Document_and_entity_informatio
Document and entity information Document | 6 Months Ended | |
Jun. 30, 2014 | Jul. 18, 2014 | |
Document Information [Abstract] | ' | ' |
Entity registrant name | 'Altisource Residential Corporation | ' |
Entity central index key | '0001555039 | ' |
Current fiscal year end date | '--12-31 | ' |
Entity filer category | 'Accelerated Filer | ' |
Document type | '10-Q | ' |
Document period end date | 30-Jun-14 | ' |
Document fiscal year focus | '2014 | ' |
Document fiscal period focus | 'Q2 | ' |
Amendment flag | 'false | ' |
Entity common stock, shares outstanding | ' | 57,162,071 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Real estate held for use: | ' | ' |
Land | $3,875,000 | $478,000 |
Rental residential properties (net of accumulated depreciation of $172 and $24, respectively) | 14,917,000 | 3,092,000 |
Real estate owned | 231,013,000 | 32,332,000 |
Total real estate held for use, net | 249,805,000 | 35,902,000 |
Real estate assets held for sale | 27,572,000 | 1,186,000 |
Mortgage loans | 2,024,028,000 | 1,207,163,000 |
Mortgage loans held for investment | 144,009,000 | 0 |
Cash and cash equivalents | 130,758,000 | 115,988,000 |
Restricted cash | 10,269,000 | 5,878,000 |
Accounts receivable | 631,000 | 1,428,000 |
Related party receivables | 12,608,000 | 9,260,000 |
Investment in affiliate | 18,000,000 | 18,000,000 |
Deferred leasing and financing costs, net | 3,457,000 | 2,293,000 |
Prepaid expenses and other assets | 260,000 | 1,542,000 |
Total assets | 2,621,397,000 | 1,398,640,000 |
Liabilities: | ' | ' |
Repurchase agreements | 1,271,483,000 | 602,382,000 |
Accounts payable and accrued liabilities | 7,459,000 | 4,952,000 |
Related party payables | 31,947,000 | 5,879,000 |
Total liabilities | 1,310,889,000 | 613,213,000 |
Commitments and contingencies (Note 6) | 0 | 0 |
Equity: | ' | ' |
Common stock, $.01 par value, 200,000,000 authorized shares; 57,162,071 and 42,286,669 shares issued and outstanding, at June 30, 2014 and December 31, 2013, respectively | 572,000 | 423,000 |
Additional paid-in capital | 1,226,939,000 | 758,584,000 |
Retained earnings | 82,997,000 | 26,420,000 |
Total equity | 1,310,508,000 | 785,427,000 |
Total liabilities and equity | $2,621,397,000 | $1,398,640,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Real Estate Investment Property, Accumulated Depreciation | $172 | $24 |
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 | 57,162,071 | 42,286,669 |
Common stock, shares outstanding | 57,162,071 | 42,286,669 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Rental revenues and net gain on mortgage loans: | ' | ' | ' | ' |
Rental revenues | $181 | $0 | $250 | $0 |
Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 |
Net realized gain on mortgage loans | 10,819 | 1,719 | 20,140 | 2,106 |
Total rental revenues and net gain on mortgage loans | 116,042 | 8,884 | 190,562 | 10,399 |
Expenses: | ' | ' | ' | ' |
Residential property operating expenses | 3,253 | 84 | 4,303 | 84 |
Real estate depreciation and amortization | 103 | 0 | 151 | 0 |
Mortgage loan servicing costs | 16,925 | 1,242 | 28,362 | 1,634 |
Interest expense | 6,945 | 654 | 12,653 | 696 |
General and administrative | 5,687 | 714 | 7,079 | 1,701 |
Related party general and administrative | 17,467 | 1,156 | 30,099 | 2,234 |
Total expenses | 50,380 | 3,850 | 82,647 | 6,349 |
Other income | 1,698 | 193 | 1,806 | 193 |
Income before income taxes | 67,360 | 5,227 | 109,721 | 4,243 |
Income tax (benefit) expense | -422 | 0 | 26 | 0 |
Net income | $67,782 | $5,227 | $109,695 | $4,243 |
Earnings per share of common stock b basic: | ' | ' | ' | ' |
Earnings per basic share | $1.19 | $0.27 | $1.98 | $0.31 |
Weighted average common stock outstanding b basic | 57,138,695 | 19,374,601 | 55,297,630 | 13,624,599 |
Earnings per share of common stock b diluted: | ' | ' | ' | ' |
Earnings per diluted share | $1.18 | $0.26 | $1.97 | $0.29 |
Weighted average common stock outstanding b diluted | 57,401,953 | 20,259,184 | 55,754,685 | 14,522,227 |
Dividends declared per common share | $0.45 | $0 | $0.93 | $0 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common stock | Additional paid-in capital | Retained earnings |
In Thousands, except Share data, unless otherwise specified | ||||
Beginning balance at Dec. 31, 2012 | $99,911 | $78 | $99,922 | ($89) |
Beginning balance, shares at Dec. 31, 2012 | ' | 7,810,708 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Issuance of common stock, shares | ' | 17,256,496 | ' | ' |
Issuance of common stock, including stock option exercises | 323,427 | 173 | 323,254 | ' |
Cost of issuance of common stock | -13,934 | ' | -13,934 | ' |
Share-based compensation | 98 | ' | 98 | ' |
Net income | 4,243 | ' | ' | 4,243 |
Ending balance at Jun. 30, 2013 | 413,745 | 251 | 409,340 | 4,154 |
Ending balance, shares at Jun. 30, 2013 | ' | 25,067,204 | ' | ' |
Beginning balance at Dec. 31, 2013 | 785,427 | 423 | 758,584 | 26,420 |
Beginning balance, shares at Dec. 31, 2013 | 42,286,669 | 42,286,669 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Issuance of common stock, shares | ' | 14,875,402 | ' | ' |
Issuance of common stock, including stock option exercises | 483,606 | 149 | 483,457 | ' |
Cost of issuance of common stock | -15,215 | ' | -15,215 | ' |
Dividends on common stock | -53,118 | ' | ' | -53,118 |
Share-based compensation | 113 | ' | 113 | ' |
Net income | 109,695 | ' | ' | 109,695 |
Ending balance at Jun. 30, 2014 | 1,310,508 | 572 | 1,226,939 | 82,997 |
Ending balance, shares at Jun. 30, 2014 | 57,162,071 | 57,162,071 | ' | ' |
Beginning balance at Mar. 31, 2014 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Share-based compensation | ' | ' | 100 | ' |
Net income | 67,782 | ' | ' | ' |
Ending balance at Jun. 30, 2014 | $1,310,508 | ' | $1,226,939 | ' |
Ending balance, shares at Jun. 30, 2014 | 57,162,071 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income | $109,695 | $4,243 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Share-based compensation | 113 | 98 |
Net unrealized gain on mortgage loans | -170,172 | -8,293 |
Gains (Losses) on Sales of Other Real Estate | -1,293 | 0 |
Depreciation, Depletion, Amortization and Other Noncash Expense | 3,373 | 0 |
Net realized gain on mortgage loans | -20,140 | -2,106 |
Amortization of deferred financing costs | 1,171 | 322 |
Changes in operating assets and liabilities: | ' | ' |
Increase (Decrease) in Accounts and Other Receivables | 797 | 0 |
Related party receivables | 4,952 | 400 |
Prepaid expenses and other assets | -180 | -113 |
Accounts payable and accrued liabilities | 1,072 | 397 |
Related party payables | 26,068 | 447 |
Net cash used in operating activities | -44,544 | -4,605 |
Investing activities: | ' | ' |
Investment in mortgage loans | -1,056,493 | -168,165 |
Investment in real estate | -27,569 | -278 |
Investment in renovations | -1,700 | -22 |
Real Estate Tax Advances | -14,368 | 0 |
Proceeds from Sale of Loans Held-for-investment | 70,379 | 5,940 |
Payments for (Proceeds from) Loans and Leases | 7,951 | 1,122 |
Proceeds from Sale of Wholly Owned Real Estate and Real Estate Acquired in Settlement of Loans | 3,466 | 0 |
Increase (Decrease) in Earnest Money Deposits Outstanding | 0 | -20,142 |
Change in restricted cash | -4,391 | 0 |
Net cash used in investing activities | -1,022,725 | -181,545 |
Financing activities: | ' | ' |
Issuance of common stock, including stock option exercises | 487,142 | 323,427 |
Payment of tax withholdings on exercise of stock options | -3,536 | -24 |
Cost of issuance of common stock | -15,215 | -13,253 |
Dividends on common stock | -53,118 | 0 |
Proceeds from repurchase agreement | 749,240 | 79,761 |
Repayments of repurchase agreement | -80,139 | -79,289 |
Payment of deferred financing costs | -2,335 | -1,162 |
Net cash provided by financing activities | 1,082,039 | 309,460 |
Net increase in cash and cash equivalents | 14,770 | 123,310 |
Cash and cash equivalents as of beginning of the period | 115,988 | 100,005 |
Cash and cash equivalents as of end of the period | 130,758 | 223,315 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest Paid | 10,496 | 375 |
Transfer of mortgage loans to real estate owned | 221,000 | 4,399 |
Transfer of real estate owned to mortgage loans | 3,594 | 0 |
Changes in accrued equity issuance costs | 1,746 | 663 |
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances to borrowers, net | $4,796 | $3,583 |
Organization_and_basis_of_pres
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and basis of presentation | ' |
Altisource Residential Corporation is a Maryland REIT formed in 2012. We are focused on acquiring, owning and managing single-family rental properties throughout the United States. We acquire our rental properties primarily through the acquisition of sub-performing and non-performing mortgage loan portfolios, which is a differentiated approach that we believe strategically positions us to take advantage of market opportunities better than market participants that are solely focused on real estate-owned (“REO”) acquisitions. We conduct substantially all of our activities through our wholly owned subsidiary Altisource Residential, L.P. | |
