held-for-sale, Fair Value Disclosure	$ 611
Fixed-rate loans held for sale at fair value | 1mm - 1.5mm
Loan delinquency information
Number of loans held for sale at fair value | loan	7
Loans Held-for-sale, Fair Value Disclosure	$ 8,261
Fixed-rate loans held for sale at fair value | 1mm - 1.5mm | Minimum
Loan delinquency information
Interest rate	3.56%
Fixed-rate loans held for sale at fair value | 1mm - 1.5mm | Maximum
Loan delinquency information
Interest rate	5.13%
Fixed-rate loans held for sale at fair value | 1.5mm - 2mm
Loan delinquency information
Number of loans held for sale at fair value | loan	1
Loans Held-for-sale, Fair Value Disclosure	$ 1,699
Fixed-rate loans held for sale at fair value | 1.5mm - 2mm | Minimum
Loan delinquency information
Interest rate	3.62%
Fixed-rate loans held for sale at fair value | 1.5mm - 2mm | Maximum
Loan delinquency information
Interest rate	3.62%
Fixed-rate loans held for sale at fair value | 2mm - 2.5mm
Loan delinquency information
Number of loans held for sale at fair value | loan	1
Loans Held-for-sale, Fair Value Disclosure	$ 2,102
Fixed-rate loans held for sale at fair value | 2mm - 2.5mm | Minimum
Loan delinquency information
Interest rate	4.14%
Fixed-rate loans held for sale at fair value | 2mm - 2.5mm | Maximum
Loan delinquency information
Interest rate	4.14%
Fixed-rate loans held for sale at fair value | >2.5mm
Loan delinquency information
Number of loans held for sale at fair value | loan	2
Loans Held-for-sale, Fair Value Disclosure	$ 8,861
Fixed-rate loans held for sale at fair value | >2.5mm | Minimum
Loan delinquency information
Interest rate	3.68%
Fixed-rate loans held for sale at fair value | >2.5mm | Maximum
Loan delinquency information
Interest rate	4.58%

Loans - Credit Quality (Details

Loans - Credit Quality (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	$ 1,587,099	$ 1,560,938
General allowance for loan losses	2,011
Loans, held-for-investment - Carrying amount	1,585,088	1,560,938
Loans, held at fair value	81,592	155,134
Loans, held for sale, at fair value	181,797
Carrying amount of loan foreclosure in process	2,300	4,200
0.0 - 20.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	58,931	48,577
Loans, held at fair value		1,078
Loans, held for sale, at fair value	1,630
20.1 - 40.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	206,803	163,488
Loans, held at fair value	11,303	13,406
Loans, held for sale, at fair value	3,337
40.1 - 60.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	532,294	425,482
Loans, held at fair value	7,203	31,057
Loans, held for sale, at fair value	14,016
60.1 - 80.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	487,006	516,618
Loans, held at fair value	47,180	93,052
Loans, held for sale, at fair value	45,749
80.1 - 100.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	163,500	206,794
Loans, held at fair value	15,906	6,186
Loans, held for sale, at fair value	71,350
Greater than 100.0%
Credit quality of loans
Loans, Held-for-investment net of specific allowance for loan losses	138,565	199,979
Loans, held at fair value		$ 10,355
Loans, held for sale, at fair value	$ 45,715

Loans - Investment Loans Value

Loans - Investment Loans Value and Yield Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Acquired loans
Loans, held-for-investment - Carrying amount			$ 1,585,088	$ 1,560,938
Loans, Held-for-investment - Unpaid principal			1,708,543	1,730,557
Non-credit impaired loans
Acquired loans
Loans, held-for-investment - Carrying amount			1,475,007	1,401,476
Loans, Held-for-investment - Unpaid principal			1,536,245	1,487,486
Accretable discount	$ (81,886)	$ (111,977)	(55,563)	(81,886)	$ (111,977)
Recorded investment			1,480,682	1,405,600
Allowance for loan losses			(5,675)	(4,124)	(748)
Accretable yield
Beginning accretable yield	(81,886)	(111,977)
Purchases	4,380
Purchases		(4,681)
Sales	850	2,581
Accretion	20,174	16,224
Other	544	1,563
Transfers	375	14,404
Ending accretable yield	(55,563)	(81,886)
Credit impaired loans
Acquired loans
Loans, held-for-investment - Carrying amount			110,081	159,462
Loans, Held-for-investment - Unpaid principal			172,298	243,071
Non-accretable discount			(24,784)	(28,580)
Accretable discount	(42,031)	(59,535)	(26,978)	(42,031)	(59,535)
Recorded investment			120,536	172,460
Allowance for loan losses			(10,455)	(12,998)	$ (12,798)
Contractually required principal and interest payments receivable			2,300	28,700
Expected cash flows			1,800	24,700
Fair value (initial carrying amount)			$ 1,100	$ 17,500
Accretable yield
Beginning accretable yield	(42,031)	(59,535)
Purchases	(676)	(4,115)
Sales	7,655	8,664
Accretion	6,635	17,511
Other	(4,459)	(12,832)
Transfers	5,898	8,276
Ending accretable yield	$ (26,978)	$ (42,031)

Loans - Investment Loans Accrua

Loans - Investment Loans Accrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrual and non-accrual status
Les: General allowance for loan	$ (2,011)
Total	1,585,088	$ 1,560,938
Non-credit impaired loans
Accrual and non-accrual status
Accrual	1,446,035	1,376,180
Non-accrual	30,983	25,296
Les: General allowance for loan	(2,011)
Total	1,475,007	1,401,476
Credit impaired loans
Accrual and non-accrual status
Accrual	91,798	159,462
Non-accrual	18,283
Total	$ 110,081	$ 159,462

Loans - Investment Loans Impair

Loans - Investment Loans Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impaired loans
Total Carrying value of Impaired Loans	$ 76,543	$ 79,339
Unpaid Principal Balance of Impaired Loans	105,029	119,839
Carrying Value for Which There Is A Related Allowance for Loan Losses	58,890	71,554
Carrying Value for Which There Is No Related Allowance for Loan Losses	17,653	7,785
Interest Income Recognized	6,730	12,302
Average carrying amount of impaired loans	155,260	129,264
Non-credit impaired loans
Impaired loans
Total Carrying value of Impaired Loans	32,425	25,296
Unpaid Principal Balance of Impaired Loans	33,185	33,362
Carrying Value for Which There Is A Related Allowance for Loan Losses	14,772	17,511
Carrying Value for Which There Is No Related Allowance for Loan Losses	17,653	7,785
Interest Income Recognized	1,165	1,227
Credit impaired loans
Impaired loans
Total Carrying value of Impaired Loans	44,118	54,043
Unpaid Principal Balance of Impaired Loans	71,844	86,477
Carrying Value for Which There Is A Related Allowance for Loan Losses	44,118	54,043
Interest Income Recognized	$ 5,565	$ 11,075

Loans - Investment Loans Allowa

Loans - Investment Loans Allowance Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses
Provision for loan losses	$ 7,819	$ 19,643
Allowance for loan losses assessed on a collective basis	2,000
Non-credit impaired loans
Allowance for loan losses
Beginning Balance	4,124	748
Provision for loan losses	4,661	5,316
Chargeoffs	(3,110)	(1,940)
Ending Balance	5,675	4,124
Credit impaired loans
Allowance for loan losses
Beginning Balance	12,998	12,798
Provision for loan losses	3,158	14,327
Chargeoffs	(280)	(8,490)
Recoveries	(5,421)	(5,637)
Ending Balance	$ 10,455	$ 12,998

Loans - Held and Held For Sale

Loans - Held and Held For Sale at FV (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Loans
Number of loans held at fair value | loan	27	51
Aggregate outstanding principal balance - Held at fair value	$ 79,100	$ 150,400
Loans, held at fair value	$ 81,592	$ 155,134
Number of loans held for sale at fair value | loan	714	0
Aggregate outstanding principal balance - Held for Sale at fair value	$ 178,900
Loans, held for sale, at fair value	$ 181,797

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Troubled debt restructurings (TDRs)
Total troubled debt restructurings	$ 19,053	$ 9,922
Office
Troubled debt restructurings (TDRs)
Total troubled debt restructurings	7,918	5,907
SBC
Troubled debt restructurings (TDRs)
Total troubled debt restructurings	7,918	5,907
SBA
Troubled debt restructurings (TDRs)
Total troubled debt restructurings	11,135	4,015
SBA | Office of Optometrists
Troubled debt restructurings (TDRs)
Total troubled debt restructurings	$ 11,135	$ 4,015

