Document and Entity information
Document and Entity information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity registrant name | Altisource Residential Corporation | |
Entity central index key | 1,555,039 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Document type | 10-Q | |
Document period end date | Jun. 30, 2015 | |
Document fiscal year focus | 2,015 | |
Document fiscal period focus | Q2 | |
Amendment flag | false | |
Entity common stock, shares outstanding | 57,216,166 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Real estate held for use: | ||
Land | $ 23,743 | $ 14,424 |
Rental residential properties (net of accumulated depreciation of $3,351 and $1,062, respectively) | 97,533 | 60,908 |
Real estate owned | 548,137 | 457,045 |
Total real estate held for use, net | 669,413 | 532,377 |
Real estate assets held for sale | 134,027 | 92,230 |
Mortgage loans at fair value | 1,716,489 | 1,959,044 |
Mortgage loans held for sale | 5,977 | 12,535 |
Cash and cash equivalents | 70,502 | 66,166 |
Restricted cash | 18,459 | 13,282 |
Accounts receivable | 45,981 | 10,313 |
Related party receivables | 0 | 17,491 |
Investment in affiliate | 18,000 | 18,000 |
Deferred leasing and financing costs, net | 8,605 | 4,251 |
Prepaid expenses and other assets | 6,184 | 373 |
Total assets | 2,693,637 | 2,726,062 |
Liabilities: | ||
Repurchase and loan and security agreements | 810,236 | 1,015,000 |
Other secured borrowings (including $14,991 repurchase agreement with NewSource at June 30, 2015 and December 31, 2014) | 538,916 | 339,082 |
Accounts payable and accrued liabilities | 54,247 | 11,678 |
Related party payables | 5,163 | 33,391 |
Total liabilities | $ 1,408,562 | $ 1,399,151 |
Commitments and contingencies (Note 6) | ||
Equity: | ||
Common stock, $.01 par value, 200,000,000 authorized shares; 57,216,166 and 57,192,212 shares issued and outstanding, at June 30, 2015 and December 31, 2014, respectively | $ 572 | $ 572 |
Additional paid-in capital | 1,227,246 | 1,227,091 |
Retained earnings | 57,257 | 99,248 |
Total equity | 1,285,075 | 1,326,911 |
Total liabilities and equity | $ 2,693,637 | $ 2,726,062 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Rental residential properties - accumulated depreciation | $ 3,351,000 | $ 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 | 57,216,166 | 57,192,212 |
Common stock, shares outstanding | 57,216,166 | 57,192,212 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||||
Rental revenues | $ 2,140 | $ 181 | $ 3,540 | $ 250 |
Net unrealized gain on mortgage loans | 42,209 | 105,042 | 103,343 | 170,172 |
Net realized gain on mortgage loans | 19,272 | 10,819 | 34,654 | 20,140 |
Net realized gain on re-performing mortgage loans | 254 | 0 | 405 | 0 |
Net realized gain on real estate | 12,404 | 1,234 | 23,012 | 1,234 |
Interest income | 240 | 81 | 480 | 189 |
Total revenues | 76,519 | 117,357 | 165,434 | 191,985 |
Expenses: | ||||
Residential property operating expenses | 16,857 | 3,253 | 29,316 | 4,303 |
Real estate depreciation and amortization | 1,344 | 103 | 2,342 | 151 |
Real estate selling costs and impairment | 8,839 | 2,879 | 23,530 | 3,233 |
Mortgage loan servicing costs | 16,246 | 16,925 | 34,512 | 28,362 |
Interest expense | 13,398 | 6,945 | 25,041 | 12,653 |
General and administrative | 1,569 | 2,808 | 6,350 | 3,846 |
Related party general and administrative | 5,151 | 17,467 | 20,801 | 30,099 |
Total expenses | 63,404 | 50,380 | 141,892 | 82,647 |
Other income | 0 | 383 | 2,000 | 383 |
Income before income taxes | 13,115 | 67,360 | 25,542 | 109,721 |
Income tax expense (benefit) | 23 | (422) | 26 | 26 |
Net income | $ 13,092 | $ 67,782 | $ 25,516 | $ 109,695 |
Earnings per share of common stock – basic: | ||||
Earnings per basic share (usd per share) | $ 0.23 | $ 1.19 | $ 0.45 | $ 1.98 |
Weighted average common stock outstanding – basic (in shares) | 57,208,273 | 57,138,695 | 57,204,602 | 55,297,630 |
Earnings per share of common stock – diluted: | ||||
Earnings per diluted share (usd per share) | $ 0.23 | $ 1.18 | $ 0.44 | $ 1.97 |
Weighted average common stock outstanding – diluted (in shares) | 57,407,845 | 57,401,953 | 57,407,253 | 55,754,685 |
Dividends declared per common share | $ 0.55 | $ 0.45 | $ 1.18 | $ 0.93 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings |
Dividends declared per common share | $ 0.93 | |||
Beginning balance, shares at Dec. 31, 2013 | 42,286,669 | |||
Beginning balance at Dec. 31, 2013 | $ 785,427 | $ 423 | $ 758,584 | $ 26,420 |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock, shares | 14,875,402 | |||
Issuance of common stock, including stock option exercises | 483,606 | $ 149 | 483,457 | |
Cost of issuance of common stock | (15,215) | (15,215) | ||
Dividends on common stock ($1.18 per share) | (53,118) | (53,118) | ||
Share-based compensation | 113 | 113 | ||
Net income | 109,695 | 109,695 | ||
Ending balance, shares at Jun. 30, 2014 | 57,162,071 | |||
Ending balance at Jun. 30, 2014 | $ 1,310,508 | $ 572 | 1,226,939 | 82,997 |
Dividends declared per common share | $ 2.03 | |||
Beginning balance, shares at Dec. 31, 2013 | 42,286,669 | |||
Beginning balance at Dec. 31, 2013 | $ 785,427 | $ 423 | 758,584 | 26,420 |
Ending balance, shares at Dec. 31, 2014 | 57,192,212 | 57,192,212 | ||
Ending balance at Dec. 31, 2014 | $ 1,326,911 | $ 572 | 1,227,091 | 99,248 |
Dividends declared per common share | $ 1.18 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock, shares | 23,954 | |||
Issuance of common stock, including stock option exercises | $ 62 | $ 0 | 62 | |
Dividends on common stock ($1.18 per share) | (67,507) | (67,507) | ||
Share-based compensation | 93 | 93 | ||
Net income | $ 25,516 | 25,516 | ||
Ending balance, shares at Jun. 30, 2015 | 57,216,166 | 57,216,166 | ||
Ending balance at Jun. 30, 2015 | $ 1,285,075 | $ 572 | $ 1,227,246 | $ 57,257 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 25,516 | $ 109,695 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net unrealized gain on mortgage loans | (103,343) | (170,172) |
Net realized gain on mortgage loans | (34,654) | (20,140) |
Net realized gain on sale of re-performing mortgage loans | (405) | 0 |
Net realized gain on sale of real estate | (23,012) | (1,293) |
Real estate depreciation and amortization | 2,342 | 151 |
Real estate selling costs and impairment | 23,530 | 3,233 |
Accretion of interest on re-performing mortgage loans | (469) | 0 |
Share-based compensation | 93 | 113 |
Amortization of deferred financing costs | 2,218 | 1,171 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,214 | 797 |
Related party receivables | 0 | 4,952 |
Prepaid expenses and other assets | (180) | (180) |
Accounts payable and accrued liabilities | 7,004 | 1,061 |
Related party payables | (22,407) | 26,068 |
Net cash used in operating activities | (119,553) | (44,544) |
Investing activities: | ||
Investment in mortgage loans | 0 | (1,056,493) |
Investment in real estate | 0 | (27,569) |
Investment in renovations | (11,001) | (1,700) |
Real estate tax advances | (14,443) | (14,368) |
Mortgage loan dispositions | 107,887 | 70,379 |
Mortgage loan payments | 12,447 | 7,951 |
Disposition of real estate | 70,916 | 3,466 |
Acquisition related deposits | (5,631) | 0 |
Change in restricted cash | (5,177) | (4,391) |
Net cash provided by (used in) investing activities | 154,998 | (1,022,725) |
Financing activities: | ||
Issuance of common stock, including stock option exercises | 134 | 487,142 |
Payment of tax withholdings on exercise of stock options | (72) | (3,536) |
Cost of issuance of common stock | 0 | (15,215) |
Dividends on common stock | (36,038) | (53,118) |
Proceeds from issuance of other secured debt | 221,691 | 0 |
Repayments of secured notes | (21,306) | 0 |
Proceeds from repurchase agreement | 109,683 | 749,240 |
Repayments of repurchase agreement | (298,078) | (80,139) |
Payment of deferred financing costs | (7,123) | (2,335) |
Net cash (used in) provided by financing activities | (31,109) | 1,082,039 |
Net increase in cash and cash equivalents | 4,336 | 14,770 |
Cash and cash equivalents as of beginning of the period | 66,166 | 115,988 |
Cash and cash equivalents as of end of the period | 70,502 | 130,758 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 21,732 | 10,496 |
Transfer of mortgage loans to real estate owned | 271,547 | 220,971 |
Transfer of real estate owned to mortgage loans | 2,865 | 3,594 |
Change in accrued capital expenditures | (1,732) | 1,746 |
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances to borrowers, net | 36,359 | 4,796 |
Change in receivables from real estate owned dispositions | 1,369 | 0 |
Change in payables from dividends | $ 31,469 | $ 0 |
Organization and basis of prese
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 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 and managing single-family rental properties throughout the United States. We conduct substantially all of our activities through our wholly owned subsidiary Altisource Residential, L.P. and its subsidiaries. To date, we have acquired 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. Given evolving market conditions, commencing in the second quarter of 2015, we expanded our acquisition strategy to opportunistically acquire portfolios of single-family rental properties as an avenue to more quickly achieve scale in our rental portfolio where we believe the economics make sense. We also commenced a program to begin purchasing REO properties on a one-by-one basis sourcing listed properties from the Multiple Listing Service ("MLS") and alternative listing sources. We expect the first purchases of this program to occur in the third quarter of 2015. 