Our principal objective is to generate attractive risk-adjusted returns for our stockholders over the long term through dividends and capital appreciation. We believe that the events affecting the housing and mortgage market in recent years have created a significant rental demand for single-family properties. These events have also created a large supply of distressed mortgage loans for sale in the market. We believe we have an opportunity to acquire single-family properties through the acquisition of sub-performing and non-performing loan portfolios at attractive valuations. We expect our integrated approach of acquiring sub-performing and non-performing residential mortgage loans and converting them to rental properties will enable us to compete more effectively for attractive investment opportunities. | |
On December 21, 2012, which we refer to as the “separation date,” we separated from Altisource Portfolio Solutions S.A. | |
("Altisource") and became a stand-alone publicly traded company through the contribution to us by Altisource of $100 million of equity capital and the distribution of our shares of common stock to the stockholders of Altisource. On the separation date, we entered into long-term service agreements with Ocwen Financial Corporation ("Ocwen"), a leading residential mortgage loan servicer, and with Altisource, a leading provider of real estate and mortgage portfolio management, asset recovery and customer relationship management services. We believe that our access to Ocwen’s servicing expertise and multifaceted resolution methodologies helps us maximize the value of our loan portfolios and provides us with a competitive advantage over other companies with a similar focus. We also believe that our relationship with Altisource and access to its nationwide vendor network enables us to competitively bid on large sub-performing or non-performing residential mortgage loan portfolios with assets dispersed throughout the United States. | |
We are managed by Altisource Asset Management Corporation ("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 and management of sub-performing and non-performing loans and REO properties. AAMC was formed on March 15, 2012 as a wholly owned subsidiary of Altisource and was spun off from Altisource into a stand-alone publicly traded company concurrently with our separation from Altisource. | |
Since our separation from Altisource, we have completed three public equity offerings with aggregate net proceeds of approximately $1.1 billion. 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 approximately $309.5 million. On October 1, 2013, we completed our second public offering of 17,187,000 shares of common stock at $21.00 per share and received net proceeds of $349.4 million. On January 22, 2014, we completed our third public offering of 14,200,000 shares of common stock at $34.00 per share and received net proceeds of approximately $467.6 million. | |
On March 22, 2013, September 12, 2013 and September 23, 2013, we entered into three separate repurchase agreements to finance the acquisition and ownership of residential mortgage loans and REO properties. The maximum aggregate funding available under each of these repurchase agreements was increased at least one time. | |
For the repurchase agreement entered into on March 22, 2013, we amended it on April 21, 2014 to initially increase the aggregate maximum borrowing capacity from $100.0 million to $200.0 million. The maturity date of the repurchase agreement was also extended to April 20, 2015 subject to an additional one-year extension with the approval of the lender. On June 11, 2014, we further amended this repurchase agreement to increase the aggregate maximum borrowing capacity from $200.0 million to $375.0 million, subject to certain sublimits, for the period from June 11, 2014 through October 11, 2014. The aggregate borrowing capacity under the repurchase agreement will revert to $200.0 million after October 11, 2014. | |
The repurchase agreement dated September 12, 2013, as amended on December 18, 2013, has an aggregate funding capacity of $250.0 million and matures on March 11, 2016. This agreement includes a provision that, beginning in the nineteenth month, we will not be able to finance mortgage loans in excess of amounts outstanding under the facility at the end of the eighteenth month. | |
For the repurchase agreement dated September 23, 2013, we amended it on December 23, 2013 to initially increase the aggregate maximum borrowing capacity from $200.0 million to $400.0 million. On June 25, 2014, we further amended this repurchase agreement to increase the aggregate maximum borrowing capacity from $400.0 million to $1.0 billion, subject to certain sublimits. The maturity date of the repurchase agreement is March 23, 2015. We have the option to extend this agreement for an additional year with no additional funding. | |
Following the amendments to our repurchase agreements, the maximum aggregate funding available to us under these repurchase agreements as of June 30, 2014 was $1.7 billion, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of June 30, 2014, an aggregate of $1.3 billion was outstanding under our repurchase agreements. All obligations under the repurchase agreements are fully guaranteed by us. | |
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 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 2013 annual report on Form 10-K. | |
Loans held for investment | |
Loans held for investment consist of re-performing residential mortgage loans acquired from others. We do not originate loans. Each acquired loan is evaluated at acquisition to determine if the loan is impaired. | |
Acquired distressed re-performing residential mortgage loans that have evidence of deteriorated credit quality at the time of acquisition are accounted for in accordance with the provisions of ASC Topic 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Under ASC Topic 310-30, we estimate cash flows expected to be collected, adjusted for expected prepayments and defaults. At each balance sheet date, we evaluate the pool of loans to determine whether the present value derived using the effective interest rate has decreased and, if so, recognize a provision for loan loss. For any significant increases in cash flows expected to be collected, we adjust the amount of accretable yield recognized on a prospective basis over the pool’s remaining life. | |
Recently issued accounting standards | |
In January 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-04, Troubled Debt Restructurings by Creditors. It provides that a repossession or foreclosure has occurred, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The amended guidance may be applied using either a prospective transition method or a modified retrospective transition method and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. We do not expect this amendment to have a significant effect on our financial position or results of operations since our accounting policies and disclosures are currently consistent with the requirements set forth in the amendment. | |
In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We are currently evaluating the impact of this amendment on our financial position and results of operations. |
Mortgage_loans
Mortgage loans | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Mortgage Loans on Real Estate [Abstract] | ' | |||
Mortgage loans | ' | |||
Acquisitions of non-performing residential mortgage loans | ||||
During the quarter ended June 30, 2014, we agreed to acquire an aggregate of 3,269 non-performing loans with an aggregate market value of underlying properties of $900.3 million. On June 27, 2014, we acquired 1,116 of these non-performing loans with an aggregate market value of underlying properties of $375.3 million for an aggregate purchase price of $235.0 million. On May 1, 2014, we also completed the acquisition of a portfolio of 664 non-performing mortgage loans and REO properties with an aggregate property value of $126.6 million for an aggregate purchase price of $92.7 million. We had previously agreed to purchase an aggregate of 915 non-performing mortgage loans and REO properties in this portfolio in March 2014. Subject to satisfactory due diligence results and final agreement on terms, we anticipate completing the acquisition of the remaining portions of these portfolios in the third quarter of 2014. | ||||
