Document and entity information
Document and entity information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document Information [Abstract] | |||
Entity registrant name | Altisource Asset Management Corporation | ||
Entity central index key | 1,555,074 | ||
Current fiscal year end date | --12-31 | ||
Entity filer category | Large Accelerated Filer | ||
Document type | 10-K | ||
Document period end date | Dec. 31, 2015 | ||
Document fiscal year focus | 2,015 | ||
Document fiscal period focus | FY | ||
Amendment flag | false | ||
Entity common stock, shares outstanding | 1,970,572 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity public float | $ 167.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate held for use: | ||
Land (from consolidated VIE) | $ 56,346 | $ 14,424 |
Rental residential properties (net of accumulated depreciation of $7,127 and $1,062, respectively - from consolidated VIE) | 224,040 | 60,908 |
Real estate owned (from consolidated VIE) | 455,483 | 457,045 |
Total real estate held for use, net | 735,869 | 532,377 |
Real estate assets held for sale (from consolidated VIE) | 250,557 | 92,230 |
Mortgage loans at fair value (from consolidated VIE) | 960,534 | 1,959,044 |
Mortgage loans held for sale (from consolidated VIE) | 317,336 | 12,535 |
Cash and cash equivalents (including from consolidated VIE $116,702 and $66,166, respectively) | 184,544 | 116,782 |
Restricted cash (from consolidated VIE) | 20,566 | 13,282 |
Accounts receivable, net (including from consolidated VIE $45,903 and $10,313, respectively) | 46,026 | 11,068 |
Related party receivables (from consolidated VIE) | 0 | 17,491 |
Deferred leasing and financing costs, net (from consolidated VIE) | 7,886 | 4,251 |
Prepaid expenses and other assets (including from consolidated VIE $415 and $373, respectively) | 2,458 | 1,638 |
Total assets | 2,525,776 | 2,760,698 |
Liabilities: | ||
Repurchase agreements (from consolidated VIE) | 767,513 | 1,015,000 |
Other secured borrowings (from consolidated VIE) | 505,630 | 324,082 |
Accounts payable and accrued liabilities (including from consolidated VIE $32,448 and $11,678, respectively) | 38,722 | 16,726 |
Related party payables (including from consolidated VIE $0 and $4,879, respectively) | 0 | 6,169 |
Total liabilities | $ 1,311,865 | $ 1,361,977 |
Commitments and contingencies (Note 7) | ||
Redeemable preferred stock: | ||
Preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of December 31, 2015 and 2014; redemption value $250,000 | $ 249,133 | $ 248,927 |
Equity: | ||
Common stock, $.01 par value, 5,000,000 authorized shares; 2,556,828 and 2,048,223 shares issued and outstanding, respectively, as of December 31, 2015 and 2,452,101 and 2,188,136 shares issued and outstanding, respectively as of December 31, 2014 | 26 | 25 |
Additional paid-in capital | 23,419 | 14,152 |
Retained earnings (accumulated deficit) | 50,678 | 54,174 |
Treasury stock, at cost, 508,605 shares as of December 31, 2015 and 263,965 as of December 31, 2014 | (254,984) | (245,468) |
Total stockholders' equity | (180,861) | (177,117) |
Noncontrolling interest in consolidated affiliate | 1,145,639 | 1,326,911 |
Total equity | 964,778 | 1,149,794 |
Total liabilities and equity | $ 2,525,776 | $ 2,760,698 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Rental residential properties, accumulated depreciation | $ 7,127,000 | $ 1,062,000 |
Cash and cash equivalents | 184,544,000 | 116,782,000 |
Accounts receivable | 46,026,000 | 11,068,000 |
Related party receivables | 0 | 17,491,000 |
Prepaid expenses and other assets | 2,458,000 | 1,638,000 |
Liabilities: | ||
Accounts payable and accrued liabilities | 38,722,000 | 16,726,000 |
Related party payables | $ 0 | $ 6,169,000 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 250,000 | 250,000 |
Preferred stock, shares outstanding | 250,000 | 250,000 |
Preferred stock, redemption amount | $ 250,000,000 | $ 250,000,000 |
Equity: | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,556,828 | 2,452,101 |
Common stock, shares outstanding | 2,048,223 | 2,188,136 |
Treasury stock, shares | 508,605 | 263,965 |
Residential | ||
Assets: | ||
Cash and cash equivalents | $ 116,702,000 | $ 66,166,000 |
Accounts receivable | 45,903,000 | 10,313,000 |
Prepaid expenses and other assets | 415,000 | 373,000 |
Liabilities: | ||
Accounts payable and accrued liabilities | 32,448,000 | 11,678,000 |
Related party payables | $ 0 | $ 4,879,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Rental revenues | $ 13,233 | $ 1,564 | $ 36 |
Net unrealized gain on mortgage loans | 88,829 | 350,822 | 61,092 |
Net realized gain on mortgage loans | 58,061 | 55,766 | 10,482 |
Net realized gain on mortgage loans held for sale | 36,432 | 2,771 | 0 |
Net realized gain on real estate | 50,932 | 9,482 | 0 |
Interest income | 612 | 2,893 | 687 |
Total revenues | 248,099 | 423,298 | 72,297 |
Expenses: | |||
Residential property operating expenses | 66,266 | 26,018 | 767 |
Real estate depreciation and amortization | 7,472 | 1,067 | 25 |
Acquisition fees and costs | 2,292 | 1,545 | 1,408 |
Business Combination, Acquisition Related Costs, Related Party | 0 | 1,039 | 115 |
Real estate and mortgage loan selling costs and impairment | 72,230 | 21,788 | 184 |
Mortgage loan servicing costs | 62,346 | 68,181 | 10,418 |
Interest expense | 53,131 | 35,647 | 4,568 |
General and administrative | 32,896 | 18,346 | 16,857 |
Related party general and administrative | 0 | 4,446 | 3,652 |
Total expenses | 296,633 | 178,077 | 37,994 |
Other income | 0 | 5,407 | 0 |
(Loss) income before income taxes | (48,534) | 250,628 | 34,303 |
Income tax expense | 354 | 2,096 | 0 |
Net (loss) income | (48,888) | 248,532 | 34,303 |
Net (income) loss attributable to noncontrolling interest in consolidated affiliate | 45,598 | (188,853) | (39,596) |
Net (loss) income attributable to common stockholders | $ (3,290) | $ 59,679 | $ (5,293) |
Earnings (loss) per share of common stock – basic: | |||
Earnings (loss) per basic share (usd per share) | $ (1.59) | $ 26.31 | $ (2.26) |
Weighted average common stock outstanding – basic (in shares) | 2,202,815 | 2,261,968 | 2,346,993 |
Earnings (loss) per share of common stock – diluted: | |||
Earnings (loss) per diluted share (usd per share) | $ (1.59) | $ 21.07 | $ (2.26) |
Weighted average common stock outstanding – diluted (in shares) | 2,202,815 | 2,832,188 | 2,346,993 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings (accumulated deficit) | Treasury stock | Noncontrolling interest in consolidated affiliates |
Beginning balance, Shares at Dec. 31, 2012 | 2,343,213 | |||||
Beginning balance at Dec. 31, 2012 | $ 104,881 | $ 23 | $ 4,993 | $ (46) | $ 99,911 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, including option exercises, shares | 11,561 | |||||
Issuance of common stock, including option exercises | 21 | $ 1 | 20 | |||
Capital contribution from noncontrolling interest | 659,007 | 659,007 | ||||
Share-based compensation | 7,842 | 7,842 | 0 | |||
Distribution from noncontrolling interest | (13,087) | (13,087) | ||||
Net income (loss) | 34,303 | (5,293) | 39,596 | |||
Ending balance, Shares at Dec. 31, 2013 | 2,354,774 | |||||
Ending balance at Dec. 31, 2013 | 792,967 | $ 24 | 12,855 | (5,339) | 785,427 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, including option exercises, shares | 97,327 | |||||
Issuance of common stock, including option exercises | 47 | $ 1 | 46 | |||
Capital contribution from noncontrolling interest | 468,429 | 468,429 | ||||
Share-based compensation | 1,478 | 1,251 | 227 | |||
Treasury shares repurchased | (245,468) | $ (245,468) | ||||
Distribution from noncontrolling interest | (116,025) | (116,025) | ||||
Amortization of preferred stock issuance costs | (166) | (166) | ||||
Net income (loss) | $ 248,532 | 59,679 | 188,853 | |||
Ending balance, Shares at Dec. 31, 2014 | 2,188,136 | 2,452,101 | ||||
Ending balance at Dec. 31, 2014 | $ 1,149,794 | $ 25 | 14,152 | 54,174 | (245,468) | 1,326,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, including option exercises, shares | 104,727 | |||||
Issuance of common stock, including option exercises | 73 | $ 1 | 72 | |||
Capital contribution from noncontrolling interest | 111 | 111 | ||||
Share-based compensation | 7,049 | 6,865 | 184 | |||
Treasury shares repurchased | (9,516) | (9,516) | ||||
Distribution from noncontrolling interest | (103,649) | (103,649) | ||||
Repurchase of noncontrolling interest in subsidiaries by affiliate | (24,983) | (24,983) | ||||
Change in subsidiary shares from noncontrolling interest | (5,007) | 2,330 | (7,337) | |||
Amortization of preferred stock issuance costs | (206) | (206) | ||||
Net income (loss) | $ (48,888) | (3,290) | (45,598) | |||
Ending balance, Shares at Dec. 31, 2015 | 2,048,223 | 2,556,828 | ||||
Ending balance at Dec. 31, 2015 | $ 964,778 | $ 26 | $ 23,419 | $ 50,678 | $ (254,984) | $ 1,145,639 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ (48,888) | $ 248,532 | $ 34,303 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Net unrealized gain on mortgage loans | (88,829) | (350,822) | (61,092) |
Net realized gain on mortgage loans | (58,061) | (55,766) | (10,482) |
Net realized gain on mortgage loans held for sale | (36,432) | (2,771) | 0 |
Net realized gain on sale of real estate | (50,932) | (9,482) | 0 |
Real estate depreciation and amortization | 7,472 | 1,067 | 25 |
Real estate and mortgage loan selling costs and impairment | 72,230 | 21,788 | 0 |
Accretion of interest on re-performing mortgage loans | (551) | (2,610) | 0 |
Share-based compensation | 6,865 | 1,478 | 7,842 |
Amortization of deferred financing costs | 7,348 | 3,425 | 1,102 |
Loss on retirement of leasehold improvements | 212 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (21,919) | (4,227) | 0 |
Related party receivables | 17,491 | 8,199 | (515) |
Prepaid expenses and other assets | (1,023) | (1,106) | (124) |
Deferred leasing costs | (88) | 0 | 0 |
Accounts payable and accrued liabilities | 18,037 | 3,650 | 4,761 |
Related party payables | (6,169) | 3,286 | 2,355 |
Net cash used in operating activities | (183,237) | (135,359) | (21,825) |
Investing activities: | |||
Investment in mortgage loans | 0 | (1,265,890) | (1,212,620) |
Investment in real estate | (119,977) | (34,104) | (6,198) |
Investment in renovations | (27,410) | (12,721) | (465) |
Investment in affiliate | (5,007) | 0 | 0 |
Real estate tax advances | (29,862) | (33,719) | (6,472) |
Mortgage loan dispositions | 468,111 | 334,366 | 38,967 |
Mortgage loan payments | 26,206 | 20,900 | 4,901 |
Disposition of real estate | 154,880 | 23,652 | 685 |
Acquisition-related deposits | 0 | 0 | (1,150) |
Change in restricted cash | (7,284) | (7,404) | (5,878) |
Net cash provided by (used in) investing activities | 459,657 | (974,920) | (1,188,230) |
Financing activities: | |||
Proceeds from issuance of preferred stock | 0 | 250,000 | 0 |
Cost of issuance of preferred stock | 0 | (1,237) | 0 |
Issuance of common stock, including stock option exercises | 833 | 12,389 | 935 |
Repurchase of common stock | (9,516) | (245,468) | 0 |
Payment of tax withholdings on exercise of stock options | (760) | (12,342) | (914) |
Cost of issuance of common stock | 0 | 0 | 0 |
Capital contribution from noncontrolling interest | 111 | 468,429 | 659,007 |
Distribution to noncontrolling interest | (98,123) | (116,025) | (13,087) |
Repurchase of noncontrolling interest in subsidiaries by affiliate | (24,983) | 0 | 0 |
Proceeds from issuance of other secured debt | 220,931 | 324,426 | 0 |
Repayments of secured notes | (39,832) | (344) | 0 |
Proceeds from repurchase agreement | 347,077 | 1,094,042 | 689,490 |
Repayments of repurchase agreement | (594,564) | (681,424) | (87,108) |
Payment of deferred financing costs | (9,832) | (5,385) | (3,282) |
Related party payables | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (208,658) | 1,087,061 | 1,245,041 |
Net increase (decrease) in cash and cash equivalents | 67,762 | (23,218) | 34,986 |
Cash and cash equivalents as of beginning of the period | 116,782 | 140,000 | 105,014 |
Cash and cash equivalents as of end of the period | 184,544 | 116,782 | 140,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 46,559 | 31,053 | 2,445 |
Income taxes paid | 265 | 2,778 | 0 |
Transfer of mortgage loans to real estate owned, net | 470,221 | 587,268 | 31,014 |
Transfer of mortgage loans at fair value to mortgage loans held for sale | 535,836 | 0 | 0 |
Change in accrued capital expenditures | (1,388) | 4,151 | 0 |
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances, net | (592) | 10,024 | 9,812 |
Changes in receivables from real estate owned dispositions | 15,252 | 4,640 | 0 |
Acquisition-related payable | 0 | 0 | 1,209 |
Unpaid distribution to noncontrolling interest | $ 5,526 | $ 0 | $ 0 |
Organization and basis of prese
Organization and basis of presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | 1. Organization and basis of presentation We were incorporated in the United States Virgin Islands on March 15, 2012 (our “inception”). Subsequent to our separation from Altisource Portfolio Solutions S.A. (“Altisource”) on December 21, 2012, we immediately commenced operations. Our primary business is to provide asset management and certain corporate governance services to institutional investors. In October 2013, we applied for and were granted registration by the SEC as a registered investment adviser under section 203(c) of the Investment Advisers Act of 1940. Our primary client currently is Altisource Residential Corporation (“Residential”), a public real estate investment trust (“REIT”) focused on acquiring and managing quality, affordable single-family rental properties for working class families throughout the United States. Substantially all of our standalone revenue for all periods presented was generated through our asset management agreement with Residential. Residential focuses on acquiring, owning and managing single-family rental properties throughout the United States and conducts substantially all of its activities through its wholly owned subsidiary Altisource Residential, L.P. (“ARLP”) and its subsidiaries. Initially, Residential acquired our rental properties primarily through the acquisition of sub-performing and non-performing mortgage loan portfolios; however, commencing in the second quarter of 2015, it refocused its acquisition strategy to opportunistically acquire portfolios of single-family rental properties, both individually and in pools, as an avenue to more quickly achieve scale in its rental portfolio. The Company and Residential both have long-term service agreements with Altisource, a leading provider of real estate and mortgage portfolio management, asset recovery and customer relationship management services. Residential also has servicing agreements with three separate servicers. The Company’s and Residential’s ability to execute their business strategies are reliant, in large part, on the performance of these service providers. Altisource and one of the three servicers, Ocwen Financial Corporation (“Ocwen”), were related parties through January 16, 2015 (see Note 9). We initially provided services to Residential pursuant to a 15 -year asset management agreement beginning December 21, 2012 (the “Original AMA”). On March 31, 2015, we entered into a new asset management agreement with Residential (the “New AMA”) under which we will continue to be the exclusive asset manager for Residential for an initial term of 15 years from April 1, 2015, with two potential five-year extensions. The Original AMA had a different incentive fee structure that gave us a share of Residential’s cash flow available for distribution to its stockholders as well as reimbursement for certain overhead and operating expenses. The New AMA provides for a new fee structure in which we are entitled to a base management fee, an incentive management fee and a conversion fee for loans and real estate owned (“REO”) properties that become rental properties during each quarter. Accordingly, our operating results continue to be highly dependent on Residential's operating results. See Note 9 for additional details of the New AMA. Since Residential commenced operations, it has completed three public equity offerings with aggregate net proceeds of approximately $1.1 billion . We ceased to be a development stage enterprise in the second quarter of 2013. Basis of presentation and use of estimates The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). 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. Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. The consolidated financial statements include wholly owned subsidiaries and those subsidiaries in which we own a majority voting interest with the ability to control operations of the subsidiaries and where no substantive participating rights or substantive kick out rights have been granted to the noncontrolling interests. Additionally, we would consolidate partnerships, joint ventures and limited liability companies when we control the major operating and financial policies of the entity through majority ownership in our capacity as general partner or managing member or by contract. In addition, we consolidate those entities deemed to be variable interest entities (“VIEs”) in which we are determined to be the primary beneficiary. Our financial statements include the accounts of our wholly owned subsidiaries as well as one VIE of which we are the primary beneficiary as well as three VIEs of which Residential is the primary beneficiary. We eliminate intercompany accounts and transactions in consolidation. We have concluded that Residential is a VIE because Residential’s equity holders lack the ability through voting rights to make decisions about Residential’s activities that have a significant effect on the success of Residential. We have also concluded that we are the primary beneficiary of Residential because under the asset management agreement we have the power to direct the activities of Residential that most significantly impact Residential’s economic performance including establishing Residential’s investment and business strategy. As a result, we consolidate Residential in our consolidated financial statements. As discussed within Recently issued accounting standards, upon the adoption of ASU 2015-02, we will deconsolidated Residential from our Consolidated Financial Statements effective January 1, 2016. For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to noncontrolling interests. While the results of operations of consolidated entities are included in net income (loss) in our consolidated financial statements, net income (loss) attributable to common stockholders does not include the portion attributable to noncontrolling interests. Additionally, noncontrolling interest in consolidated affiliates is recorded in our consolidated balance sheets and our consolidated statements of equity within the equity section but separate from our equity. Historically, amounts recognized as noncontrolling interest in our consolidated financial statements were equivalent to Residential's net income and equity because we had no ownership interest in Residential. In the third quarter of 2015, we acquired 324,465 , or approximately 0.58% , of Residential's outstanding shares. Subsequent to our acquisition of these shares, the noncontrolling interest in consolidated affiliate represents the remaining 99.42% ownership interest held by non-affiliated shareholders of Residential's common stock. Residential also has three securitization trusts, ARLP Securitization Trust, Series 2014-1 (“ARLP 2014-1”), ARLP Securitization Trust, Series 2014-2 (“ARLP 2014-2”) and ARLP Securitization Trust, Series 2015-1 (“ARLP 2015-1”), that are special purpose entities (“SPEs”) and are classified as VIEs. Because Residential is the primary beneficiary, these entities are included in the consolidated financial statements of Residential. See Note 7 for more information regarding these securitization trusts. Additionally, we provide management services to NewSource Reinsurance Company Ltd. (“NewSource”), a title insurance and reinsurance company in Bermuda. In October 2013, we invested $2.0 million in 100% of the common stock of NewSource, and in September 2015, we contributed an additional $5.0 million to NewSource. On December 2, 2013, NewSource became registered as a licensed reinsurer with the Bermuda Monetary Authority (“BMA”). Because we own 100% of voting common stock of NewSource, we consolidate NewSource in our consolidated financial statements. Preferred stock During the first quarter of 2014, we issued $250.0 million of convertible preferred stock. All of the outstanding shares of preferred stock are redeemable by us in March 2020, the sixth anniversary of the date of issuance, and every five years thereafter. On these same redemption dates, each holder of preferred stock may cause us to redeem all the shares of preferred stock held by such holder at a redemption price equal to $1,000 per share. Accordingly, we classify these shares as mezzanine equity, outside of permanent stockholders' equity. The holders of shares of Series A Preferred Stock will not be entitled to receive dividends with respect to the Series A Preferred Stock. The shares of Series A Preferred Stock are convertible into shares of our common stock at a conversion price of $1,250 per share, subject to certain anti-dilution adjustments. Upon a change of control or upon a liquidation, dissolution or winding up of the Company, holders of the Series A Preferred Stock will be entitled to receive an amount in cash per Series A Preferred Stock equal to the greater of: (i) $1,000 plus the aggregate amount of cash dividends paid on the number of shares of Common Stock into which such share of Series A Preferred Stock was convertible on each ex-dividend date for such dividends; and (ii) the number of shares of Common Stock into which the Series A Preferred Stock is then convertible multiplied by the then current market price of the Common Stock. The Series A Preferred Stock confers no voting rights to holders, except with respect to matters that materially and adversely affect the voting powers, rights or preferences of the Series A Preferred Stock or as otherwise required by applicable law. With respect to the distribution of assets upon the liquidation, dissolution or winding up of the Company, the Series A Preferred Stock ranks senior to our common stock and on parity with all other classes of preferred stock that may be issued by us in the future. Recently issued accounting standards In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01 (Subtopic 825-10) - Financial Instruments - Overall. ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the impact of adopting this standard to have a material impact on our consolidated financial statements. In April 2015, the FASB issued 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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. These standards require retrospective application and represent 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 these standards to have a material impact on our consolidated financial statements. 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. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Upon adoption of this amendment on January 1, 2016, we will deconsolidate Residential using the modified retrospective approach, which allows for a cumulative-effect adjustment to equity in the period of adoption. As a result, periods ending prior to the adoption will not be impacted. The adoption will effectively remove those balances disclosed as from consolidated VIE on our consolidated balance sheets and will result in a reduction in consolidated assets and liabilities of $2.4 billion and $1.3 billion , respectively, on January 1, 2016, resulting in a net deficit of $180.9 million . In addition, the impact of the adoption on noncontrolling interests in consolidated affiliate will be a reduction of $1.1 billion on January 1, 2016. Subsequent to adoption, our consolidated revenues will consist primarily of fees received from Residential under the New AMA, and our consolidated expenses will consist primarily of general and administrative expenses, including salaries and employee benefits, professional and legal fees, occupancy expenses and other general and administrative expenses. See Note 9 for further discussion of the New AMA. Such revenues and expenses for the years ended December 31, 2015, 2014 and 2013 are presented below ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Fee revenue from Residential 23,716 74,019 10,291 Expenses 25,357 15,318 15,584 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. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which effectively delayed the adoption date of ASU 2014-09 by one year. ASU 2014-09 is therefore 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 are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Cash equivalents We consider highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain our cash and cash equivalents at banking institutions. Certain account balances exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. Consolidations The consolidated financial statements include wholly owned subsidiaries and would include those subsidiaries in which we own a majority voting interest with the ability to control operations of the subsidiaries and where no substantive participating rights or substantive kick out rights have been granted to the noncontrolling interests. Additionally, we consolidate partnerships, joint ventures and limited liability companies when we control the major operating and financial policies of the entity through majority ownership, in our capacity as general partner or managing member or by contract. Lastly, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. While the results of operations of consolidated entities are included in net income in our consolidated financial statements, net income attributable to common stockholders does not include the portion attributable to noncontrolling interests. Additionally, noncontrolling interest in consolidated affiliate is recorded in our consolidated balance sheets and our consolidated statements of equity within the equity section but separate from our equity. Comprehensive income Because comprehensive income (loss) equals net income (loss), separate statements of comprehensive income (loss) are not presented as part of our consolidated financial statements. Earnings per share Basic earnings per share is computed by dividing net income (loss) less amortization of preferred stock issuance costs by the weighted average common stock outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average common stock outstanding for the period plus the dilutive effect of stock options and restricted stock outstanding using the treasury stock method and if converted method, respectively. Weighted average common stock outstanding - basic excludes the impact of unvested restricted stock since dividends paid on such restricted stock are non-participating. Fees under the asset management agreement In accordance with the asset management agreement, we receive compensation from Residential on a quarterly basis for our efforts in the management of Residential's business. We recognize these fees in the fiscal quarter in which they are earned. Refer to Note 9 for details of the fee structure under the asset management agreement. Our revenue and Residential's corresponding expense related to these fees are eliminated in consolidation. Fair value of financial instruments We designate fair value measurements into three levels based on the lowest level of substantive input used to make the fair value measurement. Those levels are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Income taxes Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to our judgment, we reduce a deferred tax asset by a valuation allowance if it is “more likely than not” that some or the entire deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and we recognize tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. Residential elected REIT status upon the filing of its 2013 income tax return. We believe that Residential has complied with the provisions of the federal income tax code applicable to REITs for each financial year commencing in the year ended December 31, 2013. Accordingly, we believe that Residential will not be subject to federal income tax on the portion of its REIT taxable income that was distributed to its stockholders for such years, nor do we expect Residential to be taxed on future distributions of its REIT taxable income as long as certain asset, income and share ownership tests continue to be met. If Residential fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its REIT taxable income at regular corporate income tax rates. If after electing to be taxed as a REIT, Residential subsequently fails to qualify as a REIT in any taxable year, it generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants relief under certain statutory provisions. Such an event could materially adversely affect Residential’s net