Front Yard Residential (RESI) 10-Q 22 Oct 13 2013 Q3 Quarterly report Financial data

Document_and_entity_informatio

Document and entity information Document	9 Months Ended
	Sep. 30, 2013	Oct. 15, 2013
Document Information [Abstract]
Entity registrant name	Altisource Residential Corporation
Entity central index key	1555039
Current fiscal year end date	-19
Entity filer category	Smaller Reporting Company
Document type	10-Q
Document period end date	30-Sep-13
Document fiscal year focus	2013
Document fiscal period focus	Q3
Amendment flag	FALSE
Entity common stock, shares outstanding		42,276,057

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Real estate assets, net:
Land	$224	$0
Rental residential properties, net	1,128	0
Real estate owned	14,408	0
Real estate assets, net	15,760	0
Real estate assets held for sale	1,074	0
Mortgage loans	641,903	0
Cash and cash equivalents	98,252	100,005
Restricted cash	3,092	0
Related party receivables	6,272	0
Deferred leasing and financing costs, net	1,744	0
Prepaid expenses and other assets	911	6
Total assets	769,008	100,011
Liabilities:
Repurchase agreements	338,800	0
Accounts payable and accrued liabilities	2,408	46
Related party payables	2,746	54
Total liabilities	343,954	100
Commitments and contingencies (Note 6)
Equity:
Common stock, $.01 par value, 200,000,000 authorized shares; 25,087,236 and 7,810,708 shares issued and outstanding, respectively	251	78
Additional paid-in capital	409,449	99,922
Retained earnings/(accumulated deficit)	15,354	-89
Total equity	425,054	99,911
Total liabilities and equity	$769,008	$100,011

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Equity:
Common stock, par value per share, in USD per share	$0.01	$0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	25,087,236	7,810,708
Common stock, shares outstanding	25,087,236	7,810,708

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Rental revenues and net gain on investments:
Rental revenues	$6	$6
Net unrealized gain on mortgage loans	17,670	25,963
Net realized gain on mortgage loans	1,909	4,015
Total rental revenues and net gain on investments	19,585	29,984
Expenses:
Residential rental property operating expenses	191	275
Real estate depreciation and amortization	4	4
Mortgage loan servicing costs	2,154	3,788
Interest expense	467	1,163
Related party general and administrative	2,039	4,474
General and administrative	1,190	2,690
Total expenses	6,045	12,394
Other income	169	362
Net income	$13,709	$17,952
Earnings per share of common stock b basic:
Earnings per basic share	$0.55	$1.03
Weighted average common stock outstanding b basic	25,078,727	17,484,598
Earnings per share of common stock b diluted:
Earnings per diluted share	$0.53	$0.98
Weighted average common stock outstanding b diluted	25,949,293	18,373,205
Dividend declared per common share	$0.10	$0.10

Consolidated_Statements_of_Equ

Consolidated Statements of Equity (USD $)	Total	Common stock	Additional paid-in capital	Retained earnings/(accumulated deficit)
In Thousands, except Share data, unless otherwise specified
Beginning balance at Jun. 07, 2012	$0	$0	$0	$0
Beginning balance, shares at Jun. 07, 2012		0
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, shares		0
Issuance of common stock, including stock option exercises	500	0	500
Ending balance at Sep. 30, 2012	500	0	500	0
Ending balance, shares at Sep. 30, 2012		0
Beginning balance at Dec. 31, 2012	99,911	78	99,922	-89
Beginning balance, shares at Dec. 31, 2012	7,810,708	7,810,708
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, shares		17,276,528
Issuance of common stock, including stock option exercises	323,503	173	323,330
Cost of issuance of common stock	-13,991		-13,991
Dividends on common stock	-2,509			-2,509
Share-based compensation	188		188
Net income	17,952			17,952
Ending balance at Sep. 30, 2013	$425,054	$251	$409,449	$15,354
Ending balance, shares at Sep. 30, 2013	25,087,236	25,087,236

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	4 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2012	Sep. 30, 2013
Operating activities:
Net income		$17,952
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation	0	188
Net unrealized gain on mortgage loans	0	-25,963
Net realized gain on mortgage loans	0	-4,015
Real estate depreciation and amortization	0	4
Amortization of deferred financing costs	0	630
Changes in operating assets and liabilities:
Related party receivables	0	-527
Prepaid expenses and other assets	0	-213
Accounts payable and accrued liabilities	0	1,103
Related party payables	0	1,174
Net cash used in operating activities	0	-9,667
Investing activities:
Investment in mortgage loans	0	-642,645
Investment in real estate	0	-6,198
Investment in renovations	0	-145
Mortgage loan dispositions and payments	0	15,895
Change in restricted cash	0	-3,092
Net cash used in investing activities	0	-636,185
Financing activities:
Issuance of common stock, including stock option exercises	500	323,619
Cost of issuance of common stock	0	-13,441
Dividends on common stock	0	-2,509
Payment of tax withholdings on exercise of stock options	0	-116
Proceeds from repurchase agreement	0	418,099
Repayments of repurchase agreement	0	-79,299
Payment of deferred financing costs	0	-2,254
Net cash provided by financing activities	500	644,099
Net increase/(decrease) in cash and cash equivalents	500	-1,753
Cash and cash equivalents as of beginning of the period	0	100,005
Cash and cash equivalents as of end of the period	500	98,252
Supplemental disclosure of non-cash investing and financing activity:
Transfer of mortgage loans to real estate owned	0	10,598
Changes in accrued equity issuance costs	0	1,242
Changes in related party receivable from mortgage loan dispositions and repayments	$0	$5,745