During the six months ended June 30, 2014, our total completed acquisitions consisted of an aggregate of 5,797 residential mortgage loans, substantially all of which were non-performing, and 190 REO properties having an aggregate UPB of approximately $1.6 billion and an aggregate market value of underlying properties of $1.4 billion. The aggregate purchase price for these acquisitions was $940.5 million. | ||||
During the three and six months ended June 30, 2014, we recognized $2.4 million and $2.9 million respectively, for due diligence costs related to these and other transactions in general and administrative and related party general and administrative expense. | ||||
During the six months ended June 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 were non-performing, having an 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 were non-performing, having an aggregate market value underlying properties of $39 million. | |||
• | On April 5, 2013, a portfolio of first lien residential mortgage loans, substantially all of which were non-performing, having an aggregate market value of underlying properties of $122 million. | |||
During the three and six months ended June 30, 2013, we expensed $0.1 million and $0.4 million, respectively, for due diligence costs related to these and other transactions. | ||||
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. | ||||
Acquisition of loans held for investment | ||||
During the three and six months ended June 30, 2014, we agreed to acquire an aggregate of 1,105 re-performing loans with an aggregate market value of underlying properties of $327.9 million. On June 27, 2014, we acquired 879 of these re-performing loans with an aggregate market value of underlying properties of $271.1 million for an aggregate purchase price of $144.6 million. Subject to satisfactory due diligence results and final agreement on terms, we anticipate completing the acquisition of the remaining portions of this portfolio in the third quarter of 2014. | ||||
Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. The re-performing residential mortgage loans acquired in June 2014 have common risk characteristics and are being accounted for as a single loan pool. Under ASC 310-30 we estimate cash flows expected to be collected, adjusted for expected prepayments and defaults. For the three and six months ended June 30, 2014, we recognized no provision for loan loss nor any adjustments to the amount of the accretable yield. | ||||
The purchase price of the loans acquired during the three months ended June 30, 2014 is considered to be the fair value at the time of acquisition. The following table presents information regarding the estimates of the contractually required payments and the cash flows expected to be collected ($ in thousands): | ||||
30-Jun-14 | ||||
Contractually required principal and interest | $ | 325,000 | ||
Non-accretable yield | (96,263 | ) | ||
Expected cash flows to be collected | 228,737 | |||
Accretable yield | (84,728 | ) | ||
Fair value at the date of acquisition | $ | 144,009 | ||
Transfer of mortgage loans to real estate owned | ||||
During the three months ended June 30, 2014 and 2013, we transferred 907 and 33 mortgage loans, respectively, to REO at an aggregate fair value based on broker price opinions ("BPOs") of $124.4 million and $4.2 million, respectively. Such transfers occur when the foreclosure sale is complete. | ||||
During the six months ended June 30, 2014 and 2013, we transferred 1,544 and 34 mortgage loans, respectively, to REO at an aggregate fair value based on BPOs, of $221.0 million and $4.4 million, respectively. | ||||
Dispositions | ||||
During the three months ended June 30, 2014 and 2013, we disposed of 135 and 28 mortgage loans, respectively, primarily through short sales, refinancing, and foreclosure sales. In connection with these dispositions, we recorded $10.8 million and $1.7 million, respectively, of net realized gains on mortgage loans. | ||||
During the six months ended June 30, 2014 and 2013, we disposed of 251 and 38 mortgage loans, respectively, primarily through short sales, refinancing, and foreclosure sales. In connection with these dispositions, we recorded $20.1 million and $2.1 million, respectively, of net realized gains on mortgage loans. |
Real_estate_assets_net
Real estate assets, net | 6 Months Ended |
Jun. 30, 2014 | |
Real Estate [Abstract] | ' |
Real estate assets, net | ' |
Acquisitions | |
During the three and six months ended June 30, 2014, we acquired 190 REO properties as part of our portfolio acquisitions. During the six months ended June 30, 2013, we acquired six REO properties. We acquired no REO properties during the three months ended June 30, 2013. The aggregate purchase price attributable to these acquired REO properties was $27.6 million in the first six months of 2014 and $0.3 million in the first six months of 2013. | |
Real estate held for use | |
As of June 30, 2014, we had 1,766 REO properties held for use. Of these properties, 102 had been rented, 40 were being listed for rent and 140 were in varying stages of renovation. With respect to the remaining 1,484 REO properties, we will make a final determination whether each property meets our rental profile after (a) applicable state redemption periods have expired, (b) the foreclosure sale has been ratified, (c) we have recorded the deed for the property, (d) utilities have been activated and (e) we have secured access for interior inspection. A majority of the REO properties are subject to state regulations which require us to await the expiration of a redemption period before a foreclosure can be finalized. We include these redemption periods in our portfolio pricing which generally reduces the price we pay for the mortgage loans. Once the redemption period expires, we immediately proceed to record the new deed, take possession of the property, activate utilities, and start the inspection process in order to make our final determination. As of December 31, 2013, we had 246 REO properties held for use. Of these properties, 14 had been rented, 11 were being listed for rent and 18 were in various stages of renovation. With respect to the remaining 203 REO properties, we were in the process of determining whether these properties would meet our rental profile. As of June 30, 2013, we had 40 REO properties held for use, for all of which we were in the process of determining whether the properties would meet our rental profile. If a REO property meets our rental profile, we determine the extent of renovations that are needed to generate an optimal rent and maintain consistency of renovation specifications for future branding. If we determine that the REO property will not meet our rental profile, we list the property for sale, in certain instances after renovations are made to optimize the sale proceeds. | |
Real estate held for sale | |
As of June 30, 2014, we classified 192 REO properties having an aggregate carrying value of $27.6 million as real estate held for sale as they do not meet our residential rental property investment criteria. As of December 31, 2013, we had 16 REO properties having an aggregate carrying value of $1.2 million held for sale, and as of June 30, 2013, we had eight REO properties having an aggregate carrying value of $0.9 million held for sale. None of these REO properties have any operations; therefore, we are not presenting discontinued operations related to these properties. | |
Dispositions | |
During the three and six months ended June 30, 2014, we disposed of 22 and 24 residential properties, respectively. We did not dispose of any residential properties during the six months ended June 30, 2013. |
Fair_value_of_financial_instru
Fair value of financial instruments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of financial instruments | ' | |||||||||||||||
Fair value of financial instruments | ||||||||||||||||
The following table sets forth the financial assets and liabilities that we measure at fair value by level within the fair value hierarchy as of June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Quoted prices in active markets | Observable inputs other than Level 1 prices | Unobservable inputs | ||||||||||||||
30-Jun-14 | ||||||||||||||||
Recurring basis (assets) | ||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 2,024,028 | ||||||||||
Nonrecurring basis (assets) | ||||||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 28,710 | ||||||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 3,594 | ||||||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 220,971 | ||||||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||||||
Mortgage loans held for investment | $ | — | $ | — | $ | 144,009 | ||||||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||||||
Repurchase agreements at fair value | $ | — | $ | 1,271,483 | $ | — | ||||||||||
31-Dec-13 | ||||||||||||||||
Recurring basis (assets) | ||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,207,163 | ||||||||||