Loans - TDR Modifications (Deta

Loans - TDR Modifications (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Troubled debt restructurings (TDRs)
Pre-Modification Recorded Balance	$ 13,160	$ 13,428
Post-Modification Recorded Balance	13,097	9,272
TDR Modifications including financial effects	$ 11,497	$ 8,238
Number of Loans | loan	89	49
Total allowance related to TDR	$ 2,200	$ 2,100
Interest Income Recognized	236	1,765
Term Extension
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	9,678	7,244
Interest Rate Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	356	110
Principal Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	90	884
Foreclosure
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	1,373
SBC
Troubled debt restructurings (TDRs)
Pre-Modification Recorded Balance	2,848	9,041
Post-Modification Recorded Balance	2,870	7,532
TDR Modifications including financial effects	$ 2,198	$ 5,907
Number of Loans | loan	19	9
Interest Income Recognized	$ 233	$ 1,436
SBC | Term Extension
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	930	5,311
SBC | Interest Rate Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	307
SBC | Principal Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects		596
SBC | Foreclosure
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	961
SBA
Troubled debt restructurings (TDRs)
Pre-Modification Recorded Balance	10,312	4,387
Post-Modification Recorded Balance	10,227	1,740
TDR Modifications including financial effects	$ 9,299	$ 2,331
Number of Loans | loan	70	40
Interest Income Recognized	$ 3	$ 329
SBA | Term Extension
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	8,748	1,933
SBA | Interest Rate Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	49	110
SBA | Principal Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	90	$ 288
SBA | Foreclosure
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	$ 412

Loans - TDR Accrual Status (Det

Loans - TDR Accrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Troubled debt restructurings (TDRs)
Accrual	$ 5,555	$ 7,634
Non-Accrual	13,498	2,288
Total	19,053	9,922
Office
Troubled debt restructurings (TDRs)
Total	7,918	5,907
SBC
Troubled debt restructurings (TDRs)
Accrual	5,196	5,907
Non-Accrual	2,722
Total	7,918	5,907
SBA
Troubled debt restructurings (TDRs)
Accrual	359	1,727
Non-Accrual	10,776	2,288
Total	$ 11,135	$ 4,015

Loans - Number of TDRs (Details

Loans - Number of TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
TDRs remaining in default
Number of loans | loan	12	13
Carrying value | $	$ 2,256	$ 2,100
SBC
TDRs remaining in default
Number of loans | loan	11	1
Carrying value | $	$ 1,753	$ 1,563
SBA
TDRs remaining in default
Number of loans | loan	1	12
Carrying value | $	$ 503	$ 537

Real Estate Acquired in Settl90

Real Estate Acquired in Settlement of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	$ 8,036	$ 13,481
SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	3,433	7,220
WVMT 2011-SBC1
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		125
WVMT 2011-SBC3
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		1,113
SCML 2015-SBC4
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	4,102	4,019
ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	501	254
Other Taxable REIT Subsidiaries
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		750
ALABAMA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	20
ALABAMA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	20
CALIFORNIA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	580	86
CALIFORNIA | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		86
CALIFORNIA | SCML 2015-SBC4
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	580
CONNECTICUT
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	9	326
CONNECTICUT | SCML 2015-SBC4
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		326
CONNECTICUT | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	9
FLORIDA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1,401	4,292
FLORIDA | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1,249	3,467
FLORIDA | SCML 2015-SBC4
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	81
FLORIDA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	71	75
FLORIDA | Other Taxable REIT Subsidiaries
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		750
GEORGIA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	90	321
GEORGIA | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	90	321
ILLINOIS
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	19	17
ILLINOIS | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	19	17
INDIANA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	66	51
INDIANA | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		6
INDIANA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	66	45
KANSAS
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1	24
KANSAS | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1	24
KENTUCKY
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		11
KENTUCKY | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		11
MICHIGAN
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		1
MICHIGAN | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		1
MINNESOTA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	127
MINNESOTA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	127
MISSOURI
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	3,441	3,700
MISSOURI | SCML 2015-SBC4
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	3,441	3,693
MISSOURI | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		7
NEW HAMPSHIRE
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	111	9
NEW HAMPSHIRE | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	111	9
NEW JERSEY
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	23	924
NEW JERSEY | WVMT 2011-SBC3
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		924
NEW JERSEY | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	23
NEW YORK
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	53	144
NEW YORK | WVMT 2011-SBC3
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		144
NEW YORK | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	53
NORTH CAROLINA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1,850	2,947
NORTH CAROLINA | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1,850	2,946
NORTH CAROLINA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		1
RHODE ISLAND
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		170
RHODE ISLAND | WVMT 2011-SBC1
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		125
RHODE ISLAND | WVMT 2011-SBC3
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		45
SOUTH CAROLINA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1
SOUTH CAROLINA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	1
TENNESSEE
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	136	269
TENNESSEE | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	136	269
TEXAS
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	108	130
TEXAS | SAMC REO 2013-01, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans	$ 108	125
TEXAS | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		5
VIRGINIA
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		59
VIRGINIA | ReadyCap Lending, LLC
Real estate acquired
Carrying amount of real estate acquired in settlement of loans		$ 59

Mortgage Backed Securities (Det

Mortgage Backed Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Mortgage Backed Securities
Weighted Average Interest Rate	5.70%	6.20%
Principal Balance	$ 43,780	$ 216,318
Amortized Cost	32,681	217,475
Fair Value	$ 32,391	$ 213,504
Mortgage Backed Securities Weighted Average Interest Rate
After five years through ten years (as percent)	8.90%	8.60%
After ten years (as percent)	4.20%	6.00%
Mortgage Backed Securities Principal Balance
After five years through ten years	$ 13,616	$ 17,254
After ten years	30,164	199,064
Mortgage Backed Securities Amortized Cost
After five years through ten years	12,579	15,814
After ten years	20,102	201,661
Mortgage Backed Securities Estimated Fair Value
After five years through ten years	12,709	15,619
After ten years	$ 19,682	$ 197,885
MBS
Mortgage Backed Securities
Weighted Average Interest Rate	5.70%	6.20%
Principal Balance	$ 43,780	$ 216,318
Amortized Cost	32,681	217,475
Fair Value	32,391	213,504
Gross Unrealized Gains	1,605	1,128
Gross Unrealized Losses	$ (1,895)	$ (5,099)
Commercial Loans
Mortgage Backed Securities
Weighted Average Interest Rate	5.60%	6.20%
Principal Balance	$ 41,246	$ 213,706
Amortized Cost	30,148	214,863
Fair Value	29,883	210,892
Gross Unrealized Gains	1,605	1,128
Gross Unrealized Losses	$ (1,870)	$ (5,099)
Tax Liens
Mortgage Backed Securities
Weighted Average Interest Rate	6.50%	6.50%
Principal Balance	$ 2,534	$ 2,612
Amortized Cost	2,533	2,612
Fair Value	2,508	$ 2,612
Gross Unrealized Losses	$ (25)

