Document_and_entity_informatio
Document and entity information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Abstract] | ||
Entity registrant name | Altisource Residential Corporation | |
Entity central index key | 1555039 | |
Current fiscal year end date | -19 | |
Entity filer category | Accelerated Filer | |
Document type | 10-Q | |
Document period end date | 31-Mar-15 | |
Document fiscal year focus | 2015 | |
Document fiscal period focus | Q1 | |
Amendment flag | FALSE | |
Entity common stock, shares outstanding | 57,203,211 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real estate held for use: | ||
Land | $21,267 | $14,424 |
Rental residential properties (net of accumulated depreciation of $2,046 and $1,062, respectively) | 86,206 | 60,908 |
Real estate owned | 456,479 | 457,045 |
Total real estate held for use, net | 563,952 | 532,377 |
Real estate assets held for sale | 150,807 | 92,230 |
Mortgage loans at fair value | 1,853,495 | 1,959,044 |
Mortgage loans held for sale | 12,485 | 12,535 |
Cash and cash equivalents | 53,246 | 66,166 |
Restricted cash | 14,766 | 13,282 |
Accounts receivable | 10,398 | 10,313 |
Related party receivables | 24,530 | 17,491 |
Investment in affiliate | 18,000 | 18,000 |
Deferred leasing and financing costs, net | 5,384 | 4,251 |
Prepaid expenses and other assets | 672 | 373 |
Total assets | 2,707,735 | 2,726,062 |
Liabilities: | ||
Repurchase agreements | 929,287 | 1,015,000 |
Other secured borrowings (including $14,991 repurchase agreement with NewSource at March 31, 2015 and December 31, 2014) | 379,840 | 339,082 |
Accounts payable and accrued liabilities | 42,686 | 11,678 |
Related party payables | 52,541 | 33,391 |
Total liabilities | 1,404,354 | 1,399,151 |
Commitments and contingencies (Note 6) | ||
Equity: | ||
Common stock, $.01 par value, 200,000,000 authorized shares; 57,203,211 and 57,192,212 shares issued and outstanding, at March 31, 2015 and December 31, 2014, respectively | 572 | 572 |
Additional paid-in capital | 1,227,175 | 1,227,091 |
Retained earnings | 75,634 | 99,248 |
Total equity | 1,303,381 | 1,326,911 |
Total liabilities and equity | $2,707,735 | $2,726,062 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Real Estate Investment Property, Accumulated Depreciation | $2,046,000 | $1,062,000 |
Securities sold under agreements to repurchase | $14,991,000 | $14,991,000 |
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 | 57,203,211 | 57,192,212 |
Common stock, shares outstanding | 57,203,211 | 57,192,212 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental revenues | $1,400 | $69 |
Net unrealized gain on mortgage loans | 61,134 | 65,130 |
Net realized gain on mortgage loans | 15,382 | 9,321 |
Net realized gain on re-performing mortgage loans | 151 | 0 |
Net realized gain on real estate | 10,608 | 0 |
Interest income | 240 | 108 |
Total revenues | 88,915 | 74,628 |
Expenses: | ||
Residential property operating expenses | 12,459 | 1,050 |
Real estate depreciation and amortization | 998 | 48 |
Real estate selling costs and impairment | 14,691 | 354 |
Mortgage loan servicing costs | 18,266 | 11,437 |
Interest expense | 11,643 | 5,708 |
General and administrative | 4,379 | 1,038 |
Related party general and administrative | 16,052 | 12,632 |
Total expenses | 78,488 | 32,267 |
Other income | 2,000 | 0 |
Income before income taxes | 12,427 | 42,361 |
Income tax expense | 3 | 448 |
Net income | $12,424 | $41,913 |
Earnings per share of common stock b basic: | ||
Earnings per basic share | $0.22 | $0.78 |
Weighted average common stock outstanding b basic | 57,200,889 | 53,436,108 |
Earnings per share of common stock b diluted: | ||
Earnings per diluted share | $0.22 | $0.77 |
Weighted average common stock outstanding b diluted | 57,406,619 | 54,086,959 |
Dividends declared per common share | $0.63 | $0.48 |
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, 2013 | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock, shares | 14,828,094 | |||
Issuance of common stock, including stock option exercises | $483,506 | $148 | $483,358 | |
Cost of issuance of common stock | -15,071 | -15,071 | ||
Dividends on common stock ($0.63 per share) | -27,398 | -27,398 | ||
Share-based compensation | 56 | 56 | ||
Net income | 41,913 | 41,913 | ||
Common Stock, Dividends, Per Share, Cash Paid | $0.48 | |||
Ending balance at Mar. 31, 2014 | 1,268,433 | 571 | 1,226,927 | 40,935 |
Ending balance, shares at Mar. 31, 2014 | 57,114,763 | |||
Beginning balance at Dec. 31, 2014 | 1,326,911 | 572 | 1,227,091 | 99,248 |
Beginning balance, shares at Dec. 31, 2014 | 57,192,212 | 57,192,212 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock, shares | 10,999 | |||
Issuance of common stock, including stock option exercises | 27 | 0 | 27 | |
Dividends on common stock ($0.63 per share) | -36,038 | -36,038 | ||
Share-based compensation | 57 | 57 | ||
Net income | 12,424 | 12,424 | ||
Common Stock, Dividends, Per Share, Cash Paid | $0.08 | |||
Ending balance at Mar. 31, 2015 | $1,303,381 | $572 | $1,227,175 | $75,634 |
Ending balance, shares at Mar. 31, 2015 | 57,203,211 | 57,203,211 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $12,424 | $41,913 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net unrealized gain on mortgage loans | -61,134 | -65,130 |
Net realized gain on mortgage loans | -15,382 | -9,321 |
Net realized gain on sale of re-performing mortgage loans | -151 | 0 |
Net realized gain on sale of real estate | -10,608 | -55 |
Real estate depreciation and amortization | 998 | 48 |
Real estate selling costs and impairment | 14,691 | 355 |
Accretion of interest on re-performing mortgage loans | -232 | 0 |
Share-based compensation | 57 | 56 |
Amortization of deferred financing costs | 532 | 608 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 996 | 747 |
Related party receivables | -4,535 | 63 |
Prepaid expenses and other assets | -299 | -145 |
Accounts payable and accrued liabilities | 1,024 | 633 |
Related party payables | 19,150 | 6,661 |
Net cash used in operating activities | -42,469 | -23,567 |
Investing activities: | ||
Investment in mortgage loans | 0 | -611,357 |
Investment in renovations | -5,534 | -447 |
Real estate tax advances | -6,556 | -6,259 |
Mortgage loan dispositions | 56,337 | 32,775 |
Mortgage loan payments | 5,816 | 3,129 |
Disposition of real estate | 32,139 | 734 |
Change in restricted cash | -1,484 | -1,456 |
Net cash provided by (used in) investing activities | 80,718 | -582,881 |
Financing activities: | ||
Issuance of common stock, including stock option exercises | 74 | 487,041 |
Payment of tax withholdings on exercise of stock options | -47 | -3,535 |
Cost of issuance of common stock | 0 | -15,071 |
Dividends on common stock | -4,576 | -27,398 |
Proceeds from issuance of other secured debt | 50,690 | 0 |
Repayments of secured notes | -9,256 | 0 |
Proceeds from repurchase agreement | 33,877 | 127,664 |
Repayments of repurchase agreement | -119,590 | -30,096 |
Payment of deferred financing costs | -2,341 | -123 |
Net cash (used in) provided by financing activities | -51,169 | 538,482 |
Net decrease in cash and cash equivalents | -12,920 | -67,966 |
Cash and cash equivalents as of beginning of the period | 66,166 | |
Cash and cash equivalents as of end of the period | 53,246 | 48,022 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10,429 | 4,736 |
Transfer of mortgage loans to real estate owned | 136,182 | 96,528 |
Transfer of real estate owned to mortgage loans | 1,356 | 0 |
Change in accrued capital expenditures | -1,430 | 0 |
Change in accrued capital expenditures | 0 | 183 |
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances to borrowers, net | 2,848 | 1,247 |
Change in receivables from real estate owned dispositions | 630 | 0 |
Change in payables from dividends | $31,462 | $0 |
Organization_and_basis_of_pres
Organization and basis of presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and basis of presentation | Organization and basis of presentation | |
Altisource Residential Corporation is a Maryland REIT 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. | ||
On December 21, 2012 we became a stand-alone publicly traded company with an initial capital contribution of $100 million. We have a long-term service agreement with Altisource Portfolio Solutions, SA (“Altisource”), a leading provider of real estate and mortgage portfolio management, asset recovery and customer relationship management services. We also have servicing agreements with three separate mortgage loan servicers. | ||
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. On March 31, 2015, we entered into a new asset management agreement with AAMC (the “AMA”) with an effective date of April 1, 2015. Prior to the AMA, we were party to an asset management agreement with AAMC (the “Original AMA”) pursuant to which we received incentive fees, which we refer to as our “incentive management fees,” that gave us a share of Residential’s cash flow available for distribution to its stockholders as well as reimbursement for certain overhead and operating expenses. The new AMA provides for a new fee structure in which we pay AAMC a base management fee, an incentive management fee and a conversion fee for properties that become rental properties during each quarter versus the incentive management fee and expense reimbursement structure under the Original AMA. For additional details on the new AMA, please see “Note 7. Related Party Transactions.” | ||
Since we commenced operations, we have completed three public equity offerings with aggregate net proceeds of approximately $1.1 billion. We also 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 these repurchase agreements at December 31, 2014 was $1.2 billion. Following the amendments described below, the maximum aggregate funding available to us under these repurchase agreements as of March 31, 2015 was $970.5 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of March 31, 2015, an aggregate of $929.3 million was outstanding under our repurchase agreements. All obligations of our subsidiaries under the repurchase agreements are fully guaranteed by us. | ||
Each of our repurchase agreements is described below: | ||
• | Credit Suisse (“CS”) is the lender on the repurchase agreement entered into on March 22, 2013, (the “CS repurchase agreement”) with an initial aggregate maximum borrowing capacity of $100.0 million. During 2014 the CS repurchase agreement was amended on several occasions, ultimately increasing the aggregate maximum borrowing capacity to $225.0 million on December 31, 2014 with a maturity date of April 20, 2015, subject to an additional one-year extension with the approval of the lender. On April 20, 2015, we entered into an amended and restated repurchase agreement with CS that increased our aggregate borrowing capacity from $225.0 million to $275.0 million, increased the REO sublimit under the facility and extended the maturity date to April 18, 2016. Please see “Note 12. Subsequent Events” for additional information. | |