Organization_and_basis_of_pres

Organization and basis of presentation	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and basis of presentation	Organization and basis of presentation
	Altisource Residential Corporation was incorporated in Maryland on July 19, 2012, as a wholly owned subsidiary of Altisource. Our business is to acquire and manage single-family rental properties by acquiring portfolios of sub-performing and non-performing residential mortgage loans throughout the United States. Our preferred resolution methodology is to modify the non-performing loans. We believe modification followed by refinancing generates near-term cash flows, provides the highest possible economic outcome for us and is a socially responsible business strategy because it keeps more families in their homes. Considering the seriously delinquent status of the loans we acquire, we expect a majority of the remaining loans to be converted to single-family rental properties that we believe will generate long-term returns for our stockholders.
	On December 21, 2012, which we refer to as the “separation date,” we separated from Altisource and became an independent publicly traded company through the contribution to us by Altisource of $100.0 million and the distribution of our shares of common stock to the shareholders of Altisource. Our shares of common stock began trading “regular way” on the New York Stock Exchange under the symbol “RESI” on December 24, 2012. Subsequent to our separation, we immediately commenced operations.
	We believe our acquisition strategy, multifaceted loan resolution methodologies and access to an established, nationwide renovation, leasing and property management infrastructure will provide us with multiple avenues of value creation and will help us to achieve our business objective of generating attractive risk-adjusted returns for our stockholders through dividends and capital appreciation.
	We conduct substantially all of our activities through our wholly owned subsidiary Altisource Residential L.P., a Delaware limited partnership which we refer to as our “operating partnership.” The operating partnership was organized on June 7, 2012 which we refer to as “inception.” We own 100% of the operating partnership’s general partner and 100% of the outstanding limited partnership interests in our operating partnership.
	We are managed by Altisource Asset Management Corporation which we refer to as “AAMC.” We rely on AAMC for administering our business and performing certain of our corporate governance functions. AAMC also provides portfolio management services in connection with our acquisition of sub-performing and non-performing loans, single-family properties and other assets.
	On the separation date, we entered into long-term service agreements with Ocwen, a leading mortgage loan servicer, and Altisource, a leading provider of real estate and mortgage portfolio management, asset recovery and customer relationship management services.
	We intend to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes beginning the year ending December 31, 2013. One of the requirements of electing and maintaining our qualification as a REIT is that we must distribute at least 90% of our annual REIT taxable income to our shareholders.
	On March 22, 2013, we entered into a master repurchase agreement, which we refer to as the “CS repurchase agreement,” with Credit Suisse First Boston Mortgage Capital LLC to finance the acquisition and ownership of residential mortgage loans and owned properties, which we refer to as "REO Properties." The maximum funding available to us under the CS repurchase agreement is $100.0 million, subject to certain standard sublimits, eligibility requirements and conditions for each funding. The CS repurchase agreement matures on March 21, 2014 subject to extension by us for an additional 12 months.
	On May 1, 2013, we completed a public offering of 17,250,000 shares of common stock at $18.75 per share and received net proceeds of $309.5 million. We have used the net proceeds of this offering to purchase additional sub-performing and non-performing residential mortgage loans, pay servicing fees for our mortgage loan portfolios, renovate the single-family rental properties we acquire, pay rental and property management expenses, pay fees and expenses to AAMC under the asset management agreement and for working capital.
	On September 12, 2013, we entered into a Master Repurchase Agreement, which we refer to as the “DB repurchase agreement,” with Deutsche Bank AG, Cayman Islands Branch to finance the acquisition and ownership of residential mortgage loans and REO Properties. The maximum funding available to us under the DB repurchase agreement is $125.0 million, subject to certain standard sublimits, eligibility requirements and conditions for each funding. The DB repurchase agreement matures on March 11, 2016. After the first 18 months of the DB repurchase agreement, we will not be able to finance mortgage loans in excess of amounts outstanding under the facility as of the end of the eighteenth month.
	On September 23, 2013, we entered into a Master Repurchase Agreement and Securities Contract, which we refer to as the “WF repurchase agreement,” with Wells Fargo Bank, National Association to finance the acquisition and ownership of residential mortgage loans and REO Properties. The maximum funding available to us under the WF repurchase agreement is $200.0 million, subject to certain standard sublimits, eligibility requirements and conditions for each funding. The WF repurchase agreement matures on March 23, 2015, subject to extension by us for an additional 12 months.
	Because we commenced operations on December 21, 2012, we have no comparable results for the three and nine months ended September 30, 2012. Accordingly, we have not included the comparative three and nine month periods from 2012 in our consolidated statement of operations. Additionally, because the operating partnership was organized on June 7, 2012, our consolidated statement of cash flows and consolidated statement of stockholders' equity for the nine months ended September 30, 2012 do not include nine full months of operating activities.
	We ceased to be a development stage enterprise in the second quarter of 2013.
	Basis of presentation and use of estimates
	The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States which we refer to as "U.S. GAAP." All wholly owned subsidiaries are included and all intercompany accounts and transactions have been eliminated. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates.
	The unaudited consolidated financial statements and accompanying unaudited consolidated financial information, in our opinion, contain all adjustments (including normal recurring accruals) necessary for a fair presentation of our financial position, results of operations and cash flows. We have omitted certain notes and other information from the interim consolidated financial statements presented in this Quarterly Report as permitted by SEC rules and regulations. These consolidated financial statements should be read in conjunction with our 2012 annual report on Form 10-K.
	Recently issued accounting standards
	In accordance with ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, beginning in the first quarter of 2013 we are required to provide additional disclosures about the nature of our rights of offset and the related arrangements associated with our financial instruments. As a result, we have included additional disclosures pertaining to the collateral arrangement related to our repurchase agreement in this quarterly report.