Servicing rights and Resident92

Servicing rights and Residential mortgage servicing rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Servicing rights
Gross servicing fees	$ 14,400	$ 13,100	$ 7,100
Fair Value	$ 27,250	36,725	36,725	$ 22,478	$ 27,250
Servicing rights, valuation assumptions
Discount rate	12.00%
Unpaid principal balance of loans serviced for others				750,000	$ 927,900
Servicing rights activity
Beginning net carrying/Fair amount	$ 27,250	36,725
Mortgage servicing rights resulting from mortgage loan sales	2,960	1,024
Amortization	(5,660)	(5,867)
Impairment	(2,072)	(4,632)
Ending net carrying/Fair amount	22,478	$ 27,250	$ 36,725
Residential
Servicing rights
Unpaid Principal Amount				5,481,404
Fair Value	61,376			61,376
Servicing rights, valuation assumptions
Unpaid principal balance of loans serviced for others				5,480,000
Servicing rights activity
Acquired in connection with reverse merger	51,302
Mortgage servicing rights resulting from mortgage loan sales	3,157
Unrealized gains	6,917
Ending net carrying/Fair amount	61,376
Fannie Mae | Residential
Servicing rights
Unpaid Principal Amount				2,211,493
Fair Value	23,924			23,924
Servicing rights activity
Ending net carrying/Fair amount	23,924
Ginnie Mae | Residential
Servicing rights
Unpaid Principal Amount				1,817,009
Fair Value	21,205			21,205
Servicing rights activity
Ending net carrying/Fair amount	21,205
Freddie Mac | Residential
Servicing rights
Unpaid Principal Amount				1,452,902
Fair Value	16,247			$ 16,247
Servicing rights activity
Ending net carrying/Fair amount	$ 16,247
Minimum
Servicing rights, valuation assumptions
Forward prepayment assumptions	2.10%	6.00%
Default assumptions	0.00%	0.00%
Discount rate		12.00%
Servicing expense (as a percent)	0.20%	0.20%
Minimum | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	6.90%
Discount rate	10.50%
Servicing expense (as a percent)	0.40%
Maximum
Servicing rights, valuation assumptions
Forward prepayment assumptions	19.10%	24.00%
Default assumptions	10.80%	2.40%
Discount rate		15.00%
Servicing expense (as a percent)	0.40%	0.40%
Maximum | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	11.70%
Discount rate	11.50%
Servicing expense (as a percent)	1.70%
Weighted Average
Servicing rights, valuation assumptions
Forward prepayment assumptions	13.90%	13.60%
Default assumptions	1.10%	0.60%
Discount rate		12.10%
Servicing expense (as a percent)	0.30%	0.40%
Weighted Average | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	9.30%
Discount rate	10.80%
Servicing expense (as a percent)	0.50%

Servicing rights and Resident93

Servicing rights and Residential mortgage servicing rights - Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Future amortization expense for the servicing rights
2,017	$ 4,819
2,018	3,854
2,019	3,069
2,020	2,429
2,021	1,907
Thereafter	6,400
Total	$ 22,478	$ 27,250	$ 36,725

Servicing rights and Resident94

Servicing rights and Residential mortgage servicing rights - Assumptions (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Adverse changes to key assumptions on the carrying amount of the servicing rights
Default assumptions (10% adverse change)	$ (12)	$ (9)
Default assumptions (20% adverse change)	(24)	(17)
Forward prepayment assumptions (10% adverse change)	(664)	(854)
Forward prepayment assumptions (20% adverse change)	(1,290)	(1,660)
Discount rate (10% adverse change)	(576)	(745)
Discount rate (20% adverse change)	(1,119)	$ (1,446)
Residential
Adverse changes to key assumptions on the carrying amount of the servicing rights
Default assumptions (10% adverse change)	(1,304)
Default assumptions (20% adverse change)	(2,607)
Forward prepayment assumptions (10% adverse change)	(2,038)
Forward prepayment assumptions (20% adverse change)	(3,983)
Discount rate (10% adverse change)	(2,299)
Discount rate (20% adverse change)	$ (4,438)

Borrowings Under Credit Facil95

Borrowings Under Credit Facilities and Promissory Note Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value		$ 0
Carrying Value	$ 326,610	175,306
Promissory note payable	7,378
Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	378,416	205,678
Carrying Value	333,988	175,306
JPMorgan | Commercial
Borrowings under credit facilities and promissory note
Maximum Facility Size	250,000
JPMorgan | Commercial | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	226,253	205,678
Carrying Value	$ 190,066	175,306
JPMorgan | Commercial | Borrowings under credit facilities and promissory note payable | Minimum | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.50%
JPMorgan | Commercial | Borrowings under credit facilities and promissory note payable | Maximum | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	3.50%
Keybank | Commercial
Borrowings under credit facilities and promissory note
Maximum Facility Size	$ 50,000
Keybank | Commercial | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	17,311	0
Carrying Value	$ 17,162
Keybank | Commercial | Borrowings under credit facilities and promissory note payable | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	1.75%
FCB | Commercial
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.75%
Maximum Facility Size	$ 9,164
FCB | Commercial | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	9,144	0
Carrying Value	7,378
Comerica | Residential
Borrowings under credit facilities and promissory note
Maximum Facility Size	75,000
Comerica | Residential | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	35,102	0
Carrying Value	$ 33,575
Comerica | Residential | Borrowings under credit facilities and promissory note payable | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.25%
UBS | Residential
Borrowings under credit facilities and promissory note
Maximum Facility Size	$ 65,000
UBS | Residential | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	43,121	0
Carrying Value	$ 39,750
UBS | Residential | Borrowings under credit facilities and promissory note payable | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.30%
Associated Bank | Residential
Borrowings under credit facilities and promissory note
Maximum Facility Size	$ 40,000
Associated Bank | Residential | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	28,575	0
Carrying Value	$ 27,869
Associated Bank | Residential | Borrowings under credit facilities and promissory note payable | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.25%
Community Trust | Residential
Borrowings under credit facilities and promissory note
Maximum Facility Size	$ 25,000
Community Trust | Residential | Borrowings under credit facilities and promissory note payable
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value	18,910	$ 0
Carrying Value	$ 18,188
Community Trust | Residential | Borrowings under credit facilities and promissory note payable | LIBOR
Borrowings under credit facilities and promissory note
Pricing (as a percent)	2.25%

Borrowings Under Credit Facil96

Borrowings Under Credit Facilities and Promissory Notes Payable - Collateral (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Borrowings under credit facilities and promissory note
Pledged Assets Carrying Value		$ 0
Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	2,318
Weighted Average Rate	5.00%
Weighted Average Remaining Term	198 days
Total Current Principal Balance	$ 432,691
Pledged Assets Carrying Value	$ 378,416
JPMorgan | Commercial | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	1,617	1,681
Weighted Average Rate	5.60%	5.40%
Weighted Average Remaining Term	142 days	159 days
Total Current Principal Balance	$ 280,071	$ 269,947
Pledged Assets Carrying Value	$ 226,253	$ 205,678
Keybank | Commercial | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	8
Weighted Average Rate	4.00%
Weighted Average Remaining Term	178 days
Total Current Principal Balance	$ 17,162
Pledged Assets Carrying Value	$ 17,311
FCB | Commercial | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	37
Weighted Average Rate	5.10%
Weighted Average Remaining Term	46 days
Total Current Principal Balance	$ 9,750
Pledged Assets Carrying Value	$ 9,144
Comerica | Residential | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	173
Weighted Average Rate	3.80%
Weighted Average Remaining Term	339 days
Total Current Principal Balance	$ 35,102
Pledged Assets Carrying Value	$ 35,102
UBS | Residential | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	232
Weighted Average Rate	3.70%
Weighted Average Remaining Term	361 days
Total Current Principal Balance	$ 43,121
Pledged Assets Carrying Value	$ 43,121
Associated Bank | Residential | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	145
Weighted Average Rate	3.90%
Weighted Average Remaining Term	350 days
Total Current Principal Balance	$ 28,575
Pledged Assets Carrying Value	$ 28,575
Community Trust | Residential | Borrowings under credit facilities
Borrowings under credit facilities and promissory note
Number of Loans | loan	106
Weighted Average Rate	4.10%
Weighted Average Remaining Term	267 days
Total Current Principal Balance	$ 18,910
Pledged Assets Carrying Value	$ 18,910

Offsetting Assets and Liabili97

Offsetting Assets and Liabilities - Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	$ 3,097
Gross Amounts Offset in the Consolidated Balance Sheets	2
Assets Presented in the Consolidated Balance Sheets	3,095
Net Amount	3,095
Credit default swaps
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	173	$ 723
Assets Presented in the Consolidated Balance Sheets	173	723
Net Amount	173	$ 723
Interest rate swaps
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	2,924
Gross Amounts Offset in the Consolidated Balance Sheets	2
Assets Presented in the Consolidated Balance Sheets	2,922
Net Amount	$ 2,922