• | Deutsche Bank (“DB”) is the lender on the repurchase agreement entered into on September 12, 2013 (the “DB repurchase agreement”). The DB repurchase agreement was amended on December 18, 2013, has an aggregate funding capacity of $250.0 million and matures on March 11, 2016. The DB repurchase agreement includes a provision that, beginning in April 2015, we will not be able to finance mortgage loans in excess of amounts outstanding under the facility at the end of March 2015. Therefore, our aggregate funding capacity under the DB repurchase agreement was reduced to $219.7 million in April 2015, which was the amount outstanding under the facility at the time. | |
• | Wells Fargo (“Wells”) is the lender on the repurchase agreement entered into on September 23, 2013 (the “Wells repurchase agreement”) with an initial aggregate maximum borrowing capacity of $200.0 million. Throughout 2013 and 2014 the Wells repurchase agreement was amended several times increasing the aggregate maximum borrowing capacity to a high of $1.0 billion, and on December 31, 2014 was reduced to $750.0 million, subject to certain sublimits, to reflect the securitization of a significant portion of our non-performing loans that previously had been financed under the Wells repurchase agreement. The maturity date of the Wells repurchase agreement was March 23, 2015. However, on February 20, 2015, we exercised our option to extend the termination date of this facility to March 23, 2016 without any additional funding, thereby reducing our aggregate funding capacity under the Wells repurchase agreement to $525.8 million which was the amount outstanding under the facility on the extension date. We are in discussions with Wells to further extend the repurchase agreement with an ability to obtain additional funding. No assurance can be provided that we will be able to renew this facility on reasonable terms, on a timely basis or at all. In the event we cannot extend the agreement with an ability to obtain additional funding, the advance rate will be reduced by 10% after the first 90 days of the extension term and we will not be entitled to draw additional funds under the facility. | |
Following all of the amendments described above, the maximum aggregate funding available to us under these repurchase agreements as of March 31, 2015 was $970.5 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of March 31, 2015, an aggregate of $0.9 billion was outstanding under our repurchase agreements. All obligations of our subsidiaries under the repurchase agreements are fully guaranteed by us. | ||
On November 25, 2014, we completed a securitization transaction in which ARLP Securitization Trust, Series 2014-2 ("ARLP 2014-2") issued $270.8 million in Class A Notes (the “Class A Notes”) with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes (the “Class M Notes”). We initially retained $95.8 million of the Class A Notes and all of the Class M Notes in our taxable REIT subsidiary (“TRS”). On February 9, 2015, we sold $50.7 million of the retained Class A Notes to an unrelated third party. No interest will be paid on any Class M Notes while any Class A Notes remain outstanding. The Class A Notes and Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 and not by any of our other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on January 26, 2054, and we do not guaranty any of the obligations of ARLP 2014-2 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $332.5 million. | ||
On September 25, 2014, we completed a securitization transaction in which ARLP Securitization Trust, Series 2014-1 (“ARLP 2014-1”) issued $150.0 million in Class A Notes (the “Class A Notes”) with a weighted coupon of approximately 3.47% and $32.0 million in Class M Notes (the “Class M Notes”) with a weighted coupon of 4.25%. The Class A Notes and the Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-1 and not by any of our other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on September 25, 2044, and we do not guaranty any of the obligations of ARLP 2014-1 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $213.8 million. | ||
We retained all of the Class M Notes issued by ARLP 2014-1 in our TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the Class M Notes to NewSource Reinsurance Company Ltd, ("NewSource"), an entity in which we own 100% of the outstanding preferred stock and in which AAMC owns 100% of the outstanding common stock, for a purchase price of $15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89-day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015. | ||
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 that are of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. The interim results are not necessarily indicative of results for a full year. 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 2014 annual report on Form 10-K. | ||
Recently issued accounting standards | ||
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires that debt issuance costs are presented on the balance sheet as a deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The standard requires retrospective application and represents a change in accounting principle. The standard is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We do not expect the impact of adopting this standard to have a material impact on our financial position, results of operations, or cash flows. | ||
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis. ASU 2015-02 makes targeted amendments to the current consolidation guidance that change the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance addresses concerns that current accounting might require a reporting entity to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early application is permitted. We are evaluating the impact of ASU 2015-02 on our consolidated financial statements. | ||
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 do not expect this amendment to have a significant effect on our financial position or results of operations. |
Mortgage_loans
Mortgage loans | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Mortgage Loans on Real Estate [Abstract] | |||||||
Mortgage loans | Mortgage loans | ||||||
Acquisitions of non-performing residential mortgage loans | |||||||
During the first quarter of 2015, we did not acquire any portfolios of residential mortgage loans. During the three months ended March 31, 2014, we acquired an aggregate of 4,207 residential mortgage loans, substantially all of which were non-performing, having an aggregate UPB of approximately $1.1 billion and an aggregate market value of underlying properties of approximately $901 million. The aggregate purchase price for these acquisitions was approximately $611 million. | |||||||
During the three months ended March 31, 2015, we expensed $0.1 million for due diligence costs related to a potential purchase of a portfolio we did not ultimately acquire. During the three months ended March 31, 2014, we recognized $0.5 million for due diligence costs related to transactions in both general and administrative expense and related party general and administrative expense. | |||||||
Generally, we expect that our residential mortgage loan and REO portfolios may grow at an uneven pace, as opportunities to acquire distressed residential mortgage loans may be irregularly timed and may involve large portfolios of loans, and the timing and extent of our success in acquiring such loans cannot be predicted. In addition, for any given portfolio of loans that we agree to acquire, we typically acquire fewer loans than originally expected, as certain loans may be resolved prior to the closing date or may fail to meet our diligence standards. The number of loans excluded from an acquisition typically constitutes a relatively small portion of a particular portfolio. In some cases, the number of loans we do not acquire could be significant. In any case where we do not acquire the full portfolio, appropriate adjustments are made to the applicable purchase price. | |||||||
Throughout this 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. | |||||||
Transfer of mortgage loans to real estate owned | |||||||
During the three months ended March 31, 2015 and 2014, we transferred 724 and 636 mortgage loans, respectively, to REO at an aggregate fair value based on broker price opinions ("BPOs") of $134.8 million and $96.5 million, respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, we recorded $18.4 million and $23.6 million, respectively, in net unrealized gains on mortgage loans. At March 31, 2015, we had 7,021 loans with a carrying value of $1.4 billion that were in the foreclosure process compared to 7,841 loans with a carrying value of $1.5 billion at December 31, 2014. | |||||||
Dispositions | |||||||
During the three months ended March 31, 2015 and 2014, we disposed of 150 and 116 mortgage loans, respectively, primarily through short sales, refinancing and foreclosure sales. In connection with these dispositions, we recorded $15.4 million and $9.3 million, respectively, of net realized gains on mortgage loans. | |||||||
Acquisition of re-performing residential mortgage loans | |||||||
On June 27, 2014, we acquired 879 re-performing mortgage loans with an aggregate market value of underlying properties of $271.1 million for an aggregate purchase price of $144.6 million. 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. These 879 re-performing residential mortgage loans were determined to have common risk characteristics and have been accounted for as a single loan pool. During October 2014, we sold an aggregate of 934 re-performing loans to an unrelated third party for an aggregate purchase price of $164 million. The sale included 770 loans from the re-performing mortgage loans purchased in June 2014, and 164 loans that had transitioned to re-performing status from prior non-performing loan acquisitions. | |||||||
Under ASC 310-30, we estimate cash flows expected to be collected, adjusted for expected prepayments and defaults expected to be incurred over the life of the loan pool. We determine the excess of the loan pool's contractually required principal and interest payments over the expected cash flows as an amount that should not be accreted, the nonaccretable yield. The difference between expected cash flows and the present value of the expected cash flows is referred to as the accretable yield, which represents the amount that is expected to be recorded as interest income over the remaining life of the loan pool. For the three months ended March 31, 2015, we recognized no provision for loan loss and no adjustments to the amount of the accretable yield. For the three months ended March 31, 2015, we accreted $0.2 million into interest income with respect to our re-performing loans. As of March 31, 2015, these re-performing loans, having a UPB of $17.5 million and a carrying value of $12.5 million, were held for sale. | |||||||
The following tables present information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition and changes in the balance of the accretable yield ($ in thousands): | |||||||
Three months ended March 31, 2015 | |||||||
Accretable Yield | Carrying Amount of Loans | ||||||
Balance at the beginning of the period | $ | 7,640 | $ | 12,535 | |||
Additions | — | 37 | |||||
Payments and other reductions, net | (201 | ) | (319 | ) | |||
Accretion | (232 | ) | 232 | ||||
Balance at the end of the period | $ | 7,207 | $ | 12,485 | |||
Real_estate_assets_net
Real estate assets, net | 3 Months Ended |
Mar. 31, 2015 | |
Real Estate [Abstract] | |
Real estate assets, net | Real estate assets, net |