Mortgage_loans

Mortgage loans	9 Months Ended
	Sep. 30, 2013
Mortgage Loans on Real Estate [Abstract]
Mortgage loans	Mortgage loans at fair value
	Acquisitions
	During the nine months ended September 30, 2013, we completed the acquisition of the following portfolios of non-performing residential mortgage loans:
	•	On February 14, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $94 million.
	•	On March 21, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $39 million.
	•	On April 5, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $122 million.
	•	On August 6, 2013 and September 19, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $241 million.
	•	On August 26, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $67 million.
	•	On September 30, 2013, a portfolio of first lien residential mortgage loans, substantially all of which are non-performing, having aggregate market value of underlying properties of $404 million.
	Throughout this quarterly report, all unpaid principal balance and market value amounts for the portfolios we have acquired are provided as of “cut-off date” for each transaction unless otherwise indicated. The “cut-off date” for each acquisition is a date shortly before the closing used to identify the final loans being purchased and the related unpaid principal balance, market value of underlying properties and other characteristics of the loans.
	During the three and nine months ended September 30, 2013, we expensed $0.9 million and $1.3 million, respectively, for due diligence costs related to these and other transactions.
	Transfer of mortgage loans to real estate owned
	During the three and nine months ended September 30, 2013, we transferred 43 and 74 mortgage loans, respectively, at fair value based on broker price opinion (BPO), of $6.2 million and $10.6 million, respectively, to real estate owned.
	Dispositions
	During the three and nine months ended September 30, 2013, we disposed of 55 and 93 mortgage loans, respectively, primarily through short sales and foreclosure sales. As a result, we recorded $1.9 million and $4.0 million, respectively, of net realized gains on mortgage loans.

Real_estate_assets_net

Real estate assets, net	9 Months Ended
	Sep. 30, 2013
Real Estate [Abstract]
Real estate assets, net	Real estate assets, net
	Acquisitions
	During the three and nine months ended September 30, 2013, we acquired 34 and 40 residential properties, respectively, which are classified as real estate owned on our balance sheet. These REO Properties were acquired as part of the loan portfolio acquisitions described above and were converted to properties upon foreclosure of the mortgage loans prior to the acquisition closing date. The aggregate purchase price attributable to these properties was $5.9 million and $6.2 million, respectively.
	Real estate held for sale
	As of September 30, 2013, we classified 14 properties having carrying value of $1.1 million as real estate held for sale because we intend to sell properties which do not meet our residential rental property investment criteria. The real estate held for sale balance is composed solely of real estate owned. These properties have had no significant operations, and, therefore, we are not presenting discontinued operations related to these properties.