Nonrecurring basis (assets) | ||||||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 1,520 | ||||||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 31,014 | ||||||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||||||
Repurchase agreements at fair value | $ | — | $ | 602,382 | $ | — | ||||||||||
We have not transferred any assets from one level to another level during the three or six months ended June 30, 2014. Additionally there have been no transfers between levels for the year ended December 31, 2013. | ||||||||||||||||
The carrying values of our cash and cash equivalents, restricted cash, related party receivables, accounts payable and accrued liabilities, related party payables and investment in NewSource are equal to or approximate fair value. The fair value of mortgage loans is estimated using our asset manager's proprietary pricing model. The fair value of transfers of mortgage loans to real estate owned is estimated using BPOs. The purchase price of mortgage loans held for investment which were acquired with evidence of deteriorated credit quality is considered to be the fair value at the time of acquisition. 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 June 30, 2014 | Three months ended June 30, 2013 | Six months ended June 30, 2014 | Six months ended June 30, 2013 | |||||||||||||
Mortgage loans | ||||||||||||||||
Beginning balance | $ | 1,766,142 | $ | 87,670 | $ | 1,207,163 | $ | — | ||||||||
Investment in mortgage loans | 300,503 | 79,908 | 913,011 | 168,165 | ||||||||||||
Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 | ||||||||||||
Net realized gain on mortgage loans | 10,819 | 1,719 | 20,140 | 2,106 | ||||||||||||
Mortgage loan dispositions and payments | (44,314 | ) | (8,699 | ) | (83,772 | ) | (10,645 | ) | ||||||||
Real estate tax advances to borrowers | 4,716 | — | 12,722 | — | ||||||||||||
Transfer of real estate owned to mortgage loans | 5,563 | — | 5,563 | — | ||||||||||||
Transfer of mortgage loans to real estate owned | (124,443 | ) | (4,243 | ) | (220,971 | ) | (4,399 | ) | ||||||||
Ending balance at June 30 | $ | 2,024,028 | $ | 163,520 | $ | 2,024,028 | $ | 163,520 | ||||||||
Net unrealized gain on mortgage loans held | $ | 70,623 | $ | 7,165 | $ | 108,820 | $ | 8,293 | ||||||||
The following table sets forth the fair value of our non-performing mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||||||
30-Jun-14 | ||||||||||||||||
Current | 659 | $ | 85,322 | $ | 152,956 | $ | 146,861 | |||||||||
30 | 43 | 7,100 | 11,177 | 11,420 | ||||||||||||
60 | 32 | 4,875 | 7,007 | 8,117 | ||||||||||||
90 | 2,312 | 384,350 | 635,463 | 587,819 | ||||||||||||
Foreclosure | 9,024 | 1,542,381 | 2,465,697 | 2,097,710 | ||||||||||||
Mortgage loans | 12,070 | $ | 2,024,028 | $ | 3,272,300 | $ | 2,851,927 | |||||||||
31-Dec-13 | ||||||||||||||||
Current | 238 | $ | 31,649 | $ | 60,051 | $ | 52,506 | |||||||||
30 | 26 | 2,087 | 4,492 | 3,763 | ||||||||||||
60 | 23 | 3,376 | 5,683 | 4,738 | ||||||||||||
90 | 1,555 | 245,024 | 419,836 | 355,451 | ||||||||||||
Foreclosure | 6,212 | 925,027 | 1,609,546 | 1,310,439 | ||||||||||||
Mortgage loans | 8,054 | $ | 1,207,163 | $ | 2,099,608 | $ | 1,726,897 | |||||||||
The following table sets forth the carrying value of our re-performing mortgage loans held for investment, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2014. | ||||||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||||||
30-Jun-14 | ||||||||||||||||
Current | 866 | $ | 142,283 | $ | 204,963 | $ | 268,161 | |||||||||
30 | 9 | 1,374 | 1,656 | 2,286 | ||||||||||||
60 | 3 | 161 | 217 | 239 | ||||||||||||
90 | 1 | 191 | 229 | 391 | ||||||||||||
Mortgage loans held for investment | 879 | $ | 144,009 | $ | 207,065 | $ | 271,077 | |||||||||
The significant unobservable inputs used in the fair value measurement of our mortgage loans are discount rates, forecasts of future home prices, alternate loan resolution probabilities, resolution timelines and the value of underlying properties. 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. 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. A decrease in the value of underlying properties 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 June 30, 2014 and December 31, 2013: | ||||||||||||||||
Input | 30-Jun-14 | 31-Dec-13 | ||||||||||||||
Equity discount rate | 15.00% | 15.00% | ||||||||||||||
Debt to asset ratio | 65.00% | 55.00% | ||||||||||||||
Cost of funds | 3.5% over 1 month LIBOR | 3.5% over 1 month LIBOR | ||||||||||||||
Annual change in home pricing index | -0.2% to 7.6% | -0.3% to 7.6% | ||||||||||||||
Loan resolution probabilities — modification | 0% to 22.3% | 0% to 22.3% | ||||||||||||||
Loan resolution probabilities — rental | 0% to 100.0% | 0% to 100.0% | ||||||||||||||
Loan resolution probabilities — liquidation | 0% to 100.0% | 0% to 100.0% | ||||||||||||||
Loan resolution timelines (in years) | 0.1 to 5.3 | 0.1 - 5.8 | ||||||||||||||
Value of underlying properties | $3,000 - $4,100,000 | $3,000 - $3,550,000 |
Repurchase_agreement
Repurchase agreement | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Repurchase agreement | ' | |||||||||
Our operating partnership and certain of its Delaware Statutory Trust subsidiaries, as applicable, have entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans and REO properties in our portfolio. We have effective control of the assets associated with these agreements and therefore have concluded these are financing arrangements. As of June 30, 2014, the weighted average annualized interest rate on borrowings under our repurchase agreements was 3.03%, excluding amortization of deferred financing costs. The following table sets forth data with respect to our repurchase agreements as of June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||
Maximum borrowing capacity | Book value of collateral | Amount outstanding | ||||||||
30-Jun-14 | ||||||||||
Repurchase agreement due April 20, 2015 (1) | $ | 375,000 | $ | 608,977 | $ | 324,381 | ||||
Repurchase agreement due March 23, 2015 | 1,030,000 | 1,145,345 | 731,415 | |||||||
Repurchase agreement due March 11, 2016 | 250,000 | 405,348 | 215,687 | |||||||
$ | 1,655,000 | $ | 2,159,670 | $ | 1,271,483 | |||||
December 31, 2013 | ||||||||||
Repurchase agreement due April 21, 2014 | $ | 100,000 | $ | 166,350 | $ | 85,364 | ||||
Repurchase agreement due March 23, 2015 | $ | 400,000 | $ | 634,234 | $ | 398,602 | ||||
Repurchase agreement due March 11, 2016 | $ | 250,000 | $ | 205,328 | $ | 118,416 | ||||
$ | 750,000 | $ | 1,005,912 | $ | 602,382 | |||||
_____________ | ||||||||||
-1 | The aggregate borrowing capacity under the repurchase agreement will revert to $200.0 million after October 11, 2014. | |||||||||
Under the terms of each repurchase agreement, as collateral for the funds drawn thereunder, subject to certain conditions, our operating partnership will sell to the applicable lender equity interests in the Delaware statutory trust subsidiary that owns the applicable underlying mortgage assets on our behalf, or the trust will sell directly such underlying mortgage assets. 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, or the applicable trust subsidiary, 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, our applicable subsidiary is required to pay the lender interest based on LIBOR or 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. We do not collateralize any of our repurchase facilities with cash. | ||||||||||
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. 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 | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and contingencies | ' |
Litigation, claims and assessments | |
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of June 30, 2014, we were not a party to, and our properties were not subject to, any pending or threatened legal proceedings that individually or in the aggregate, are expected to have a material impact on our financial condition, results of operations or cash flows. |
Related_party_transactions
Related party transactions | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related party transactions | ' | ||||||||
Related party transactions | |||||||||
Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands): | |||||||||
Three months ended June 30, 2014 | Six months ended June 30, 2014 | Counter-party | Consolidated Statements of Operations location | ||||||
2014 | |||||||||
Residential property operating expenses | $ | 3,150 | $ | 4,200 | Altisource | Residential property operating expenses | |||
Mortgage loan servicing costs | 14,942 | 25,432 | Ocwen | Mortgage loan servicing costs | |||||
Due diligence and unsuccessful deal costs | 1,655 | 1,766 | Altisource | Related party general and administrative expenses | |||||
Expense reimbursements | 1,789 | 3,258 | AAMC | Related party general and administrative expenses | |||||