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 “New AMA”) with an effective date of April 1, 2015. Prior to the AMA, we were party to a different asset management agreement with AAMC (the “Original AMA”) pursuant to which we paid incentive fees, which we refer to as “incentive management fees,” that gave AAMC a share of cash flow available for distribution to our 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 loans and REOs 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 our 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 . On April 10, 2015, we also entered into a loan and security agreement (the “Nomura loan agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”). The purpose of the Nomura loan agreement is to finance our beneficial ownership of REO properties. The maximum aggregate funding available to us under the repurchase agreements and the Nomura loan agreement as of June 30, 2015 was $1.0 billion , subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of June 30, 2015 , an aggregate of $810.2 million was outstanding under our repurchase agreements and the Nomura loan agreement. All obligations of our subsidiaries under the repurchase agreements and the Nomura loan agreement are fully guaranteed by us. Each of our repurchase agreements and the Nomura loan agreement 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. • Deutsche Bank (“DB”) is the lender on the repurchase agreement entered into on September 12, 2013 (the “DB repurchase agreement”). The DB repurchase agreement matures on March 11, 2016 and includes a provision that after March 2015, we are not eligible for additional funding under the facility, thereby reducing our aggregate funding capacity under the DB repurchase agreement to $91.8 million , which was the amount outstanding under the facility on June 30, 2015 . • 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 $471.3 million on June 30, 2015 , which was the amount outstanding under the facility at that 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. The agreement calls for the advance rate to be reduced by 10% after the first 90 days of the extension term. The 10% reduction date has been extended for an additional 90 days while the parties are negotiating an amended and restated repurchase agreement. • Nomura is the lender on the Nomura loan agreement entered into on April 10, 2015 with an initial aggregate maximum funding capacity of $100.0 million . On May 12, 2015, we amended the terms of the Nomura loan agreement to increase the aggregate maximum funding capacity to $200.0 million , subject to certain sublimits, eligibility requirements and conditions precedent to each funding. The Nomura loan agreement terminates on April 8, 2016. Since September 2014, we have also completed three securitization transactions, each of which is summarized below: • On June 29, 2015, we completed a securitization transaction in which ARLP Securitization Trust, Series 2015-1 ("ARLP 2015-1") issued $205.0 million in Class A Notes (the “ARLP 2015-1 Class A Notes”) with a weighted coupon of approximately 4.01% and $60.0 million in Class M Notes (the “ARLP 2015-1 Class M Notes”). We retained $34.0 million of the ARLP 2015-1 Class A Notes and all of the ARLP 2015-1 Class M Notes. No interest will be paid on any ARLP 2015-1 Class M Notes while any ARLP 2015-1 Class A Notes remain outstanding. The ARLP 2015-1 Class A Notes and ARLP 2015-1 Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2015-1 and not by any of our other assets. The assets of ARLP 2015-1 are the only source of repayment and interest on the ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes. The ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes mature on May 25, 2055, and we do not guaranty any of the obligations of ARLP 2015-1 under the terms of the Indenture governing the notes or otherwise. As of June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2015-1 was $275.7 million . • 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 “ARLP 2014-2 Class A Notes”) with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes (the “ARLP 2014-2 Class M Notes”). We initially retained $95.8 million of the ARLP 2014-2 Class A Notes and all of the ARLP 2014-2 Class M Notes. On February 9, 2015, we sold $50.7 million of the retained ARLP 2014-2 Class A Notes to an unrelated third party. No interest will be paid on any ARLP 2014-2 Class M Notes while any ARLP 2014-2 Class A Notes remain outstanding. The ARLP 2014-2 Class A Notes and ARLP 2014-2 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 ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes. The ARLP 2014-2 Class A Notes and the ARLP 2014-2 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 June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2014-2 was $329.0 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 “ARLP 2014-1 Class A Notes”) with a weighted coupon of approximately 3.47% and $32.0 million in Class M Notes (the “ARLP 2014-1 Class M Notes”) with a weighted coupon of 4.25% . The ARLP 2014-1 Class A Notes and the ARLP 2014-1 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 ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 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 June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2014-1 was $208.5 million . We retained all of the ARLP 2014-1 Class M Notes in our taxable REIT subsidiary (“TRS”). On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. The master repurchase agreement initially required the TRS to repurchase the ARLP 2014-1 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 September 22, 2015. For a more complete description of our repurchase agreements, loan and security agreement and securitization transactions, please see “Note 5. Borrowings.” 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, 2017. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2016. We do not expect this amendment to have a significant effect on our financial position or results of operations. |
Mortgage loans
Mortgage loans | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage loans | Mortgage loans Acquisitions of non-performing residential mortgage loans During the six months ended June 30, 2015 , we did not acquire any portfolios of non-performing residential mortgage loans. During the six months ended June 30, 2014 , we acquired an aggregate of 5,797 residential mortgage loans, substantially all of which were non-performing, and 190 REO properties having an aggregate UPB of approximately $1.6 billion and an aggregate market value of underlying properties of approximately $1.4 billion . The aggregate purchase price for these acquisitions was approximately $940.5 million . During the three and six months ended June 30, 2015 , we recognized $0.3 million and $0.4 million , respectively, for due diligence costs related to a potential purchase of a portfolio we did not ultimately acquire. During the three and six months ended June 30, 2014 , we recognized $2.4 million and $2.9 million , respectively, for due diligence costs related to 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 and REO portfolios may be irregularly timed and may involve large portfolios of loans or REO, and the timing and extent of our success in acquiring such assets 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 June 30, 2015 and 2014 , we transferred 687 and 894 mortgage loans, respectively, to REO at an aggregate fair value based on broker pric e opinions ("BPOs") of $133.9 million and $120.8 million , respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, we recorded $14.7 million and $28.5 million , respectively, in net unrealized gains on mortgage loans. During the six months ended June 30, 2015 and 2014 , we transferred 1,411 and 1,530 mortgage loans, respectively, to REO at an aggregate fair value based on BPOs of $268.7 million and $217.4 million , respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, we recorded $33.1 million and $52.1 million , respectively, in net unrealized gains on mortgage loans. At June 30, 2015 , we had 6,316 loans with a carrying value of $1.3 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 of non-performing residential mortgage loans During the three months ended June 30, 2015 and 2014 , we disposed of 270 and 135 mortgage loans, respectively, primarily through short sales, refinancing, foreclosure sales, and sale of loans that had transitioned to re-performing loans from prior non-performing loan acquisitions. In connection with these dispositions, we recorded $19.3 million and $10.8 million , respectively, of net realized gains on mortgage loans. During the six months ended June 30, 2015 and 2014 , we disposed of 420 and 251 mortgage loans, respectively, primarily through short sales, refinancing, foreclosure sales, and sale of loans that had transitioned to re-performing loans from prior non-performing loan acquisitions. In connection with these dispositions, we recorded $34.7 million and $20.1 million , respectively, of net realized gains on mortgage loans. Acquisition and dispositions 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. During June 2015, we sold an aggregate of 189 re-performing loans to an unrelated third party for an aggregate purchase price of $34.6 million . The sale included 52 loans from the re-performing mortgage loans purchased in June 2014, and 137 loans that had transitioned to re-performing status from prior non-performing loan acquisitions. Approximately $2.0 million of the proceeds from the June 2015 re-performing loan sale were used to purchase the loans out of our ARLP 2014-1 and ARLP 2014-2 securitizations and approximately $16.4 million of the proceeds were used to purchase the loans out of our Wells repurchase facility. Therefore, our net proceeds from the June 2015 re-performing loan sale were approximately $16.2 million . 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 and six months ended June 30, 2015 , we recognized no provision for loan loss and no adjustments to the amount of the accretable yield. For the three and six months ended June 30, 2015 , we accreted $0.2 million and $0.5 million , respectively, into interest income with respect to our re-performing loans. As of June 30, 2015 , these re-performing loans, having a UPB of $8.8 million and a carrying value of $6.0 million , were held for sale. The following tables present information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition and changes in the balance of the accretable yield ($ in thousands): Six months ended June 30, 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 (3,285 ) (7,064 ) Accretion (469 ) 469 Balance at the end of the period $ 3,886 $ 5,977 |
Real estate assets, net
Real estate assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate [Abstract] | |