income and net cash available for distribution to stockholders. Its taxable REIT subsidiaries would also be subject to federal and state income taxes. Mortgage loans at fair value Upon the acquisition of mortgage loans, Residential records the assets at fair value which is the purchase price it paid for the loans on the acquisition date. Mortgage loans are subsequently accounted for at fair value under the fair value option election with unrealized gains and losses recorded in current period earnings. We have concluded that mortgage loans accounted for at fair value timely reflect the results of Residential’s investment performance. We determine the purchase price for Residential’s mortgage loans at the time of acquisition by using a discounted cash flow valuation model and considering alternate loan resolution probabilities including modification, liquidation or conversion to rental property. Observable inputs to the model include current interest rates, loan amounts, status of payments and property types. Unobservable inputs to the model include discount rates, forecast of future home prices, alternate loan resolution probabilities, resolution timelines and the value of underlying properties. After mortgage loans are acquired, the fair value of each loan is adjusted in each subsequent reporting period as the loan proceeds to a particular resolution (i.e., modification, or conversion to real estate owned). As a loan approaches resolution, the resolution timeline for that loan decreases and costs embedded in the discounted cash flow model for loan servicing, foreclosure costs and property insurance are incurred and removed from future expenses. The shorter resolution timelines and reduced future expenses each increase the fair value of the loan. The increase in the value of the loan is recognized in net unrealized gain on mortgage loans in Residential’s, and therefore, our consolidated statements of operations. Residential also recognizes unrealized gains and losses in the fair value of the loans in each reporting period when its mortgage loans are transferred to real estate owned. The transfer to real estate owned occurs when Residential has obtained title to the property through completion of the foreclosure process. The fair value of these assets at the time of transfer to real estate owned is estimated using broker price opinions (“BPOs”). Our capital markets group determines the fair value of mortgage loans monthly and has developed procedures and controls governing the valuation process relating to these assets. The capital markets group reports to Residential’s Investment Committee, which is a committee of Residential’s Chairman, its Chief Executive Officer and its Chief Financial Officer that oversees and approves the valuations. The capital markets group also monitors the valuation model for performance against actual results which is reported to the Investment Committee and used to continuously improve the model. Mortgage loans held for sale Mortgage loans held for sale are recorded at the lower of cost or fair value. Residential does not originate loans. Residential's mortgage loans held for sale include the remaining re-performing residential mortgage loans that it initially acquired in June 2014 and certain non-performing loans identified by management for sale. Residential's re-performing loans were initially acquired for investment and had evidence of deteriorated credit quality at the time of acquisition, and the fair value option was not elected for these loans. Therefore, Residential's re-performing loans are accounted for in accordance with the provisions of ASC Topic 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. These re-performing loans were determined to have common risk characteristics and have been accounted for as a single loan pool. Under ASC Topic 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. Residential determines 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. Residential properties Purchases of real estate properties are evaluated by Residential to determine whether they meet the definition of an asset acquisition or of a business combination under U.S. GAAP. For asset acquisitions, Residential capitalizes pre-acquisition costs to the extent such costs would have been capitalized had Residential owned the asset when the cost was incurred and capitalizes closing and other direct acquisition costs. Residential then allocates the total cost of the property, including the acquisition costs, between land, building and any identified intangible assets and liabilities (including in-place leases and above and below-market leases). For acquisitions that qualify as business combinations, Residential expenses the acquisition costs in the period in which the costs were incurred and allocates the cost of the property among land, building and any identified intangible assets and liabilities. Lease intangibles are recorded at the estimated fair value, which is the estimated costs that would have been incurred to lease the property net of any above or below-market lease concessions, and are amortized on a straight-line basis over the remaining life of the related lease or, in the case of acquisitions of real estate pools, over the weighted average remaining life of the related pool of leases. Upon the acquisition of real estate through the completion of foreclosure, Residential records the assets at fair value as of the acquisition date as a component of real estate owned based on information obtained from a BPO, a full appraisal or the price given in a current contract of sale of the property. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon management's or other third-party estimates, are often calculated based on the characteristics of the asset, the economic environment and other such factors. Based on professional judgment and knowledge of the particular situation, management determines the appropriate fair value to be utilized for such property. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use. BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. Our results could be materially and adversely affected if the judgments used by a broker prove to be incorrect or inaccurate. Residential has established validation procedures to confirm the values it receives from third party vendors are consistent with its observations of market values. These validation procedures include establishing thresholds to identify changes in value that require further analysis. Residential’s current policies require that it updates the fair value estimate of each financed REO property at least every 180 days by obtaining a new BPO, which is subject to the review processes of its third party vendors. We generally perform further analysis for Residential when the value of the property per the new BPO varies from the old BPO by 25% , or $75,000 per property. If a newly obtained BPO varies from the old BPO by this established threshold, we perform additional procedures to ensure the BPO accurately reflects the current fair value of the property. These procedures include engaging additional third party vendors to compare the old BPOs to the new BPOs and to assist us in evaluating the appropriateness of comparable properties and property-specific characteristics used in Residential’s valuation process. As part of this evaluation, Residential’s third party vendors often discuss the differing BPOs with the providing brokers to ensure that proper comparable properties have been identified. These third party vendors also compare the BPOs to past appraisals, if any, of the property to ensure the BPOs are in line with those appraisals. Following the consideration and reconciliation of the BPOs, the third party provider may provide Residential with a new property value reflecting the analysis they performed or confirm the BPO value received by Residential, in which case Residential uses the new property value or the validated BPO, respectively, for its fair value estimate of the property. After an evaluation period, Residential may perform property renovations to those properties that meet its rental investment criteria in order to optimize its rental proceeds. In some instances, Residential may also perform renovations on REO properties that do not meet its rental investment criteria in order to optimize sale proceeds. Such expenditures are part of Residential's initial investment in a property and, therefore, are classified as investing activities in our consolidated statement of cash flows. Subsequently, residential rental properties, including any renovations that improve or extend the life of the asset, are accounted for at cost. REO properties that do not meet Residential's rental investment criteria and that are held for sale are accounted for at the lower of the carrying value or estimated fair value less cost to sell. The cost basis of residential rental properties is depreciated using the straight-line method over an estimated useful life of three years to 27.5 years based on the nature of the components. Interest and other carrying costs incurred during the renovation period are capitalized until the property is ready for its intended use. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Expenditures directly related to successful leasing efforts, such as lease commissions, are included in deferred leasing and financing costs, net and are stated at amortized cost. Such expenditures are part of Residential's operations and, therefore, are classified as operating activities in our consolidated statement of cash flows. Capitalized leasing costs are amortized on a straight-line basis over the lease term of the respective leases, which generally are from one to two years. Residential properties are classified either as held for use or held for sale. Residential properties are classified as real estate assets held for sale when sale of the assets has been formally approved and is expected to occur in the next twelve months. Residential records residential properties held for sale at the lower of the carrying amount or estimated fair value less costs to sell. The impairment loss, if any, is the amount by which the carrying amount exceeds the estimated fair value less costs to sell. Real estate impairment With respect to Residential's rental properties classified as held for use, we perform an impairment analysis using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. These cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. If the carrying amount of a held for use asset exceeds the sum of its undiscounted future operating and residual cash flows, an impairment loss is recorded for the difference between estimated fair value of the asset and the carrying amount. Residential generally estimates the fair value of assets held for use by using BPOs. In some instances, appraisal information may be available and is used in addition to BPOs. Residential rental revenues Minimum contractual rents from leases are recognized on a straight-line basis over the terms of the leases in residential rental revenues. Therefore, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer takes control of the leased premises. Deferred rents receivable, net represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. Termination fee income is recognized when the customer has vacated the rental property, the amount of the fee is determinable and collectability is reasonably assured. Rents receivable and deferred rents receivable are reduced by an allowance for amounts that become uncollectible. We regularly evaluate the adequacy of our allowance for doubtful accounts. The evaluation takes into consideration the aging of accounts receivable and our analysis of customer personal profile and review past due account balances. Rents receivable and deferred rents receivable are written-off when Residential has deemed that the amounts are uncollectible. Restricted cash Restricted cash represents cash deposits that are legally restricted or held by third parties on Residential’s or our behalf, as applicable, such as escrows and reserves for debt service established pursuant to certain of our repurchase agreements. Treasury Stock We account for repurchased common stock under the cost method and include such treasury stock as a component of total shareholders’ equity. We have repurchased shares of our common stock (i) under our Board approval to repurchase up to $300.0 million in shares of our common stock and (ii) upon our withholding of shares of our common stock to satisfy tax withholding obligations in connection with the vesting of our restricted stock. |
Assets acquisitions and disposi
Assets acquisitions and dispositions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Assets acquisitions and dispositions | 3. Asset acquisitions and dispositions Real estate assets Acquisitions, including those accounted for as business combinations On August 18, 2015, Residential completed the acquisition of 1,314 single-family residential properties in the Atlanta, Georgia market, of which 94% were leased as of the acquisition date, from an unrelated third party for an aggregate purchase price of approximately $111.4 million . Residential recognized acquisition fees and costs related to this portfolio acquisition of $0.6 million . The value of in-place leases was estimated at $1.3 million based upon the costs Residential would have incurred to lease the properties and is being amortized over the weighted-average remaining life of the leases of 7 months as of the acquisition date. During the third quarter of 2015, Residential initiated a program to purchase single-family residential properties on a one-by-one basis, sourcing listed properties from the Multiple Listing Service and alternative listing sources. Residential acquired 98 properties under this program during 2015. The aggregate purchase price attributable to these acquired properties was $120.0 million for the year ended December 31, 2015 . During the year ended December 31, 2014 , Residential acquired 237 single-family residential properties. The aggregate purchase price attributable to these acquired properties was $34.1 million . Dispositions During the year ended December 31, 2015 , Residential disposed of 1,321 residential properties and recorded $50.9 million of net realized gains on real estate. Residential disposed of 221 residential properties during the year ended December 31, 2014 and recorded $9.5 million of net realized gains on real estate. Mortgage loan assets Acquisitions Residential did not acquire any mortgage loans during the year ended December 31, 2015. During the year ended December 31, 2014, Residential acquired an aggregate of 8,205 mortgage loans, consisting of the following: Acquisitions of non-performing residential mortgage loans During the year ended December 31, 2014, Residential acquired an aggregate of 7,326 residential mortgage loans, substantially all of which were non-performing, having an aggregate UPB of approximately $1.9 billion and an aggregate market value of underlying properties of $1.8 billion . The aggregate purchase price for these acquisitions was $1.2 billion . Acquisition of re-performing residential mortgage loans On June 27, 2014, Residential 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 . Throughout this report, all unpaid principal balance and market value amounts for the portfolios 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. Resolutions and dispositions During the year ended December 31, 2015, Residential resolved 590 mortgage loans, primarily through short sales, refinancing and foreclosure sales. In addition, Residential sold 137 loans that had transitioned to re-performing status from prior non-performing loan acquisitions to a third party purchaser during June 2015. In connection with these disposals, Residential recorded $58.1 million of net realized gains on mortgage loans. During December 2015, Residential sold a total of 306 of our mortgage loans held for sale to third party purchasers. In connection with these sales, Residential recorded $14.0 million of net realized gains on mortgage loans held for sale. During November 2015, Residential sold 466 of our mortgage loans held for sale to a third party purchaser. In connection with this sale, Residential recorded $21.9 million of net realized gains on mortgage loans held for sale. During June 2015, Residential sold 52 loans from the re-performing mortgage loans purchased in June 2014 to a third party purchaser. In connection with this sale, Residential recorded $0.5 million of net realized gains on mortgage loans held for sale. During the year ended December 31, 2014 , Residential resolved 735 mortgage loans, primarily through short sales, refinancing and foreclosure sales. In connection with these resolutions, Residential recorded $55.8 million of net realized gains on mortgage loans. During October 2014, Residential sold 934 re-performing loans to an unrelated third party and recognized $2.8 million of net realized gains on mortgage loans held for sale. The sale included 770 loans from the re-performing mortgage loans held for sale purchased in June 2014 and 164 loans that had transitioned to re-performing status from prior non-performing loan acquisitions that had a clean pay history of at least six months . Transfers of mortgage loans to real estate owned During the years ended December 31, 2015 and 2014 , Residential transferred an aggregate of 2,443 and 3,682 mortgage loans, respectively, to REO at an aggregate fair value based on BPOs of $470.2 million and $587.3 million , respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, Residential recorded $91.3 million and $124.9 million (net of $6.6 million of gains reclassified on REO sold), respectively, in net unrealized gains on mortgage loans. Due diligence costs During the years ended December 31, 2015, 2014 and 2013, Residential recognized $0.4 million , $3.1 million and $3.5 million , respectively, for due diligence costs related to these and other transactions in general and administrative expense during the year ended December 31, 2015 and in both general and administrative expense and related party general and administrative expense during the years ended December 31, 2014 and 2013. |
Real estate assets, net
Real estate assets, net | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Real estate assets, net | 4. Real estate assets, net Real estate held for use As of December 31, 2015 , Residential had 4,933 single-family residential properties held for use. Of these properties, 2,118 had been leased, 264 were listed and ready for rent and 350 were in varying stages of renovation and unit turn status. With respect to the remaining 2,201 REO properties, we will make a final determination whether each property meets Residential's rental profile after (a) applicable state redemption periods have expired, (b) the foreclosure sale has been ratified, (c) Residential has 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 that require Residential to await the expiration of a redemption period before a foreclosure can be finalized. Residential includes these redemption periods in its portfolio pricing, which generally reduces the price it pays for the mortgage loans. Once the redemption period expires, Residential immediately proceeds to record the new deed, take possession of the property, activate utilities, and start the inspection process in order to make a final determination on whether to rent or liquidate the property. If an REO property meets Residential's rental investment criteria, we determine the extent of renovations that are needed to generate an optimal rent and maintain consistency of renovation specifications for future branding. If it is determined that the REO property will not meet Residential's rental investment criteria, the property is listed for sale, in some instances after renovations are made to optimize the sale proceeds. As of December 31, 2014 , Residential had 3,349 REO properties held for use. Of these properties, 336 had been leased, 197 were listed and ready 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 Residential's rental profile. We generally rent our REO properties under non-cancelable leases with a term of one to two years. Future minimum rental revenues under leases existing for the 2,118 properties that were leased as of December 31, 2015 are as follows ($ in thousands): 2016 $ 16,661 2017 1,311 2018 159 2019 167 2020 and thereafter — $ 18,298 Residential recognized $36.5 million , $7.9 million and $0 of REO valuation impairment for the years ended December 31, 2015, 2014 and 2013, respectively. Real estate held for sale As of December 31, 2015 , Residential classified 1,583 properties having an aggregate carrying value of $250.6 million as real estate held for sale as they do not meet its residential rental property investment criteria. As of December 31, 2014 , Residential had 611 REO properties having an aggregate carrying value of $92.2 million held for sale. |
Mortgage loans
Mortgage loans | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage loans | 5. Mortgage loans The following table sets forth the fair value of Residential's mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of December 31, 2015 and December 31, 2014 ($ in thousands): Number of Loans Carrying Value Unpaid Principal Balance Market Value of Underlying Properties December 31, 2015 Current 730 $ 124,595 $ 165,645 $ 177,348 30 80 12,003 18,142 21,858 60 38 5,688 8,088 8,766 90 984 130,784 216,717 196,963 Foreclosure 3,907 687,464 946,962 917,671 Mortgage loans at fair value 5,739 $ 960,534 $ 1,355,554 $ 1,322,606 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 at fair value 10,963 $ 1,959,044 $ 2,935,961 $ 2,693,525 The following table sets forth the carrying value of Residential's mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of December 31, 2015 and December 31, 2014 ($ in thousands): Number of Loans Carrying Value Unpaid Principal Balance Market Value of Underlying Properties December 31, 2015 Current 58 $ 10,864 $ 13,466 $ 17,776 30 26 7,616 10,013 12,200 60 6 668 775 1,063 90 328 73,164 101,121 103,395 Foreclosure 879 $ 225,024 $ 314,991 $ 330,573 Mortgage loans held for sale 1,297 $ 317,336 $ 440,366 $ 465,007 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 Residential's mortgage loans held for sale include our remaining re-performing residential mortgage loans that it initially acquired in June 2014 and certain non-performing loans identified by management for sale. Residential transferred these mortgage loans to mortgage loans held for sale to take advantage of attractive market pricing and because it does not expect them to be rental candidates. In addition, in December 2015, Residential commenced an auction to sell an additional portfolio of 1,266 non-performing and re-performing mortgage loans with an aggregate UPB of $434.3 million , representing approximately 24% of its loan portfolio by UPB. On January 19, 2016, following the auction process, we agreed in principle to award the sale to an unrelated third party. Re-performing residential mortgage loans For the year ended December 31, 2015 and 2014 , Residential recognized no provision for loan loss and no adjustments to the amount of the accretable yield. For the year ended December 31, 2015 and 2014 , Residential accreted $0.6 million and $2.6 million into interest income with respect to these re-performing loans. As of December 31, 2015 and 2014 , these re-performing loans, having a UPB of $6.0 million and $18.4 million , respectively, and a carrying value of $4.0 million and $12.5 million , respectively, were included in mortgage loans held for sale. The following table presents information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition of June 27, 2014 ($ in thousands): Contractually required principal and interest at the date of acquisition $ 325,000 Non-accretable yield (96,263 ) Expected cash flows to be collected 228,737 Accretable yield (84,728 ) Fair value at the date of acquisition $ 144,009 The following table presents changes in the balance of the accretable yield for the periods indicated: Accretable Yield Year ended December 31, 2015 Year ended December 31, 2014 Balance at the beginning of the period $ 7,640 $ — Acquisitions — 84,728 Loans sold (4,943 ) (74,478 ) Accretion (551 ) (2,610 ) Balance at the end of the period $ 2,146 $ 7,640 |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 6. 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 December 31, 2015 and December 31, 2014 ($ in thousands): Level 1 Level 2 Level 3 Quoted Prices in Active Markets Observable Inputs Other Than Level 1 Prices Unobservable Inputs December 31, 2015 Recurring basis (assets) Mortgage loans at fair value $ — $ — $ 960,534 Nonrecurring basis (assets) Real estate assets held for sale — — 250,557 Not recognized on consolidated balance sheets at fair value (assets) Mortgage loans held for sale — — 317,336 Not recognized on consolidated balance sheets at fair value (liabilities) Repurchase agreements at fair value — 767,513 — Other secured borrowings — 502,268 — December 31, 2014 Recurring basis (assets) Mortgage loans at fair value $ — $ — $ 1,959,044 Nonrecurring basis (assets) Real estate assets held for sale — — 96,041 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 — 321,409 — No assets were transferred from one level to another level during the year ended December 31, 2015 or 2014 . The carrying values of Residential's and our cash and cash equivalents, restricted cash, related party receivables, accounts payable and accrued liabilities, related party payables, preferred stock, and investment in NewSource are equal to or approximate fair value. The fair value of mortgage loans at fair value and non-performing mortgage loans held for sale is estimated using our proprietary pricing model. 