Real estate held for use | |
As of March 31, 2015, we had 3,464 REO properties held for use. Of these properties, 587 had been rented, 151 were being listed for rent and 116 were in varying stages of renovation. With respect to the remaining 2,610 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, 2014, we had 3,349 REO properties held for use. Of these properties, 336 had been rented, 197 were being listed for rent and 254 were in various stages of renovation. With respect to the remaining 2,562 REO properties, we were in the process of determining whether these properties would meet our rental profile. As of March 31, 2014, we had 852 REO properties held for use. Of these properties, 35 had been rented, 17 were being listed for rent and 48 were in various stages of renovation. With respect to the remaining 752 REO properties, we were in the process of determining whether these 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 March 31, 2015, we classified 966 REO properties having an aggregate carrying value of $150.8 million as real estate held for sale as they do not meet our residential rental property investment criteria. As of December 31, 2014, we had 611 REO properties having an aggregate carrying value of $92.2 million held for sale, and as of March 31, 2014, we had 44 REO properties having an aggregate carrying value of $4.2 million held for sale. None of these REO properties have any operations; therefore, we are not presenting discontinued operations related to these properties. | |
We record residential properties held for sale at the lower of either the carrying amount of REO or its estimated fair value less estimated selling costs. If the carrying amount exceeds the estimated fair value, as adjusted, we record impairment equal to the amount of such excess. If an increase in fair value is noted at a subsequent measurement date, a gain is recognized to the extent of any previous impairment recognized. As of March 31, 2015 we had $9.0 million of impairment on the 966 REO properties having a fair value of $168.9 million. As of December 31, 2014 we had $4.9 million of impairment on the 611 REO properties having a fair value of $96.0 million. There was no impairment on the 44 REO properties held at March 31, 2014. | |
Dispositions | |
During the three months ended March 31, 2015, we disposed of 254 residential properties and recorded $10.6 million of net realized gains on real estate. We disposed of two residential properties during the three months ended March 31, 2014. There were no significant gains or losses on the dispositions in 2014. |
Fair_value_of_financial_instru
Fair value of financial instruments | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair value of financial instruments | Fair value of financial instruments | |||||||||||
The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Quoted prices in active markets | Observable inputs other than Level 1 prices | Unobservable inputs | ||||||||||
31-Mar-15 | ||||||||||||
Recurring basis (assets) | ||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,853,495 | ||||||
Nonrecurring basis (assets) | ||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 168,942 | ||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 1,356 | ||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 136,182 | ||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||
Mortgage loans held for sale | $ | — | $ | — | $ | 12,485 | ||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||
Repurchase agreements at fair value | $ | — | $ | 929,287 | $ | — | ||||||
Other secured borrowings | $ | — | $ | 377,420 | $ | — | ||||||
31-Dec-14 | ||||||||||||
Recurring basis (assets) | ||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,959,044 | ||||||
Nonrecurring basis (assets) | ||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 96,041 | ||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 8,400 | ||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 595,668 | ||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||
Mortgage loans held for sale | $ | — | $ | — | $ | 12,535 | ||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||
Repurchase agreements at fair value | $ | — | $ | 1,015,000 | $ | — | ||||||
Other secured borrowings | $ | — | $ | 336,409 | $ | — | ||||||
We have not transferred any assets from one level to another level during the three months ended March 31, 2015 or during the year ended December 31, 2014. | ||||||||||||
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 fair value of re-performing mortgage loans held for sale is estimated using the present value of the future estimated principal and interest payments of the loan, with the discount rate used in the present value calculation representing the estimated effective yield of the loan. 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 fair value of other secured borrowings is estimated using observable market data. | ||||||||||||
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 March 31, 2015 | Three months ended March 31, 2014 | |||||||||||
Mortgage loans | ||||||||||||
Beginning balance | $ | 1,959,044 | $ | 1,207,163 | ||||||||
Investment in mortgage loans | — | 612,508 | ||||||||||
Net unrealized gain on mortgage loans | 61,134 | 65,130 | ||||||||||
Net realized gain on mortgage loans | 15,382 | 9,321 | ||||||||||
Mortgage loan dispositions and payments | (65,168 | ) | (39,458 | ) | ||||||||
Real estate tax advances to borrowers | 7,127 | 8,006 | ||||||||||
Reclassification of realized gains on real estate sold from unrealized gains | 10,802 | — | ||||||||||
Transfer of real estate owned to mortgage loans | 1,356 | — | ||||||||||
Transfer of mortgage loans to real estate owned | (136,182 | ) | (96,528 | ) | ||||||||
Ending balance at March 31 | $ | 1,853,495 | $ | 1,766,142 | ||||||||
Net unrealized gain on mortgage loans held at the end of the period | $ | 51,068 | $ | 38,197 | ||||||||
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 March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||
31-Mar-15 | ||||||||||||
Current | 794 | $ | 127,984 | $ | 183,091 | $ | 188,031 | |||||
30 | 95 | 13,653 | 20,233 | 20,694 | ||||||||
60 | 41 | 6,423 | 8,986 | 10,288 | ||||||||
90 | 2,138 | 332,892 | 531,217 | 502,562 | ||||||||
Foreclosure | 7,021 | 1,372,543 | 1,964,595 | 1,801,433 | ||||||||
Mortgage loans | 10,089 | $ | 1,853,495 | $ | 2,708,122 | $ | 2,523,008 | |||||
31-Dec-14 | ||||||||||||
Current | 670 | $ | 107,467 | $ | 159,731 | $ | 160,654 | |||||
30 | 109 | 15,424 | 22,629 | 24,046 | ||||||||
60 | 57 | 7,921 | 11,624 | 12,510 | ||||||||
90 | 2,286 | 361,434 | 569,930 | 544,709 | ||||||||
Foreclosure | 7,841 | 1,466,798 | 2,172,047 | 1,951,606 | ||||||||
Mortgage loans | 10,963 | $ | 1,959,044 | $ | 2,935,961 | $ | 2,693,525 | |||||
The following table sets forth the carrying value of our re-performing mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||
31-Mar-15 | ||||||||||||
Current | 69 | $ | 8,597 | $ | 12,004 | $ | 15,102 | |||||
30 | 6 | 498 | 1,018 | 1,074 | ||||||||
60 | — | — | — | — | ||||||||
90 | 24 | 3,390 | 4,498 | 5,931 | ||||||||
Mortgage loans held for sale | 99 | $ | 12,485 | $ | 17,520 | $ | 22,107 | |||||
31-Dec-14 | ||||||||||||
Current | 68 | $ | 8,317 | $ | 11,938 | $ | 15,154 | |||||
30 | 6 | $ | 1,118 | $ | 1,667 | $ | 2,004 | |||||
60 | 4 | $ | 359 | $ | 644 | $ | 670 | |||||
90 | 24 | $ | 2,741 | $ | 4,149 | $ | 4,624 | |||||
Mortgage loans held for sale | 102 | $ | 12,535 | $ | 18,398 | $ | 22,452 | |||||
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 March 31, 2015 and December 31, 2014: | ||||||||||||
Input | 31-Mar-15 | 31-Dec-14 | ||||||||||
Equity discount rate | 15.00% | 15.00% | ||||||||||
Debt to asset ratio | 65.00% | 65.00% | ||||||||||
Cost of funds | 3.5% over 1 month LIBOR | 3.5% over 1 month LIBOR | ||||||||||
Annual change in home pricing index | 0% to 7.6% | -0.1% to 7.6% | ||||||||||
Loan resolution probabilities — modification | 0% to 44.7% | 0% to 44.7% | ||||||||||
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 to 5.3 | ||||||||||
Value of underlying properties | $500 - $5,500,000 | $3,000 - $5,300,000 |
Borrowings
Borrowings | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Borrowings | Borrowings | |||||||||
Repurchase Agreements | ||||||||||
Our operating partnership and certain of its Delaware Statutory Trust subsidiaries, as applicable, have entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans, rental properties and REO properties in our portfolio. We have effective control of the assets associated with these agreements and therefore have concluded these are financing arrangements. As of March 31, 2015, the weighted average annualized interest rate on borrowings under our repurchase agreements was 3.06%, excluding amortization of deferred financing costs. | ||||||||||
The following table sets forth data with respect to our repurchase agreements as of March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||||
Maximum borrowing capacity | Book value of collateral | Amount outstanding | ||||||||
31-Mar-15 | ||||||||||
CS repurchase agreement due April 20, 2015 | $ | 225,000 | $ | 331,633 | $ | 183,806 | ||||
Wells repurchase agreement due March 23, 2016 | 525,780 | 986,572 | 525,780 | |||||||
DB repurchase agreement due March 11, 2016 | 219,701 | 457,553 | 219,701 | |||||||
$ | 970,481 | $ | 1,775,758 | $ | 929,287 | |||||
December 31, 2014 | ||||||||||
CS repurchase agreement due April 20, 2015 | $ | 225,000 | $ | 332,618 | $ | 222,044 | ||||
Wells repurchase agreement due March 23, 2015 | $ | 750,000 | $ | 1,036,409 | $ | 569,509 | ||||
DB repurchase agreement due March 11, 2016 | $ | 250,000 | $ | 450,532 | $ | 223,447 | ||||
$ | 1,225,000 | $ | 1,819,559 | $ | 1,015,000 | |||||
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 directly sell such underlying mortgage assets. In the event the lender determines the value of the collateral has decreased, the lender 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. Pursuant to the CS Repurchase Agreement, we are entitled to collateralize a portion of the facility with securities. As of March 31, 2015, approximately $10.6 million of the amounts outstanding under the CS Repurchase Agreement was collateralized by $17.0 million of the Class M Notes issued and retained by us in connection with the securitization completed in September 2014 by ARLP 2014-1, and approximately $29.4 million of the amounts outstanding under the CS Repurchase Agreement was collateralized by $45.1 million of the Class A2 Notes issued and retained by us in connection with the securitization completed in November 2014 by ARLP 2014-2. | ||||||||||
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. 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. For additional information on the repurchase agreements, please see Note 1, "Organization and basis of presentation." | ||||||||||
Other Secured Debt | ||||||||||