Fair_value_of_financial_instru

Fair value of financial instruments	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Fair value of financial instruments	Fair value of financial instruments
	The following table sets forth the financial assets and liabilities that we measure at fair value by level within the fair value hierarchy as of September 30, 2013 ($ in thousands):
		Level 1			Level 2			Level 3
		Quoted prices in active markets			Observable inputs other than Level 1 prices			Unobservable inputs
	Recurring basis (assets)
	Mortgage loans	$	—		$	—		$	641,903
	Nonrecurring basis (assets)
	Transfer of mortgage loans to real estate owned	$	—		$	—		$	10,598
	Not recognized on consolidated balance sheets at fair value (liabilities)
	Repurchase agreements at fair value	$	—		$	338,800		$	—
	There were no corresponding financial assets or liabilities measured at fair value as of December 31, 2012 because we did not own any mortgage loans or residential properties at that time. Additionally, there have been no transfers between levels for the three and nine months ended September 30, 2013.
	The carrying values of our cash and cash equivalents, restricted cash, related party receivables, accounts payable and accrued liabilities and related party payables are equal to or approximate fair value. The fair value of transfers of mortgage loans to real estate owned is estimated using broker price opinions. The fair value of the repurchase agreements is estimated using the income approach based on credit spreads available to us currently in the market for similar floating rate debt.
	The following table sets forth the changes in our level 3 assets that are measured at fair value on a recurring basis ($ in thousands):
		Three months ended September 30, 2013				Nine months ended September 30, 2013
	Mortgage loans
	Beginning balance	$	163,520			$	—
	Investment in mortgage loans	475,998				644,163
	Net unrealized gain on mortgage loans	17,670				25,963
	Net realized gain on mortgage loans	1,909				4,015
	Mortgage loan payments	(999		)		(2,616		)
	Mortgage loan dispositions	(9,996		)		(19,024		)
	Transfer of mortgage loans to real estate owned	(6,199		)		(10,598		)
	Ending balance	$	641,903			$	641,903
	Net unrealized gain on mortgage loans held	$	17,670			$	25,963
	Accumulated net unrealized gain on mortgage loans held	$	25,963			$	25,963
	There was no corresponding activity for level 3 assets for the three and nine months ended September 30, 2012 because we did not own any such assets at that time.
	The following table sets forth the fair value of our mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency as of September 30, 2013 ($ in thousands):
		Number of loans		Carrying value			Unpaid principal balance			Market value of underlying properties
	Current	167		$	19,953		$	38,052		$	32,599
	30	33		3,113			6,605			5,147
	60	21		3,401			5,731			5,249
	90	1,013		162,127			284,243			239,480
	Foreclosure	3,786		453,309			829,265			658,265
	Mortgage loans	5,020		$	641,903		$	1,163,896		$	940,740
	We did not hold any corresponding mortgage loans as of December 31, 2012.
	The significant unobservable inputs used in the fair value measurement of our mortgage loans are discount rates, home prices, alternate loan resolution probabilities and timelines. Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value of an asset. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics such as location and value of underlying collateral affect the loan resolution probabilities and timelines. An increase in the loan resolution timeline in isolation would decrease the fair value. The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our mortgage loans as of September 30, 2013:
	Input	Range
	Discount rate	15.00%
	Annual change in home pricing index	-1.8% to 4.6%
	Loan resolution probabilities — modification	0% to 22.3%
	Loan resolution probabilities — rental	0% to 100.0%
	Loan resolution probabilities — liquidation	0% to 100.0%
	Loan resolution timelines	1 to 67 months
	Value of underlying properties	$4,500 to $2.8 million
	There were no corresponding fair value measurements which required significant unobservable inputs as of December 31, 2012 because we did not own any such assets at that time.

Repurchase_agreement

Repurchase agreement	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]
Repurchase agreement	Repurchase agreements
	Our operating partnership has entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans and REO properties in our portfolio. We have effective control of the assets associated with these agreements and therefore have concluded these are financing arrangements. As of September 30, 2013, the weighted average annualized interest rate on borrowing under our repurchase agreements was 3.08%. The following table sets forth data with respect to our repurchase agreements as of September 30, 2013 ($ in thousands):
		Maximum borrowing capacity		Book value of collateral		Amount outstanding
	Repurchase agreement due March 21, 2014	$	100,000	$	165,790	$	87,916
	Repurchase agreement due March 23, 2015	200,000		270,219		176,583
	Repurchase agreement due March 11, 2016	125,000		130,833		74,301
		$	425,000	$	566,842	$	338,800
	Under the terms of the repurchase agreements, as collateral for the funds we draw thereunder, the operating partnership will sell to the lender the underlying mortgage assets or equity interests in our statutory trust subsidiaries that own the mortgage assets on our behalf. In the event the lender determines the value of the collateral has decreased, it has the right to initiate a margin call and require us to post additional collateral or to repay a portion of the outstanding borrowings. The price paid by the lender for each mortgage asset we finance under the repurchase agreements is based on a percentage of the market value of the mortgage asset and may depend on its delinquency status. With respect to funds drawn under the repurchase agreements, the operating partnership is required to pay the lender interest at the lender's cost of funds plus a spread calculated based on the type of applicable mortgage assets collateralizing the funding, as well as certain other customary fees, administrative costs and expenses to maintain and administer the repurchase agreements.
	The repurchase agreements require us to maintain various financial and other covenants, including maintaining a minimum adjusted tangible net worth, a maximum ratio of indebtedness to adjusted tangible net worth and specified levels of unrestricted cash as well as restrictions on net losses in excess of specified amounts. In addition, the repurchase agreements contain customary events of default. We are restricted by the terms of our repurchase agreements from paying dividends greater than our REIT taxable income in a calendar year.
	We are currently in compliance with the covenants and other requirements with respect to the repurchase agreements. We monitor our banking partners' ability to perform under the repurchase agreements and have concluded there is currently no reason to doubt that they will continue to perform under the repurchase agreements as contractually obligated.

Commitments_and_contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies
	On December 21, 2012, we entered into a subscription agreement to invest $18.0 million in the non-voting preferred stock of NewSource Reinsurance Company Ltd., a title insurance and reinsurance company, which we refer to herein as “NewSource.” No amounts have been invested as of September 30, 2013, and, therefore, the commitment remains $18.0 million as of September 30, 2013.
	Litigation, claims and assessments
	We are not currently the subject of any material legal or regulatory proceedings, and no legal or regulatory proceedings have been threatened against us. We may be involved, from time to time, in legal proceedings that arise in the ordinary course of business.