Offsetting Assets and Liabili98

Offsetting Assets and Liabilities - Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities, Derivative	$ 643	$ 1,499
Effect of offsetting recognized liabilities, Borrowings under repurchase agreements
Gross Amounts of Recognized Liabilities, Borrowings under repurchase agreements	600,852	644,137
Liabilities Presented in the Consolidated Balance Sheets, Borrowings under repurchase agreements	600,852	644,137
Financial Instruments, Borrowings under repurchase agreements	719,868	779,468
Cash Collateral Paid, Borrowings under repurchase agreements		1,549
Effect of offsetting recognized liabilities, Total
Gross Amounts of Recognized Liabilities, Total	935,483	820,942
Liabilities Presented in the Consolidated Balance Sheets, Total	935,483	820,942
Financial Instruments, Total	1,098,284	954,774
Cash Collateral Paid, Total	2,503	3,048
Interest rate swaps
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities, Derivative	643	1,499
Liabilities Presented in the Consolidated Balance Sheets, Derivative	643	1,499
Cash Collateral Paid, Derivative	643	1,499
Borrowings under credit facilities
Effect of offsetting recognized liabilities, Borrowings
Gross Amounts of Recognized Liabilities, Borrowings	326,610	175,306
Liabilities Presented in the Consolidated Balance Sheets, Borrowings	326,610	175,306
Financial Instruments, Borrowings	369,272	$ 175,306
Cash Collateral Paid, Borrowings	1,860
Promissory note
Effect of offsetting recognized liabilities, Borrowings
Gross Amounts of Recognized Liabilities, Borrowings	7,378
Liabilities Presented in the Consolidated Balance Sheets, Borrowings	7,378
Financial Instruments, Borrowings	$ 9,144

Derivative Instruments (Details

Derivative Instruments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)instrument	Dec. 31, 2015USD ($)instrument
Notional Amount	$ 363,080	$ 288,800
Asset Derivatives Fair Value	5,785	723
Liabilities Derivatives Fair Value	(643)	(1,499)
Net Realized Gain (Loss)	(2,106)	(5,521)
Net Change in Unrealized Gain (Loss)	$ 3,267	$ 1,020
Credit default swaps
Number of derivative instrument held | instrument	1	1
Net Realized Gain (Loss)		$ (697)
Net Change in Unrealized Gain (Loss)	$ (552)	557
Credit default swaps | Credit Risk
Notional Amount	15,000	15,000
Asset Derivatives Fair Value	$ 173	$ 723
Interest rate swaps
Number of derivative instrument held | instrument	49	9
Liabilities Derivatives Fair Value	$ (643)	$ (1,499)
Net Realized Gain (Loss)	(2,106)	(4,824)
Net Change in Unrealized Gain (Loss)	4,627	463
Interest rate swaps | Interest Rate Risk
Notional Amount	135,550	273,800
Asset Derivatives Fair Value	2,922
Liabilities Derivatives Fair Value	(643)	$ (1,499)
Interest rate lock commitments (IRLCs)
Net Change in Unrealized Gain (Loss)	(808)
Interest rate lock commitments (IRLCs) | Interest Rate Risk
Notional Amount	212,530
Asset Derivatives Fair Value	$ 2,690

Borrowings Under Repurchase 100

Borrowings Under Repurchase Agreements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Counterparty	Dec. 31, 2015USD ($)Counterparty
Borrowings under repurchase agreements
Number of counterparties | Counterparty	7	7
Initial term at inception	1 month
Repurchase Agreement Borrowings	$ 600,852	$ 644,137
Weighted Average Borrowing Rate	1.80%	1.70%
Weighted Average Remaining Maturity (days)	69 days	93 days
Short term investments
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 319,690	$ 249,745
Weighted Average Borrowing Rate	0.20%	0.40%
Weighted Average Remaining Maturity (days)	5 days	13 days
Loans, held-for-investment / Loans, held at fair value
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 273,050	$ 216,568
Weighted Average Borrowing Rate	3.60%	2.90%
Weighted Average Remaining Maturity (days)	144 days	254 days
MBS
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 8,112	$ 177,824
Weighted Average Borrowing Rate	2.90%	2.10%
Weighted Average Remaining Maturity (days)	86 days	14 days

Borrowings Under Repurchase 101

Borrowings Under Repurchase Agreements - Maturity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 600,852	$ 644,137
Weighted Average Interest Rate	1.80%	1.70%
Within 30 days
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 350,054	$ 444,303
Weighted Average Interest Rate	0.40%	1.20%
Over 30 days to 60 days
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 87,942
Weighted Average Interest Rate	4.00%
Over 60 days to 90 days
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 8,112	$ 39,214
Weighted Average Interest Rate	2.90%	2.60%
Over 120 days to 360 days
Borrowings under repurchase agreements
Repurchase Agreement Borrowings	$ 154,744	$ 140,323
Weighted Average Interest Rate	3.60%	3.00%
Over 360 Days
Borrowings under repurchase agreements
Repurchase Agreement Borrowings		$ 20,297
Weighted Average Interest Rate		3.20%

Borrowings Under Repurchase 102

Borrowings Under Repurchase Agreements - Collateral (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Collateral pledged:
Assets Pledged at Fair Value	$ 717,577	$ 776,699
Amortized Cost	715,406	777,481
Accrued Interest	2,291	2,769
Fair Value of Assets Pledged and Accrued Interest	719,868	779,468
Short term investments
Collateral pledged:
Assets Pledged at Fair Value	319,984	249,989
Amortized Cost	319,984	249,988
Fair Value of Assets Pledged and Accrued Interest	319,984	249,989
Loans, held-for-investment / Loans, held at fair value
Collateral pledged:
Assets Pledged at Fair Value	332,029	228,944
Amortized Cost	329,997	225,803
Accrued Interest	1,890	1,281
Fair Value of Assets Pledged and Accrued Interest	333,919	230,225
MBS
Collateral pledged:
Assets Pledged at Fair Value	11,815	209,468
Amortized Cost	11,676	213,392
Accrued Interest	22	988
Fair Value of Assets Pledged and Accrued Interest	11,837	210,456
Retained interest in assets of consolidated VIEs
Collateral pledged:
Assets Pledged at Fair Value	53,749	88,298
Amortized Cost	53,749	88,298
Accrued Interest	379	500
Fair Value of Assets Pledged and Accrued Interest	$ 54,128	$ 88,798

Guaranteed Loan Financing (Deta

Guaranteed Loan Financing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Borrowings under Guaranteed Investment Agreements	$ 390,555	$ 499,187
Guaranteed loan financing
Borrowings under Guaranteed Investment Agreements	$ 390,555	$ 499,187
Guaranteed loan financing | Weighted Average
Interest Rates	2.79%	2.54%
Guaranteed loan financing | Minimum
Interest Rates	3.50%	1.03%
Guaranteed loan financing | Maximum
Interest Rates	8.75%	6.99%

Guaranteed Loan Financing - Mat

Guaranteed Loan Financing - Maturities (Details) - Guaranteed loan financing - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Contractual maturities of total guaranteed loan financing outstanding
2,017	$ 3,185
2,018	7,028
2,019	4,844
2,020	5,710
2,021	6,126
Thereafter	363,662
Total	390,555
Loans held-for-investment pledged as security against guaranteed loan financing	$ 396,900	$ 507,400

Repair and Denial Reserve (Deta

Repair and Denial Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Repair and denial reserve activity
Beginning balance	$ 8,071	$ 18,191
Release of repair and denial reserve	(1,258)	(10,120)	$ (3,216)
Ending balance	$ 6,813	$ 8,071	$ 18,191
Estimated frequency of a repair and denial event upon default used in the calculation of the reserve (as a percent)	4.12%	4.26%
Minimum
Repair and denial reserve activity
Estimated severity of the repair and denial assumption used in the calculation of the reserve (as a percent)	26.80%	24.60%
Maximum
Repair and denial reserve activity
Estimated severity of the repair and denial assumption used in the calculation of the reserve (as a percent)	81.10%	62.20%
Other Income
Repair and denial reserve activity
Release of repair and denial reserve	$ (1,258)	$ (10,120)

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Related-party transactions
Remaining payable balance	$ 3,762	$ 2,305
Borrowings under repurchase agreements	$ 600,852	$ 644,137
Management Agreement
Related-party transactions
Term of agreement	3 years
Automatically renewal period	1 year
Minimum notice period for termination	180 days
Termination fee multiplier	3
Period immediately preceding the termination used as basis for determination of the termination fee due	24 months
Management Fee
Related-party transactions
Management fee for up to $500 million (as a percent)	1.50%
Management fee threshold	$ 500,000
Management fee in excess of $500 million (as a percent)	1.00%
Incentive Distribution Fee
Related-party transactions
Management fee for up to $500 million (as a percent)	15.00%
Core earnings period	12 months
Percentage of incentive fee in cash		50.00%
Percentage of incentive fee in Companys stock		50.00%
Percentage of Incentive fee multiplied by the weighted average of issue price	8.00%
The period over which core earnings must exceed the minimum threshold per the terms of the agreement	36 months
Minimum core earnings threshold	$ 0
Minimum
Related-party transactions
Threshold limit	$ 500,000
Minimum | Management Agreement
Related-party transactions
Independent director votes required for approval	66.70%
Manager | Management Fee
Related-party transactions
Fees	$ 7,400	$ 7,300	$ 7,000
Remaining payable balance	3,700	1,800	1,800
Manager | Incentive Distribution Fee
Related-party transactions
Fees	0	1,000
Incentive distribution fee paid		500
Remaining payable balance		500
Value of common stock distributions due		$ 500
Lock up period		3 years
Manager | Expense Reimbursement
Related-party transactions
Remaining payable balance	3,400	$ 2,200	700
Reimbursable expenses	4,100	4,000	$ 900
Victoria
Related-party transactions
Remaining payable balance	0	0
Interest expense	100	200
Borrowings under repurchase agreements	0	$ 0
Waterfall Olympic Master Fund LP
Related-party transactions
Gain on sale of loans	200
Origination fees	$ 700
ReadyCap Commercial, LLC
Related-party transactions
Number of loans originated | loan	4
Unpaid principal balance	$ 56,400

Commitments, Contingencies a107

Commitments, Contingencies and Indemnifications (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Counterparty	Dec. 31, 2015USD ($)
Commitments, contingencies and indemnifications
Contingent consideration	$ 14,487
Loan indemnification reserve	2,780
Commitments to originate loans	200,000
Unfunded loan commitments
Commitments, contingencies and indemnifications
Unfunded loan commitments, loans held at fair value	14,900	$ 16,900
Unfunded loan commitments, loans held-for-investment	$ 29,300	$ 17,400
GMFS
Commitments, contingencies and indemnifications
Number of mortgage loan purchasing counterparties | Counterparty	1
Period of loans sold	17 years
Loan indemnification reserve	$ 2,800
Mortgage loans sold servicing released	$ 1,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
REIT requirements and income tax information
Percentage of nondeductible excise tax the entity would be subject to if they fail to meet the minimum distributions requirement	4.00%
Number of taxable years an entity would not be able to qualify as a REIT if qualification lapses	4 years
Income tax expense	$ 9,651	$ 7,810	$ 897
Income tax benefit	1,380	4,450
Increase in deferred tax assets	2,900
Net operating loss limited per year	1,100
Recognized net deferred tax asset	$ 402	$ 151
Income ta rate on discontinued operations	39.00%
Statutory federal income tax rate (as a percent)	35.00%
Operating loss carryforwards	$ 10,700
Minimum
REIT requirements and income tax information
Percentage of taxable income distributed in the form of qualifying distributions	90.00%
Maximum
REIT requirements and income tax information
Percentage of taxable income distributed in the form of qualifying distributions	100.00%

Income Taxes - Income Tax Provi

Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal income tax	$ 6,441	$ 5,234	$ 2,517
State and local income tax	947	710	324
Net current tax provision	7,388	5,944	2,841
Deferred:
Federal income tax	1,401	750	308
State and local income tax	583	248	267
Valuation allowance	279	868	(2,519)
Net deferred tax provision	2,263	1,866	(1,944)
Total income tax provision	$ 9,651	$ 7,810	$ 897

Income Taxes - Effective Income

Income Taxes - Effective IncomeTax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of federal income tax determined using statutory federal tax rate to our reported income tax provision
U.S. statutory tax	$ 22,825	$ 18,099	$ 12,310
State and local income tax	2,322	721	600
Income attributable to REIT	(14,522)	(10,138)	(8,155)
Income attributable to Non-controlling interests	(1,251)	(1,491)	(1,151)
Nondeductible	21	18	11
Other	(23)	(267)	(199)
Valuation allowance	279	868	(2,519)
Total income tax provision	$ 9,651	$ 7,810	$ 897

Income Taxes - Schedule O fDefe

Income Taxes - Schedule O fDeferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Net operating loss carryforwards	$ 4,159	$ 515
Unrealized losses	488	233
Impairment and reserves	7,826	8,086
Accruals	402	151
Depreciation/amortization	668	800
Goodwill	7,134
Compensation	1,669
Intangibles	896
Other	859
Total deferred tax assets	24,101	9,785
Deferred tax liabilities:
Loan / servicing rights balance	20,995	8,774
Derivative instruments	1,152
Other taxable temporary difference	69	64
Total deferred tax liabilities	22,216	8,838
Valuation allowance	(1,147)	(868)
Net deferred tax assets	$ 738	$ 79

Other Asset and Other Liabil112

Other Asset and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other assets:
Due from servicers	$ 27,029	$ 14,208
Receivable from third parties	7,220	608
Accrued interest	5,606	5,258
Deferred financing costs	3,376	4,788
Fixed assets	1,572	1,269
Prepaid taxes	1,456
Deferred tax asset	1,371	79
Prepaid technology expense	918	1,409
Prepaid insurance expense	899	227
Other	4,481	2,199
Total other assets	53,928	30,045
Other liabilities:
Accrued salaries, wages and commissions	17,450	7,067
Servicing principal and interest payable	10,664	9,789
Repair and denial reserve	6,813	8,071	$ 18,191
Liability under subservicing agreements	6,757	8,827
Unapplied cash	6,278	1,025
Accrued interest payable	4,680	4,833
Payable to related parties	3,762	2,305
Accrued professional fees	2,880	1,050
Loan indemnification reserve	2,780
Accrued tax liability	1,996
Liability under participation agreements	1,735	3,700
Deferred tax liability	632
Accounts payable on liability under participation agreements	982	475
Cash held as collateral	80	320
Other	2,718	203
Total other liabilities	$ 70,207	$ 47,665

Other Asset and Other Liabil113

Other Asset and Other Liabilities - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total Intangible Assets	$ 3,636	$ 1,000
Amortization expense	100
Total Accumulated Amortization	67
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,017	372
2,018	349
2,019	311
2,020	277
2,021	248
Loan Indemnification Reserve	2,780
Trade name
Total Intangible Assets	$ 1,190
Estimated Useful Life	15 years
Total Accumulated Amortization	$ 33
Favorable lease
Total Intangible Assets	$ 1,446
Estimated Useful Life	12 years
Total Accumulated Amortization	$ 34
SBA license
Total Intangible Assets	$ 1,000	$ 1,000

Other Income and Operating E114

Other Income and Operating Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other income
Origination income	$ 5,548	$ 2,935	$ 3,821
Release of repair and denial reserve	1,258	10,120	3,216
Other	3,759	1,376	1,044
Total other income	10,565	14,431	8,081
Operating expenses
Origination costs	4,695	2,779	1,196
Technology expense	2,945	2,414	2,740
Charge off of real estate acquired in settlement of loans	1,833	849	749
Rent expense	1,449	996	354
Recruiting, training and travel expenses	1,320	1,223	901
Acquisition costs	886	575	2,213
Depreciation	615	545	47
Marketing expense	595	255	170
Insurance expense	571	412	514
Other	3,030	2,017	1,953
Total operating expenses	$ 17,939	$ 12,065	$ 10,837

Use of Special Purpose Entit115

Use of Special Purpose Entities - VIE Securitized Debt Obligations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)
Variable interest entities
Number of securitization transactions since 2011 | item	8
Real estate acquired in settlement of loans	$ 8,036	$ 13,481
Carrying value	492,942	461,522
VIEs
Variable interest entities
Loans, held-for-investment	655,559	633,720
Real estate acquired in settlement of loans	4,103	5,257
Current Principal Balance	504,317	471,771
Carrying value	$ 492,942	$ 461,522
Weighted Average Rate	3.60%	3.40%
Waterfall Victoria Mortgage Trust 2011-SBC2
Variable interest entities
Current Principal Balance	$ 24,472	$ 28,651
Carrying value	$ 24,472	$ 28,651
Weighted Average Rate	5.20%	5.20%
Sutherland Commercial Mortgage Loans 2015-SBC4
Variable interest entities
Current Principal Balance	$ 39,464	$ 75,470
Carrying value	$ 38,402	$ 73,656
Weighted Average Rate	3.90%	4.00%
ReadyCap Commercial Mortgage Trust 2014-1
Variable interest entities
Current Principal Balance	$ 84,320	$ 112,368
Carrying value	$ 83,885	$ 110,945
Weighted Average Rate	3.40%	3.30%
ReadyCap Commercial Mortgage Trust 2015-1
Variable interest entities
Current Principal Balance	$ 166,232	$ 164,701
Carrying value	$ 160,699	$ 158,345
Weighted Average Rate	4.00%	4.10%
ReadyCap Commercial Mortgage Trust 2016-3
Variable interest entities
Current Principal Balance	$ 133,774
Carrying value	$ 129,914
Weighted Average Rate	3.50%
ReadyCap Lending Small Business Trust 2015-1
Variable interest entities
Current Principal Balance	$ 56,055	$ 90,581
Carrying value	$ 55,570	$ 89,925
Weighted Average Rate	2.00%	1.70%
Securitized assets | VIEs
Variable interest entities
Loans, held-for-investment	$ 655,600	$ 633,700
Real estate acquired in settlement of loans	$ 4,100	$ 5,300