On November 25, 2014, we completed a securitization transaction in which ARLP 2014-2 issued $270.8 million in Class A Notes with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes. We initially retained $95.8 million of the Class A Notes and all of the Class M Notes in our TRS. On February 9, 2015, we sold $50.7 million of the retained Class A Notes to an unrelated third party. No interest will be paid on any Class M Notes while any Class A Notes remain outstanding. The Class A Notes and Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 and not by any of our other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on January 26, 2054, and we do not guaranty any of the obligations of ARLP 2014-2 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $332.5 million. | ||||||||||
On September 25, 2014, we completed a securitization transaction in which ARLP 2014-1 issued $150.0 million in Class A Notes with a weighted coupon of approximately 3.47% and $32.0 million in Class M Notes with a weighted coupon of 4.25%. The Class A Notes and the Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-1 and not by any of our other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on September 25, 2044, and we do not guaranty any of the obligations of ARLP 2014-1 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $213.8 million. | ||||||||||
We retained all of the Class M Notes issued by ARLP 2014-1 in our TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the Class M Notes to NewSource for a purchase price of $15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89-day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015. | ||||||||||
The following table sets forth data with respect to these notes as of March 31, 2015 ($ in thousands): | ||||||||||
Interest Rate | Amount outstanding | |||||||||
31-Mar-15 | ||||||||||
ARLP Securitization Trust, Series 2014-1 | ||||||||||
ARLP 2014-1 Class A Notes due September 25, 2044(1) | 3.47 | % | $ | 145,953 | ||||||
ARLP 2014-1 Class M Notes due September 25, 2044(2) | 4.25 | % | 32,000 | |||||||
ARLP Securitization Trust, Series 2014-2 | ||||||||||
ARLP 2014-2 Class A Notes due January 26, 2054(3) | 3.85 | % | 264,034 | |||||||
ARLP 2014-2 Class M Notes due January 26, 2054 | — | % | 234,010 | |||||||
ARNS, Inc. | ||||||||||
Securities sold under agreement to repurchase due June 25, 2015 | 5 | % | 14,991 | |||||||
Intercompany eliminations | ||||||||||
Elimination of Class M Notes due to ARNS, Inc. | (32,000 | ) | ||||||||
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. | (45,138 | ) | ||||||||
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. | (234,010 | ) | ||||||||
$ | 379,840 | |||||||||
31-Dec-14 | ||||||||||
ARLP Securitization Trust, Series 2014-1 | ||||||||||
ARLP 2014-1 Class A Notes due September 25, 2044(1) | 3.47 | % | $ | 150,000 | ||||||
ARLP 2014-1 Class M Notes due September 25, 2044(2) | 4.25 | % | 32,000 | |||||||
ARLP Securitization Trust, Series 2014-2 | ||||||||||
ARLP 2014-2 Class A Notes due January 26, 2054(3) | 3.85 | % | 269,820 | |||||||
ARLP 2014-2 Class M Notes due January 26, 2054 | — | % | 234,010 | |||||||
ARNS, Inc. | ||||||||||
Securities sold under agreement to repurchase due March 27, 2015 | 5 | % | 14,991 | |||||||
Intercompany eliminations | ||||||||||
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. | (32,000 | ) | ||||||||
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. | (95,729 | ) | ||||||||
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. | (234,010 | ) | ||||||||
$ | 339,082 | |||||||||
_____________ | ||||||||||
-1 | The expected redemption date for the Class A Notes is September 25, 2017. | |||||||||
-2 | The expected redemption date for the Class M Notes is September 25, 2018. | |||||||||
-3 | The expected redemption date for the Class A Notes is November 27, 2017. |
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies |
Litigation, claims and assessments | |
There have been no material new developments in our legal proceedings since the March 2, 2015 filing of our annual report on Form 10-K for the year ended December 31, 2014, except as follows: | |
The Police Retirement System of Saint Louis v. Erbey, et al. On April 2, 2015, The Police Retirement System of Saint Louis and the defendants entered into a Memorandum of Understanding (“MOU”) reflecting an agreement in principle to settle the action with the settlement consideration being the new AMA. The MOU contemplates the negotiation and execution of a stipulation of settlement. The stipulation of settlement will be subject to customary conditions, including court approval. If the settlement is finally approved by the court, it will resolve and release all claims in the action that were, or could have been brought by or on our behalf challenging any aspect of the Original AMA and the negotiation of, the terms and provisions of, or the approval of the new AMA. In addition, in connection with the settlement, the parties agreed that plaintiff’s counsel will apply to the court for an award of fees and expenses. There can be no assurances that the parties will ultimately enter into a stipulation of settlement or that the court will approve the settlement. | |
Martin v. Altisource Residential Corporation, et al. On March 27, 2015, a putative shareholder class action complaint was filed in the United States District Court of the Virgin Islands by a purported shareholder of Residential under the caption Martin v. Altisource Residential Corporation, et al., 15-cv-00024. The action names as defendants Residential, Mr. Erbey and certain officers and a former officer of Residential and alleges that the defendants violated federal securities laws by, among other things, making materially false statements and/or failing to disclose material information to Residential’s shareholders regarding RESI’s relationship and transactions with AAMC, Ocwen and Home Loan Servicing Solutions Ltd. These alleged misstatements and omissions include allegations that the defendants failed to adequately disclose Residential’s reliance on Ocwen and the risks relating to its relationship with Ocwen, including that Ocwen was not properly servicing and selling loans, that Ocwen was under investigation by regulators for violating state and federal laws regarding servicing of loans, and Ocwen’s lack of proper internal controls. The complaint also contains allegations that certain of Residential’s disclosure documents were false and misleading because they fail to disclose fully the entire details of a certain asset management agreement between Residential and AAMC that allegedly benefited AAMC to the detriment of Residential’s shareholders. The action seeks, among other things, an award of monetary damages to the putative class in an unspecified amount, and an award of attorney’s and other fees and expenses. We believe the complaint is without merit. At this time, we are not able to predict the ultimate outcome of this matter, nor can we estimate the range of possible loss, if any. | |
For the litigation described above where an estimate is possible, management has established a litigation accrual in the amount of $1.5 million. This estimated liability is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. Matters underlying the Company’s litigation accrual may change from time to time, and actual results may vary significantly from the current estimate, including as a result of changes in our ongoing and future legal proceedings. Those matters for which an estimate is not possible are not included within this litigation accrual. Therefore, this estimated liability represents what we believe to be an estimate of liability only for certain liabilities that are estimable and probable, and does not represent our maximum loss exposure. |
Related_party_transactions
Related party transactions | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Related Party Transactions [Abstract] | ||||||
Related party transactions | Related party transactions | |||||
New Asset Management Agreement with AAMC | ||||||
On March 31, 2015, we entered into a new Asset Management Agreement ("AMA") with AAMC. | ||||||
The AMA, which became effective on April 1, 2015, provides for a new management fee structure which replaces the incentive fee structure under the original asset management agreement (the “Original AMA”) as follows: | ||||||
• | AAMC is entitled to a quarterly base management fee equal to 1.5% of the product of (i) our average invested capital for the quarter multiplied by (ii) 0.25, while we have fewer than 2,500 single family rental properties actually rented (“Rental Properties”). The base management fee percentage increases to 1.75% of invested capital while we have between 2,500 and 4,499 Rental Properties and increases to 2.0% of invested capital while we have 4,500 or more Rental Properties; | |||||
• | AAMC is entitled to a quarterly incentive management fee equal to 20% of the amount by which our return on invested capital exceeds a hurdle return rate of between 7.0% and 8.25% (depending on the 10-year treasury rate). The incentive management fee increases to 22.5% while we have between 2,500 and 4,499 Rental Properties and increases to 25% while we have 4,500 or more Rental Properties; and | |||||
• | AAMC is entitled to a quarterly conversion fee equal to 1.5% of the market value of the single-family homes leased by us for the first time during the quarter. | |||||
We have the flexibility to pay up to 25% of the incentive management fee to AAMC in shares of our common stock. | ||||||
Under the new AMA, AAMC will continue to be the exclusive asset manager for us for an initial term of 15 years from April 1, 2015, with two potential five-year extensions, subject to our achieving an average annual return on invested capital of at least 7.0%. Under the AMA, we will not be required to reimburse AAMC for the allocable compensation and routine overhead expenses of its employees and staff, all of which will now be covered by the base management fee described above. | ||||||
Neither party is entitled to terminate the AMA prior to the end of the initial term, or each renewal term, other than termination by (a) us and/or AAMC “for cause” for certain events such as a material breach of the AMA and failure to cure such breach, (b) Residential for certain other reasons such as our failure to achieve a return on invested capital of at least 7.0% for two consecutive fiscal years after the third anniversary of the AMA, and (c) Residential in connection with certain change of control events. | ||||||
Summary of Related Party Transaction Expenses | ||||||
Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen, Chairman of Altisource, and Chairman of AAMC. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, Residential and AAMC and is no longer a member of the Board of Directors for any of these companies. As of March 31, 2015, Mr. Erbey owned or controlled approximately 4% of our common stock, approximately 30% of the common stock of Altisource, approximately 28% of the common stock of AAMC and approximately 14% of the common stock of Ocwen. As of March 31, 2015, Mr. Erbey also held 857,543 options to purchase Altisource common stock (all of which were exercisable), 3,572,626 options to purchase Ocwen common stock (3,322,626 of which were exercisable) and 85,755 options to purchase AAMC common stock (all of which were exercisable). | ||||||
As a result of Mr. Erbey’s position as our Chairman and as Chairman of each of Ocwen, Altisource and AAMC during the beginning of the first quarter, combined with his share ownership, these companies are considered related parties of Residential for the first quarter of 2015. We will continue to monitor the facts and circumstances with respect to Mr. Erbey, as well as our continuing officers and directors, to determine whether any of Altisource, Ocwen or AAMC will be related parties in future periods. | ||||||
Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands): | ||||||
Three months ended March 31, 2015 | Counter-party | Consolidated Statements of Operations location | ||||
2015 | ||||||
Residential property operating expenses | $ | 9,512 | Ocwen/Altisource | Residential property operating expenses | ||
Mortgage loan servicing costs | 16,985 | Ocwen | Mortgage loan servicing costs | |||
Other general and administrative expenses | 402 | Altisource | Related party general and administrative expenses | |||
Expense reimbursements | 750 | AAMC | Related party general and administrative expenses | |||
Management incentive fee | 14,900 | AAMC | Related party general and administrative expenses | |||
Interest expense | 160 | NewSource | Interest expense | |||
Professional fee sharing for negotiation of AMA | 2,000 | AAMC | Other income | |||
Three months ended March 31, 2014 | Counter-party | Consolidated Statements of Operations location | ||||
2014 | ||||||
Residential property operating expenses | $ | 1,050 | Ocwen/Altisource | Residential property operating expenses | ||
Mortgage loan servicing costs | 10,490 | Ocwen | Mortgage loan servicing costs | |||
Due diligence and unsuccessful deal costs | 111 | Altisource | Related party general and administrative expenses | |||
Other general and administrative expenses | — | Altisource | Related party general and administrative expenses | |||
Expense reimbursements | 1,469 | AAMC | Related party general and administrative expenses | |||
Management incentive fee | 10,911 | AAMC | Related party general and administrative expenses | |||
On September 30, 2014, pursuant to a master repurchase agreement, our TRS sold $15.0 million of the Class M Notes to NewSource for a purchase price of $15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89 day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015. |
Sharebased_payments
Share-based payments | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based payments | Share-based payments |
On December 21, 2012, as part of our separation transaction from Altisource, 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. | |
We recorded $0.1 million and $0.1 million of compensation expense related to these grants for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and 2014, we had a nominal amount of unrecognized share-based compensation cost remaining with respect to the director grants. During the three months ended March 31, 2015 and 2014, we granted no share-based payments to directors. |
Income_taxes
Income taxes | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
On March 31, 2015, our Board of Directors declared a quarterly cash dividend of $0.55 per share of common stock, which was paid on April 23, 2015 to all stockholders of record as of the close of business on April 13, 2015. | |
Based on our 2014 taxable income of $115.8 million, which includes net capital gains of $54.4 million, the aggregate minimum distribution to stockholders required to maintain our REIT status was $55.3 million in 2014. Dividends declared and paid per share of common stock aggregated $2.03 for the year ended December 31, 2014, or $116.0 million. These distributions included a cash dividend of $0.08 per share of common stock, or $4.5 million, which was treated as a 2013 distribution for REIT qualification purposes. On March 12, 2015 our Board of Directors declared a cash dividend of $0.08 per share of common stock, which was paid on March 30, 2015 to all stockholders of record as of the close of business on March 23, 2015. This additional dividend, an aggregate of $4.6 million, was treated as a 2014 distribution for REIT qualification purposes. | |
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, 2014, 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 March 31, 2015 which resulted in our recording additional deferred tax assets and a corresponding valuation allowance. As of March 31, 2015, we are forecasting that the TRS will not be profitable for the 2015 fiscal year. | |
We recorded state income tax expense on our consolidated operations for the three months ended March 31, 2015. As a REIT, we may also be subject to federal taxes if we engage in certain types of transactions. | |
As of March 31, 2015 and 2014, we did not accrue interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the three months ended March 31, 2015 and 2014. We recorded nominal state and local tax expense on income and property for the three months ended March 31, 2015. Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2014. |
Earnings_per_share
Earnings per share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, 2015 | Three months ended March 31, 2014 | |||||||
Numerator | ||||||||
Net income | $ | 12,424 | $ | 41,913 | ||||
Denominator | ||||||||
Weighted average common stock outstanding – basic | 57,200,889 | 53,436,108 | ||||||
Stock options using the treasury method | 200,712 | 638,761 | ||||||
Restricted stock | 5,018 | 12,090 | ||||||
Weighted average common stock outstanding – diluted | 57,406,619 | 54,086,959 | ||||||
Earnings per basic share | $ | 0.22 | $ | 0.78 | ||||
Earnings per diluted share | $ | 0.22 | $ | 0.77 | ||||
Segment_information
Segment information | 3 Months Ended |
Mar. 31, 2015 | |
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
Subsequent events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events |
New Loan and Security Agreement with Nomura | |
On April 10, 2015, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”). The purpose of the Loan Agreement is to finance our beneficial ownership of REO properties. These obligations are fully guaranteed pursuant to a guaranty (the “Guaranty”) made by us in favor of Nomura. The Loan Agreement terminates on April 8, 2016. | |
Under the terms of the Loan Agreement, subject to certain conditions, Nomura may advance funds to us from time to time, with such advances collateralized by REO properties. The maximum aggregate advance for the REO properties under the Loan Agreement is $100.0 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. | |
The advances paid by Nomura under the Loan Agreement with respect to the REO properties from time to time will be based on a percentage of the market value of the applicable REO properties. Under the terms of the Loan Agreement, we are required to pay to Nomura interest based on the one-month LIBOR plus a spread and certain other customary fees, administrative costs and expenses in connection with Nomura's structuring, management and ongoing administration of the Loan Agreement. The Loan Agreement requires us to maintain various standard financial and other covenants. | |
In addition, the Loan Agreement contains events of default (subject to certain materiality thresholds and grace periods), including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, certain material adverse changes, bankruptcy or insolvency proceedings and other events of default customary for this type of transaction. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the Loan Agreement and the liquidation by Nomura of the REO properties then subject to the Loan Agreement. | |
Amended and Restated Repurchase Agreement with CS | |
On April 20, 2015, we entered into an Amended and Restated Master Repurchase Agreement with CS. The CS Repurchase Agreement, as amended and restated, increases the aggregate maximum funding capacity to finance the purchase and beneficial ownership of non-performing, re-performing and performing mortgage loans and REO properties from $225.0 million to $275.0 million, and also increases the sublimit for REO properties that can be financed on the facility. | |
The obligations of our subsidiaries continue to be fully guaranteed by us pursuant to an amended and restated guaranty (the “Amended Guaranty”) made in favor of CS. As amended and restated, the Repurchase Agreement has been extended to mature on April 21, 2016. | |
All other material terms and conditions of the Repurchase Agreement remain the same as the original repurchase agreement in all material respects. |
Mortgage_loans_Tables
Mortgage loans (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Mortgage Loans on Real Estate [Abstract] | |||||||
Schedule of information for estimates of contractually required payments and cash flows expected | The following tables present information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition and changes in the balance of the accretable yield ($ in thousands): | ||||||
Three months ended March 31, 2015 | |||||||
Accretable Yield | Carrying Amount of Loans | ||||||
Balance at the beginning of the period | $ | 7,640 | $ | 12,535 | |||
Additions | — | 37 | |||||
Payments and other reductions, net | (201 | ) | (319 | ) | |||
Accretion | (232 | ) | 232 | ||||
Balance at the end of the period | $ | 7,207 | $ | 12,485 | |||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair value measurements, recurring and nonrecurring | The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014 ($ in thousands): | |||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Quoted prices in active markets | Observable inputs other than Level 1 prices | Unobservable inputs | ||||||||||
31-Mar-15 | ||||||||||||
Recurring basis (assets) | ||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,853,495 | ||||||
Nonrecurring basis (assets) | ||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 168,942 | ||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 1,356 | ||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 136,182 | ||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||
Mortgage loans held for sale | $ | — | $ | — | $ | 12,485 | ||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||
Repurchase agreements at fair value | $ | — | $ | 929,287 | $ | — | ||||||
Other secured borrowings | $ | — | $ | 377,420 | $ | — | ||||||
31-Dec-14 | ||||||||||||
Recurring basis (assets) | ||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,959,044 | ||||||
Nonrecurring basis (assets) | ||||||||||||
Real estate assets held for sale | $ | — | $ | — | $ | 96,041 | ||||||
Transfer of real estate owned to mortgage loans | $ | — | $ | — | $ | 8,400 | ||||||
Transfer of mortgage loans to real estate owned | $ | — | $ | — | $ | 595,668 | ||||||
Not recognized on consolidated balance sheets at fair value (assets) | ||||||||||||
Mortgage loans held for sale | $ | — | $ | — | $ | 12,535 | ||||||
Not recognized on consolidated balance sheets at fair value (liabilities) | ||||||||||||
Repurchase agreements at fair value | $ | — | $ | 1,015,000 | $ | — | ||||||
Other secured borrowings | $ | — | $ | 336,409 | $ | — | ||||||
Fair value, assets measured on recurring basis, 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 March 31, 2015 | Three months ended March 31, 2014 | |||||||||||
Mortgage loans | ||||||||||||
Beginning balance | $ | 1,959,044 | $ | 1,207,163 | ||||||||
Investment in mortgage loans | — | 612,508 | ||||||||||
Net unrealized gain on mortgage loans | 61,134 | 65,130 | ||||||||||
Net realized gain on mortgage loans | 15,382 | 9,321 | ||||||||||
Mortgage loan dispositions and payments | (65,168 | ) | (39,458 | ) | ||||||||