Related_party_transactions

Related party transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]
Related party transactions	Related party transactions
	During the nine months ended September 30, 2013, we acquired a portfolio from Ocwen of non-performing first lien residential mortgage loans having aggregate market value of underlying properties of $94 million. The aggregate purchase price for this portfolio was $64.4 million.
	Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands):
		Three months ended September 30, 2013		Nine months ended September 30, 2013		Counter-party	Consolidated Statements of Operations location
	Residential rental property operating expenses	$	138	$	246	Altisource	Residential rental property operating expenses (paid by Residential)
	Mortgage loan servicing costs	$	2,134	$	3,335	Ocwen	Mortgage loan servicing costs (paid by Residential)
	Due diligence and dead deal costs	$	651	$	1,004	Altisource	Related party general and administrative expenses
	Expense reimbursements	$	1,307	$	3,371	AAMC	Related party general and administrative expenses
	Management incentive fee	$	51	$	51	AAMC	Related party general and administrative expenses
	There were no corresponding related party transactions from June 7, 2012 (inception) to September 30, 2012.

Sharebased_payments

Share-based payments	9 Months Ended
	Sep. 30, 2013
Share-Based Payments [Abstract]
Share-based Payments	Share-based payments
	During the nine months ended September 30, 2013, we granted 16,355 shares of stock pursuant to our 2013 Director Equity Plan with weighted average grant date fair value per share of $18.47. Of these shares, 4,265 were issued in connection with our directors' service on the board from January 24, 2013 to our 2013 annual meeting of stockholders and the remaining 12,090 are expected to be issued for their service from the 2013 annual meeting to the 2014 annual meeting of stockholders. During the three months ended September 30, 2013, we granted no share-based payments. As of September 30, 2013, we had an aggregate of $0.1 million of total unrecognized share-based compensation costs which will be recognized over a weighted average remaining estimated term of 0.67 years.

Income_taxes

Income taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Income taxes	Income taxes
	To qualify as a REIT, we must meet certain organizational and operational requirements including the requirement to distribute at least 90% of our annual REIT taxable income to our shareholders. As a REIT, we generally will not be subject to federal income tax to the extent we distribute our REIT taxable income to our shareholders and provided we satisfy the REIT requirements including certain asset, income, distribution and stock ownership tests. If we fail to qualify as a REIT, and do not qualify for certain statutory relief provisions, we will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which we lost our REIT qualification. Accordingly, our failure to qualify as a REIT could have a material adverse impact on our results of operations and amounts available for distribution to our shareholders.
	A REIT's dividend paid deduction for qualifying dividends to its shareholders is computed using its taxable income as opposed to net income reported on the consolidated financial statements. Taxable income, generally, will differ from net income reported on the consolidated financial statements because the determination of taxable income is based on tax regulations and not financial accounting principles.
	We may elect to treat certain of our future subsidiaries as taxable REIT subsidiaries which we refer to as “TRS." In general, a TRS may hold assets and engage in activities that the REIT cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes.
	As of September 30, 2013, we did not have any unrecognized tax benefits. Additionally, we did not accrue interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the year. Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2012.

Earnings_per_share

Earnings per share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Earnings Per Share	Earnings per share
	The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts):
		Three months ended September 30, 2013		Nine months ended September 30, 2013
	Numerator
	Net income	$	13,709	$	17,952
	Denominator
	Weighted average common stock outstanding – basic	25,078,727		17,484,598
	Stock options using the treasury method	870,566		888,607
	Weighted average common stock outstanding – diluted	25,949,293		18,373,205
	Earnings per basic share	$	0.55	$	1.03
	Earnings per diluted share	$	0.53	$	0.98
	Stock options excluded from the calculation of diluted earnings per share because inclusion would have been anti-dilutive	—		—

Segment_information

Segment information	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]
Segment information	Segment information
	Our primary business is the acquisition and ownership of single-family rental assets. Our primary sourcing strategy is to acquire these assets by purchasing sub-performing and non-performing mortgages. As a result, we operate in a single segment focused on the resolution of sub-performing and non-performing mortgages with the intent to modify as many loans as possible to keep borrowers in their homes or own the collateral which is suitable as long-term rental properties.

Subsequent_events_Notes

Subsequent events (Notes)	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]
Subsequent Events	Subsequent events
	On October 1, 2013, we completed a public offering of 17,187,000 shares of common stock at $21.00 per share and received net proceeds of $349.4 million. We have used a portion of the net proceeds of this offering to purchase additional sub-performing and non-performing residential mortgage loans and to fund our investment in NewSource, as described below. We intend to use the remaining proceeds of this offering to purchase additional portfolios of mortgage loans, pay servicing fees for our mortgage loan portfolios, renovate the single-family rental properties we acquire, pay rental and property management expenses, pay fees and expenses to AAMC under the asset management agreement and for working capital.
	On October 17, 2013, we invested $18.0 million in the non-voting preferred stock of NewSource.
	On October 21, 2013, we consummated the remainder of our previously announced mortgage loan acquisition. We purchased 1,100 first lien residential mortgage loans, substantially all of which are non-performing, having an aggregate market value of underlying properties of $298 million.