Use of Special Purpose Entit116

Use of Special Purpose Entities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets:
Cash and cash equivalents	$ 59,566	$ 41,569	$ 56,740	$ 218,079
Restricted cash	20,190	14,757
Real estate acquired in settlement of loans	8,036	13,481
Accrued interest	5,606	5,258
Due from servicers	54,700	20,300
Total assets	691,096	649,043
Liabilities:
Securitized debt obligations of consolidated VIEs	492,942	461,522
Accounts payable and other accrued liabilities	70,207	47,665
VIEs
Assets:
Cash and cash equivalents	131	26
Restricted cash	808	1,362
Loans, held-for-investment (net of allowances for loan losses of $3,409 at December 31, 2016 and $4,867 at December 31, 2015)	655,559	633,720
Real estate acquired in settlement of loans	4,103	5,257
Accrued interest	2,835	2,557
Due from servicers	27,660	6,121
Total assets	691,096	649,043
Liabilities:
Securitized debt obligations of consolidated VIEs	492,942	461,522
Accounts payable and other accrued liabilities	1,554	996
Total liabilities	494,496	462,518
Equity	196,600	186,525
Loan receivable allowance	$ 3,409	$ 4,867

Use of Special Purpose Entit117

Use of Special Purpose Entities - Consolidated VIE Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income
Loans, held-for-investment									$ 117,049	$ 120,664	$ 76,078
Total interest income									137,023	148,955	92,947
Interest expense
Securitized debt obligations of consolidated VIEs									(17,619)	(11,018)	(3,857)
Total interest expense									(57,772)	(47,806)	(19,245)
Net interest income before provision for loan losses									79,251	101,149	73,702
Provision for loan losses									(7,819)	(19,643)	(11,797)
Net interest income after provision for loan losses	$ 13,882	$ 17,305	$ 18,864	$ 21,381	$ 21,651	$ 21,930	$ 18,643	$ 19,282	71,432	81,506	61,905
Other income (expense)
Other income									10,565	14,431	8,081
Loan servicing (expense) income									(4,611)	(4,384)	(10,300)
Professional fees									(13,420)	(6,954)	(6,339)
Other operating expenses									(17,939)	(12,065)	(10,837)
Total other income (expense)	2,703	(11,863)	(12,332)	(9,685)	(9,169)	(8,821)	(9,148)	(7,050)	(37,294)	(34,188)	(39,113)
Realized gain (loss)
Total realized gain (loss)									15,996	181	7,037
Net income attributable to Sutherland Asset Management Corporation	$ 24,054	$ 8,792	$ 8,021	$ 8,302	$ 8,246	$ 11,985	$ 11,408	$ 8,744	49,169	40,383	29,337
VIEs
Interest income
Loans, held-for-investment									51,858	45,393	9,261
Total interest income									51,858	45,393	9,261
Interest expense
Securitized debt obligations of consolidated VIEs									(17,619)	(11,018)	(3,857)
Total interest expense									(17,619)	(11,018)	(3,857)
Net interest income before provision for loan losses									34,239	34,375	5,404
Provision for loan losses									(1,730)	(3,394)	(3,959)
Net interest income after provision for loan losses									32,509	30,981	1,445
Other income (expense)
Other income									44	74	454
Loan servicing (expense) income									(1,318)	(1,302)	(832)
Professional fees									(43)	(1)
Other operating expenses									(540)	(275)
Total other income (expense)									(1,857)	(1,504)	(378)
Realized gain (loss)
Realized -gain on loans, held-for-investment									722	(600)	1,022
Real estate acquired in settlement of loans									(152)	(197)	(841)
Securitized debt obligations									(249)	(186)	613
Total realized gain (loss)									321	(983)	794
Net income attributable to Sutherland Asset Management Corporation									$ 30,973	$ 28,494	$ 1,861

Stockholders_ Equity - Common S

Stockholders’ Equity - Common Stock (Details) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Stockholders’ Equity
Common stock, authorized capital	500,000,000	500,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, issued	30,549,084	25,739,847
Common stock, outstanding	30,549,084	25,739,847

Stockholders_ Equity - Preferre

Stockholders’ Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Preferred stock offering
Par Value per Share		$ 1,000	$ 1,000
Par Value of Shares Issued				$ 108
Additional Paid-in-Capital			$ 121	1,879
Net Proceeds		$ (130)		$ 108
Preferred stock
Preferred stock offering
Number of Shares				125
Par Value of Shares Issued				$ 125
Preferred stock | Private Placement
Preferred stock offering
Number of Shares	125
Par Value per Share	$ 1,000
Par Value of Shares Issued	$ 125,000
Additional Paid-in-Capital	(17,000)
Net Proceeds	$ 108,000
Additional Paid-in-Capital
Preferred stock offering
Par Value of Shares Issued				(17)
Additional Paid-in-Capital			110	1,684
Noncontrolling OP unit holders
Preferred stock offering
Additional Paid-in-Capital			$ 11	$ 195

Stockholders_ Equity - Commo120

Stockholders’ Equity - Common Stock Dividends (Details) - $ / shares	Jan. 27, 2017	Dec. 21, 2016	Oct. 25, 2016	Oct. 11, 2016	Sep. 16, 2016	Aug. 23, 2016	Jun. 17, 2016	May 20, 2016	Jan. 29, 2016	Dec. 31, 2015	Dec. 11, 2015	Nov. 13, 2015	Sep. 11, 2015	Aug. 21, 2015	Jun. 24, 2015	May 27, 2015	Jan. 21, 2015	Dec. 23, 2014	Dec. 10, 2014	Nov. 13, 2014	Sep. 24, 2014	Aug. 28, 2014	Jun. 17, 2014	May 23, 2014
Dividends
Dividend per Share, declared		$ 0.35		$ 0.36		$ 0.45		$ 0.45		$ 0.60		$ 0.42		$ 0.38		$ 0.38		$ 0.36		$ 0.36		$ 0.24		$ 0.19
Dividend per Share, paid	$ 0.35		$ 0.36		$ 0.45		$ 0.45		$ 0.60		$ 0.42		$ 0.38		$ 0.38		$ 0.36		$ 0.36		$ 0.24		$ 0.19

Stockholders_ Equity - Manager

Stockholders’ Equity - Manager Equity Incentive (Details) - Manager	Jan. 08, 2016$ / sharesshares	Dec. 31, 2016item
Equity incentive
Percentage of shares of common stock issued and outstanding on a fully diluted basis		5.00%
Number of awards issued in connection with the Private Offering or Preferred Offering | item		0
Incentive Distribution Fee
Equity incentive
Number of shares issued (shares) | shares	27,199
Share Price | $ / shares	$ 17.74

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic earnings per common share:
Net income from continued operations	$ 27,881	$ 9,569	$ 8,724	$ 9,390	$ 10,541	$ 13,091	$ 11,024	$ 10,765	$ 55,564	$ 45,421	$ 35,393
Loss from discontinued operations									(2,158)	(653)	(2,671)
Less: Net income attributable to non-controlling interest									4,237	4,385	3,385
Net income (loss) allocated to common shareholders									$ 49,169	$ 40,383	$ 29,337
Basic weighted average common shares outstanding									26,647,981	25,287,277	24,595,199
Earnings (loss) per share
Continuing operations									$ 1.93	$ 1.62	$ 1.30
Discontinued operations									$ (0.08)	$ (0.03)	$ (0.11)