Real estate tax advances to borrowers | 7,127 | 8,006 | ||||||||||
Reclassification of realized gains on real estate sold from unrealized gains | 10,802 | — | ||||||||||
Transfer of real estate owned to mortgage loans | 1,356 | — | ||||||||||
Transfer of mortgage loans to real estate owned | (136,182 | ) | (96,528 | ) | ||||||||
Ending balance at March 31 | $ | 1,853,495 | $ | 1,766,142 | ||||||||
Net unrealized gain on mortgage loans held at the end of the period | $ | 51,068 | $ | 38,197 | ||||||||
Delinquency by unpaid principal balance | 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 March 31, 2015 and December 31, 2014 ($ in thousands): | |||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||
31-Mar-15 | ||||||||||||
Current | 794 | $ | 127,984 | $ | 183,091 | $ | 188,031 | |||||
30 | 95 | 13,653 | 20,233 | 20,694 | ||||||||
60 | 41 | 6,423 | 8,986 | 10,288 | ||||||||
90 | 2,138 | 332,892 | 531,217 | 502,562 | ||||||||
Foreclosure | 7,021 | 1,372,543 | 1,964,595 | 1,801,433 | ||||||||
Mortgage loans | 10,089 | $ | 1,853,495 | $ | 2,708,122 | $ | 2,523,008 | |||||
31-Dec-14 | ||||||||||||
Current | 670 | $ | 107,467 | $ | 159,731 | $ | 160,654 | |||||
30 | 109 | 15,424 | 22,629 | 24,046 | ||||||||
60 | 57 | 7,921 | 11,624 | 12,510 | ||||||||
90 | 2,286 | 361,434 | 569,930 | 544,709 | ||||||||
Foreclosure | 7,841 | 1,466,798 | 2,172,047 | 1,951,606 | ||||||||
Mortgage loans | 10,963 | $ | 1,959,044 | $ | 2,935,961 | $ | 2,693,525 | |||||
The following table sets forth the carrying value of our re-performing mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||||||
Number of loans | Carrying value | Unpaid principal balance | Market value of underlying properties | |||||||||
31-Mar-15 | ||||||||||||
Current | 69 | $ | 8,597 | $ | 12,004 | $ | 15,102 | |||||
30 | 6 | 498 | 1,018 | 1,074 | ||||||||
60 | — | — | — | — | ||||||||
90 | 24 | 3,390 | 4,498 | 5,931 | ||||||||
Mortgage loans held for sale | 99 | $ | 12,485 | $ | 17,520 | $ | 22,107 | |||||
31-Dec-14 | ||||||||||||
Current | 68 | $ | 8,317 | $ | 11,938 | $ | 15,154 | |||||
30 | 6 | $ | 1,118 | $ | 1,667 | $ | 2,004 | |||||
60 | 4 | $ | 359 | $ | 644 | $ | 670 | |||||
90 | 24 | $ | 2,741 | $ | 4,149 | $ | 4,624 | |||||
Mortgage loans held for sale | 102 | $ | 12,535 | $ | 18,398 | $ | 22,452 | |||||
Fair value measurements, recurring and nonrecurring, unobservable inputs | ||||||||||||
Input | 31-Mar-15 | 31-Dec-14 | ||||||||||
Equity discount rate | 15.00% | 15.00% | ||||||||||
Debt to asset ratio | 65.00% | 65.00% | ||||||||||
Cost of funds | 3.5% over 1 month LIBOR | 3.5% over 1 month LIBOR | ||||||||||
Annual change in home pricing index | 0% to 7.6% | -0.1% to 7.6% | ||||||||||
Loan resolution probabilities — modification | 0% to 44.7% | 0% to 44.7% | ||||||||||
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 to 5.3 | ||||||||||
Value of underlying properties | $500 - $5,500,000 | $3,000 - $5,300,000 |
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Schedule of repurchase agreements | The following table sets forth data with respect to our repurchase agreements as of March 31, 2015 and December 31, 2014 ($ in thousands): | |||||||||
Maximum borrowing capacity | Book value of collateral | Amount outstanding | ||||||||
31-Mar-15 | ||||||||||
CS repurchase agreement due April 20, 2015 | $ | 225,000 | $ | 331,633 | $ | 183,806 | ||||
Wells repurchase agreement due March 23, 2016 | 525,780 | 986,572 | 525,780 | |||||||
DB repurchase agreement due March 11, 2016 | 219,701 | 457,553 | 219,701 | |||||||
$ | 970,481 | $ | 1,775,758 | $ | 929,287 | |||||
December 31, 2014 | ||||||||||
CS repurchase agreement due April 20, 2015 | $ | 225,000 | $ | 332,618 | $ | 222,044 | ||||
Wells repurchase agreement due March 23, 2015 | $ | 750,000 | $ | 1,036,409 | $ | 569,509 | ||||
DB repurchase agreement due March 11, 2016 | $ | 250,000 | $ | 450,532 | $ | 223,447 | ||||
$ | 1,225,000 | $ | 1,819,559 | $ | 1,015,000 | |||||
Schedule of other secured debt | The following table sets forth data with respect to these notes as of March 31, 2015 ($ in thousands): | |||||||||
Interest Rate | Amount outstanding | |||||||||
31-Mar-15 | ||||||||||
ARLP Securitization Trust, Series 2014-1 | ||||||||||
ARLP 2014-1 Class A Notes due September 25, 2044(1) | 3.47 | % | $ | 145,953 | ||||||
ARLP 2014-1 Class M Notes due September 25, 2044(2) | 4.25 | % | 32,000 | |||||||
ARLP Securitization Trust, Series 2014-2 | ||||||||||
ARLP 2014-2 Class A Notes due January 26, 2054(3) | 3.85 | % | 264,034 | |||||||
ARLP 2014-2 Class M Notes due January 26, 2054 | — | % | 234,010 | |||||||
ARNS, Inc. | ||||||||||
Securities sold under agreement to repurchase due June 25, 2015 | 5 | % | 14,991 | |||||||
Intercompany eliminations | ||||||||||
Elimination of Class M Notes due to ARNS, Inc. | (32,000 | ) | ||||||||
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. | (45,138 | ) | ||||||||
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. | (234,010 | ) | ||||||||
$ | 379,840 | |||||||||
31-Dec-14 | ||||||||||
ARLP Securitization Trust, Series 2014-1 | ||||||||||
ARLP 2014-1 Class A Notes due September 25, 2044(1) | 3.47 | % | $ | 150,000 | ||||||
ARLP 2014-1 Class M Notes due September 25, 2044(2) | 4.25 | % | 32,000 | |||||||
ARLP Securitization Trust, Series 2014-2 | ||||||||||
ARLP 2014-2 Class A Notes due January 26, 2054(3) | 3.85 | % | 269,820 | |||||||
ARLP 2014-2 Class M Notes due January 26, 2054 | — | % | 234,010 | |||||||
ARNS, Inc. | ||||||||||
Securities sold under agreement to repurchase due March 27, 2015 | 5 | % | 14,991 | |||||||
Intercompany eliminations | ||||||||||
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. | (32,000 | ) | ||||||||
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. | (95,729 | ) | ||||||||
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. | (234,010 | ) | ||||||||
$ | 339,082 | |||||||||
_____________ | ||||||||||
-1 | The expected redemption date for the Class A Notes is September 25, 2017. | |||||||||
-2 | The expected redemption date for the Class M Notes is September 25, 2018. | |||||||||
-3 | The expected redemption date for the Class A Notes is November 27, 2017. |
Related_party_transactions_Tab
Related party transactions (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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 March 31, 2015 | Counter-party | Consolidated Statements of Operations location | ||||
2015 | ||||||
Residential property operating expenses | $ | 9,512 | Ocwen/Altisource | Residential property operating expenses | ||
Mortgage loan servicing costs | 16,985 | Ocwen | Mortgage loan servicing costs | |||
Other general and administrative expenses | 402 | Altisource | Related party general and administrative expenses | |||
Expense reimbursements | 750 | AAMC | Related party general and administrative expenses | |||
Management incentive fee | 14,900 | AAMC | Related party general and administrative expenses | |||
Interest expense | 160 | NewSource | Interest expense | |||
Professional fee sharing for negotiation of AMA | 2,000 | AAMC | Other income | |||
Three months ended March 31, 2014 | Counter-party | Consolidated Statements of Operations location | ||||
2014 | ||||||
Residential property operating expenses | $ | 1,050 | Ocwen/Altisource | Residential property operating expenses | ||
Mortgage loan servicing costs | 10,490 | Ocwen | Mortgage loan servicing costs | |||
Due diligence and unsuccessful deal costs | 111 | Altisource | Related party general and administrative expenses | |||
Other general and administrative expenses | — | Altisource | Related party general and administrative expenses | |||
Expense reimbursements | 1,469 | AAMC | Related party general and administrative expenses | |||
Management incentive fee | 10,911 | AAMC | Related party general and administrative expenses | |||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, 2015 | Three months ended March 31, 2014 | |||||||
Numerator | ||||||||
Net income | $ | 12,424 | $ | 41,913 | ||||
Denominator | ||||||||
Weighted average common stock outstanding – basic | 57,200,889 | 53,436,108 | ||||||
Stock options using the treasury method | 200,712 | 638,761 | ||||||
Restricted stock | 5,018 | 12,090 | ||||||
Weighted average common stock outstanding – diluted | 57,406,619 | 54,086,959 | ||||||
Earnings per basic share | $ | 0.22 | $ | 0.78 | ||||
Earnings per diluted share | $ | 0.22 | $ | 0.77 | ||||
Organization_and_basis_of_pres1
Organization and basis of presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 15 Months Ended | 27 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||
Dec. 28, 2014 | Sep. 30, 2014 | Dec. 21, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 25, 2014 | Feb. 09, 2015 | Nov. 25, 2014 | Mar. 22, 2013 | Apr. 20, 2015 | Dec. 18, 2013 | Apr. 30, 2015 | Feb. 20, 2015 | Sep. 23, 2013 | |
offering | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Proceeds from contributed capital | $100,000,000 | |||||||||||||||||
Number of public offerings | 3 | |||||||||||||||||
Repurchase agreements | 929,287,000 | 929,287,000 | 1,015,000,000 | 1,015,000,000 | ||||||||||||||
Issuance of common stock | 74,000 | 487,041,000 | 1,100,000,000 | |||||||||||||||
Other secured borrowings | 379,840,000 | 379,840,000 | 339,082,000 | 339,082,000 | ||||||||||||||
Securities sold under agreements to repurchase | 15,000,000 | 14,991,000 | 14,991,000 | 14,991,000 | 14,991,000 | |||||||||||||
Purchase price of securities sold under agreements to repurchase | 15,000,000 | |||||||||||||||||
Number of days master repurchase agreement may be extended | 89 days | |||||||||||||||||
Loans | ARLP 2014-2 | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Book value of the underlying securitized assets | 332,500,000 | 332,500,000 | ||||||||||||||||
Loans | ARLP 2014-1 | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Book value of the underlying securitized assets | 213,800,000 | 213,800,000 | ||||||||||||||||
Asset-backed securities Class A notes | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Other secured borrowings | 145,953,000 | 145,953,000 | 150,000,000 | 150,000,000 | 150,000,000 | |||||||||||||
Interest rate on debt | 3.47% | 3.47% | 3.47% | 3.47% | 3.47% | |||||||||||||
Asset-backed securities Class M notes | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Other secured borrowings | 32,000,000 | 32,000,000 | 32,000,000 | 32,000,000 | 32,000,000 | |||||||||||||
Secured debt issued to affiliates | -32,000,000 | -32,000,000 | 32,000,000 | 32,000,000 | ||||||||||||||
Interest rate on debt | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||
Asset-backed securities Class A notes Trust 2 | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Other secured borrowings | 264,034,000 | 264,034,000 | 269,820,000 | 269,820,000 | 50,700,000 | 270,800,000 | ||||||||||||
Secured debt issued to affiliates | 45,138,000 | 45,138,000 | 95,729,000 | 95,729,000 | 95,800,000 | |||||||||||||
Interest rate on debt | 3.85% | 3.85% | 3.85% | 3.85% | 3.85% | |||||||||||||
Asset-backed securities Class M notes Trust 2 | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Other secured borrowings | 234,010,000 | 234,010,000 | 234,000,000 | |||||||||||||||
Secured debt issued to affiliates | -234,010,000 | -234,010,000 | 234,010,000 | 234,010,000 | ||||||||||||||
Interest rate on debt | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||||||
Repurchase agreement NewSource | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||||
Secured debt | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 970,481,000 | 970,481,000 | 1,225,000,000 | 1,225,000,000 | ||||||||||||||
Repurchase agreements | 929,287,000 | 929,287,000 | 1,015,000,000 | 1,015,000,000 | ||||||||||||||
Secured debt | CS repurchase agreement | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 225,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | 100,000,000 | |||||||||||||
Repurchase agreements | 183,806,000 | 183,806,000 | 222,044,000 | 222,044,000 | ||||||||||||||
Number of days master repurchase agreement may be extended | 1 year | |||||||||||||||||
Secured debt | CS repurchase agreement | Subsequent event | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 275,000,000 | |||||||||||||||||
Secured debt | DB repurchase agreement | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 219,701,000 | 219,701,000 | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||
Repurchase agreements | 219,701,000 | 219,701,000 | 223,447,000 | 223,447,000 | ||||||||||||||
Secured debt | DB repurchase agreement | Subsequent event | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 219,701,000 | |||||||||||||||||
Secured debt | WF repurchase agreement | ||||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | 750,000,000 | 750,000,000 | 525,780,000 | 200,000,000 | ||||||||||||||
Maximum borrowing capacity during period | $1,000,000,000 | |||||||||||||||||
Advance rate under repurchase agreement | 10.00% | |||||||||||||||||
Term of nonrenewal restrictions | 90 days |
Mortgage_loans_Narrative_Detai
Mortgage loans Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | ||
Jun. 27, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | |
loan | |||||
Mortgage loans at fair value [Line Items] | |||||
Purchase price of loans acquired | $0 | $611,357,000 | |||
Purchase price of loans held for investment acquired | 144,600,000 | ||||
Amount accreted into interest income | 200,000 | ||||
Mortgage loans held for sale | 12,485,000 | 12,535,000 | |||
Transfer of mortgage loans to real estate owned | 136,182,000 | 96,528,000 | |||
Net realized gain on mortgage loans | 15,382,000 | 9,321,000 | |||
Residential mortgage | Loans receivable | |||||
Mortgage loans at fair value [Line Items] | |||||
Due diligence costs | 100,000 | 500,000 | |||
Number of real estate properties acquired through foreclosure | 724 | 636 | |||
Transfer of mortgage loans to real estate owned | 134,800,000 | 96,500,000 | |||
Unrealized gain (loss) from conversion of mortgage loans to real estate | 18,400,000 | 23,600,000 | |||
Number of mortgage loans liquidated | 934 | ||||
Net realized gain on mortgage loans | 15,400,000 | 9,300,000 | |||
Proceeds from sale of loans | 164,000,000 | ||||
Residential mortgage | Loans receivable | Nonperforming financing receivable | |||||
Mortgage loans at fair value [Line Items] | |||||
Number of loans acquired | 4,207 | ||||
Unpaid principal balance of loans and real estate acquired | 1,100,000,000 | ||||
Market value of underlying properties collateralizing loans acquired | 901,000,000 | ||||
Number of mortgage loans liquidated | 150 | 116 | 164 | ||
Residential mortgage | Loans receivable | Performing financing receivable | |||||
Mortgage loans at fair value [Line Items] | |||||
Number of loans acquired | 879 | ||||
Market value of underlying properties collateralizing loans held for investment acquired | 271,100,000 | ||||
Unpaid principal balance | 17,520,000 | 18,398,000 | |||
Number of mortgage loans liquidated | 770 | ||||
Residential mortgage | Loans receivable | Residential portfolio segment | Nonperforming financing receivable | |||||
Mortgage loans at fair value [Line Items] | |||||
Unpaid principal balance | 2,708,122,000 | 2,935,961,000 | |||
Foreclosure, carrying value of loans in process | $1,372,543,000 | $1,466,798,000 | |||
Foreclosure, number of loan in process | 7,021 | 7,841 |
Mortgage_loans_Certain_Loans_A
Mortgage loans Certain Loans Acquired Not Accounted For As Debt Securities (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Abstract] | |||
Mortgage loans held for sale | $12,485 | $12,535 | |
Additions to carrying amount of loans | 37 | ||
Payments and other reductions to carrying amount of loans, net | -319 | ||
Accretable yield | -7,207 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield, beginning balance | 7,640 | ||
Accretion | -232 | 0 | |
Payments and other reductions to accretable yield, net | -201 | ||
Accretable yield, ending balance | $7,207 |
Real_estate_assets_net_Compone
Real estate assets, net - Components of real estate assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
property | property | property | |
Real Estate [Abstract] | |||
Number of real estate properties held for sale | 966 | 44 | 611 |
Real estate assets held for sale fair value | $168,942,000 | $96,041,000 | |
Real estate assets held for sale | 150,807,000 | 4,200,000 | 92,230,000 |
Impairment recognized on REO properties | 9,000,000 | 4,900,000 | |
Number of real estate properties held for use | 3,464 | 852 | 3,349 |
Number of real estate properties rented | 587 | 35 | 336 |
Number of real estate properties listed for rent | 151 | 17 | 197 |
Number of real estate properties in various stages of lease preparation | 116 | 48 | 254 |
Number of real estate properties under evaluation for rental portfolio | 2,610 | 752 | 2,562 |
Number of real estate properties sold | 254 | 2 | |
Net realized gain on real estate | $10,608,000 | $0 |
Fair_value_of_financial_instru2
Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Real estate assets held for sale | $168,942 | $96,041 |
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 | |
Mortgage loans held for sale | 0 | 0 |
Repurchase agreements at fair value | 0 | 0 |
Other secured borrowings | 0 | 0 |
Fair value, inputs, level 2 [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans held for sale | 0 | 0 |
Repurchase agreements at fair value | 929,287 | 1,015,000 |
Other secured borrowings | 377,420 | 336,409 |
Fair value, inputs, level 3 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans held for sale | 12,485 | 12,535 |
Repurchase agreements at fair value | 0 | 0 |
Other secured borrowings | 0 | 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 | 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 | 0 |
Fair value measurements, recurring [Member] | Fair value, inputs, level 3 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans | 1,853,495 | 1,959,044 |
Fair value measurements, nonrecurring [Member] | Fair value, inputs, level 1 [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Real estate assets held for sale | 0 | 0 |
Transfer of real estate owned to mortgage loans | 0 | 0 |
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] | ||
Real estate assets held for sale | 0 | 0 |
Transfer of real estate owned to mortgage loans | 0 | 0 |
Transfer of mortgage loans to real estate owned | 0 | 0 |
Fair value measurements, nonrecurring [Member] | Fair value, inputs, level 3 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Real estate assets held for sale | 168,942 | 96,041 |
Transfer of real estate owned to mortgage loans | 1,356 | 8,400 |
Transfer of mortgage loans to real estate owned | $136,182 | $595,668 |
Fair_value_of_financial_instru3
Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfer of real estate owned to mortgage loans | $1,356 | $0 | ||
Fair value, inputs, level 3 | Loans receivable | Residential mortgage | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net unrealized gain on mortgage loans held at the end of the period | 51,068 | 38,197 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,959,044 | 1,207,163 | ||
Investment in mortgage loans | 0 | 612,508 | ||
Net unrealized gain on mortgage loans | 61,134 | 65,130 | ||
Net realized gain on mortgage loans | 15,382 | 9,321 | ||
Mortgage loan dispositions and payments | -65,168 | -39,458 | ||
Real estate tax advances to borrowers | 7,127 | 8,006 | ||
Reclassification of realized gains on real estate sold from unrealized gains | 10,802 | 0 | ||
Transfer of real estate owned to mortgage loans | 1,356 | 0 | ||
Transfer of mortgage loans to real estate owned | -136,182 | -96,528 | ||
Ending balance | $1,853,495 | $1,766,142 | $1,959,044 | $1,207,163 |
Fair_value_of_financial_instru4
Fair value of financial instruments - Fair value by delinquency (details) (Loans receivable, Residential mortgage, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | loan | loan |
Nonperforming financing receivable | Residential portfolio segment | ||
Number of loans | ||
Current | 794 | 670 |
30 | 95 | 109 |
60 | 41 | 57 |
90 | 2,138 | 2,286 |
Foreclosure, number of loan in process | 7,021 | 7,841 |
Mortgage loans | 10,089 | 10,963 |
Carrying value | ||
Current | $127,984 | $107,467 |
30 | 13,653 | 15,424 |
60 | 6,423 | 7,921 |
90 | 332,892 | 361,434 |
Foreclosure, carrying value of loans in process | 1,372,543 | 1,466,798 |
Mortgage loans | 1,853,495 | 1,959,044 |
Unpaid principal balance | ||
Current | 183,091 | 159,731 |
30 | 20,233 | 22,629 |
60 | 8,986 | 11,624 |
90 | 531,217 | 569,930 |
Foreclosure | 1,964,595 | 2,172,047 |
Mortgage loans | 2,708,122 | 2,935,961 |
Market value of underlying properties | ||
Current | 188,031 | 160,654 |
30 | 20,694 | 24,046 |
60 | 10,288 | 12,510 |
90 | 502,562 | 544,709 |
Foreclosure | 1,801,433 | 1,951,606 |
Mortgage loans | 2,523,008 | 2,693,525 |
Performing financing receivable | ||
Unpaid principal balance | ||
Mortgage loans | 17,520 | 18,398 |
Performing financing receivable | Residential portfolio segment | ||
Number of loans | ||
Current | 69 | 68 |
30 | 6 | 6 |
60 | 0 | 4 |
90 | 24 | 24 |
Mortgage loans | 99 | 102 |
Carrying value | ||
Current | 8,597 | 8,317 |
30 | 498 | 1,118 |
60 | 0 | 359 |
90 | 3,390 | 2,741 |
Mortgage loans | 12,485 | 12,535 |
Unpaid principal balance | ||
Current | 12,004 | 11,938 |
30 | 1,018 | 1,667 |
60 | 0 | 644 |
90 | 4,498 | 4,149 |
Market value of underlying properties | ||
Current | 15,102 | 15,154 |
30 | 1,074 | 2,004 |
60 | 0 | 670 |
90 | 5,931 | 4,624 |
Mortgage loans | $22,107 | $22,452 |
Fair_value_of_financial_instru5
Fair value of financial instruments - Fair value inputs, quantitative information (Details) (Loans receivable, Residential mortgage, Fair value, inputs, level 3, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair value inputs, assets, quantitative information [Line Items] | ||
Equity discount rate | 15.00% | 15.00% |
Debt to asset ratio | 65.00% | 65.00% |
Cost of funds | 3.50% | 3.50% |
LIBOR reference rate | 1 month LIBOR | 1 month LIBOR |
Minimum | ||
Fair value inputs, assets, quantitative information [Line Items] | ||
Annual change in home pricing index | 0.00% | -0.10% |
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 | 500 | 3,000 |
Maximum | ||
Fair value inputs, assets, quantitative information [Line Items] | ||
Annual change in home pricing index | 7.60% | 7.60% |
Loan resolution probabilities b modification | 44.70% | 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 4 months |
Value of underlying properties | 5,500,000 | 5,300,000 |
Borrowings_Repurchase_Agreemen
Borrowings - Repurchase Agreements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 22, 2013 | Dec. 18, 2013 |