Fair_value_of_financial_instru1

Fair value of financial instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Fair value measurements, recurring and nonrecurring	The following table sets forth the financial assets and liabilities that we measure at fair value by level within the fair value hierarchy as of September 30, 2013 ($ in thousands):
		Level 1			Level 2			Level 3
		Quoted prices in active markets			Observable inputs other than Level 1 prices			Unobservable inputs
	Recurring basis (assets)
	Mortgage loans	$	—		$	—		$	641,903
	Nonrecurring basis (assets)
	Transfer of mortgage loans to real estate owned	$	—		$	—		$	10,598
	Not recognized on consolidated balance sheets at fair value (liabilities)
	Repurchase agreements at fair value	$	—		$	338,800		$	—
Fair value, assets measured on recurring basis, unobservable input reconciliation	The following table sets forth the changes in our level 3 assets that are measured at fair value on a recurring basis ($ in thousands):
		Three months ended September 30, 2013				Nine months ended September 30, 2013
	Mortgage loans
	Beginning balance	$	163,520			$	—
	Investment in mortgage loans	475,998				644,163
	Net unrealized gain on mortgage loans	17,670				25,963
	Net realized gain on mortgage loans	1,909				4,015
	Mortgage loan payments	(999		)		(2,616		)
	Mortgage loan dispositions	(9,996		)		(19,024		)
	Transfer of mortgage loans to real estate owned	(6,199		)		(10,598		)
	Ending balance	$	641,903			$	641,903
	Net unrealized gain on mortgage loans held	$	17,670			$	25,963
	Accumulated net unrealized gain on mortgage loans held	$	25,963			$	25,963
Delinquency by unpaid principal balance	The following table sets forth the fair value of our mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency as of September 30, 2013 ($ in thousands):
		Number of loans		Carrying value			Unpaid principal balance			Market value of underlying properties
	Current	167		$	19,953		$	38,052		$	32,599
	30	33		3,113			6,605			5,147
	60	21		3,401			5,731			5,249
	90	1,013		162,127			284,243			239,480
	Foreclosure	3,786		453,309			829,265			658,265
	Mortgage loans	5,020		$	641,903		$	1,163,896		$	940,740
Fair value measurements, recurring and nonrecurring, valuation techniques	The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our mortgage loans as of September 30, 2013:
	Input	Range
	Discount rate	15.00%
	Annual change in home pricing index	-1.8% to 4.6%
	Loan resolution probabilities — modification	0% to 22.3%
	Loan resolution probabilities — rental	0% to 100.0%
	Loan resolution probabilities — liquidation	0% to 100.0%
	Loan resolution timelines	1 to 67 months
	Value of underlying properties	$4,500 to $2.8 million
	There were no corresponding fair value measurements which required significant unobservable inputs as of December 31, 2012 because we did not own any such assets at that time.

Repurchase_agreement_Repurchas

Repurchase agreement Repurchase agreements (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]
Schedule of Debt	The following table sets forth data with respect to our repurchase agreements as of September 30, 2013 ($ in thousands):
		Maximum borrowing capacity		Book value of collateral		Amount outstanding
	Repurchase agreement due March 21, 2014	$	100,000	$	165,790	$	87,916
	Repurchase agreement due March 23, 2015	200,000		270,219		176,583
	Repurchase agreement due March 11, 2016	125,000		130,833		74,301
		$	425,000	$	566,842	$	338,800

Related_party_transactions_Tab

Related party transactions (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]
Schedule of related party transactions	Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands):
		Three months ended September 30, 2013		Nine months ended September 30, 2013		Counter-party	Consolidated Statements of Operations location
	Residential rental property operating expenses	$	138	$	246	Altisource	Residential rental property operating expenses (paid by Residential)
	Mortgage loan servicing costs	$	2,134	$	3,335	Ocwen	Mortgage loan servicing costs (paid by Residential)
	Due diligence and dead deal costs	$	651	$	1,004	Altisource	Related party general and administrative expenses
	Expense reimbursements	$	1,307	$	3,371	AAMC	Related party general and administrative expenses
	Management incentive fee	$	51	$	51	AAMC	Related party general and administrative expenses

Earnings_per_share_Tables

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Schedule of Calculation of Numerator and Denominator in Earnings Per Share	The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts):
		Three months ended September 30, 2013		Nine months ended September 30, 2013
	Numerator
	Net income	$	13,709	$	17,952
	Denominator
	Weighted average common stock outstanding – basic	25,078,727		17,484,598
	Stock options using the treasury method	870,566		888,607
	Weighted average common stock outstanding – diluted	25,949,293		18,373,205
	Earnings per basic share	$	0.55	$	1.03
	Earnings per diluted share	$	0.53	$	0.98
	Stock options excluded from the calculation of diluted earnings per share because inclusion would have been anti-dilutive	—		—

Organization_and_basis_of_pres1

Organization and basis of presentation (Details) (USD $)

0 Months Ended

3 Months Ended

4 Months Ended

6 Months Ended

9 Months Ended

1-May-13

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Mar. 22, 2013

Sep. 30, 2013

Sep. 12, 2013

Sep. 30, 2013

Sep. 23, 2013

Secured Debt [Member]

Secured Debt [Member]

Secured Debt [Member]

Secured Debt [Member]

Secured Debt [Member]

Secured Debt [Member]

Secured Debt [Member]

Repurchase agreement due March 21, 2014

Repurchase agreement due March 21, 2014

Repurchase agreement due March 11, 2016

Repurchase agreement due March 11, 2016

Repurchase agreement due March 23, 2015

Repurchase agreement due March 23, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Proceeds from contributed capital