Management incentive fee | 13,715 | 24,626 | AAMC | Related party general and administrative expenses | |||||
Three months ended June 30, 2013 | Six months ended June 30, 2013 | Counter-party | Consolidated Statements of Operations location | ||||||
2013 | |||||||||
Mortgage loan servicing costs | $ | 1,242 | $ | 1,634 | Ocwen | Mortgage loan servicing costs | |||
Due diligence and unsuccessful deal costs | — | 183 | Altisource | Related party general and administrative expenses | |||||
Expense reimbursements | 1,156 | 2,057 | AAMC | Related party general and administrative expenses | |||||
During the six months ended June 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 million. |
Sharebased_payments
Share-based payments | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-based payments | ' |
Share-based payments | |
On December 21, 2012, as part of the separation, we issued stock options under the 2012 Conversion Option Plan and 2012 Special Conversion Option Plan to holders of Altisource stock options to purchase shares of our common stock in a ratio of one share of our common stock to every three shares of Altisource common stock. The options were granted as part of our separation to employees of Altisource and/or Ocwen solely to give effect to the exchange ratio in the separation, and we do not include share-based compensation expense related to these options in our consolidated statements of operations because they are not related to our incentive compensation. | |
Our directors each receive annual grants of restricted stock equal to $45,000 based on the market value of our common stock at the time of the annual stockholders meeting. This restricted stock vests and is issued after a one-year service period subject to each director attending at least 75% of the Board and committee meetings. No dividends are paid on the shares until the award is issued. During the six months ended June 30, 2014 and 2013, we granted 8,245 and 16,355 shares of stock, respectively, pursuant to our 2013 Director Equity Plan with weighted average grant date fair value per share of $27.28 and $18.47, respectively. | |
We recorded $0.1 million and $0.1 million of compensation expense related to these grants for the three and six months ended June 30, 2014, respectively, and recorded $0.1 million for the three and six months ended June 30, 2013. As of both June 30, 2014 and 2013, we had $0.2 million of unrecognized share-based compensation cost remaining with respect to the director grants to be recognized over a weighted average remaining estimated term of 0.9 years. |
Income_taxes
Income taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income taxes | ' |
Income taxes | |
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 stockholders. As a REIT, we generally will not be subject to federal income tax to the extent we distribute our REIT taxable income to our stockholders 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. | |
Based on our 2013 taxable income of $17.7 million, the aggregate minimum distribution to stockholders required to maintain our REIT status was $16.0 million in 2013. Dividends declared and paid per share of common stock aggregated $0.35 for the year ended December 31, 2013, or $13.1 million. On February 20, 2014, our Board of Directors declared a cash dividend of $0.08 per share of common stock, which was paid on March 10, 2014 to all stockholders of record as of the close of business on March 3, 2014. This additional dividend, an aggregate of $4.5 million, was intended to satisfy the requirement that a REIT must distribute at least 90% of its annual REIT taxable income to its stockholders and will be treated as a 2013 distribution for REIT qualification purposes. On March 6, 2014, our Board of Directors declared a quarterly cash dividend of 0.40 per share of common stock, which was paid on March 24, 2014 to all stockholders of record as of the close of business on March 17, 2014. | |
On May 29, 2014, our Board of Directors declared a quarterly cash dividend of 0.45 per share of common stock, which was paid on June 23, 2014 to all stockholders of record as of the close of business on June 9, 2014. We did not declare or pay any dividends during the three and six months ended June 30, 2013. | |
Our consolidated financial statements include the operations of our taxable REIT subsidiary ("TRS"), which is subject to federal, state and local income taxes on its taxable income. Through December 31, 2013, the TRS operated at a cumulative taxable loss, which resulted in our recording a deferred tax asset with a corresponding valuation allowance. The TRS has continued to operate at a cumulative taxable loss through June 30, 2014 which resulted in our recording additional deferred tax assets and a corresponding valuation allowance. As of June 30, 2014, we are forecasting that the TRS will break even for the 2014 fiscal year. | |
We recorded state income tax expense on our consolidated operations for the six months ended June 30, 2014. As a REIT, we may also be subject to federal taxes if we engage in certain types of transactions. | |
As of June 30, 2014 and 2013, we did not accrue interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the six months ended June 30, 2014 and 2013. We recorded nominal state and local tax expense on income and property for the six months ended June 30, 2014. Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2013. |
Earnings_per_share
Earnings per share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
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 June 30, 2014 | Three months ended June 30, 2013 | Six months ended June 30, 2014 | Six months ended June 30, 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income | $ | 67,782 | $ | 5,227 | $ | 109,695 | $ | 4,243 | ||||||||
Denominator | ||||||||||||||||
Weighted average common stock outstanding – basic | 57,138,695 | 19,374,601 | 55,297,630 | 13,624,599 | ||||||||||||
Stock options using the treasury method | 257,110 | 884,583 | 447,936 | 897,628 | ||||||||||||
Restricted stock | 6,148 | — | 9,119 | — | ||||||||||||
Weighted average common stock outstanding – diluted | 57,401,953 | 20,259,184 | 55,754,685 | 14,522,227 | ||||||||||||
Earnings per basic share | $ | 1.19 | $ | 0.27 | $ | 1.98 | $ | 0.31 | ||||||||
Earnings per diluted share | $ | 1.18 | $ | 0.26 | $ | 1.97 | $ | 0.29 | ||||||||
Segment_information
Segment information | 6 Months Ended |
Jun. 30, 2014 | |
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 mortgage loans. As a result, we operate in a single segment focused on the resolution of sub-performing and non-performing mortgages and ownership of rental residential properties. |
Subsequent_events_Notes
Subsequent events (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent events | |
On July 10, 2014, we acquired a portfolio of 46 first lien residential mortgage loans, substantially all of which were non-performing loans in advanced stages of foreclosure, having an aggregate UPB of $7.0 million and an aggregate market value of underlying properties of $5.0 million for an aggregate purchase price of $3.7 million. |
Mortgage_loans_Tables
Mortgage loans (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Mortgage Loans on Real Estate [Abstract] | ' | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | ' | |||
The following table presents information regarding the estimates of the contractually required payments and the cash flows expected to be collected ($ in thousands): | ||||
30-Jun-14 | ||||
Contractually required principal and interest | $ | 325,000 | ||
Non-accretable yield | (96,263 | ) | ||
Expected cash flows to be collected | 228,737 | |||
Accretable yield | (84,728 | ) | ||
Fair value at the date of acquisition | $ | 144,009 | ||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Quoted prices in active markets | Observable inputs other than Level 1 prices | Unobservable inputs | ||||||||||||||
30-Jun-14 | ||||||||||||||||
Recurring basis (assets) | ||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 2,024,028 | ||||||||||
Nonrecurring basis (assets) | ||||||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 28,710 | ||||||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 3,594 | ||||||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 220,971 | ||||||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||||||
Mortgage loans held for investment | $ | — | $ | — | $ | 144,009 | ||||||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||||||
Repurchase agreements at fair value | $ | — | $ | 1,271,483 | $ | — | ||||||||||
31-Dec-13 | ||||||||||||||||
Recurring basis (assets) | ||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,207,163 | ||||||||||
Nonrecurring basis (assets) | ||||||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 1,520 | ||||||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 31,014 | ||||||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||||||