Earnings per Common Share - Ope

Earnings per Common Share - Operating Partnership Units (Details) - Operating Partnership - Noncontrolling OP unit holders - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Noncontrolling interest
Number of common shares issued for each OP unit redeemed by a noncontrolling interest unit holder	1
Units held by noncontrolling interest unit holders	2,349,561	2,268,120	2,839,749
Ownership interest of the Operating Partnership (as a percent)	7.10%	8.10%	10.40%

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Segment reporting
Number of Reportable Segments | item									4
Interest income
Loans, held-for-investment									$ 117,049	$ 120,664	$ 76,078
Loans, held at fair value									13,457	16,210	12,040
Loans, held for sale, at fair value									1,627
Mortgage backed securities, at fair value									4,890	12,081	4,829
Total interest income									137,023	148,955	92,947
Interest expense
Borrowings under credit facilities									(9,495)	(8,194)	(8,858)
Promissory note payable									(164)
Securitized debt obligations of consolidated VIEs									(17,619)	(11,018)	(3,857)
Borrowings under repurchase agreements									(16,344)	(16,287)	(4,254)
Guaranteed loan financing									(13,971)	(12,307)	(2,276)
Exchangeable senior notes									(179)
Total interest expense									(57,772)	(47,806)	(19,245)
Net interest income before provision for loan losses									79,251	101,149	73,702
Provision for loan losses									(7,819)	(19,643)	(11,797)
Net interest income after provision for loan losses	$ 13,882	$ 17,305	$ 18,864	$ 21,381	$ 21,651	$ 21,930	$ 18,643	$ 19,282	71,432	81,506	61,905
Other income (expense)
Other income									10,565	14,431	8,081
Servicing income									8,658	5,133	2,456
Gain on bargain purchase									15,218
Employee compensation and benefits									(24,665)	(18,801)	(12,791)
Allocated employee compensation and benefits from related party									(3,668)	(3,323)	(2,364)
Professional fees									(13,420)	(6,954)	(6,339)
Management fees – related party									(7,432)	(7,260)	(7,019)
Incentive fees – related party										(965)
Loan servicing (expense) income									(4,611)	(4,384)	(10,300)
Other operating expenses									(17,939)	(12,065)	(10,837)
Total other income (expense)	2,703	(11,863)	(12,332)	(9,685)	(9,169)	(8,821)	(9,148)	(7,050)	(37,294)	(34,188)	(39,113)
Net realized gain (loss) on financial instruments									15,996	181	7,037
Net unrealized gain on financial instruments									15,081	5,732	6,461
Net income from continued operations before income tax provisions									65,215	53,231	36,290
Provision for income taxes									(9,651)	(7,810)	(897)
Net income from continuing operations	27,881	9,569	8,724	9,390	10,541	13,091	11,024	10,765	55,564	45,421	35,393
Loss from discontinued operations									(2,158)	(653)	(2,671)
Net income	26,074	9,569	8,724	9,039	8,919	13,278	12,733	9,838	53,406	44,768	32,722
Less: Net income attributable to non-controlling interest									4,237	4,385	3,385
Net income attributable to Sutherland Asset Management Corporation	24,054	$ 8,792	$ 8,021	$ 8,302	8,246	$ 11,985	$ 11,408	$ 8,744	49,169	40,383	29,337
Total Assets	2,605,267				2,318,456				2,605,267	2,318,456	1,672,121
Loan Acquisitions
Interest income
Loans, held-for-investment									67,345	65,937	45,071
Loans, held at fair value									2,230	3,791	877
Loans, held for sale, at fair value									299
Mortgage backed securities, at fair value									4,890	12,081	4,829
Total interest income									74,764	81,809	50,777
Interest expense
Borrowings under credit facilities									(6,827)	(3,249)	(1,340)
Promissory note payable									(164)
Securitized debt obligations of consolidated VIEs									(16,161)	(10,036)	(3,857)
Borrowings under repurchase agreements									(9,280)	(11,482)	(4,151)
Exchangeable senior notes									(179)
Total interest expense									(32,611)	(24,767)	(9,348)
Net interest income before provision for loan losses									42,153	57,042	41,429
Provision for loan losses									(6,484)	(13,153)	(10,205)
Net interest income after provision for loan losses									35,669	43,889	31,224
Other income (expense)
Other income									4,377	2,021	418
Servicing income									47	418	656
Gain on bargain purchase									15,218
Employee compensation and benefits									(337)
Allocated employee compensation and benefits from related party									(1,642)	(1,944)	(1,078)
Professional fees									(8,549)	(2,757)	(2,972)
Management fees – related party									(4,521)	(4,170)	(3,800)
Incentive fees – related party										(488)
Loan servicing (expense) income									(3,356)	(5,210)	(9,521)
Other operating expenses									(5,606)	(3,090)	(1,990)
Total other income (expense)									(4,369)	(15,220)	(18,287)
Net realized gain (loss) on financial instruments									(1,067)	2,048	8,521
Net unrealized gain on financial instruments									4,190	(4,474)	635
Net income from continued operations before income tax provisions									34,423	26,243	22,093
Provision for income taxes									256
Net income from continuing operations									34,679	26,243	22,093
Total Assets	1,484,772				1,383,289				1,484,772	1,383,289	1,167,172
SBC Conventional Originations
Interest income
Loans, held-for-investment									3,287	162	587
Loans, held at fair value									11,227	12,379	11,163
Loans, held for sale, at fair value									619
Total interest income									15,133	12,541	11,750
Interest expense
Borrowings under credit facilities									(143)		(4,059)
Borrowings under repurchase agreements									(7,064)	(4,805)	(103)
Total interest expense									(7,207)	(4,805)	(4,162)
Net interest income before provision for loan losses									7,926	7,736	7,588
Provision for loan losses									(21)
Net interest income after provision for loan losses									7,905	7,736	7,588
Other income (expense)
Other income									3,597	2,273	3,824
Servicing income									520	152
Employee compensation and benefits									(9,359)	(9,291)	(8,044)
Allocated employee compensation and benefits from related party									(1,220)	(1,204)	(1,018)
Professional fees									(1,537)	(879)	(723)
Management fees – related party									(1,480)	(1,681)	(1,824)
Incentive fees – related party										(1)
Loan servicing (expense) income									(735)	(625)	(231)
Other operating expenses									(6,864)	(5,573)	(3,692)
Total other income (expense)									(17,078)	(16,829)	(11,708)
Net realized gain (loss) on financial instruments									3,378	(3,184)	(3,134)
Net unrealized gain on financial instruments									6,830	10,206	5,826
Net income from continued operations before income tax provisions									1,035	(2,071)	(1,428)
Provision for income taxes									1,102	2,011	(897)
Net income from continuing operations									2,137	(60)	(2,325)
Total Assets	170,161				190,036				170,161	190,036	95,927
SBA Loan Origination, Acquisition, and Servicing
Interest income
Loans, held-for-investment									46,417	54,565	30,420
Loans, held at fair value										40
Total interest income									46,417	54,605	30,420
Interest expense
Borrowings under credit facilities									(1,968)	(4,945)	(3,459)
Securitized debt obligations of consolidated VIEs									(1,458)	(982)
Guaranteed loan financing									(13,971)	(12,307)	(2,276)
Total interest expense									(17,397)	(18,234)	(5,735)
Net interest income before provision for loan losses									29,020	36,371	24,685
Provision for loan losses									(1,314)	(6,490)	(1,592)
Net interest income after provision for loan losses									27,706	29,881	23,093
Other income (expense)
Other income									1,176	10,137	3,839
Servicing income									5,555	4,563	1,800
Employee compensation and benefits									(9,391)	(9,510)	(4,747)
Allocated employee compensation and benefits from related party									(806)	(175)	(268)
Professional fees									(3,693)	(3,318)	(2,644)
Management fees – related party									(1,294)	(1,409)	(1,395)
Incentive fees – related party										(476)
Loan servicing (expense) income									479	1,451	(548)
Other operating expenses									(3,798)	(3,402)	(5,155)
Total other income (expense)									(11,772)	(2,139)	(9,118)
Net realized gain (loss) on financial instruments									4,603	1,317	1,650
Net income from continued operations before income tax provisions									20,537	29,059	15,625
Provision for income taxes									(7,453)	(9,821)
Net income from continuing operations									13,084	19,238	15,625
Total Assets	597,193				$ 745,131				597,193	$ 745,131	$ 409,022
Residential Mortgage Banking
Interest income
Loans, held for sale, at fair value									709
Total interest income									709
Interest expense
Borrowings under credit facilities									(557)
Total interest expense									(557)
Net interest income before provision for loan losses									152
Net interest income after provision for loan losses									152
Other income (expense)
Other income									1,415
Servicing income									2,536
Employee compensation and benefits									(5,578)
Professional fees									359
Management fees – related party									(137)
Loan servicing (expense) income									(999)
Other operating expenses									(1,671)
Total other income (expense)									(4,075)
Net realized gain (loss) on financial instruments									9,082
Net unrealized gain on financial instruments									4,061
Net income from continued operations before income tax provisions									9,220
Provision for income taxes									(3,556)
Net income from continuing operations									5,664
Total Assets	$ 353,141								$ 353,141

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	Mar. 15, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Total Assets			$ 11,325
Liabilities:
Total Liabilities			6,886
Other income (expense)
Commission income		$ 2,984	16,208	$ 14,641
Property management income		263	2,034	1,802
Other		16	386	353
Total other income		3,263	18,628	16,796
Employee compensation and benefits		(1,071)	(5,038)	(4,921)
Professional fees		(138)	(599)	(470)
Management fees - related party				(54)
Acquisition costs				(379)
Commission expense		(1,844)	(10,596)	(9,236)
Technology expense		(171)	(871)	(458)
Rent expense		(268)	(1,607)	(965)
Tax expense		(3)	(33)	(19)
Recruiting, training, and travel expenses		(46)	(164)	(399)
Marketing expense		(29)	(70)	(624)
Insurance expense				(98)
Other		(536)	(3,103)	(1,844)
Total other operating expenses		(2,897)	(16,444)	(14,022)
Loss on sale		(2,695)	(1,650)
Loss before income tax benefit		(3,538)	(5,103)	(2,671)
Income tax benefit		1,380	4,450
Loss from discontinued operations		(2,158)	(653)	$ (2,671)
Silverthread | Discontinued operations sold
Discontinued operations
Payment received	$ 1,700
Silverthread | Discontinued operations sold | Receivable from Third Parties
Discontinued operations
Consideration from sale of discontinued operations		$ 4,000
Silverthread | Discontinued operations held-for-sale
Assets:
Cash and cash equivalents			1,073
Sales commission receivable			3,261
Fixed assets			1,060
Prepaid insurance expense			37
Security deposit			99
Other			207
Goodwill			5,588
Total Assets			11,325
Liabilities:
Accrued salaries, wages and commissions			2,783
Contingent liabilities related to business combinations			3,424
Other			679
Total Liabilities			$ 6,886

Quarterly Financial Data (Detai

Quarterly Financial Data (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Jun. 30, 2015USD ($)$ / shares	Mar. 31, 2015USD ($)$ / shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Interest income	$ 32,741	$ 31,890	$ 34,526	$ 37,866	$ 38,812	$ 39,646	$ 38,117	$ 32,380
Net interest income after provision for loan losses	13,882	17,305	18,864	21,381	21,651	21,930	18,643	19,282	$ 71,432	$ 81,506	$ 61,905
Other income (expense)	2,703	(11,863)	(12,332)	(9,685)	(9,169)	(8,821)	(9,148)	(7,050)	(37,294)	(34,188)	(39,113)
Net income from continuing operations	27,881	9,569	8,724	9,390	10,541	13,091	11,024	10,765	55,564	45,421	35,393
Net Income	26,074	9,569	8,724	9,039	8,919	13,278	12,733	9,838	53,406	44,768	32,722
Net income attributable to Sutherland Asset Management Corporation	$ 24,054	$ 8,792	$ 8,021	$ 8,302	$ 8,246	$ 11,985	$ 11,408	$ 8,744	$ 49,169	$ 40,383	$ 29,337
Earnings per share - Basic and diluted | $ / shares	$ 0.83	$ 0.34	$ 0.31	$ 0.32	$ 0.32	$ 0.48	$ 0.46	$ 0.36
Conversion ratio									0.8356

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	Mar. 15, 2017	Feb. 28, 2017	Jan. 31, 2017	Feb. 13, 2017
ReadyCap | 7.50% Senior Secured Notes | Subsequent event
Subsequent Event
Face amount				$ 75
Interest rate (as a percent)				7.50%
Deutsche Bank AG | Borrowings under repurchase agreements | Subsequent event
Subsequent Event
Maximum advance amount		$ 275
Deutsche Bank AG | Borrowings under repurchase agreements | LIBOR | Minimum | Subsequent event
Subsequent Event
Debt Instrument, Basis Spread on Variable Rate		2.50%
Deutsche Bank AG | Borrowings under repurchase agreements | LIBOR | Maximum | Subsequent event
Subsequent Event
Debt Instrument, Basis Spread on Variable Rate		3.25%
UBS | Borrowings under repurchase agreements | Subsequent event
Subsequent Event
Maximum advance amount			$ 65
UBS | Borrowings under repurchase agreements | LIBOR | Subsequent event
Subsequent Event
Debt Instrument, Basis Spread on Variable Rate			2.30%
Discontinued operations sold | Silverthread
Subsequent Event
Payment received	$ 1.7
Discontinued operations sold | Silverthread | Subsequent event
Subsequent Event
Consideration from sale of discontinued operations		$ 4
Payment received	$ 1.7

Schedule IV _ Mortgage Loans128

Schedule IV – Mortgage Loans on Real Estate (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)
Schedule IV – Mortgage Loans on Real Estate
Number of Loans that exceed one percent of total carrying amount | loan	0
Percentage of total carrying amount of all mortgages	1
Reconcile mortgage loans on real estate
Balance at beginning	$ 1,716,072	$ 1,087,496
Origination of loan receivables	936,682	452,280
Purchases of loan receivables	98,683	172,097
Loans acquired in connection with reverse merger	189,197
Proceeds from disposition and principal payment of loan receivables	(1,125,919)	(488,611)
Net realized gain (loss) on sale of loan receivables	20,691	4,878
Net unrealized gain (loss) on loan receivables	1,149	9,327
Non-cash proceeds on creation of MSR	(6,117)	(1,024)
Accretion/amortization of discount, premium and other fees	26,809	32,987
Transfers	(951)	(7,913)
Provision for loan losses	(7,819)	(19,643)
Balance at Ending	1,848,477	1,716,072
Loans, held-for-investment
Reconcile mortgage loans on real estate
Balance at beginning	1,560,938	917,482
Origination of loan receivables	167,516	105,838
Purchases of loan receivables	98,683	172,097
Proceeds from disposition and principal payment of loan receivables	(440,294)	(342,807)
Net realized gain (loss) on sale of loan receivables	6,343	2,888
Non-cash proceeds on creation of MSR	(951)
Accretion/amortization of discount, premium and other fees	26,809	32,987
Transfers	173,863	217,898
Provision for loan losses	(7,819)	(19,643)
Balance at Ending	1,585,088	1,560,938
Loans, held for sale, at fair value
Reconcile mortgage loans on real estate
Balance at beginning	155,134	170,014
Origination of loan receivables	147,823	346,442
Proceeds from disposition and principal payment of loan receivables	(39,671)	(145,804)
Net realized gain (loss) on sale of loan receivables	6	1,990
Net unrealized gain (loss) on loan receivables	4,131	9,327
Non-cash proceeds on creation of MSR		(1,024)
Transfers	(185,831)	(225,811)
Balance at Ending	81,592	155,134
Loans, held at fair value
Reconcile mortgage loans on real estate
Origination of loan receivables	621,343
Loans acquired in connection with reverse merger	189,197
Proceeds from disposition and principal payment of loan receivables	(645,954)
Net realized gain (loss) on sale of loan receivables	14,342
Net unrealized gain (loss) on loan receivables	(2,982)
Non-cash proceeds on creation of MSR	(5,166)
Transfers	11,017
Balance at Ending	$ 181,797
ReadyCap
Reconcile mortgage loans on real estate
Loans brought on books as a result of the ReadyCap Lending Small Business Trust 2015-1 Securitization		474,198
ReadyCap | Loans, held-for-investment
Reconcile mortgage loans on real estate
Loans brought on books as a result of the ReadyCap Lending Small Business Trust 2015-1 Securitization		$ 474,198