$100,000,000

Ownership percentage in general partner of the operating partnership

100.00%

100.00%

Ownership interest in operating partnerhip

100.00%

100.00%

Minimum distribution percentage of REIT taxable income

90.00%

90.00%

Maximum borrowing capacity

425,000,000

100,000,000

100,000,000

125,000,000

125,000,000

200,000,000

200,000,000

Sale of Stock, Number of Shares Issued in Transaction

17,250,000

Sale of Stock, Price Per Share

$18.75

Issuance of common stock, including stock option exercises

$309,500,000

$500,000

$323,619,000

Mortgage_loans_Details

Mortgage loans (Details) (USD $)	3 Months Ended	4 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
	property		property
Mortgage loans at fair value [Line Items]
Number of real estate properties acquired through foreclosure	43		74
Transfer of mortgage loans to real estate owned		$0	$10,598,000
Number of mortgage loans liquidated	55		93
Net realized gain on mortgage loans	1,909,000	0	4,015,000
Residential mortgage [Member] | Loans receivable [Member]
Mortgage loans at fair value [Line Items]
Due diligence costs	900,000		1,300,000
Transfer of mortgage loans to real estate owned	6,200,000		10,598,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage loans on real estate, Pool one [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			94,200,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage loans on real estate, Pool two [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			38,700,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage Loans on Real Estate, Pool three [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			122,100,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage Loans on Real Estate, Pool four [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			241,200,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage Loans on Real Estate, Pool five [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			67,300,000
Residential mortgage [Member] | Loans receivable [Member] | Mortgage Loans on Real Estate, Pool six [Member]
Mortgage loans at fair value [Line Items]
Loans acquired, aggregate collateral market value			$403,600,000

Real_estate_assets_net_Compone

Real estate assets, net - Components of real estate assets (Details) (USD $)	3 Months Ended	4 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
	property		property
Real Estate [Abstract]
Number of real estate properties directly acquired	34		40
Real estate directly acquired	$5,900	$0	$6,198
Number of real estate properties held for sale	14		14
Real estate assets held for sale	$1,074		$1,074	$0

Fair_value_of_financial_instru2

Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Fair value, inputs, level 1 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Repurchase agreements at fair value	$0
Fair value, inputs, level 2 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Repurchase agreements at fair value	338,800
Fair value, inputs, level 3 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Repurchase agreements at fair value	0
Fair value measurements, recurring [Member] | Fair value, inputs, level 1 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Mortgage loans	0
Fair value measurements, recurring [Member] | Fair value, inputs, level 2 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Mortgage loans	0
Fair value measurements, recurring [Member] | Fair value, inputs, level 3 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Mortgage loans	641,903
Fair value measurements, nonrecurring [Member] | Fair value, inputs, level 1 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Transfer of mortgage loans to real estate owned	0
Fair value measurements, nonrecurring [Member] | Fair value, inputs, level 2 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Transfer of mortgage loans to real estate owned	0
Fair value measurements, nonrecurring [Member] | Fair value, inputs, level 3 [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Transfer of mortgage loans to real estate owned	$10,598

Fair_value_of_financial_instru3

Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) (USD $)	3 Months Ended	4 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net unrealized gain on mortgage loans	$17,670	$0	$25,963
Fair value, inputs, level 3 [Member] | Loans receivable [Member] | Residential mortgage [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	163,520		0
Investment in mortgage loans	475,998		644,163
Net unrealized gain on mortgage loans	17,670		25,963
Net realized gain on mortgage loans	1,909		4,015
Mortgage loan payments	-999		-2,616
Mortgage loan dispositions	-9,996		-19,024
Transfer of mortgage loans to real estate owned	-6,199		-10,598
Ending balance	641,903		641,903
Net unrealized gain on mortgage loans	17,670		25,963
Accumulated net unrealized gains on mortgage loans at fair value still held	$25,963		$25,963

Fair_value_of_financial_instru4

Fair value of financial instruments - Fair value by delinquency (details) (Residential portfolio segment [Member], Loans receivable [Member], Residential mortgage [Member], USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	loan
Residential portfolio segment [Member] | Loans receivable [Member] | Residential mortgage [Member]
Number of loans
Current	167
30	33
60	21
90	1,013
Foreclosure	3,786
Mortgage loans, number of loans	5,020
Carrying value
Current	$19,953
30	3,113
60	3,401
90	162,127
Foreclosure	453,309
Mortgage loans	641,903
Unpaid principal balance
Current	38,052
30	6,605
60	5,731
90	284,243
Foreclosure	829,265
Mortgage loans, unpaid principal balance	1,163,896
Market value of underlying properties
Current	32,599
30	5,147
60	5,249
90	239,480
Financing Receivable, Fair Value of Collateral, Foreclosure	658,265
Mortgage loans, collateral at fair value	$940,740

Fair_value_of_financial_instru5

Fair value of financial instruments - Fair value inputs, quantitative information (Details) (Loans receivable [Member], Residential mortgage [Member], Fair value, inputs, level 3 [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Fair value inputs, assets, quantitative information [Line Items]
Discount rate	15.00%
Minimum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	-1.80%
Loan resolution probabilities b modification	0.00%
Loan resolution probabilities b rental	0.00%
Loan resolution probabilities b liquidation	0.00%
Loan resolution timelines	1 month
Value of underlying properties	4,500
Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	4.60%
Loan resolution probabilities b modification	22.30%
Loan resolution probabilities b rental	100.00%
Loan resolution probabilities b liquidation	100.00%
Loan resolution timelines	67 months
Value of underlying properties	2,800,000

Repurchase_agreement_Details

Repurchase agreement (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Mar. 22, 2013	Sep. 30, 2013	Sep. 23, 2013	Sep. 30, 2013	Sep. 12, 2013
			Secured debt [Member]	Secured debt [Member]	Secured debt [Member]	Secured debt [Member]	Secured debt [Member]	Secured debt [Member]	Secured debt [Member]
				Repurchase agreement due March 21, 2014	Repurchase agreement due March 21, 2014	Repurchase agreement due March 23, 2015	Repurchase agreement due March 23, 2015	Repurchase agreement due March 11, 2016	Repurchase agreement due March 11, 2016
Short-term Debt [Line Items]
Maximum borrowing capacity			$425,000,000	$100,000,000	$100,000,000	$200,000,000	$200,000,000	$125,000,000	$125,000,000
Interest rate			3.08%
Book value of collateral			566,842,000	165,790,000		270,219,000		130,833,000
Repurchase agreements	$338,800,000	$0	$338,800,000	$87,916,000		$176,583,000		$74,301,000

Commitments_and_contingencies_

Commitments and contingencies (Details) (Subscription agreement [Member], Preferred stock [Member], USD $)	Sep. 30, 2013	Dec. 21, 2012
In Millions, unless otherwise specified
Subscription agreement [Member] | Preferred stock [Member]
Other Commitments [Line Items]
Commitment to invest in non-voting preferred stock	$18	$18

Related_party_transactions_Det

Related party transactions (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Affiliated entity [Member] | Ocwen | Loan portfolio expense [Member] | Loan servicing costs [Member]
Related party transaction [Line Items]
Related party expenses	$2,134,000	$3,335,000
Affiliated entity [Member] | Altisource | Operating Expense [Member] | Residential rental property operating expenses [Member]
Related party transaction [Line Items]
Related party expenses	138,000	246,000
Affiliated entity [Member] | Altisource | Related party general and administrative expense [Member] | Due diligence costs [Member]
Related party transaction [Line Items]
Related party expenses	651,000	1,004,000
Affiliated entity [Member] | AAMC | Loan portfolio expense [Member] | Management incentive fees [Member]
Related party transaction [Line Items]
Related party expenses	51,000	51,000
Affiliated entity [Member] | AAMC | Related party general and administrative expense [Member] | Expense reimbursements [Member]
Related party transaction [Line Items]
Related party expenses	1,307,000	3,371,000
Mortgage loans on real estate, Pool one [Member] | Loans receivable [Member] | Residential mortgage [Member] | Ocwen | Acquisition of nonperforming loans [Member]
Related party transaction [Line Items]
Loans acquired from related party, aggregate collateral fair value		94,200,000
Loans acquired from related party, aggregate purchase price		$64,400,000

Sharebased_payments_Details

Share-based payments (Details) (USD $)	9 Months Ended
In Millions, except Share data, unless otherwise specified	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock compensation	$0.10
Unamortized stock compensation period of recognition	8 months
Time based restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director Plan restricted stock grants during period	16,355
Director Plan restricted stock grants during the period, weighted average fair value	$18.47
Vested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director Plan restricted stock grants during period	4,265
Unvested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director Plan restricted stock grants during period	12,090

Income_taxes_Details

Income taxes (Details)	3 Months Ended	6 Months Ended
	Sep. 30, 2013	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Minimum distribution percentage of REIT taxable income	90.00%	90.00%

Earnings_per_share_Details

Earnings per share (Details) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2013	Sep. 30, 2013
Earnings Per Share [Abstract]
Net income	$0	$13,709	$17,952
Weighted average common stock outstanding b basic		25,078,727	17,484,598
Stock options using the treasury method		870,566	888,607
Weighted average common stock outstanding b diluted		25,949,293	18,373,205
Earnings per basic share		$0.55	$1.03
Earnings per diluted share		$0.53	$0.98
Stock options excluded from the calculation of diluted earnings per share because inclusion would have been anti-dilutive		0	0

Subsequent_events_Details

Subsequent events (Details) (USD $)	0 Months Ended	4 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	0 Months Ended
	1-May-13	Sep. 30, 2012	Sep. 30, 2013	Oct. 01, 2013	Sep. 30, 2013	Oct. 21, 2013	Oct. 17, 2013
				Subsequent Event [Member]	Mortgage Loans on Real Estate, Pool six [Member]	Mortgage Loans on Real Estate, Pool six [Member]	Preferred stock [Member]
					Loans receivable [Member]	Loans receivable [Member]	Subsequent Event [Member]
					Residential mortgage [Member]	Residential mortgage [Member]
						Subsequent Event [Member]
						loan
Subsequent Event [Line Items]
Issuance of common stock, shares				17,187,000
Sale of Stock, Price Per Share	$18.75			$21
Proceeds from Issuance of Common Stock	$309,500,000	$500,000	$323,619,000	$349,400,000
Payments to Acquire Other Investments							18,000,000
Number of loans acquired						1,100
Loans acquired, aggregate collateral market value					$403,600,000	$298,000,000