Repurchase agreements at fair value | $ | — | $ | 602,382 | $ | — | ||||||||||
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 June 30, 2014 | Three months ended June 30, 2013 | Six months ended June 30, 2014 | Six months ended June 30, 2013 | |||||||||||||
Mortgage loans | ||||||||||||||||
Beginning balance | $ | 1,766,142 | $ | 87,670 | $ | 1,207,163 | $ | — | ||||||||
Investment in mortgage loans | 300,503 | 79,908 | 913,011 | 168,165 | ||||||||||||
Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 | ||||||||||||
Net realized gain on mortgage loans | 10,819 | 1,719 | 20,140 | 2,106 | ||||||||||||
Mortgage loan dispositions and payments | (44,314 | ) | (8,699 | ) | (83,772 | ) | (10,645 | ) | ||||||||
Real estate tax advances to borrowers | 4,716 | — | 12,722 | — | ||||||||||||
Transfer of real estate owned to mortgage loans | 5,563 | — | 5,563 | — | ||||||||||||
Transfer of mortgage loans to real estate owned | (124,443 | ) | (4,243 | ) | (220,971 | ) | (4,399 | ) | ||||||||
Ending balance at June 30 | $ | 2,024,028 | $ | 163,520 | $ | 2,024,028 | $ | 163,520 | ||||||||
Net unrealized gain on mortgage loans held | $ | 70,623 | $ | 7,165 | $ | 108,820 | $ | 8,293 | ||||||||
Past Due Financing Receivables | ' | |||||||||||||||
The following table sets forth the fair value of our non-performing mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||||||
30-Jun-14 | ||||||||||||||||
Current | 659 | $ | 85,322 | $ | 152,956 | $ | 146,861 | |||||||||
30 | 43 | 7,100 | 11,177 | 11,420 | ||||||||||||
60 | 32 | 4,875 | 7,007 | 8,117 | ||||||||||||
90 | 2,312 | 384,350 | 635,463 | 587,819 | ||||||||||||
Foreclosure | 9,024 | 1,542,381 | 2,465,697 | 2,097,710 | ||||||||||||
Mortgage loans | 12,070 | $ | 2,024,028 | $ | 3,272,300 | $ | 2,851,927 | |||||||||
31-Dec-13 | ||||||||||||||||
Current | 238 | $ | 31,649 | $ | 60,051 | $ | 52,506 | |||||||||
30 | 26 | 2,087 | 4,492 | 3,763 | ||||||||||||
60 | 23 | 3,376 | 5,683 | 4,738 | ||||||||||||
90 | 1,555 | 245,024 | 419,836 | 355,451 | ||||||||||||
Foreclosure | 6,212 | 925,027 | 1,609,546 | 1,310,439 | ||||||||||||
Mortgage loans | 8,054 | $ | 1,207,163 | $ | 2,099,608 | $ | 1,726,897 | |||||||||
The following table sets forth the carrying value of our re-performing mortgage loans held for investment, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2014. | ||||||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||||||
30-Jun-14 | ||||||||||||||||
Current | 866 | $ | 142,283 | $ | 204,963 | $ | 268,161 | |||||||||
30 | 9 | 1,374 | 1,656 | 2,286 | ||||||||||||
60 | 3 | 161 | 217 | 239 | ||||||||||||
90 | 1 | 191 | 229 | 391 | ||||||||||||
Mortgage loans held for investment | 879 | $ | 144,009 | $ | 207,065 | $ | 271,077 | |||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||
Input | 30-Jun-14 | 31-Dec-13 | ||||||||||||||
Equity discount rate | 15.00% | 15.00% | ||||||||||||||
Debt to asset ratio | 65.00% | 55.00% | ||||||||||||||
Cost of funds | 3.5% over 1 month LIBOR | 3.5% over 1 month LIBOR | ||||||||||||||
Annual change in home pricing index | -0.2% to 7.6% | -0.3% to 7.6% | ||||||||||||||
Loan resolution probabilities — modification | 0% to 22.3% | 0% to 22.3% | ||||||||||||||
Loan resolution probabilities — rental | 0% to 100.0% | 0% to 100.0% | ||||||||||||||
Loan resolution probabilities — liquidation | 0% to 100.0% | 0% to 100.0% | ||||||||||||||
Loan resolution timelines (in years) | 0.1 to 5.3 | 0.1 - 5.8 | ||||||||||||||
Value of underlying properties | $3,000 - $4,100,000 | $3,000 - $3,550,000 |
Repurchase_agreement_Repurchas
Repurchase agreement Repurchase agreements (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Schedule of Debt | ' | |||||||||
he following table sets forth data with respect to our repurchase agreements as of June 30, 2014 and December 31, 2013 ($ in thousands): | ||||||||||
Maximum borrowing capacity | Book value of collateral | Amount outstanding | ||||||||
30-Jun-14 | ||||||||||
Repurchase agreement due April 20, 2015 (1) | $ | 375,000 | $ | 608,977 | $ | 324,381 | ||||
Repurchase agreement due March 23, 2015 | 1,030,000 | 1,145,345 | 731,415 | |||||||
Repurchase agreement due March 11, 2016 | 250,000 | 405,348 | 215,687 | |||||||
$ | 1,655,000 | $ | 2,159,670 | $ | 1,271,483 | |||||
December 31, 2013 | ||||||||||
Repurchase agreement due April 21, 2014 | $ | 100,000 | $ | 166,350 | $ | 85,364 | ||||
Repurchase agreement due March 23, 2015 | $ | 400,000 | $ | 634,234 | $ | 398,602 | ||||
Repurchase agreement due March 11, 2016 | $ | 250,000 | $ | 205,328 | $ | 118,416 | ||||
$ | 750,000 | $ | 1,005,912 | $ | 602,382 | |||||
_____________ | ||||||||||
-1 | The aggregate borrowing capacity under the repurchase agreement will revert to $200.0 million after October 11, 2014. | |||||||||
Related_party_transactions_Tab
Related party transactions (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of related party transactions | ' | ||||||||
Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands): | |||||||||
Three months ended June 30, 2014 | Six months ended June 30, 2014 | Counter-party | Consolidated Statements of Operations location | ||||||
2014 | |||||||||
Residential property operating expenses | $ | 3,150 | $ | 4,200 | Altisource | Residential property operating expenses | |||
Mortgage loan servicing costs | 14,942 | 25,432 | Ocwen | Mortgage loan servicing costs | |||||
Due diligence and unsuccessful deal costs | 1,655 | 1,766 | Altisource | Related party general and administrative expenses | |||||
Expense reimbursements | 1,789 | 3,258 | AAMC | Related party general and administrative expenses | |||||
Management incentive fee | 13,715 | 24,626 | AAMC | Related party general and administrative expenses | |||||
Three months ended June 30, 2013 | Six months ended June 30, 2013 | Counter-party | Consolidated Statements of Operations location | ||||||
2013 | |||||||||
Mortgage loan servicing costs | $ | 1,242 | $ | 1,634 | Ocwen | Mortgage loan servicing costs | |||
Due diligence and unsuccessful deal costs | — | 183 | Altisource | Related party general and administrative expenses | |||||
Expense reimbursements | 1,156 | 2,057 | AAMC | Related party general and administrative expenses | |||||
Earnings_per_share_Tables
Earnings per share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, 2014 | Three months ended June 30, 2013 | Six months ended June 30, 2014 | Six months ended June 30, 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income | $ | 67,782 | $ | 5,227 | $ | 109,695 | $ | 4,243 | ||||||||
Denominator | ||||||||||||||||
Weighted average common stock outstanding – basic | 57,138,695 | 19,374,601 | 55,297,630 | 13,624,599 | ||||||||||||
Stock options using the treasury method | 257,110 | 884,583 | 447,936 | 897,628 | ||||||||||||
Restricted stock | 6,148 | — | 9,119 | — | ||||||||||||
Weighted average common stock outstanding – diluted | 57,401,953 | 20,259,184 | 55,754,685 | 14,522,227 | ||||||||||||
Earnings per basic share | $ | 1.19 | $ | 0.27 | $ | 1.98 | $ | 0.31 | ||||||||
Earnings per diluted share | $ | 1.18 | $ | 0.26 | $ | 1.97 | $ | 0.29 | ||||||||
Organization_and_basis_of_pres1
Organization and basis of presentation (Details) (USD $) | 0 Months Ended | 6 Months Ended | 15 Months Ended | ||||||||||||||||||
Jan. 22, 2014 | Oct. 02, 2013 | 1-May-13 | Dec. 21, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 11, 2014 | Apr. 21, 2014 | Dec. 31, 2013 | Mar. 22, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 23, 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] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | |||||||||
Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due March 11, 2016 | Repurchase agreement due March 11, 2016 | Repurchase agreement due March 23, 2015 | Repurchase agreement due March 23, 2015 | Repurchase agreement due March 23, 2015 | Repurchase agreement due March 23, 2015 | |||||||||||
Organization and Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase agreements | ' | ' | ' | ' | $1,271,483,000 | ' | ' | $602,382,000 | $1,271,483,000 | $602,382,000 | $324,381,000 | ' | ' | $85,364,000 | ' | $215,687,000 | $118,416,000 | $731,415,000 | $398,602,000 | ' | ' |
Proceeds from contributed capital | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum distribution percentage of REIT taxable income | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 1,655,000,000 | 750,000,000 | 375,000,000 | 375,000,000 | 200,000,000 | 100,000,000 | 100,000,000 | 250,000,000 | 250,000,000 | 1,030,000,000 | 400,000,000 | 400,000,000 | 200,000,000 |
Sale of Stock, Number of Shares Issued in Transaction | 14,200,000 | 17,187,000 | 17,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share | $34 | $21 | $18.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, including stock option exercises | $467,600,000 | $349,400,000 | $309,500,000 | ' | $487,142,000 | $323,427,000 | $1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage_loans_Narrative_Detai