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 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 Residential's level 3 assets that are measured at fair value on a recurring basis ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Mortgage loans at fair value Beginning balance $ 1,959,044 $ 1,207,163 Investment in mortgage loans at fair value — 1,122,408 Net unrealized gain on mortgage loans at fair value 177,545 350,822 Net realized gain on mortgage loans at fair value 58,061 55,766 Transfers of mortgage loans at fair value to mortgage loans held for sale (535,836 ) — Mortgage loans at fair value dispositions and payments (257,505 ) (235,743 ) Real estate tax advances to borrowers 29,261 36,842 Reclassification of realized gains on real estate sold from unrealized gains — 9,054 Transfer of real estate owned to mortgage loans at fair value 15,974 8,400 Transfer of mortgage loans at fair value to real estate owned (486,010 ) (595,668 ) Ending balance at December 31 $ 960,534 $ 1,959,044 Net unrealized gain on mortgage loans at fair value held at the end of the period $ 78,453 $ 222,034 The significant unobservable inputs used in the fair value measurement of Residential's 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 Residential's mortgage loans as of December 31, 2015 and December 31, 2014 : Input December 31, 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 0.0% to 10.2% -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 5.6 0.1 - 5.3 Value of underlying properties $3,000 - $4,500,000 $3,000 - $5,300,000 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | 7. Borrowings Repurchase and loan agreements Residential's operating partnership and certain of its Delaware Statutory Trust subsidiaries, as applicable, have entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans and REO properties in its portfolio. Residential has effective control of the assets associated with these agreements and therefore has concluded these are financing arrangements. As of December 31, 2015 , the weighted average annualized interest rate on borrowing under Residential's repurchase and loan agreements was 3.35% , excluding amortization of deferred financing costs. Residential has entered into three separate repurchase agreements and a loan agreement to finance the acquisition and ownership of its residential mortgage loans and REO properties. Below is a description of each agreement: • 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, Residential entered into an amended and restated repurchase agreement with CS that increased its 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. On Residential's behalf, we are in discussions with CS to renew and 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. • Deutsche Bank (“DB”) is the lender on the repurchase agreement dated September 12, 2013 (the “DB repurchase agreement”). The DB repurchase agreement matures on March 11, 2016. Under the DB repurchase agreement, Residential has not been eligible for additional funding under the facility since March 2015, and its aggregate funding capacity was thereby reduced to $54.9 million , which was the amount outstanding under the facility on December 31, 2015. Residential expects to repay the remaining outstanding balance of the DB repurchase agreement during March 2016 primarily with available funds and then transfer of all or some of the collateral to its other existing facilities. • Wells Fargo (“Wells”) is the lender under the repurchase agreement dated 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 Residential's non-performing loans that previously had been financed under the Wells repurchase agreement. On February 20, 2015, Residential exercised its option to extend the termination date of this facility to March 23, 2016. On September 30, 2015, the Wells repurchase agreement was amended to extend the termination date of the facility to September 27, 2017, to re-increase the aggregate amount of available funding to $750.0 million and to further increase the sublimits of REO properties that may collateralize the facility from 10% of the aggregate funding capacity to 40% of the aggregate funding capacity, or $300.0 million of the $750.0 million . • Nomura Corporate Funding Americas, LLC (“Nomura”) is the lender under a loan agreement dated April 10, 2015 (the “Nomura loan agreement”) with an initial aggregate maximum funding capacity of $100.0 million . On May 12, 2015, Residential 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. On Residential's behalf, we are in discussions with Nomura to renew and further extend the Nomura loan 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. Following all of the amendments described above, the maximum aggregate funding available to Residential under these repurchase and loan agreements as of December 31, 2015 was $1.3 billion , subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of December 31, 2015 , an aggregate of $767.5 million was outstanding under these repurchase and loan agreements. All obligations under each of these repurchase and loan agreements are fully guaranteed by Residential. The following table sets forth data with respect to Residential's repurchase and loan agreements as of December 31, 2015 and December 31, 2014 ($ in thousands): Maximum Borrowing Capacity Book Value of Collateral Amount Outstanding Amount of Available Funding December 31, 2015 CS repurchase agreement due April 18, 2016 $ 275,000 $ 335,184 $ 194,346 $ 80,654 Wells repurchase agreement due September 27, 2017 750,000 708,275 371,130 378,870 DB repurchase agreement due March 11, 2016 54,944 130,863 54,944 — Nomura loan agreement due April 8, 2016 200,000 204,578 147,093 52,907 $ 1,279,944 $ 1,378,900 $ 767,513 $ 512,431 December 31, 2014 CS repurchase agreement due April 20, 2015 $ 225,000 $ 332,618 $ 222,044 $ 2,956 Wells repurchase agreement due March 23, 2015 750,000 1,036,409 569,509 180,491 DB repurchase agreement due March 11, 2016 250,000 450,532 223,447 26,553 $ 1,225,000 $ 1,819,559 $ 1,015,000 $ 210,000 Under the terms of each repurchase agreements, as collateral for the funds Residential draws thereunder, subject to certain conditions, Residential's operating partnership will sell to the applicable lender equity interests in its Delaware statutory trust subsidiaries that owns the applicable underlying assets on its 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 Residential, 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 Residential finances 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, Residential's operating partnership 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. Residential does not collateralize any of its repurchase facilities with cash. Pursuant to the CS repurchase agreement, Residential is entitled to collateralize a portion of the facility with securities. As of December 31, 2015, approximately $19.8 million of the amounts outstanding under the CS repurchase agreement was collateralized by $32.0 million of the Class M Notes issued and retained by Residential in connection with the securitization completed in September 2014 by ARLP 2014-1, approximately $29.2 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 Residential in connection with the securitization completed in November 2014 by ARLP 2014-2, and approximately $21.0 million of the amounts outstanding under the CS repurchase agreement was collateralized by $34.0 million of the Class A-2 Notes issued and retained by Residential in connection with the securitization completed in July 2015 by ARLP 2015-1. The repurchase agreements require Residential 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. Residential is restricted by the terms of its repurchase agreements from paying dividends greater than its REIT taxable income in a calendar year. Under the terms of the Nomura loan agreement, subject to certain conditions, Nomura may advance funds to Residential 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, Residential is 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 Residential 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. Residential is currently in compliance with the covenants and other requirements with respect to its repurchase and loan agreements. We monitor Residential's banking partners' ability to perform under the repurchase and loan agreements and have concluded there is currently no reason to doubt that they will continue to perform under the repurchase and loan agreements as contractually obligated. Other secured debt On June 29, 2015, Residential 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 Residential's operating partnership with a federally-chartered bank as its trustee. Residential 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 Residential and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2015-1 but not by any of Residential's 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 Residential does not guarantee any of the obligations of ARLP 2015-1 under the terms of the indenture governing the notes or otherwise. As of December 31, 2015, the book value of the underlying securitized assets held by ARLP 2015-1 was $282.1 million . On November 25, 2014, Residential completed a securitization transaction in which ARLP 2014-2 issued $270.8 million in ARLP 2014-2 Class A Notes with a weighted yield of approximately 3.85% and $234.0 million in ARLP 2014-2 Class M Notes. Residential 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, Residential 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 Residential's 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 Residential does not guaranty any of the obligations of ARLP 2014-2 under the terms of the indenture governing the notes or otherwise. As of December 31, 2015 , the book value of the underlying securitized assets held by ARLP 2014-2 was $322.5 million . On September 25, 2014, Residential completed a securitization transaction in which ARLP 2014-1 issued $150.0 million in Class A Notes with a weighted yield of approximately 3.47% and $32.0 million in Class M Notes with a weighted yield 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 Residential's 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 Residential does not guaranty any of the obligations of ARLP 2014-1 under the terms of the indenture governing the notes or otherwise. As of December 31, 2015 , the book value of the underlying securitized assets held by ARLP 2014-1 was $202.3 million . Residential retained all of the Class M Notes issued by ARLP 2014-1 in its TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. On September 22, 2015, the TRS completed its repurchase of the ARLP 2014-1 Class M notes from NewSource at a 5.0% yield. The following table sets forth data with respect to these notes as of December 31, 2015 and 2014 ($ in thousands): Interest Rate Amount Outstanding December 31, 2015: ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (1) 3.47 % $ 136,404 ARLP 2014-1 Class M Notes due September 25, 2044 (2) 4.25 % 32,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (3) 3.63 % 244,935 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2015-1 ARLP 2015-1 Class A Notes due May 25, 2055 (4) 4.01 % 203,429 ARLP 2015-1 Class M Notes due May 25, 2044 — % 60,000 Intercompany eliminations Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (45,138 ) Elimination of ARLP 2014-2 Class M Notes due to ARLP (234,010 ) 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 ) $ 505,630 December 31, 2014: ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (1) 3.47 % $ 150,000 ARLP 2014-1 Class M Notes due September 25, 2044 (2) 4.25 % 32,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (3) 3.85 % 269,820 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARNS, Inc. Securities sold under agreement to repurchase due March 27, 2015 5.00 % 14,991 Intercompany eliminations Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc. (15,000 ) Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (95,729 ) Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. (234,010 ) $ 324,082 __________________ (1) The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018. (2) The expected redemption date for the Class M Notes is September 25, 2018. (3) The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018. (4) The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 8. Commitments and contingencies Litigation, claims and assessments From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. Set forth below is a summary of legal proceedings to which we are a party as of December 31, 2015 or which settled during 2015: Police Retirement System of St. Louis v. Erbey, et al. On January 15, 2015, a stockholder derivative action was filed in the Circuit Court of Maryland for Baltimore City by a purported stockholder of Residential under the caption The Police Retirement System of Saint Louis v. Erbey, et al. , 24-C-15-000223. The action named as defendants William C. Erbey and each of the members of Residential’s Board of Directors and alleged that Mr. Erbey and Residential’s Directors breached their fiduciary duties in connection with the asset management agreement among Residential, Altisource Residential, L.P. and us. The action also named Altisource Residential, L.P. and AAMC as defendants and alleged that we aided and abetted the purported breaches of fiduciary duty and have been unjustly enriched by the asset management agreement. The complaint also named Residential as a nominal defendant. The plaintiff sought, among other things, an order declaring that Mr. Erbey and the director defendants have breached their fiduciary duties, an order declaring that Mr. Erbey and AAMC have been unjustly enriched, an order declaring that the asset management agreement is unenforceable and directing Residential’s Board of Directors to terminate the asset management agreement, damages, disgorgement by Mr. Erbey and AAMC of allegedly wrongful profits, changes to Residential’s corporate governance and an award of attorney’s and other fees and expenses. On March 31, 2015, we and Residential entered into the New AMA to replace the Original AMA. This New AMA was publicly announced on March 31, 2015. In connection with the entry into the New AMA, the Defendants (including all the individual defendants, Residential, AAMC and Altisource Residential, L.P.) and Plaintiff entered into a Memorandum of Understanding (the “MOU”) to settle the action for the consideration of the New AMA and an application for an award of attorneys’ fees and litigation expenses for plaintiff’s counsel of an amount not to exceed $6.0 million . 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 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 Residential to provide notice of the proposed Settlement to its stockholders. On November 9, 2015, the Settlement was approved by the court, and no shareholders objected to the Settlement. Therefore, the matter was resolved and all claims in the action that were, or could have been, brought by or on behalf of Residential challenging the Original AMA among Residential, Altisource Residential L.P. and AAMC, or the negotiation of, the terms and provisions of, or the approval of the New AMA. Pursuant to the Settlement, the defendants paid the attorneys’ fees and expenses of plaintiff’s counsel in an amount of $6.0 million . This payment was a 100% covered claim under Residential’s and our insurance policy, and we recognized no loss in connection with this settlement. 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 of Residential under the caption Kirk Hulstrom v. William Erbey, et al ., SX-15-CV-158. The action named as defendants William C. Erbey, each of the current and former members of Residential’s Board of Directors, certain officers of Residential, AAMC and Ocwen. In the complaint, plaintiff asserted claims against the individual defendants for breach of fiduciary duty, abuse of control and gross mismanagement in connection with the asset management agreement between Residential and us. As to AAMC and Ocwen, plaintiff alleged that both companies aided and abetted the purported breaches of fiduciary duty and have been unjustly enriched by the asset management agreement. The complaint also named Residential as a nominal defendant. In November 2015, the parties agreed that plaintiff Hulstrom would become party to the Settlement in the Police Retirement System of St. Louis action described above with no additional Settlement payment by the defendants. In connection therewith, on December 10, 2015, Hulstrom filed a notice of voluntary dismissal of this matter, which released and resolved all claims asserted in this action. Therefore, there is no expected liability to us in this matter. City of Cambridge Retirement System v. Altisource Asset Management Corp., et al. On January 16, 2015, a putative shareholder class action complaint was filed in the United States District Court of the Virgin Islands by a purported shareholder of AAMC under the caption City of Cambridge Retirement System v. Altisource Asset Management Corp., et al. , 15-cv-00004. The action names as defendants AAMC, Mr. Erbey and certain officers of AAMC and alleges that the defendants violated federal securities laws by failing to disclose material information to AAMC shareholders concerning alleged conflicts of interest held by Mr. Erbey with respect to AAMC’s relationship and transactions with Residential, Altisource, Home Loan Servicing Solutions, Ltd., Southwest Business Corporation, NewSource Reinsurance Company and Ocwen, including allegations that the defendants failed to disclose (i) the nature of relationships between Mr. Erbey, AAMC and those entities; and (ii) that the transactions were the result of an allegedly unfair process from which Mr. Erbey failed to recuse himself. The action seeks, among other things, an award of monetary damages to the putative class in an unspecified amount and an award of attorney’s and other fees and expenses.AAMC and Mr. Erbey are the only defendants who have been served with the complaint. On May 12, 2015, the court entered an order granting the motion of Denver Employees Retirement Plan to be lead plaintiff. On May 15, 2015, the court entered a scheduling order requiring plaintiff to file an amended complaint on or before June 19, 2015, and setting a briefing schedule for any motion to dismiss. Plaintiff filed an amended complaint on June 19, 2015. On July 20, 2015, AAMC and Mr. Erbey filed a motion to dismiss the amended complaint. Briefing on the motion to dismiss was completed on September 3, 2015, and we are awaiting a decision from the court on the motion. We believe the amended complaint is without merit. At this time, we are not able to predict the ultimate outcome of this matter, nor can we estimate the range of possible loss, if any. Kanga v. Altisource Asset Management Corporation, et al. On March 12, 2015, a shareholder derivative action was filed in the Superior Court of the Virgin Islands, Division of St. Croix, by a purported shareholder of AAMC under the caption Nanzeen Kanga v. William Erbey, et al. , SX-15-CV-105. The action names as defendants William C. Erbey and each of the current and former members of AAMC's Board of Directors and alleges that Mr. Erbey and AAMC’s directors breached fiduciary duties in connection with the disclosures that are the subject of the City of Cambridge Retirement System case described above and certain other matters involving the relationship of Residential and AAMC. On May 15, 2015, the plaintiff and the defendants filed an agreed motion to stay the action until the earliest of any of the following events: (i) the City of Cambridge Retirement System action is dismissed with prejudice; (ii) any of the defendants in the City of Cambridge Retirement System action file an answer in that action; and (iii) defendants do not move to stay any later-filed derivative action purportedly brought on behalf of us arising from similar facts as the Kanga action and relating to the same time frame or such motion to stay is denied. 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. Sokolowski v. Erbey, et al. On December 24, 2014, a shareholder derivative action was filed in the United States District Court for the Southern District of Florida by a purported shareholder of Ocwen. The action named the directors of Ocwen as defendants and alleged, among other things, various breaches of fiduciary duties by the directors of Ocwen. On February 11, 2015, plaintiff filed an amended complaint naming the directors of Ocwen as defendants and also naming Residential, AAMC, Altisource and Home Loan Servicing Solutions, Ltd. as alleged aiders and abettors of the purported breaches of fiduciary duties. The amended complaint alleges that the directors of Ocwen breached their fiduciary duties by, among other things, allegedly failing to exercise oversight over Ocwen’s compliance with applicable laws, rules and regulations; failing to exercise oversight responsibilities with respect to the accounting and financial reporting processes of Ocwen; failing to prevent conflicts of interest and allegedly improper related party transactions; failing to adhere to Ocwen’s code of conduct and corporate governance guidelines; selling personal holdings of Ocwen stock on the basis of material adverse inside information; and disseminating allegedly false and misleading statements regarding Ocwen’s compliance with regulatory obligations and allegedly self-dealing transactions with related companies. Plaintiff claims that as a result of the alleged breaches of fiduciary duties, Ocwen has suffered damages, including settlements with regulatory agencies in excess of $2 billion, injury to its reputation and corporate goodwill and exposure to governmental investigations and securities and consumer class action lawsuits. In addition to the derivative claims, the plaintiff also alleges an individual claim that Ocwen’s 2014 proxy statement allegedly contained untrue statements of material fact and failed to disclose material information in violation of federal securities laws. The plaintiff seeks, among other things, an order requiring the defendants to repay to Ocwen unspecified amounts by which Ocwen has been damaged or will be damaged, an award of an unspecified amount of exemplary damages, changes to Ocwen's corporate governance and an award of attorneys’ and other fees and expenses. On April 13, 2015, nominal defendant Ocwen and defendants Mr. Erbey and Mr. Faris filed a motion to stay the action. 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 Residential filed a similar motion to dismiss the complaint as to all claims asserted against it. On December 8, 2015, the court granted Residential's and our motions to dismiss for lack of personal jurisdiction with leave to amend the jurisdiction allegations no later than January 4, 2016. On December 15, 2015, Hutt v. Erbey, et al. , Case No. 15-cv-81709-WPD, was transferred to the Southern District of Florida from the Northern District of Georgia. That same day, a third related derivative action, Lowinger v. Erbey, et al. , Case No. 15-cv-62628-WPD, was also filed in the Southern District of Florida. The court then requested that the parties file a response stating their positions as to whether the actions should be consolidated. On December 29, 2015, we filed a response stating that we took no position on the issue of consolidation, so long as our defenses were fully reserved should plaintiff Sokolowski seek to file an amended complaint. Neither plaintiff Sokolowski nor plaintiff Hutt opposed consolidation in their responses. On December 30, 2015, the court issued an order that, among other things, extended the deadline for plaintiff Sokolowski to file its amended complaint to cure the jurisdictional defects as to Residential and us until January 13, 2016. On January 8, 2016, the court issued an order consolidating the three related actions. On February 2, 2016, Plaintiffs Sokolowski and Lowinger filed competing motions for appointment of lead counsel in the consolidated action. These motions were fully briefed on February 5, 2016. Subsequently, on February 17, 2016, the court issued an order appointing Sokolowski’s counsel as lead counsel with Lowinger’s and Hutt’s counsel serving on the executive committee of the plaintiffs. It also ordered that a consolidated complaint in the matter shall be filed no later than March 8, 2016. We believe the complaint against us is without merit. At this time, we are not able to predict the ultimate outcome of this matter, nor can we estimate the range of possible loss, if any. Management does not believe that we have incurred an estimable, probable or material loss by reason of any of the above actions. |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-party transactions | 9. Related-party transactions 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 Residential. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of us, Altisource and Residential 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 or AAMC as defined by FASB Accounting Standards Codification (“ASC”) Topic 850, Related Party Disclosures . Asset Management Agreement with Residential Pursuant to the asset management agreement, we design and implement Residential's business strategy, administer its business activities and day-to-day operations and provide corporate governance services, subject to oversight by Residential's Board of Directors. We are responsible for, among other duties: (1) performing and administering all of Residential's day-to-day operations, (2) defining investment criteria in Residential's investment policy in cooperation with its Board of Directors, (3) sourcing, analyzing and executing asset acquisitions, including the related financing activities, (4) analyzing and executing sales of properties and residential mortgage loans, (5) overseeing Altisource’s renovation, leasing and property management of Residential's single-family rental properties, (6) overseeing the servicing of Residential's residential mortgage loan portfolios, (7) performing asset management duties and (8) performing corporate governance and other management functions, including financial, accounting and tax management services. We provide Residential with a management team and appropriate support personnel who have substantial experience in the management of residential mortgage loans and residential rental properties. Our management also has significant corporate governance experience that enables us to manage Residential's business and organizational structure efficiently. We have agreed not to provide the same or substantially similar services without the prior written consent of Residential's board of directors to any business or entity competing against Residential in (a) the acquisition or sale of portfolios of REO properties, (b) the carrying on of a single-family rental business, (c) the acquisition or sale of single-family rental properties, non-performing and re-performing mortgage loans or other similar assets, (d) the purchase of portfolios of sub-performing or non-performing residential mortgage loans or (e) any other activity in which Residential engages. Notwithstanding the foregoing, we may engage in any other business or render similar or different services to any businesses engaged in lending or insurance activities or any other activity other than those described above. Further, at any time following Residential's determination and announcement that it will no longer engage in any of the above-described competitive activities, we would be entitled to provide advisory or other services to businesses or entities in such competitive activities without Residential's prior consent. On March 31, 2015, we entered into the New AMA with Residential. 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 AMA, as follows: • Base Management Fee . We are entitled to a quarterly Base Management Fee equal to 1.5% of the product of (i) Residential's average invested equity capital for the quarter multiplied by (ii) 0.25 , while it has 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 Residential has between 2,500 and 4,499 Rental Properties and increases to 2.0% of invested capital while it has 4,500 or more Rental Properties; • Incentive Management Fee . We are entitled to a quarterly Incentive Management Fee equal to 20% of the amount by which Residential's return on invested capital (based on AFFO, defined as net income attributable to holders of common stock calculated in accordance with GAAP plus real estate depreciation expense minus recurring capital expenditures on all real estate assets owned by Residential) exceeds an annual 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 Residential has between 2,500 and 4,499 Rental Properties and increases to 25% while it has 4,500 or more Rental Properties; and • Conversion Fee . We are entitled to a quarterly Conversion Fee equal to 1.5% of the market value of assets converted into leased single-family homes by Residential for the first time during the quarter. Residential has the flexibility to pay up to 25% of the Incentive Management Fee to us in shares of its common stock. Under the New AMA, Residential will not be required to reimburse us for the allocable compensation and routine overhead expenses of our employees and staff, all of which will now be covered by the Base Management Fee described above. Under the New AMA, we will continue to be the exclusive asset manager for Residential for an initial term of 15 years from April 1, 2015, with two potential five -year extensions, subject to Residential achieving an average annual return on invested capital of at least 7.0% during the then-current period. The Original AMA had a 15 year term, but provided Residential with significant termination rights including the ability to terminate the agreement if Residential’s board determined, in its sole discretion, that our performance was unsatisfactory or our compensation was reasonable. However, under the New AMA, Residential’s termination rights are significantly limited. Under the New AMA, 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 Residential “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 its 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 or (c) Residential in connection with certain change of control events. Under the Old AMA, Residential paid us a quarterly incentive management fee as follows: (i) 2% of all cash available for distribution by Residential to its stockholders and to us as incentive management fee, which we referred to as “available cash,” until the aggregate amount per share of available cash for the quarter (based on the average number of shares of our common stock outstanding during the quarter), which we referred to as the “quarterly per share distribution amount,” exceeded $0.161 , then (ii) 15% of all additional available cash for the quarter until the quarterly per share distribution amount exceeded $0.193 , then (iii) 25% of all additional available cash for the quarter until the quarterly per share distribution amount exceeded $0.257 , and thereafter (iv) 50% of all additional available cash for the quarter, in each case set forth in clauses (i) through (iv), as such amounts would have been appropriately adjusted from time to time to take into account the effect of any stock split, reverse stock split or stock dividend, should any have occurred. Residential distributed any quarterly distribution to its stockholders after the application of the incentive management fee payable to us. Residential was required to reimburse us on a monthly basis for the (i) direct and indirect expenses we incurred or payments we made on Residential’s behalf, including, but not limited to, the allocable compensation and routine overhead expenses of all of our employees and staff and (ii) all other reasonable operating and overhead expenses we incurred related to the asset management services we provided to Residential. Agreements with Altisource We have engaged Altisource to provide services for us as detailed below. If for any reason Altisource is unable to perform the services described under these agreements at the level and/or the cost that we anticipate, alternate service providers may not be readily available on favorable terms, or at all, which could adversely affect our performance. Altisource’s failure to perform the services under these agreements with Residential or us could have a material adverse effect on