Real estate assets, net | Real estate assets, net Acquisitions six months ended June 30, 2015 , we acquired no REO properties. During three and six months ended June 30, 2014 , we acquired 190 REO properties as part of our portfolio acquisitions for an aggregate purchase price of $27.6 million . On June 28, 2015, we entered into an agreement (the “IH Purchase Agreement”) to purchase an aggregate of 1,325 REO properties, the substantial majority of which were rented and occupied, from certain subsidiaries of Invitation Homes (“Invitation Homes”) for an aggregate purchase price of approximately $112.6 million (the “IH Transaction”). The IH Purchase Agreement provided for a 30-day contingency period after signing in which we were entitled to complete due diligence on the REO properties, with each of Invitation Homes and us having the ability to terminate the IH Purchase Agreement based on the due diligence results. On July 28, 2015, the contingency period expired, and Invitation Homes and we determined to move forward with the closing of the IH Transaction. We currently expect to complete the IH Transaction in the third quarter of 2015. There can be no assurance that we will be able to complete the IH Transaction on a timely basis or at all. Real estate held for use As of June 30, 2015 , we had 3,977 REO properties held for use. Of these properties, 777 had been rented, 96 were being listed for rent and 111 were in varying stages of renovation. With respect to the remaining 2,993 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 June 30, 2014 , we had 1,766 REO properties held for use. Of these properties, 102 had been rented, 40 were being listed for rent and 140 were in various stages of renovation. With respect to the remaining 1,484 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 June 30, 2015 , we classified 819 REO properties having an aggregate carrying value of $134.0 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 June 30, 2014 , we had 192 REO properties having an aggregate carrying value of $27.6 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 June 30, 2015 we had $7.8 million of impairment on the 819 REO properties having a fair value of $153.9 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 192 REO properties held at June 30, 2014 . Dispositions During the three and six months ended June 30, 2015 , we disposed of 321 and 575 REO properties, respectively, and recorded $12.4 million and $23.0 million of net realized gains on real estate, respectively. During the three and six months ended June 30, 2014 , we disposed of 22 and 24 REO properties, respectively, and recorded $1.2 million of net realized gains for the three and six months ended June 30, 2014 . |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of June 30, 2015 and December 31, 2014 ($ in thousands): Level 1 Level 2 Level 3 Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs June 30, 2015 Recurring basis (assets) Mortgage loans $ — $ — $ 1,716,489 Nonrecurring basis (assets) Real estate assets held for sale $ — $ — $ 153,868 Transfer of real estate owned to mortgage loans $ — $ — $ 2,865 Transfer of mortgage loans to real estate owned $ — $ — $ 271,547 Not recognized on consolidated balance sheets at fair value (assets) Mortgage loans held for sale $ — $ — $ 5,977 Not recognized on consolidated balance sheets at fair value (liabilities) Repurchase agreements at fair value $ — $ 810,236 $ — Other secured borrowings $ — $ 536,491 $ — December 31, 2014 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 six months ended June 30, 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 June 30, 2015 Three months ended June 30, 2014 Six months ended June 30, 2015 Six months ended June 30, 2014 Mortgage loans Beginning balance $ 1,853,495 $ 1,766,142 $ 1,959,044 $ 1,207,163 Investment in mortgage loans — 300,503 — 913,011 Net unrealized gain on mortgage loans 42,209 105,042 103,343 170,172 Net realized gain on mortgage loans 19,272 10,819 34,654 20,140 Mortgage loan dispositions and payments (82,070 ) (44,314 ) (147,238 ) (83,772 ) Real estate tax advances to borrowers 4,264 4,716 11,391 12,722 Reclassification of realized gains on real estate sold from unrealized gains 13,175 — 23,977 — Transfer of real estate owned to mortgage loans 1,509 5,563 2,865 5,563 Transfer of mortgage loans to real estate owned (135,365 ) (124,443 ) (271,547 ) (220,971 ) Ending balance at June 30 $ 1,716,489 $ 2,024,028 $ 1,716,489 $ 2,024,028 Net unrealized gain on mortgage loans held at the end of the period $ 29,784 $ 70,623 $ 80,852 $ 108,820 The following table sets forth the fair value of our non-performing mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2015 and December 31, 2014 ($ in thousands): Number of loans Carrying value Unpaid principal balance Market value of underlying properties (1) June 30, 2015 Current 727 $ 117,544 $ 165,532 $ 169,272 30 102 16,148 22,309 24,784 60 59 7,128 10,398 11,972 90 1,930 316,877 493,893 477,131 Foreclosure 6,316 1,258,792 1,767,873 1,654,676 Mortgage loans 9,134 $ 1,716,489 $ 2,460,005 $ 2,337,835 December 31, 2014 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 _____________ (1) Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed. The following table sets forth the carrying value of our remaining re-performing mortgage loans from the re-performing loan portfolio we bought in June 2014, which are held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2015 and December 31, 2014 ($ in thousands): Number of loans Carrying value Unpaid principal balance Market value of underlying properties (1) June 30, 2015 Current 13 $ 1,908 $ 2,531 $ 3,760 30 6 1,045 1,440 1,909 60 5 466 1,254 1,253 90 17 2,457 3,126 3,847 Foreclosure 3 101 422 348 Mortgage loans held for sale 44 $ 5,977 $ 8,773 $ 11,117 December 31, 2014 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 _____________ (1) Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed. The significant unobservable inputs used in the fair value measurement of our mortgage loans are discount rates, forecasts of future home prices, alternate loan resolution probabilities, resolution timelines and the value of underlying properties. Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics such as location and value of underlying collateral affect the loan resolution probabilities and timelines. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value. The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our mortgage loans as of June 30, 2015 and December 31, 2014 : Input June 30, 2015 December 31, 2014 Equity discount rate 15.0% 15.0% Debt to asset ratio 65.0% 65.0% Cost of funds 3.5% over 1 month LIBOR 3.5% over 1 month LIBOR Annual change in home pricing index 0% to 7.5% -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 - $5,300,000 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Repurchase agreements and the Nomura loan agreement Our operating partnership and certain of its Delaware Statutory Trust subsidiaries, as applicable, have entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans, rental properties and REO properties in our portfolio. On April 10, 2015, we also entered into the Nomura loan agreement for the purpose of financing our beneficial ownership of REO properties. We have effective control of the assets associated with these agreements and therefore have concluded these are financing arrangements. As of June 30, 2015 , the weighted average annualized interest rate on borrowings under our repurchase agreements and the Nomura loan agreement was 3.30% , excluding amortization of deferred financing costs. The following table sets forth data with respect to our repurchase agreements and the Nomura loan agreement as of June 30, 2015 and December 31, 2014 ($ in thousands): Maximum borrowing capacity Book value of collateral Amount outstanding June 30, 2015 CS repurchase agreement due April 18, 2016 $ 275,000 $ 367,114 $ 202,855 Wells repurchase agreement due March 23, 2016 471,303 949,984 471,303 DB repurchase agreement due March 11, 2016 91,750 208,958 91,750 Nomura loan agreement due April 8, 2016 200,000 69,831 44,328 $ 1,038,053 $ 1,595,887 $ 810,236 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 of our repurchase agreements, 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 June 30, 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 A-2 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." Under the terms of the Nomura loan agreement, subject to certain conditions, Nomura may advance funds to us from time to time, with such advances collateralized by REO properties. The advances paid under the Nomura 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 Nomura loan agreement, we are required to pay 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 facility. The Nomura loan agreement requires us to maintain various financial and other covenants, including 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 Nomura 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 Nomura loan agreement and the liquidation by Nomura of the REO properties then subject thereto. Other Secured Debt - Securitizations On June 29, 2015, we completed a securitization transaction in which ARLP 2015-1 issued $205.0 million in ARLP 2015-1 Class A Notes with a weighted coupon of approximately 4.01% and $60.0 million in ARLP 2015-1 Class M Notes. ARLP 2015-1 is a Delaware statutory trust that is wholly-owned by our operating partnership with a federally-chartered bank as its trustee. We retained $34.0 million of the ARLP 2015-1 Class A Notes and all of the ARLP 2015-1 Class M Notes. No interest will be paid on any ARLP 2015-1 Class M Notes while any ARLP 2015-1 Class A Notes remain outstanding. The ARLP 2015-1 Class A Notes and ARLP 2015-1 Class M Notes are non-recourse to us and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2015-1 but not by any of our other assets. The assets of ARLP 2015-1 are the only source of repayment and interest on the ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes, thereby making the cash proceeds received by ARLP 2015-1 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2015-1 to the bond holders. The ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes mature on May 25, 2055, and we do not guaranty any of the obligations of ARLP 2015-1 under the terms of the Indenture governing the notes or otherwise. As of June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2015-1 was $275.7 million . On November 25, 2014, we completed a securitization transaction in which ARLP 2014-2 issued $270.8 million in ARLP 2014-2 Class A Notes with a weighted coupon of approximately 3.85% and $234.0 million in ARLP 2014-2 Class M Notes. ARLP 2014-2 is a Delaware statutory trust that is wholly-owned by our operating partnership with a federally-chartered bank as its trustee. We initially retained $95.8 million of the ARLP 2014-2 Class A Notes and all of the ARLP 2014-2 Class M Notes. On February 9, 2015, we sold $50.7 million of the retained ARLP 2014-2 Class A Notes to an unrelated third party. No interest will be paid on any ARLP 2014-2 Class M Notes while any ARLP 2014-2 Class A Notes remain outstanding. The ARLP 2014-2 Class A Notes and ARLP 2014-2 Class M Notes are non-recourse to us and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 but not by any of our other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes, thereby making the cash proceeds received by ARLP 2014-2 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2014-2 to the bond holders. The ARLP 2014-2 Class A Notes and the ARLP 2014-2 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 June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2014-2 was $329.0 million . On September 25, 2014, we completed a securitization transaction in which ARLP 2014-1 issued $150.0 million in ARLP 2014-1 Class A Notes with a weighted coupon of approximately 3.47% and $32.0 million in ARLP 2014-1 Class M Notes with a weighted coupon of 4.25% . ARLP 2014-1 is a Delaware statutory trust that is wholly-owned by our operating partnership with a federally-chartered bank as its trustee. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes are non-recourse to us and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-1 but not by any of our other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes, thereby making the cash proceeds received by ARLP 2014-1 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2014-1 to the bond holders. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 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 June 30, 2015 , the book value of the underlying securitized assets held by ARLP 2014-1 was $208.5 million . We retained all of the ARLP 2014-1 Class M Notes in our TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. The master repurchase agreement initially required the TRS to repurchase the ARLP 2014-1 Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89 -day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on September 22, 2015. The following table sets forth data with respect to these notes as of June 30, 2015 and December 31, 2014 ($ in thousands): Interest Rate Amount outstanding June 30, 2015 ARLP Securitization Trust, Series 2015-1 ARLP 2015-1 Class A Notes due May 25, 2055 (1) 4.01 % $ 205,000 ARLP 2015-1 Class M Notes due May 25, 2044 — % 60,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (2) 3.87 % 255,144 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (3) 3.47 % 142,919 ARLP 2014-1 Class M Notes due September 25, 2044 (4) 4.25 % 32,000 ARNS, Inc. Securities sold under agreement to repurchase due September 22, 2015 5.00 % 14,991 Intercompany eliminations Elimination of ARLP 2015-1 Class A Notes due to ARNS, Inc. (34,000 ) Elimination of ARLP 2015-1 Class M Notes due to ARLP (60,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (45,138 ) Elimination of ARLP 2014-2 Class M Notes due to ARLP (234,010 ) Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) $ 538,916 December 31, 2014 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (2) 3.85 % $ 269,820 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (3) 3.47 % 150,000 ARLP 2014-1 Class M Notes due September 25, 2044 (4) 4.25 % 32,000 ARNS, Inc. Securities sold under agreement to repurchase due March 27, 2015 5.00 % 14,991 Intercompany eliminations 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 ) Elimination of ARLP 2014-1 Class M Notes due to ARLP (32,000 ) $ 339,082 _____________ (1) The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019. (2) The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018. (3) The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018. (4) The expected redemption date for the Class M Notes is September 25, 2018. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Litigation, claims and assessments Set forth below are 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 and the May 7, 2015 filing of our quarterly report on Form 10-Q for the three months ended March 31, 2015: The Police Retirement System of Saint Louis v. Erbey, et al. On June 30, 2015, The Police Retirement System of Saint Louis and the defendants entered into a Stipulation and Agreement of Compromise, Settlement and Release (the “Settlement Stipulation”) for the settlement of this derivative action (the “Settlement”), and the parties filed the Settlement Stipulation with the Circuit Court for Baltimore City, Maryland (the “Court") on the same day. By Order dated August 3, 2015, the Court preliminarily approved the Settlement, scheduled a hearing on November 9, 2015 to consider final approval of the Settlement, and authorized us to provide notice of the proposed Settlement to stockholders. If the Settlement is finally approved by the Court and, ultimately, no shareholders successfully object to the Settlement, it will resolve and release all claims in the action that were, or could have been, brought by or on behalf of our company challenging the Original AMA among us, Altisource Residential L.P. and AAMC, or the negotiation of, the terms and provisions of, or the approval of the New AMA. In addition, pursuant to the Settlement Stipulation, the parties agreed that the defendants will pay the attorneys’ fees and expenses of plaintiff’s counsel, in an amount not to exceed $6.0 million . We have been informed by our insurers that the Settlement will be a covered claim under our insurance policy. Martin v. Altisource Residential Corporation, et al. In May 2015, two of our purported shareholders filed competing motions with the court to be appointed lead plaintiff and for selection of lead counsel in the action. Subsequently, opposition and reply briefs were filed by the purported shareholders with respect to these motions. The court has not made any decisions with respect to the lead plaintiff motions. Sokolowski v. Erbey, et al . On July 16, 2015, we filed a motion to dismiss all claims against us in the action, based upon, among other arguments, lack of personal jurisdiction and failure to state a claim. Co-defendant AAMC has filed a similar motion to dismiss the complaint as to all claims asserted against it. Briefing on the motions to dismiss the complaint is ongoing. Hulstrom v. William C. Erbey, et al. On April 23, 2015, a shareholder derivative action was filed in the Superior Court of the Virgin Islands, Division of St. Croix by a purported shareholder under the caption Kirk Hulstrom v . W illiam Erbey et al. SX-15-CV-158. The action names as defendants William C. Erbey, each of the current and former members of our Board of Directors, certain officers of the Company, AAMC and Ocwen. In the complaint, plaintiff asserts claims against the individual defendants for breach of fiduciary duty, abuse of control and gross mismanagement in connection with the asset management agreement between AAMC and us. As to AAMC and Ocwen, plaintiff alleges that these two companies aided and abetted the purported breaches of fiduciary duty and have been unjustly enriched by the asset management agreement. The complaint also names RESI as a nominal defendant. 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. Moncavage v. Faris, et al . In March, 2015, a shareholder derivative action was filed in the Circuit Court for the Fifteenth Judicial Circuit in and for Palm Beach County, Florida by a purported shareholder of Ocwen under the caption Moncavage v. Ronald Faris, et al., Case No. 2015-CA-03244 (MB-AD) . The action named certain officers and directors of Ocwen as defendants and alleged, among other things, various breaches of fiduciary duties by these individual defendants. The action also named Altisource, Home Loan Servicing Solutions and us as alleged aiders and abettors of the purported breaches of fiduciary duties. The allegations of wrongdoing contained in the Moncavage action are similar to the allegations in the Sokolowski action updated above. On July 13, 2015, the plaintiff and we jointly filed a stipulation of an extension of time to respond to the pending motions to stay the action that had been filed by Ocwen and the individual defendants. We believe the claims against us in the matter are 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. In connection with the Police Retirement System case described above, management had previously established a litigation accrual in the amount of $1.5 million . Given the notice received by us from our insurers that the Police Retirement System case is a covered claim, we have reversed the $1.5 million litigation accrual. Management does not believe that we have incurred an estimable, probable or material loss by reason of any of the above new or updated actions. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 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 (the "New AMA") with AAMC. The New 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: • Base Management Fee . 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; • Incentive Management Fee . AAMC is entitled to a quarterly incentive management fee equal to 20% of the amount by which our return on invested capital (based on AFFO as defined in the New AMA) 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 • Conversion Fee . 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 New 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 New 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 New 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 New AMA, and (c) Residential in connection with certain change of control events. Under the amended fee structure of the New AMA, the fees payable to AAMC reduced from $15.5 million in the second quarter of 2014 to $5.2 million in the second quarter of 2015. The $5.2 million fees payable to AAMC in the second quarter of 2015 consists of a $4.8 million Base Management Fee and a $0.4 million Conversion Fee. No Incentive Management Fee was payable to AAMC for the second quarter of 2015 because return on invested capital (as defined in the New AMA) was below the required hurdle rate. The amount by which return on invested capital was below the required hurdle rate in the second quarter of 2015 is a deficit which is carried forward for up to seven future quarters or until the deficit is reduced by our future performance above the hurdle rate. In future quarters, return on invested capital must exceed the required hurdle rate for the current quarter plus any carried forward cumulative deficit from the prior seven quarters before any Incentive Management Fee is payable to AAMC. Summary of Related Party Transaction Expenses Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen, Chairman of Altisource, and Chairman of AAMC. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, Residential and AAMC and is no longer a member of the Board of Directors for any of these companies. Accordingly, at that point, Ocwen and Altisource are no longer considered related parties of Residential and AAMC as defined by FASB Accounting Standards Codification (“ASC”) Topic 850, Related Party Disclosures . Transactions under our agreements with Ocwen and Altisource for the current year through January 16, 2015 were not material to our consolidated results of operations. Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands): Three months ended June 30, 2015 Six months ended June 30, 2015 Counter-party Consolidated Statements of Operations location 2015 Expense reimbursements $ — $ 750 AAMC Related party general and administrative expenses Conversion fee 399 399 AAMC Related party general and administrative expenses Base management fee 4,752 4,752 AAMC Related party general and administrative expenses Management incentive fee — 14,900 AAMC Related party general and administrative expenses Interest expense 161 321 NewSource Interest expense Professional fee sharing for negotiation of AMA — 2,000 AAMC Other income Three months ended June 30, 2014 Six months ended June 30, 2014 Counter-party Consolidated Statements of Operations location 2014 Residential property operating expenses $ 3,150 $ 4,200 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 14,942 25,432 Ocwen Mortgage loan servicing costs Due diligence and unsuccessful deal costs 1,655 1,766 Altisource Related party general and administrative expenses Expense reimbursements 1,789 3,258 AAMC Related party general and administrative expenses Management incentive fee 13,715 24,626 AAMC Related party general and administrative expenses On September 30, 2014, pursuant to a master repurchase agreement, our TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource for a purchase price of $15.0 million . The master repurchase agreement initially required the TRS to repurchase the ARLP 2014-1 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 September 22, 2015. |
Share-based payments
Share-based payments | 6 Months Ended |
Jun. 30, 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 thousand based on the market value of our common stock at the time of the annual stockholders meeting. This restricted stock vests and is issued after a one -year service period subject to each director attending at least 75% of the Board and committee meetings. No dividends are paid on the shares until the award is issued. During the six months ended June 30, 2015 and 2014 , we granted 9,924 and 8,245 shares of stock, respectively, pursuant to our 2013 Director Equity Plan with weighted average grant date fair value per share of $18.25 and $27.28 , respectively. We recorded $36 thousand and $93 thousand of compensation expense related to these grants for the three and six months ended June 30, 2015 , respectively, and recorded $57 thousand and $113 thousand of compensation expense for the three and six months ended June 30, 2014 , respectively. As of both June 30, 2015 and 2014 , we had $0.2 million of unrecognized share-based compensation cost remaining with respect to the director grants to be recognized over a weighted average remaining estimated term of 0.9 years . |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 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. On June 18, 2015, our Board of Directors declared a quarterly cash dividend of $0.55 per share of common stock, which was paid on July 15, 2015 to all stockholders of record as of the close of business on June 30, 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 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 June 30, 2015 which resulted in our recording additional deferred tax assets and a corresponding valuation allowance. As of June 30, 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 six months ended June 30, 2015 . As a REIT, we may also be subject to federal taxes if we engage in certain types of transactions. As of June 30, 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 six months ended June 30, 2015 and 2014 . We recorded nominal state and local tax expense on income and property for the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2015 Three months ended June 30, 2014 Six months ended June 30, 2015 Six months ended June 30, 2014 Numerator Net income $ 13,092 $ 67,782 $ 25,516 $ 109,695 Denominator Weighted average common stock outstanding – basic 57,208,273 57,138,695 57,204,602 55,297,630 Stock options using the treasury method 195,420 257,110 198,066 447,936 Restricted stock 4,152 6,148 4,585 9,119 Weighted average common stock outstanding – diluted 57,407,845 57,401,953 57,407,253 55,754,685 Earnings per basic share $ 0.23 $ 1.19 $ 0.45 $ 1.98 Earnings per diluted share $ 0.23 $ 1.18 $ 0.44 $ 1.97 |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 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. While we focus on acquiring our rental properties through the acquisition of distressed mortgage loans, we have also always considered purchasing rental properties through other avenues, including, without limitation, though the purchase of portfolios of single-family rental properties, REO properties, residential mortgage-backed securities, clean-up calls and other distressed assets. 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. |
Mortgage loans (Tables)
Mortgage loans (Tables) | 6 Months Ended |
Jun. 30, 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): Six months ended June 30, 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 (3,285 ) (7,064 ) Accretion (469 ) 469 Balance at the end of the period $ 3,886 $ 5,977 |
Fair value of financial instr19
Fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2015 Recurring basis (assets) Mortgage loans $ — $ — $ 1,716,489 Nonrecurring basis (assets) Real estate assets held for sale $ — $ — $ 153,868 Transfer of real estate owned to mortgage loans $ — $ — $ 2,865 Transfer of mortgage loans to real estate owned $ — $ — $ 271,547 Not recognized on consolidated balance sheets at fair value (assets) Mortgage loans held for sale $ — $ — $ 5,977 Not recognized on consolidated balance sheets at fair value (liabilities) Repurchase agreements at fair value $ — $ 810,236 $ — Other secured borrowings $ — $ 536,491 $ — December 31, 2014 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 June 30, 2015 Three months ended June 30, 2014 Six months ended June 30, 2015 Six months ended June 30, 2014 Mortgage loans Beginning balance $ 1,853,495 $ 1,766,142 $ 1,959,044 $ 1,207,163 Investment in mortgage loans — 300,503 — 913,011 Net unrealized gain on mortgage loans 42,209 105,042 103,343 170,172 Net realized gain on mortgage loans 19,272 10,819 34,654 20,140 Mortgage loan dispositions and payments (82,070 ) (44,314 ) (147,238 ) (83,772 ) Real estate tax advances to borrowers 4,264 4,716 11,391 12,722 Reclassification of realized gains on real estate sold from unrealized gains 13,175 — 23,977 — Transfer of real estate owned to mortgage loans 1,509 5,563 2,865 5,563 Transfer of mortgage loans to real estate owned (135,365 ) (124,443 ) (271,547 ) (220,971 ) Ending balance at June 30 $ 1,716,489 $ 2,024,028 $ 1,716,489 $ 2,024,028 Net unrealized gain on mortgage loans held at the end of the period $ 29,784 $ 70,623 $ 80,852 $ 108,820 |
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 June 30, 2015 and December 31, 2014 ($ in thousands): Number of loans Carrying value Unpaid principal balance Market value of underlying properties (1) June 30, 2015 Current 727 $ 117,544 $ 165,532 $ 169,272 30 102 16,148 22,309 24,784 60 59 7,128 10,398 11,972 90 1,930 316,877 493,893 477,131 Foreclosure 6,316 1,258,792 1,767,873 1,654,676 Mortgage loans 9,134 $ 1,716,489 $ 2,460,005 $ 2,337,835 December 31, 2014 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 _____________ (1) Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed. The following table sets forth the carrying value of our remaining re-performing mortgage loans from the re-performing loan portfolio we bought in June 2014, which are held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of June 30, 2015 and December 31, 2014 ($ in thousands): Number of loans Carrying value Unpaid principal balance Market value of underlying properties (1) June 30, 2015 Current 13 $ 1,908 $ 2,531 $ 3,760 30 6 1,045 1,440 1,909 60 5 466 1,254 1,253 90 17 2,457 3,126 3,847 Foreclosure 3 101 422 348 Mortgage loans held for sale 44 $ 5,977 $ 8,773 $ 11,117 December 31, 2014 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 | The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our mortgage loans as of June 30, 2015 and December 31, 2014 : Input June 30, 2015 December 31, 2014 Equity discount rate 15.0% 15.0% Debt to asset ratio 65.0% 65.0% Cost of funds 3.5% over 1 month LIBOR 3.5% over 1 month LIBOR Annual change in home pricing index 0% to 7.5% -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 - $5,300,000 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of repurchase agreements | The following table sets forth data with respect to our repurchase agreements and the Nomura loan agreement as of June 30, 2015 and December 31, 2014 ($ in thousands): Maximum borrowing capacity Book value of collateral Amount outstanding June 30, 2015 CS repurchase agreement due April 18, 2016 $ 275,000 $ 367,114 $ 202,855 Wells repurchase agreement due March 23, 2016 471,303 949,984 471,303 DB repurchase agreement due March 11, 2016 91,750 208,958 91,750 Nomura loan agreement due April 8, 2016 200,000 69,831 44,328 $ 1,038,053 $ 1,595,887 $ 810,236 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 June 30, 2015 and December 31, 2014 ($ in thousands): Interest Rate Amount outstanding June 30, 2015 ARLP Securitization Trust, Series 2015-1 ARLP 2015-1 Class A Notes due May 25, 2055 (1) 4.01 % $ 205,000 ARLP 2015-1 Class M Notes due May 25, 2044 — % 60,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (2) 3.87 % 255,144 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (3) 3.47 % 142,919 ARLP 2014-1 Class M Notes due September 25, 2044 (4) 4.25 % 32,000 ARNS, Inc. Securities sold under agreement to repurchase due September 22, 2015 5.00 % 14,991 Intercompany eliminations Elimination of ARLP 2015-1 Class A Notes due to ARNS, Inc. (34,000 ) Elimination of ARLP 2015-1 Class M Notes due to ARLP (60,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (45,138 ) Elimination of ARLP 2014-2 Class M Notes due to ARLP (234,010 ) Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) $ 538,916 December 31, 2014 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (2) 3.85 % $ 269,820 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (3) 3.47 % 150,000 ARLP 2014-1 Class M Notes due September 25, 2044 (4) 4.25 % 32,000 ARNS, Inc. Securities sold under agreement to repurchase due March 27, 2015 5.00 % 14,991 Intercompany eliminations 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 ) Elimination of ARLP 2014-1 Class M Notes due to ARLP (32,000 ) $ 339,082 _____________ (1) The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019. (2) The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018. (3) The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018. (4) The expected redemption date for the Class M Notes is September 25, 2018. |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 Six months ended June 30, 2015 Counter-party Consolidated Statements of Operations location 2015 Expense reimbursements $ — $ 750 AAMC Related party general and administrative expenses Conversion fee 399 399 AAMC Related party general and administrative expenses Base management fee 4,752 4,752 AAMC Related party general and administrative expenses Management incentive fee — 14,900 AAMC Related party general and administrative expenses Interest expense 161 321 NewSource Interest expense Professional fee sharing for negotiation of AMA — 2,000 AAMC Other income Three months ended June 30, 2014 Six months ended June 30, 2014 Counter-party Consolidated Statements of Operations location 2014 Residential property operating expenses $ 3,150 $ 4,200 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 14,942 25,432 Ocwen Mortgage loan servicing costs Due diligence and unsuccessful deal costs 1,655 1,766 Altisource Related party general and administrative expenses Expense reimbursements 1,789 3,258 AAMC Related party general and administrative expenses Management incentive fee 13,715 24,626 AAMC Related party general and administrative expenses |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 Three months ended June 30, 2014 Six months ended June 30, 2015 Six months ended June 30, 2014 Numerator Net income $ 13,092 $ 67,782 $ 25,516 $ 109,695 Denominator Weighted average common stock outstanding – basic 57,208,273 57,138,695 57,204,602 55,297,630 Stock options using the treasury method 195,420 257,110 198,066 447,936 Restricted stock 4,152 6,148 4,585 9,119 Weighted average common stock outstanding – diluted 57,407,845 57,401,953 57,407,253 55,754,685 Earnings per basic share $ 0.23 $ 1.19 $ 0.45 $ 1.98 Earnings per diluted share $ 0.23 $ 1.18 $ 0.44 $ 1.97 |
Organization and basis of pre23
Organization and basis of presentation (Details) | Dec. 28, 2014 | Sep. 30, 2014USD ($) | Dec. 21, 2012USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($)offering | Jun. 29, 2015USD ($) | Apr. 20, 2015USD ($) | Apr. 10, 2015USD ($) | Feb. 09, 2015USD ($) | Nov. 25, 2014USD ($) | Sep. 25, 2014USD ($) | Sep. 23, 2013USD ($) | Mar. 22, 2013USD ($) |
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Proceeds from contributed capital | $ 100,000,000 | |||||||||||||||
Number of public offerings | offering | 3 | |||||||||||||||
Issuance of common stock | $ 134,000 | $ 487,142,000 | $ 1,100,000,000 | |||||||||||||
Repurchase and loan and security agreements | 810,236,000 | $ 1,015,000,000 | $ 1,015,000,000 | 810,236,000 | ||||||||||||
Other secured borrowings | 538,916,000 | 339,082,000 | 339,082,000 | 538,916,000 | ||||||||||||
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 2015-1 | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Book value of the underlying securitized assets | 275,700,000 | 275,700,000 | ||||||||||||||
Loans | ARLP 2014-2 | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Book value of the underlying securitized assets | 329,000,000 | 329,000,000 | ||||||||||||||
Loans | ARLP 2014-1 | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Book value of the underlying securitized assets | 208,500,000 | 208,500,000 | ||||||||||||||
Asset-backed securities Class A notes | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Other secured borrowings | $ 142,919,000 | $ 150,000,000 | $ 150,000,000 | $ 142,919,000 | $ 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 | $ 255,144,000 | $ 269,820,000 | $ 269,820,000 | $ 255,144,000 | $ 50,700,000 | $ 270,800,000 | ||||||||||
Secured debt issued to affiliates | $ 45,138,000 | $ 95,729,000 | $ 95,729,000 | $ 45,138,000 | $ 95,800,000 | |||||||||||
Interest rate on debt | 3.87% | 3.85% | 3.85% | 3.87% | 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 agreements to repurchase | $ 14,991,000 | $ 14,991,000 | $ 14,991,000 | $ 14,991,000 | ||||||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||
Asset-backed Securities Class A Notes 2015-1 | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Other secured borrowings | $ 205,000,000 | $ 205,000,000 | $ 205,000,000 | |||||||||||||
Secured debt issued to affiliates | $ 34,000,000 | $ 34,000,000 | $ 34,000,000 | |||||||||||||
Interest rate on debt | 4.01% | 4.01% | 4.01% | |||||||||||||
Asset-backed Securities Class M Notes 2015-1 | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Other secured borrowings | $ 60,000,000 | $ 60,000,000 | $ 60,000,000 | |||||||||||||
Secured debt issued to affiliates | $ 60,000,000 | $ 60,000,000 | ||||||||||||||
Interest rate on debt | 0.00% | 0.00% | ||||||||||||||
Secured debt | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,038,053,000 | $ 1,225,000,000 | $ 1,225,000,000 | $ 1,038,053,000 | ||||||||||||
Repurchase and loan and security agreements | 810,236,000 | 1,015,000,000 | 1,015,000,000 | 810,236,000 | ||||||||||||
Secured debt | CS repurchase agreement | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 275,000,000 | 225,000,000 | 225,000,000 | 275,000,000 | $ 275,000,000 | $ 100,000,000 | ||||||||||
Repurchase and loan and security agreements | 202,855,000 | $ 222,044,000 | 222,044,000 | 202,855,000 | ||||||||||||
Number of days master repurchase agreement may be extended | 1 year | |||||||||||||||
Secured debt | DB repurchase agreement | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 91,750,000 | $ 250,000,000 | 250,000,000 | 91,750,000 | ||||||||||||
Repurchase and loan and security agreements | 91,750,000 | 223,447,000 | 223,447,000 | 91,750,000 | ||||||||||||
Secured debt | WF repurchase agreement | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 471,300,000 | $ 750,000,000 | 750,000,000 | 471,300,000 | $ 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 | |||||||||||||||
Secured debt | Nomura loan and security agreement | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 200,000,000 | 200,000,000 | ||||||||||||||
Repurchase and loan and security agreements | 44,328,000 | 44,328,000 | ||||||||||||||
Secured debt | Nomura loan and security agreement | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 |
Mortgage loans Narrative (Detai
Mortgage loans Narrative (Details) | Sep. 30, 2014USD ($) | Jun. 27, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Oct. 31, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | Dec. 31, 2014USD ($)loan |
Mortgage loans at fair value [Line Items] | |||||||||
Number of real estate properties directly acquired | loan | 190,000 | 0 | 190 | ||||||
Payments to acquire non-performing loans | $ 940,500,000 | ||||||||
Purchase price of loans held for investment acquired | $ 144,600,000 | ||||||||
Amount accreted into interest income | $ 200,000 | $ 500,000 | |||||||
Mortgage loans held for sale | $ 5,977,000 | 5,977,000 | 5,977,000 | $ 12,535,000 | |||||
Transfer of mortgage loans to real estate owned | 271,547,000 | 220,971,000 | |||||||
Purchase price of securities sold under agreements to repurchase | $ 15,000,000 | ||||||||
Net proceeds from loans sold | $ 16,200,000 | ||||||||
Net realized gain on mortgage loans | 19,272,000 | $ 10,819,000 | 34,654,000 | 20,140,000 | |||||
Residential mortgage | Loans receivable | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Due diligence costs | $ 300,000 | $ 2,400,000 | $ 400,000 | $ 2,900,000 | |||||
Number of real estate properties acquired through foreclosure | loan | 687 | 894 | 1,411 | 1,530 | |||||
Transfer of mortgage loans to real estate owned | $ 133,900,000 | $ 120,800,000 | $ 268,700,000 | $ 217,400,000 | |||||
Unrealized gain (loss) from conversion of mortgage loans to real estate | 14,700,000 | 28,500,000 | 33,100,000 | 52,100,000 | |||||
Number of mortgage loans liquidated | loan | 189 | 934 | |||||||
Net realized gain on mortgage loans | $ 19,300,000 | $ 10,800,000 | $ 34,700,000 | $ 20,100,000 | |||||
Proceeds from sale of loans | $ 34,600,000 | $ 164,000,000 | |||||||
Residential mortgage | Loans receivable | Nonperforming financing receivable | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Number of loans acquired | loan | 5,797 | ||||||||
Unpaid principal balance of loans and real estate acquired | $ 1,600,000,000 | ||||||||
Market value of underlying properties collateralizing loans acquired | $ 1,400,000,000 | ||||||||
Number of mortgage loans liquidated | loan | 137 | 164 | 270 | 135 | 420 | 251 | |||
Residential mortgage | Loans receivable | Performing financing receivable | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Number of loans acquired | loan | 879 | ||||||||
Market value of underlying properties collateralizing re-performing loans acquired | $ 271,100,000 | ||||||||
Unpaid principal balance | $ 8,773,000 | $ 8,773,000 | $ 8,773,000 | 18,398,000 | |||||
Number of mortgage loans liquidated | loan | 52 | 770 | |||||||
Residential mortgage | Loans receivable | Residential portfolio segment | Nonperforming financing receivable | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Unpaid principal balance | $ 2,460,005,000 | 2,460,005,000 | 2,460,005,000 | 2,935,961,000 | |||||
Foreclosure, carrying value of loans in process | $ 1,258,792,000 | $ 1,258,792,000 | $ 1,258,792,000 | $ 1,466,798,000 | |||||
Foreclosure, number of loan in process | loan | 6,316 | 6,316 | 6,316 | 7,841 | |||||
Secured debt | Asset-backed Securities Class A Notes Trust 2 | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Repayment of loans collateralizing secured debt | $ 2,000,000 | ||||||||
Secured debt | Wells repurchase agreement | |||||||||
Mortgage loans at fair value [Line Items] | |||||||||
Purchase price of securities sold under agreements to repurchase | $ 16,400,000 |
Mortgage loans Certain Loans Ac
Mortgage loans Certain Loans Acquired Not Accounted For As Debt Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accretable Yield | ||
Accretable yield, beginning balance | $ 7,640 | |
Additions to accretable yield | 0 | |
Payments and other reductions to accretable yield, net | (3,285) | |
Accretion | (469) | $ 0 |
Accretable yield, ending balance | 3,886 | |
Carrying Amount of Loans | ||
Carrying amount of loans, beginning balance | 12,535 | |
Additions to carrying amount of loans | 37 | |
Payments and other reductions, net | (7,064) | |
Accretion | (469) | |
Carrying amount of loans, ending balance | $ 5,977 |
Real estate assets, net - Compo
Real estate assets, net - Components of real estate assets (Details) $ in Thousands | Jun. 28, 2015USD ($)loan | Jun. 30, 2015USD ($)property | Jun. 30, 2014USD ($)loanproperty | Jun. 30, 2015USD ($)loanproperty | Jun. 30, 2014USD ($)loanproperty | Dec. 31, 2014USD ($)property |
Real Estate [Abstract] | ||||||
Number of real estate properties directly acquired | loan | 190,000 | 0 | 190 | |||
Payments to Acquire Real Estate | $ | $ 27,569 | $ 0 | $ 27,569 | |||
Number of real estate properties to be directly acquired | loan | 1,325 | |||||
Purchase price for acquisition of real estate | $ | $ 112,600 | |||||
Number of real estate properties held for sale | 819 | 192 | 819 | 192 | 611 | |
Real estate assets held for sale fair value | $ | $ 153,900 | $ 153,900 | $ 96,000 | |||
Real estate assets held for sale | $ | 134,027 | $ 27,600 | 134,027 | $ 27,600 | 92,230 | |
Impairment recognized on REO properties | $ | $ 7,800 | $ 7,800 | $ 4,900 | |||
Number of real estate properties held for use | 3,977 | 1,766 | 3,977 | 1,766 | 3,349 | |
Number of real estate properties rented | 777 | 102 | 777 | 102 | 336 | |
Number of real estate properties listed for rent | 96 | 40 | 96 | 40 | 197 | |
Number of real estate properties in various stages of lease preparation | 111 | 140 | 111 | 140 | 254 | |
Number of real estate properties under evaluation for rental portfolio | 2,993 | 1,484 | 2,993 | 1,484 | 2,562 | |
Number of real estate properties sold | 321 | 22 | 575 | 24 | ||
Net realized gain on real estate | $ | $ 12,404 | $ 1,234 | $ 23,012 | $ 1,234 |
Fair value of financial instr27
Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Real estate assets held for sale | $ 153,900 | $ 96,000 |
Fair value, inputs, level 1 | ||
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 | ||
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 | 810,236 | 1,015,000 |
Other secured borrowings | 536,491 | 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 | 5,977 | 12,535 |
Repurchase agreements at fair value | 0 | 0 |
Other secured borrowings | 0 | 0 |
Fair value measurements, recurring | Fair value, inputs, level 1 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Fair value measurements, recurring | Fair value, inputs, level 2 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Fair value measurements, recurring | Fair value, inputs, level 3 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Mortgage loans | 1,716,489 | 1,959,044 |
Fair value measurements, nonrecurring | Fair value, inputs, level 1 | ||
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 | Fair value, inputs, level 2 | ||
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 | Fair value, inputs, level 3 | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Real estate assets held for sale | 153,868 | 96,041 |
Transfer of real estate owned to mortgage loans | 2,865 | 8,400 |
Transfer of mortgage loans to real estate owned | $ 271,547 | $ 595,668 |
Fair value of financial instr28
Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfer of real estate owned to mortgage loans | $ 2,865 | $ 3,594 | |||
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 | $ 29,784 | $ 70,623 | 80,852 | 108,820 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 1,853,495 | 1,766,142 | 1,959,044 | 1,207,163 | $ 1,207,163 |
Investment in mortgage loans | 0 | 300,503 | 0 | 913,011 | |
Net unrealized gain on mortgage loans | 42,209 | 105,042 | 103,343 | 170,172 | |
Net realized gain on mortgage loans | 19,272 | 10,819 | 34,654 | 20,140 | |
Mortgage loan dispositions and payments | (82,070) | (44,314) | (147,238) | (83,772) | |
Real estate tax advances to borrowers | 4,264 | 4,716 | 11,391 | 12,722 | |
Reclassification of realized gains on real estate sold from unrealized gains | 13,175 | 0 | 23,977 | 0 | |
Transfer of real estate owned to mortgage loans | 1,509 | 5,563 | 2,865 | 5,563 | |
Transfer of mortgage loans to real estate owned | (135,365) | (124,443) | (271,547) | (220,971) | |
Ending balance | $ 1,716,489 | $ 2,024,028 | $ 1,716,489 | $ 2,024,028 | $ 1,959,044 |
Fair value of financial instr29
Fair value of financial instruments - Fair value by delinquency (Details) - Loans receivable - Residential mortgage $ in Thousands | Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan |
Performing financing receivable | ||
Unpaid principal balance | ||
Mortgage loans | $ 8,773 | $ 18,398 |
Residential portfolio segment | Nonperforming financing receivable | ||
Number of loans | ||
Current | loan | 727 | 670 |
Foreclosure | loan | 6,316 | 7,841 |
Mortgage loans | loan | 9,134 | 10,963 |
Carrying value | ||
Current | $ 117,544 | $ 107,467 |
Foreclosure | 1,258,792 | 1,466,798 |
Mortgage loans | 1,716,489 | 1,959,044 |
Unpaid principal balance | ||
Current | 165,532 | 159,731 |
Foreclosure | 1,767,873 | 2,172,047 |
Mortgage loans | 2,460,005 | 2,935,961 |
Market value of underlying properties(1) | ||
Current | 169,272 | 160,654 |
Foreclosure | 1,654,676 | 1,951,606 |
Mortgage loans | $ 2,337,835 | $ 2,693,525 |
Residential portfolio segment | Nonperforming financing receivable | 30 to 59 Days Past Due | ||
Number of loans | ||
Past Due | loan | 102 | 109 |
Carrying value | ||
Past Due | $ 16,148 | $ 15,424 |
Unpaid principal balance | ||
Past Due | 22,309 | 22,629 |
Market value of underlying properties(1) | ||
Past Due | $ 24,784 | $ 24,046 |
Residential portfolio segment | Nonperforming financing receivable | 60 to 89 Days Past Due | ||
Number of loans | ||
Past Due | loan | 59 | 57 |
Carrying value | ||
Past Due | $ 7,128 | $ 7,921 |
Unpaid principal balance | ||
Past Due | 10,398 | 11,624 |
Market value of underlying properties(1) | ||
Past Due | $ 11,972 | $ 12,510 |
Residential portfolio segment | Nonperforming financing receivable | Equal to Greater than 90 Days Past Due | ||
Number of loans | ||
Past Due | loan | 1,930 | 2,286 |
Carrying value | ||
Past Due | $ 316,877 | $ 361,434 |
Unpaid principal balance | ||
Past Due | 493,893 | 569,930 |
Market value of underlying properties(1) | ||
Past Due | $ 477,131 | $ 544,709 |
Residential portfolio segment | Performing financing receivable | ||
Number of loans | ||
Current | loan | 13 | 68 |
Mortgage loans | loan | 44 | 102 |
Carrying value | ||
Current | $ 1,908 | $ 8,317 |
Mortgage loans | 5,977 | 12,535 |
Unpaid principal balance | ||
Current | 2,531 | 11,938 |
Market value of underlying properties(1) | ||
Current | 3,760 | 15,154 |
Mortgage loans | $ 11,117 | $ 22,452 |
Residential portfolio segment | Performing financing receivable | 30 to 59 Days Past Due | ||
Number of loans | ||
Past Due | loan | 6 | 6 |
Carrying value | ||
Past Due | $ 1,045 | $ 1,118 |
Unpaid principal balance | ||
Past Due | 1,440 | 1,667 |
Market value of underlying properties(1) | ||
Past Due | $ 1,909 | $ 2,004 |
Residential portfolio segment | Performing financing receivable | 60 to 89 Days Past Due | ||
Number of loans | ||
Past Due | loan | 5 | 4 |
Carrying value | ||
Past Due | $ 466 | $ 359 |
Unpaid principal balance | ||
Past Due | 1,254 | 644 |
Market value of underlying properties(1) | ||
Past Due | $ 1,253 | $ 670 |
Residential portfolio segment | Performing financing receivable | Equal to Greater than 90 Days Past Due | ||
Number of loans | ||
Past Due | loan | 17 | 24 |
Foreclosure | loan | 3 | |
Carrying value | ||
Past Due | $ 2,457 | $ 2,741 |
Foreclosure | 101 | |
Unpaid principal balance | ||
Past Due | 3,126 | 4,149 |
Foreclosure | 422 | |
Market value of underlying properties(1) | ||
Past Due | 3,847 | $ 4,624 |
Foreclosure | $ 348 |
Fair value of financial instr30
Fair value of financial instruments - Fair value inputs, quantitative information (Details) - Loans receivable - Residential mortgage - Fair value, inputs, level 3 - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 — modification | 0.00% | 0.00% |
Loan resolution probabilities — rental | 0.00% | 0.00% |
Loan resolution probabilities — 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 | 7.50% | 7.60% |
Loan resolution probabilities — modification | 44.70% | 44.70% |
Loan resolution probabilities — rental | 100.00% | 100.00% |
Loan resolution probabilities — 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 Agreeme
Borrowings - Repurchase Agreements (Details) - USD ($) | Jun. 30, 2015 | Apr. 20, 2015 | Dec. 31, 2014 | Mar. 22, 2013 |
Short-term Debt [Line Items] | ||||
Repurchase and loan and security agreements | $ 810,236,000 | $ 1,015,000,000 | ||
Asset-backed securities Class M notes | Secured debt | ARLP 2014-1 | ||||
Short-term Debt [Line Items] | ||||
Book value of collateral | 17,000,000 | |||
Asset-backed securities Class A notes | Secured debt | ARLP 2014-2 | ||||
Short-term Debt [Line Items] | ||||
Book value of collateral | $ 45,100,000 | |||
Secured debt | ||||
Short-term Debt [Line Items] | ||||
Interest rate | 3.30% | |||
Maximum borrowing capacity | $ 1,038,053,000 | 1,225,000,000 | ||
Book value of collateral | 1,595,887,000 | 1,819,559,000 | ||
Repurchase and loan and security agreements | 810,236,000 | 1,015,000,000 | ||
Secured debt | CS repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 275,000,000 | $ 275,000,000 | 225,000,000 | $ 100,000,000 |
Book value of collateral | 367,114,000 | 332,618,000 | ||
Repurchase and loan and security agreements | 202,855,000 | 222,044,000 | ||
Secured debt | CS repurchase agreement | Secured debt, Class M notes | ||||
Short-term Debt [Line Items] | ||||
Repurchase and loan and security agreements | 10,600,000 | |||
Secured debt | CS repurchase agreement | Secured debt, Class A notes Trust 2 | ||||
Short-term Debt [Line Items] | ||||
Repurchase and loan and security agreements | 29,400,000 | |||
Secured debt | Wells repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 471,303,000 | 750,000,000 | ||
Book value of collateral | 949,984,000 | 1,036,409,000 | ||
Repurchase and loan and security agreements | 471,303,000 | 569,509,000 | ||
Secured debt | DB repurchase agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 91,750,000 | 250,000,000 | ||
Book value of collateral | 208,958,000 | 450,532,000 | ||
Repurchase and loan and security agreements | 91,750,000 | $ 223,447,000 | ||
Secured debt | Nomura loan and security agreement | ||||
Short-term Debt [Line Items] | ||||
Maximum borrowing capacity | 200,000,000 | |||
Book value of collateral | 69,831,000 | |||
Repurchase and loan and security agreements | $ 44,328,000 |
Borrowings - Other Secured Debt
Borrowings - Other Secured Debt (Details) - USD ($) | Dec. 28, 2014 | Jun. 30, 2015 | Jun. 29, 2015 | Feb. 09, 2015 | Dec. 31, 2014 | Nov. 25, 2014 | Sep. 30, 2014 | Sep. 25, 2014 |
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 538,916,000 | $ 339,082,000 | ||||||
Securities sold under agreements to repurchase | 14,991,000 | 14,991,000 | $ 15,000,000 | |||||
Number of days master repurchase agreement may be extended | 89 days | |||||||
Asset-backed Securities Class A Notes 2015-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 205,000,000 | $ 205,000,000 | ||||||
Interest rate on debt | 4.01% | 4.01% | ||||||
Secured debt issued to affiliates | $ (34,000,000) | $ (34,000,000) | ||||||
Asset-backed Securities Class M Notes 2015-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 60,000,000 | $ 60,000,000 | ||||||
Interest rate on debt | 0.00% | |||||||
Secured debt issued to affiliates | $ (60,000,000) | |||||||
Asset-backed securities Class A notes Trust 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 255,144,000 | $ 50,700,000 | $ 269,820,000 | $ 270,800,000 | ||||
Interest rate on debt | 3.87% | 3.85% | 3.85% | |||||
Secured debt issued to affiliates | $ (45,138,000) | $ (95,729,000) | $ (95,800,000) | |||||
Asset-backed securities Class M notes Trust 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 234,010,000 | $ 234,000,000 | ||||||
Interest rate on debt | 0.00% | 0.00% | ||||||
Secured debt issued to affiliates | $ (234,010,000) | $ (234,010,000) | ||||||
Asset-backed securities Class A notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured borrowings | $ 142,919,000 | $ 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 | |||||
Interest rate on debt | 4.25% | 4.25% | 4.25% | |||||
Secured debt issued to affiliates | $ (32,000,000) | $ (32,000,000) | ||||||
Repurchase agreement NewSource | ||||||||
Debt Instrument [Line Items] | ||||||||
Securities sold under agreements to repurchase | $ 14,991,000 | $ 14,991,000 | ||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | |||||
ARLP 2015-1 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of the underlying securitized assets | $ 275,700,000 | |||||||
ARLP 2014-2 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of the underlying securitized assets | 329,000,000 | |||||||
ARLP 2014-1 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of the underlying securitized assets | $ 208,500,000 |
Commitments and contingencies C
Commitments and contingencies Commitments and contingencies (Details) - Jun. 30, 2015 - USD ($) | Total |
Commitments and Contingencies Disclosure [Abstract] | |
Agreed upon attoneys fees | $ 6,000,000 |
Loss contingency accrual | $ 1,500,000 |
Related party transactions (Det
Related party transactions (Details) | Apr. 01, 2015 | Mar. 31, 2015property | Dec. 28, 2014 | Sep. 30, 2014USD ($) | Dec. 21, 2012property | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Related party transaction [Line Items] | ||||||||||
Related party general and administrative | $ 5,151,000 | $ 17,467,000 | $ 20,801,000 | $ 30,099,000 | ||||||
US Treasury rate | 10 years | |||||||||
Number of days master repurchase agreement may be extended | 89 days | |||||||||
Securities sold under agreements to repurchase | $ 15,000,000 | $ 14,991,000 | $ 14,991,000 | $ 14,991,000 | ||||||
Purchase price of securities sold under agreements to repurchase | $ 15,000,000 | |||||||||
Repurchase agreement NewSource | ||||||||||
Related party transaction [Line Items] | ||||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | 5.00% | 5.00% | 5.00% | ||||||
Securities sold under agreements to repurchase | $ 14,991,000 | $ 14,991,000 | $ 14,991,000 | |||||||
Affiliated entity | AAMC | ||||||||||
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% | |||||||||
Related party general and administrative | 15,500,000 | |||||||||
Affiliated entity | AAMC | Management incentive fee | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party general and administrative | 5,200,000 | |||||||||
Affiliated entity | AAMC | Minimum | ||||||||||
Related party transaction [Line Items] | ||||||||||
Incentive management fee, return on invested capital | 7.00% | |||||||||
Affiliated entity | AAMC | Maximum | ||||||||||
Related party transaction [Line Items] | ||||||||||
Incentive management fee, return on invested capital | 8.25% | |||||||||
Affiliated entity | Asset management fee, threshold one | AAMC | ||||||||||
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 | property | 2,500 | |||||||||
Affiliated entity | Asset management fee, threshold two | AAMC | ||||||||||
Related party transaction [Line Items] | ||||||||||
Incentive management fee, percent of average invested capital | 1.75% | |||||||||
Incentive management fee, number of rental properties, floor | property | 2,500 | |||||||||
Base management fee, number of rental properties floor | property | 2,500 | |||||||||
Incentive management fee, number of rental properties cap | property | 4,499 | |||||||||
Incentive management fee, percent of invested capital in excess of threshold | 22.50% | |||||||||
Affiliated entity | Asset management fee, threshold three | AAMC | ||||||||||
Related party transaction [Line Items] | ||||||||||
Incentive management fee, percent of average invested capital | 2.00% | |||||||||
Incentive management fee, number of rental properties, floor | property | 4,500 | |||||||||
Incentive management fee, percent of invested capital in excess of threshold | 25.00% | |||||||||
Affiliated entity | Professional fee sharing for negotiation of AMA | AAMC | Other income | ||||||||||
Related party transaction [Line Items] | ||||||||||
Professional fee sharing for negotiation of AMA | 0 | 2,000,000 | ||||||||
Affiliated entity | Residential property operating expenses | Altisource and Ocwen | Operating expense | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 3,150,000 | 4,200,000 | ||||||||
Affiliated entity | Mortgage loan servicing costs | Ocwen | Operating expense | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 14,942,000 | 25,432,000 | ||||||||
Affiliated entity | Due diligence and unsuccessful deal costs | Altisource Portfolio Solutions | Related party general and administrative expense | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 1,655,000 | 1,766,000 | ||||||||
Affiliated entity | Expense reimbursements | AAMC | Related party general and administrative expense | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 0 | 1,789,000 | 750,000 | 3,258,000 | ||||||
Affiliated entity | Conversion fee | AAMC | Management incentive fee | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 399,000 | 399,000 | ||||||||
Affiliated entity | Base management fee | AAMC | Management incentive fee | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 4,752,000 | 4,752,000 | ||||||||
Affiliated entity | Management incentive fee | AAMC | Management incentive fee | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | 0 | $ 13,715,000 | 14,900,000 | $ 24,626,000 | ||||||
Affiliated entity | Interest expense | NewSource | Interest expense | ||||||||||
Related party transaction [Line Items] | ||||||||||
Related party expenses | $ 161,000 | $ 321,000 | ||||||||
Affiliated entity | Asset Management Agreement | AAMC | ||||||||||
Related party transaction [Line Items] | ||||||||||
Automatic renewal term | 5 years | |||||||||
Contract term | 15 years |
Share-based payments (Details)
Share-based payments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [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 | $ 36,000 | $ 57,000 | $ 93,000 | $ 113,000 | |
Unrecognized stock based compensation | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | |
Recognition period | 11 months | 11 months | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock granted during period (in shares) | 9,924 | 8,245 | |||
Weighted average grant date fair value per share (usd per share) | $ 18.25 | $ 27.28 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 18, 2015 | Mar. 31, 2015 | Mar. 30, 2015 | Mar. 11, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||||||||
Minimum distribution of REIT taxable income, percent | 90.00% | ||||||||
Dividends declared per common share | $ 0.55 | $ 0.55 | $ 0.08 | $ 0.08 | $ 0.55 | $ 0.45 | $ 1.18 | $ 0.93 | $ 2.03 |
Taxable net income (loss) attributable to parent | $ 115,800 | ||||||||
Net capital gains | 54,400 | ||||||||
Minimum distribution of REIT taxable income, amount | 55,300 | ||||||||
Dividends on common stock | $ 4,600 | $ 4,500 | $ 36,038 | $ 53,118 | $ 116,000 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 13,092 | $ 67,782 | $ 25,516 | $ 109,695 |
Weighted average common stock outstanding – basic (in shares) | 57,208,273 | 57,138,695 | 57,204,602 | 55,297,630 |
Stock options using the treasury method (in shares) | 195,420 | 257,110 | 198,066 | 447,936 |
Restricted stock (in shares) | 4,152 | 6,148 | 4,585 | 9,119 |
Weighted average common stock outstanding – diluted (in shares) | 57,407,845 | 57,401,953 | 57,407,253 | 55,754,685 |
Earnings per basic share (usd per share) | $ 0.23 | $ 1.19 | $ 0.45 | $ 1.98 |
Earnings per diluted share (usd per share) | $ 0.23 | $ 1.18 | $ 0.44 | $ 1.97 |