Short-term Debt [Line Items] | ||||
Amount outstanding | $929,287,000 | $1,015,000,000 | ||
Secured debt | ||||
Short-term Debt [Line Items] | ||||
Interest rate | 3.06% | |||
Maximum borrowing capacity | 970,481,000 | 1,225,000,000 | ||
Book value of collateral | 1,775,758,000 | 1,819,559,000 | ||
Amount outstanding | 929,287,000 | 1,015,000,000 | ||
Secured debt | CS repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 225,000,000 | 225,000,000 | 100,000,000 | |
Book value of collateral | 331,633,000 | 332,618,000 | ||
Amount outstanding | 183,806,000 | 222,044,000 | ||
Secured debt | Wells repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 525,780,000 | 750,000,000 | ||
Book value of collateral | 986,572,000 | 1,036,409,000 | ||
Amount outstanding | 525,780,000 | 569,509,000 | ||
Secured debt | DB repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 219,701,000 | 250,000,000 | 250,000,000 | |
Book value of collateral | 457,553,000 | 450,532,000 | ||
Amount outstanding | 219,701,000 | 223,447,000 | ||
Secured debt | ARLP 2014-1 | Asset-backed securities Class M notes | ||||
Short-term Debt [Line Items] | ||||
Book value of collateral | 17,000,000 | |||
Secured debt | ARLP 2014-2 | Asset-backed securities Class A notes | ||||
Short-term Debt [Line Items] | ||||
Book value of collateral | 45,100,000 | |||
Secured debt, Class M notes | Secured debt | CS repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Amount outstanding | 10,600,000 | |||
Secured debt, Class A notes Trust 2 | Secured debt | CS repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Amount outstanding | $29,400,000 |
Borrowings_Other_Secured_Debt_
Borrowings - Other Secured Debt (Details) (USD $) | 0 Months Ended | ||||||
Dec. 28, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 09, 2015 | Nov. 25, 2014 | Sep. 25, 2014 | |
Debt Instrument [Line Items] | |||||||
Other secured borrowings | $379,840,000 | $339,082,000 | |||||
Securities sold under agreements to repurchase | 15,000,000 | 14,991,000 | 14,991,000 | ||||
Purchase price of securities sold under agreements to repurchase | 15,000,000 | ||||||
Number of days master repurchase agreement may be extended | 89 days | ||||||
Asset-backed securities Class A notes Trust 2 | |||||||
Debt Instrument [Line Items] | |||||||
Other secured borrowings | 264,034,000 | 269,820,000 | 50,700,000 | 270,800,000 | |||
Secured debt issued to affiliates | 45,138,000 | 95,729,000 | 95,800,000 | ||||
Interest rate on debt | 3.85% | 3.85% | 3.85% | ||||
Asset-backed securities Class M notes Trust 2 | |||||||
Debt Instrument [Line Items] | |||||||
Other secured borrowings | 234,010,000 | 234,000,000 | |||||
Secured debt issued to affiliates | -234,010,000 | 234,010,000 | |||||
Interest rate on debt | 0.00% | 0.00% | |||||
Asset-backed securities Class A notes | |||||||
Debt Instrument [Line Items] | |||||||
Other secured borrowings | 145,953,000 | 150,000,000 | 150,000,000 | ||||
Interest rate on debt | 3.47% | 3.47% | 3.47% | ||||
Asset-backed securities Class M notes | |||||||
Debt Instrument [Line Items] | |||||||
Other secured borrowings | 32,000,000 | 32,000,000 | 32,000,000 | ||||
Secured debt issued to affiliates | -32,000,000 | 32,000,000 | |||||
Interest rate on debt | 4.25% | 4.25% | 4.25% | ||||
Repurchase agreement NewSource | |||||||
Debt Instrument [Line Items] | |||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | ||||
ARLP 2014-2 | Loans | |||||||
Debt Instrument [Line Items] | |||||||
Book value of the underlying securitized assets | 332,500,000 | ||||||
ARLP 2014-1 | Loans | |||||||
Debt Instrument [Line Items] | |||||||
Book value of the underlying securitized assets | $213,800,000 |
Commitments_and_contingencies_
Commitments and contingencies Commitments and contingencies (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Commitments and Contingencies [Abstract] | |
Loss contingency accrual | $1.50 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Dec. 28, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 21, 2012 | Apr. 01, 2015 | Dec. 31, 2014 | |
property | ||||||||
Related party transaction [Line Items] | ||||||||
Common ownership percentage | 4.00% | 4.00% | ||||||
US Treasury rate | 10 years | |||||||
Securities sold under agreements to repurchase | $14,991,000 | $15,000,000 | $14,991,000 | $14,991,000 | ||||
Number of days master repurchase agreement may be extended | 89 days | |||||||
Purchase price of securities sold under agreements to repurchase | 15,000,000 | |||||||
Affiliated entity | Ocwen | Operating expense | Mortgage loan servicing costs | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 16,985,000 | 10,490,000 | ||||||
Affiliated entity | Altisource and Ocwen | Operating expense | Residential property operating expenses | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 9,512,000 | 1,050,000 | ||||||
Affiliated entity | AAMC | Other income | Professional fee sharing for negotiation of AMA | ||||||||
Related party transaction [Line Items] | ||||||||
Professional fee sharing for negotiation of AMA | 2,000,000 | |||||||
Affiliated entity | AAMC | Related party general and administrative expense | Expense reimbursements | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 750,000 | 1,469,000 | ||||||
Affiliated entity | AAMC | Management incentive fee | Management incentive fee | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 14,900,000 | 10,911,000 | ||||||
Affiliated entity | NewSource Reinsurance Company Ltd. | Interest expense | Interest expense | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 160,000 | |||||||
Affiliated entity | Altisource Portfolio Solutions | Related party general and administrative expense | Due diligence and unsuccessful deal costs | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | 111,000 | |||||||
Affiliated entity | Altisource Portfolio Solutions | Related party general and administrative expense | Other general and administrative | ||||||||
Related party transaction [Line Items] | ||||||||
Related party expenses | $402,000 | $0 | ||||||
Repurchase agreement NewSource | ||||||||
Related party transaction [Line Items] | ||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | ||||
AAMC | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Common ownership percentage | 28.00% | 28.00% | ||||||
Common ownership, stock options exercisable | 85,755 | 85,755 | ||||||
Altisource Portfolio Solutions | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Common ownership percentage | 30.00% | 30.00% | ||||||
Common ownership, stock options exercisable | 857,543 | 857,543 | ||||||
Ocwen | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Common ownership percentage | 14.00% | 14.00% | ||||||
Common ownership, stock options exercisable | 3,322,626 | 3,322,626 | ||||||
Common ownership, stock options outstanding | 3,572,626 | 3,572,626 | ||||||
Altisource Residential Corporation | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Base management fee, percent of qualified average invested capital | 1.50% | |||||||
Conversion fee, percent of market value of new rental properties | 1.50% | |||||||
Incentive management fee, percent of incentive fee payable in common stock | 25.00% | |||||||
Altisource Residential Corporation | Affiliated entity | Asset management fee, threshold one | ||||||||
Related party transaction [Line Items] | ||||||||
Incentive management fee, percent of average invested capital | 25.00% | |||||||
Incentive management fee, percent of invested capital in excess of threshold | 20.00% | |||||||
Base management fee, number of rental properties cap | 2,500 | |||||||
Altisource Residential Corporation | Affiliated entity | Asset management fee, threshold two | ||||||||
Related party transaction [Line Items] | ||||||||
Incentive management fee, percent of average invested capital | 1.75% | |||||||
Incentive management fee, number of rental properties, floor | 2,500 | |||||||
Base management fee, number of rental properties floor | 2,500 | |||||||
Incentive management fee, number of rental properties cap | 4,499 | |||||||
Incentive management fee, percent of invested capital in excess of threshold | 22.50% | |||||||
Altisource Residential Corporation | Affiliated entity | Asset management fee, threshold three | ||||||||
Related party transaction [Line Items] | ||||||||
Incentive management fee, percent of average invested capital | 2.00% | |||||||
Incentive management fee, number of rental properties, floor | 4,500 | |||||||
Incentive management fee, percent of invested capital in excess of threshold | 25.00% | |||||||
Altisource Residential Corporation | Affiliated entity | Asset Management Agreement | ||||||||
Related party transaction [Line Items] | ||||||||
Contract term | 15 years | |||||||
Automatic renewal term | 5 years | |||||||
Minimum | Altisource Residential Corporation | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Incentive management fee, return on invested capital | 7.00% | |||||||
Maximum | Altisource Residential Corporation | Affiliated entity | ||||||||
Related party transaction [Line Items] | ||||||||
Incentive management fee, return on invested capital | 8.25% |
Sharebased_payments_Details
Share-based payments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | 31-May-14 | |
Share-based compensation [Line Items] | ||||
Value of restricted stock granted to directors annually | $45,000 | |||
Required service period for restricted stock | 1 year | |||
Director attendance requirement | 75.00% | |||
Share-based compensation expense | $100,000 | $100,000 |
Income_taxes_Details
Income taxes (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 30, 2015 | Mar. 11, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Minimum distribution of REIT taxable income, amount | $55,300,000 | |||||
Dividends declared per common share | $0.55 | $0.08 | $0.08 | $0.63 | $0.48 | $2.03 |
Dividends on common stock | 4,600,000 | 4,500,000 | 4,576,000 | 27,398,000 | 116,000,000 | |
Minimum distribution of REIT taxable income, percent | 90.00% | |||||
Taxable net income (loss) attributable to parent | 115,800,000 | |||||
Net capital gains | $54,400,000 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $12,424 | $41,913 |
Weighted average common stock outstanding b basic | 57,200,889 | 53,436,108 |
Stock options using the treasury method | 200,712 | 638,761 |
Restricted stock | 5,018 | 12,090 |
Weighted average common stock outstanding b diluted | 57,406,619 | 54,086,959 |
Earnings per basic share | $0.22 | $0.78 |
Earnings per diluted share | $0.22 | $0.77 |
Subsequent_events_Details
Subsequent events (Details) (Secured debt, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 10, 2015 | Mar. 22, 2013 | Apr. 20, 2015 |
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $970,481,000 | $1,225,000,000 | |||
Loan agreement | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | ||||
CS repurchase agreement | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | 225,000,000 | 225,000,000 | 100,000,000 | ||
CS repurchase agreement | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $275,000,000 |
Uncategorized_Items
Uncategorized Items | 12/31/12 | ||||
USD ($) | |||||
[us-gaap_CommonStockSharesOutstanding] | 42,286,669 | ||||
[us-gaap_StockholdersEquity] | 785,427,000 | 758,584,000 | 423,000 | 26,420,000 |