us. Support services agreements Under separate support services agreement with each of Residential and us, Altisource may provide services in such areas as human resources, vendor management operations, corporate services, risk management, quality assurance, consumer psychology, treasury, finance and accounting, legal, tax, compliance and other support services where Residential or we may need assistance and support. The support services agreement provides generally that Altisource will undertake to provide the support services in a manner generally consistent with the manner and level of care with which such service, if any, was performed or provided prior to our separation from Altisource. Each support services agreement may be extended for two years after the separation and automatically renews every year thereafter, but may be terminated earlier under certain circumstances including a default. The fees for all support services provided pursuant to each support services agreement are based on the fully-allocated cost of providing the service. “Fully-allocated cost” means the all-in cost of providing such service, including direct charges and allocable amounts reflecting compensation and benefits, technology expenses, occupancy and equipment expense and third-party payments (but not taxes incurred in connection therewith). During 2015, we internalized certain of the support services that had been provided to us by Altisource by directly hiring 31 of the Altisource employees that had provided those services. We believe the direct hire of these employees has further increased our infrastructure so that we are better able to serve Residential operationally while enabling Altisource to focus on the property management, maintenance and brokerage services that matter most to Residential. The total fees incurred by Residential or us under these agreements are dependent upon business activity and the level of services required in connection therewith. In the event our asset management agreement with Residential expires or is terminated, the support services agreements will terminate within 30 days. Technology services agreement Under the technology services agreement, Altisource provides certain technology products and services to us, including telephone and network administration. The total fees incurred by us under this agreement will be dependent upon our business activity and the level of services required. Tax matters agreement The tax matters agreement with Altisource sets our each party's rights and obligations with respect to deficiencies and refunds, if any, of Luxembourg, U.S. federal, state, local or other foreign taxes for periods before and after our separation from Altisource and related matters such as the filing of tax returns and the conduct of IRS and other audits. In general, under this agreement, we are responsible for taxes attributable to our business incurred after the separation, and Altisource is responsible for taxes attributable to our business incurred prior to the separation. Trademark license agreement Under the trademark license agreement, Altisource granted us a non-exclusive, non-transferable, non-sublicensable, royalty free license to use the name “Altisource.” The agreement has no specified term and may be terminated by either party upon 30 days’ written notice, with or without cause. In the event that this agreement is terminated, all rights and licenses granted thereunder, including, but not limited to, the right to use “Altisource” in our name will terminate. In the event our asset management agreement with Residential expires or is terminated, the trademark license agreement will terminate within 30 days. Agreement Residential has with Altisource Master services agreement Residential has engaged Altisource to provide property management, leasing, renovation management and valuation services associated with the single-family rental properties they acquire upon conversion of residential mortgage loans that continue to be sub-performing or non-performing. The agreement provides for an initial term of 15 years, which term will automatically renew for successive two -year terms unless either party sends a notice of non-renewal to the other party at least nine months before the completion of the initial or renewal term, as applicable. We work directly with Altisource’s vendor management team on behalf of Residential, and our construction management team often interfaces with the general contractors and vendors to maintain relationships with the vendor network. Through our team, Residential coordinates with Altisource and its personnel as well as the vendor network to establish a collective approach to the renovation management, maintenance, repair and materials supply chain. We believe our experience and these coordinated efforts with Altisource provide us with the capabilities to replicate Altisource’s vendor network, if necessary. The total fees incurred by Residential under this agreement will be dependent upon the property management, leasing and renovation management services required on an asset-specific basis and will vary significantly based upon the location and condition of the asset as well as current market conditions and tenant turnover. In the event Residential’s asset management agreement with us is terminated without cause by Residential, the master services agreement with Altisource may be terminated at its sole discretion. Agreements with Ocwen Support services agreement Under the support services agreement, Ocwen may provide us with business development services, as well as analytical services in connection with our management and valuation of Residential’s portfolio and administrative services in connection with the operation of our business. The support services agreement may be terminated by either us or Ocwen upon 30 days prior notice. The fees for all support services provided pursuant to the support services agreement are based on the fully-allocated cost of providing the service. “Fully-allocated cost” means the all-in cost of providing such service, including direct charges and allocable amounts reflecting compensation and benefits, technology expenses, occupancy and equipment expense and third-party payments (but not taxes incurred in connection therewith). The Ocwen support services agreement was terminated in February 2016. The total fees incurred by us under this agreement are dependent upon our business activity and the level of services required in connection therewith. Aircraft time sharing agreement On November 15, 2013, we entered into an Aircraft Time Sharing Agreement, or the “Timeshare Agreement,” with Ocwen pursuant to which Ocwen will make its corporate plane available to us for business-related travel from time to time. Under the Time Sharing Agreement, Ocwen agreed to provide us, on a time sharing basis, access to its plane in consideration of our reimbursement to Ocwen of the sum of its direct expenses of operating the plane plus an additional charge equal to 100% of such expenses. The amounts actually charged to us in any period will directly correlate to our use of the aircraft in each period, which will vary depending on our needs and business use. The Timeshare Agreement was terminated in February 2016. Sublease Until the second quarter of 2015, we subleased approximately 2,000 square feet from Ocwen. The annual rent under the sublease was $40,000 per year until June 30, 2014 and $45,000 per year until the termination date of the lease, plus 50% of the lease-related operating expenses and leasehold improvements. The sublease was terminated in April 2015. Agreement Residential has with Ocwen Servicing agreement Residential has engaged Ocwen to service certain of its residential mortgage loans and to provide loan modification, assisted deed-in-lieu, assisted deed-for-lease and other loss mitigation programs. The agreement provides for an initial term of 15 years. In the event Residential’s asset management agreement with us expires or is terminated, the servicing agreement will terminate within 30 days. From Residential's inception through 2014, Residential had exclusively engaged Ocwen to service the residential mortgage loans in its portfolio. During 2015, Residential transferred servicing of a portion of its portfolio to two additional mortgage servicers. The total fees incurred by Residential under this agreement are dependent upon the number and type of acquired residential mortgage loans that Ocwen services pursuant to the terms of the agreement. Related party transaction summary Our consolidated statements of operations include the following significant related party transactions for the periods indicated ($ in thousands): Amount Counter- party Location within Consolidated Statements of Operations Year ended December 31, 2015 Base management fee $ 13,935 Residential Net income attributable to noncontrolling interest in consolidated affiliate Conversion fee 1,037 Residential Net income attributable to noncontrolling interest in consolidated affiliate Expense reimbursements 750 Residential Net income attributable to noncontrolling interest in consolidated affiliate Management incentive fee 7,994 Residential Net income attributable to noncontrolling interest in consolidated affiliate Professional fee sharing for negotiation of AMA 2,000 Residential Net income attributable to noncontrolling interest in consolidated affiliate Year ended December 31, 2014 Residential property operating expenses (1) $ 21,612 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 65,363 Ocwen Mortgage loan servicing costs Acquisition fees and costs 1,039 Altisource Related party acquisition fees and costs Office and occupancy costs 349 Ocwen Related party general and administrative expenses Salaries and benefits 2,028 Ocwen/Altisource Related party general and administrative expenses Other general and administrative expenses 2,069 Altisource Related party general and administrative expenses Expense reimbursements 6,070 Residential Net income attributable to noncontrolling interest in consolidated affiliate Management incentive fee 67,949 Residential Net income attributable to noncontrolling interest in consolidated affiliate Year ended December 31, 2013 Residential property operating expenses (1) $ 767 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 9,335 Ocwen Mortgage loan servicing costs Acquisition fees and costs 115 Altisource Related party acquisition fees and costs Office and occupancy costs 256 Ocwen Related party general and administrative expenses Salaries and benefits 1,273 Ocwen/Altisource Related party general and administrative expenses Other general and administrative expenses 2,123 Altisource Related party general and administrative expenses Expense reimbursements 5,411 Residential Net loss (income) attributable to noncontrolling interest in consolidated affiliate Management incentive fee 4,880 Residential Net loss (income) attributable to noncontrolling interest in consolidated affiliate _______________ (1) Residential property operating expenses include costs associated with Residential's ownership and operation of rental properties, including valuation services. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use. No Incentive Management Fee under the New AMA was earned by us during 2015 because Residential's return on invested capital (as defined in the New AMA) for the three quarters covered by the new AMA was below the required hurdle rate. Under the New AMA, to the extent Residential has an aggregate shortfall in its return rate over the previous seven quarters, that aggregate return rate shortfall gets added to the normal quarterly 1.75% return hurdle for the next quarter before we are entitled to an Incentive Management Fee. As of December 31, 2015 , the aggregate return shortfall from the prior three quarters under the New AMA was approximately 10.77% of invested capital. Therefore, Residential must achieve a 12.52% return on invested capital in the first quarter of 2016 before any Incentive Management Fee will be payable to us for the first quarter of 2016. In future quarters, return on invested capital must exceed the required hurdle for the current quarter plus any carried-forward cumulative additional hurdle shortfall from the prior seven quarters before any Incentive Management Fee will be payable to us. In September 2015, we contributed an additional $5.0 million to NewSource. In the third quarter of 2015, we acquired 324,465 shares of Residential's common stock in open market transactions, representing approximately 0.58% of Residential's outstanding common stock as of December 31, 2015 . Transactions under our agreements with Ocwen and Altisource for the period January 1, 2015 through January 16, 2015 were not material to our consolidated results of operations. On September 30, 2014, pursuant to a master repurchase agreement, Residential's TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. On September 22, 2015, the TRS completed its repurchase of the ARLP 2014-1 Class M Notes from NewSource at a 5.0% yield. During the year ended December 31, 2013 , Residential acquired a portfolio from Ocwen Financial Corporation ("Ocwen") of non-performing first lien residential mortgage loans having aggregate market value of underlying properties of $94 million . The aggregate purchase price for this portfolio was $64 million . |
Incentive compensation and shar
Incentive compensation and share-based payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive compensation and share-based payments | 10. Incentive compensation and share-based payments Long-Term Incentive Compensation Our named executives and certain employees participate in an annual non-equity incentive program whereby they are eligible for incentive cash payments based on a percentage of their annual base salary. Each officer has a target annual non-equity incentive payment percentage that ranges from 0% to 150% of base salary. The officer's actual incentive payment for the year is determined by (i) the Company's performance versus the objectives established in the corporate scorecard ( 80% ) and (ii) a performance appraisal ( 20% ). Our named executive officers and certain employees have and will receive grants of stock options and restricted stock under the 2012 Equity Incentive Plan (the “2012 Plan”). In addition, a special grant of stock options and restricted stock was made to certain Ocwen employees related to the separation under the 2012 Special Equity Incentive Plan (the “2012 Special Plan”). Dividends received on restricted stock are forfeitable and are accumulated until the time of vesting at the same rate and on the same date as on shares of common stock. The aggregate number of shares of common stock that may be issued under the 2012 Plan is approximately 15% of our outstanding shares, subject to proportionate adjustment in the event of stock splits and similar events. Upon the vesting of stock options and restricted stock, we may withhold up to the statutory minimum to satisfy the resulting employee tax obligation. The 2012 Plan also allows for the grant of performance awards and other awards such as purchase rights, equity appreciation rights, shares of common stock awarded without restrictions or conditions, convertible securities, exchangeable securities or other rights convertible or exchangeable into shares of common stock, as the Compensation Committee in its discretion may determine. The following table sets forth the number of shares of common stock reserved for future issuance: December 31, 2015 Stock options outstanding 181,702 Possible future issuances under equity incentive plan 114,196 295,898 As of December 31, 2015 , we had 2,951,777 remaining shares of common stock authorized to be issued under our charter. Stock options The following table sets forth the activity of our outstanding options: Number of Options Weighted Average Exercise Price per Share December 31, 2012 305,824 1.36 Exercised (10,215 ) 1.89 Forfeited or canceled (14,388 ) 5.87 December 31, 2013 281,221 1.11 Exercised (41,685 ) 1.16 Forfeited or canceled (476 ) 1.51 December 31, 2014 239,060 1.10 Exercised (54,261 ) 1.35 Forfeited or canceled (3,097 ) 4.14 December 31, 2015 (1) (2) 181,702 0.98 ______________ (1) The outstanding options as of December 31, 2015 had a weighted average remaining life of 2.9 years with total intrinsic value of $2.9 million . (2) We have 181,211 options exercisable as of December 31, 2015 with a weighted average exercise price of $0.97 , weighted average remaining life of 2.9 years and intrinsic value of $2.9 million . Of these exercisable options, none had exercise prices higher than the market price of our common stock as of December 31, 2015 . Restricted stock During the year ended December 31, 2015 and 2014 , we granted 52,409 and 30,663 shares, respectively, of market-based restricted stock to certain members of executive management under the 2012 Plan with a weighted average grant date fair value per share of $174.59 and $695.78 , respectively. Restricted stock granted in 2015 and 2014 generally vests based on achievement of the following performance hurdles and vesting schedule: • Twenty-five percent ( 25% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty percent ( 20% ) over the market value on the date of the grant; and (ii) the market value is at least double the market value on the date of the grant; • Fifty percent ( 50% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty-two and a half percent ( 22.5% ) over the market value on the date of the grant; and (ii) the market value is at least triple the market value on the date of the grant and • Twenty-five percent ( 25% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of Company stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty-five percent ( 25% ) over the market value on the date of the grant; and (ii) the market value is at least quadruple the market value on the date of the grant. • After the performance hurdles have been achieved, 25% of the restricted stock will vest on the first anniversary of the date that the performance hurdle for that tranche was met and the remaining 75% of that tranche will vest on the second anniversary of the date that the performance hurdle was met. Restricted stock granted in 2013 vests based on achievement of the following performance hurdles and vesting schedule: • Twenty-five percent ( 25% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets all three of the following conditions: (i) the market value is at least equal to $250 million ; (ii) the market value has realized a compounded annual gain of at least twenty percent ( 20% ) over the market value on the date of the grant; and (iii) the market value is at least double the market value on the date of the grant; • Fifty percent ( 50% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets all three of the following conditions: (i) the market value is at least equal to $500 million ; (ii) the market value has realized a compounded annual gain of at least twenty-two and a half percent ( 22.5% ) over the market value on the date of the grant; and (iii) the market value is at least triple the market value on the date of the grant and • Twenty-five percent ( 25% ) of the grant will vest in accordance with the vesting schedule set forth below if the market value of Company stock meets all three of the following conditions: (i) the market value is at least equal to $750 million ; (ii) the market value has realized a compounded annual gain of at least twenty-five percent ( 25% ) over the market value on the date of the grant; and (iii) the market value is at least quadruple the market value on the date of the grant. • After the performance hurdles have been achieved, 25% of the restricted stock will vest on each of the first four anniversaries of the date that the performance hurdles were met. We granted shares of restricted stock under the 2012 Plan and 2012 Special Plan related to the separation. We include no share-based compensation in our Consolidated Financial Statements for the portion of these grants made to Altisource employees. Additionally, our Directors each receive annual grants of restricted stock equal to $60,000 based on the market value of our common stock at the time of the annual stockholders meeting. This restricted stock vests and is issued after a one -year service period subject to each Director attending at least 75% of the Board and committee meetings. No dividends are paid on the shares until the award is issued. During the years ended December 31, 2015 and 2014 , we granted 1,122 and 214 shares of stock, respectively, pursuant to our 2013 Director Equity Plan with a weighted average grant date fair value per share of $162.66 and $940.32 , respectively. We recorded $6.9 million and $1.3 million of compensation expense related to these grants for the years ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 , we had $18.7 million and $21.1 million , respectively, of total unrecognized share-based compensation cost to be recognized over a weighted average remaining estimated term of 2.9 years and 3.0 years , respectively. The following table sets forth the activity of our restricted stock: Number of Shares Weighted Average Grant Date Fair Value December 31, 2012 205,512 $ 5.90 Granted 32,667 70.16 Vested (1) (660 ) 5.90 Forfeited or canceled (8,765 ) 5.90 December 31, 2013 228,754 15.32 Granted 30,877 697.48 Vested (1) (56,328 ) 16.53 Forfeited or canceled (27,814 ) 294.59 December 31, 2014 175,489 90.51 Granted 53,531 174.34 Vested (1) (51,305 ) 11.53 Forfeited or canceled (23,389 ) 6.65 December 31, 2015 154,326 158.84 _____________ (1) The vesting date fair value of restricted stock that vested during the year ended December 31, 2015 , 2014 and 2013 was $11.6 million , $52.6 million and $0.2 million , respectively. Restricted stock granted to our employees We calculate the grant date fair value of restricted stock using a Monte Carlo simulation and amortize the resulting compensation expense over the respective vesting or service period. The fair value of restricted stock granted was determined using the following assumptions, weighted by number of shares: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Risk Free Interest Rate (1) 2.89% to 3.27% 3.07% to 3.73% 3.18% Common Stock Dividend Yield (2) 0% 0% 0% Expected Volatility (3) 92.04% to 96.46% 74.61% to 82.66% 36.31% _____________ (1) Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted stock grants. (2) At the date of grant, we had no history of dividend payments. (3) Based on the historical volatility of comparable companies, adjusted for our expected additional cash flow volatility. On December 31, 2015, we modified 74,307 unvested shares of restricted stock related to three employees. Subsequent to the modification, the performance hurdles that must be met prior to vesting are measured based on the market value as of the modification date. We recognized a nominal amount of expense in connection with these modifications during the year ended December 31, 2015. At December 31, 2015, we had approximately $59,000 of unrecognized share-based compensation cost related to the modified awards that will be recognized over a weighted average remaining estimated term of 2.6 years. Restricted stock granted to an Ocwen employee As part of the separation, we granted restricted stock to an employee of Ocwen. We calculated the fair value of non-employee restricted stock using a Monte Carlo simulation until each market hurdle was met. Subsequent to the market hurdle being met, we calculate the fair value of non-employee restricted stock based on the market value of shares quoted on the NYSE. The fair value is re-measured each accounting period with amortization of the resulting servicing expense over the vesting period. These instruments qualify for equity classification. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 11. Income taxes We are domiciled in the United States Virgin Islands (“USVI”) and under current USVI law are obligated to pay taxes in the USVI on our income and/or capital gains. We applied for tax benefits from the USVI Economic Development Commission and received our certificate of benefits, effective as of February 1, 2013. Under the certificate of benefits, so long as we comply with the provisions of the certificate, we will receive a 90% exemption on our USVI-sourced income taxes until 2043. NewSource is considered a controlled foreign corporation (“CFC”) to AAMC. CFC Subpart F income generated is taxed currently in the USVI and does not receive the reduced tax rate under the certificate of benefits. During the years ended December 31, 2015 and 2014 , Residential qualified as a REIT, distributed the necessary amount of taxable income and, therefore, incurred no federal income tax expense; accordingly, the only federal income taxes included in the accompanying consolidated financial statements are in connection with its taxable REIT subsidiary. The following table sets forth the components of income (loss) before income taxes: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 U.S. Virgin Islands $ (1,249 ) $ 70,670 $ (5,261 ) Other (1,687 ) (8,895 ) (32 ) (Loss) income before income taxes $ (2,936 ) $ 61,775 $ (5,293 ) The following table sets forth the components of our deferred tax assets: December 31, 2015 December 31, 2014 Deferred tax assets: Stock compensation and other $ 531 $ 339 Accrued expenses 387 172 Real estate and mortgage loan fair value adjustments 1,492 2,981 Other 6 — Net operating loss 21,592 468 24,008 3,960 Deferred tax liability: Depreciation 4 4 24,004 3,956 Valuation allowance (23,100 ) (3,491 ) Deferred tax asset, net $ 904 $ 465 The following table sets for the reconciliation of the statutory USVI income tax rate to our effective income tax rate: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 U.S. Virgin Islands income tax rate 38.5 % 38.5 % 38.5 % State and local income tax rates 4.7 (0.1 ) — Excluded REIT income 2.6 (27.3 ) (40.5 ) EDC benefits (0.7 ) (8.9 ) 4.8 Rate differential (3.5 ) (2.6 ) (3.9 ) Permanent and other (1.7 ) — — Valuation allowance (40.6 ) 1.2 1.1 Effective income tax rate (0.7 )% 0.8 % — % As of December 31, 2015 and 2014 , neither Residential nor we accrued interest or penalties associated with any unrecognized tax benefits during the year ended December 31, 2015 and 2014 . Residential recorded nominal state and local tax expense along with nominal penalties and interest on income and property for the years ended December 31, 2015 and 2014 . Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2015 . |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | 12. Earnings per share The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator Net (loss) income $ (3,290 ) $ 59,679 $ (5,293 ) Amortization of preferred stock issuance costs 206 166 — Numerator for basic EPS - (loss) income available to common stockholders (3,496 ) 59,513 (5,293 ) Add back amortization of preferred stock issuance costs — 166 — Numerator for diluted EPS - (loss) income available to common stockholders after assumed conversions $ (3,496 ) $ 59,679 $ (5,293 ) Denominator Weighted average common stock outstanding – basic 2,202,815 2,261,968 2,346,993 Stock options using treasury method — 251,967 — Restricted stock — 160,475 — Preferred shares, if converted — 157,778 — Weighted average common stock outstanding – diluted 2,202,815 2,832,188 2,346,993 (Loss) earnings per basic share $ (1.59 ) $ 26.31 $ (2.26 ) (Loss) earnings per diluted share $ (1.59 ) $ 21.07 $ (2.26 ) We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator (in dollars) Amortization of preferred stock issuance costs $ 206 $ — $ — Denominator (in weighted-average shares) Stock options 222,566 — 286,264 Restricted stock 85,121 — 226,481 Preferred stock, if converted 200,000 — — |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment information | 13. Segment information Our primary business is to provide asset management and certain corporate governance services to Residential. Residential's primary business is the acquisition and ownership of single-family rental assets. Residential's primary sourcing strategy is to acquire these assets by purchasing sub-performing and non-performing mortgage loans and single-family rental properties, either on an individual basis or in pools. As a result, we operate in a single segment focused on the acquisition and management of Residential's resolution of sub-performing and non-performing mortgages and acquisition and ownership of rental residential properties. |
Quarterly financial information
Quarterly financial information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information (unaudited) | 14. Quarterly financial information (unaudited) The following tables set forth our quarterly financial information (unaudited, $ in thousands except per share amounts): 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Total revenues $ 88,915 $ 76,519 $ 58,523 $ 24,142 $ 248,099 Net income (loss) 6,888 743 (1,980 ) (8,941 ) (3,290 ) Earnings (loss) per share of common stock – basic: Earnings (loss) per share basic 3.10 0.31 (0.92 ) (4.12 ) (1.59 ) Earnings (loss) per share of common stock – diluted: Earnings (loss) per share diluted 2.50 0.27 (0.92 ) (4.12 ) (1.59 ) 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Total revenues $ 74,628 $ 117,357 $ 109,102 $ 122,211 $ 423,298 Net income 6,828 13,230 17,698 21,923 59,679 Earnings per share of common stock – basic: Earnings per share basic 2.88 5.87 7.91 9.99 26.31 Earnings per share of common stock – diluted: Earnings per share diluted 2.39 4.60 6.25 7.92 21.07 |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Real Estate and Accumulated Depreciation | Altisource Asset Management Corporation Schedule III - Real Estate and Accumulated Depreciation December 31, 2015 ($ in thousands) State No. of Props Type Encum- Initial Cost to Company Capitalized Costs Subsequent to Acquisition Gross Amount at which Carried at Close of Period (2) Accum Depr and Reserves WA Age (1) Date Acquired Life on which Depr is Calc Alabama 39 SFR $ 1,754 $ 5,225 $ 174 $ 5,399 $ 441 23.8 2014 - 2015 3-27.5 years Alaska 1 SFR 84 185 — 185 — 32.0 2014 - 2014 Arizona 110 SFR 6,719 23,369 585 23,954 1,021 21.0 2013 - 2015 3-27.5 years Arkansas 30 SFR 667 2,955 192 3,147 700 36.7 2013 - 2015 3-27.5 years California 624 SFR 59,306 205,838 3,157 208,995 9,830 36.1 2013 - 2015 3-27.5 years Colorado 37 SFR 1,558 9,027 362 9,389 408 28.5 2014 - 2015 3-27.5 years Connecticut 53 SFR 4,024 9,789 203 9,992 844 59.1 2013 - 2015 3-27.5 years Delaware 21 SFR 875 3,146 30 3,176 355 43.5 2014 - 2015 3-27.5 years District of Columbia 1 SFR 136 241 3 244 26 105.0 2014 - 2014 3-27.5 years Florida 922 SFR 40,610 140,032 9,158 149,189 8,037 27.1 2013 - 2015 3-27.5 years Georgia 1,753 SFR 99,034 163,913 4,189 168,102 3,602 36.3 2013 - 2015 3-27.5 years Hawaii 3 SFR 112 534 — 534 4 42.2 2013 - 2015 3-27.5 years Idaho 19 SFR 1,139 2,941 87 3,029 110 33.9 2014 - 2015 3-27.5 years Illinois 387 SFR 19,006 63,216 3,334 66,551 7,700 42.8 2013 - 2015 3-27.5 years Indiana 188 SFR 6,854 19,903 2,005 21,909 1,663 30.6 2013 - 2015 3-27.5 years Iowa 12 SFR 258 1,146 6 1,152 27 46.5 2014 - 2015 3-27.5 years Kansas 23 SFR 531 1,755 173 1,928 189 54.1 2014 - 2015 3-27.5 years Kentucky 58 SFR 2,425 6,538 236 6,774 977 35.3 2013 - 2015 3-27.5 years Louisiana 21 SFR 732 2,205 135 2,339 335 35.9 2013 - 2015 3-27.5 years Maine 6 SFR 371 805 2 807 139 166.2 2014 - 2015 3-27.5 years Maryland 310 SFR 12,430 61,255 1,383 62,638 2,048 37.2 2013 - 2015 3-27.5 years Massachusetts 56 SFR 2,267 11,187 523 11,710 375 76.3 2014 - 2015 3-27.5 years Michigan 95 SFR 3,617 12,428 546 12,974 1,193 41.0 2014 - 2015 3-27.5 years Minnesota 62 SFR 2,928 10,616 437 11,054 1,084 43.7 2014 - 2015 3-27.5 years Mississippi 14 SFR 387 1,349 50 1,399 334 30.4 2014 - 2015 3-27.5 years Missouri 57 SFR 1,634 5,783 567 6,350 777 43.9 2013 - 2015 3-27.5 years Montana 3 SFR 364 790 3 793 158 28.8 2014 - 2015 3-27.5 years Nebraska 5 SFR 234 725 7 731 211 59.8 2014 - 2015 3-27.5 years Nevada 25 SFR 1,448 3,787 93 3,880 132 21.0 2013 - 2015 3-27.5 years New Hampshire 13 SFR 574 2,086 1 2,087 219 73.4 2014 - 2015 3-27.5 years New Jersey 89 SFR 3,626 14,960 530 15,490 802 60.4 2013 - 2015 3-27.5 years New Mexico 34 SFR 1,739 4,584 380 4,964 126 20.4 2013 - 2015 3-27.5 years New York 68 SFR 3,310 13,255 362 13,617 700 71.8 2013 - 2015 3-27.5 years North Carolina 222 SFR 10,835 26,953 2,539 29,492 2,386 19.7 2013 - 2015 3-27.5 years Ohio 118 SFR 4,516 14,513 747 15,260 1,967 41.2 2013 - 2015 3-27.5 years Oklahoma 17 SFR 455 1,757 138 1,894 63 35.1 2014 - 2015 3-27.5 years Oregon 16 SFR 697 2,714 4 2,718 — 45.5 2014 - 2015 Pennsylvania 250 SFR 8,695 34,491 1,487 35,978 4,172 54.6 2013 - 2015 3-27.5 years Rhode Island 54 SFR 1,480 6,572 679 7,251 351 83.6 2014 - 2015 3-27.5 years South Carolina 127 SFR 5,668 15,796 879 16,676 936 23.1 2013 - 2015 3-27.5 years South Dakota 3 SFR 166 390 — 390 — 50.4 2014 - 2015 Tennessee 73 SFR 3,609 9,372 771 10,143 860 24.4 2014 - 2015 3-27.5 years Texas 176 SFR 7,192 25,243 2,241 27,485 1,440 25.2 2013 - 2015 3-27.5 years Utah 73 SFR 5,853 13,247 428 13,674 1,332 31.7 2013 - 2015 3-27.5 years Vermont 5 SFR 293 866 1 866 73 108.6 2014 - 2015 3-27.5 years Virginia 86 SFR 4,983 26,715 706 27,421 1,338 28.6 2013 - 2015 3-27.5 years Washington 49 SFR 2,613 10,733 291 11,023 272 33.8 2013 - 2015 3-27.5 years West Virginia 2 SFR 139 475 — 476 20 12.1 2014 - 2015 3-27.5 years Wisconsin 105 SFR 4,097 12,188 450 12,638 1,873 50.3 2014 - 2015 3-27.5 years Wyoming 1 SFR — 275 — 275 66 25.0 2014 - 2014 3-27.5 years Total (2) 6,516 342,044 1,007,868 40,274 1,048,142 61,716 36.4 __________ (1) Weighted average age is based on the age of the property weighted by gross amount at which carried at close of period. (2) The following table sets forth the activity of real estate assets and accumulated depreciation ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Real estate assets: Beginning balance $ 643,974 $ 37,113 $ — Acquisitions through foreclosure 470,221 587,268 31,014 Other acquisitions 118,297 34,104 6,198 Improvements 25,802 16,872 586 Cost of real estate sold (210,152 ) (31,383 ) (685 ) Ending balance (1) $ 1,048,142 $ 643,974 $ 37,113 Accumulated depreciation and reserves for selling costs and impairment: Beginning balance $ 19,367 $ 25 $ — Depreciation expense 6,414 1,067 25 Selling cost and impairment 70,124 21,788 — Real estate sold (34,189 ) (3,513 ) — Ending balance $ 61,716 $ 19,367 $ 25 ___________ (1) The aggregate cost for federal income tax purposes is $1,049.6 million as of December 31, 2015 . |
Schedule IV
Schedule IV | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans on Real Estate | Altisource Asset Management Corporation Schedule IV - Mortgage Loans on Real Estate December 31, 2015 ($ in thousands) Description (Face Value of Loan) Loan Count Interest Rate Maturity Carrying Amount of Mortgages (1) Principal Amount of Loans Subject to Delinquent Principal or Interest $0-49,999 310 2.000% - 15.875% 05/01/2009 - 01/01/2054 $ 11,835 $ 9,040 $50,000-99,999 710 0.000% - 13.600% 06/01/2010 - 04/01/2055 43,369 45,871 $100,000-149,999 1,043 2.000% - 13.600% 10/01/2010 - 04/01/2055 95,719 111,846 $150,000-199,999 978 1.375% - 12.480% 08/01/2010 - 07/01/2055 116,429 148,364 $200,000-249,999 787 1.500% - 12.000% 10/01/2015 - 10/01/2054 115,591 153,693 $250,000+ 1,911 1.000% - 12.375% 03/01/2011 - 06/01/2055 577,591 721,094 Total (2) (3) 5,739 $ 960,534 $ 1,189,908 _____________ (1) The carrying value of an asset is based on our fair value model. 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. The substantial majority of the mortgage loans are significantly delinquent and have varying monthly payment requirements. For a more complete description of the fair value measurements and the factors that may significantly affect the carrying value of our assets, please see Note 6 to our consolidated financial statements. (2) The aggregate cost for federal income tax purposes is $1,200.2 million as of December 31, 2015 . (3) The following table sets forth the activity of mortgage loans ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Mortgage loans Beginning balance $ 1,959,044 $ 1,207,163 $ — Investment in mortgage loans — 1,122,408 1,213,811 Net unrealized gain on mortgage loans 177,545 350,822 61,092 Cost of mortgages sold (174,894 ) (151,624 ) (38,297 ) Mortgage loan payments (24,550 ) (19,299 ) (4,901 ) Real estate tax advances to borrowers 29,261 36,842 6,472 Transfer of mortgage loans to held for sale (535,836 ) — — Transfer of real estate owned to mortgage loans 15,974 8,400 — Transfer of mortgage loans to real estate owned (486,010 ) (595,668 ) (31,014 ) Ending balance $ 960,534 $ 1,959,044 $ 1,207,163 |
Summary of significant accoun23
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Cash equivalents | Cash equivalents We consider highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Consolidations | Consolidations The consolidated financial statements include wholly owned subsidiaries and would include those subsidiaries in which we own a majority voting interest with the ability to control operations of the subsidiaries and where no substantive participating rights or substantive kick out rights have been granted to the noncontrolling interests. Additionally, we consolidate partnerships, joint ventures and limited liability companies when we control the major operating and financial policies of the entity through majority ownership, in our capacity as general partner or managing member or by contract. Lastly, we consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary. While the results of operations of consolidated entities are included in net income in our consolidated financial statements, net income attributable to common stockholders does not include the portion attributable to noncontrolling interests. Additionally, noncontrolling interest in consolidated affiliate is recorded in our consolidated balance sheets and our consolidated statements of equity within the equity section but separate from our equity. |
Comprehensive income | Comprehensive income Because comprehensive income (loss) equals net income (loss), separate statements of comprehensive income (loss) are not presented as part of our consolidated financial statements. |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net income (loss) less amortization of preferred stock issuance costs by the weighted average common stock outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average common stock outstanding for the period plus the dilutive effect of stock options and restricted stock outstanding using the treasury stock method and if converted method, respectively. Weighted average common stock outstanding - basic excludes the impact of unvested restricted stock since dividends paid on such restricted stock are non-participating. |
Fees under the asset managment agreement | Fees under the asset management agreement In accordance with the asset management agreement, we receive compensation from Residential on a quarterly basis for our efforts in the management of Residential's business. We recognize these fees in the fiscal quarter in which they are earned. Refer to Note 9 for details of the fee structure under the asset management agreement. Our revenue and Residential's corresponding expense related to these fees are eliminated in consolidation. |
Fair value of financial instruments | Fair value of financial instruments We designate fair value measurements into three levels based on the lowest level of substantive input used to make the fair value measurement. Those levels are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Income taxes | Income taxes Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to our judgment, we reduce a deferred tax asset by a valuation allowance if it is “more likely than not” that some or the entire deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and we recognize tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. Residential elected REIT status upon the filing of its 2013 income tax return. We believe that Residential has complied with the provisions of the federal income tax code applicable to REITs for each financial year commencing in the year ended December 31, 2013. Accordingly, we believe that Residential will not be subject to federal income tax on the portion of its REIT taxable income that was distributed to its stockholders for such years, nor do we expect Residential to be taxed on future distributions of its REIT taxable income as long as certain asset, income and share ownership tests continue to be met. If Residential fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its REIT taxable income at regular corporate income tax rates. If after electing to be taxed as a REIT, Residential subsequently fails to qualify as a REIT in any taxable year, it generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants relief under certain statutory provisions. Such an event could materially adversely affect Residential’s net income and net cash available for distribution to stockholders. Its taxable REIT subsidiaries would also be subject to federal and state income taxes. |
Mortgage loans at fair value | Mortgage loans at fair value Upon the acquisition of mortgage loans, Residential records the assets at fair value which is the purchase price it paid for the loans on the acquisition date. Mortgage loans are subsequently accounted for at fair value under the fair value option election with unrealized gains and losses recorded in current period earnings. We have concluded that mortgage loans accounted for at fair value timely reflect the results of Residential’s investment performance. We determine the purchase price for Residential’s mortgage loans at the time of acquisition by using a discounted cash flow valuation model and considering alternate loan resolution probabilities including modification, liquidation or conversion to rental property. Observable inputs to the model include current interest rates, loan amounts, status of payments and property types. Unobservable inputs to the model include discount rates, forecast of future home prices, alternate loan resolution probabilities, resolution timelines and the value of underlying properties. After mortgage loans are acquired, the fair value of each loan is adjusted in each subsequent reporting period as the loan proceeds to a particular resolution (i.e., modification, or conversion to real estate owned). As a loan approaches resolution, the resolution timeline for that loan decreases and costs embedded in the discounted cash flow model for loan servicing, foreclosure costs and property insurance are incurred and removed from future expenses. The shorter resolution timelines and reduced future expenses each increase the fair value of the loan. The increase in the value of the loan is recognized in net unrealized gain on mortgage loans in Residential’s, and therefore, our consolidated statements of operations. Residential also recognizes unrealized gains and losses in the fair value of the loans in each reporting period when its mortgage loans are transferred to real estate owned. The transfer to real estate owned occurs when Residential has obtained title to the property through completion of the foreclosure process. The fair value of these assets at the time of transfer to real estate owned is estimated using broker price opinions (“BPOs”). Our capital markets group determines the fair value of mortgage loans monthly and has developed procedures and controls governing the valuation process relating to these assets. The capital markets group reports to Residential’s Investment Committee, which is a committee of Residential’s Chairman, its Chief Executive Officer and its Chief Financial Officer that oversees and approves the valuations. The capital markets group also monitors the valuation model for performance against actual results which is reported to the Investment Committee and used to continuously improve the model. |
Mortgage loans held for sale | Mortgage loans held for sale Mortgage loans held for sale are recorded at the lower of cost or fair value. Residential does not originate loans. Residential's mortgage loans held for sale include the remaining re-performing residential mortgage loans that it initially acquired in June 2014 and certain non-performing loans identified by management for sale. Residential's re-performing loans were initially acquired for investment and had evidence of deteriorated credit quality at the time of acquisition, and the fair value option was not elected for these loans. Therefore, Residential's re-performing loans are accounted for in accordance with the provisions of ASC Topic 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. These re-performing loans were determined to have common risk characteristics and have been accounted for as a single loan pool. Under ASC Topic 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. Residential determines 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. |
Residential properties | Residential properties Purchases of real estate properties are evaluated by Residential to determine whether they meet the definition of an asset acquisition or of a business combination under U.S. GAAP. For asset acquisitions, Residential capitalizes pre-acquisition costs to the extent such costs would have been capitalized had Residential owned the asset when the cost was incurred and capitalizes closing and other direct acquisition costs. Residential then allocates the total cost of the property, including the acquisition costs, between land, building and any identified intangible assets and liabilities (including in-place leases and above and below-market leases). For acquisitions that qualify as business combinations, Residential expenses the acquisition costs in the period in which the costs were incurred and allocates the cost of the property among land, building and any identified intangible assets and liabilities. Lease intangibles are recorded at the estimated fair value, which is the estimated costs that would have been incurred to lease the property net of any above or below-market lease concessions, and are amortized on a straight-line basis over the remaining life of the related lease or, in the case of acquisitions of real estate pools, over the weighted average remaining life of the related pool of leases. Upon the acquisition of real estate through the completion of foreclosure, Residential records the assets at fair value as of the acquisition date as a component of real estate owned based on information obtained from a BPO, a full appraisal or the price given in a current contract of sale of the property. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon management's or other third-party estimates, are often calculated based on the characteristics of the asset, the economic environment and other such factors. Based on professional judgment and knowledge of the particular situation, management determines the appropriate fair value to be utilized for such property. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use. BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. Our results could be materially and adversely affected if the judgments used by a broker prove to be incorrect or inaccurate. Residential has established validation procedures to confirm the values it receives from third party vendors are consistent with its observations of market values. These validation procedures include establishing thresholds to identify changes in value that require further analysis. Residential’s current policies require that it updates the fair value estimate of each financed REO property at least every 180 days by obtaining a new BPO, which is subject to the review processes of its third party vendors. We generally perform further analysis for Residential when the value of the property per the new BPO varies from the old BPO by 25% , or $75,000 per property. If a newly obtained BPO varies from the old BPO by this established threshold, we perform additional procedures to ensure the BPO accurately reflects the current fair value of the property. These procedures include engaging additional third party vendors to compare the old BPOs to the new BPOs and to assist us in evaluating the appropriateness of comparable properties and property-specific characteristics used in Residential’s valuation process. As part of this evaluation, Residential’s third party vendors often discuss the differing BPOs with the providing brokers to ensure that proper comparable properties have been identified. These third party vendors also compare the BPOs to past appraisals, if any, of the property to ensure the BPOs are in line with those appraisals. Following the consideration and reconciliation of the BPOs, the third party provider may provide Residential with a new property value reflecting the analysis they performed or confirm the BPO value received by Residential, in which case Residential uses the new property value or the validated BPO, respectively, for its fair value estimate of the property. After an evaluation period, Residential may perform property renovations to those properties that meet its rental investment criteria in order to optimize its rental proceeds. In some instances, Residential may also perform renovations on REO properties that do not meet its rental investment criteria in order to optimize sale proceeds. Such expenditures are part of Residential's initial investment in a property and, therefore, are classified as investing activities in our consolidated statement of cash flows. Subsequently, residential rental properties, including any renovations that improve or extend the life of the asset, are accounted for at cost. REO properties that do not meet Residential's rental investment criteria and that are held for sale are accounted for at the lower of the carrying value or estimated fair value less cost to sell. The cost basis of residential rental properties is depreciated using the straight-line method over an estimated useful life of three years to 27.5 years based on the nature of the components. Interest and other carrying costs incurred during the renovation period are capitalized until the property is ready for its intended use. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Expenditures directly related to successful leasing efforts, such as lease commissions, are included in deferred leasing and financing costs, net and are stated at amortized cost. Such expenditures are part of Residential's operations and, therefore, are classified as operating activities in our consolidated statement of cash flows. Capitalized leasing costs are amortized on a straight-line basis over the lease term of the respective leases, which generally are from one to two years. Residential properties are classified either as held for use or held for sale. Residential properties are classified as real estate assets held for sale when sale of the assets has been formally approved and is expected to occur in the next twelve months. Residential records residential properties held for sale at the lower of the carrying amount or estimated fair value less costs to sell. The impairment loss, if any, is the amount by which the carrying amount exceeds the estimated fair value less costs to sell. |
Real estate impairment | Real estate impairment With respect to Residential's rental properties classified as held for use, we perform an impairment analysis using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. These cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. If the carrying amount of a held for use asset exceeds the sum of its undiscounted future operating and residual cash flows, an impairment loss is recorded for the difference between estimated fair value of the asset and the carrying amount. Residential generally estimates the fair value of assets held for use by using BPOs. In some instances, appraisal information may be available and is used in addition to BPOs. |
Residential rental revenues | Residential rental revenues Minimum contractual rents from leases are recognized on a straight-line basis over the terms of the leases in residential rental revenues. Therefore, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer takes control of the leased premises. Deferred rents receivable, net represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. Termination fee income is recognized when the customer has vacated the rental property, the amount of the fee is determinable and collectability is reasonably assured. Rents receivable and deferred rents receivable are reduced by an allowance for amounts that become uncollectible. We regularly evaluate the adequacy of our allowance for doubtful accounts. The evaluation takes into consideration the aging of accounts receivable and our analysis of customer personal profile and review past due account balances. Rents receivable and deferred rents receivable are written-off when Residential has deemed that the amounts are uncollectible. |
Restricted cash | Restricted cash Restricted cash represents cash deposits that are legally restricted or held by third parties on Residential’s or our behalf, as applicable, such as escrows and reserves for debt service established pursuant to certain of our repurchase agreements. |
Treasury stock | Treasury Stock We account for repurchased common stock under the cost method and include such treasury stock as a component of total shareholders’ equity. |
Organization and basis of pre24
Organization and basis of presentation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Such revenues and expenses for the years ended December 31, 2015, 2014 and 2013 are presented below ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Fee revenue from Residential 23,716 74,019 10,291 Expenses 25,357 15,318 15,584 |
Real estate assets, net (Tables
Real estate assets, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum rental revenues under leases existing for the 2,118 properties that were leased as of December 31, 2015 are as follows ($ in thousands): 2016 $ 16,661 2017 1,311 2018 159 2019 167 2020 and thereafter — $ 18,298 |
Mortgage loans (Tables)
Mortgage loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgage loans | The following table sets forth the fair value of Residential's mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of December 31, 2015 and December 31, 2014 ($ in thousands): Number of Loans Carrying Value Unpaid Principal Balance Market Value of Underlying Properties December 31, 2015 Current 730 $ 124,595 $ 165,645 $ 177,348 30 80 12,003 18,142 21,858 60 38 5,688 8,088 8,766 90 984 130,784 216,717 196,963 Foreclosure 3,907 687,464 946,962 917,671 Mortgage loans at fair value 5,739 $ 960,534 $ 1,355,554 $ 1,322,606 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 at fair value 10,963 $ 1,959,044 $ 2,935,961 $ 2,693,525 The following table sets forth the carrying value of Residential's mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of December 31, 2015 and December 31, 2014 ($ in thousands): Number of Loans Carrying Value Unpaid Principal Balance Market Value of Underlying Properties December 31, 2015 Current 58 $ 10,864 $ 13,466 $ 17,776 30 26 7,616 10,013 12,200 60 6 668 775 1,063 90 328 73,164 101,121 103,395 Foreclosure 879 $ 225,024 $ 314,991 $ 330,573 Mortgage loans held for sale 1,297 $ 317,336 $ 440,366 $ 465,007 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 |
Certain loans acquired in transfer not accounted for as debt securities acquired during period | The following table presents information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition of June 27, 2014 ($ in thousands): Contractually required principal and interest at the date of acquisition $ 325,000 Non-accretable yield (96,263 ) Expected cash flows to be collected 228,737 Accretable yield (84,728 ) Fair value at the date of acquisition $ 144,009 The following table presents changes in the balance of the accretable yield for the periods indicated: Accretable Yield Year ended December 31, 2015 Year ended December 31, 2014 Balance at the beginning of the period $ 7,640 $ — Acquisitions — 84,728 Loans sold (4,943 ) (74,478 ) Accretion (551 ) (2,610 ) Balance at the end of the period $ 2,146 $ 7,640 |
Fair value of financial instr27
Fair value of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring and nonrecurring | The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of December 31, 2015 and December 31, 2014 ($ in thousands): Level 1 Level 2 Level 3 Quoted Prices in Active Markets Observable Inputs Other Than Level 1 Prices Unobservable Inputs December 31, 2015 Recurring basis (assets) Mortgage loans at fair value $ — $ — $ 960,534 Nonrecurring basis (assets) Real estate assets held for sale — — 250,557 Not recognized on consolidated balance sheets at fair value (assets) Mortgage loans held for sale — — 317,336 Not recognized on consolidated balance sheets at fair value (liabilities) Repurchase agreements at fair value — 767,513 — Other secured borrowings — 502,268 — December 31, 2014 Recurring basis (assets) Mortgage loans at fair value $ — $ — $ 1,959,044 Nonrecurring basis (assets) Real estate assets held for sale — — 96,041 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 — 321,409 — |
Fair value, assets measured on recurring basis, unobservable input reconciliation | The following table sets forth the changes in Residential's level 3 assets that are measured at fair value on a recurring basis ($ in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Mortgage loans at fair value Beginning balance $ 1,959,044 $ 1,207,163 Investment in mortgage loans at fair value — 1,122,408 Net unrealized gain on mortgage loans at fair value 177,545 350,822 Net realized gain on mortgage loans at fair value 58,061 55,766 Transfers of mortgage loans at fair value to mortgage loans held for sale (535,836 ) — Mortgage loans at fair value dispositions and payments (257,505 ) (235,743 ) Real estate tax advances to borrowers 29,261 36,842 Reclassification of realized gains on real estate sold from unrealized gains — 9,054 Transfer of real estate owned to mortgage loans at fair value 15,974 8,400 Transfer of mortgage loans at fair value to real estate owned (486,010 ) (595,668 ) Ending balance at December 31 $ 960,534 $ 1,959,044 Net unrealized gain on mortgage loans at fair value held at the end of the period $ 78,453 $ 222,034 |
Fair value measurements, recurring and nonrecurring, valuation techniques | The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of Residential's mortgage loans as of December 31, 2015 and December 31, 2014 : Input December 31, 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 0.0% to 10.2% -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 5.6 0.1 - 5.3 Value of underlying properties $3,000 - $4,500,000 $3,000 - $5,300,000 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of repurchase agreements | The following table sets forth data with respect to Residential's repurchase and loan agreements as of December 31, 2015 and December 31, 2014 ($ in thousands): Maximum Borrowing Capacity Book Value of Collateral Amount Outstanding Amount of Available Funding December 31, 2015 CS repurchase agreement due April 18, 2016 $ 275,000 $ 335,184 $ 194,346 $ 80,654 Wells repurchase agreement due September 27, 2017 750,000 708,275 371,130 378,870 DB repurchase agreement due March 11, 2016 54,944 130,863 54,944 — Nomura loan agreement due April 8, 2016 200,000 204,578 147,093 52,907 $ 1,279,944 $ 1,378,900 $ 767,513 $ 512,431 December 31, 2014 CS repurchase agreement due April 20, 2015 $ 225,000 $ 332,618 $ 222,044 $ 2,956 Wells repurchase agreement due March 23, 2015 750,000 1,036,409 569,509 180,491 DB repurchase agreement due March 11, 2016 250,000 450,532 223,447 26,553 $ 1,225,000 $ 1,819,559 $ 1,015,000 $ 210,000 The following table sets forth data with respect to these notes as of December 31, 2015 and 2014 ($ in thousands): Interest Rate Amount Outstanding December 31, 2015: ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (1) 3.47 % $ 136,404 ARLP 2014-1 Class M Notes due September 25, 2044 (2) 4.25 % 32,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (3) 3.63 % 244,935 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARLP Securitization Trust, Series 2015-1 ARLP 2015-1 Class A Notes due May 25, 2055 (4) 4.01 % 203,429 ARLP 2015-1 Class M Notes due May 25, 2044 — % 60,000 Intercompany eliminations Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (45,138 ) Elimination of ARLP 2014-2 Class M Notes due to ARLP (234,010 ) 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 ) $ 505,630 December 31, 2014: ARLP Securitization Trust, Series 2014-1 ARLP 2014-1 Class A Notes due September 25, 2044 (1) 3.47 % $ 150,000 ARLP 2014-1 Class M Notes due September 25, 2044 (2) 4.25 % 32,000 ARLP Securitization Trust, Series 2014-2 ARLP 2014-2 Class A Notes due January 26, 2054 (3) 3.85 % 269,820 ARLP 2014-2 Class M Notes due January 26, 2054 — % 234,010 ARNS, Inc. Securities sold under agreement to repurchase due March 27, 2015 5.00 % 14,991 Intercompany eliminations Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc. (15,000 ) Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc. (32,000 ) Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc. (95,729 ) Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc. (234,010 ) $ 324,082 __________________ (1) The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018. (2) The expected redemption date for the Class M Notes is September 25, 2018. (3) The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018. (4) The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019. |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transaction summary Our consolidated statements of operations include the following significant related party transactions for the periods indicated ($ in thousands): Amount Counter- party Location within Consolidated Statements of Operations Year ended December 31, 2015 Base management fee $ 13,935 Residential Net income attributable to noncontrolling interest in consolidated affiliate Conversion fee 1,037 Residential Net income attributable to noncontrolling interest in consolidated affiliate Expense reimbursements 750 Residential Net income attributable to noncontrolling interest in consolidated affiliate Management incentive fee 7,994 Residential Net income attributable to noncontrolling interest in consolidated affiliate Professional fee sharing for negotiation of AMA 2,000 Residential Net income attributable to noncontrolling interest in consolidated affiliate Year ended December 31, 2014 Residential property operating expenses (1) $ 21,612 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 65,363 Ocwen Mortgage loan servicing costs Acquisition fees and costs 1,039 Altisource Related party acquisition fees and costs Office and occupancy costs 349 Ocwen Related party general and administrative expenses Salaries and benefits 2,028 Ocwen/Altisource Related party general and administrative expenses Other general and administrative expenses 2,069 Altisource Related party general and administrative expenses Expense reimbursements 6,070 Residential Net income attributable to noncontrolling interest in consolidated affiliate Management incentive fee 67,949 Residential Net income attributable to noncontrolling interest in consolidated affiliate Year ended December 31, 2013 Residential property operating expenses (1) $ 767 Ocwen/Altisource Residential property operating expenses Mortgage loan servicing costs 9,335 Ocwen Mortgage loan servicing costs Acquisition fees and costs 115 Altisource Related party acquisition fees and costs Office and occupancy costs 256 Ocwen Related party general and administrative expenses Salaries and benefits 1,273 Ocwen/Altisource Related party general and administrative expenses Other general and administrative expenses 2,123 Altisource Related party general and administrative expenses Expense reimbursements 5,411 Residential Net loss (income) attributable to noncontrolling interest in consolidated affiliate Management incentive fee 4,880 Residential Net loss (income) attributable to noncontrolling interest in consolidated affiliate _______________ (1) Residential property operating expenses include costs associated with Residential's ownership and operation of rental properties, including valuation services. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use. |
Incentive compensation and sh30
Incentive compensation and share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, shares reserved for future issuance | The following table sets forth the number of shares of common stock reserved for future issuance: December 31, 2015 Stock options outstanding 181,702 Possible future issuances under equity incentive plan 114,196 295,898 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table sets forth the activity of our outstanding options: Number of Options Weighted Average Exercise Price per Share December 31, 2012 305,824 1.36 Exercised (10,215 ) 1.89 Forfeited or canceled (14,388 ) 5.87 December 31, 2013 281,221 1.11 Exercised (41,685 ) 1.16 Forfeited or canceled (476 ) 1.51 December 31, 2014 239,060 1.10 Exercised (54,261 ) 1.35 Forfeited or canceled (3,097 ) 4.14 December 31, 2015 (1) (2) 181,702 0.98 ______________ (1) The outstanding options as of December 31, 2015 had a weighted average remaining life of 2.9 years with total intrinsic value of $2.9 million . (2) We have 181,211 options exercisable as of December 31, 2015 with a weighted average exercise price of $0.97 , weighted average remaining life of 2.9 years and intrinsic value of $2.9 million . Of these exercisable options, none had exercise prices higher than the market price of our common stock as of December 31, 2015 . |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table sets forth the activity of our restricted stock: Number of Shares Weighted Average Grant Date Fair Value December 31, 2012 205,512 $ 5.90 Granted 32,667 70.16 Vested (1) (660 ) 5.90 Forfeited or canceled (8,765 ) 5.90 December 31, 2013 228,754 15.32 Granted 30,877 697.48 Vested (1) (56,328 ) 16.53 Forfeited or canceled (27,814 ) 294.59 December 31, 2014 175,489 90.51 Granted 53,531 174.34 Vested (1) (51,305 ) 11.53 Forfeited or canceled (23,389 ) 6.65 December 31, 2015 154,326 158.84 _____________ (1) The vesting date fair value of restricted stock that vested during the year ended December 31, 2015 , 2014 and 2013 was $11.6 million , $52.6 million and $0.2 million , respectively. |
Share-based payments, other than stock options, valuation assumptions | The fair value of restricted stock granted was determined using the following assumptions, weighted by number of shares: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Risk Free Interest Rate (1) 2.89% to 3.27% 3.07% to 3.73% 3.18% Common Stock Dividend Yield (2) 0% 0% 0% Expected Volatility (3) 92.04% to 96.46% 74.61% to 82.66% 36.31% _____________ (1) Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted stock grants. (2) At the date of grant, we had no history of dividend payments. (3) Based on the historical volatility of comparable companies, adjusted for our expected additional cash flow volatility. |
Income taxes Tables (Tables)
Income taxes Tables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table sets forth the components of income (loss) before income taxes: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 U.S. Virgin Islands $ (1,249 ) $ 70,670 $ (5,261 ) Other (1,687 ) (8,895 ) (32 ) (Loss) income before income taxes $ (2,936 ) $ 61,775 $ (5,293 ) |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the components of our deferred tax assets: December 31, 2015 December 31, 2014 Deferred tax assets: Stock compensation and other $ 531 $ 339 Accrued expenses 387 172 Real estate and mortgage loan fair value adjustments 1,492 2,981 Other 6 — Net operating loss 21,592 468 24,008 3,960 Deferred tax liability: Depreciation 4 4 24,004 3,956 Valuation allowance (23,100 ) (3,491 ) Deferred tax asset, net $ 904 $ 465 |
Schedule of Effective Income Tax Rate Reconciliation | The following table sets for the reconciliation of the statutory USVI income tax rate to our effective income tax rate: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 U.S. Virgin Islands income tax rate 38.5 % 38.5 % 38.5 % State and local income tax rates 4.7 (0.1 ) — Excluded REIT income 2.6 (27.3 ) (40.5 ) EDC benefits (0.7 ) (8.9 ) 4.8 Rate differential (3.5 ) (2.6 ) (3.9 ) Permanent and other (1.7 ) — — Valuation allowance (40.6 ) 1.2 1.1 Effective income tax rate (0.7 )% 0.8 % — % |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of components of diluted earnings per share | The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts): Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator Net (loss) income $ (3,290 ) $ 59,679 $ (5,293 ) Amortization of preferred stock issuance costs 206 166 — Numerator for basic EPS - (loss) income available to common stockholders (3,496 ) 59,513 (5,293 ) Add back amortization of preferred stock issuance costs — 166 — Numerator for diluted EPS - (loss) income available to common stockholders after assumed conversions $ (3,496 ) $ 59,679 $ (5,293 ) Denominator Weighted average common stock outstanding – basic 2,202,815 2,261,968 2,346,993 Stock options using treasury method — 251,967 — Restricted stock — 160,475 — Preferred shares, if converted — 157,778 — Weighted average common stock outstanding – diluted 2,202,815 2,832,188 2,346,993 (Loss) earnings per basic share $ (1.59 ) $ 26.31 $ (2.26 ) (Loss) earnings per diluted share $ (1.59 ) $ 21.07 $ (2.26 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator (in dollars) Amortization of preferred stock issuance costs $ 206 $ — $ — Denominator (in weighted-average shares) Stock options 222,566 — 286,264 Restricted stock 85,121 — 226,481 Preferred stock, if converted 200,000 — — |
Quarterly financial informati33
Quarterly financial information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of segment reporting | The following tables set forth our quarterly financial information (unaudited, $ in thousands except per share amounts): 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Total revenues $ 88,915 $ 76,519 $ 58,523 $ 24,142 $ 248,099 Net income (loss) 6,888 743 (1,980 ) (8,941 ) (3,290 ) Earnings (loss) per share of common stock – basic: Earnings (loss) per share basic 3.10 0.31 (0.92 ) (4.12 ) (1.59 ) Earnings (loss) per share of common stock – diluted: Earnings (loss) per share diluted 2.50 0.27 (0.92 ) (4.12 ) (1.59 ) 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Total revenues $ 74,628 $ 117,357 $ 109,102 $ 122,211 $ 423,298 Net income 6,828 13,230 17,698 21,923 59,679 Earnings per share of common stock – basic: Earnings per share basic 2.88 5.87 7.91 9.99 26.31 Earnings per share of common stock – diluted: Earnings per share diluted 2.39 4.60 6.25 7.92 21.07 |
Organization and basis of pre34
Organization and basis of presentation (Details) | Dec. 21, 2012 | Sep. 30, 2015USD ($)shares | Oct. 31, 2013USD ($) | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)offering | Jan. 01, 2016USD ($) |
Organization and Basis of Presentation [Line Items] | |||||||||
Term of contract | 15 years | ||||||||
Proceeds from issuance of common stock | $ 833,000 | $ 12,389,000 | $ 935,000 | ||||||
Common stock held by related party | shares | 324,465 | ||||||||
Percentage ownership in noncontrolling interest | 0.58% | ||||||||
Ownership percentage by noncontrolling owners | 99.42% | 99.42% | |||||||
Proceeds from issuance of convertible preferred stock | $ 250,000,000 | ||||||||
Period preferred stock is redeemable after sixth anniversary | 5 years | ||||||||
Redemption price per share | $ / shares | $ 1,000 | ||||||||
Conversion price per share | $ / shares | $ 1,250 | ||||||||
Reduction in assets | $ (2,525,776,000) | (2,760,698,000) | $ (2,525,776,000) | ||||||
Reduction in liabilities | (1,311,865,000) | (1,361,977,000) | (1,311,865,000) | ||||||
Net deficit | 180,861,000 | 177,117,000 | 180,861,000 | ||||||
Reduction in noncontrolling interests of consolidated affiliate | (1,145,639,000) | (1,326,911,000) | $ (1,145,639,000) | ||||||
Expenses | 32,896,000 | 18,346,000 | 16,857,000 | ||||||
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity | Subsequent event | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Reduction in assets | $ 2,400,000,000 | ||||||||
Reduction in liabilities | 1,300,000,000 | ||||||||
Net deficit | 180,900,000 | ||||||||
Reduction in noncontrolling interests of consolidated affiliate | $ 1,100,000,000 | ||||||||
Residential | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Number of public offerings | offering | 3 | ||||||||
Proceeds from issuance of common stock | $ 1,100,000,000 | ||||||||
NewSource Reinsurance Company Ltd. | Common stock | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Amount invested in stock of NewSource | $ 5,000,000 | $ 2,000,000 | |||||||
Percent owned of common stock of NewSource | 100.00% | ||||||||
Pro Forma [Member] | Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Fees revenue from Residential | 23,716,000 | 74,019,000 | 10,291,000 | ||||||
Expenses | $ 25,357,000 | $ 15,318,000 | $ 15,584,000 |
Summary of significant accoun35
Summary of significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |
Frequency fair value estimates updated | 180 days |
Threshold percentage of change in value subject to analysis | 25.00% |
Threshold amount of change in value subject to analysis | $ 75,000 |
Property, Plant and Equipment [Line Items] | |
Authorized amount of stock to repurchase | $ 300,000,000 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property useful life | 3 years |
Term of leases offered to lessees | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property useful life | 27 years 6 months |
Term of leases offered to lessees | 2 years |
Assets acquisitions and dispo36
Assets acquisitions and dispositions (Details) $ in Thousands | Aug. 18, 2015USD ($)loan | Jun. 27, 2014USD ($)loan | Dec. 31, 2015USD ($)loan | Nov. 30, 2015USD ($)loan | Jun. 30, 2015USD ($)loan | Oct. 31, 2014USD ($)loan | Dec. 31, 2015loan | Dec. 31, 2015USD ($)loanproperty | Dec. 31, 2014USD ($)loanproperty | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||||||||
Number of real estate properties directly acquired | 1,314 | 98 | 237 | |||||||
Percentage of rental properties leased | 94.00% | |||||||||
Real estate directly acquired | $ 111,400 | $ 119,977 | $ 34,104 | $ 6,198 | ||||||
Acquisition fees and costs | 600 | $ 2,292 | $ 1,545 | 1,408 | ||||||
Acquired-in-place leases | $ 1,300 | |||||||||
Weighted average useful life | 7 months | |||||||||
Number of real estate properties sold | property | 1,321 | 221 | ||||||||
Net realized gain on real estate | $ 50,932 | $ 9,482 | 0 | |||||||
Net realized gain on mortgage loans | 58,061 | 55,766 | 10,482 | |||||||
Net realized gain on mortgage loans held for sale | $ 14,000 | $ 21,900 | $ 500 | $ 2,800 | 36,432 | 2,771 | 0 | |||
Period of clean pay history | 6 months | |||||||||
Transfer of mortgage loans to real estate owned, net | $ 470,221 | 587,268 | 31,014 | |||||||
Gains Reclassified On Real Estate Owned Sold | $ 6,600 | |||||||||
Loans receivable | Nonperforming financing receivable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of loans acquired | loan | 8,205 | |||||||||
Loans receivable | Residential mortgage | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of mortgage loans liquidated | loan | 306 | 466 | 52 | 934 | ||||||
Number of real estate acquired through foreclosure | loan | 2,443 | 3,682 | ||||||||
Transfer of mortgage loans to real estate owned, net | $ 470,200 | $ 587,300 | ||||||||
Net unrealized gains on mortgage loans | 91,300 | 124,900 | ||||||||
Due diligence costs | $ 400 | $ 3,100 | $ 3,500 | |||||||
Loans receivable | Residential mortgage | Nonperforming financing receivable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of loans acquired | loan | 7,326 | |||||||||
Principal amount of mortgage loans | $ 1,900,000 | |||||||||
Loans acquired during period, aggregate market value | $ 271,100 | 1,800,000 | ||||||||
Aggregate purchase price of loans acquired | $ 1,200,000 | |||||||||
Number of mortgage loans liquidated | loan | 137 | 164 | 590 | 735 | ||||||
Loans receivable | Residential mortgage | Performing financing receivable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of loans acquired | loan | 879 | |||||||||
Aggregate purchase price of loans acquired | $ 144,600 | |||||||||
Number of mortgage loans liquidated | loan | 770 |
Real estate assets, net - Compo
Real estate assets, net - Components of real estate assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($)property | Dec. 31, 2013USD ($) | |
Real Estate [Abstract] | |||
Number of real estate properties held for use | property | 4,933 | 3,349 | |
Number of real estate properties rented | property | 2,118 | 336 | |
Number of real estate properties listed for rent | property | 264 | 197 | |
Number of real estate properties in various stages of renovation | property | 350 | 254 | |
Number of real estate properties under evaluation for rental portfolio | property | 2,201 | 2,562 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
2,016 | $ 16,661 | ||
2,017 | 1,311 | ||
2,018 | 159 | ||
2,019 | 167 | ||
2020 and thereafter | 0 | ||
Total future minimum payments receivable | 18,298 | ||
REO valuation impairment | $ 36,500 | $ 7,900 | $ 0 |
Number of real estate properties held for sale | property | 1,583 | 611 | |
Real estate assets held for sale | $ 250,557 | $ 92,230 | |
Minimum | |||
Real Estate Properties [Line Items] | |||
Term of leases offered to lessees | 1 year | ||
Maximum | |||
Real Estate Properties [Line Items] | |||
Term of leases offered to lessees | 2 years |
Mortgage loans - Schedule of Lo
Mortgage loans - Schedule of Loans (Details) - Loans receivable - Residential mortgage - Residential portfolio segment $ in Thousands | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan |
Number of loans | ||
Current | loan | 58 | 68 |
Foreclosure | loan | 879 | |
Mortgage loans | loan | 1,297 | 102 |
Carrying value | ||
Current | $ 10,864 | $ 8,317 |
Foreclosure | 225,024 | |
Mortgage loans at fair value | 317,336 | 12,535 |
Unpaid principal balance | ||
Current | 13,466 | 11,938 |
Foreclosure | 314,991 | |
Mortgage loans | 440,366 | 18,398 |
Market value of underlying properties | ||
Current | 17,776 | 15,154 |
Foreclosure | 330,573 | |
Mortgage loans | $ 465,007 | $ 22,452 |
Nonperforming financing receivable | ||
Number of loans | ||
Current | loan | 730 | 670 |
Foreclosure | loan | 3,907 | 7,841 |
Mortgage loans | loan | 5,739 | 10,963 |
Carrying value | ||
Current | $ 124,595 | $ 107,467 |
Foreclosure | 687,464 | 1,466,798 |
Mortgage loans at fair value | 960,534 | 1,959,044 |
Unpaid principal balance | ||
Current | 165,645 | 159,731 |
Foreclosure | 946,962 | 2,172,047 |
Mortgage loans | 1,355,554 | 2,935,961 |
Market value of underlying properties | ||
Current | 177,348 | 160,654 |
Foreclosure | 917,671 | 1,951,606 |
Mortgage loans | $ 1,322,606 | $ 2,693,525 |
30 | ||
Number of loans | ||
Past Due | loan | 26 | 6 |
Carrying value | ||
Past Due | $ 7,616 | $ 1,118 |
Unpaid principal balance | ||
Past Due | 10,013 | 1,667 |
Market value of underlying properties | ||
Past Due | $ 12,200 | $ 2,004 |
30 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 80 | 109 |
Carrying value | ||
Past Due | $ 12,003 | $ 15,424 |
Unpaid principal balance | ||
Past Due | 18,142 | 22,629 |
Market value of underlying properties | ||
Past Due | $ 21,858 | $ 24,046 |
60 | ||
Number of loans | ||
Past Due | loan | 6 | 4 |
Carrying value | ||
Past Due | $ 668 | $ 359 |
Unpaid principal balance | ||
Past Due | 775 | 644 |
Market value of underlying properties | ||
Past Due | $ 1,063 | $ 670 |
60 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 38 | 57 |
Carrying value | ||
Past Due | $ 5,688 | $ 7,921 |
Unpaid principal balance | ||
Past Due | 8,088 | 11,624 |
Market value of underlying properties | ||
Past Due | $ 8,766 | $ 12,510 |
90 | ||
Number of loans | ||
Past Due | loan | 328 | 24 |
Carrying value | ||
Past Due | $ 73,164 | $ 2,741 |
Unpaid principal balance | ||
Past Due | 101,121 | 4,149 |
Market value of underlying properties | ||
Past Due | $ 103,395 | $ 4,624 |
90 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 984 | 2,286 |
Carrying value | ||
Past Due | $ 130,784 | $ 361,434 |
Unpaid principal balance | ||
Past Due | 216,717 | 569,930 |
Market value of underlying properties | ||
Past Due | $ 196,963 | $ 544,709 |
Mortgage loans - Narrative (Det
Mortgage loans - Narrative (Details) $ in Thousands | Jan. 19, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Nov. 30, 2015loan | Jun. 30, 2015loan | Oct. 31, 2014loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Mortgage Loans on Real Estate [Line Items] | ||||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Accretion | $ 600 | |||||||
Amount accreted into interest | 551 | $ 2,610 | $ 0 | |||||
Mortgage loans held for sale (from consolidated VIE) | $ 317,336 | 317,336 | 12,535 | |||||
Residential mortgage | Loans receivable | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of mortgage loans liquidated | loan | 306 | 466 | 52 | 934 | ||||
Residential mortgage | Loans receivable | Subsequent event | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of mortgage loans liquidated | loan | 1,266 | |||||||
Mortgage loans sold aggregate UPB | $ 434,300 | |||||||
Mortgage loans sold UPB as a percentage of loan portfolio | 24.00% | |||||||
Performing financing receivable | Residential mortgage | Loans receivable | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of mortgage loans liquidated | loan | 770 | |||||||
Unpaid principal balance | $ 6,000 | 6,000 | 18,400 | |||||
Mortgage loans held for sale (from consolidated VIE) | $ 4,000 | $ 4,000 | $ 12,500 |
Mortgage loans - Certain Loans
Mortgage loans - Certain Loans Acquired Not Accounted For As Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 27, 2014 | |
Mortgage Loans on Real Estate [Abstract] | ||||||
Mortgage loans held for sale (from consolidated VIE) | $ 317,336 | $ 12,535 | ||||
Contractually required principal and interest at the date of acquisition | $ 325,000 | |||||
Non-accretable yield | (96,263) | |||||
Expected cash flows to be collected | 228,737 | |||||
Accretable yield | $ (7,640) | $ 0 | $ 0 | $ (2,146) | $ (7,640) | (84,728) |
Fair value at the date of acquisition | $ 144,009 | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||||
Accretable yield, beginning balance | 7,640 | 0 | ||||
Acquisitions | 0 | 84,728 | ||||
Loans sold | (4,943) | (74,478) | ||||
Accretion | (551) | (2,610) | 0 | |||
Accretable yield, ending balance | $ 2,146 | $ 7,640 | $ 0 |
Fair value of financial instr41
Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Level 1, Quoted prices in active markets | ||
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 | 0 | 0 |
Secured Debt, Fair Value Disclosure | 0 | 0 |
Level 2, Observable inputs other than Level 1 prices | ||
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 | 767,513 | 1,015,000 |
Secured Debt, Fair Value Disclosure | 502,268 | 321,409 |
Level 3, Unobservable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 317,336 | 12,535 |
Repurchase agreements at fair value | 0 | 0 |
Secured Debt, Fair Value Disclosure | 0 | 0 |
Fair value measurements, recurring | Level 1, Quoted prices in active markets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Fair value measurements, recurring | Level 2, Observable inputs other than Level 1 prices | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 0 | 0 |
Fair value measurements, recurring | Level 3, Unobservable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 960,534 | 1,959,044 |
Fair value measurements, nonrecurring | Level 1, Quoted prices in active markets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets held for sale | 0 | 0 |
Fair value measurements, nonrecurring | Level 2, Observable inputs other than Level 1 prices | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets held for sale | 0 | 0 |
Fair value measurements, nonrecurring | Level 3, Unobservable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets held for sale | $ 250,557 | $ 96,041 |
Fair value of financial instr42
Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Transfers of mortgage loans at fair value to mortgage loans held for sale | $ (535,836) | $ 0 | $ 0 |
Residential mortgage | Level 3, Unobservable inputs | Loans receivable | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 1,959,044 | 1,207,163 | |
Investment in mortgage loans at fair value | 0 | 1,122,408 | |
Net unrealized gain on mortgage loans at fair value | 177,545 | 350,822 | |
Net realized gain on mortgage loans at fair value | 58,061 | 55,766 | |
Transfers of mortgage loans at fair value to mortgage loans held for sale | (535,836) | 0 | 0 |
Mortgage loans at fair value dispositions and payments | (257,505) | (235,743) | |
Real estate tax advances to borrowers | 29,261 | 36,842 | |
Reclassification Of Realized Gains On Real Estate Sold From Unrealized Gains | 0 | 9,054 | |
Transfer of real estate owned to mortgage loans | 15,974 | 8,400 | |
Transfer of mortgage loans at fair value to real estate owned | (486,010) | (595,668) | |
Ending balance at December 31 | 960,534 | 1,959,044 | $ 1,207,163 |
Net unrealized gain on mortgage loans at fair value held at the end of the period | $ 78,453 | $ 222,034 |
Fair value of financial instr43
Fair value of financial instruments - Fair value by delinquency (Details) - Residential portfolio segment - Loans receivable - Residential mortgage $ in Thousands | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan |
Number of loans | ||
Current | loan | 58 | 68 |
Foreclosure | loan | 879 | |
Mortgage loans | loan | 1,297 | 102 |
Carrying Value | ||
Current | $ 10,864 | $ 8,317 |
Foreclosure | 225,024 | |
Mortgage loans | 317,336 | 12,535 |
Unpaid principal balance | ||
Current | 13,466 | 11,938 |
Foreclosure | 314,991 | |
Mortgage loans | 440,366 | 18,398 |
Market value of underlying properties | ||
Current | 17,776 | 15,154 |
Foreclosure | 330,573 | |
Mortgage loans | $ 465,007 | $ 22,452 |
Nonperforming financing receivable | ||
Number of loans | ||
Current | loan | 730 | 670 |
Foreclosure | loan | 3,907 | 7,841 |
Mortgage loans | loan | 5,739 | 10,963 |
Carrying Value | ||
Current | $ 124,595 | $ 107,467 |
Foreclosure | 687,464 | 1,466,798 |
Mortgage loans | 960,534 | 1,959,044 |
Unpaid principal balance | ||
Current | 165,645 | 159,731 |
Foreclosure | 946,962 | 2,172,047 |
Mortgage loans | 1,355,554 | 2,935,961 |
Market value of underlying properties | ||
Current | 177,348 | 160,654 |
Foreclosure | 917,671 | 1,951,606 |
Mortgage loans | $ 1,322,606 | $ 2,693,525 |
30 | ||
Number of loans | ||
Past Due | loan | 26 | 6 |
Carrying Value | ||
Past Due | $ 7,616 | $ 1,118 |
Unpaid principal balance | ||
Past Due | 10,013 | 1,667 |
Market value of underlying properties | ||
Past Due | $ 12,200 | $ 2,004 |
30 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 80 | 109 |
Carrying Value | ||
Past Due | $ 12,003 | $ 15,424 |
Unpaid principal balance | ||
Past Due | 18,142 | 22,629 |
Market value of underlying properties | ||
Past Due | $ 21,858 | $ 24,046 |
60 | ||
Number of loans | ||
Past Due | loan | 6 | 4 |
Carrying Value | ||
Past Due | $ 668 | $ 359 |
Unpaid principal balance | ||
Past Due | 775 | 644 |
Market value of underlying properties | ||
Past Due | $ 1,063 | $ 670 |
60 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 38 | 57 |
Carrying Value | ||
Past Due | $ 5,688 | $ 7,921 |
Unpaid principal balance | ||
Past Due | 8,088 | 11,624 |
Market value of underlying properties | ||
Past Due | $ 8,766 | $ 12,510 |
90 | ||
Number of loans | ||
Past Due | loan | 328 | 24 |
Carrying Value | ||
Past Due | $ 73,164 | $ 2,741 |
Unpaid principal balance | ||
Past Due | 101,121 | 4,149 |
Market value of underlying properties | ||
Past Due | $ 103,395 | $ 4,624 |
90 | Nonperforming financing receivable | ||
Number of loans | ||
Past Due | loan | 984 | 2,286 |
Carrying Value | ||
Past Due | $ 130,784 | $ 361,434 |
Unpaid principal balance | ||
Past Due | 216,717 | 569,930 |
Market value of underlying properties | ||
Past Due | $ 196,963 | $ 544,709 |
Fair value of financial instr44
Fair value of financial instruments - Fair value inputs, quantitative information (Details) - Residential mortgage - Loans receivable - Level 3, Unobservable inputs - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value inputs, assets, quantitative information [Line Items] | ||
Equity discount rate | 15.00% | 15.00% |
Fair Value Inputs, Debt to Asset Ratio | 65.00% | 65.00% |
Fair Value Inputs, Interest Rate Over the Reference Rate | 3.50% | 3.50% |
Fair Value Inputs, Reference Rate | 1 month LIBOR | 1 month LIBOR |
Minimum | ||
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 6 days | 1 month 6 days |
Value of underlying properties | $ 3,000 | $ 3,000 |
Maximum | ||
Fair value inputs, assets, quantitative information [Line Items] | ||
Annual change in home pricing index | 10.20% | 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 7 months 6 days | 5 years 3 months 18 days |
Value of underlying properties | $ 4,500,000 | $ 5,300,000 |
Borrowings - Repurchase Agreeme
Borrowings - Repurchase Agreements (Details) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)agreement | May. 12, 2015USD ($) | Apr. 10, 2015USD ($) | Dec. 31, 2013USD ($) | Sep. 23, 2013USD ($) | Mar. 22, 2013USD ($) |
Debt [Line Items] | ||||||||
Number of repurchase agreements | agreement | 3 | |||||||
Amount Outstanding | $ 1,015,000,000 | $ 767,513,000 | ||||||
Secured debt | ||||||||
Debt [Line Items] | ||||||||
Interest rate on debt | 3.35% | |||||||
Secured debt | Residential | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 1,225,000,000 | $ 1,300,000,000 | ||||||
Book Value of Collateral | 1,819,559,000 | 1,378,900,000 | ||||||
Amount Outstanding | 1,015,000,000 | 767,513,000 | ||||||
Amount of Available Funding | $ 210,000,000 | 512,431,000 | ||||||
Secured debt | CS repurchase agreement | ||||||||
Debt [Line Items] | ||||||||
Term for extension option | 1 year | |||||||
Maximum Borrowing Capacity | $ 225,000,000 | 275,000,000 | $ 100,000,000 | |||||
Secured debt | CS repurchase agreement | Residential | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 225,000,000 | 275,000,000 | ||||||
Book Value of Collateral | 332,618,000 | 335,184,000 | ||||||
Amount Outstanding | 222,044,000 | 194,346,000 | ||||||
Amount of Available Funding | 2,956,000 | 80,654,000 | ||||||
Secured debt | CS repurchase agreement | ARLP 2014-1 | ||||||||
Debt [Line Items] | ||||||||
Secured debt | 19,800,000 | |||||||
Secured debt | CS repurchase agreement | ARLP 2014-2 | ||||||||
Debt [Line Items] | ||||||||
Secured debt | 29,200,000 | |||||||
Secured debt | CS repurchase agreement | ARLP 2015-1 | ||||||||
Debt [Line Items] | ||||||||
Secured debt | 21,000,000 | |||||||
Secured debt | DB repurchase agreement | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 54,944,000 | |||||||
Secured debt | DB repurchase agreement | Residential | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 250,000,000 | 54,944,000 | ||||||
Book Value of Collateral | 450,532,000 | 130,863,000 | ||||||
Amount Outstanding | 223,447,000 | 54,944,000 | ||||||
Amount of Available Funding | 26,553,000 | 0 | ||||||
Secured debt | Wells Fargo Repurchase Agreement | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | $ 750,000,000 | 750,000,000 | $ 1,000,000,000 | $ 200,000,000 | ||||
Secured debt | Wells Fargo Repurchase Agreement | Residential | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 750,000,000 | 750,000,000 | ||||||
Book Value of Collateral | 1,036,409,000 | 708,275,000 | ||||||
Amount Outstanding | 569,509,000 | 371,130,000 | ||||||
Amount of Available Funding | $ 180,491,000 | 378,870,000 | ||||||
Secured debt | Nomura loan and security agreement | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | $ 200,000,000 | $ 100,000,000 | ||||||
Secured debt | Nomura loan and security agreement | Residential | ||||||||
Debt [Line Items] | ||||||||
Maximum Borrowing Capacity | 200,000,000 | |||||||
Book Value of Collateral | 204,578,000 | |||||||
Amount Outstanding | 147,093,000 | |||||||
Amount of Available Funding | 52,907,000 | |||||||
Real estate | Secured debt | Wells Fargo Repurchase Agreement | ||||||||
Debt [Line Items] | ||||||||
Maximum borrowing capacity sublimit percentage | 40.00% | 10.00% | ||||||
Maximum Borrowing Capacity | $ 300,000,000 | |||||||
Asset-backed securities | Secured debt | ARLP 2014-1 | ||||||||
Debt [Line Items] | ||||||||
Amount of collateral securing debt | 32,000,000 | |||||||
Asset-backed securities | Secured debt | ARLP 2014-2 | ||||||||
Debt [Line Items] | ||||||||
Amount of collateral securing debt | 45,100,000 | |||||||
Asset-backed securities | Secured debt | ARLP 2015-1 | ||||||||
Debt [Line Items] | ||||||||
Amount of collateral securing debt | $ 34,000,000 |
Borrowings - Other Secured Debt
Borrowings - Other Secured Debt (Details) - USD ($) | Dec. 31, 2015 | Jun. 29, 2015 | Feb. 09, 2015 | Dec. 31, 2014 | Dec. 28, 2014 | Nov. 25, 2014 | Sep. 30, 2014 | Sep. 25, 2014 |
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 505,630,000 | $ 324,082,000 | ||||||
Securities sold under agreements to repurchase | 14,991,000 | $ 15,000,000 | ||||||
Asset-backed Securities Class A Notes 2015-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 136,404,000 | $ 205,000,000 | ||||||
Interest rate on debt | 3.47% | 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 debt | $ 32,000,000 | $ 60,000,000 | ||||||
Interest rate on debt | 4.25% | |||||||
Secured debt issued to affiliates | $ (60,000,000) | |||||||
ARLP 2014-2 Class A Notes due January 26, 2054 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 244,935,000 | $ 50,700,000 | $ 269,820,000 | $ 270,800,000 | ||||
Interest rate on debt | 3.63% | 3.85% | 3.85% | |||||
Secured debt issued to affiliates | $ (45,138,000) | $ (95,729,000) | $ (95,800,000) | |||||
ARLP 2014-2 Class M Notes due January 26, 2054 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 234,010,000 | $ 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) | ||||||
ARLP 2014-1 Class A Notes due September 25, 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 203,429,000 | $ 150,000,000 | $ 150,000,000 | |||||
Interest rate on debt | 4.01% | 3.47% | 3.47% | |||||
Secured debt issued to affiliates | $ (15,000,000) | |||||||
ARLP 2014-1 Class M Notes due September 25, 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Other secured debt | $ 60,000,000 | $ 32,000,000 | $ 32,000,000 | |||||
Interest rate on debt | 0.00% | 4.25% | 4.25% | |||||
Secured debt issued to affiliates | $ (32,000,000) | $ (32,000,000) | ||||||
Securities sold under agreement to repurchase due March 27, 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | |||||||
ARLP 2015-1 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of underlying securitized assets | 282,100,000 | |||||||
ARLP 2014-2 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of underlying securitized assets | 322,500,000 | |||||||
ARLP 2014-1 | Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Book value of underlying securitized assets | $ 202,300,000 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Millions | Nov. 09, 2015USD ($) |
Settled litigation | Police Retirement System of St. Louis v. Erbey, et al. | |
Other Commitments [Line Items] | |
Attorney fees and expenses of plaintiff's counsel | $ 6 |
Related-party transactions - Na
Related-party transactions - Narrative (Details) | Apr. 01, 2015 | Mar. 31, 2015property | Nov. 15, 2013 | Dec. 21, 2012$ / shares | Sep. 30, 2015shares | Dec. 31, 2015USD ($)ft²serviceremployee | Dec. 31, 2014USD ($) | Mar. 31, 2016 | Dec. 28, 2014 | Sep. 30, 2014USD ($) |
Related party transactions [Line Items] | ||||||||||
Addition to base rent under operating lease, percent of lease-related operating expenses and leasehold improvements | 50.00% | |||||||||
Securities sold under agreements to repurchase | $ | $ 14,991,000 | $ 15,000,000 | ||||||||
Loans acquired from related party, aggregate purchase price | $ | 64,000,000 | |||||||||
Maturity Term, Securities, US Treasury | 10 years | |||||||||
Common stock held by related party | shares | 324,465 | |||||||||
Percentage ownership in noncontrolling interest | 0.58% | |||||||||
Mortgage Loans On Real Estate, Number Of Mortgage Servicers, Additions | servicer | 2 | |||||||||
Securities sold under agreement to repurchase due March 27, 2015 | ||||||||||
Related party transactions [Line Items] | ||||||||||
Securities sold under agreement to repurchase, interest rate | 5.00% | |||||||||
Acquisition of nonperforming loans | Mortgage loans on real estate, Pool one | Loans receivable | Residential mortgage | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Loans acquired from related party, aggregate collateral fair value | $ | $ 94,000,000 | |||||||||
Affiliated entity | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Base Management Fee, Percent of Qualified Average Invested Capital | 1.50% | |||||||||
Related Party Transaction, Incentive Management Fee, Return on Invested Capital | 1.75% | |||||||||
Related Party Transaction, Conversion Fee, Percent of Market Value of New Rental Properties | 1.50% | |||||||||
Related Party Transaction, Incentive Management Fee, Percent of Incentive Fee Payable in Common Stock | 25.00% | |||||||||
Related Party Transaction, Incentive Management Fee, Deficit of Return on Invested Capital | 10.77% | |||||||||
Affiliated entity | Asset management agreement | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Contract term | 15 years | |||||||||
Automatic renewal term | 5 years | |||||||||
Affiliated entity | Scaling contract, threshold one | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Percent of Average Invested Capital | 25.00% | |||||||||
Related Party Transaction, Base Management Fee, Number Of Rental Properties Cap | property | 2,500 | |||||||||
Related Party Transaction, Incentive Management Fee, Percent of Invested Capital in Excess of Threshold | 20.00% | |||||||||
Affiliated entity | Scaling contract, threshold one | Altisource Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Incentive management fee, percent of available cash | 2.00% | |||||||||
Incentive management fee, available cash per share threshold | $ / shares | $ 0.161 | |||||||||
Affiliated entity | Scaling contract, threshold two | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Percent of Average Invested Capital | 1.75% | |||||||||
Related Party Transaction, Base Management Fee, Number Of Rental Properties Floor | property | 2,500 | |||||||||
Related Party Transaction, Incentive Management Fee, Number of Rental Properties Cap | property | 4,499 | |||||||||
Related Party Transaction, Incentive Management Fee, Number Of Rental Properties Floor | property | 2,500 | |||||||||
Related Party Transaction, Incentive Management Fee, Percent of Invested Capital in Excess of Threshold | 22.50% | |||||||||
Affiliated entity | Scaling contract, threshold two | Altisource Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Incentive management fee, percent of available cash | 15.00% | |||||||||
Incentive management fee, available cash per share threshold | $ / shares | $ 0.193 | |||||||||
Affiliated entity | Scaling contract, threshold three | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Percent of Average Invested Capital | 2.00% | |||||||||
Related Party Transaction, Incentive Management Fee, Number Of Rental Properties Floor | property | 4,500 | |||||||||
Related Party Transaction, Incentive Management Fee, Percent of Invested Capital in Excess of Threshold | 25.00% | |||||||||
Affiliated entity | Scaling contract, threshold three | Altisource Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Incentive management fee, percent of available cash | 25.00% | |||||||||
Incentive management fee, available cash per share threshold | $ / shares | $ 0.257 | |||||||||
Affiliated entity | Scaling contract, threshold four | Altisource Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Incentive management fee, percent of available cash | 50.00% | |||||||||
Affiliated entity | Support services agreement | Altisource | ||||||||||
Related party transactions [Line Items] | ||||||||||
Automatic renewal term | 2 years | |||||||||
Number of dedicated employees provided | employee | 31 | |||||||||
Termination period if asset management agreement terminates | 30 days | |||||||||
Affiliated entity | Support services agreement | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Nonrenewal notice notification period | 30 days | |||||||||
Affiliated entity | Trademark license agreement | Altisource | ||||||||||
Related party transactions [Line Items] | ||||||||||
Nonrenewal notice notification period | 30 days | |||||||||
Termination period if asset management agreement terminates | 30 days | |||||||||
Affiliated entity | Master services agreement | Altisource | Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Contract term | 15 years | |||||||||
Automatic renewal term | 2 years | |||||||||
Nonrenewal notice notification period | 9 months | |||||||||
Affiliated entity | Aircraft time sharing agreement | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Percentage of expenses to be paid for use of aircraft | 100.00% | |||||||||
Affiliated entity | Operating Lease Agreement | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Area of lease | ft² | 2,000 | |||||||||
Addition to base rent under operating lease, percent of lease-related operating expenses and leasehold improvements | 50.00% | |||||||||
Affiliated entity | Lease agreement, through June 2014 | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Base rent under operating lease | $ | $ 40,000 | |||||||||
Affiliated entity | Lease agreement, after June 2014 | Ocwen | ||||||||||
Related party transactions [Line Items] | ||||||||||
Base rent under operating lease | $ | $ 45,000 | |||||||||
Affiliated entity | Servicing agreement | Ocwen | Residential | ||||||||||
Related party transactions [Line Items] | ||||||||||
Contract term | 15 years | |||||||||
Nonrenewal notice notification period | 30 days | |||||||||
Minimum | Affiliated entity | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Return on Invested Capital | 7.00% | |||||||||
Maximum | Affiliated entity | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Return on Invested Capital | 8.25% | |||||||||
Scenario, Forecast [Member] | Affiliated entity | Altisource Asset Management Corporation [Member] | ||||||||||
Related party transactions [Line Items] | ||||||||||
Related Party Transaction, Incentive Management Fee, Cumulative Deficit of Return on Invested Capital | 12.52% |
Related-party transactions - Re
Related-party transactions - Related party expenses (Details) - Affiliated entity - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Base management fee | Residential and NewSource | Net income (loss) attributable to noncontrolling interest in consolidated affiliate | |||
Related party transactions [Line Items] | |||
Related party expenses | $ 13,935 | ||
Conversion fee | Ocwen/Altisource | Net income (loss) attributable to noncontrolling interest in consolidated affiliate | |||
Related party transactions [Line Items] | |||
Related party expenses | 1,037 | ||
Expense reimbursement | Residential | Net income (loss) attributable to noncontrolling interest in consolidated affiliate | |||
Related party transactions [Line Items] | |||
Related party expenses | 750 | $ 6,070 | $ 5,411 |
Management incentive fee | Residential | Net income (loss) attributable to noncontrolling interest in consolidated affiliate | |||
Related party transactions [Line Items] | |||
Related party expenses | 7,994 | 67,949 | 4,880 |
Professional fee | Residential | Net income (loss) attributable to noncontrolling interest in consolidated affiliate | |||
Related party transactions [Line Items] | |||
Related party expenses | $ 2,000 | ||
Residential property operating expenses | Ocwen/Altisource | Residential property operating expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | 767 | ||
Residential property operating expenses | Ocwen/Altisource | Residential property operating expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | 21,612 | ||
Mortgage loan servicing costs | Ocwen | Mortgage loan servicing costs | |||
Related party transactions [Line Items] | |||
Related party expenses | 65,363 | 9,335 | |
Due diligence and unsuccessful deal costs | Altisource | Related party general and administrative expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | 1,039 | 115 | |
Office and occupancy costs | Ocwen | Related party general and administrative expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | 349 | 256 | |
Salaries and benefits | Ocwen/Altisource | Related party general and administrative expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | 2,028 | 1,273 | |
Other general and administrative | Altisource | Related party general and administrative expenses | |||
Related party transactions [Line Items] | |||
Related party expenses | $ 2,069 | $ 2,123 |
Incentive compensation and sh50
Incentive compensation and share-based payments - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)employeeshares | Dec. 31, 2014USD ($) | |
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Scorecard weighting | 80.00% | |
Personal evaluation weighting | 20.00% | |
Percentage of outstanding shares that may be issued | 15.00% | |
Unrecognized stock compensation | $ 18,700 | $ 21,100 |
Weighted average remaining amortization period of unamortized share based compensation | 2 years 11 months | 3 years |
Employee | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Unvested shares | shares | 74,307 | |
Number of employees having modified unvested shares | employee | 3 | |
Unrecognized stock compensation | $ 59 | |
Weighted average remaining amortization period of unamortized share based compensation | 2 years 7 months | |
Maximum | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Non-equity incentive compensation percentage | 150.00% | |
Minimum | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Non-equity incentive compensation percentage | 0.00% |
Incentive compensation and sh51
Incentive compensation and share-based payments - Schedule of shares reserved for future issuance (Details) | Dec. 31, 2015shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options outstanding | 181,702 |
Possible future issuance under director compensation plan | 114,196 |
Common stock reserved for future issuance | 295,898 |
Common stock, shares available to be issued under charter | 2,951,777 |
Incentive compensation and sh52
Incentive compensation and share-based payments - Schedule of stock option activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of options | |||
Ending balance | 181,702 | ||
2012 Conversion Option Plan and 2012 Special Conversion Option Plan | Stock option | |||
Number of options | |||
Beginning balance | 239,060 | 281,221 | 305,824 |
Exercised | (54,261) | (41,685) | (10,215) |
Forfeited or canceled | (3,097) | (476) | (14,388) |
Ending balance | 181,702 | 239,060 | 281,221 |
Weighted average exercise price per share | |||
Beginning balance | $ 1.10 | $ 1.11 | $ 1.36 |
Exercised | 1.35 | 1.16 | 1.89 |
Forfeited and canceled | 4.14 | 1.51 | 5.87 |
Ending balance | $ 0.98 | $ 1.10 | $ 1.11 |
Weighted average remaining life of options | 2 years 11 months | ||
Total intrinsic value of options | $ 2.9 | ||
Number of exercisable options | 181,211 | ||
Weighted average exercise price of exercisable options | $ 0.97 | ||
Weighted average remaining life of exercisable options | 2 years 11 months | ||
Intrinsic value of exercisable options | $ 2.9 |
Incentive compensation and sh53
Incentive compensation and share-based payments - Share-based payments, restricted stock activity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Value of restricted stock granted to directors annually | $ 60,000 | |||
Restricted stock, service period | 1 year | |||
Director attendance requirement | 75.00% | |||
Share-based compensation expense | $ 6,900,000 | $ 1,300,000 | ||
Unamortized stock compensation | $ 18,700,000 | $ 21,100,000 | ||
Weighted average remaining amortization period of unamortized share based compensation | 2 years 11 months | 3 years | ||
Tranche one | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Percentage of restricted stock grant | 25.00% | |||
Compound annual gain percentage, common stock | 20.00% | |||
Market value, common stock | $ 250,000,000 | |||
Tranche two | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Percentage of restricted stock grant | 50.00% | |||
Compound annual gain percentage, common stock | 22.50% | |||
Market value, common stock | 500,000,000 | |||
Tranche three | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Percentage of restricted stock grant | 25.00% | |||
Compound annual gain percentage, common stock | 25.00% | |||
Market value, common stock | $ 750,000,000 | |||
Vesting tranche one | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting tranche two | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Annual vesting percentage | 75.00% | |||
Market based restricted stock | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Number of shares granted | 52,409 | 30,663 | ||
Weighted average grant date fair value of grants in period | $ 174.59 | $ 695.78 | ||
Number of shares | ||||
Granted | 52,409 | 30,663 | ||
Weighted average grant date fair value | ||||
Granted | $ 174.59 | $ 695.78 | ||
Time based restricted stock | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Number of shares granted | 1,122 | 214 | ||
Weighted average grant date fair value of grants in period | $ 162.66 | $ 940.32 | ||
Number of shares | ||||
Granted | 1,122 | 214 | ||
Weighted average grant date fair value | ||||
Granted | $ 162.66 | $ 940.32 | ||
Director compensation plan | Time based restricted stock | ||||
Share-based compensation arrangement by share-based payment award [Line Items] | ||||
Number of shares granted | 53,531 | 30,877 | 32,667 | |
Weighted average grant date fair value of grants in period | $ 174.34 | $ 697.48 | $ 70.16 | |
Number of shares | ||||
Beginning balance | 175,489 | 228,754 | 205,512 | |
Granted | 53,531 | 30,877 | 32,667 | |
Vested | (51,305) | (56,328) | (660) | |
Forfeited and canceled | (23,389) | (27,814) | (8,765) | |
Ending balance | 154,326 | 175,489 | 228,754 | |
Weighted average grant date fair value | ||||
Beginning balance | $ 158.84 | $ 90.51 | $ 15.32 | $ 5.90 |
Granted | 174.34 | 697.48 | 70.16 | |
Vested | 11.53 | 16.53 | 5.90 | |
Forfeited and canceled | 6.65 | 294.59 | 5.90 | |
Ending balance | $ 158.84 | $ 90.51 | $ 15.32 | $ 5.90 |
Vesting date fair value of restricted stock that vested | $ 11,600,000 | $ 52,600,000 | $ 200,000 |
Incentive compensation and sh54
Incentive compensation and share-based payments - Share-based payments, other than stock options, valuation assumptions (Details) - Employee | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of share-based payment, other than stock options, valuation assumptions [Line Items] | |||
Risk Free Interest Rate | 3.18% | ||
Common Stock Dividend Yield | 0.00% | 0.00% | 0.00% |
Expected Volatility | 36.31% | ||
Minimum | |||
Schedule of share-based payment, other than stock options, valuation assumptions [Line Items] | |||
Risk Free Interest Rate | 2.89% | 3.07% | |
Expected Volatility | 92.04% | 74.61% | |
Maximum | |||
Schedule of share-based payment, other than stock options, valuation assumptions [Line Items] | |||
Risk Free Interest Rate | 3.27% | 3.73% | |
Expected Volatility | 96.46% | 82.66% |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax exemption, percentage | 90.00% |
Income taxes - Schedule of Inco
Income taxes - Schedule of Income by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of income by jurisdiction [Line Items] | |||
Income (loss) before income taxes | $ (2,936) | $ 61,775 | $ (5,293) |
U.S. Virgin Islands | |||
Schedule of income by jurisdiction [Line Items] | |||
Income (loss) before income taxes | (1,249) | 70,670 | (5,261) |
Other jurisdiction | |||
Schedule of income by jurisdiction [Line Items] | |||
Income (loss) before income taxes | $ (1,687) | $ (8,895) | $ (32) |
Income taxes - Schedule of defe
Income taxes - Schedule of deferred taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Stock compensation and other | $ 531 | $ 339 |
Accrued expenses | 387 | 172 |
Real estate gains and fair value adjustments | 1,492 | 2,981 |
Other | 6 | 0 |
Net operating loss | 21,592 | 468 |
Deferred tax asset, gross | 24,008 | 3,960 |
Depreciation | 4 | 4 |
Deferred tax assets, net | 24,004 | 3,956 |
Valuation allowance | (23,100) | (3,491) |
Deferred tax assets, net | $ 904 | $ 465 |
Income taxes - Rate reconciliat
Income taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. Virgin Islands income tax rate | 38.50% | 38.50% | 38.50% |
State and Local income tax rate | 4.70% | (0.10%) | 0.00% |
Excluded REIT income | 2.60% | (27.30%) | (40.50%) |
EDC benefits | (0.70%) | (8.90%) | 4.80% |
Rate differential | (3.50%) | (2.60%) | (3.90%) |
Permanent and other | (1.70%) | 0.00% | 0.00% |
Valuation allowance | (40.60%) | 1.20% | 1.10% |
Effective income tax rate | (0.70%) | 0.80% | 0.00% |
Earnings per share (Details)
Earnings per share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net (loss) income | $ (8,941,000) | $ (1,980,000) | $ 743,000 | $ 6,888,000 | $ 21,923,000 | $ 17,698,000 | $ 13,230,000 | $ 6,828,000 | $ (3,290,000) | $ 59,679,000 | $ (5,293,000) |
Amortization of preferred stock issuance costs | 206,000 | 166,000 | 0 | ||||||||
Numerator for basic EPS - (loss) income available to common stockholders | (3,496,000) | 59,513,000 | (5,293,000) | ||||||||
Add back amortization of preferred stock issuance costs | 0 | 166,000 | 0 | ||||||||
Numerator for diluted EPS - (loss) income available to common stockholders after assumed conversions | $ (3,496,000) | $ 59,679,000 | $ (5,293,000) | ||||||||
Weighted average common stock outstanding – basic (in shares) | 2,202,815 | 2,261,968 | 2,346,993 | ||||||||
Stock options using treasury method (in shares) | 0 | 251,967 | 0 | ||||||||
Restricted stock (in shares) | 0 | 160,475 | 0 | ||||||||
Preferred shares, if converted (in shares) | 0 | 157,778 | 0 | ||||||||
Weighted average common stock outstanding – diluted (in shares) | 2,202,815 | 2,832,188 | 2,346,993 | ||||||||
Earnings (loss) per basic share (usd per share) | $ (4.12) | $ (0.92) | $ 0.31 | $ 3.10 | $ 9.99 | $ 7.91 | $ 5.87 | $ 2.88 | $ (1.59) | $ 26.31 | $ (2.26) |
Earnings (loss) per diluted share (usd per share) | $ (4.12) | $ (0.92) | $ 0.27 | $ 2.50 | $ 7.92 | $ 6.25 | $ 4.60 | $ 2.39 | $ (1.59) | $ 21.07 | $ (2.26) |
Amortization of preferred stock issuance costs | $ 206 | $ 0 | $ 0 | ||||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS calculation | 222,566 | 0 | 286,264 | ||||||||
Restricted stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS calculation | 85,121 | 0 | 226,481 | ||||||||
Preferred stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from EPS calculation | 200,000 | 0 | 0 |
Quarterly financial informati60
Quarterly financial information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 24,142 | $ 58,523 | $ 76,519 | $ 88,915 | $ 122,211 | $ 109,102 | $ 117,357 | $ 74,628 | $ 248,099 | $ 423,298 | $ 72,297 |
Net (loss) income | $ (8,941) | $ (1,980) | $ 743 | $ 6,888 | $ 21,923 | $ 17,698 | $ 13,230 | $ 6,828 | $ (3,290) | $ 59,679 | $ (5,293) |
Earnings per share of common stock – basic: | |||||||||||
Earnings per share basic (usd per share) | $ (4.12) | $ (0.92) | $ 0.31 | $ 3.10 | $ 9.99 | $ 7.91 | $ 5.87 | $ 2.88 | $ (1.59) | $ 26.31 | $ (2.26) |
Earnings per share of common stock – diluted: | |||||||||||
Earnings per share diluted (usd per share) | $ (4.12) | $ (0.92) | $ 0.27 | $ 2.50 | $ 7.92 | $ 6.25 | $ 4.60 | $ 2.39 | $ (1.59) | $ 21.07 | $ (2.26) |
Schedule III - Activity of Real
Schedule III - Activity of Real Estate Assets and Accumulated Depreciation by State (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Gross amount at which Carried at Close of Period | $ 1,048,142 | $ 643,974 | $ 37,113 | $ 0 |
Accumulated Depreciation | $ 61,716 | $ 19,367 | $ 25 | $ 0 |
Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 6,516 | |||
Encumbrances | $ 342,044 | |||
Initial Cost to Company | 1,007,868 | |||
Capitalized Costs after Acquisition | 40,274 | |||
Gross amount at which Carried at Close of Period | 1,048,142 | |||
Accumulated Depreciation | $ 61,716 | |||
Weighted average age (in years) | 36 years 5 months | |||
Alabama | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 39 | |||
Encumbrances | $ 1,754 | |||
Initial Cost to Company | 5,225 | |||
Capitalized Costs after Acquisition | 174 | |||
Gross amount at which Carried at Close of Period | 5,399 | |||
Accumulated Depreciation | $ 441 | |||
Weighted average age (in years) | 23 years 10 months | |||
Alabama | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Alabama | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Alaska | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 1 | |||
Encumbrances | $ 84 | |||
Initial Cost to Company | 185 | |||
Capitalized Costs after Acquisition | 0 | |||
Gross amount at which Carried at Close of Period | 185 | |||
Accumulated Depreciation | $ 0 | |||
Weighted average age (in years) | 32 years | |||
Arizona | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 110 | |||
Encumbrances | $ 6,719 | |||
Initial Cost to Company | 23,369 | |||
Capitalized Costs after Acquisition | 585 | |||
Gross amount at which Carried at Close of Period | 23,954 | |||
Accumulated Depreciation | $ 1,021 | |||
Weighted average age (in years) | 21 years | |||
Arizona | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Arizona | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Arkansas | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 30 | |||
Encumbrances | $ 667 | |||
Initial Cost to Company | 2,955 | |||
Capitalized Costs after Acquisition | 192 | |||
Gross amount at which Carried at Close of Period | 3,147 | |||
Accumulated Depreciation | $ 700 | |||
Weighted average age (in years) | 36 years 8 months | |||
Arkansas | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Arkansas | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
California | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 624 | |||
Encumbrances | $ 59,306 | |||
Initial Cost to Company | 205,838 | |||
Capitalized Costs after Acquisition | 3,157 | |||
Gross amount at which Carried at Close of Period | 208,995 | |||
Accumulated Depreciation | $ 9,830 | |||
Weighted average age (in years) | 36 years 1 month | |||
California | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
California | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Colorado | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 37 | |||
Encumbrances | $ 1,558 | |||
Initial Cost to Company | 9,027 | |||
Capitalized Costs after Acquisition | 362 | |||
Gross amount at which Carried at Close of Period | 9,389 | |||
Accumulated Depreciation | $ 408 | |||
Weighted average age (in years) | 28 years 6 months | |||
Colorado | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Colorado | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Connecticut | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 53 | |||
Encumbrances | $ 4,024 | |||
Initial Cost to Company | 9,789 | |||
Capitalized Costs after Acquisition | 203 | |||
Gross amount at which Carried at Close of Period | 9,992 | |||
Accumulated Depreciation | $ 844 | |||
Weighted average age (in years) | 59 years 1 month | |||
Connecticut | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Connecticut | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Delaware | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 21 | |||
Encumbrances | $ 875 | |||
Initial Cost to Company | 3,146 | |||
Capitalized Costs after Acquisition | 30 | |||
Gross amount at which Carried at Close of Period | 3,176 | |||
Accumulated Depreciation | $ 355 | |||
Weighted average age (in years) | 43 years 6 months | |||
Delaware | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Delaware | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
District of Columbia | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 1 | |||
Encumbrances | $ 136 | |||
Initial Cost to Company | 241 | |||
Capitalized Costs after Acquisition | 3 | |||
Gross amount at which Carried at Close of Period | 244 | |||
Accumulated Depreciation | $ 26 | |||
Weighted average age (in years) | 105 years | |||
District of Columbia | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
District of Columbia | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Florida | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 922 | |||
Encumbrances | $ 40,610 | |||
Initial Cost to Company | 140,032 | |||
Capitalized Costs after Acquisition | 9,158 | |||
Gross amount at which Carried at Close of Period | 149,189 | |||
Accumulated Depreciation | $ 8,037 | |||
Weighted average age (in years) | 27 years 1 month | |||
Florida | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Florida | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Georgia | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 1,753 | |||
Encumbrances | $ 99,034 | |||
Initial Cost to Company | 163,913 | |||
Capitalized Costs after Acquisition | 4,189 | |||
Gross amount at which Carried at Close of Period | 168,102 | |||
Accumulated Depreciation | $ 3,602 | |||
Weighted average age (in years) | 36 years 4 months | |||
Georgia | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Georgia | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Hawaii | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 3 | |||
Encumbrances | $ 112 | |||
Initial Cost to Company | 534 | |||
Capitalized Costs after Acquisition | 0 | |||
Gross amount at which Carried at Close of Period | 534 | |||
Accumulated Depreciation | $ 4 | |||
Weighted average age (in years) | 42 years 2 months | |||
Hawaii | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Hawaii | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Idaho | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 19 | |||
Encumbrances | $ 1,139 | |||
Initial Cost to Company | 2,941 | |||
Capitalized Costs after Acquisition | 87 | |||
Gross amount at which Carried at Close of Period | 3,029 | |||
Accumulated Depreciation | $ 110 | |||
Weighted average age (in years) | 33 years 11 months | |||
Idaho | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Idaho | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Illinois | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 387 | |||
Encumbrances | $ 19,006 | |||
Initial Cost to Company | 63,216 | |||
Capitalized Costs after Acquisition | 3,334 | |||
Gross amount at which Carried at Close of Period | 66,551 | |||
Accumulated Depreciation | $ 7,700 | |||
Weighted average age (in years) | 42 years 10 months | |||
Illinois | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Illinois | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Indiana | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 188 | |||
Encumbrances | $ 6,854 | |||
Initial Cost to Company | 19,903 | |||
Capitalized Costs after Acquisition | 2,005 | |||
Gross amount at which Carried at Close of Period | 21,909 | |||
Accumulated Depreciation | $ 1,663 | |||
Weighted average age (in years) | 30 years 7 months | |||
Indiana | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Indiana | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Iowa | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 12 | |||
Encumbrances | $ 258 | |||
Initial Cost to Company | 1,146 | |||
Capitalized Costs after Acquisition | 6 | |||
Gross amount at which Carried at Close of Period | 1,152 | |||
Accumulated Depreciation | $ 27 | |||
Weighted average age (in years) | 46 years 6 months | |||
Iowa | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Iowa | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Kansas | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 23 | |||
Encumbrances | $ 531 | |||
Initial Cost to Company | 1,755 | |||
Capitalized Costs after Acquisition | 173 | |||
Gross amount at which Carried at Close of Period | 1,928 | |||
Accumulated Depreciation | $ 189 | |||
Weighted average age (in years) | 54 years 1 month | |||
Kansas | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Kansas | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Kentucky | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 58 | |||
Encumbrances | $ 2,425 | |||
Initial Cost to Company | 6,538 | |||
Capitalized Costs after Acquisition | 236 | |||
Gross amount at which Carried at Close of Period | 6,774 | |||
Accumulated Depreciation | $ 977 | |||
Weighted average age (in years) | 35 years 4 months | |||
Kentucky | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Kentucky | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Louisiana | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 21 | |||
Encumbrances | $ 732 | |||
Initial Cost to Company | 2,205 | |||
Capitalized Costs after Acquisition | 135 | |||
Gross amount at which Carried at Close of Period | 2,339 | |||
Accumulated Depreciation | $ 335 | |||
Weighted average age (in years) | 35 years 11 months | |||
Louisiana | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Louisiana | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Maine | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 6 | |||
Encumbrances | $ 371 | |||
Initial Cost to Company | 805 | |||
Capitalized Costs after Acquisition | 2 | |||
Gross amount at which Carried at Close of Period | 807 | |||
Accumulated Depreciation | $ 139 | |||
Weighted average age (in years) | 166 years 2 months | |||
Maine | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Maine | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Maryland | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 310 | |||
Encumbrances | $ 12,430 | |||
Initial Cost to Company | 61,255 | |||
Capitalized Costs after Acquisition | 1,383 | |||
Gross amount at which Carried at Close of Period | 62,638 | |||
Accumulated Depreciation | $ 2,048 | |||
Weighted average age (in years) | 37 years 2 months | |||
Maryland | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Maryland | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Massachusetts | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 56 | |||
Encumbrances | $ 2,267 | |||
Initial Cost to Company | 11,187 | |||
Capitalized Costs after Acquisition | 523 | |||
Gross amount at which Carried at Close of Period | 11,710 | |||
Accumulated Depreciation | $ 375 | |||
Weighted average age (in years) | 76 years 4 months | |||
Massachusetts | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Massachusetts | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Michigan | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 95 | |||
Encumbrances | $ 3,617 | |||
Initial Cost to Company | 12,428 | |||
Capitalized Costs after Acquisition | 546 | |||
Gross amount at which Carried at Close of Period | 12,974 | |||
Accumulated Depreciation | $ 1,193 | |||
Weighted average age (in years) | 41 years | |||
Michigan | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Michigan | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Minnesota | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 62 | |||
Encumbrances | $ 2,928 | |||
Initial Cost to Company | 10,616 | |||
Capitalized Costs after Acquisition | 437 | |||
Gross amount at which Carried at Close of Period | 11,054 | |||
Accumulated Depreciation | $ 1,084 | |||
Weighted average age (in years) | 43 years 8 months | |||
Minnesota | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Minnesota | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Mississippi | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 14 | |||
Encumbrances | $ 387 | |||
Initial Cost to Company | 1,349 | |||
Capitalized Costs after Acquisition | 50 | |||
Gross amount at which Carried at Close of Period | 1,399 | |||
Accumulated Depreciation | $ 334 | |||
Weighted average age (in years) | 30 years 5 months | |||
Mississippi | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Mississippi | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Missouri | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 57 | |||
Encumbrances | $ 1,634 | |||
Initial Cost to Company | 5,783 | |||
Capitalized Costs after Acquisition | 567 | |||
Gross amount at which Carried at Close of Period | 6,350 | |||
Accumulated Depreciation | $ 777 | |||
Weighted average age (in years) | 43 years 11 months | |||
Missouri | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Missouri | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Montana | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 3 | |||
Encumbrances | $ 364 | |||
Initial Cost to Company | 790 | |||
Capitalized Costs after Acquisition | 3 | |||
Gross amount at which Carried at Close of Period | 793 | |||
Accumulated Depreciation | $ 158 | |||
Weighted average age (in years) | 28 years 10 months | |||
Montana | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Montana | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Nebraska | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 5 | |||
Encumbrances | $ 234 | |||
Initial Cost to Company | 725 | |||
Capitalized Costs after Acquisition | 7 | |||
Gross amount at which Carried at Close of Period | 731 | |||
Accumulated Depreciation | $ 211 | |||
Weighted average age (in years) | 59 years 10 months | |||
Nebraska | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Nebraska | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Nevada | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 25 | |||
Encumbrances | $ 1,448 | |||
Initial Cost to Company | 3,787 | |||
Capitalized Costs after Acquisition | 93 | |||
Gross amount at which Carried at Close of Period | 3,880 | |||
Accumulated Depreciation | $ 132 | |||
Weighted average age (in years) | 21 years | |||
Nevada | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Nevada | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
New Hampshire | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 13 | |||
Encumbrances | $ 574 | |||
Initial Cost to Company | 2,086 | |||
Capitalized Costs after Acquisition | 1 | |||
Gross amount at which Carried at Close of Period | 2,087 | |||
Accumulated Depreciation | $ 219 | |||
Weighted average age (in years) | 73 years 5 months | |||
New Hampshire | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
New Hampshire | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
New Jersey | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 89 | |||
Encumbrances | $ 3,626 | |||
Initial Cost to Company | 14,960 | |||
Capitalized Costs after Acquisition | 530 | |||
Gross amount at which Carried at Close of Period | 15,490 | |||
Accumulated Depreciation | $ 802 | |||
Weighted average age (in years) | 60 years 5 months | |||
New Jersey | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
New Jersey | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
New Mexico | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 34 | |||
Encumbrances | $ 1,739 | |||
Initial Cost to Company | 4,584 | |||
Capitalized Costs after Acquisition | 380 | |||
Gross amount at which Carried at Close of Period | 4,964 | |||
Accumulated Depreciation | $ 126 | |||
Weighted average age (in years) | 20 years 5 months | |||
New Mexico | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
New Mexico | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
New York | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 68 | |||
Encumbrances | $ 3,310 | |||
Initial Cost to Company | 13,255 | |||
Capitalized Costs after Acquisition | 362 | |||
Gross amount at which Carried at Close of Period | 13,617 | |||
Accumulated Depreciation | $ 700 | |||
Weighted average age (in years) | 71 years 10 months | |||
New York | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
New York | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
North Carolina | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 222 | |||
Encumbrances | $ 10,835 | |||
Initial Cost to Company | 26,953 | |||
Capitalized Costs after Acquisition | 2,539 | |||
Gross amount at which Carried at Close of Period | 29,492 | |||
Accumulated Depreciation | $ 2,386 | |||
Weighted average age (in years) | 19 years 8 months | |||
North Carolina | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
North Carolina | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Ohio | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 118 | |||
Encumbrances | $ 4,516 | |||
Initial Cost to Company | 14,513 | |||
Capitalized Costs after Acquisition | 747 | |||
Gross amount at which Carried at Close of Period | 15,260 | |||
Accumulated Depreciation | $ 1,967 | |||
Weighted average age (in years) | 41 years 2 months | |||
Ohio | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Ohio | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Oklahoma | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 17 | |||
Encumbrances | $ 455 | |||
Initial Cost to Company | 1,757 | |||
Capitalized Costs after Acquisition | 138 | |||
Gross amount at which Carried at Close of Period | 1,894 | |||
Accumulated Depreciation | $ 63 | |||
Weighted average age (in years) | 35 years 1 month | |||
Oklahoma | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Oklahoma | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Oregon | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 16 | |||
Encumbrances | $ 697 | |||
Initial Cost to Company | 2,714 | |||
Capitalized Costs after Acquisition | 4 | |||
Gross amount at which Carried at Close of Period | 2,718 | |||
Accumulated Depreciation | $ 0 | |||
Weighted average age (in years) | 45 years 6 months | |||
Oregon | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | ||||
Oregon | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | ||||
Pennsylvania | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 250 | |||
Encumbrances | $ 8,695 | |||
Initial Cost to Company | 34,491 | |||
Capitalized Costs after Acquisition | 1,487 | |||
Gross amount at which Carried at Close of Period | 35,978 | |||
Accumulated Depreciation | $ 4,172 | |||
Weighted average age (in years) | 54 years 7 months | |||
Pennsylvania | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Pennsylvania | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Rhode Island | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 54 | |||
Encumbrances | $ 1,480 | |||
Initial Cost to Company | 6,572 | |||
Capitalized Costs after Acquisition | 679 | |||
Gross amount at which Carried at Close of Period | 7,251 | |||
Accumulated Depreciation | $ 351 | |||
Weighted average age (in years) | 83 years 7 months | |||
Rhode Island | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Rhode Island | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
South Carolina | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 127 | |||
Encumbrances | $ 5,668 | |||
Initial Cost to Company | 15,796 | |||
Capitalized Costs after Acquisition | 879 | |||
Gross amount at which Carried at Close of Period | 16,676 | |||
Accumulated Depreciation | $ 936 | |||
Weighted average age (in years) | 23 years 1 month | |||
South Carolina | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
South Carolina | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
South Dakota | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 3 | |||
Encumbrances | $ 166 | |||
Initial Cost to Company | 390 | |||
Capitalized Costs after Acquisition | 0 | |||
Gross amount at which Carried at Close of Period | 390 | |||
Accumulated Depreciation | $ 0 | |||
Weighted average age (in years) | 50 years 5 months | |||
South Dakota | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | ||||
South Dakota | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | ||||
Tennessee | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 73 | |||
Encumbrances | $ 3,609 | |||
Initial Cost to Company | 9,372 | |||
Capitalized Costs after Acquisition | 771 | |||
Gross amount at which Carried at Close of Period | 10,143 | |||
Accumulated Depreciation | $ 860 | |||
Weighted average age (in years) | 24 years 5 months | |||
Tennessee | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Tennessee | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Texas | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 176 | |||
Encumbrances | $ 7,192 | |||
Initial Cost to Company | 25,243 | |||
Capitalized Costs after Acquisition | 2,241 | |||
Gross amount at which Carried at Close of Period | 27,485 | |||
Accumulated Depreciation | $ 1,440 | |||
Weighted average age (in years) | 25 years 2 months | |||
Texas | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Texas | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Utah | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 73 | |||
Encumbrances | $ 5,853 | |||
Initial Cost to Company | 13,247 | |||
Capitalized Costs after Acquisition | 428 | |||
Gross amount at which Carried at Close of Period | 13,674 | |||
Accumulated Depreciation | $ 1,332 | |||
Weighted average age (in years) | 31 years 8 months | |||
Utah | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Utah | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Vermont | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 5 | |||
Encumbrances | $ 293 | |||
Initial Cost to Company | 866 | |||
Capitalized Costs after Acquisition | 1 | |||
Gross amount at which Carried at Close of Period | 866 | |||
Accumulated Depreciation | $ 73 | |||
Weighted average age (in years) | 108 years 7 months | |||
Vermont | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Vermont | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Virginia | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 86 | |||
Encumbrances | $ 4,983 | |||
Initial Cost to Company | 26,715 | |||
Capitalized Costs after Acquisition | 706 | |||
Gross amount at which Carried at Close of Period | 27,421 | |||
Accumulated Depreciation | $ 1,338 | |||
Weighted average age (in years) | 28 years 7 months | |||
Virginia | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Virginia | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Washington | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 49 | |||
Encumbrances | $ 2,613 | |||
Initial Cost to Company | 10,733 | |||
Capitalized Costs after Acquisition | 291 | |||
Gross amount at which Carried at Close of Period | 11,023 | |||
Accumulated Depreciation | $ 272 | |||
Weighted average age (in years) | 33 years 10 months | |||
Washington | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Washington | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
West Virginia | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 2 | |||
Encumbrances | $ 139 | |||
Initial Cost to Company | 475 | |||
Capitalized Costs after Acquisition | 0 | |||
Gross amount at which Carried at Close of Period | 476 | |||
Accumulated Depreciation | $ 20 | |||
Weighted average age (in years) | 12 years 1 month | |||
West Virginia | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
West Virginia | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Wisconsin | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 105 | |||
Encumbrances | $ 4,097 | |||
Initial Cost to Company | 12,188 | |||
Capitalized Costs after Acquisition | 450 | |||
Gross amount at which Carried at Close of Period | 12,638 | |||
Accumulated Depreciation | $ 1,873 | |||
Weighted average age (in years) | 50 years 4 months | |||
Wisconsin | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Wisconsin | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months | |||
Wyoming | Single family residential | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Real Estate Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | 275 | |||
Capitalized Costs after Acquisition | 0 | |||
Gross amount at which Carried at Close of Period | 275 | |||
Accumulated Depreciation | $ 66 | |||
Weighted average age (in years) | 25 years | |||
Wyoming | Single family residential | Minimum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 3 years | |||
Wyoming | Single family residential | Maximum | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Life on which Depr is Calc | 27 years 6 months |
Schedule III - Activity of Re62
Schedule III - Activity of Real Estate Assets and Accumulated Depreciation Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Real estate assets, beginning balance | $ 643,974 | $ 37,113 | $ 0 |
Acquisitions through foreclosure | 470,221 | 587,268 | 31,014 |
Other acquisitions | 118,297 | 34,104 | 6,198 |
Improvements | 25,802 | 16,872 | 586 |
Cost of real estate sold | (210,152) | (31,383) | (685) |
Real estate assets, ending balance | 1,048,142 | 643,974 | 37,113 |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Accumulated depreciation, beginning balance | 19,367 | 25 | 0 |
Depreciation expense | (6,414) | (1,067) | (25) |
Selling cost and impairment | 70,124 | 21,788 | 0 |
Real estate sold | (34,189) | (3,513) | 0 |
Accumulated depreciation, ending balance | 61,716 | $ 19,367 | $ 25 |
Aggregate cost for federal income tax purposes | $ 1,049,600 |
Schedule IV - Schedule of Mortg
Schedule IV - Schedule of Mortgage Loans on Real Estate (Details) - Single family residential - First mortgage $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)loan | |
Mortgage loans [Line Items] | |
Loan count | loan | 5,739 |
Carrying amount of mortgages | $ 960,534 |
Principal amount of loans subject to delinquent principal or interest | $ 1,189,908 |
$0-49,999 | |
Mortgage loans [Line Items] | |
Loan count | loan | 310 |
Interest rate, minimum | 2.00% |
Interest rate, maximum | 15.875% |
Carrying amount of mortgages | $ 11,835 |
Principal amount of loans subject to delinquent principal or interest | $ 9,040 |
$0-49,999 | Minimum | |
Mortgage loans [Line Items] | |
Maturity | May 1, 2009 |
$0-49,999 | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Jan. 1, 2054 |
$50,000-99,999 | |
Mortgage loans [Line Items] | |
Loan count | loan | 710 |
Interest rate, minimum | 0.00% |
Interest rate, maximum | 13.60% |
Carrying amount of mortgages | $ 43,369 |
Principal amount of loans subject to delinquent principal or interest | $ 45,871 |
$50,000-99,999 | Minimum | |
Mortgage loans [Line Items] | |
Maturity | Jun. 1, 2010 |
$50,000-99,999 | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Apr. 1, 2055 |
$100,000-149,999 | |
Mortgage loans [Line Items] | |
Loan count | loan | 1,043 |
Interest rate, minimum | 2.00% |
Interest rate, maximum | 13.60% |
Carrying amount of mortgages | $ 95,719 |
Principal amount of loans subject to delinquent principal or interest | $ 111,846 |
$100,000-149,999 | Minimum | |
Mortgage loans [Line Items] | |
Maturity | Oct. 1, 2010 |
$100,000-149,999 | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Apr. 1, 2055 |
$200,000-249,999 | |
Mortgage loans [Line Items] | |
Loan count | loan | 978 |
Interest rate, minimum | 1.375% |
Interest rate, maximum | 12.48% |
Carrying amount of mortgages | $ 116,429 |
Principal amount of loans subject to delinquent principal or interest | $ 148,364 |
$200,000-249,999 | Minimum | |
Mortgage loans [Line Items] | |
Maturity | Aug. 1, 2010 |
$200,000-249,999 | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Jul. 1, 2055 |
$200,000-249,999 | |
Mortgage loans [Line Items] | |
Loan count | loan | 787 |
Interest rate, minimum | 1.50% |
Interest rate, maximum | 12.00% |
Carrying amount of mortgages | $ 115,591 |
Principal amount of loans subject to delinquent principal or interest | $ 153,693 |
$200,000-249,999 | Minimum | |
Mortgage loans [Line Items] | |
Maturity | Oct. 1, 2015 |
$200,000-249,999 | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Oct. 1, 2054 |
$250,000 plus | |
Mortgage loans [Line Items] | |
Loan count | loan | 1,911 |
Interest rate, minimum | 1.00% |
Interest rate, maximum | 12.375% |
Carrying amount of mortgages | $ 577,591 |
Principal amount of loans subject to delinquent principal or interest | $ 721,094 |
$250,000 plus | Minimum | |
Mortgage loans [Line Items] | |
Maturity | Mar. 1, 2011 |
$250,000 plus | Maximum | |
Mortgage loans [Line Items] | |
Maturity | Jun. 1, 2055 |
Schedule IV - Activity in Mortg
Schedule IV - Activity in Mortgage Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Transfer of mortgage loans to held for sale | $ (535,836) | $ 0 | $ 0 |
Transfer of mortgage loans to real estate owned | (470,221) | (587,268) | (31,014) |
Residential mortgage | Loans receivable | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Transfer of mortgage loans to real estate owned | (470,200) | (587,300) | |
Residential mortgage | Level 3 | Loans receivable | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Beginning balance | 1,959,044 | 1,207,163 | 0 |
Investment in mortgage loans | 0 | 1,122,408 | 1,213,811 |
Net unrealized gain on mortgage loans | 177,545 | 350,822 | 61,092 |
Cost of mortgages sold | (174,894) | (151,624) | (38,297) |
Mortgage loan payments | (24,550) | (19,299) | (4,901) |
Real estate tax advances to borrowers | 29,261 | 36,842 | 6,472 |
Transfer of mortgage loans to held for sale | (535,836) | 0 | 0 |
Transfer of real estate owned to mortgage loans | 15,974 | 8,400 | 0 |
Transfer of mortgage loans to real estate owned | (486,010) | (595,668) | (31,014) |
Ending balance | 960,534 | $ 1,959,044 | $ 1,207,163 |
Single family residential | First mortgage | |||
Mortgage loans [Line Items] | |||
Aggregate cost for federal income tax purposes | $ 1,200,200 |