Mortgage loans Narrative (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||
Jun. 27, 2014 | 1-May-14 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | |
loan | loan | loan | loan | loan | property | loan | loan | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | Residential mortgage [Member] | |
property | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | Loans receivable [Member] | ||||||||
Mortgage loans on real estate, Pool one [Member] | Mortgage loans on real estate, Pool two [Member] | Mortgage loans on real estate, Pool three [Member] | ||||||||||||||
Mortgage loans at fair value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans to be acquired | ' | ' | 915 | 3,269 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of underlying properties collateralizing loans acquired | ' | ' | ' | ' | ' | ' | ' | ' | $375,300,000 | ' | ' | ' | ' | $94,000,000 | $39,000,000 | $122,000,000 |
Due diligence costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 100,000 | 2,900,000 | 400,000 | ' | ' | ' |
Number of loans held for investment to be acquired | ' | ' | ' | ' | ' | 1,105 | 1,105 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of underlying properties collateralizing loans held for investment to be acquired | ' | ' | ' | ' | ' | ' | 327,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans held for investment acquired | 879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of underlying properties collateralizing loans held for investment acquired | 271,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of loans held for investment acquired | 144,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties acquired through foreclosure | ' | ' | ' | 907 | 33 | 1,544 | 1,544 | 34 | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of mortgage loans to real estate owned | ' | ' | ' | 124,400,000 | 4,200,000 | ' | 221,000,000 | 4,399,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of mortgage loans liquidated | ' | ' | ' | 135 | 28 | 251 | 251 | 38 | ' | ' | ' | ' | ' | ' | ' | ' |
Net realized gain on mortgage loans | ' | ' | ' | 10,819,000 | 1,719,000 | ' | 20,140,000 | 2,106,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of underlying properties collateralizing loans to be acquired | ' | ' | ' | 900,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans acquired | 1,116 | ' | ' | ' | ' | 5,797 | 5,797 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of loans acquired | 235,000,000 | ' | ' | ' | ' | ' | 1,056,493,000 | 168,165,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans and real estate properties acquired | ' | 664 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of underlying properties collateralizing loans and real estate acquired | ' | 126,600,000 | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of loans and real estate acquired | ' | 92,700,000 | ' | ' | ' | ' | 940,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties directly acquired | ' | ' | ' | ' | ' | 190 | 190 | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans and real estate acquired | ' | ' | ' | ' | ' | ' | $1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage_loans_Acquisition_for
Mortgage loans Acquisition for loans held for investment (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Mortgage Loans on Real Estate [Abstract] | ' |
Contractually required principal and interest | $325,000 |
Non-accretable yield | -96,263 |
Expected cash flows to be collected | 228,737 |
Accretable yield | -84,728 |
Fair value at the date of acquisition | $144,009 |
Mortgage_loans_Schedule_of_Loa
Mortgage loans Schedule of Loans Acquired (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 27, 2014 | 1-May-14 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
loan | loan | loan | loan | loan | property | property | |
Mortgage Loans on Real Estate [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number Of Loans To Be Acquired | ' | ' | 915 | 3,269 | ' | ' | ' |
Loans Receivable to be Acquired, Collateral Market Value | ' | ' | ' | $900.30 | ' | ' | ' |
Number of loans and real estate properties acquired | ' | 664 | ' | ' | ' | ' | ' |
Loans Receivable and Real Estate Properties, Acquired in Period, Collateral Market Value | ' | $126.60 | ' | ' | ' | $1,400 | ' |
Number of loans acquired | 1,116 | ' | ' | ' | 5,797 | 5,797 | ' |
Number of real estate properties directly acquired | ' | ' | ' | ' | 190 | 190 | 6 |
Real_estate_assets_net_Compone
Real estate assets, net - Components of real estate assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
property | property | loan | property | property | property | property | |
property | |||||||
Real Estate [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties directly acquired | ' | 190 | 190 | 6 | ' | ' | ' |
Real estate directly acquired | ' | ' | $27,569 | $278 | ' | ' | ' |
Number of real estate properties held for sale | ' | ' | ' | 8 | ' | 16 | 192 |
Real estate assets held for sale | $27,572 | $27,572 | $27,572 | $900 | ' | $1,186 | ' |
Number of real estate properties held for use | ' | ' | ' | 40 | 1,766 | 246 | ' |
Number of real estate properties rented | ' | ' | ' | ' | 102 | 14 | ' |
Number of real estate properties listed for rent | ' | ' | ' | ' | 40 | 11 | ' |
Number of real estate properties in various stages of lease preparation | ' | ' | ' | ' | 140 | 18 | ' |
Number of real estate properties under evaluation for rental portfolio | ' | ' | ' | ' | 1,484 | 203 | ' |
Number of real estate properties sold | 22 | 24 | 24 | ' | ' | ' | ' |
Fair_value_of_financial_instru2
Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair value, inputs, level 1 [Member] | Fair value, inputs, level 1 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 3 [Member] | Fair value, inputs, level 3 [Member] | Fair value measurements, recurring [Member] | Fair value measurements, recurring [Member] | Fair value measurements, recurring [Member] | Fair value measurements, recurring [Member] | Fair value measurements, recurring [Member] | Fair value measurements, recurring [Member] | Fair value measurements, nonrecurring [Member] | Fair value measurements, nonrecurring [Member] | Fair value measurements, nonrecurring [Member] | Fair value measurements, nonrecurring [Member] | Fair value measurements, nonrecurring [Member] | Fair value measurements, nonrecurring [Member] | |||||
Fair value, inputs, level 1 [Member] | Fair value, inputs, level 1 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 3 [Member] | Fair value, inputs, level 3 [Member] | Fair value, inputs, level 1 [Member] | Fair value, inputs, level 1 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 2 [Member] | Fair value, inputs, level 3 [Member] | Fair value, inputs, level 3 [Member] | |||||||||||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $2,024,028 | $1,207,163 | ' | ' | ' | ' | ' | ' |
Transfer of mortgage loans to real estate owned | 124,400 | 4,200 | 221,000 | 4,399 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 220,971 | 31,014 |
Mortgage loans held for investment | ' | ' | ' | ' | 0 | ' | 0 | ' | 144,009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 28,710 | 1,520 |
Transfer of real estate owned to mortgage loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 3,594 | ' |
Repurchase agreements at fair value | ' | ' | ' | ' | $0 | $0 | $1,271,483 | $602,382 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_value_of_financial_instru3
Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Transfer of real estate owned to mortgage loans | ' | ' | $3,594 | $0 |
Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 |
Fair value, inputs, level 3 [Member] | Loans receivable [Member] | Residential mortgage [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Net unrealized gain on mortgage loans held | 70,623 | 7,165 | 108,820 | 8,293 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 1,766,142 | 87,670 | 1,207,163 | 0 |
Investment in mortgage loans | 300,503 | 79,908 | 913,011 | 168,165 |
Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 |
Net realized gain on mortgage loans | 10,819 | 1,719 | 20,140 | 2,106 |
Mortgage loan dispositions and payments | -44,314 | -8,699 | -83,772 | -10,645 |
Real estate tax advances to borrowers | 4,716 | 0 | 12,722 | 0 |
Transfer of real estate owned to mortgage loans | 5,563 | 0 | 5,563 | 0 |
Transfer of mortgage loans to real estate owned | -124,443 | -4,243 | -220,971 | -4,399 |
Ending balance | $2,024,028 | $163,520 | $2,024,028 | $163,520 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | loan | loan |
Nonperforming Financing Receivable [Member] | ' | ' |
Number of loans | ' | ' |
Current | 659 | 238 |
30 | 43 | 26 |
60 | 32 | 23 |
90 | 2,312 | 1,555 |
Foreclosure | 9,024 | 6,212 |
Mortgage loans | 12,070 | 8,054 |
Carrying value | ' | ' |
Current | $85,322 | $31,649 |
30 | 7,100 | 2,087 |
60 | 4,875 | 3,376 |
90 | 384,350 | 245,024 |
Foreclosure | 1,542,381 | 925,027 |
Mortgage loans | 2,024,028 | 1,207,163 |
Unpaid principal balance | ' | ' |
Current | 152,956 | 60,051 |
30 | 11,177 | 4,492 |
60 | 7,007 | 5,683 |
90 | 635,463 | 419,836 |
Foreclosure | 2,465,697 | 1,609,546 |
Mortgage loans | 3,272,300 | 2,099,608 |
Market value of underlying properties | ' | ' |
Current | 146,861 | 52,506 |
30 | 11,420 | 3,763 |
60 | 8,117 | 4,738 |
90 | 587,819 | 355,451 |
Foreclosure | 2,097,710 | 1,310,439 |
Mortgage loans | 2,851,927 | 1,726,897 |
Performing Financing Receivable [Member] | ' | ' |
Number of loans | ' | ' |
Current | 866 | ' |
30 | 9 | ' |
60 | 3 | ' |
90 | 1 | ' |
Mortgage loans | 879 | ' |
Carrying value | ' | ' |
Current | 142,283 | ' |
30 | 1,374 | ' |
60 | 161 | ' |
90 | 191 | ' |
Mortgage loans | 144,009 | ' |
Unpaid principal balance | ' | ' |
Current | 204,963 | ' |
30 | 1,656 | ' |
60 | 217 | ' |
90 | 229 | ' |
Mortgage loans | 207,065 | ' |
Market value of underlying properties | ' | ' |
Current | 268,161 | ' |
30 | 2,286 | ' |
60 | 239 | ' |
90 | 391 | ' |
Mortgage loans | $271,077 | ' |
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 $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Fair value inputs, assets, quantitative information [Line Items] | ' | ' |
Equity discount rate | 15.00% | 15.00% |
Fair Value Inputs, Debt to Asset Ratio | 65.00% | 55.00% |
Fair Value Inputs, Interest Rate Over the Reference Rate | 3.50% | 3.50% |
Fair Value Inputs, Reference Rate | '1 month LIBOR | '1 month LIBOR |
Minimum [Member] | ' | ' |
Fair value inputs, assets, quantitative information [Line Items] | ' | ' |
Annual change in home pricing index | -0.20% | -0.30% |
Loan resolution probabilities b modification | 0.00% | 0.00% |
Loan resolution probabilities b rental | 0.00% | 0.00% |
Loan resolution probabilities b liquidation | 0.00% | 0.00% |
Loan resolution timelines (in years) | '1 month | '1 month |
Value of underlying properties | 3,000 | 3,000 |
Maximum [Member] | ' | ' |
Fair value inputs, assets, quantitative information [Line Items] | ' | ' |
Annual change in home pricing index | 7.60% | 7.60% |
Loan resolution probabilities b modification | 22.30% | 22.30% |
Loan resolution probabilities b rental | 100.00% | 100.00% |
Loan resolution probabilities b liquidation | 100.00% | 100.00% |
Loan resolution timelines (in years) | '5 years 4 months | '5 years 10 months |
Value of underlying properties | 4,100,000 | 3,550,000 |
Repurchase_agreement_Details
Repurchase agreement (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 11, 2014 | Apr. 21, 2014 | Dec. 31, 2013 | Mar. 22, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 23, 2013 | Sep. 23, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | Secured debt [Member] | |||
Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due March 23, 2015 | Repurchase agreement due March 23, 2015 | 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 | ' | ' | $1,655,000,000 | $750,000,000 | $375,000,000 | $375,000,000 | $200,000,000 | $100,000,000 | $100,000,000 | $1,030,000,000 | $400,000,000 | $400,000,000 | $200,000,000 | $250,000,000 | $250,000,000 |
Interest rate | ' | ' | 3.03% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Book value of collateral | ' | ' | 2,159,670,000 | 1,005,912,000 | 608,977,000 | ' | ' | 166,350,000 | ' | 1,145,345,000 | 634,234,000 | ' | ' | 405,348,000 | 205,328,000 |
Repurchase agreements | $1,271,483,000 | $602,382,000 | $1,271,483,000 | $602,382,000 | $324,381,000 | ' | ' | $85,364,000 | ' | $731,415,000 | $398,602,000 | ' | ' | $215,687,000 | $118,416,000 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Affiliated entity [Member] | Ocwen | Operating Expense [Member] | Loan Servicing Costs [Member] | ' | ' | ' | ' |
Related party transaction [Line Items] | ' | ' | ' | ' |
Related party expenses | $14,942,000 | $1,242,000 | $25,432,000 | $1,634,000 |
Affiliated entity [Member] | Altisource | Operating Expense [Member] | Residential rental property operating expenses [Member] | ' | ' | ' | ' |
Related party transaction [Line Items] | ' | ' | ' | ' |
Related party expenses | 3,150,000 | ' | 4,200,000 | ' |
Affiliated entity [Member] | Altisource | Related party general and administrative expense [Member] | Due diligence costs [Member] | ' | ' | ' | ' |
Related party transaction [Line Items] | ' | ' | ' | ' |
Related party expenses | 1,655,000 | 0 | 1,766,000 | 183,000 |
Affiliated entity [Member] | AAMC | Related party general and administrative expense [Member] | Expense reimbursements [Member] | ' | ' | ' | ' |
Related party transaction [Line Items] | ' | ' | ' | ' |
Related party expenses | 1,789,000 | 1,156,000 | 3,258,000 | 2,057,000 |
Affiliated entity [Member] | AAMC | Selling, General and Administrative Expenses [Member] | Management incentive fees [Member] | ' | ' | ' | ' |
Related party transaction [Line Items] | ' | ' | ' | ' |
Related party expenses | 13,715,000 | ' | 24,626,000 | ' |
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 | ' | ' | ' | 94,000,000 |
Loans acquired from related party, aggregate purchase price | ' | ' | ' | $64,000,000 |
Sharebased_payments_Details
Share-based payments (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | 31-May-14 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Time based restricted stock | Time based restricted stock | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | |||||
Share-based compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | $113,000 | $98,000 | ' | ' | ' | ' | $100,000 | $113,000 | $98,000 |
Unamortized stock compensation | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining amortization period of unamortized share based compensation | '0 years 11 months | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted stock granted | ' | ' | ' | ' | 8,245 | 16,355 | ' | ' | ' |
Weighted average grant date fair value of restricted stock granted | ' | ' | ' | ' | $27.28 | $18.47 | ' | ' | ' |
Restricted Stock Service Period | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
Value of restricted stock granted to directors annually | ' | ' | ' | $45,000 | ' | ' | ' | ' | ' |
Director Attendance Requirement | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' |
Income_taxes_Details
Income taxes (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 24, 2014 | Mar. 25, 2014 | Mar. 11, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Real Estate Investment Trust, Minimum Distribution | ' | ' | ' | ' | ' | ' | ' | $16,000,000 |
Dividends declared per common share | $0.45 | $0.40 | $0.08 | $0.45 | $0 | $0.93 | $0 | $0.35 |
Payments of Ordinary Dividends, Common Stock | ' | ' | 4,500,000 | ' | ' | 53,118,000 | 0 | 13,100,000 |
Minimum distribution percentage of REIT taxable income | ' | ' | ' | ' | ' | 90.00% | ' | ' |
Net Income (Loss) Attributable to Parent, Taxable | ' | ' | ' | ' | ' | ' | ' | $17,700,000 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $67,782 | $5,227 | $109,695 | $4,243 |
Weighted average common stock outstanding b basic | 57,138,695 | 19,374,601 | 55,297,630 | 13,624,599 |
Stock options using the treasury method | 257,110 | 884,583 | 447,936 | 897,628 |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 6,148 | 0 | 9,119 | 0 |
Weighted average common stock outstanding b diluted | 57,401,953 | 20,259,184 | 55,754,685 | 14,522,227 |
Earnings per basic share | $1.19 | $0.27 | $1.98 | $0.31 |
Earnings per diluted share | $1.18 | $0.26 | $1.97 | $0.29 |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
Jun. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 10, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 11, 2014 | Apr. 21, 2014 | Dec. 31, 2013 | Mar. 22, 2013 | Jun. 27, 2014 | Jul. 10, 2014 | |
loan | loan | Subsequent Event [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Loans receivable [Member] | Loans receivable [Member] | ||
loan | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Repurchase agreement due April 20, 2015 (1) | Residential mortgage [Member] | Residential mortgage [Member] | ||||||
Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans acquired | 1,116 | 5,797 | ' | 46 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Acquired in Period, Unpaid Principal Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 |
Market value of underlying properties collateralizing loans acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,300,000 | 5,000,000 |
Maximum borrowing capacity | ' | ' | ' | ' | 1,655,000,000 | 750,000,000 | 375,000,000 | 375,000,000 | 200,000,000 | 100,000,000 | 100,000,000 | ' | ' |
Payments to Acquire Loans Receivable | $235,000,000 | $1,056,493,000 | $168,165,000 | $3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |